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11/07/2006 Regular Meeting

FRIEND CITY COUNCIL

MINUTES-REGULAR MEETING

NOVEMBER 7, 2006

Mayor Horner called the regular meeting of the City Council to order at 7:05 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:  Gary Tuttle, Dan Fricke, Harlan Schrock and Dustin Weber.  A quorum being present and the meeting duly convened, the following proceedings were had and done.

As required by the Nebraska Open Meetings Act, Mayor Horner 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.  Mayor Horner announced that a copy is also available upon request from the City Clerk.

Motioned by Schrock, seconded by Weber to approve the Minutes of the October 3, 2006 regular meeting, the October 12, 2006 special meeting, and the October 2006 Treasurer's Report as presented and file same.  On roll call voting aye to approve the Minutes of the October 3, 2006 regular meeting, the October 12, 2006 special meeting, and the October 2006 Treasurer's Report, Fricke, Weber, Tuttle, Schrock.  Nays none.  Motion carried.

Motion was made by Fricke, seconded by Tuttle, to approve the August 2006 Warren Memorial Hospital Financial Reports (including the August 2006 Friend Ambulance Financial Reports) as presented and file same.  On roll call voting aye to approve the August 2006 Warren Memorial Hospital Financial Reports (including the August 2006 Friend Ambulance Financial Reports) as presented and file same, Schrock, Tuttle, Fricke, Weber.  Nays none.  Motion carried.

A motion was made by Weber, seconded by Schrock, 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:  October Payroll, 14,855.06; Ameritas, 1,717.49; 1^st Natl, 5,287.43; IRS, fe. 569.10; All You, su. 21.24; Alltel Cellular, 474.30; Aquila, se. 183.07; Baker & Taylor, su. 385.43; Beatrice Concrete, su. 735.54; Beaver Hardward, su. 90.68; Big Sky Racks, su. 28.95; Blue Blossom, 72.28; Central States Lab., su. 11,024.81; LaRaine Cihak, re. 380.07; Consumer Reports, su. 20.00; Crete Lumber, su. 439.20; Culligan, se. 22.05; D&D Comm, su. 28.37; Danko, 76,044.00; Demco, su. 77.33; Drake Collision, su. 100.00; Drake Refrigeration, se. 97.75; Eakes, su. 182.95; Farmer’s Coop, su. 1216.51; First Natl, loan pmt. & fee 3432.49; Galaxy Cable, se. 39.95; Patrick Gates, re. 96.54; Galls, su. 655.88; Gene’s Electric, se. 12,584.95; General Fire, su. 57.25; Great Plains One-Call, se. 16.16; Hannon’s Towing, se. 75.00; Hilton Omaha, 160.44; Hometown Leasing, se. 50.83; Husker Electric, su. 4.36; Jack Keef, su. 28.52; Johnson Pharmacy, su. 185.66; Kansas State Bank, loan pmt. 8218.16; Kirkham Michael, se. 397.96; Konica, fe. 88.05; L&L Auto, su. 25.32; Layne-Christensen, se. 1099.72; Miller Monroe, fe. 459.00; Mel Northey, 1646.00; Menards, su. 224.50; Midwest Labs, se. 68.75; Michael Mullally, fe. 717.00; NE Dept of Rev, SWH, 890.51 & Sales & Use Tax, 5405.49; NE Public Power, 32,987.92; Nick’s Farm Store, se. 400.00; Norris Public Power, se. 3983.85; OMB Police Supply, su. 56.49; Pioneer Publishing, fe. 150.09; Platte Valley Comm, su. 53.59; Principal Mutual, fe. 3742.85; RDJ Specialities, su. 311.92; Rembolt/Ludtke, fe. 446.72; Saline County Clerk, fe. 20.00; Marvin Slepicka, fe. 750.00; Sports Illustrated, su. 40.00; State of NE HHS, se. 206.00; Steve’s Repair, se. 1256.70; TV Service Co., su. 167.98; Terracon Consultants, fe. 559.00; The Depository Trust, Bond Princ & Int, 59,712.50; The Garbage Co., se. 145.59; Thomson Gale, su. 67.40; Trafcon Inc. su. 181.72; Windstream NE, se. 613.99; Yokels, su. 43.32. Total Claims Approved $256,579.73. 

Mayor Horner announced that Russell Irwin, Program Specialist from the Department of Environmental Quality, forwarded an addition to his report from the October meeting on the training project at the wastewater treatment plant.  Mr. Irwin stated that he had neglected to say some things that he wanted to be reported at the next City Council meeting.  Mr. Irwin reported the following in this addition to his report:

“David Domeier is doing a great job of running the plant.  He understands the process and keeps it balanced.  He also does the housekeeping things that go along with the job.  During the project, things always looked like they should.  David deserves recognition for his good work.

DEQ nominated the Friend treatment plant for an EPA award for Most Improved Treatment Plant.  Putting together the application for this award is quite a bit of work and a lot of that work was done by David and Pat during a busy time of the year.  We appreciate their efforts with the application.”

Mayor Horner announced that Patrick Gates received notification from the United States Environmental Protection Agency in Washington, D.C. that the City of Friend Wastewater Treatment Facility was nominated for a national award.  This notification was from Sheila E. Frace, Director of Municipal Support Division with the United States Environmental Protection Agency and stated the following:

“Congratulations on being a national finalist for the Environmental Protection Agency’s 2006 Clean Water Act Recognition Award.  While the City of Friend Wastewater Treatment Facility was not selected as a national winner for the Operations and Maintenance (O&M) award category, you should be proud of your accomplishments.  It is an honor to be nominated for an award, and your participation in this year’s awards program demonstrates your interest in protecting the environment.”

Mayor Horner introduced Ordinance #06-693.  Attorney Mullally gave a brief explanation of Section 18-1750, Reissue Revised Statute of Nebraska, that is referred to in proposed Ordinance #06-693.  Attorney Mullally said this statute essentially allows the City borrow a sum of money up to an amount calculated by taking two years worth of anticipated tax revenues, less the amount of money that has been expended from the City’s general funds at the time the money is borrowed, multiplied by 70%.  Looking at Section 1 of this proposed ordinance, part (d), indicates that there will be total tax receipts of $434,678.  Based on information provided by Terry Galloway, the accountant for the City, and deducting the amount of claims from the general fund approved at tonight’s meeting, there will be $381,805.08 worth of anticipated receipts for the general fund.  Attorney Mullally said this does not include an expense of approximately $72,000 for a new fire truck from the general fund.  Attorney Mullally explained that he excluded $72,000 in his calculations as this amount is in a sinking fund that was established for a new fire truck and money has been deposited into this fund over a number of years.  Mullally stated that he confirmed with the State Auditor’s office that this should not be included in his calculations in determining the amount of unexpended total anticipated general fund receipts.

Dustin Weber asked if it came to a point where the City would have to levy a tax to pay this back do they have the authority to do this?  Mullally said if it came to that point the Council could vote to do so.  No tax could be levied without Council’s approval. 

Harlan Schrock asked if the City owns or leases the Hospital.  Horner said the City owns the Hospital.  Schrock then asked if this loan is not approved by the Council, will Warren Memorial Hospital close?  Amy Fish said she did not believe this to be true.  Mr. Nemeier stated there is money in the hospital’s checking account and Mrs. Fish said the hospital has $165,000 in CDs.

Mayor Horner announced that he would accept a few questions at this time.

A member of the audience asked if the money is issued, will it have to be paid back in two years?  If so, does the City have the authority to levy an additional tax?  Hasn’t the City already reached its’ levy lid?  Attorney Mullally said if the note cannot be paid with revenues from the Hospital, the City would have the ability to issue general obligation bonds, which can be paid back over a longer period of time. 

Howard Ach attended the meeting and said sometime ago the City conveyed title of the real estate of the Hospital to the Hospital Foundation.  The Foundation then entered into a lease with the City to lease them the Hospital.  Mr. Ach said the City of Friend agreed to make lease payments back to the Foundation so that the Foundation could then repay the loan they took out through the USDA, as the City could not technically take out a loan as such.  Mr. Ach explained that if anything should happen to the hospital, the City is ultimately responsible.  With the hospital being the largest, or perhaps the second largest, employer in town, closing the doors would have a devastating impact on the entire town.  Mr. Ach said this loan is basically an attempt to keep the hospital going.  He said he did not know how the hospital anticipated paying the loan back, as he has not seen any of the hospital’s financial records.  However the City Council members have been provided with these records and are aware of their financial status.  People should know that it is a no-win situation.  If an attempt is not made to keep the hospital in operation the City and taxpayers are going to suffer.

Mayor Horner thanked Mr. Ach for his input.

Dale Lawver attended the meeting and said he agrees with Mr. Ach that the hospital is a vital part of this community and losing it would be devastating.  Mr. Lawver questioned why the Council would want to commit themselves to this two-year note when, according to state statute (Section 18-1750), there are low-interest government loans available that could be paid back over a twenty year period.  Mr. Lawver said according to state statute (Section 18-1750), the Council is responsible for setting the interest rate.  The proposed ordinance states the interest rate will be base-rate less 1.25 percent.  Based on the current interest rates of approximately 8.75 percent, subtracting the 1.25 percent leaves an interest rate of 7.5 percent.  Why wouldn’t the City attempt to get a low interest loan from the government rather than paying an interest rate of 7.5 percent? 

After discussion by the Council and meeting attendees, Attorney Mullally asked Debbie Gilmer to read proposed Ordinance No. 06-693 by title.  Debbie Gilmer read the following.

ORDINANCE NO. 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

Councilman Tuttle 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 Councilman Fricke.  On roll call voting aye, Weber, Fricke, Tuttle.  Nays, Schrock.  Motion carried.

Councilman Tuttle motioned that Ordinance No. 06-693 be passed and adopted, which motion was seconded by Councilman Fricke.  On roll call voting nay, Schrock.  Ayes, Weber, Tuttle, Fricke.  Said motion carried and Ordinance No. 06-693 was passed and adopted.

An audience member asked Mayor Horner to clarify Councilman Schrock’s question about the hospital closing if this ordinance had not been adopted, as audience members in the back of the room could not hear the response given.  Mayor Horner stated that the hospital is not going to close.  This is just an operating loan.  Mayor Horner said the hospital is not even asking for this money.  The bank approached the Council with this ordinance, as the hospital is city-owned and to loan money to the hospital, it was necessary for an ordinance of this nature to be in place.  Amy Fish added that there was no reason to believe that the doors would close tomorrow if this ordinance had not been adopted tonight.

Patrick Gates, Utilities Superintendent, gave his report.  Mr. Gates said he received a final price from McGuire Iron of $4340.00 on the cleaning of the water tower.  Due to scheduling issues, they will not be able to clean the tower until the spring.  Council discussed and agreed that this was acceptable.

Patrick Gates received correspondence from Jeff Wagner of Mainelli Wagner & Associates, Inc. regarding the street at the Palky Addition.  In this correspondence, Mr. Wagner refers to a letter sent to him from Rich Robinson of Kirkham Michael Consulting Engineers on behalf of the City of Friend.  Mr. Wagner says that, based on this letter from Rich Robinson of June 8, 2006, the street paving was accepted by the City and has become the City of Friend’s responsibility.  Mr. Wagner continues by saying that the City may contact Stephens and Smith, if they so desire, to request replacement of the panels.  Rich Robinson recommends that the City talk to John Palky to see if he would consider putting pressure on his engineers and contractors as Mr. Palky certainly should have received better services from both, his engineers and his contractors.  Mayor Horner said he would talk to John Palky regarding this issue.  Mr. Gates said that it was his opinion that Stephens and Smith would feel obligated to correct this problem, as it reflects poorly on their quality of work.

Regarding the pond improvement project, Mr. Gates met with the Game and Parks Commission and said it is time to move on to the “work plan”.  The City engineers have put this plan together and will require a minimal fee, as well as an approved letter of agreement.  The letter of agreement should be coming later this week.  It was stated that this appears to be a very favorable project for the City of Friend at a minimal cost.  Council discussed and agreed to move forward with this project. 

Mr. Gates reported that he recently conducted a thorough evaluation of the City buildings and sites with an investigator from the City’s insurance provider.  Gates said he received a letter with recommendations from this investigator and will provide the Council with these recommendations in the December 2006 Council meeting packets for their review and consideration.

Mr. Gates received information regarding the program for safe routes to schools.  Upon receipt, Mr. Gates immediately submitted an initial letter of intent stating that the City of Friend is very interested in this program.  A meeting to discuss sidewalks and other enhancements to and around the school is scheduled for next week involving the City Engineers, the Department of Roads, the School Superintendent, the Chief of Police, and Mr. Gates.

Police Chief, Mark McFarland gave the Police Report for the month of October 2006.   (Copy of this report is attached.) 

Mark Stutzman, Building Inspector, gave his report.

Stan Krause, 2nd Assistant Fire Chief, reported on behalf of the Fire Department.

Amy Fish, Warren Memorial Hospital Administrator, gave her report.  Mrs. Fish said there were over 150 children that attended the Halloween event that was held at the hospital.  The next community blood drive is scheduled for Friday, November 17^th.  The Warren Memorial Hospital Auxilliary is planning the annual Holiday Tour of Homes, which is scheduled for Saturday December 2nd, as well as the annual Cookie Walk, which will be Saturday, December 9^th.  The Diabetics Support Group will meet November 21^st, and the next Healthy Living Luncheon will be Wednesday, November 29th.  Sunny Conner will be speaking at this luncheon on the Saline County Eldercare Program and the progress on the Medicare D Program.  The next Fifty-five Plus Club outing is planned for December 9^th.  They will, once again, be traveling to Grand Island to see the Living Christmas Tree.  Kelly Cole has been hired to be the new Social Services Director as Michelle Schiffern has recently transferred to the Zimmer Medical Clinic.  The Hospital has recently passed, with flying colors, the State of Nebraska Trauma Certification.  Warren Memorial Hospital will be the second rural hospital in southeast Nebraska to be designated as a Basic Level Trauma Facility.

Mrs. Fish presented to the Council a basic income and expense summary that outlines monthly revenues and expenses for the hospital.  She also provided the Council with a seven year statistics summary for the hospital.  Mrs. Fish highlighted a few items from this summary that included the following:

• There have been more general acute care hospital patients in the last two years than the previous five years combined.
• There have been more pediatric acute care patients in the last two years than the previous five years combined.
• There have been more Medicare acute care patients in the last two years than the previous three years combined.
• There have been more outpatient surgeries in the last two years than the previous five years combined, in fact almost one and one half as many.
• There have been 5,110 outpatient physical therapy visits in the last two years, as compared to the previous five years of 3,800 visits.

Mrs. Fish said an area of concern at this time is the manor census.  This year’s census declined by two patients as compared to the previous fiscal year.  This will continue to be a major area of focus for future strategic planning.

Mayor Horner announced it was time for opening of bids received for the 1983 grey dodge pickup that the City advertised for sale.  A bid of $102 was received by Kevin Barnard.  Council discussed and Councilman Schrock made a motion to accept the bid of $102 for the 1983 grey dodge pickup.  Motion was seconded by Councilman Weber.  On roll call voting aye, Tuttle, Fricke, Schrock, Weber.  Nays none.  Motion carried.

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, Tuttle, Weber, Fricke.  Nays none.  Meeting adjourned at 7:40 p.m.