Special Meeting
October 23, 2007
The
Mayor and Council of the City of Fairbury met in special session in the
Council Chambers located at 612 D Street, Fairbury, Nebraska, on the 23rd
day of October, 2007, at 7:30 p.m. Mayor E.M. Mueller called the meeting to
order.
Notice
of meeting was given in advance thereof by publication in the Fairbury
Journal News, Fairbury, Nebraska, the designated method of giving notice, as
shown by affidavit of publication. The Open Meetings Act was posted in the
meeting room as required by law.
Roll
call found the following Council Members present: Brown, Phillips, Byrd,
Trimm, Nelson, Bender, Fry, and Polson.
Nelson
made a motion for the City Council to convene as the Board of Equalization.
Motion seconded by Phillips. On roll call, Brown, Phillips, Byrd, Trimm,
Nelson, Bender, Fry, and Polson voted “yes.” Motion carried.
Mayor Mueller
declared that it was now time to conduct a hearing relative to the levy of
special assessments in Street Improvement District No. 2004-02. Mayor
Mueller then declared the public hearing opened.
Prior to
the hearing, the following comments were received by the City Administrator
from property owner Ron Southwick:
Ron
Southwick requested replacement of a portion of his sidewalk because it
retains water after a rain. Southwick stated it did not retain water prior
to this, and since this is a new sidewalk, it should not now. City
Administrator Jim Ferneau’s written comments on the request were that there
is very little slope from his (Southwick’s) building to the curb and that
there is a highpoint in the center – the longitudinal expansion cut.
Ferneau provided the Council with pictures taken after a recent rain.
Ferneau also stated the City had the contractor replace a portion of this
sidewalk already due to the same issue, water retention, and that the result
is that there is significantly less water retainage than previously.
Southwick stated that on the basis of the potential liability that the water
represents in relation to someone potentially falling on a related ice
patch, he was requesting to have the sidewalk replaced again.
Phil
Lorenzen of D.A. Davidson recommended that due to the size and scope of the
project, costs attributable to sidewalk replacement be assessed to property
owners over ten (10) installments. Lorenzen stated that if Resolution No.
674 is adopted tonight, the initial pay in period of fifty (50) days ends
December 12, 2007. Special assessments may be prepaid at any time with
simple interest if paid in a timely manner. After the initial one-tenth of
the assessment is paid, one-tenth will be due each year for nine years on
the anniversary date of the resolution. Lorenzen stated the Council would
need to determine the repayment interest rate, based on the cost of the
bond, later in the meeting. If special assessments are not paid, a lien is
placed against the property and interest is charged at the delinquent rate
determined by the State of Nebraska, currently 14%.
Rich
Robinson of Kirkham Michael Consulting Engineers, added actual assessments
were calculated by taking total cost of sidewalk only (removal of sidewalk,
replacement of sidewalk with four inch (4”) sidewalks, and a proportionate
share of other project costs) which represented 13.74% of the total
project. Square footage cost of the project was then calculated at $7.56
per square foot. The square foot cost of $7.65 was then multiplied by the
average width of the sidewalks (10.62 foot) to determine an assessment rate
of $80.33 per linear foot. Assessment totals were then determined by
multiplying the linear foot rate ($80.33) times the length of the property’s
front footage. Robinson stated the Council previously set the maximum
assessment rate at $110 per linear foot.
Mayor Mueller
then asked if there were any persons who wished to be heard concerning the
proposed assessments in the District relative to the construction of the
said improvements.
Rick
Siebert of Siebert Communications, Inc. asked how businesses downtown who
had invested in the community by replacing their sidewalks within the last
five years would be penalized when the City passes these costs onto them.
Mayor Mueller stated the City would take the cost of what the property owner
invested against the cost of City’s work and then credit the property owner
for its investment.
Bender
asked City Attorney Tobias Tempelmeyer what the City should do about the
existence of a possible liability represented by the photos provided by
Ferneau of certain properties within the project. Tempelmeyer stated he
would refer back to the project engineer as to whether the sidewalk is up to
code. Tempelmeyer also stated that while there may be liability, there is
always existing liability regardless of how well-built the sidewalks may
be. Robinson stated that he also reviewed the picture and looked at the
property today. Robinson stated it is his opinion that there are slight
imperfections in a couple of places, but that he doesn’t feel it would
benefit anyone to replace the sidewalk, nor would it improve the situation
substantially to replace it again. Mayor Mueller stated that in regards to
existing cracks, the City will have those sealed before winter sets in.
Trimm asked Robinson if the City has made a good faith effort to make
necessary repairs; Robinson stated yes, substantial improvements were made
in the replacement of the sidewalk which was done in July 2007. Mayor
Mueller agreed the area has been substantially improved.
Property
owner Jerry Olson asked how much he would have to pay in assessments.
Lorenzen provided his recommendation that the interest rate be set at 5 ½ %
to 6%. Robinson referred to the schedule of assessments and informed Mr.
Olson that his assessment for 50 feet of front footage would be $4016.50.
Mayor Mueller
called for any additional persons who wished to be heard on the matter of
the special assessments in the District. No other persons spoke on the
matter. Mayor Mueller declared the public hearing on special assessments
for Street Improvement District No. 2004-02 closed.
Trimm
made a motion for the City Council to close its session as the Board of
Equalization. Motion seconded by Phillips. On roll call, Brown, Phillips,
Byrd, Trimm, Nelson, Bender, Fry, and Polson voted “yes.” Motion carried.
Byrd made a motion to convene as the City Council. Motion
seconded by Nelson. On roll call, Brown, Phillips, Byrd, Trimm, Nelson,
Bender, Fry, and Polson voted “yes.” Motion carried.
Mayor Mueller
read by title Resolution No. 674 levying Special Assessments in Street
Improvement District No. 2004-02. Tempelmeyer advised the Council that if
the City wishes to credit Siebert Communications for work previously done,
the specifics of that adjustment must be included in the context of
Resolution No. 674. Lorenzen advised the Council that the specific lot and
adjustment must be included in the context of the resolution and that the
Council must insert the interest rate for assessments. Nelson asked what
would happen if property owners disputed their assessment in the future.
Tempelmeyer advised that the hearing held tonight was property owners’ last
opportunity to come before the Council in regards to their assessments.
Mayor Mueller requested Siebert Communications provide the City with copies
of invoices for work previously done on its sidewalks. Byrd made a motion
to adopt Resolution No. 674 giving Siebert Communications, Lot 5, Block 32,
Original Town of Fairbury, Nebraska, a credit up to Two Thousand Five
Hundred dollars ($2500) towards its
assessment for improvements made prior to work done in Street Improvement
District 2004-02, and to set the interest rate for assessments at six
percent (6%) per annum. Motion seconded by Trimm. On roll call,
Brown, Phillips, Byrd, Trimm, Nelson, Bender, Fry, and Polson voted “yes.”
Motion carried.
Mayor Mueller
read by title Ordinance No. 2967: AN ORDINANCE OF THE CITY OF FAIRBURY,
NEBRASKA, AUTHORIZING THE ISSUANCE OF VARIOUS PURPOSE BONDS, SERIES 2007, OF
THE CITY OF FAIRBURY, IN THE PRINCIPAL AMOUNT OF NINE HUNDRED FIFTY-FIVE
THOUSAND ($955,000) TO PROVIDE FUNDS, TOGETHER WITH FUNDS ON HAND, TO PAY
THE COST OF IMPROVEMENTS IN STREET IMPROVEMENT DISTRICT NO. 2004-02
(INCLUDING INTERSECTIONS, AND THE AREAS FORMED BY THE CROSSINGS OF STREETS,
AVENUES, AND ALLEYS); PRESCRIBING THE FORM OF SAID BONDS; PROVIDING FOR THE
LEVY OF TAXES TO PAY THE SAME; AND PROVIDING FOR PUBLICATION OF THE
ORDINANCE IN PAMPHLET FORM. Tempelmeyer advised the Council could forego
the statutory three readings rule. Bender suggested the Council not suspend
the rules if this was not an emergency. Lorenzen stated that bond
anticipation notes are due December 1st and that in order to meet
all time requirements to get permanent bonds issued, the Council would be
advised to waive the three readings. Fry made a motion to introduce
Ordinance No. 2967 and suspend the statutory three readings. Motion
seconded by Brown. On roll call, Brown, Phillips, Byrd, Trimm, Nelson,
Bender, Fry, and Polson voted “yes.” Motion carried. Phillips made a
motion for final passage of Ordinance No. 2967. Motion seconded by Byrd.
Lorenzen stated he recommends issuance of $955,000 in bonds to fund the
downtown Street Improvement District No. 2004-02. Lorenzen provided the
Council with a debt service schedule and gave an overview of project costs.
Lorenzen stated the average interest rate on the bonds is 3.92%. Lorenzen
noted that within Ordinance No. 2967, the City Treasurer has been named the
paying agent and registrar of the bonds, which saves the City $500 per
year. Discussion ceased. On roll call, Brown, Phillips, Byrd, Trimm,
Nelson, Bender, Fry, and Polson voted “yes.” Motion carried.
Bender
made a motion to adjourn the meeting. Motion seconded by Phillips. On roll
call, Brown, Phillips, Byrd, Trimm, Nelson, Bender, Fry, and Polson voted
“yes.” Motion carried. Meeting adjourned at 8:03 p.m.
E. M. Mueller, Mayor
ATTEST:
Tami K. Dandliker, City Clerk
