Regular Meeting
March 2, 2010
The Mayor and Council
of the City of Fairbury met in regular session in the Council Chambers
located at 612 D Street, Fairbury, Nebraska, on the 2nd day of
March 2010,
at 7:30 p.m. Mayor
Homer L. Ward 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 and pointed out by Mayor Ward as required by law.
Roll call found the
following Council Members present: Doug Brown, Ed Friesen, Roger Bailey,
Beryl Lueders, Shirley Bender, Brad Kuzelka, and Kelly Davis. Absent: Don
Trimm.
Mayor Ward called for
the submittal of forms to request future agenda items. No forms were
submitted during the meeting.
Mayor Ward read the
Consent Agenda:
1.
Approval of the minutes of the
regular meeting of February 16, 2010.
2.
Approval of claims.
Davis moved to approve
the Consent Agenda. Motion seconded by Bailey. On roll call Brown,
Friesen, Bailey, Lueders, Bender, Kuzelka, and Davis voted “yes.” Trimm
absent. Motion carried.
Mayor Ward opened the
Public Hearing concerning obligating
further funding into the “Downtown Design Challenge Grant” for Economic
Development (LB840) Program. Dave Taladay with Southeast Nebraska
Development District (SENDD) addressed the Council. Taladay stated the
Historic Preservation Committee met on January 13, 2010 and reviewed the
successful projects completed through the Downtown Design Challenge Grant
Program. Taladay stated the Historic Preservation Commission recommends the
Council approve further funding in the amount of $18,000.00 for the Downtown
Design Challenge Grant Program. Taladay stated the program had started out
slow but has picked up. Taladay stated the Commission has approved three
additional projects; so the remaining balance in the Program will be
$183.00; the total renovation costs of all the projects are $57,500.00. The
program can be used for storefront and façade improvements in the downtown
business historic district. No one else addressed the Council during the
public hearing. Mayor Ward declared the hearing closed.
Mayor Ward opened the
Public Hearing regarding an ordinance amending the City of Fairbury Zoning
Regulations – 2005 Edition, Section 4.13 regarding construction of accessory
buildings. Laura Bedlan, Assistant Street Superintendent, addressed the
Council.
Bedlan stated the
Planning Commission has been working on both of the changes to zoning the
last couple years (construction of accessory buildings and maximum size
limits of accessory buildings). The Planning Commission has had several
meetings and lengthy discussions regarding the size, height, setbacks, total
lot coverage, building class, lot landscaping, and building access. The
Planning Commission has recommended the City Council approve the ordinance
to amend the zoning regulations. Bedlan stated there are strict
specifications of what will be allowed. This amendment will allow for
accessory buildings on a lot without primary buildings. No one else
addressed the Council during the public hearing. Mayor Ward declared the
hearing closed.
Mayor Ward opened the
Public Hearing regarding an ordinance amending the City of Fairbury Zoning
Regulations to change the maximum size limits of accessory buildings in all
residential zoning districts of the Fairbury Zoning Regulations – 2005
Edition, Sections 5.06 – 5.09. Laura Bedlan, Assistant Street
Superintendent, addressed the Council. Bedlan stated the Planning
Commission has recommended the City Council approve the ordinance to amend
the zoning regulations. Council member Shirley Bender stated it would help
the tax base to have buildings on lots instead of having an empty lot. No
one else addressed the Council during the public hearing. Mayor Ward
declared the hearing closed.
Larry Naiman,
Assistant Superintendent of Utilities introduced Phil Euler and Andrew Ross
with Nebraska Municipal Power Pool (NMPP). Andrew Ross addressed the
Council regarding the wastewater rate study. They do a rate study every two
years and develop a five-year financial planning model. This study includes
assumptions for operating costs, capital construction, treatment, and
maintenance costs. The model indicates that Fairbury presently has
sufficient cash reserve levels to cover its debt service obligations and
capital improvement needs. The Fairbury cost of service revenue
requirements for fiscal year ending (FYE) 2010 is $440,743.00 which is
broken down as follows: pumping and distribution costs are $179,487.00 and
is the largest component of total revenue requirements at 41% of the total;
treatment related costs are $137,021.00 or 31% of total revenue requirements
and makes up the second largest component; salaries and benefit costs are
$93,188.00 and comprise 21% of the total, and administrative and general
costs are $31,047.00 and make up the balance at 7%. NMPP Energy recommends
the City Council consider: 1) no rate change for FYE 2010 and FYE 2011; 2)
rate changes should be reviewed every other year; 3) adopt a policy on
customer service wastewater service starting security deposits for new
accounts and existing accounts as deemed necessary by Fairbury Light & Water
Department. The deposit shall be the larger of $75.00 or 1.5 times the
actual average bill for the service in the previous 12 months; and 4)
consider adopting an alternate formulaic method in determining utility
transfers to the city’s general fund.
Phil Euler addressed
the Council regarding the water rate study. The model indicates that
Fairbury will require increases in the next several years to reach
sufficient cash reserve and net income levels to cover its normal
operations, debt service obligations, and capital improvement needs. Euler
stated the customer charge rate would stay the same, but the volume rate
charge would increase. The Fairbury cost of service revenue requirements
for FYE 2010 is $812,668.00. NMPP Energy recommends the City Council
consider: 1) approval of a 7.0% rate increase for May 1, 2010 (FYE 2011) and
7.0% increase for May 1, 2011 (FYE 2012); 2) rate changes should be reviewed
every other year; 3) adopt a policy on customer service wastewater service
starting security deposits; 4) consider adopting an alternate formulaic
method in determining water utility transfers to the city’s general fund.
Bailey moved to approve the recommendations of the rate study as presented
along with the rate increases. Motion seconded by Kuzelka. On roll call
Brown, Friesen, Bailey, Lueders, Bender, Kuzelka, and Davis voted “yes.”
Trimm absent. Motion carried.
Discussion was held
regarding the 2010 Annual Loan Agreement with the National Museum of the
United States Air Force for the aerospace vehicle on display at the
airport. City Attorney David Bargen stated last year he had visited with
Patricia Ochs, the Static Display Program Administrator, regarding working
on a multi-year plan over the next few years to refurbish the plane. Bargen
stated nothing has been done; it still needs the repairs ~ needs a canopy,
painting, decals, etc. The cost of having it removed would be at the cost of
the City for crating, shipping, insuring, etc. costs, which by some
estimates may be approximately $30,000.00. Bargen stated it would be a good
idea to formulate a plan to get the plane back to the standards that it
should be; we need to get this accomplished. This would be a good community
project for the Boy Scouts or any group. Brown moved to table this agenda
item until the next Council meeting on March 16, 2010, to allow for Bargen
to formulate a multi-year plan to refurbish the plane back to the standard
that it should be. Motion seconded by Friesen. On roll call, Brown,
Friesen, Bailey, Lueders, Bender, Kuzelka, and Davis voted “yes.” Trimm
absent. Motion carried.
Bender moved to
approve the request to advertise for bids for furnishing various property
and liability insurance coverage’s for the City of Fairbury. Motion
seconded by Kuzelka. On roll call, Brown, Friesen, Bailey, Lueders, Bender,
Kuzelka, and Davis voted “yes.” Trimm absent. Motion carried.
Discussion was held
regarding the transferring of $5,000.00 from the Keno Fund to the General
Fund for the GIS equipment. Bender stated the total cost of the equipment
was $27,425.00. Originally the Board of Public Works was to pay $13,713.00;
the General Fund $4,762.00; Street and Alley Fund $3,950.00 and the Keno
Fund $5,000.00. Bender suggested having $2,500.00 from the Keno Fund and
the additional $2,500.00 from the Street and Alley Fund. Bender stated the
Keno Fund is rather low in funds since $10,000.00 had also been used for the
swimming pool repairs last year. Bender moved to approve the transfer of
$2,500.00 from the Keno Fund to the General Fund for the GIS equipment and
the additional $2,500.00 be paid out of the Street and Alley Fund. Motion
seconded by Brown. On roll call, Brown, Friesen, Bailey, Lueders, Bender,
Kuzelka, and Davis voted “yes.” Trimm absent. Motion carried.
Bender moved to table
item 5 under current business, update on pending litigation, until the end
of the meeting. Motion seconded by Bailey. On roll call, Brown, Friesen,
Bailey, Lueders, Bender, Kuzelka, and Davis voted “yes.” Trimm absent.
Motion carried.
Davis moved to adopt
Resolution No. 763 obligating further funding, in the amount of $18,000.00,
into the “Downtown Design Challenge Grant” for Economic Development (LB840)
Program. Motion seconded by Bender. On roll call, Brown, Friesen, Bailey,
Lueders, Bender, Davis, and Kuzelka voted “yes.” Trimm absent. Motion
carried.
Bender moved to adopt
Resolution No. 764 regarding acceptance of the work in Storm Sewer
Improvement 11th & F Streets (Bid Section 1) and in Storm Sewer
Improvement 10th & G Streets (Bid Section 2), in the City of
Fairbury, Nebraska. Motion seconded by Friesen.
Phil Lorenzen with
D.A. Davidson addressed the Council. Lorenzen stated the completion of the
work was certified to the City on February 22, 2010 by the City’s Engineers,
Olsson Associates, and final payment has been made to M.E. Collins
Contracting. Lorenzen stated no assessments will be levied on this
project. On roll call, Brown, Friesen, Bailey, Lueders, Bender, Davis, and
Kuzelka voted “yes.” Trimm absent. Motion carried.
Kuzelka moved to adopt
Resolution No. 765 regarding acceptance of the work in Street Improvement
District No. 2008-1 and in Street Improvement Project No. 2008-2, in the
City of Fairbury, Nebraska. Motion seconded by Davis. Lorenzen stated the
completion of the work was certified to the City on February 22, 2010 by the
City’s Engineers, Olsson Associates, and final payment has been made to R.L.
Tiemann Construction. Lorenzen stated this resolution and the next two
resolutions are part of the process needed to levy special assessments on
the street improvements. On roll call, Brown, Friesen, Bailey, Lueders,
Bender, Davis, and Kuzelka voted “yes.” Trimm absent. Motion carried.
Bailey moved to adopt
Resolution No. 766 regarding receiving and filing plats and schedules of
assessments based on the report of cost of the improvements as certified by
the City’s Engineers for the calculation of Special Assessments proposed to
be levied in Street Improvement District No. 2008-1 and in Street
Improvement Project No. 2008-2. Motion seconded by Bender. On roll call,
Brown, Friesen, Bailey, Lueders, Bender, Davis, and Kuzelka voted “yes.”
Trimm absent. Motion carried.
Bender moved to adopt
Resolution No. 767 setting April 6, 2010 at 8:00 p.m. for the Mayor and City
Council to meet as a Board of Equalization to consider the levy of special
assessments in Street Improvement District No. 2008-1 and in Street
Improvement Project No. 2008-2 and setting the publication dates for the
notice of said meeting as March 3,
March 10, March 17,
March 24, and March 31, 2010. Motion seconded by Kuzelka. Lorenzen stated
the Council would adjourn to Board of Equalization for the hearing and
reconvene as Council to adopt the resolution. On roll call, Brown, Friesen,
Bailey, Lueders, Bender, Davis, and Kuzelka voted “yes.” Trimm absent.
Motion carried.
Bender moved to adopt
Resolution No. 768 calling outstanding Refunding Bonds, dated December 7,
2004, for payment on April 15, 2010; which were issued for the purpose of
paving and sewer improvements. Motion seconded by Bailey. Bill Abts with
Ameritas Investment addressed the Council. Abts stated by calling the
outstanding bonds and issuing new bonds would be a savings of $24,266.25 to
the City. On roll call, Brown, Friesen, Bailey, Lueders, Bender, Davis, and
Kuzelka voted “yes.” Trimm absent. Motion carried.
Mayor Ward read by
title Ordinance No. 2990: AN ORDINANCE AMENDING THE CITY OF FAIRBURY
MUNICIPAL CODE SECTION 93.003 – OBSTRUCTIONS. Friesen moved to give 2nd
reading to Ordinance No. 2990. Motion seconded by Bender. On roll call,
Brown, Friesen, Bailey, Lueders, Bender, Kuzelka, and Davis voted “yes.”
Trimm absent. Motion carried.
Mayor Ward read by
title Ordinance No. 2991: AN ORDINANCE AMENDING THE CITY OF FAIRBURY ZONING
REGULATIONS – 2005 EDITION, SECTION 4.13 REGARDING CONSTRUCTION OF ACCESSORY
BUILDINGS. Bender moved to introduce and give 1st reading to
Ordinance No. 2991. Motion seconded by Kuzelka. On roll call, Brown,
Friesen, Bailey, Lueders, Bender, Kuzelka, and Davis voted “yes.” Trimm
absent. Motion carried.
Mayor Ward read by
title Ordinance No. 2992: AN ORDINANCE AMENDING THE CITY OF FAIRBURY ZONING
REGULATIONS TO CHANGE THE MAXIMUM SIZE LIMITS OF ACCESSORY BUILDINGS IN ALL
RESIDENTIAL ZONING DISTRICTS OF THE FAIRBURY ZONING REGULATIONS – 2005
EDITION, SECTIONS 5.06 – 5.09. Kuzelka moved to introduce and give 1st
reading of Ordinance No. 2992. Motion seconded by Brown. On roll call,
Brown, Friesen, Bailey, Lueders, Bender, Kuzelka, and Davis voted “yes.”
Trimm absent. Motion carried.
Mayor Ward read by
title Ordinance No. 2993: AN ORDINANCE AUTHORIZING THE ISSUANCE OF
REFUNDING BONDS, OF THE CITY OF FAIRBURY, NEBRASKA, IN THE PRINCIPAL AMOUNT
OF SIX HUNDRED FIFTEEN THOUSAND DOLLARS ($615000) ISSUED TO REFUND CERTAIN
OUTSTANDING BONDS OF THE CITY; 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. Brown moved to
suspend the statutory three readings requirement. Motion seconded by
Bailey. On roll call, Brown, Friesen, Bailey, Lueders, Bender, Kuzelka, and
Davis voted “yes.” Trimm absent. Motion carried. Friesen moved for the
passage of Ordinance No. 2993. Motion seconded by Kuzelka. On roll call,
Brown, Friesen, Bailey, Lueders, Bender, Kuzelka, and Davis voted “yes.”
Trimm absent. Motion carried.
Within the City
Administrator’s report, Joseph Parker stated the League Conference was very
good and had really good classes. Bender also stated how good the meeting
was. She brought back information for the Council members that were not
able to attend.
Bailey moved to Take
from the Table Item #5 under Current Business – Discuss pending litigation.
Motion seconded by Bender. On roll call, Brown, Friesen, Bailey, Lueders,
Bender, Kuzelka, and Davis voted “yes.” Trimm absent. Motion carried.
In open session, Davis
moved to enter into closed session for the purpose of protecting the public
interest, the subject matter of the closed session being discussing pending
litigation; designating individuals to remain as Mayor Ward; Council Members
Brown, Friesen, Bailey, Lueders, Bender, Kuzelka, and Davis; City Attorney
David Bargen; City Administrator Joseph Parker, and City Clerk Sharyl
Preston. Motion seconded by Friesen. On roll call, Brown, Bailey, Friesen,
Lueders, Bender, Kuzelka, and Davis voted “yes.” Trimm absent. Motion
carried. Mayor Ward confirmed the purpose of the closed session was to
protect the public interest, and the subject matter for the closed session
is pending litigation and announced the time of the start of the closed
session to be 8:35 p.m.
The council came out
of closed session at 8:45 p.m. Friesen moved to enter into open session.
Motion seconded by Bailey. On roll call, Brown, Friesen, Bailey, Lueders,
Bender, Kuzelka, and Davis voted “yes.” Trimm absent. Motion carried.
Bender moved to adjourn
the meeting. Motion seconded by Davis. On roll call, Brown, Friesen,
Bailey, Lueders, Bender, Kuzelka, and Davis voted “yes.” Trimm absent.
Motion carried. Meeting adjourned at 8:46 p.m.
Homer L. Ward, Mayor
ATTEST: Sharyl
Preston, City Clerk
