Regular Meeting
April 6, 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 6th day of
April 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,
Brad Kuzelka, and Kelly Davis. Absent: Beryl Lueders and Shirley Bender
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 March 16, 2010.
2.
Approval of claims.
3.
Consider resignation of Beryl
Lueders from City Council Ward IV seat.
Brown moved to remove
Item #3 under the Consent Agenda ~ the resignation of Beryl Lueders from
City Council Ward IV seat - from the Consent Agenda and act on this item
separately. Motion seconded by Friesen. On roll call Brown, Friesen,
Bailey, Kuzelka, and Davis voted “yes.” Lueders and Bender absent. Motion
carried.
Brown moved to approve
Items #1 and #2 under the Consent Agenda ~ approval of the minutes of the
regular meeting of March 16, 2010 and the claims. Motion seconded by
Kuzelka. On roll call Brown, Friesen, Bailey, Kuzelka, and Davis voted
“yes.” Lueders and Bender absent. Motion carried.
Brown moved to postpone
Item #3 under the Consent Agenda ~ the resignation of Beryl Lueders from
City Council Ward IV seat until the May 4, 2010 Council meeting. Motion
seconded by Friesen. On roll call Brown, Friesen, Bailey, Kuzelka, and
Davis voted “yes.” Lueders and Bender absent. Motion carried.
Mayor Ward nominated
Tim Polson to fill the vacancy in the office of City Councilperson, Ward I.
Davis moved to approve the appointment of Tim Polson to fill the vacancy in
office of City Councilperson, Ward I. Term to expire November 2010. Motion
seconded by Bailey. Brown, Friesen, Bailey, Kuzelka, and Davis voted “yes.”
Lueders and Bender absent. Motion carried. Polson was sworn into office by
City Attorney David Bargen, who administered the Oath of Office to Polson.
Polson assumed his position on the City Council.
Kuzelka moved to
approve the appointment of Tim Polson to the Finance Committee and the
Public Works Committee. Motion seconded by Brown. On roll call, Brown,
Friesen, Bailey, Kuzelka, and Davis voted “yes.” Polson abstained. Lueders
and Bender absent. Motion carried.
Mayor Ward opened
sealed bids received for various property and liability insurance coverage.
Bids received were as follows:
Starr-Buckow Insurance Agency,
Inc. $193,599.00
Gill Insurance Service,
Inc. $168,128.00
Mayor Ward stated the
bid from Starr-Buckow Insurance was received on April 6, 2010 at 1:00 p.m.
and the bid from Gill Insurance was received on April 6, 2010 at 1:35 p.m.
Mayor Ward stated bids received will be turned over to the Finance
Committee for review with the two bidders and their recommendation will be
presented at the next Council meeting. Bailey moved to commit the bids
received to the Finance Committee for review with the two bidders and bring
a recommendation to the next Council meeting. Motion seconded by Polson.
On roll call, Brown, Friesen, Bailey, Polson, Kuzelka, and Davis voted
“yes.” Lueders and Bender absent. Motion carried. Ron Starr of Starr
Buckow Insurance Agency presented a dividend check from Cornhusker Casualty
Company in the amount of $18,221.00 to the City. Starr stated this dividend
is a result of the City’s very fine workers compensation loss ratio for the
policy period May 1, 2008 to May 1, 2009. Starr expressed his sincere
congratulations to the City for their safety consciousness, which has a
positive impact on their workers compensation experience.
Jennifer Busboom of
Blobaum & Busboom P.C. presented the results of the 2008-2009 Fiscal Year
audit and year end Financial Statements. Busboom cited this report issues a
clean opinion of the City’s Financial Statements which are free of material
misstatement. Busboom cited the audit was performed in accordance with
Government Auditing Standards issued by the Comptroller General of the
United States. This is a higher set of standards, required by the NE State
Auditors Office, that require tests and reporting on internal controls and
compliance with laws and regulations which could have a direct and material
effect on the financial statements. Under these provisions they found no
such instances of noncompliance, but did indicate a reportable control
deficiency as a lack of separation of duties in various aspects of receipts
and disbursement transactions. Busboom stated this same material weakness
exists in all the local government audits they perform. Busboom stated one
deficiency they note in most of the other governments they do, this is the
only one they have taken this out of, is most boards or anyone on staff do
not have enough expertise to prepare the financial statements but they feel
that our City Administrator Joseph Parker would be able to do this if he so
wishes. Busboom stated the revenues are staying consistent; we’re holding
the line on both the operating revenues and expenditures.
Brown moved to approve
the transferring of $31,412.86 from the General Fund ~ $12,090.19 to the
Park Fund and $19,322.67 to the Pool Fund. Motion seconded by Bailey.
Mayor Ward stated this was a recommendation from our auditors for year-end
closing entries. Busboom stated both the Park Fund and the Pool Fund had a
negative cash position at the end of the fiscal year. On roll call, Brown,
Friesen, Bailey, Polson, Kuzelka, and Davis voted “yes.” Lueders and
Bender absent. Motion carried.
Library Director Karen
Fox presented the 2008-2009 Annual Library Report.
Friesen moved to use
$2,500.00 from the Hardy Trust Fund for roofing the Girl Scout Cabin.
Motion seconded by Bailey. Friesen thanked everyone for their support of
the fundraisers for the Girl Scout Cabin. Mayor Ward stated $4,675.59 is in
the Fairbury Civic Foundation ~ Girl Scout Cabin account. Friesen stated
the reason for using money from the Hardy Trust Fund is because they didn’t
raise quite enough money with the fundraisers for the amount needed to do
the roof project. Friesen also stated they have volunteers that will do
other things to the cabin like paint, etc; but need to get the cabin weather
proofed first. On roll call, Brown, Friesen, Bailey, Polson, Kuzelka, and
Davis voted “yes.” Lueders and Bender absent. Motion carried.
Friesen moved to
approve the bid from C & F Roofing to replace the roof on the Girl Scout
Cabin in the amount of $6,100.00. Motion seconded by Brown. Friesen stated
the City had originally received this bid from C & F Roofing in 2008 at
which time it was also questioned if the structure underneath the roof was
solid enough to place a new roof. Friesen stated this was part of the
reason why they started raising funds to help pay for the new roof. Friesen
stated they have determined over time and inspection that the structure is
solid enough to put a new roof over the top and not cause any problems; C &
F Roofing has left their bid at the same price as before in the amount of
$6,100.00. On roll call, Brown, Friesen, Bailey, Polson, Kuzelka, and Davis
voted “yes.” Lueders and Bender absent. Motion carried.
Mayor Ward stated the
time to be 8:00 p.m. which is the time the City published the Council would
convene as a Board of Equalization. Brown moved to close the session as the
City Council. Motion seconded by Davis. On roll call, Brown, Friesen,
Bailey, Polson, Kuzelka, and Davis voted “yes.” Lueders and Bender absent.
Motion carried.
Brown moved the City
Council convene as a Board of Equalization at 8:01 p.m. Motion seconded by
Bailey. On roll call, Brown, Friesen, Bailey, Polson, Kuzelka, and Davis
voted “yes.” Lueders and Bender absent. Motion carried.
As a Board of
Equalization, Mayor Ward opened the Public Hearing concerning the levy of
special assessments for Street Improvement District No. 2008-1 and Street
Improvement Project No. 2008-2. Phil Lorenzen with D.A. Davidson addressed
the Council. Lorenzen stated he has helped with the interim financing for
these projects as our fiscal agent. Lorenzen stated the Mayor and Council
had previously accepted the work in Street Improvement District No. 2008-1
and in Street Improvement Project No. 2008-2 as submitted by the
recommendations from Denny Graham with Olsson Associates our engineer for
the projects who is also present this evening; the Council formalized the
acceptance of the work completed in Street Improvement District No. 2008-1
and in Street Improvement Project No. 2008-2 by a resolution; also provided
public notice which was published five times; and notice mailed to all
resident owners by first class mail and to all non-resident owners by
certified mail. We’re now at the time of the hearing where owners will be
able to make comment. After the hearing, the Council will need to consider
any adjustments upwards or downwards of the levy of special assessments;
will also need to set the interest rate for the unpaid special assessments.
Lorenzen recommends a payment schedule of ten installments. The first
installment would be due fifty days after date of levy which would be May
26, 2010 (1/10th of the amount due on principal would be due
then) which would be payable at the City offices. The remaining nine
installments would be due annually on April 6th of each year.
Interest rate ~ there is a cost for the administration of the assessments.
His recommendation would be that rate would be set between 1½ to 2½% points
above the borrowing costs ~ recommendation would be 2% above that. He
anticipates the average borrowing costs to be about 3%. So he recommends
setting the unpaid specials at a rate of 5% which would give us a 2%
spread. Installments are due simple interest each year on the outstanding
balance plus the principal installment. If special assessments become
delinquent then they bear interest at the state usury rate set by the State
Legislature which is currently 14% so that intends to encourage owners make
their payments in a timely manner. Lorenzen also recommends the Council
adopt a resolution that would actually make the levy of the special
assessments. Mayor Ward then asked the City Clerk if any written objections
had been filed. The City Clerk reported that no written objections had been
filed. Mayor Ward 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. Lyle Danner addressed the Council
who resides at 1010 3rd Street. He stated he thought landowners
were always supposed to be notified of any improvements that were to be done
that are to be paid by the taxpayers so it could be voted on. Danner
thought he had not been notified. Lorenzen stated the district was formed
by action of the Mayor and Council by the adoption of an ordinance after
which time the notice of creation was published three times in the local
newspaper per state statute; any non-resident owners were notified by
certified mail per state statute; written notification for the resident
owners was dependent on the publication in the newspaper and also had a
public hearing at which time there was found to be no written objections to
the improvements. Lorenzen stated proper legal notification was given per
state statute. Bargen stated the notices that were given were correct and
according to state statute. Lorenzen stated the owners have the right to
prepay any or all at any time. Lorenzen states it becomes a lien against
the property; it will be certified to the County after the fifty days.
Danner stated he has the homestead exemption. Lorenzen stated the Homestead
Act just reduces the property tax it doesn’t cover anything for the special
assessments. Lorenzen stated the theory behind specially assessing
improvements to properties affected is because Danner’s property value
should be enhanced by the result of the improvement. Danner stated he
doesn’t always read the newspaper, but thought he would receive a letter so
he would be able to voice his opinion. Lorenzen asked Danner if he had
received the letter regarding this hearing; Danner stated he had. Lorenzen
stated for the creation of the districts, the notice that is prescribed by
state statute is published notice which was done for the resident owners and
for the non-resident owners, outside of Jefferson County, it was by
registered mail. Danner stated the talk was that Bacon Bits was going to
pay for this, so he didn’t think he had to worry about it. Lorenzen stated
the owners pay in proportion of the project accordingly to the front footage
of the property they own, per state statute. Assistant Street
Superintendent Laura Bedlan stated Lyle Danner was commenting for his
property and also in behalf of Alice Gibson for her property. Council
member Roger Bailey stated this all happened before he was on the Council,
but he feels it would be in the best interest of the City and the Council to
notify all property owners by mail, if resident owners could be done by
first class mail. Bailey stated if you’re going to be assessing their
properties and putting a lien on the property, it’s just a smart business
way to operate. We need to look into the future and notify all property
owners by mail; not all people read the local paper. No one else addressed
the Council during the public
hearing. Mayor Ward declared the hearing closed.
Brown moved to close
the session as a Board of Equalization at 8:12 pm. Motion seconded by
Bailey. On roll call, Brown, Friesen, Bailey, Polson, Kuzelka, and Davis
voted “yes.” Lueders and Bender absent. Motion carried.
Kuzelka moved to
re-convene as the City Council at 8:13 p.m. Motion seconded by Bailey. On
roll call, Brown, Friesen, Bailey, Polson, Kuzelka, and Davis voted “yes.”
Lueders and Bender absent. Motion carried.
Bailey moved to take
the agenda out of order and continue with the items under Section H on the
agenda ~ City Council Business. Motion seconded by Brown. On roll call,
Brown, Friesen, Bailey, Polson, Kuzelka, and Davis voted “yes.” Lueders and
Bender absent. Motion carried.
Mayor Ward read from
the agenda “Consideration of actions, if any, as to recommended special
assessments to be levied. No action was taken on this item.
Brown moved to set the
interest rate on unpaid special assessments at 5%. Motion seconded by
Polson. On roll call, Brown, Friesen, Bailey, Polson, Kuzelka, and Davis
voted “yes.” Lueders and Bender absent. Motion carried.
Mayor Ward stated the
resolution number in the council packets was correct being Resolution No.
773; but the number stated in the agenda is a misprint, stating Resolution
No. 753. Brown moved to adopt Resolution No. 773 making assessments in
Street Improvement District No. 2008-1 and in Street Improvement Project No.
2008-2 in the City of Fairbury, Nebraska. Motion seconded by Kuzelka. On
roll call, Brown, Friesen, Bailey, Polson, Kuzelka, and Davis voted “yes.”
Lueders and Bender absent. Motion carried.
Bailey moved to
consider Item #11 on the agenda under Current Business ~ Consideration of
the Maintenance/Management Agreement between the City of Fairbury and the
Fairbury Area Softball Association. Motion seconded by Friesen. On roll
call, Brown, Friesen, Bailey, Polson, Kuzelka, and Davis voted “yes.”
Lueders and Bender absent. Motion carried.
Friesen moved to
approve the Maintenance/Management Agreement between the City of Fairbury
and the Fairbury Area Softball Association. Motion seconded by Brown.
Council member Brad Kuzelka stated he thought the committee and the Softball
Association were going to meet again before they brought this before
Council. Ed Durfee with the Softball Association addressed the Council and
also thought this was going to be delayed until they could meet again and go
over everything. Durfee stated he had just received the new agreement as
reviewed by the City Attorney from the City today and not everyone in the
association has been able to see the new agreement. Durfee also stated he
had done research a few years ago comparing our city and the cities of
Seward and York and found there was quite a disparity of what they gave
their ball fields compared to what Fairbury gives the softball association.
Durfee stated he has been led to believe that several people have
questioned how the softball association spends all of their money. He feels
we don’t really compare with Seward and York anymore; he talked to a city
councilman in Hebron that used to be involved with the ball program and he
had stated they give their summer ball program approximately $40,000.00.
Bailey moved to postpone the Maintenance/Management Agreement between the
City of Fairbury and the Fairbury Area Softball Association until the next
Council meeting. Motion seconded by Polson. City Attorney David Bargen
stated this motion takes precedence over and will dispose of the first
motion. On roll call, Brown, Friesen, Bailey, Polson, Kuzelka, and Davis
voted “yes.” Lueders and Bender absent. Motion carried.
Bailey moved to
approve the request for a building/structure moving permit (BSM-2010-01)
from Merle and Gloria Everhart, Jr. to be moved from Cortland, Nebraska to
611 6th Street, legally described as East 4’ of Lot 8 and all of
Lot 9, Block 13, Original Town of Fairbury, Jefferson County, Nebraska.
Motion seconded by Davis. Lisa Everhart addressed the Council. Everhart
stated this would bring a new business to town ~ an ice cream shop, which
has been a three generation dream. Mayor Ward questioned the size of the
building. Everhart stated the size of the interior is 12x16. Polson
questioned where this building would be moved to. Mayor Ward replied 611 6th
Street. Council member Kelly Davis questioned if this was the lot where the
house had burnt down. Everhart stated this is the next lot over. Mayor
Ward stated this had started out to be a construction project but they then
found a building. Everhart stated they had looked into building new which
would cost between $40-50,000.00 to be health code approved and a large
enough building. By buying a building that was already a food
establishment, they can modify it and it will be considered a pre-existing
building so it has cut their cost drastically. This building is already
pretty well set up as it is the Daley Coffee and Ice Cream building they
have purchased. Since this building is already set up the way it would be
needed for their ice cream shop they would not have to meet any new codes
with the State Department of Health. Brown questioned Bedlan if her
department is okay with the project. Bedlan stated everything has been
approved; they just need to get the moving permit. On roll call, Brown,
Friesen, Bailey, Polson, Kuzelka, and Davis voted “yes.” Lueders and Bender
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. Brown moved to give 3rd reading to Ordinance No.
2991. Motion seconded by Bailey. On roll call, Brown, Friesen, Bailey,
Polson, Kuzelka, and Davis voted “yes.” Lueders and Bender absent. Motion
carried. Davis moved to give final passage of Ordinance No. 2991. Motion
seconded by Brown. On roll call, Brown, Friesen, Bailey, Polson, Kuzelka,
and Davis voted “yes.” Lueders and Bender 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. Bailey moved to give 3rd reading
of Ordinance No. 2992. Motion seconded by Brown. On roll call, Brown,
Friesen, Bailey, Polson, Kuzelka, and Davis voted “yes.” Lueders and Bender
absent. Motion carried. Davis moved to give final passage of Ordinance No.
2992. Motion seconded by Kuzelka. On roll call, Brown, Friesen, Bailey,
Polson, Kuzelka, and Davis voted “yes.” Lueders and Bender absent. Motion
carried.
Mayor Ward read by
title Ordinance No. 2994: AN ORDINANCE TO ESTABLISH WATER RATES; TO AMEND
ORDINANCE NO. 2970; TO REPEAL CONFLICTING SECTIONS AND TO PROVIDE FOR AN
EFFECTIVE DATE. Brown moved to give 2nd reading to Ordinance No.
2994. Motion seconded by Bailey. On roll call, Brown, Friesen, Bailey,
Polson, Kuzelka, and Davis voted “yes.” Lueders and Bender absent. Motion
carried.
Within the City
Administrator’s report, Joseph Parker stated a meeting will be held tomorrow
evening at the 4H building at 7:00 p.m. for storm spotter training. Parker
also stated they’re in the process of getting more documents signed from the
property owners for the house demolitions. Parker stated need to get about
a dozen more structures lined up. Parker stated by the end of June the
homes have to be committed to and the bids have to be approved by the
Council. Mayor Ward stated it may be a good idea to get this publicized.
Assistant
Superintendent of Utilities Larry Naiman addressed the Council regarding a
mailing the Fairbury Light and Water will be sending out to all water
customers on April 13, 2010. This mailing is required to keep the Utility
Department in compliance with the Safe Water Drinking Act which was passed
in 1974. This mailing is mandated since the city’s water system recently
violated a drinking water standard ~ which was a light bulb which provides
illumination for our turbidity meter, which records the water turbidity
readings, burned out on March 15-16, 2010. The loss of the bulb resulted in
the meter not having the capability to record the required readings to
submit to the Nebraska Health and Human Services. A Monitoring Violation
Notice is also included with this mailing as part of their requirement to
notify the customers of this violation of the Surface Water Treatment Rule.
They’re also enclosing a cross connection survey which is mandated by the
Nebraska’s Safe Water Drinking Act every five years. Naiman stated this is
the fifth time this has been done since he has been employed with the City.
Davis moved to adjourn
the meeting. Motion seconded by Bailey. On roll call, Brown, Friesen,
Bailey, Polson, Kuzelka, and Davis voted “yes.” Lueders and Bender absent.
Motion carried. Meeting adjourned at 8:44 p.m.
Homer L. Ward, Mayor
ATTEST: Sharyl Preston, City Clerk
