Regular Meeting
April 7, 2009
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 7th day of
April, 2009,
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 as required by law.
Roll call found the
following Council Members present: Doug Brown, Ed Friesen, Ron Byrd, Don
Trimm, Beryl Lueders, Brad Kuzelka, and Kelly Davis. Absent: 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 17, 2009.
2.
Approval of claims.
3.
Approval of the appointment of
Tony Likens to the Economic Development Review Committee.
Byrd moved to approve
the Consent Agenda. Motion seconded by Trimm. On roll call, Brown,
Friesen, Byrd, Trimm, Lueders, Kuzelka, and Davis voted “yes.” Bender
absent. Motion carried.
Byrd moved to set a
public hearing for the Final Application for the Neighborhood Stabilization
Program for May 5, 2009 at 7:30 p.m. Motion seconded by Lueders. On roll
call, Brown, Friesen, Byrd, Trimm, Lueders, Kuzelka, and Davis voted “yes.”
Bender absent. Motion carried.
David Taladay,
Programs Manager with Southeast Nebraska Development District (SENDD), was
present to discuss the potential citywide owner-occupied housing
rehabilitation program. Taladay stated the City had contracted with
Hanna:Keelan Associates last April for a housing market study with
strategies for affordable housing in Fairbury. Hanna:Keelan should have a
final presentation in the near future. Taladay stated that under the
Nebraska Affordable Housing Program (NAHP) as administered by Nebraska
Department of Economic Development (NDED), single communities may apply for
programs to address needed “housing rehabilitation” for income eligible,
single-family, owner-occupied housing units. This program may be 100%
financed by the Community Development Block Grant (CDBG) funds, with no
match required by the City. Taladay stated they believe a program to
rehabilitate at least ten housing units within Fairbury would be an
appropriate and fundable activity. They believe a program of approximately
$300,000.00 could be implemented to include all required CDBG activities;
administration, housing program management, lead paint hazard testing,
rehabilitation construction, etc. The guidelines for the program should be
available June 1, 2009 with the applications being due July 31, 2009.
Council person Ed Friesen wanted to know what the up-front costs would be.
Taladay stated that SENDD staff would assist the City in developing all
materials needed for the marketing and for a potential full application to
the NAHP program. Taladay stated they would prepare all the data; there
would be no cost unless we would do a mass mailing or ads in the newspaper.
Taladay stated they would also develop a brochure which would be reviewed by
the housing committee; they should have info back by mid June to see if this
would be feasible for our City. Trimm moved to give permission for SENDD to
develop and distribute “pre-application” materials to see what level of
interest may be documented in Fairbury and for a potential full application
to the NAHP program. Motion seconded by Brown.
On roll call, Brown, Friesen, Byrd, Trimm, Lueders, Kuzelka, and Davis
voted “yes.” Bender absent. Motion carried.
Taladay stated the
NDED has recently completed a final action plan to implement a CDBG funded
Neighborhood Stabilization Program (NSP-1) which would be 100% financed
through CDBG. The consultant for the housing market study has identified a
significant number of potential structures (40-50) that need either very
substantial rehabilitation or need to be removed from the existing housing
inventory to make a “better market” in the City. This NSP-1 has been on a
very fast tract from the federal department of Housing and Urban Development
(HUD) and final documentation from NDED has just been approved. A
pre-application was submitted in February 2009 in an attempt to use Fairbury
as a potential applicant for a countywide acquisition and demolition
program. The latest guidelines indicate that only Fairbury has the greatest
eligibility for funding in Jefferson County and that only demolition is
allowed. Taladay stated final application for 100% financing, with no City
match required is due by May 6, 2009. They believe a program for demolition
of at least ten vacant, dilapidated housing units would be appropriate for
the budget and time frame requirements of the program. They believe that
costs in the amount of approximately $260,000.00 would allow for
implementation of the program, including the following types of activities:
administration, legal documentation, inspections costs, hazardous materials
testing and removal, program coordination, demolition costs, etc. Taladay
stated he had taken several pictures of severely dilapidated, vacant homes
in Fairbury today. Brown moved to allow SENDD staff to work with City staff
on the development of a final full application for the Neighborhood
Stabilization Program. Motion seconded by Trimm.
On roll call, Brown, Friesen, Byrd, Trimm,
Lueders, Kuzelka, and Davis voted “yes.” Bender absent. Motion carried.
John McKee, Jefferson
County Emergency Management Director was present to discuss the joint
purchasing/grant program for the early warning systems which would be 75%
match from the United States Department of Commerce, Economic Development
Administration and 25% local match. McKee has been working with George Frye
of SENDD to get the grant dollars. McKee also met with the County
Commissioners and the Board of Public Works (BOPW) today; they are both on
board with doing this joint program. Three of the sirens that Fairbury has:
by Jefferson School, B Street Market, and the Heritage need to be replaced
as they are outdated and getting very hard to obtain parts. McKee thinks it
would be a good idea to put a new siren out by Wal-Mart and replacing the
above three sirens and then using one of the old sirens in the new addition
east of town, one at Crystal Springs, and keeping the other for parts. The
cost is $15,500.00 per siren. The sirens operate totally by battery. This
would be a total of $62,000.00. If the three entities, City, BOPW, and
Commissioners would share the cost (25% match), it would be $5,100.00 for
our share. Taladay stated with the shared purchasing, like they did before,
we may be able to get a cheaper rate as they will do the grant as a whole.
At that time, they had received a 10-15% reduction in cost because of the
shared purchasing. Davis moved to participate in the joint purchasing/grant
program for the early warning systems with a 25% local match and authorizing
Mayor Ward to sign a letter of commitment.
Motion seconded by Friesen. On roll call,
Brown, Friesen, Byrd, Trimm, Lueders, Kuzelka, and Davis voted “yes.”
Bender absent. Motion carried.
Brian Blobaum of
Blobaum & Busboom P.C. presented the results of the 2007-2008 Fiscal Year
audit and year end Financial Statements. Blobaum stated his report issues a
clean opinion of the City’s Financial Statements and that he believed they
are free of material misstatement. Blobaum cited internal control
deficiencies as lack of separation of duties and the lack of expertise to
detect errors in financial statements. Blobaum cited the following
compliance and internal control items: existing LB840 loans when the
Economic Development Program does not allow for loans; misclassifications
within the payroll system; numerous instances in which the approved claims
form indicated payment from one fund different from which the payment was
coded in the ledger, which is more prevalent having new clerks getting use
to the system, which is probably spread between the previous clerk and the
new clerk; Blobaum stated these are minor things. Also another item related
to the keno fund - due to increased prize payouts in the keno game during
the year the lottery operator revised the city’s percentage and the order of
proceeds allocation; there was no approval from the city or revision of the
keno contract with the operator to support such change; these variances
should have been detected and corrected during routine oversight and
reconciliation procedures. Blobaum concluded by stating the City’s net cash
position shows an increase of $215,000.00. The results of the cash position
are positive; we’re getting back to where we were four to five years ago;
getting more healthy in our financial position. Brown moved to approve the
2007- 2008 Fiscal Year Audit report. Motion seconded by Lueders.
On roll call, Brown, Friesen, Byrd, Trimm,
Lueders, Kuzelka, and Davis voted “yes.” Bender absent. Motion carried.
Davis moved to table
the request from Gloria Poteet regarding her garbage service charges as she
was unable to attend this evening. Motion seconded by Byrd. On roll call,
Brown, Friesen, Byrd, Trimm, Lueders, Kuzelka, and Davis voted “yes.”
Bender absent. Motion carried.
Discussion was held
regarding the recommendation from the Public Works Committee regarding the
Maintenance/Management Agreement between the City of Fairbury and the
Fairbury Area Softball Association; term of agreement October 1, 2008 –
October 1, 2011. City Administrator Joseph Parker stated the current
agreement rolls over by itself, which it did, but since then the Softball
Association wants some of the wording and the amount of money they receive
to be changed. They want the maintenance of seating and bleachers to be
removed from their responsibilities and to increase the annual fees for the
upcoming softball season by 3% to $14,205.45 and then a 5% increase each of
the following two seasons which is due in part to price increases in
fertilizer, etc. The annual maintenance fee is due prior to May 15th
annually. City Attorney David Bargen stated under the current agreement, it
would be automatically renewed from year to year (which it has) unless
either party shall give written notice of termination to the other at least
six months prior to commencement of any renewal term. Bargen stated since
no notice was given, both parties have to consent to the changes of the
agreement. Bargen reviewed a couple areas of concern in the contract
needing to be changed to provide more protection for the City. The City is
the owner of the Groom Master which was originally purchased by the
Association and donated to the City for use in conjunction with the
maintenance of the described premises. Said machine is hereby leased to the
Association during the term of this agreement. Said machine may be
subleased to any contractor with who the Association may contract for the
actual maintenance of the playing fields. It is the Association’s
responsibility for the upkeep. Bargen stated if they do sublease; the City
should have some say about who leases it and should have notice who it is
that is leasing as it is City equipment. Bargen stated he felt the
indemnification clause should be stronger; amended to have more protection
for the City. It states the Association shall defend, indemnify and hold
the City harmless from and against any claim, loss, expense or damage to any
person or property, etc. arising out of the Association’s maintenance and
management of the premises, Bargen stated he thought after this it should be
amended to adding “and/or arising out of any activities sponsored by or
attributable to the Association.” Bargen also thinks we should require
proof of liability insurance on the part of the Softball Association and
make sure the City is named as additional insured on that policy. Council
person Beryl Lueders questioned who owns the extra building and the
improvements that have been made. Bargen explained that generally
improvements made by a lessee that become fixtures on, or affixed to, land
that is leased become the property of the lessor, in this case the City, and
that would be the case here, in his opinion. Ed Durfee with the Softball
Association stated the sublease part of the agreement could be eliminated;
they have a million dollar liability insurance policy; they had purchased
the groom master and gave it to the City but they could have use of it; the
buildings they have put up they have given to the City; and also any
improvements they have done go with the land which the City owns. This
could all be included in the contract. Lueders stated at the Public Works
meeting they discussed the terms of this agreement which is May 15 through
October 31. Lueders stated the agreement states it is the Association’s
responsibility to maintain the restrooms and provide the supplies for the
restrooms. Lueders stated the City is also cleaning the restrooms ~ doesn’t
feel the City should be paying both the Association and City employees to do
this; it is a duplication of expense that shouldn’t be. Durfee stated the
original dates of the contract, until October, was such because of the
school. Kevin Hergott with the Softball Association stated they do not have
tournaments every weekend so 90% of the use of the restrooms on the weekends
is from the funpark. Lueders thought it would be a good idea to discuss the
agreement annually instead of the agreement being for three years. Council
person Doug Brown questioned Durfee if the Association had any loans.
Durfee stated they had been in debt until a couple months ago; but will be
in debt again in couple months due to the softball restroom project. Durfee
stated the length of the agreement could possibly be May 1 through July 15.
Lueders also questioned the balance sheet the Association had turned into
the City. Lueders said it shows a net worth of $14,249.24 and at the Public
Works meeting they had stated they only had a balance of
$4,000.00-5,000.00. Durfee wasn’t for sure about the financials. Brown also
questioned Durfee what the circumstances were before ~ the amount use to be
$4,000.00 and then it went up. Durfee stated they had operated at a loss
for several years; then came back and asked the City for more money.
Hergott stated the summer help use to be paid by the City and then it was
changed to the Association paying for the summer help. It was discussed
maybe should form a committee to go over all the details of the agreement
and work with the Association to iron out the details. Brown asked Bargen
if notice needs to be given by either party to terminate the contract before
the contract can be changed. Bargen replied if both parties want to reform
the contract, no notice needs to be given, but both parties would need to
agree in writing to reform the contract. Bargen stated the reformed contract
would replace the existing contract. Byrd moved to table the
Maintenance/Management Agreement between the City of Fairbury and the
Fairbury Area Softball Association to refer it to a committee designated by
the Mayor for future investigation and brought back at a later time. Motion
seconded by Lueders. On roll call, Brown, Friesen, Byrd, Trimm, Lueders,
Kuzelka, and Davis voted “yes.” Bender absent. Motion carried.
Assistant Street
Superintendent Laura Bedlan discussed the changes to Street Improvement
Project 2008-2 which is 17th & F Street. Property owner Larry
Schramm was also present. Schramm feels this project is incomplete without
squaring up the intersection. Parker stated the engineer (Olsson Associates)
could change the plan with no problem. Bedlan stated the engineer has two
different suggestions outlined per the landowner’s request ~ squaring up the
intersection at 17th & F Street with an estimated cost of
$1,500.00 and also a concrete return on the north side with an estimated
cost of $1,670.00. The Street Department does not want to square up the
intersection at this time; they feel if the landowner wants to build to the
west, he would have to do a private drive and curb cut at that time. They
recommend doing the radius now with a full curb; everything else can be done
later at a minimal cost, squaring up the intersection at 17th &
F, and doing the return on the north side later as the land to the west is
not developed yet, this is not a dedicated street, and the return to the
north would essentially be a private drive. The City could agree to
squaring up of the intersection, but there would then be a full curb along
the west edge. If this would be developed to the west in the future, the
landowner would have to get a curb cut for a private drive. The Street
Department does not want to go with the drop curb to the west as this is not
developed and does not want it to be used for a private drive. Bedlan
stated the Street Department would be willing to do the concrete return on
the north side if it meets all requirements for subdivision roads according
to the subdivision regulations. Brown stated he felt it would be best to do
everything now instead of doing part of it now and doing more later with
having to tear out some of what is done now. Schramm agreed. Friesen moved
to approve the changes to Street Improvement Project 2008-2 by squaring up
the intersection at 17th & F Street with a full curb along the
west edge of the street and doing the concrete return on the north that
meets the City’s subdivision regulation for street widths. Motion seconded
by Brown. On roll call, Brown, Friesen, Byrd, Trimm, Lueders, Kuzelka, and
Davis voted “yes.” Bender absent. Motion carried.
Brown moved to approve
the request from Mick Hynek, Street Superintendent to purchase a used
double-drum roller to be utilized for asphalt patch finishing from Top Coat
Company in the amount of $4,200.00. Motion seconded by Friesen. Bedlan
stated they now use trucks to do the finishing. The drum roller is needed
for the larger patching jobs that the street crew performs and would allow
for a better finish to the patching jobs. Council person Brad Kuzelka
wanted to know how many hours this used machine has. Council person Kelly
Davis stated this would be something that we wouldn’t put a lot of hours
on. Friesen stated he had visited with Hynek and he thought it would be
adequate for what the street department needs. On roll call, Brown,
Friesen, Byrd, Trimm, Lueders, Kuzelka, and Davis voted “yes.” Bender
absent. Motion carried.
Discussion was held
regarding the City purchasing a blighted property, located at 411 A Street.
Parker stated due to the costs of removing the blight, the owner wishes to
sell the property to the City at a cost of $1.00. The City would then be
required to remove the blight with the possibility that some grant dollars
may become available. Friesen wanted to know what the ultimate goal is.
Parker said to get rid of the property; hopefully sell it to a neighbor.
Brown wanted to know if we would get an influx of people wanting to sell the
City their property. Parker stated we want to get rid of blighted
properties. Brown stated we could take a pro-active approach; consider each
individually, we wouldn’t have to purchase each property. Brown wanted to
know if some sort of a preliminary inspection could be done before
purchasing to make sure there are no problems with the property. Bargen
stated any purchase agreements drawn up to purchase properties, would
contain a clause pertaining to this. Lueders moved to purchase the blighted
property, located at 411 A Street, from Don Willcoxon in the amount of
$1.00. Motion seconded by Trimm. On roll call, Brown, Friesen, Byrd,
Trimm, Lueders, Kuzelka, and Davis voted “yes.” Bender absent. Motion
carried.
Parker reported to the
Council the City received the following three bids for the demolition of the
structure on 319 A Street, legally described as Lot 2 of the Re-Survey of
Lots 13,
14 & 15 of Nutting’s
Subdivision of the City of Fairbury, in the County of Jefferson, and State
of Nebraska:
McBride Trucking & Excavation $3,500.00
Banahan Trucking & Excavating $6,550.00
Haddan Excavating $5,700.00
Parker stated they
would give the owner a little more time to remove any personal items from
the house that he wants. Bargen will send a letter to Mr. Bundy to this
effect. It was discussed that the public’s safety requires the property be
taken down at once, given the regulations of the city code. Trimm moved to
approve the low bid of McBride Trucking & Excavation in the amount of
$3,500.00 and giving McBride the option to start in fifteen days. Motion
seconded by Byrd. On roll call, Brown, Friesen, Byrd, Trimm, Lueders,
Kuzelka, and Davis voted “yes.” Bender absent. Motion carried.
Brown moved to approve
the request from Jim Frager with Five Rivers RC&D to conduct a hazardous
waste collection on April 18, 2009 from 8:00 a.m. – 10:30 a.m. at the City
shop, contingent upon their having adequate controls for safety. Motion
seconded by Friesen. Brown wanted to know if there would be any liability
concerns with doing this. Bargen stated we should check with Lower Big Blue
Natural Resource District, the sponsor of the event, to make sure they have
safety controls in place; make sure they have liability insurance. Bedlan
will assist in contacting. Bedlan also stated Hynek and a couple City
employees will also be helping with the project. On roll call, Brown,
Friesen, Byrd, Trimm, Lueders, Kuzelka, and Davis voted “yes.” Bender
absent. Motion carried.
Friesen moved to
approve the request from Janet Ahl/Central School for using areas of the
City Park for the annual Family Fun Fitness Night on April 27, 2009 from
5:00 p.m. – 7:00 p.m. and the City placing barricades at designated areas.
Motion seconded by Brown. Police Chief Brooks Bryan was present; he stated
this would be ok with him. On roll call, Brown, Friesen, Byrd, Trimm,
Lueders, Kuzelka, and Davis voted “yes.” Bender absent. Motion carried.
Discussion was held
regarding the placement of stop signs (four way stop at 7th & E
Streets). Council person Don Trimm stated he has had several complaints
regarding this intersection; people especially coming from the north at a
fast speed and it is difficult to see to the north coming from the east;
there have been fairly close accidents happening at this intersection.
Citizen Kent Preston stated 25-30 years ago had four way stops at this
intersection and it had caused several accidents and they eventually took
the signs back down. Preston feels the answer is taking away some of the
parking to the north on the west side of E Street. Preston feels this will
cause more accidents. Citizen Frank Jordan said when he was on the police
force, about 20 years ago the state had done a survey and ended up removing
over 20 stop signs because Fairbury was over regulated which created more of
a liability, so they removed stop signs to reduce the liability for the City
of Fairbury. Jordan said they did have a lot of accidents at this
intersection. Jordan doesn’t feel a four way stop is the answer. Jordan
wants to know if we are recreating this liability since we are starting to
put up more stop signs like we have recently at 4th & M, 4th
& F, and now these. Friesen suggested it may be a good idea to also put a
stop sign in the middle of the intersection for awhile until everyone gets
use to it or do away with all parking on all sides, as it is also difficult
to see to the south. Bargen suggested maybe we need to get more
information; have a study done of the intersection ~ parking vs. stop
signs. Bargen stated maybe the Department of Roads could give us
suggestions on how they do studies for different areas. Trimm suggested
putting to the north one block a stop sign ahead sign. Bryan said we need
to consider the liability; east on 7th Street he has had various
close calls; visibility of cars is bad; but we can’t do nothing, we have to
do something. Maybe a stop sign ahead would slow people down. Friesen
stated it would be interesting to find out what people think that travel
through this intersection on a regular basis. Council person Brad Kuzelka
suggested putting the speed trailer close to this intersection for a period
of time. Trimm moved to adopt Resolution No. 719 the placing of four way
stop signs at the intersection of 7th & E Streets, amended to
allow for putting red flags on all the stop signs, placing the sign to the
north one block advising of an upcoming stop sign, placing a stop sign in
the middle of the intersection for awhile until everyone gets use to it, and
making sure the police pay special attention and enforce it. Motion
seconded by Davis. On roll call, Friesen, Byrd, Trimm, Kuzelka, and Davis
voted “yes.” Brown and Lueders voted “no.” Bender absent. Motion carried.
Brown moved to adopt
Resolution No. 720 ratifying and confirming the acceptance of the bid from
R. L. Tiemann Construction Inc. in the amount of $163,471.62 for the
construction of improvements 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. On roll call, Brown, Friesen, Byrd, Trimm,
Lueders, Kuzelka, and Davis voted “yes.” Bender absent. Motion carried.
Within the City
Administrator’s report Joseph Parker stated the sandblasting was completed
at the swimming pool today. Bargen stated Legislative Bill LB532
authorizing counties to pass ordinances has been amended to limit topics and
city ordinances would preempt the county ordinances in unincorporated
portions outside city limits that are within the jurisdiction of the City.
Davis moved to adjourn
the meeting. Motion seconded by Brown. On roll call, Brown, Friesen, Byrd,
Trimm, Lueders, Kuzelka, and Davis voted “yes.” Bender absent. Motion
carried. Meeting adjourned at 9:20 p.m.
Homer
L. Ward, Mayor
ATTEST: Sharyl Preston, City Clerk
