Regular Meeting
July 20, 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 20th day of
July 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, Tim
Polson, Phil Rogge, Shirley Bender, Brad Kuzelka, and Kelly Davis.
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 July 6, 2010.
2.
Approval of claims.
3.
Approval of the June 2010
Reconciliation Report.
4.
Approval of the appointment of
Cathy Kleine to the Board of Adjustment. Term to expire May 2013.
Rogge moved to approve
the Consent Agenda. Motion seconded by Friesen. On roll call, Brown,
Friesen, Bailey, Polson, Rogge, Bender, Kuzelka, and Davis voted “yes.”
Motion carried.
Mayor Ward opened the
Public Hearing regarding a request for a Special Use Permit
(SU-2010-01) from
Harold Wiegert to exceed the maximum square foot requirement for a building
located in the R1 – Low Density Residential Zoning District at 56935 Brawner
Avenue, legally described as Lot 800, Brawner Creek Subdivision, Section 12,
Township 2, Range 2, City of Fairbury, NE and as allowed under Article 5,
Section 5.06, Special Provision 2 of the City of Fairbury Zoning Regulations
– 2005 Edition. No one addressed the Council during the public hearing.
Mayor Ward declared the hearing closed.
Mayor Ward opened the
Public Hearing regarding a request for a Special Use Permit
(SU-2010-02) from Ron
and Nancy Byrd to expand an existing nonconforming building located in the
R3 – High Density Residential Zoning District at 711 B Street, legally
described as Lots 2 and 3, Block 7, Original Town, City of Fairbury, NE and
as allowed under Article 5, Section 5.08, 3c of the City of Fairbury Zoning
Regulations – 2005 Edition. Laura Bedlan, Zoning Administrator, addressed
the Council. Bedlan stated a new drawing from EBS Construction was
presented this evening which has more clarification. Bedlan stated the
garage is now going back further west; the setback was going to be 8’ and
now it will be 15’ which will better match the roof line. Bedlan stated it
still won’t be in compliance with current zoning regulations; however, it
will be more in compliance than it was with the 8’. Council member Kelly
Davis asked if the garage will go back the same distance as the breezeway.
Nancy Byrd replied that it would. No
one else addressed the Council during the public hearing. Mayor Ward
declared the hearing closed.
Polson moved to set a
Public Hearing regarding a request for a Special Use Permit
(SU-2010-03) from
Livingston Enterprises to allow for the addition of residences in
conjunction with the principle use of a building located in the B2 –
Downtown Commercial Zoning District at 500 4th Street, legally
described as Lots 7 and 8, Block 31, Original Town, City of Fairbury,
Jefferson County, NE and as allowed under Article 5, Section 5.11 3b of the
City of Fairbury Zoning Regulations – 2005 Edition for August 3, 2010 at
7:30 p.m. Motion seconded by Bailey. On roll call, Brown, Friesen,
Bailey, Polson, Rogge, Bender, Kuzelka, and Davis voted “yes.” Motion
carried.
Brown moved to set a
Public Hearing for the semi-annual review of the Local Option Sales Tax for
Economic Development (LB840) Program for August 3, 2010 at 7:30 p.m. Motion
seconded by Kuzelka. On roll call, Brown, Friesen, Bailey, Polson, Rogge,
Bender, Kuzelka, and Davis voted “yes.” Motion carried.
Mayor Ward read from
the agenda “consider recommendation from Health Insurance Committee and
Finance & Keno Committee concerning health insurance with an effective date
of August 1, 2010.” Dan Duren with Benefit Management, brokers involved
with the health insurance renewal, addressed the Council. Duren stated he
has been working with the Health Insurance Committee the last thirty days
and also met with the Finance & Keno Committee this evening. The initial
rate increase with BCBS was 19%; they’ve gotten it down to 10.3%. Duren
stated they originally had negotiated the increase down to a 14.71%; and
after meeting with the Health Insurance Committee did further negotiating
and got it down to 10.3% - they were trying to get it below 10%. Council
member Tim Polson asked Duren to explain what makes the rate increase go
up. Duren stated BCBS sets out their base rate – added to that or decreased
from that based on our demographics, it would be the claims history the City
has and also the younger the population of our plan the lower the rates will
be and the older the population the higher the rates will be. Age and claim
experience, to some degree, is the structure for the rate increases. Duren
went over the spreadsheet which shows the current rates compared to the
renewal rates for both the Traditional Plan and the HSA Plan; with the plans
staying exactly the same as they are now with the $250/$500 deductible for
the Traditional Plan and $2000/$4000 for the HSA Plan. Duren stated, on the
Traditional Plan, the premium for employee only would go up $736.48 from
$667.59; Employee/Spouse up to $1,509.76 from $1,368.57; Employee/Child up
to $1,288.85 from $1,168.30 and Employee/Family up to $1,966.41 from
$1,782.48 and on the HSA Plan, the premium for employee only would go up to
$569.62 from $516.29; Employee/Spouse up to $1,167.73 from $1,058.41;
Employee/Child up to $996.85 from $903.53; and Employee/Family up to
$1,520.91 from $1,378.52. Duren stated 17 employees are on the Traditional
Plan (7/Single; 4/Spouse; 6/Family) and 42 employees are on the HSA Plan.
Earlier today he visited with the employees, that were available, that are
currently on the Traditional Plan to explain the HSA Plan to them in case
they’re interested in changing plans; which the City has open enrollment
which would be effective August 1. Duren stated there is an advantage to
both the employee and the City to get these employees over to the HSA – the
high deductible medical plan. The 17 employees that are currently on the
Traditional Plan represent a $62,514.00 premium increase versus being on the
HSA. The way it is structured right now the City will be contributing about
$13,500.00, just in August 2010, to their HSA as an incentive to switch over
to the high deductible plan. Duren stated the downfall is a lot of the
employees meet their deductible the beginning of the plan year; if they
switch to the high deductible plan – then they have a new deductible
starting August 1 with the deductible starting over January 1 – as our
deductible is calendar year and the renewal rates and open enrollment is
August 1. (If they switch over, the single deductible would raise to
$2,000.00 from $250.00 and the family deductible would raise to $4,000.00
from $500.00.) Duren stated the Health Insurance Committee and the Finance
& Keno Committee recommends the City put an additional $500.00 for single
and $1,000.00 for family into the employees HSA accounts as they did last
year to help with the high deductible as an incentive for them to switch
plans. The City also contributes monthly to the employees HSA accounts -
$70.83 for single and $141.67 for family – per union contracts. Duren
stated the Health Insurance Committee did look at other companies and also
self-funding. We have a few very large claims right now; if we would want
to go with another company, the employees would have to fill out forms and
would have to be approved – the companies could raise the rates from what
they had originally quoted or they could deny the City coverage. BCBS can
not deny us – it is a guaranteed renewal. Council member Phil Rogge
confirmed it is a substantial savings to the City – if the 17 employees
would switch; it would save the City $62,514.00 in premiums and the City
would contribute $13,500.00 as an incentive to switch. Rogge also stated
since the City is under union contracts with the employees, the City’s hands
are tied with what can be done with the deductibles and the actual out of
pocket expense for the employee. Duren stated the union contracts state
$250.00 deductible for the Traditional Plan and $1,000.00 for out of
pocket expense and the HSA is also spelled out in the contracts; so nothing
can be changed with this without further negotiations with the unions. This
keeps the City from looking at some companies as they do not offer this
particular plan. Finance & Keno Committee
member Shirley Bender stated they voted to approve the 10.3% renewal rate
increase. Rogge questioned what the statewide average increase was. Duren
stated he wasn’t sure – but did know that Falls City started out at 29% and
got down to 19%; he has seen some as high as 41%. Polson asked if the new
health care reform makes everyone’s insurance rates go up even though it is
suppose to decrease. Duren stated the new health care reform bill will
need to be addressed as they come out with new regulations. The new bill
has 2500 pages of legislation of which each page has 1000 pages of
regulations. Some coming into play for this year - last year BCBS had a
lifetime maximum of ten million dollars – now it is unlimited; if you have a
family plan you can now keep your children on until age 27, regardless if
they are still a student, married, or working. This new reform will have an
impact on cities; will have to make hard decisions whether you move your
employees over to the exchanges or pay a fine. Brown moved to approve the
recommendation from the Health Insurance Committee and Finance & Keno
Committee to accept the 10.3% premium rate renewal increase with an
effective date of August 1, 2010. Motion seconded by Rogge. On roll call,
Brown, Friesen, Bailey, Polson, Rogge, Bender, Kuzelka, and Davis voted
“yes.” Motion carried.
Bender moved to approve
the additional $500.00/$1,000.00
Employer HSA Contribution in August 2010 to the employees HSA accounts.
Motion seconded by Rogge. Duren stated the City will contribute $70.83 for
single and $141.67 for family per month according to the union contracts.
Duren stated the Health Insurance Committee voted to approve the additional
$500.00/$1,000.00 City contributions effective August 1, 2010 same as the
City did last year. Finance & Keno
Committee member Shirley Bender stated they voted to approve the additional
$500.00/$1,000.00 contributions to the HSA accounts in August 2010 as an
incentive. On
roll call on the motion, Brown, Friesen, Bailey, Polson, Rogge, Bender,
Kuzelka, and Davis voted “yes.” Motion carried.
Davis moved to approve
the recommendation from the Planning Commission to approve the application
for a Special Use Permit (SU-2010-01) from Harold Wiegert to exceed the
accessory building square foot requirement located in the R1 – Low Density
Residential Zoning District; located at 56935 Brawner Avenue. Motion
seconded by Friesen. On roll call,
Brown, Friesen, Bailey, Polson, Rogge, Bender, Kuzelka, and Davis voted
“yes.” Motion carried.
Bailey moved to approve
the recommendation from the Planning Commission to approve the application
for a Special Use Permit (SU-2010-02) from Ron and Nancy Byrd to expand an
existing nonconforming residential structure located in the R3 – High
Density Residential Zoning District; located at 711 B Street. Motion
seconded by Brown. On roll call,
Brown, Friesen, Bailey, Polson, Rogge, Bender, Kuzelka, and Davis voted
“yes.” Motion carried.
Rogge moved to refer
the matter of the Nebraska
Transportation Service Agreement with Black Hills/Nebraska Gas Utility
Company LLC to the Board of Public Works. Motion seconded by Bailey.
On roll call, Brown, Friesen,
Bailey, Polson, Rogge, Bender, Kuzelka, and Davis voted “yes.” Motion
carried.
Brown moved to adopt
Resolution No. 783 calling for early payment and redemption of $220,000.00
Bond Anticipation Notes, Series 2009 (Street Improvement). Motion seconded
by Friesen. Phil Lorenzen, Financial Advisor/Bond Underwriter with D.A.
Davidson addressed the Council. Lorenzen stated the recommendation is in
accordance with the resolutions and ordinances that were adopted by the
City. The City made improvements in two street projects – Street
Improvement District 2008-1 and Street Improvement Project 2008-2 as well as
some drainage issues. The $220,000.00 in Bond Anticipation Notes, Series
2009 that are being called, were delivered the end of May 2009; these notes
come due September 15, 2010. The project is completed and special
assessments have been levied; it is in order to go ahead and issue bonds to
pay off the notes which were issued with an interest rate of 1.35%.
Lorenzen stated the $305,000.00 Bond Anticipation Notes, Series 2009B which
were issued for the storm water drainage projects that pertain to Resolution
No. 784, are being called which were delivered at the end of June 2009.
These also come due September 15, 2010; which were issued with an interest
rate of 1.30%. The recommendation is that the City would issue $520,000.00
in bonds which is outlined in Ordinance No. 2997 with an interest rate of 1%
to 3.3% which would result in an average coupon borrowing rate for the City
of 2.709697; payable through 2020 – a ten year installment. The annual
payments average $60,000.00; of which about one third of the annual payment
will come from the expected collections of the special assessments that have
been levied. The initial pay down of special assessments was a little over
$18,000.00. Lorenzen stated they would expect to call the notes, with a
payment on August 20, 2010, which will coincide with the delivery of funds
to the City from the bonds to go ahead and pay off the note. Rogge
questioned how this all works with the bonds. Lorenzen stated the process
under the Nebraska Statutes ~ first the City creates an improvement district
(which we did with the two street improvement projects and the storm
drainage project), then go through the bid process, let the contracts,
construct the work, the engineer then certifies the work, then levy special
assessments as appropriate, then have intermediate notes, then the actual
bonds. On roll call, Brown, Friesen, Bailey, Polson, Rogge, Bender,
Kuzelka, and Davis voted “yes.” Motion carried.
Rogge moved to adopt
Resolution No. 784 calling for early payment and redemption of $305,000.00
Bond Anticipation Notes, Series 2009B (Storm Drainage Improvements). Motion
seconded by Bailey. On roll call, Brown, Friesen, Bailey, Polson, Rogge,
Bender, Kuzelka, and Davis voted “yes.” Motion carried.
Mayor Ward read by
title Ordinance No. 2997: AN ORDINANCE
OF THE CITY OF FAIRBURY, NEBRASKA,
AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION VARIOUS PURPOSE BONDS, SERIES
2010, OF THE CITY OF FAIRBURY, IN THE PRINCIPAL AMOUNT OF $520,000.00 TO
PROVIDE FUNDS, TOGETHER WITH FUNDS ON HAND, TO PAY THE COST OF IMPROVEMENTS
IN STREET IMPROVEMENT DISTRICT NO. 2008-1 AND STREET IMPROVEMENT PROJECT NO.
2008-2; TO PAY THE COST OF IMPROVEMENTS CONSISTING OF STORM SEWER
IMPROVEMENTS IN STORM SEWER PROJECTS 11TH AND F STREETS, AND 10TH
AND G STREETS PURSUANT TO RESOLUTION OF THE CITY; 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. Bailey moved to suspend
the statutory three readings requirement for Ordinance No. 2997. Motion
seconded by Kuzelka. On roll call, Brown, Friesen, Bailey, Polson, Rogge,
Bender, Kuzelka, and Davis voted “yes.” Motion carried. Polson moved for
the final passage of Ordinance No. 2997. Motion seconded by Rogge. On roll
call, Brown, Friesen, Bailey, Polson, Rogge, Bender, Kuzelka, and Davis
voted “yes.” Motion carried.
Mayor Ward read from
the agenda “consider amendment to Resolution No. 779 obligating
LB 840 Funds to “Discs
N Dat” for a “Performance Based Grant” in the amount of $10,000.00.” City
Attorney David Bargen stated the next two items on the agenda – amendment to
Resolution 779 and Resolution 780 - are on the agenda because of changes in
the original recommendations, which includes specified conditions, from the
Economic Development Review Committee and the CDBG Program Income Reuse
Economic Development Loan Fund Review Committee regarding the “Discs N Dat”
project concerning collateral. Craig Eberle with SENDD, Program
Administrator for the Fairbury LB840 Program and the CDBG Reuse EDLF Program
addressed the Council. Eberle gave a brief background of the project
stating an application was submitted by Chris Amundson for the “Discs N Dat”
project requesting $15,000.00 in funding - $10,000.00 as a Performance Based
Grant through the LB840 Program and $5,000.00 as a Direct Reuse Loan through
the CDBG EDLF Program. A joint meeting of the Economic Development Review
Committee and the CDBG Program Income Reuse Economic Development Loan Fund
Review Committee was held June 9, 2010, at which time, the committees were
provided a financial packet and recommendations for the project. Part of
the financial documents came from the REAP program showing the cash flow
statements, financial projections, collateral statements as well as the
business plan itself. The committees reviewed and approved the proposals as
presented for the $10,000.00 performance based grant and the $5,000.00
direct reuse loan to Discs N Dat, with specified conditions. The project
then proceeded through the public hearing process and the City Council
approved resolutions to obligate funds for both requests at the July 6, 2010
Council meeting. During the initial closing procedures which followed soon
after the Council meeting, it was determined through a formal title search
that one of the secondary collateral requirements cannot be met. As a
result to rectify the situation, a substitution of collateral proposal was
prepared. This substitution of collateral proposal addresses the
substitution of a $15,000.00 Deed of Trust in second lien position on Chris
and Nancy Amundson’s personal residence which is not available, to a
$15,000.00 Deed of Trust in a first lien position on Marjorie Terrill’s
personal residence at 802 6th Street. Eberle stated that
Marjorie has been well informed of the risks associated with doing this; she
is very well aware and is on board with this project. The LB840 Economic
Development Review Committee and the CDBG Program Income Reuse Economic
Development Loan Fund (EDLF) Review Committee had a joint meeting on July
14, 2010 to consider this change in conditions. The committees were
provided with updated proposals addressing this specific substitution of
collateral amendment. The committees approved the amendment and
re-recommended presentation to the City Council. Bargen explained the
City’s LB840 Program as established by its governing documents – there is an
application process for those interested in getting funds from the City,
which first goes to the program administrator and respective review
committees for approval of conditions, and then a recommendation is brought
to the City Council. For the Council’s approval to obligate funds, the
Council must hold public hearings on each application and on the obligation
of funds, and the City Council adopts a resolution. Bargen stated at the
last Council meeting, the Council adopted two resolutions for two different
loans and/or grants of money from the programs based on the recommendations
made at that time, which made reference to specific conditions.
Subsequently, the recommendation has been changed slightly by the review
committees based on the substitution of collateral being offered for part of
the funding, which changed one of the previous conditions. Bargen
recommends the Council reconsider Resolution No. 779 and Resolution No. 780
because the recommendation from the review committees on which they were
based has changed. Bargen stated the way the program is set up currently,
it states the Council shall hold a public hearing regarding each application
and obligation of funding. The public notices that go out for that hearing
state the recommendations of the review committee and the program
administrator are on file with the City Clerk for public review. This
implies that the public hearing is about the application which includes the
recommendations which includes the collateral that was recommended for
funding of the request, as a specific condition for funding. Bargen
recommends that for the next two agenda items – since they deal with
reconsidering the Resolutions - that a new public hearing be held at the
next Council meeting which will be published, and at the same Council
meeting reconsider Resolution No. 779 and Resolution No. 780 based on the
new recommendations. Mayor Ward stated he will take agenda items #4 & #5
under Resolutions and Ordinances together – considering the amendment to
both Resolutions. Rogge moved to set a public hearing for each agenda item
#4 & #5 under Resolutions and Ordinances for August 3, 2010 regarding the
amendment to the Resolutions based on the substitution of collateral for the
Discs N Dat projects. Motion seconded by Bender.
On roll call, Brown, Friesen, Bailey,
Polson, Rogge, Bender, Kuzelka, and Davis voted “yes.” Motion carried.
Public Works Committee
member Tim Polson stated this committee met again to get the specs together
for a new sanitation truck to go out for bids.
Rogge moved to adjourn
the meeting. Motion seconded by Bender. On roll call, Brown, Friesen,
Bailey, Polson, Rogge, Bender, Kuzelka, and Davis voted “yes.” Motion
carried. Meeting adjourned at 8:20 p.m.
Homer L. Ward, Mayor
ATTEST:
Sharyl Preston
