Regular Meeting
August 3, 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 3rd day of
August 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 20, 2010.
2.
Approval of claims.
3.
Approval of the reappointments
of Jan Nance and James Hintz to the Library Board. Terms to expire July
2014.
4.
Approval of the reappointment
of Bill Jardine to the Museum Board. Term to expire July 2015.
Rogge moved to approve
the Consent Agenda. Motion seconded by Davis. 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-2010-03) from
Livingston Enterprises to allow for the addition of residences in
conjunction with the principle use in 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. Laura Bedlan Zoning
Administrator addressed the Council. Bedlan stated this building is located
in the B2 – Downtown Commercial Zoning District; the zoning will not be
changing in this district; however, there are certain permitted uses and
certain special permitted uses – this falls under one of the special
permitted uses so this comes to the Council as a Special Use Permit
application. Council member Shirley Bender questioned if this building is
where Trailblazers was previously located. Bruce Livingston with Livingston
Enterprises Inc. addressed the Council. Livingston stated this would be
where Trailblazers was located. Livingston stated he has quite a few
trainees that have come here to work from other countries that are here to
work on work visas; they are all 100% legal – they are here for one year –
they learn agriculture. This has been a very good part of his business the
employee side of it – they are very dedicated and they are here to learn and
he has had great success with the employees. Livingston stated he would
like to convert the basement area of the building into apartments – would be
more like a dormitory setting; would have several bedrooms, kitchens,
showers, and bathrooms. Livingston stated he would like to convert the main
floor into his main office – as his company grows this would give him more
room to bring on more personnel – office help; will have to do some minor
remodeling on the main level to do this. Livingston stated the upstairs
could also be converted into more living quarters as needed for employees
that would require this type of housing; this is just a way for him to get
more efficient; he owns some houses in town – would look at selling those
properties and also sell where he has his main office now and convert this
building and have everything in this one location. Council member Phil
Rogge questioned what the capacity would be in this building. Livingston
stated initially 15-20 in the basement level. Livingston stated they have
had very good luck with these individuals; they have had them come from
seven to eight different countries. Council member Tim Polson questioned if
this would be for his workers only and not the general public. Livingston
stated it would just be for his employees as he has to provide them housing
since they are here on work visas. Council member Kelly Davis stated it
would be more like sleeping rooms not apartments. Livingston stated this is
correct. Bender stated that Livingston went through all the proper
procedures regarding the historic district – this will not affect the
historic district or the character of the building; it was approved by the
Historic Preservation Commission. Livingston stated it will be a well
maintained building; they will fix anything that needs to be fixed. Rogge
questioned if Livingston has any plans for the upstairs. Livingston stated
the very top level could also be converted into more living quarters which
would probably hold between thirty and forty employees. Livingston stated
they have already looked at the safety aspects of the building. They will
be getting the sprinklers updated and fixed and will hardwire in smoke
detectors. Safety will be the first priority; they will also have two
escape routes for both the upstairs and downstairs. Council member Ed
Friesen questioned what the time frame would be for needing the upper level
for housing. Livingston thought maybe three years. Rogge questioned how
long he has been getting employees from other countries. Livingston stated
it has been three years going on four; as long as this program is available
he will continue doing this – they are all 100% legal. Livingston stated he
works with Worldwide Farmers Exchange for the work visas; they are out of
California; but they have a contact in Nebraska. Mayor Ward stated that
parking would not be a problem as Livingston transports the employees from
the living quarters to the workplace. Livingston stated that is correct;
will have very minimal vehicles – he’s only had one employee that had their
own vehicle. No one else addressed the Council during the public hearing.
Mayor Ward declared the hearing closed.
Mayor Ward opened the
Public Hearing for the semi-annual review of the Local Option Sales Tax for
Economic Development (LB840) Program. City Administrator Joseph Parker
addressed the Council as no one was able to attend this meeting from the
Citizens Advisory Review Committee. Parker stated according to the LB840
Program Plan, the CAR Committee is to report to the City Council at least
once in every six month period on its findings and suggestions concerning
the program during a public hearing called for this matter. Parker stated
during this time period the committee had received for the Performance Based
Grant: one application was received, one application was processed, zero
applications were denied by the committee, one application was approved,
five applications are pending, zero applications were approved and funded by
the City, and zero applications were denied by the City. Parker stated
during this time period the committee had received for the Downtown Design
Challenge Grant/Historic Preservation Commission: four applications were
received; three applications were processed; zero applications were denied
by the committee; three applications were approved; zero applications are
pending; three applications were approved and funded by the City; and zero
applications were denied by the City. Parker stated the Downtown Design
Challenge Grant is a popular program. Parker stated the financial review of
the applications was conducted according to credit review standards
established for the economic development program by the City of Fairbury.
The financial review of individual projects and applications was conducted
independent of participation from any member of the Citizen’s Advisory
Review Committee. This program review certifies the application process was
conducted properly and any funds expended or projects approved meet the
LB840 eligibility guidelines as written in our community’s plan and approved
(or amended) by the citizens on November 17, 1998. Parker stated no
discrepancies were noted in the program review. Parker stated the Loan
Status/Performance Based Grant Report: zero number of loans being serviced;
zero number of delinquent loans and six number of grant projects being
administered and/or monitored; monitoring jobs for Lambert Vet Supply, Tatro
Chiropractic, Mainstreet Consulting, TLC Creations, Choice Communications
and The Country Cottage; and applications in process: Siebert Communications
and Discs N Dat. No one else addressed the Council during the public
hearing. Mayor Ward declared the hearing closed.
Mayor Ward opened the
Public Hearing concerning a “Substitution of Collateral” Amendment that will
satisfy one of the “specified conditions” of a “Grant Conditions Agreement”
for a “Performance Based Grant” in the amount of $10,000.00 for the “Discs N
Dat” project. Council member Ed Friesen stated he has a few questions and
comments. Friesen stated at the last Council meeting the Council had before
it this same request for approval; the applicants had problems when they got
to the agreement time which prompted finding more collateral to finance the
project. Friesen stated nothing is wrong with the collateral that they
found. Friesen asked if anyone has been through the Economic Development
Loan Fund or Grant process. No one responded. Friesen stated he had been
involved in this process back in 1997 when he opened his business in
Fairbury. Friesen stated this is a long involved process to go through to
get funding through the LB840 Program and the CDBG Program. Friesen stated
this is the start of another term of LB840 and the governing body had made
statements and promises regarding the LB840 program in regards to what the
governing body would do to take care of this fund and they would do it by
watching and paying attention to things – they owe it to the taxpayers who
are funding this program. Friesen stated the City Council has to monitor
the program more closely. Friesen stated that when you see collateral
change you have to ask why. Friesen stated some things need answering that
he doesn’t know have been answered; he feels the review committees need to
look at this application again since it has been some time since the
committees started the process for this project. Friesen stated when gap
funding is provided you also give a certain amount of guidance if necessary;
the focus should be on what the Council can do to help the project to move
so it’s economic development instead of asset acquirement on the part of the
City. Friesen stated it is the Council’s business to work with people to
bring good economic development projects for their business; the City is not
here to become owners of property or equipment through potential collateral
default. Friesen feels the committees need to look at this project more
closely; and if all the questions are answered then we can move forward with
this project. No one else addressed the Council during the public hearing.
Mayor Ward declared the hearing closed.
Mayor Ward opened the
Public Hearing concerning a “Substitution of Collateral” Amendment that will
satisfy one of the “specified conditions” of a “Grant Conditions Agreement”
for a “CDBG – Economic Development Loan Fund (Reuse Loan)” in the amount of
$5,000.00 for the “Discs N Dat” project. Council member Ed Friesen stated
he has the same comments as the previous public hearing. Friesen stated
what he would be looking for - enough time has passed since this process
started - would be a current financial statement, projected cash flows with
reasons and justifications for these, itemized expenses, and a better
description of how the business is projected to grow. This would all be
useful information for the committees. No one else addressed the Council
during the public hearing. Mayor Ward declared the hearing closed.
Brown moved to approve
the recommendation from the Planning Commission to approve the Special Use
Permit request (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; located at 500 4th
Street. Motion seconded by Bailey.
On roll call, Brown, Friesen, Bailey,
Polson, Rogge, Bender, Kuzelka, and Davis voted “yes.” Motion carried.
Bender moved to approve
the Contract Agreement Number NCC-10-494, between the Nebraska Commission on
Law Enforcement and Criminal Justice and Fairbury Police Department. Motion
seconded by Rogge. The Contract is valid from March 1, 2010 and will expire
September 30, 2010. Public Safety Committee member Shirley Bender stated
the committee feels this is a good project and the committee recommends the
Council approve the agreement. Bender stated this is for four free laptops
for the patrol vehicles. Police Officer Chad Sprunk addressed the Council.
Sprunk stated this is a federal grant through the Department of Motor
Vehicles in the amount of $29,528.00 which includes the equipment of a
scanner, printer and software, and also includes training and installation
into the patrol vehicles. Bender stated the officers will be able to do
their reports in their vehicles; so they will not have to go back to the
office to do the reports – they can sit in their vehicles while doing
traffic patrol. Council member Roger Bailey stated this will eventually be
mandatory to go with electronic citations which get exported directly from
the vehicle to the County Attorney’s office and to the Nebraska Crime
Commission; we have the opportunity to obtain this equipment now through a
grant. This is Sleuth software. This is also the same equipment the State
Patrol uses now and the Sheriff’s office will also be getting the same
equipment. Polson stated this will absolutely be no cost to the City as it
will all be purchased through the federal grant. Sprunk confirmed this to
be true. On roll call, Brown,
Friesen, Bailey, Polson, Rogge, Bender, Kuzelka, and Davis voted “yes.”
Motion carried.
Mayor Ward read from
the agenda “consider Fairbury Airport Authority’s Tax Request of $33,000.00
for Fiscal Year 2010-2011”. Bailey
stated this is a request for tax funds; he would like to know what the funds
are used for and he would also like to know if the airport authority
receives any other income from other sources. Sandra Decker from the
Airport Authority Board addressed the Council. Decker stated the basic
request is used for general operating of the airport – phone, utilities,
etc. Decker stated they farm lease about 212 acres of which they receive
approximately $20,000.00 annually; receive revenue from hangers which
currently are full, and the sale of aircraft fuel (the income from this they
purchase more fuel, which is $4.85 a gallon). Bailey questioned if the
Airport Authority has any salaried employees. Decker stated they do not and
that is why no one is at the airport full time any longer. Bailey stated
the tax request is $3,000.00 more than last year. Bender questioned if they
have a financial statement. Decker stated they have not received the
financial statement back from Blobaum and Busboom as they do the budget work
for the airport. Brown moved to
table the tax request from the Fairbury Airport Authority
in the amount of $33,000.00 for fiscal year
2010-2011 until the Council gets a copy of the financial statement or an
income and expenditure statement from Blobaum and Busboom. Motion seconded
by Bailey. Rogge questioned Parker if this would mess up our budget time to
get this completed. Parker stated we have enough time – it will be okay to
table this until we get the information requested. On
roll call, Brown, Friesen, Bailey, Polson, Rogge, Bender, Kuzelka, and Davis
voted “yes.” Motion carried. Decker asked City Attorney David Bargen if
there had been a response from the FAA regarding the letter sent about the
tower near Ellis. Bargen said no response has been received. Decker wanted
to know if the power is officially off now to the tower. No one knew for
sure – the date for the power to the tower to be turned off was supposed to
be August 2, 2010. Bargen gave a brief background of this matter; this is a
situation that arose about three to four weeks ago. There is a
communications tower by Ellis that gets its power from the City of Fairbury
and there is an overdue power bill on the tower; the question was whether
the City could turn the power off – turn the lights off on the tower. Just
to make extra sure that everything is covered, the City has notified the
FAA, the FCC, and the Nebraska Department of Aeronautics to make sure every
one knows the power will be turned off on a certain date and time. That was
done in case a Notice to Airmen needs to be issued by the FAA or some other
authority, to let pilots on that flight path know; they would then have the
opportunity to check that and could then avoid that tower. The goal is for
the City to fulfill any possible duty to inform to avoid any accidents, even
though the duty and any liability falls on the tower owner. Decker stated
local pilots flying in the local area often do not check the notices on a
regular basis – she would hate for someone to hit this tower over the matter
of a small amount of money that is due which is approximately $181.00 for a
three month period. Decker also stated the tower is an abandoned tower; she
suggested maybe the tower could be taken down. They thought maybe someone
in Plymouth owns the land and someone in Ohio owns the tower. Decker stated
this matter has been going on for over two years. It was suggested to leave
the power on, since the amount owed is such a small amount, rather than have
someone get hurt if they would hit the tower. The exact location of the
tower is one mile north of Ellis – she said it is actually closer to
Beatrice than it is Fairbury but it is on the City of Fairbury’s power.
Rogge suggested sending a letter to the owner requesting they have the tower
razed. Decker stated the FCC issues the permit for the tower; although the
FAA has to approve the permit. Brown suggested leaving the power on, until
this matter is resolved, so no one gets hurt. Bender suggested we check
other avenues to see what can be done to resolve this matter instead of
having to turn the power off; maybe contacting the media would help to get
the word out about this matter.
Bender moved to
approve the request from the Homecoming Committee to have a parade and pep
rally, Friday, September 10, 2010 at 3:00 p.m; barricading the parade route
which would start at 4th and D Street going around the square and
have E Street blocked off from 4th to 5th Streets for
the pep rally; and have a bonfire on Thursday, September 9, 2010 behind the
Community Building. Motion seconded by Rogge. Bender stated this committee
had also done this last year and it was awesome; the kids were very well
mannered and did a great job. On roll call, Brown, Friesen, Bailey, Polson,
Rogge, Bender, Kuzelka, and Davis voted “yes.” Motion carried.
Brown moved to adopt
Resolution No. 785 to recognize that Resolution No. 779 and Resolution No.
780 are null and void, and to thereby rescind and repeal Resolution No. 779
and Resolution No. 780 in favor of reconsideration of approving the
obligation of funds from LB 840 Local Option Sales Tax Revenues under the
approved Economic Development Plan, and reconsideration of approving the
obligation of funds from Community Development Block Grant (CDBG) Program
Income from the Economic Development Loan Fund (EDLF) under the approved
Economic Development Plan, with changed recommendations from the Economic
Development Review Committee and Economic Development Loan Fund Review
Committee for the “Discs N Dat” project. Motion seconded by Bailey. On
roll call, Brown, Friesen, Bailey, Polson, Rogge, Bender, Kuzelka, and Davis
voted “yes.” Motion carried.
Mayor Ward read from
the agenda “Resolution No. 786 obligating LB840 Funds to “Discs N Dat” for a
“Performance Based Grant” in the amount of $10,000.00 as revised by changes
to specified conditions and to the recommendation by the Economic
Development Review Committee.” Friesen asked Bargen what needs to be done
with this resolution and the next resolution if they want to make it
possible for this to go back to the committees to revisit financial
documents. Bargen stated essentially Resolution No. 785 clears the table
and the committees start over from scratch like it was before the prior
resolutions were first passed. Resolutions 786 and 787 are new resolutions
approving the project with the new conditions that were recommended by the
review committees. Bargen stated that during the public hearings, there
were concerns raised on the record with aspects of this project that began
with the change in collateral, and that the City Council wants to have the
project go back before the review committees again to review documents. The
Council can vote to postpone considering Resolution No. 786 and Resolution
No. 787 pending further review by the committees. Friesen suggested the
committees review current financial statements, projected cash flows and how
they project those to increase, itemized expenses, and better description of
planned business growth and the reasons behind that. Mayor Ward stated the
Council will take items #2 and #3 under #F – Resolutions & Ordinances
together. Bender moved to postpone considering Resolution No. 786 and
Resolution No. 787 to have this go back to the review committees to review
current financial statements, projected cash flow, itemized expenses, and
better description of planned business growth. Motion seconded by Brown.
Chris and Nancy Amundson addressed the Council. Chris Amundson stated they
had given the financial plan to the committees; they submitted everything
that the Council is requesting with the plan they submitted which was
current June 1, 2010 and it is only August – the plan he submitted is
current nothing has changed. Chris stated the longer they have to wait the
longer before they can start doing the screen printing; they have already
lost some business since they do not have the equipment yet to offer this
service. Nancy Amundson stated nothing has changed in the business plan
except the collateral; the collateral was approved – they have gone before
the committees twice and Mr. Eberle had presented the plan to the
committees. Nancy stated they went through the REAP program and Mr. Eberle;
went through the process like they were suppose to do. Nancy stated this
will set them back another three to four weeks; the committee has reviewed
this and they have approved the project. Friesen stated he has visited
with some members of the committees and they stated they had not seen
everything. Nancy stated they had submitted everything to SENDD in its
entirety and thought Mr. Eberle had presented it to the committees; they
were not at the committee meetings so don’t know what was presented to the
committees. Nancy wanted to know why Friesen didn’t raise these questions
before now. Friesen stated he had relied on the information provided from
SENDD; but feels they need more information since the review committees
haven’t seen everything. Friesen stated when something like collateral
changes the committees need to look at that. Nancy also asked if any one
has been in their store – she asserted that no one has been in to see what
they offer. Nancy stated their business is a great asset to this community
and to the youth in this community; kids are in the park every day playing
disc golf. They’re trying to do something better not only for themselves
but also for the community and for the kids. They’re trying to bring
another type of industry into our town with the screen printing. Friesen
stated the Council is trying to be responsible for the public money that
they are to handle with the loans and the grants; he’s interested why the
collateral has changed and feels the project needs to be looked at more
closely. Chris stated they will provide what is needed. Rogge stated the
review committees and the Council need to get this done in a timely manner
with all the fall sports, etc. ready to start. On roll call, Brown,
Friesen, Bailey, Polson, Rogge, Bender, Kuzelka, and Davis voted “yes.”
Motion carried.
Within the City
Administrators report, Joseph Parker stated Senator Johanns will be at
Wally’s Sports Bar & Grill on August 9, 2010 from 5:30 p.m. – 6:30 p.m.
Parker stated Tim Montgomery from the Nebraska Games & Parks came down for
his final inspection of the softball complex and gave his approval; the City
should be receiving the final payment of $5,000.00 from the state later this
week. Brown questioned if the City still has a payment coming from the
Softball Association. Parker stated the Softball Association still owes the
City $18,100.00. Parker read part of a note he received from Teresa
Hansmire, FBLA adviser, “that Allison Skidmore won the Future Business
Leader competition at the 2010 FBLA National Leadership Conference. The
Future Business Leader event is the premier event in our organization, and
is a goal that only one member out of thousands in our national membership
attains each year. This is a first for any Fairbury FLBA member. Allie is
an exceptional young lady, and I am so very proud of her.” Parker stated he
had a mock interview with Allie in her preparation for this competition.
Rogge moved to adjourn
the meeting. Motion seconded by Polson. On roll call, Brown, Friesen,
Bailey, Polson, Rogge, Bender, Kuzelka, and Davis voted “yes.” Motion
carried. Meeting adjourned at 8:31 p.m.
Homer L. Ward, Mayor
ATTEST:
Sharyl Preston, City Clerk
