ELY CITY COUNCIL

REGULAR MEETING

SEPTEMBER 12, 2005

Mayor Dale Stanek called the meeting to order at 7:00 p.m. Present: Kris Tharp, John Smith, Don Sturgeon, Kevin Meskimen and Mark Banowetz. Also present: Linn County Deputy Sheriff James Uher. Guests included: Sam and Shirley Shannon, Clint Fanguann, Lloyd Duffy, Jim Strother, Bob Ballantyne, Mary Ballantyne, Terry Smith, and Millicent Cozei.

Sturgeon, second by Banowetz, moved to strike business item #16 and approve the agenda as revised. Motion carried – 5 to 0.

Sturgeon, second by Smith, moved to approve the minutes of the following meetings: August 8, 2005 regular meeting, August 22, 2005 Special Meeting, August 22, 2005 Workshop Meeting with Plan and Zoning Commission, August 30, 2005 Special Meeting, all as presented. Motion carried – 5 to 0.

Clerk/Administrator Anderson presented a preliminary Treasurer’s Report August, 2005, noted this report is not fully reconciled and requested the Council take no action on the matter.

Banowetz, second by Tharp, moved to approve payment of the bills listed for September, 2005, except the invoice from A&G Asphalt for the Clerk/Administrator to negotiate final payment on that project. Motion carried - 5 to 0.

Communications:

The City Council received minutes of the August 17, 2005 Plan and Zoning Commission meeting.

The City Council received minutes of the April and August 2005, Historic Preservation Committee meetings.

Deputy James Uher of the Linn County Sheriff’s Department presented the monthly report from the Linn County Sheriff’s Department.

Citizen Requests.

Shirley Shannon stated she lives on Vavra Drive and the street sign was replaced several years ago with a sign that reads “Vavra Street”. Ms Shannon asked the City Council to have the street sign replaced to the correct street name of Vavra Drive. The Council directed Clerk-Administrator Anderson to resolve the situation.

Sam Shannon stated the streetlight at Vavra Drive blinks and asked for it to be repaired.

Public Hearing regarding Proposed Amendment #3 to the Ely Urban Renewal Plan. Tharp, second by Banowetz, moved to open a public hearing regarding Proposed Amendment #3 to the Ely Urban Renewal Plan. Motion carried – 5 to 0. Mayor Stanek opened the public hearing at 7:10 pm.

Lloyd Duffy asked if three readings are required for this ordinance to be adopted. Mayor Stanek stated three readings are required, but the Council may waive the second and third readings by motion and vote. Mr. Duffy asked how TIF proceeds are directed each year. Mayor Stanek stated the City Council determines how TIF proceeds will be used each year, and adjusted as needed to meet state and federal laws.

Terry Smith asked what was meant by “including the Community Center” as an allowed Urban Renewal project. Mayor Stanek stated the proposed amendment would allow TIF proceeds to be used to pay for the Community Center/City Hall renovation project. Mr. Smith asked where the funds for the Community Center/City Hall project are. Mayor Stanek stated TIF funds had been planned to be used for this project. Mr. Smith asked if the construction contract for this project was signed before all funds were in place to pay for it. Mayor Stanek stated the City had cash in hand for that project and the city inadvertently got steps out of proper order for the Urban Renewal/TIF process. Mr. Smith asked how the proposed amendment relates to what was presented to the Plan and Zoning Commission, which the P&Z rejected twice. Mayor Stanek replied this is the same amendment presented to the P&Z, and that the P&Z gives it’s recommendation to the City Council who acts to approve or deny the recommendation.

Duane Kunkel stated he understood TIF proceeds may also be directed to park development and asked if the Community Center/City Hall project would divert TIF proceeds from the parks development project. Mayor Stanek stated TIF proceeds may be used for park and other types of infrastructure.

Lloyd Duffy asked what the rationale is for spending the amount of money being spent on renovating a building without getting any additional workable space. Mayor Stanek stated he knows of a lot of people who would have been hard pressed to tear down the existing structure.

Tom Tjelmeland asked if the City is using 100% of it’s TIF capacity. Mayor Stanek stated the City is not using all of it’s TIF capacity at this time.

Terry Smith asked why so much money is being allocated to renovate a building that is in use when there is a major water project in the works. Mayor Stanek stated the water/sewer projects are enterprise projects that would not be paid for by tax money, but would be paid through utility revenues and other non-tax sources. Mr. Smith asked why TIF proceeds are not being used for other projects, like a water tower or the wastewater treatment plant upgrades. Mr. Stanek stated the city has a lot of needs that TIF proceeds could be used to pay for. Mr. Smith asked why the project is being rushed through. Mr. Stanek stated he does not believe the project is being rushed through, because it has been on the table for planning and discussion since May of 2004.

Bob Ballantyne stated a lot of the communication issues would be avoided if there were effective newspaper coverage for Ely, but he doesn’t know how to accomplish this. Kris Tharp stated she had met a lady at last year’s League of Cities convention who runs a local newsletter that could be an option for Ely. Mr. Ballantyne stated he understands how that would work, but is concerned with potential liability, etc. He stated the City could take advantage of electronic media; Ely has huge issues to face and needs public involvement. Tom Tjelmeland stated the Cedar Rapids Gazette would cover Ely more if they had a correspondent who lived in town, and that the community used to have a newsletter through the convenience store.

Sturgeon, second by Banowetz, moved to close the public hearing. Motion carried – 5 to 0. Mayor Stanek closed the public hearing at 7:23 pm, and declared the meeting to be in regular session.

Resolution #05-0912-14, Adopting Amendment #3 to the Ely Urban Renewal Plan. Resolution #05-0912-11 would approve Amendment #3 to the Ely Urban Renewal Plan by including the territory encompassing the Meadow Brook Addition to the Urban Renewal Area, and including the Community Center/City Hall Remodeling Project as an Urban Renewal Project. Banowetz, second by Sturgeon, moved to approve Resolution #05-0912-14.

Aye: Smith, Sturgeon, Banowetz

Nay: Tharp, Meskimen

Motion carried – 3 to 2.

Ordinance #181, Amending the Ely Urban Renewal Area. Anderson reported this ordinance would amend the boundaries of the Ely Urban Renewal Area/TIF District by adding the Meadow Brook Addition to the TIF District, and freeze the valuation for general property tax purposes to the January 1, 2005 valuation. The City of Ely would receive all property tax receipts from valuation that exceeds the “frozen” valuation to pay for approved TIF projects.

Banowetz, second by Sturgeon, moved to introduce for approval Ordinance #181, “Amending the Ely Urban Renewal Area” and place said ordinance on first reading.

Aye: Smith, Sturgeon, Banowetz, Tharp, Meskimen

Nay: None.

Motion carried – 5 to 0.

Smith, second by Banowetz, moved to waive the second and third readings of Ordinance #181, “Amending the Ely Urban Renewal Area”, pursuant to §380.3, Code of Iowa.

Aye: Smith, Sturgeon, Banowetz, Tharp, Meskimen

Nay: None.

Motion carried – 5 to 0.

Tharp, second by Banowetz, moved a resolution for final reading and adoption Ordinance #181 – “Amending the Ely, Iowa Urban Renewal Plan”.

Aye: Smith, Sturgeon, Banowetz, Tharp, Meskimen

Nay: None.

Motion carried – 5 to 0.

Resolution No. 05-0912-15, Scheduling Public Hearing re: Proposed Ordinance #182, Prohibiting Sex Offenders from Residing within 2,000 feet of a Public Park, Public Playground or Public Library. Anderson reported proposed Ordinance #182 was drafted to address public safety concerns related to the implementation of a state law restricting convicted sex offenders from living within 2,000 feet of a school or registered daycare facility. Discussion on this topic includes: adding protected zones around other facilities like school bus stops, and including schools and daycare facilities in the City Ordinance.

Banowetz, second by Sturgeon, moved to approve Resolution No. 05-1912-15.

Aye: Smith, Sturgeon, Banowetz, Tharp, Meskimen

Nay: None.

Motion carried – 5 to 0.

Resolution No. 05-0912-16, Accepting Change Order No. 1 with Septagon Construction – Community Center/City Hall Renovation Project. Anderson reported Change Order #1 under the City’s construction contract with Septagon Construction is for additional work that was not included in the original contract amount; including “gyp-crete” flooring and additional millwork. The proposed change order would result in an increase to the total contract amount of $10,523.00.

Banowetz, second by Sturgeon, moved to approve Resolution No. 05-0912-16.

Aye: Smith, Sturgeon, Banowetz

Nay: Tharp, Meskimen

Motion carried – 3 to 2.

Pay Request No. 1, Septagon Construction – Community Center/City Hall Renovation Project. Smith, second by Banowetz, moved to approve Pay Estimate No. 1 to Septagon Construction for the Community Center/City Hall Renovation project in the amount of $82,749.00.

Aye: Smith, Sturgeon, Banowetz

Nay: Tharp, Meskimen

Motion carried – 3 to 2.

Update on Community Center/City Hall Renovation Project. Anderson reported on the status of the Community Center/City Hall Renovation Project.

Lease of City Owned Land for Crop Production. Anderson reported Dan Thuerauf has an ongoing agreement to farm the new city parkland, though the terms of the agreement are somewhat unclear, and that the City Council may want to consider a more formal rental agreement for this land. The City Council discussed this matter, including the potential for partial development at this park in spring of 2006. It was the general consensus of the City Council to table this matter until February or March 2006.

Third Reading of Ordinance #180, An Ordinance to Amend Water and Sewer Rates. Meskimen, second by Tharp, moved to place Ordinance No. 180 on third reading by reference. Motion carried – 5 to 0.

Tharp, second by Smith, moved to place Ordinance No. 180, An Ordinance to Amend Water and Sewer Rates for consideration of final adoption, to take effect on water use for the October billing cycle.

Aye: Smith, Sturgeon, Banowetz, Tharp, Meskimen

Nay: None

Motion carried – 5 to 0.

Authorize Expenditure to Replace Transmission in 1982 Ford Dump Truck. Anderson reported the transmission on the 1982 Ford Dump Truck is beginning to fail and Street Superintendent Whitton had received the following estimates to replace with a rebuilt transmission:

Cedar Rapids Truck Center, Cedar Rapids IA $2,630.00

Sweet Auto Repair*, Ely Iowa $2,600.00

*Includes 3-year 36,000-mile warranty on parts and labor.

Tharp, second by Sturgeon, moved to accept the estimate from Sweet Auto Repair to replace the transmission in the 1982 Ford Dump Truck and authorize expenditure of $2,600.00 for said work. Motion carried – 5 to 0.

Job Descriptions. Anderson reported he had not made significant progress on this project and would report to the Council at the October meeting.

Resolution No. 05-0912-17, Scheduling Public Hearing re: Proposed Lease of Portion of Water Tower to Cingular Communication Services. Tharp, second by Meskimen, moved to approve Resolution No. 05-0912-17, Scheduling a Public Hearing re: Proposed Lease of a Portion of the Water Tower to Cingular Communication Services, the public hearing to be conducted at 7:00 pm Monday October 10, 2005.

Aye: Smith, Sturgeon, Banowetz, Tharp, Meskimen

Nay: None

Motion carried – 5 to 0.

Resolution No. 05-0912-18 – Bank Designation, Signatory Authority and Agreement. Smith, second by Meskimen, moved to approve Resolution No. 05-0912-15 – Bank Designation, Signatory Authority and Agreement.

Aye: Smith, Sturgeon, Banowetz, Tharp, Meskimen

Nay: None

Motion carried – 5 to 0.

Authorize Requesting Cost Estimate for Special Census. Anderson reported the US Census Bureau has specific standards that must be met for a special census to be accepted as official, including that the Census Bureau be directly involved in conducting and preparing a special census. He reported the Road Use Tax and other revenue programs are based on a city’s population. Anderson reported the Census Bureau requires a $200 fee to prepare a cost estimate for conducting a special census. Tharp, second by Meskimen, moved to authorize expending $200.00 to the US Census Bureau for a cost estimate to conduct a special census. Motion carried – 5 to 0.

Resolution #05-0912-19 – 2004-05 Road Use Tax Report. Sturgeon, second by Smith, moved to approve Resolution No. 05-0912-19, accepting the 2004-05 Road Use Tax Report.

Aye: Smith, Sturgeon, Banowetz, Tharp, Meskimen

Nay: None

Motion carried – 5 to 0.

Renew/Appoint Plan and Zoning Commission Member. Sturgeon, second by Banowetz, moved to appoint and renew the terms of the following for the Plan and Zoning Commission:

Term Expires

Chuck Stockdale (appoint to fill a vacancy) 8-31-2008

Chester (Chet) Hendrickson 8-31-2010

Bonnie Levien 8-31-2010

Motion carried – 5 to 0.

Discussion Items

None

Tharp, second by Banowetz, moved to adjourn. Motion carried – 5 to 0. The meeting adjourned at 8:15 pm.

Dale Stanek, Mayor

Attest:

Aaron Anderson, Clerk/Administrator