Lees moved, second by Hockett, to approve the Consent Agenda as follows. Voice vote. All ayes. Motion carried.

CITIZEN’S INQUIRIES: There were none.

Proposed Drawings, Specifications, Form of Contract, and Estimated Cost for Proposed Street Improvements – Leffler and Pennington Reconstruction – West Burlington, Iowa – 2001 – and the Taking of Bids Therefore – Mayor Trousil opened the Public Hearing on the Leffler and Pennington Reconstruction Project. He explained the project consists of reconstruction of block seven of Leffler Street, and one block of Pennington Street between Neva Place and Ruthella Drive. The project will also include storm sewer and driveway removal and replacement and other miscellaneous appurtenant work usually associated with a street improvement project. There were no comments from the Council or from those present. The Public Hearing was closed.

Resolution Approving Plans & Specifications, Form of Contract and Estimated Cost for the proposed Pennington and Leffler Street Reconstruction Project – Lees moved, second by Johnson, to approve a Resolution approving plans & specifications, form of contract and estimated cost for the proposed Pennington and Leffler Street Reconstruction Project. Roll call. Ayes: Hockett, Johnson and Lees. Nays: None. Motion carried.

Mayor Trousil announced there were three bids received. Shipley Construction bid $71,649.40; Heuer Construction from Muscatine bid $94,546.50 and Nelson Concrete bid $80,497.57. The engineers estimated cost for the project was $95,990. French Reneker Engineers Jerry Long and Don Jordison examined the bid documents for accuracy. They confirmed the bids were in accordance with requirements.

Resolution Awarding a Contract for the Pennington and Leffler Street Reconstruction Project – Hockett moved, second by Johnson, to approve a Resolution awarding the contract for the Pennington and Leffler Street Reconstruction Project to the low bidder Shipley Contracting in the amount of $71,649.40. Roll call. Ayes: Lees, Hockett and Johnson. Nays: None. Motion carried.

CONSIDER ACCEPTING HOUSING NEEDS ASSESSMENT – Dan Eberhard with Southeast Iowa Regional Planning Commission presented the Housing Needs Assessment to the Council for their approval. It was soon discovered two different documents had been distributed to the Council for their review. Mr. Eberhard said he will send the Council the correct copy of the documents.

Consider Resolution Accepting the Housing Needs Assessment – Johnson moved, second by Lees, to table the Resolution Accepting the Housing Needs Assessment until the next Council Meeting. Voice vote. All ayes. Motion carried.

UTILITIES – Meter Replacement Update – Mayor Trousil said Kelly Fry, Utility Billing Clerk, reported as of June 21^st Public Works has installed 203 new water meters and have appointments for installing 10 more. She said meters are currently being installed on Winter, East Glasgow, East Wheeler and Neva. The next targeted area is East Huston, Longmeadow, Brentwood and Brandli. The Meter Replacement Project is going well.

Public Works Director Fry is working to get power to the City Entrance sign on South Gear.

PUBLIC SAFETY – There was nothing to report.

FINANCE – Council Member Hockett said he would like the Council to hold a Work Session to discuss a Residential Tax Abatement Program. He said he would like the City to be involved with encouraging property owners to do home improvements by awarding them with tax abatement. Johnson argued that he did not feel it fair to give tax abatements to residential property and not commercial property. Mayor Trousil said since the entire City is in a TIF area he does not think property tax abatements are appropriate.

The Council agreed the matter should be discussed further in a Work Session. A Work Session date was set for July 16 to discuss a Residential Tax Abatement Program and the Mt. Pleasant Street and Gear Avenue Traffic Signal.

Discuss Shottenkirk Development Projects – Tony Baxter representing Shottenkirk was present at the Council Meeting to discuss two TIF agreements he would like the Council to consider. A commercial TIF agreement that centers around the placement of a new street heading east to west through the southern third of the Shottenkirk property and lining up with the Mall entrance. Necessary utilities (storm, water, and sanitary) are included and will be dedicated to the City. This commercial area would encompass the Shottenkirk dealership, the restaurant/bread shop and two proposed out lots to be sold for commercial development. The second proposed TIF agreement would encompass a second residential street along the west third of the property heading north and south. This street would border multi-family, condo and single-family residences. The cost for the City to obtain a portion on the northeast corner of the property will be added to the TIF agreement that would allow the City to straighten Gear Avenue in the future. Shottenkirk proposes that until the City needs the land they will maintain and use the area for display.

Shottenkirk plans to utilize TIF to repay the cost of installing the street and any land acquisition required for the development. They will upfront the cost of the project, utilizing the ability to use municipal tax free bonds, guarantee the TIF repayment within 15 years, and are aware that any utilities that are on private land will require City easement with the ability of the City to enter and repair the lines.

The cost of the commercial development will be approximately $1 million and the residential TIF will be approximately $670,000. This includes land acquisition at $6 per square foot for the commercial property and the northeast corner and $2 per square foot for the residential street land acquisition.

Council Member Johnson said he was outraged about $6 per square foot for the commercial property. He suggested $4 may be more in line. He said the City was helping Shottenkirk considerably and thought they should remember that when pricing the property. Baxter said Shottenkirk wants to work with the City to assure the completion of both projects.

The group agreed the City Administrator would contact the City’s Bonding Attorney to discuss the TIF Agreements and he would also continue to work with the Shottenkirk people.

Meeting with Planning & Zoning – Mayor Trousil said the Council needs to meet with the Planning & Zoning Commission to discuss the Comprehensive Plan and Fence Regulations. The Council agreed to attend the next P & Z Meeting which is scheduled for July 12 at 7 o’clock.

STREETS – Mandsager said Alliant has installed street lights on Agency on existing poles. He said he will have three more added.

Mandsager said he sent a letter to Leland Belding regarding the signals at the intersection of Agency and Gear, specifically the eastbound lanes on Agency next to GRMC. He said he outlined specific problems. He said the light pole that was shortened due to the utility lines does not light. He also said since the "stop" line was relocated back several feet, vehicles cannot make a right turn if there is a vehicle waiting to go straight through the signal. He said when the line was forward of its present location, there was enough concrete to allow for the right turn. Additional concrete must be laid to allow for proper access.

He also said the loops/detectors are now located in the wrong positions due to the relocation of the "stop" line. He told Belding the City is concerned about the original design of the intersection, the cost to install these loops and the need to maintain the proper flow of traffic as was explained at the beginning of the project. He suggested the loops be placed in their proper position and the additional loops be disconnected or the City be reimbursed for the loops on or past the "stop" line if Shive-Hattery can demonstrate why the original design should not be adhered to. He said the problem was a design error and asked them to correct it at their expense.

Mandsager also said the work in Longmeadow Park is progressing very well. He said Russell Brissey, working on a boy-scout project, installed 8 benches in the park over the weekend. He commended Brissey on the work completed.

SANITATION – Mandsager said he sent questionnaires to residents on Brushtown Road to use in applying for a Community Development Block Grant. This would be used to provide sanitary sewer to the newly annexed area.

Consider Approval of Board of Adjustment Minutes – Lees moved, second by Johnson, to approve minutes of the Zoning Board of Adjustment for June 19, 2001. The Board of Adjustment approved a variance request from Kim Danielson, 321 Summer Street, to place a six (6) foot high privacy fence three (3) feet from the property line on the south side of her house. Because the house is located on a corner lot and is considered to have two front yards, the zoning code requires any type of structure to be set back thirteen (13) feet from the property line. The Board of Adjustment also approved a variance for John Derby, 709 E. Mt. Pleasant, to allow 24 parking spaces in lieu of the 34 spaces required for a furniture store.

Consider Application for Fireworks Display – Hockett moved, second by Lees, to approve a Fireworks Display Permit for J & M Displays, Inc. for Southeastern Community College on July 28, 2001. Voice vote. All ayes. Motion carried.

Consider Resolution Establishing Water Rates – Lees moved, second by Johnson, to approve a Resolution stating water rates shall not increase by five percent (5) effective July 1 for water billed in September. The rates will remain the same as for Fiscal Year 2000. Roll call. Ayes: Lees, Johnson and Hockett. Nays: None. Motion carried. Hockett expressed his displeasure about the rates. He said he would have voted no for this Resolution if all of the Council Members had been present. Hockett said he wanted to decrease the minimum usage from 3000 to 1000 and increase rates for high users. He said if he voted no for this Resolution the rates would have increased five percent effective July 1.

Consider Resolution Establishing TIF Loan for Property Purchase – Johnson moved, second by Lees, to approve a Resolution establishing a TIF Loan for the property located at 121 Swan Street. Clerk Simonson explained the City needs to establish a loan for the property in order to use Tax Increment Financing for the repayment to the General Fund. The Resolution states the loan is in the amount of $90,000 and that it carries an interest rate of 7.25% per year. Roll call. Ayes: Lees, Johnson, Hockett. Nays: None. Motion carried.

Hockett said he did was against the purchase of the property but voted aye to approve the loan.

Consider Payment to French-Reneker Associates for Street Projects – Johnson moved, second by Lees, to approve payment to French-Reneker Associates for engineering services performed for two projects - $14,438.90 for the Glasgow and Wheeler Streets Project and $4,213.95 for the Pennington and Leffler Street Project. Voice vote. All ayes. Motion carried.

Consider Pay Request from KWS for Traffic Signal Improvements – Lees moved, second by Johnson, to approve Pay Application #8 to KWS in the amount of $19,627.47 for work completed on the Traffic Signal Improvements Project. Voice vote. All ayes. Motion carried.

Consider Hiring Seneca Environmental Services for Tier 3 Report for Water Plant Site – Administrator Mandsager recommended the City hire Seneca Environmental Services to proceed with a Tier 3 report for the Water Plant site. He said he believes we can get this project wrapped up in less time and more accurately than we have with past filings.

Johnson moved, second by Lees, to approve hiring Seneca Environmental Services to proceed with a Tier 3 report for the Water Plant site at a cost of $850. Voice vote. All ayes. Motion carried.

Consider Cable Franchise Agreement and Revised Ordinance – Johnson moved, second by Lees, to table the Cable Franchise Agreement and Revised Ordinance until the next Council Meeting. Voice vote. All ayes. Motion carried.

Consider Waiving Second and Third Consideration of an Ordinance – No action taken.

Consider Agreement to use Federal STP Funds for Traffic Control on Gear Avenue – Johnson moved, second by Hockett, to approve the Iowa Department of Transportation Agreement for Federal-Aid Surface Transportation Program (STP) Project for Traffic Control on Gear Avenue near the Mall. Voice vote. All ayes. Motion carried. The funds are in the amount of $56,000 with $14,000 local match.

Consider Hiring Architect for New City Hall – Hockett moved, second by Lees, to table hiring the Architect for the New City Hall until the next Council Meeting when all Members are expected to be present.

Consider Danielson Limited Partnership Agreement – This item was not discussed. Administrator Mandsager will set up a Special Council Meeting or Work Session to discuss the Extension of Division Street.

CITIZEN’S INQUIRIES: Steve Swafford, 622 North Gear Avenue, asked the Council to approve a fireworks permit for the 4^th of July. He said he has insurance coverage for personal & property damage in the amount of $250,000 while the City requires $1,000,000. He said this was cost prohibitive for them and asked the Council to waive that requirement.

Johnson moved, second by Hockett, to approve the fireworks permit for Steve Swafford, 622 North Gear Avenue. Voice vote. All ayes except Lees who abstained. Motion carried.

ADJOURN – There being no further business, the meeting was adjourned at 9:03 P.M. upon motion by Johnson and second by Hockett. Voice Vote. All ayes. Motioned Carried.

______________________________ ______________________________

Approved Terrie L. Simonson, City Clerk

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