Regular Council Meeting July 14, 2003 – 5:30 P.M.
The West Burlington City Council met in Regular Session at 118 W. Wheeler Street with Mayor Trousil presiding. Council Members Johnson, Hockett, Pilger, Lees and Crowner were present. City Administrator Mandsager, Public Works Director Fry, Building Inspector Hoy, Police Chief Oblein and Fire Chief Astfalk were also present. Lees moved, second by Pilger, to approve the Agenda with the addition of Seal Coat Project to Committee Reports. Voice vote. All ayes. Motion carried.Lees moved, second by Pilger, to approve the Consent Agenda as presented. Voice vote. All Ayes. Motion carried.
A. Minutes of Regular Council Meeting – June 23, 2003
B. Minutes Special Council Meeting – June 30, 2003
C. Payment to Ideal Ready Mix – Concrete - $1,122.
D. Payment to Mayflower Transit – Moving Expense Oblein - $4,391.91
E. Payment to Burlington Municipal Waterworks – June Water - $16,795.77
F. Payment Quad City Water Treatment – Sewer Tests - $1,044.
G. Payment to City of Burlington – County Wide Communications - $2,927.67
H. Resignation of Dan Alexander from the Volunteer Fire Department
I. Adding Michael Jochims to the Volunteer Fire Department
J. Wastewater Workshop for Schurk and Mesecher
K. Cigarette Permits for Murphy Oil USA
L. Resignation of Police Officer – Jesse Logan
M. Payment of Claims as Presented
PUBLIC HEARINGS:
Tif Revenue Bond – COBO International – Presentation by Pat Callahan – Mayor Trousil explained the City entered into a Development Agreement with COBO International in January, 2003. COBO International has agreed to construct a 30,000 square foot industrial facility in the City’s Business Park and to hire 43 full time employees. In recognition of the COBO commitment to the local economy, the City of West Burlington has agreed to provide them an economic development grant in the amount of $278,000.
COBO International and the City have also signed a minimum assessment agreement that requires COBO International to construct improvements with a minimum value of $1,300,000 effective January 1, 2004 and continuing through January 1, 2014. This minimum assessment agreement is expected to generate an additional $39,000 in Tax Increment Financing revenues. This additional $39,000 in TIF revenues will then be used to fund the annual principal and interest payments for the TIF Revenue Bonds that have been proposed to fund the economic development grant and related costs.
Pat Callahan, representing Ruan Securities Corporation, explained this TIF Revenue Bond issue in the amount of $320,000 includes capitalized interest costs for the first two fiscal years, legal fees, and all fiscal fees. The average annual payments for the fiscal years from July 1, 2005 to June 30, 2015 shall be $39,235. Mr. Callahan said this TIF Revenue Bond issue has the unusual distinction of being a taxable security under federal regulations and a tax-exempt security under state laws. Therefore, the debt payment schedule and interest rates have been prepared with the understanding that the interest earned on these bonds will be subject to federal income tax, but will be exempt from state income tax.
Mr. Callahan said since the agreements with COBO International requires the Company to comply with certain provisions, such as spending $1,300,000 in building improvements and employing 43 full time workers, the IRS rules do not allow the interest earned on this issue to be federal tax-exempt. He said if the City wants to issue TIF Bonds that have interest rates that are exempt from federal income tax, then the City can either amend the agreements and delete the requirements that have been placed on the company or require COBO to spend the $278,000 on some public improvement, such as a city street, sanitary sewer line or waterline. The Council agreed neither of these options was acceptable.
There were no further comments or questions about the TIF Revenue Bond issuance. Mayor Trousil closed the Public Hearing.
Resolution Making Determination to Issue Not to Exceed $320,000 Urban Renewal Tax Increment Revenue Bonds – Lees moved, second by Crowner, to approve the Resolution making the determination to issue not to exceed $320,000 Urban Renewal Tax Increment Revenue Bonds for COBO International and authorizing the Mayor to sign the Letter of Intent with Ruan Securities. Roll call. Ayes: Lees, Pilger, Hockett, Crowner and Johnson. Nays: None. Motion carried.
Amending the Official Zoning Code – Mayor Trousil opened the Public Hearing on the Ordinance amending the Zoning Code concerning street and sidewalk requirements in R-2 Zoning District. He explained Section 165.06(6) C. states Sealcoat is an approved method of street construction in R-2 zoning districts. Building Inspector Hoy and the Zoning Commission reviewed this section of the Code and determined street and sidewalk regulations are already covered in the subdivision ordinance. Therefore, it is not necessary to have the requirements in the zoning code as well. The Ordinance proposed deletes Section 165.06(7) from the Zoning Code.
Council Member Hockett asked for clarification that this Ordinance was merely to eliminate a duplication between the zoning code and the subdivision code. Administrator Mandsager said that this was true. There were no other comments from those present. Mayor Trousil closed the Public Hearing.
Consider First Reading of Ordinance Amending the Zoning Code – Street and Sidewalk Requirements – Lees moved, second by Pilger, to approve the first reading of an ordinance amending the Zoning Code concerning street and sidewalk requirements. Roll call. Ayes: Hockett, Crowner, Lees, Johnson and Pilger. Nays: None. Motion carried.
OATH OF OFFICE – Police Reserves – Mayor Trousil administered the Oath of Office to Police Reserve Officers Nathan Moore, Jeannett Waterman and Natalie Gillett.
CITIZEN’S INQUIRIES:
George Marzeck, Jr. 611 W. Van Weiss, said he had two concerns. He wanted to know why the letter he presented to the City Clerk concerning allegation of Open Meeting Violation was not placed on the last Council Agenda and presented to the media. Clerk Simonson explained correspondence covered under Citizen’s Inquiries was not listed as a specific item on the Agenda and did not therefore become a part of the ‘Meeting Packet’ that is made available to the media. She did say if anyone requested a copy of any correspondence it would be provided.
Mr. Marzeck also said he wanted to express his displeasure with profanity used by Mayor Trousil at a past meeting. He said this was directed at his father and it should not happen. He said it was a violation of State Code.
Tom Martin, 507 Ballard, said he has asked on many occasions why campers are allowed to park over the sidewalk on Broadway Street. He said it continues to happen.
Sandra Scott, 412 N. Gear Avenue, asked for speed limit signs to be placed on Brushtown Lane which runs beside of her property. She said vehicles travel this road frequently and they need to slow down before they hurt someone. Administrator Mandsager said the road is the same size as an alley and should post a speed limit of 10 miles per hour. He will see that signs are ordered and placed there.
COMMITTEE REPORTS:
STREETS – Public Works Director presented a proposal for the Seal Coat Project for this summer. He proposed approximately 14 blocks of streets and alleys at various locations. He said earlier this year Municipal Streets was approved for the project. The cost for the project is approximately $11,000.
Hockett moved, second by Crowner, to approve contracting with Municipal Streets to perform the seal coat project at a cost of approximately $11,000. Voice vote. All ayes. Motion carried.
Council Member Pilger said he would like to see the contractor complete the street project on Glasgow Street. He said it would only take a couple days to complete and it needs to be done. Administrator Mandsager said they contractor is within his time frame but he would encourage them to get the project completed. Pilger said the stop signs at Swan Street was removed for the project and a temporary one needs to be placed there until the permanent one can be reinstalled.
Council Member Lees said there needs to be sand and/or gravel placed on Longmeadow and Swan Streets where the Longmeadow Street Project is in progress. The Sealcoat is bubbling up and making a mess. She also said there is a pothole in the 600 or 700 Block of Broadway that needs repair.
The Council discussed the Trail Project on Gear Avenue that the City was awarded a grant for. The trail is a 10 foot cement trail that is proposed to run from Gear to the hospital. Administrator Mandsager said if the Council is interested in completing the project he will bring an Engineering Services Agreement to a near Council Meeting.
Administrator Mandsager said he did a walk through on the Park West Estates Housing Subdivision this week. He said there were a couple imperfections that he noted but nothing of substance. He said a contractor building a home there broke the sidewalk which he will have to repair but overall it looks good.
Administrator Mandsager also said Hwy 406 is now under control of the City and County. He will be working on an agreement with the County specifying who does what on the highway.
SANITATION – There was nothing to discuss.
UTILITIES – There was nothing to discuss.
PUBLIC SAFETY – Fire Chief Astfalk said he is getting bids for equipment covered by the Fire Grant. He will be bringing that to the Council for approval.
Police Chief Oblein reported his department has filed for the Iowa governor’s Traffic Safety Bureau 2003/2004 sTEP Program grant. If accepted the Police Department could receive $4,000 to pay overtime wages to officers to work traffic enforcement during six periods of time designated in the grant.
Chief Oblein also stated Police Officer Covert will graduate from the Police Academy on Friday.
FINANCE – There was nothing to report.
NEW BUSINESS:
Consider Ordinance on First Reading – Establishing Chapter 14 Commercial Tax Abatement – Administrator Mandsager presented a Community Development City-Wide Urban Revitalization Plan for the City of West Burlington. He said the area is all land within the Corporate Limits of the City as of the date of adoption of plan. The purpose of the plan is to outline procedures whereby the area can be revitalized and the potential for development be enhanced.
Improvements eligible for tax abatement include rehabilitation, additions to existing structures and new construction on vacant land or land with existing structures when constructed in accordance with an approved building permit. The partial exemption would be for a period of ten years, beginning with 80% the first year and decreasing to 20% in the ninth and tenth years.
Council Member Hockett said he believes the plan is a good one and he want to vote for it however, he can’t because it does not include residential. He has wanted a tax abatement plan for residential for some time. He said residential development would provide jobs for plumbers, electricians, roofers etc.
Mandsager said he does not have a problem with a tax abatement for residential but a commercial developer is the driving force now. He said residential will require some additional work because we have to determine its best use. For example, what to do with current projects involved with rebate plans. He said the ordinance can be amended at any time to include residential.
Council Member Crowner said he is in favor of the plan. He is not fond of the descending percentage scale. That could use some tweaking, for instance an ascending scale. He also said the plan provides for commercial development to come to town when they may not build without an abatement. He said it would create jobs.
Council Member Johnson said he has a problem with retail; not so much with commercial. He feels the City has a tool in place to provide incentives, that being TIF. He is reluctant to approve tax abatement.
Council Member Lees said she had wanted a plan that included commercial and industrial. She said the City needs to look at other benefits because TIF will not always be here as we know it today. She said it is amazing what TIF has helped happen in the last 12 years. She believes the plan is a good one.
Lees moved, second by Crowner, to approve the first reading of an Ordinance establishing Chapter 14 of the Municipal Code providing for Commercial Tax Abatement. Roll call. Ayes: Lees, Pilger and Crowner. Nays: Hockett and Johnson.
Consider Resolution Waiving Second and Third Reading of an Ordinance – Lees moved, second by Crowner, to approve a Resolution waiving the second and third reading of an Ordinance concerning Commercial Tax Abatement. Roll call. Ayes: Lees, Pilger and Crowner. Nays: Hockett and Johnson. Motion failed.
Consider Resolution Approving a Commercial Tax Abatement Application – Spectra Group, Inc. – No action was taken.
Consider Contract with Walker & Egerton for Fiscal Year 2003 Audit – Crowner moved, second by Pilger, to approve contracting with Walker & Egerton to perform the Fiscal Year 2003 Audit. The fee to perform this work will be between $5,000 and $5,500. Voice vote. All ayes. Motion carried.
Consider Payment to KJWW Engineering Consultants – City Hall Project – Pilger moved, second by Johnson, to approve payment in the amount of $13,778.98 to KJWW for technology engineering services for the New City Hall. Voice vote. All ayes. Motion carried.
Consider Payment to Shipley Contracting – Glasgow and Longmeadow Street Project – Hockett moved, second by Johnson, to approve payment to Shipley Contracting in the amount of $142,275.35 to Shipley Contracting for work completed on the Glasgow and Longmeadow Street Project. Voice vote. All ayes. Motion carried.
Consider Payment to Dorsey & Whitney – Costs Associated with General Obligation Notes and Tax Increment Revenue Bonds – Hockett moved, second by Crowner, to approve payment in the amount of 4,678.49 to Dorsey & Whitney in connection with the issuance of General Obligation Corporate Purpose and Refunding Notes. Voice vote. All ayes. Motion carried.
Crowner moved, second by Johnson, to approve payment in the amount of $2,786.45 to Dorsey & Whitney in connection with the issuance of Urban Renewal Tax Increment Revenue Bonds for the City Hall Project. Voice vote. All ayes except Hockett who voted nay. Motion carried.
Consider Payment to Snyder & Associates – Engineering Services – Johnson moved, second by Pilger,
to approve payment in the amount of $2,717.50 to Snyder & Associates for Engineering Services in connection with general engineering and the Mt. Pleasant Street and South Gear Avenue Traffic Signal Project. Voice vote. All ayes. Motion carried.
Consider Jurisdictional Agreement with City of Middletown – Administrator Mandsager presented an agreement with the City of Middletown concerning the 20mile area between our two cities. He said the form and content of the agreement has not changed and has been in place since 1982 and just expired in 2002. He said the City of Middletown updated and approved the contract and forwarded it to the City for consideration and action.
Crowner moved, second by Pilger, to approve the jurisdictional agreement with the City of Middletown concerning the unincorporated area between the two cities. Voice vote. All Ayes except Hockett who voted nay. Hockett said the matter of the unincorporated area is already covered under Iowa Code and he feels the agreement is redundant. Motion carried.
OLD BUSINESS:
There was no Old Business to discuss.
MAYOR’S INQUIRIES:
ADJOURN – There being no further business, the meeting adjourned at 7:40 p.m. upon motion by Lees, and second by Pilger. Voice Vote: All Ayes. Motion carried.
Approved Terrie L. Simonson, City Clerk