MINUTES CITY COUNCIL MEETING
Hawarden Public Library
Monday, May 5, 2003 at 7:00 PM

The Council Meeting was called to order at 7:04 p.m.

Present: Mayor Porter; Council Members: Harvey, Cauwels, Lubkeman, Nohava, Woodley.

Absent: None

Staff Present: Craig Coffey, City Administrator; Tom Kane, Public Works Director; Chris Myres, Telecommunications Director; Jim Pickner, City Attorney; Sharole Rens, Finance Officer; Mike DeBruin, Police Chief.

Standard Agenda Items

Televised

Item 1a. Approval of April 21, 2003 Minutes. Moved by Cauwels/Lubkeman to approve the Minutes of April 21, 2003. Motion carried unanimously.

Item 1b. Approval of Claims for Payment. Moved by Woodley/Cauwels to approve the Schedule of Claims for Payment. Motion carried unanimously.

Item 1c. Open Business From the Community (limited to a maximum of 5 minutes per item). There was no open business from the community.

Item 2a. Mayor Report. Mayor Porter read a proclamation declaring the week of May 18-24 Emergency Medical Services Week and encouraged all of the community to thank the local volunteers who serve. He also read a thank you from the family of Ivan Noe and also thanked the City employees for all the hard work during City Wide Clean Up. Mayor Porter acknowledged Sharole Rens on receiving her certification from the International Institute of Municipal Clerks and being awarded the designation of Certified Municipal Clerk.

Other Agenda Items

Item 2b. Staff Reports/Discussion.

• Mr. Coffey reported that the Union Negotiation Meeting has been set for May 7th at 4:30 p.m. and demolition on the downtown fire buildings is scheduled for May 13th. He also gave development updates on the lease with Pamida and the Heartland Motors Project. Location issues are still being worked out with the HSG Plant.
• Mr. Coffey discussed pending legislation cutting cities and additional changes in the special session that could affect TIF. He asked the Council to contact legislators to encourage more positive changes in TIF and to implement policy changes gradually to avoid financial instability.
• Tom Kane, Public Works Director, attended a meeting with Mid-America Energy in Fairmont, Minnesota and stated they are proposing a 29% gas transmission cost increase. He said the gas association plans to fight to lower this proposed increase.

Mayor Porter left the meeting at 7:18 p.m. for an emergency. Mayor Pro-Tem, Cauwels conducted the remainder of the meeting.

Item 3. Public Hearing on a Loan Agreement for $110,000 of General Obligation Refunding Bonds and Sale of $1,060,000 General Obligation Corporate Purpose and Refunding Bonds. Mayor Pro-Tem, Cauwels opened the Public Hearing at 7:20 p.m. There were no oral or written comments. He declared the hearing closed at 7:22 p.m.

Item 4. Resolution 2003-29, a Resolution Combining and Approving a Single Loan Agreement and Providing for the Sale and Issuance of $1,060,000 General Obligation Corporate Purpose and Refunding Bonds and for the Levy of Taxes to Pay the Same and Calling a Portion of the City’s General Obligation Swimming Pool Bonds, Dated September 1, 1992, for Prior Redemption. Mr. Tim Oswald from Piper Jaffray was in attendance to go over the bids. The debt issued will be used for the Community Center Project and $110,000 towards the early prepayment of the Swimming Pool Debt. It was mentioned that the City received an overall interest rate of 3.5% with a range of 2% to 4% over the life of the 15 year note. Moved by Woodley/Lubkeman to approve Resolution 2003-29 as amended to read the listings of low bidders, interest rates and annual payments. Aye: Harvey, Cauwels, Lubkeman, Nohava, Woodley. Nay: None. Motion carried unanimously.

Item 5. Public Hearing on and Resolution 2003-30, Approving of Amendment of the Current FY 2002-03 City Budget. The Mayor Pro Tem opened the Public Hearing at 7:30 p.m. Mr. Coffey presented the budget amendment. There were no written or oral comments submitted. The Public Hearing closed at 7:35 p.m. Moved by Woodley/Lubkeman to approve Resolution 2003-30, Approving the Current FY 2002-03 City Budget. Aye: Harvey, Cauwels, Lubkeman, Nohava, Woodley. Nay: None. Motion carried unanimously.

Item 6. Public Hearing on the Disposition of Real Property and Resolution 2003-31, Approving the Final Disposition of the Property (Property in Calliope). This property is located on the NE corner of 19th Street and Avenue D and was received as part of a demolition of a structure. It is being proposed to trade this for another property of equal or greater value. The Mayor Pro-Tem opened the Public Hearing at 7:36 p.m. There were no oral or written comments submitted. The Public Hearing closed at 7:37 p.m. Moved by Nohava/Cauwels to approve Resolution 2003-31, Approving the Final Disposition of the Property. Aye: Harvey, Cauwels, Lubkeman, Nohava, Woodley. Nay: None. Motion carried unanimously.

Item 7. Public Hearing on the Disposition of Real Property and Resolution 2003-32, Approving the Final Disposition of the Property (4 acres of Industrial Park Property). This property is proposed to be sold to HAPP and will ultimately be donated to Heartland Motors in exchange for the construction of a new facility. Mayor Pro-Tem Cauwels opened the Public Hearing at 7:38 p.m. There were no oral or written comments submitted. The Public Hearing Closed at 7:39 p.m. Moved by Nohava/Cauwels to approve Resolution 2003-32, Approving the Final Disposition of the Property. Aye: Harvey, Cauwels, Lubkeman, Nohava, Woodley. Nay: None. Motion carried unanimously.

Item 8. Resolution 2003-27, a Resolution Proposing to Dispose of Real Property and Publishing Notice of a Public Hearing on the Property Sale Proposal (Old City Hall). This will allow the sale of the property to Old City Hall for redevelopment into 6 upscale apartments. Moved by Woodley/Lubkeman to approve Resolution 2003-27. Aye: Woodley, Lubkeman. Abstain: Nohava. Nay: Harvey, Cauwels. Motion failed.

NOTE: A conflict of interest statement was presented from the City Attorney and Councilman, Jeff Nohava in regard to Items 8, 9 and 10.

Item 9. Resolution 2003-25, a Resolution Establishing Tax Increment Revenue Fund and Authorizing Loan to That Fund. This will provide the funding mechanism for the economic grant in Resolution 2003-26. Moved by Harvey/Cauwels to table this item. Aye: Harvey, Cauwels, Lubkeman, Woodley. Abstain: Nohava. Nay: None. Motion carried.

Item 10. Resolution 2003-26, a Resolution Authorizing an Economic Development Grant to the Hawarden Area Partnership for Progress for the Purpose of Providing an Economic Grant for the Redevelopment/Reconstruction of the Old City Hall Into Six Upscale Apartments. This will provide the grant to HAPP for the issuance of a future economic grant. Moved by Cauwels/Harvey to table this item Aye: Harvey, Cauwels, Lubkeman. Abstain: Nohava. Nay: Woodley. Motion carried.

Item 11. Approval of the Replat of a Portion of Johnson’s Addition to McKee’s Addition. The petition on the replat of a portion of Johnson’s Addition to McKee’s Addition was presented. The original plat was very old and had been changed over the years. The newly submitted replat will correct the problems listed in the petition and will allow the street and utilities to be properly laid out. Moved by Woodley/Nohava to approve the replat of a portion of Johnson’s Addition to McKee’s Addition per the petition received and Iowa Code 354.25. Motion carried unanimously.

Item 12. Resolution 2003-33, a Resolution Accepting the Dedication of Real Property (Bonderson’s Downtown Fire Property). Acceptance of this property will allow the City to control and redevelop the property downtown. Mr. Coffey explained the downside if nothing redevelops on the site. Moved by Woodley/Lubkeman to approve Resolution 2003-33, Accepting the Dedication of Real Property (Bonderson’s Fire Property). Aye: Harvey, Cauwels, Lubkeman, Nohava, Woodley. Nay: None. Motion carried unanimously.

Item 13. Approval to Drop IUB Case Against Hickory Tech. If necessary, Closed Session discussion of Telecommunication Issues under Iowa Code Section 388.9(1) (Proprietary). Moved by Harvey/Woodley to drop the current IUB action against Hickory Tech and accept the plan that is currently on file with the IUB. Motion carried unanimously.

Item 14. Discussion of Potential FY 2003-04 Budget Cuts. Mr. Coffey explained some of the potential cuts recently adopted by the legislature and proposed a combination of cuts, fee increases, transfers and decreases in services. Council advised staff to review the proposed changes and look at other alternatives to save the City money. Smaller cuts to the library were requested and reductions in contributions for equipment purchases were also mentioned.

Moved by Woodley/Lubkeman to adjourn. Motion carried unanimously. The Council Meeting adjourned at 8:43 p.m.

____________________________
Mike Cauwels, Mayor Pro-Tem

ATTEST:

________________________
Craig Coffey, City Administrator