June 16, 2008

Wellman, Iowa 52356

The Wellman City Council met in regular session in the Council Chambers of the Wellman Municipal Building at 7:00pm. Mayor Ryan Miller presided with the City Attorney, City Administrator, City Clerk and following Council Members: Robert Goodrich, Karri Fisher, Marc Pennington, , and Steve Slaubaugh; absent: Matt Latcham. Also present were: Mary Coblentz from the news media and sixteen citizens.

The consent Agenda, including the agenda, minutes of the previous meeting, and the bill list, April financial statement, Chat & Chew cigarette sales permit renewal and Chat & Chew outdoor service event alcohol sales permit was presented. Goodrich asked to table Item 9 on the agenda concerning evaluations and a resolution to approve fiscal year 09 salaries because of an unsigned evaluation. On the bill list, Fisher voiced her concerns over an engineer’s invoice for the 3^rd Street watermain project as she is opposed to using this engineer. After further discussion Goodrich moved to approve the consent agenda, Slaubaugh seconded with three voting aye; Fisher, no; Latcham, absent. The claims approved for payment are as follows:

Anderson Ladd	1/2 skate rink floor contract	21558.00
Baker Paper Company	park trash can liners	65.15
Clayton Energy	May natural gas purchase	20,167.00
Cox Sanitation & Recycling	supplies	2,501.76
East Central Iowa Council of Govt	administration	1,678.25
Eastern Iowa Light and Power	street lighting,etc	80.40
Federation Bank	fica,medicare,fed wht	2,695.44
Farm Plan/Farmers Supply Sales	parts & repairs	526.05
Freeman Foods	supplies	503.76
Glenn Guengerich	repairs	188.80
H & H Foodservice	supplies	298.24
HACH Company	equipment	158.95
Hart-Frederick Consultants	engineering	6,205.31
Hawkins Inc	water chemical supplies	306.76
Hilltop Sign & Graphics	Goodwin Center signs,etc	482.25
Iowa City/Co Management Assn	annual membership	120.00
Iowa One Call	line locate calls	27.90
Kalonial Lawn Care	mulch	300.00
Menards	supplies,repairs	697.07
Mid-Prairie Community Schools	WATV/software purchase	762.30
Ryan Miller	reimbursements	57.18
Municipal Gas System	refund customer deposits	230.07
Municipal Water System	refund customer deposits	230.07
Payroll Expenses	transfers	12,750.78
Petty Cash Fund	supplies&reimbursements	25.65
Precision Structures	battery	60.00
Quill Corporation	office supplies	126.10
Raynor Doors	overhead door repair	243.00
Reggie Tire	fuel,repairs	482.30
Schwartz Construction	1/2 skate rink contract	8,450.00
Sewer Sinking Fund	transfers	50.00
Southeast Iowa Insurance Services	July 4th event coverage	1,010.00
Tebockhorst Trimmers	park mowing	1,992.00
Thrapp Electric	repairs	83.65
Trio Gas & Hardware	supplies	435.60
Various medical vendors	employee benefit	279.27
The Verdin Company	1/2 cost new clock	9,487.50
Wallace Extinguisher Service	test fire extinguishers	220.50
Water Sinking Fund	transfers	4,897.05
Wellman Advance	publications	177.71
Wellman Auto Supply	parts & repairs	22.58
Wellman Farm Center	supplies	67.06
Wellman Post Office	box rent	72.00
Wellman Volunteer Fire Dept	budgeted contribution/reimbr	4,836.65
Wellmark	employee insurance	1,737.33
TOTAL EXPENDITURES		107,347.44

The April financial statement includes revenues as follows:

General Fund	79,508.11
Special Tax Levy Funds	15,881.74
CDBG Sunrise Childcare Project	1,008.00
Street Assessment Fund	339.90
Local Option Sales Tax	9,638.31
Road Use Tax	8,564.07
Tax Credit Reimbursements	5,233.26
Tax Increment Financing Fund	57,832.46
Debt Service Fund	9,241.90
Library Services Funds	383.04
Parks & Recreation Funds	3,967.13
Cable Channel Fund	2,063.33
Senior Center Funds	3,897.03
Housing Improvement Fund	57.48
Capital Project Funds	14.08
Municipal Water Funds	16,351.38
Municipal Sewer Funds	14,026.49
Municipal Electric Fund	0.00
Municipal Gas Funds	120,427.90
Solid Waste Funds	5,495.57
TOTAL REVENUES	353,931.18

At 7:09pm Pennington moved to open the Public Hearing on the City entering into a loan agreement not to exceed $160,000 for infrastructure improvements. Goodrich seconded the motion and all voted aye. As there were no written or oral comments, Goodrich moved to close the hearing at 7:10pm, Pennington seconded and all voted aye.

At 7:11pm Goodrich moved to open the Public Hearing on plans, specifications, and form of contract for the 3^rd Street water main and road surface replacement project. There were no written or oral comments. Goodrich moved to close the public hearing at 7:12pm, Slaubaugh seconded and all voted aye. Five bids were received for the project. Engineer Justin Mead opened the bids as follows: R & R Excavating, Sigourney, IA, $82,987.00; Pilcher Enterprise, Ottumwa, IA, $106,741.20; Maxwell Construction, Iowa City, IA, $105,268.20; Lawson Construction, Kirksville, MO, $113,808.30; and Ultimate Edge Concrete, North Liberty, IA, $120,373.50. Ross recommended the bids be reviewed with action on them at the next regular Council meeting. Mead stated the bids are good for ninety days. The contract calls for completion date of October 1 with the contractor starting work within ten days after the order to proceed is signed.

Teresa Lampe reported on behalf of the Wellman Ball Association asking citizens to host visiting team members during the state Babe Ruth tournament. Fencing will have to be erected around the ball area for entrance to the tournament. The Council agreed that snow fencing could be installed.

Royce Buckwalter requested the City participate in storm water drainage improvements on 7^th Avenue and Circle Drive. Much of the runoff on 7^th Avenue flows into the Buckwalter and neighboring Davis properties. He presented a bid in the amount of $1,100, from Dreams Unlimited to install additional tiling that would eliminate some of the surface water runoff. Buckwalter asked that the City pay half of the cost for this work. After further discussion, Goodrich moved to approve the shared costs, Pennington seconded with three voting aye; Fisher, no. She noted she felt the City should look into this issue further before deciding on funding it.

Resolution No. 08-38 to authorize the City Attorney to sign off on a litigation issue involving the 9^th Avenue project was introduced and caused to be read. Kitchen explained a subcontractor was suing for unpaid work he claims to have completed. The contractor alleges the subcontractor did not complete the work properly and subsequently another sub had to be called in to complete the work. The contractor has decided to settle out of court to cut potential costs of taking the issue to court. As the City has filed claim to absolve Wellman of any involvement and costs, it is necessary to sign off on the settlement. Goodrich moved to adopt Resolution No. 08-38, Slaubaugh seconded and upon roll call the vote was four ayes; Latcham, absent. The Mayor affixed his signature.

Kim Stout arrived for the Wellman Ball Association and stressed the critical need for housing for the Babe Ruth ball players.

Resolution No. 08-39 to amend the contract with SG Construction regarding wording relative to Davis Bacon document numbers. Slaubaugh moved to adopt Resolution No. 08-39, Goodrich seconded and upon roll call there were four aye votes; Latcham, absent. The Mayor affixed his signature.

Resolution No. 08-40 to adopt fy09 salaries and wages was tabled upon motion by Goodrich, second by Fisher and all aye votes. Goodrich stated he wanted to discuss some of the evaluations before adopting salaries.

Resolution No. 08-41 to take additional action to enter into a loan agreement in an amount not to exceed $160,000 for infrastructure improvements was introduced and caused to be read. Goodrich moved to adopt Resolution No. 08-41, Fisher seconded and upon roll call there were four aye votes; Latcham, absent. The Mayor affixed his signature.

Ross updated the Council on the Parkside Center pre-construction meeting. Contractors are ready to go but because of the severe flooding north of the City, the excavator can not get to Wellman until waters recede. There will be little or no dirt removed from the construction site. Therefore, the planned project to elevate the north east corner of the park will not be done at this time.

Ross presented three options from banks to provide the City with the ability to accept credit/debit cards for utility payments from US Bank, Hills Bank, and Federation Bank. Slaubaugh abstained from the discussion due to being employed by US Bank. After review of the options, Fisher moved to accept the Hills Bank proposal, Goodrich seconded with three aye votes; Slaubaugh, abstained; Latcham, absent.

Jeff Heil was present from Ruan Securities to present their proposal for financing both the infrastructure loan agreement and the Parkside Center project. He reviewed their services and options for the City based on funds available and statutory debt limit. Heil reported interest rates are on the increase so it is important to get these rates locked in soon. The bonds would be first offered to local banks. After further discussion, Slaubaugh moved to combine both loans, the infrastructure loan and Parkside Activity Center loan with a letter of intent to lock in interest rates to Ruan Securities. Fisher seconded the motion and all voted aye. The bonding attorney will have the loan documents ready for the next meeting with funds being available by July 23.

Six RFPs have been received for engineering services in regard to the water situation. Ross asked to have approval to review and summarize the proposals as well as do reference checks. The Council can then discuss them at the next meeting and select two or three to interview at a special meeting later in that week.

The Council authorized the City Administrator to work with Alliant Energy in preparing a new franchise agreement. The old agreement expired in 2004 and the Iowa Utilities Board has denied Wellman’s request to purchase the system.

Stuart Yoder was present to discuss the nuisance abatement request in regard to mowing tall grass and weeds at the Miller pond which he now owns. Yoder requested he be allowed to place some horses or sheep in the area to keep the grass down as it is difficult to mow. Several neighboring citizens voiced their concerns of bringing animals into the neighborhood and stated some of them had kept that area mowed. Yoder briefly reviewed his plans for the property. After further discussion, the Council concurred that the abatement needed to be completed by mowing and not by allowing animals on the property.

In regards to a nuisance abatement notice for property at 10^th Avenue and 2^nd Street, there has been no communication from the owner. Council authorized Ross to proceed with abatement.

During the Public Forum, Teresa Lampe asked permission to use the old senior center space to collect clothing, diapers and food items for flood victims in Iowa City and Cedar Rapids. The Council endorsed this project. Lampe reported because of the flooding, some of the summer rec activities have had to be cancelled or moved to other venues. She is concerned of additional costs and will look for alternate activities that are cost effective.

In general administrative discussion, it was reported the hydrant at Wishard Park has been opened. City workers will lock it.

Several fire hydrants have the tops missing. White stated when the hydrants were flushed some of the tops broke and it was safer to remove them than to have them loose on top of the base of the hydrant.

An update on the weather siren informed the council that the equipment is here and waiting on Fesslers to schedule the install.

With no further business Fisher moved for adjournment at 8:59pm, Goodrich seconded and all voted aye. The next regular City Council meeting will be Monday, July 7, 2008, 7:00pm in the Council Chambers of the Wellman Municipal Building.

Minutes transcribed by the City Clerk subject to Council approval.