December 18

CITY OF HIAWATHA

CITY COMMISSION MINUTES

MONDAY, DECEMBER 18, 2006

5:35 P.M.

HIAWATHA CITY HALL

723 OREGON ST.

1.      Pledge of Allegiance/ Call to Order

The Hiawatha City Commission met in regular session at 5:35 p.m. on Monday, December 18, 2006, at City Hall with Mayor Gernon, Commissioner Shamburg, Commissioner Gamble, Commissioner Schmitt, and Commissioner Collins present.

2.      Approval of minutes of the December 11, 2006 City Commission meeting.

Mayor Gernon made a correction to page 4, to add the Chamber of Commerce to the last paragraph.

Commissioner Schmitt made a motion, seconded by Commissioner Shamburg, to approve the minutes of the December 11, 2006 City Commission meeting with the corrections as noted. Motion carried. 5 ayes.

3.      Presentation of petitions, public comments, memorials.

Representative-elect Steve Lukert spoke to the Commission. He said that the legislative session will start in three weeks. He expressed his desire to be able to work with the local government. He said that he will attempt to attend at least two Hiawatha Commission meetings during the year. He urged the Commission to call him if they have any questions or concerns. He said that he would send us his new address and phone number. He said that he is looking forward to working with the Hiawatha Commission.

Mayor Gernon introduced Ted Starr with the Streetscape Committee. Mr. Starr said that they have been soliciting donations for the planters. The City’s portion of each planter is now $400. He said that they would like to have the funds to pay for the trees, the marble plaques, and a plaque indicating who the donor was. Mr. Starr gave checks to Mayor Gernon in the amount of $13,500 for ten planters. He has four more spoken for, and five left to be adopted.

Mayor Gernon expressed his appreciation for the work the committee had done on the project.

4.      Public Hearing – 2006 Budget Amendments.

Mayor Gernon opened the public hearing on the 2006 Budget Amendments at 5:45 p.m.

Administrator Ladner explained that the main reason for the amendments was to set up budget authority for the new fund accounts which had been established to track current project expenses more efficiently.

Mayor Gernon asked for any comments. There being none, he closed the hearing at 5:47 p.m.

Old Business

5.      Consider Approval of Final Payment to A.H.R.S. Construction for the Wastewater Project.

Administrator Ladner explained that the City had received a letter from Dan Fischer of the Rural Development Association, clarifying that all loan funds for the project were expended by December 20, 2005, and that all remaining funds that are not used on this project including for the payment of the retainage must be returned to Rural Development.

Commissioner Collins made a motion, seconded by Commissioner Schmitt, to approve final payment to A.H.R.S. for phase I and phase II of the Waste Water Treatment Plant in the amount of $50,000 to be paid out of grant funds from Rural Development Association. Motion carried. 5 ayes.

New Business

6.      Approve Change to the Uniforms Benefit for city Employees to Bring City Policies in Line with IRS Regulations

Administrator Ladner explained that the City currently provides each employee that is required to wear a uniform with an account in the amount of $400 per year for the purchase of uniform items. Of these items some qualify as non-excluded items, including jeans, jackets, and gloves. As these items can be worn for general use, the purchase of these items is considered a taxable benefit to the employees.

It was her recommendation that the Commission increase the uniform allowance for 2007 to $450 per year to be paid in monthly installments as wages in the last pay period of the month. The increase will allow for employees to absorb the cost of sales tax and income taxes that will be the responsibility of the employee while providing them with the funds necessary to maintain their required uniforms.

Commissioner Schmitt made a motion, seconded by Commissioner Shamburg, to approve the change to the uniform benefit for City employees to bring the City policies in line with IRS regulations and increase the allowance to $450 per year to be paid in monthly installments as wages in the last pay period of the month, with the increase allowing for the absorption of sales tax and income taxes by the employees. Motion carried. 3 ayes, 2 nays. Commissioner Collins and Commissioner Gamble voted nay.

7.      Approval to Take Steps to Remove the Hansbury Springs Well Property from the CRP Program.

Administrator Ladner explained that in October 2006 it was brought to the Commission that due to the lottery system drawing and the City’s location in that lottery it is unlikely that the City will in fact receive any payments from the CRP program for the Hansbury Springs well property. After discussions with the City Attorney and FSA it has been recommended that the City take steps to remove this property from the program. Doing this will allow the City to include the property when it releases sealed bids for the cash rent of City properties for the 2007 through 2010 growing seasons. In discussions with the farmer who farms that property, there is an estimated $75.00 per acre income possible per year for the 17 producible acres in the 24-acre plot.

If the City chooses to move forward with removing the property from the program, we will be required to make a one-time payment of $465.00.

The Commission agreed that it is not making us any money the way it is.

Commissioner Collins made a motion, seconded by Commissioner Gamble, to approve and authorize Dave Grimm to complete and sign the necessary paperwork to terminate the CRP contract for the Hansbury Springs property and make a one-time payment of $465.00 to terminate the agreement. Motion carried. 5 ayes.

8.      Resolution Authorizing Dave Grimm as the Designated Signatory for the 2007 Direct and Counter Cyclical FSA Programs.

The City has received a request from the FSA for a formal resolution showing the positions within the entity that have signature authority or a resolution naming the individuals who have signature authority for the entity concerning the completion and signing of documents for the City.

In the past the Commission has, by motion, appointed Dave Grimm to handle these items for the City. As this has been an acceptable resolution to this issue in the past and Dave continues to be willing to act in this capacity, it was Administrator Ladner’s recommendation that the Commission pass a resolution, to be known as 2006-13, authorizing Dave Grimm, Waste Water Superintendent, as the Duly Authorized Signatory for the City of Hiawatha for all necessary documents pertaining to Farm Service Agency programs related to the cash rent properties own by the City of Hiawatha.

Dave is to keep the Commission informed concerning these issues.

Commissioner Collins noted that the phrase “for the Year 2007” needed to be added to the resolution.

Commissioner Schmitt made a motion, seconded by Commissioner Collins, to approve Resolution 2006-13, a resolution designating Dave Grimm as the Designated Signatory for the City for documents relating to the City’s cash rent farm properties for the year 2007 and let the resolution be amended to include “in the year 2007.” Motion carried. 5 ayes

9.      CONSENT AGENDA

1. Appropriation Ordinance #1108 in the amount of $33,471.05.
2. Approve Utility Refunds in the amount of $461.92.
3. Approve Contractor License Renewal (7), Electrician License Renewals (8), Plumber License Renewals (5), Tree Trimmer License Renewal (1), and Cereal Malt Beverage Renewal (2).
4. Approval of Monthly Report of Municipal Judge.

Commissioner Schmitt made a motion, seconded by Commissioner Gamble, to approve the Consent Agenda as presented. Motion carried. 5 ayes.

10.  Lynne Ladner, City Administrator.

Administrator Ladner reminded the Commission that the City will be closed next Monday for Christmas, and they had decided to have the meeting on Tuesday, December 26. After deciding that a majority of the Commission would not be able to attend on Tuesday, December 26, they decided to hold the meeting on Wednesday, December 27 instead. They also decided to cancel the meeting for the following week.

Administrator Ladner said that the Commission also still needed to approve the Budget Amendments for 2006.

Commissioner Collins made a motion, seconded by Commissioner Shamburg, to approve the Budget Amendments for 2006 as presented. Motion carried. 5 ayes.

Administrator Ladner also reminded the Commission that they had been invited to the Fire Department Christmas Party at 7:00 tonight.

11.  Mayor Gernon.

12.  Com. William Collins.

13.  Com. Curtis Gamble.

14.  Com. Marianne Schmitt.

15.  Com. Steffen Shamburg.

16.  Adjourn.

Commissioner Shamburg made a motion, seconded by Commissioner Gamble to adjourn. Motion carried. 5 ayes.  

The meeting adjourned at 6:15 p.m.