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HomeMy WebLinkAboutMinutes-01/07/2008January 7, 2008 The Council of the City of Waterloo, Iowa, met in Regular Session at City Hall Council Chambers, Waterloo, Iowa, at 5:30 p.m., on Monday, January 7, 2008. Mayor Timothy J. Hurley in the Chair. Roll Call: Cole, Getty, Hart, Greenwood, Steve Schmitt, Welper, Reggie Schmitt. Moment of Silence. Pledge of Allegiance: Councilperson Reggie Schmitt. 126408 - Reggie Schmitt/Greenwood that the Agenda, as proposed, for the Regular Session on Monday, January 7, 2008, at 5:30 p.m., be accepted and approved. Ayes: Seven. Motion carried. 126409 - Reggie Schmitt/Greenwood that the Minutes, as proposed, for the Regular Session on Monday, December 17, 2007, at 5:30 p.m., be accepted and approved. Ayes: Seven. Motion carried. CONSENT AGENDA 126410 - Reggie Schmitt/Greenwood that the following items on the consent agenda be received, placed on file and approved: a. Resolution to approve the following: 1. Resolution approving Schedule AP640, pp. 1-70, dated January 7, 2008, in the amount of $3,558,225.60, a copy of which is on file in the City Clerk's office, together with recommendation of approval of the Finance Committee. Resolution adopted and upon approval by Mayor assigned No. 2008-2. b. Motion to approve the following: c. 1. Communication from Mayor Hurley transmitting recommendation of reappointment of Willie Cody to the Waterloo Cable TV Commission, with term expiration date of December 31, 2010. 2. Christopher Leach, Rehabilitation Specialists, to attend National Lead & Healthy Homes Grantees Conference and Indoor Environmental Health and Technology Conference in Charleston, South Carolina on March 31 - April 4, 2008, with costs not to exceed $2,108.00. 3. Scott Lake, Police Officer, to travel to Everett, Washington on December 4-6, 2007, with costs not to exceed $630.43. 4. Stacy Hogle, Police Officer, to attend Sex Crimes Investigators Conference in Des Moines, Iowa on January 28-31, 2008, with costs not to exceed $659.00, including use of city vehicle. 5. Rudy Jones, Community Development Director, to in Fort Worth, Texas on March 10-18, 2008, $1,335.00. attend HUD Training Course with costs not to exceed Beer/Liquor License Permit Application Class C Jefferson Street Tap, 708 Jefferson Street (Renewal) (Expires 2/7/09) (Includes Sunday Sales) Diamond Bar, 313 West 5th Street (Renewal) (Expires 12/30/08) (Includes Sunday Sales) Tony's Trattoria, 3251 West 4`h Street (Renewal) (Expires 1/31/09) (Includes Sunday Sales) d. Liquor License Permit Class A Veterans of Foreign 1/14/09) (Includes Application Wars Post 1623, 1406 Commercial (Renewal) (Expires Sunday Sales) January 7, 2008 Consent Agenda continued Page 2 e. Beer License Permit Application Class C K -Mart, 3810 University Avenue (Renewal) (Expires 2/28/09) (Includes Sunday Sales) f. Wine License Permit Application Class B K -Mart, 3810 University Avenue (Renewal) (Expires 2/28/09) (Includes Sunday Sales) g. Dance License Permit Application Spicoli's, 3555 University Avenue h. Going Out of Business License Application Day Star Jewelry, 3641 Kimball Avenue (30 day extension thru 2/5/08) Ayes: Seven, with Councilperson Hart abstaining on reappointment of Willie Cody as he is a cousin and Councilperson Steve Schmitt abstaining on payment in the amount of $152.50 to Schmitt Telecom, Inc. Motion carried. HEARINGS & BIDS 126411 - Greenwood/Welper that proof of publication of notice of public hearing on Purchase of One Current Model Year Service Truck, as published in the Waterloo Courier on December 17, 2007, be received and placed on file. Ayes: Seven. Motion carried. 126412 - This being the time and place of public hearing, the Mayor called for written and oral objections and there were none. Greenwood/Reggie Schmitt that the hearing be closed. Ayes: Seven. Motion carried. 126413 - Greenwood/Welper that "Resolution confirming approval of specifications, bid document, etc. in conjunction with Purchase of One Current Model Year Service Truck", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2008-3. 126414 Greenwood/Welper that "Resolution authorizing to proceed in conjunction with above said purchase", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2008-4. 126415 - Greenwood/Welper to receive, file and instruct City Clerk to open and read bids and refer to Superintendent of Central Garage for review: Bidder Truck Country, Cedar Rapids, IA Witham Auto Center, Waterloo, IA Bill Colwell Ford, Hudson, IA Ayes: Seven. Motion carried. Bid Amount $72,929.00 $69,894.00 $72,475.00 • • January 7, 2008 HEARINGS • • 126416 - Hart/Reggie Schmitt Page 3 that proof of publication of notice of public hearing on development agreement with John Rooff to sell and convey for $1.00 city -owned property generally located at the southwest corner of Mobile and Douglas Streets for purpose of building a new home with taxable value of $85,000.00, as published in the Waterloo Courier on December 21, 2007, be received and placed on file. Ayes: Seven. Motion carried. 126417 - This being the time and place of public hearing, the Mayor called for written and oral objections and there were none. Hart/Welper that the hearing be closed. Ayes: Seven. Motion carried. 126418 - Hart/Reggie Schmitt that "Resolution approving said development agreement", be adopted and Mayor and City Clerk authorized to execute same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2008-5. 126419 - Hart/Reggie Schmitt that "Resolution authorizing said sale and conveyance", be adopted and City Attorney instructed to prepare and deliver deed accordingly. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2008-6. 126420 - Welper/Steve Schmitt that proof of publication of notice of public hearing on development agreement with MAKO Waterloo Corporation to sell and convey for $1.00 property located at 1515 Sycamore Street, with ten years tax rebatements at 100 percent with minimum assessed value of $2,250,000.00 for 20 years to allow for restoration and rehabilitation of the Rath Administration Building, as published in the Waterloo Courier on December 17, 2007, be received and placed on file. Ayes: Seven. Motion carried. 126421 - This being the time and place of public hearing, the Mayor called for written and oral objections. Nancy Eckert, City Clerk, reported that Ryan Madison, 650 Dawson Street, telephoned her office. Mr. Madison was unable to attend tonight, but he wanted to express his concerns as to what MAKO was exactly going to do with the building. Mayor Hurley commented that he received a note that Planning talked with Mr. Madison this afternoon, and he thinks he was satisfied. Bruce DeBolt, CEO MAKO Waterloo Corporation, stated they have a specific vision for it, its with a very hi -tech bias, based on their strengths and experience. They wish to maintain the historic nature of the building, and they intend to register it in the historic register. They feel that this building offers them the opportunity to leverage existing marketing efforts that they have with other properties under their ownership. Councilperson Greenwood asked MAKO if they have other buildings like this in Brownfield areas that they have redeveloped. Mr. DeBolt responded they are currently redeveloping the Badger Building in Sioux City, Iowa. This building and the Badger Building each have some unique attributes, what one offers the other doesn't. The Brownfields redevelopment, the asbestos abatement and hazmat abatement part of this project is being undertaken by the City of Sioux City. MAKO will come in after completion of that and assume the responsibility for stabilizing the building envelope. This would include windows, roofs, tuckpointing of the exterior as well as installing heating, ventilation, air conditioning mechanicals which no longer exist in the building. There is virtually nothing in there at this moment, which makes it impossible to market the building in its present condition. They want to get the basic infrastructure back and get the envelope of the building stabilized in accordance with the historic standards and then move forward with their marketing effort. January 7, 2008 Page 4 Hearings continued Mr. DeBolt noted that they are very focused in the Midwest because the Midwest offers some very unique attributes. Mr. DeBolt noted that a recent survey shows that the High Tech (IT) industry is best located in the Midwest. There are more cool degree days, and heat degree days, very inexpensive power relative to the rest of the country, relatively low cost of labor, all of which is driving IT Centers to the Midwest. Google, for example, has announced a very large project in Council Bluffs, which in large part was driven by power costs. As a result of the latest technology platforms that are being deployed, line item power costs and data centers have gone from 6 to 8 percent and to over 30 percent and expected to rise beyond that. Power is the line item that data center managers are having to cope with in today's economy and today's technology market place, and that is why MAKO feels that the Midwest is an excellent investment. Councilperson Welper noted that MAKO is going to spend $1.5 million on this building and given the size, the condition and the amount of work that is going to be done on this building, he asked if $1.5 million is the minimum or the maximum to get the building ready. Mr. DeBolt responded that is what they see as minimally necessary to stabilize this property after the asbestos and hazmat issues have been remediated. Councilperson Greenwood commented that the process this evening is that the city would hand over the property for $1.00. MAKO then has about 50 to 60 days to do diligence to see if they want to keep the property as they probably want to get the property in their name so they can get financing. On February 28, 2008 if MAKO's due diligence says they don't think they can market the property, they don't think they can stabilize the building then it would come back to the city. Mr. DeBolt responded that the financing is already in place as they are not financing any portion of it, they are paying cash for all these improvements. They do have about 50 days left, and the purpose of that is to allow them time to do any soil testing, phase II testing, and the civil engineering that they need to get done to make sure that there are no impediments out of the structure of the building which would render it ultimately unfit or totally preclude the kind of approach that they are taking to the building and that is what the time period is for. Don Temeyer, Community Planning & Development Director, noted that the city has done a Phase II studies on that piece of property, but our information didn't show what was absolutely necessary. Staff has provided all our information to Mr. DeBolt, but if he wants more, he certainly can go get more. Mr. Temeyer commented that the actual deed won't be transferred until after the due diligence period and after the city removes the asbestos. Councilperson Hart noted that it looks like MAKO is going to take the shell of the building and get it up to par to put it into a position where they can market it and show that there is some usage in this building to the different investors, and he asked if there are any investors now that are kind of eyeing the building once it is up to par. Mr. DeBolt responded that they don't need any additional investors. What they want to do is put the building in a position where they can market it. In its present condition it is just not in a sufficient state to be able to do that, so the first thing they need to do is stop the degradation. It's a very difficult property the way it presently sits so their approach is to get this thing back to the point that it looks like a real building that is sound and fit and would provide the kind of support that a hi -tech operation would need. Ed Ottesen, Chairperson of the Waterloo Historic Preservation Commission, commented that the commission is very pleased that this agreement is in front of the council tonight, and they are very much in favor of this project. The commission has been trying to help the city find a developer and are really glad that these two gentlemen have stepped forward. The commission would really like to see this go forward. Dale McKinney, Architect, commented that he is a member of the Preservation Commission in Sioux City. They have done a lot of restoration work around the state, and this building has a lot of opportunities. The structure at this point in time appears to be quite sound, and he looks forward to the opportunity to really get in and bring it back to its true potential. • • January 7, 2008 Hearings continued • • Welper/Reggie Schmitt Page 5 that the hearing be closed and recommendation of approval of Waterloo Historical Preservation Commission and oral comments be received and placed on file. Ayes: Seven. Motion carried. 126422 Welper/Reggie Schmitt that "Resolution approving said development agreement", be adopted and Mayor and City Clerk authorized to execute same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2008-7. 126423 - Welper/Reggie Schmitt that "Resolution authorizing said sale and conveyance", be adopted and City Attorney instructed to prepare and deliver deed accordingly. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2008-8. REPORTS 126424 - Getty/Cole that communication from City Clerk transmitting Abstract of Votes cast in the Runoff Election held on December 4, 2007, be received and placed on file. Ayes: Seven. Motion carried. 126425 - Getty/Cole that communication from Chief Financial Officer transmitting City of Waterloo Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2007, be received and placed on file. Ayes: Seven. Motion carried. 126426 - Getty/Cole that communication from Mayor Tim Hurley transmitting 2008 - 2010 Vision, Goals and Strategic Objectives, be received and placed on file. Ayes: Seven. Motion carried. DOCUMENTS 126427 - Cole/Reggie Schmitt that communication from City Planner transmitting Change Order No. 1 for a net increase in the amount of $16,238.77 for work performed by Enviromark Corporation of Davenport, Iowa in conjunction with F.Y. 2007 CMC Parcel 2 Cleanup Project, Contract No. 725, be received, placed on file and approved and Mayor and City Clerk authorized to execute same. Prior to a vote on the above motion, the following comments were heard. Don Temeyer, Community Planning and Development Director, explained that the city entered into a contract with Enviromark using the Brownfield Cleanup Revolving Loan Fund and the CMC Cleanup grant to clean it all up and get a no further action. The city removed two buried railcars at that site, and that part of the project went very smooth. It is based on unit prices so we were under budget at that time. We started digging in the lead trench along the railroad tracks and found that it was full of lumps of very heavily contaminated material that would have to be hauled to an approved site. The cost of that exceeded the amount available in the grant and the BC are all out so we closed out the contract and that is what we are doing tonight. We will do an extension next week on the CMC Cleanup grant agreement, which will give us a one-year extension and do a closure in place. But just because we can't take it all out of there doesn't mean you can't develop the property. We will put deed restrictions and outline what exactly is there and how they are supposed to treat it in the future. The plan is that it will be left and we will have to go through a series of public hearings and give notice to the public on how we are proceeding, and we will be working with EPA to do that. Councilperson Hart asked if that will have a potential impact on that area, is this something that is standard, has this been done in the past or is it just that we don't have the necessary resources at this time. January 7, 2008 Page 6 Documents continued Mr. Temeyer responded that it is an acceptable practice to do a closure in place on a piece of property. The TechWorks area is a site that is contaminated, they didn't haul it all away, but it can be developed and is being developed as we speak. It makes it better if you can actually remove all of that, but it does come to an economic cost benefit analysis of that. It is expensive to haul that all to an approved landfill like Peoria and you are just hauling dirt and rock down there instead of using our money to do other projects that are more important to us like Chamberlain which is removing those dilapidated buildings and has more of an impact. Mr. Temeyer stated that it will be contained on the site and stay there. Councilperson Reggie Schmitt commented that anything that is hazardous in this area is contained, it is not going to move and that keeping it in place just negates ever having a basement there. It can be capped and developed above ground. Mr. Temeyer responded that is correct, typically a parking lot or you could do it with gravel, but typically a person in the future would put a parking lot on that or it could be a truck gravel and truck parking area. It is not a place where you are going to put residential or a daycare center, but it certainly is a very viable light industrial site with rail access. Councilperson Greenwood noted that the owner from Arizona who bought the property originally at the tax sale remains part owner of the property. Mr. Temeyer responded that gentleman owns a piece of the property with the building on it. When he donated that property to us, he kept the portion with the building on it. We have torn down all the buildings that were dilapidated using an Iowa Brownfield grant and EPA grant. We removed the buried railcars and have cleaned up that part of the site, which is where the leaking was occurring and possibly going off site. The part that will stay on there is not leaching onto adjacent sites. The city owns six acres and he owns four acres, and it is a very developable site with rail access. Following comments a vote was taken on the above motion with the following result. Ayes: Seven Motion carried. 126428 Cole/Reggie Schmitt that communication from Leisure Services Sports Manager transmitting application with Waterloo Convention and Visitors Bureau for grant in the amount of $5,000.00, with city match of $1,000.00, to be used to run electrical services at the Percy Danes Baseball Complex, be received, placed on file and "Resolution approving said grant application", be adopted and Mayor authorized to execute same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2008-9. 126429 Cole/Reggie Schmitt that communication from Community Planning and Development Director transmitting amendment #3 to agreement with Vision Iowa, H.W. Grout Trust and the City of Cedar Falls to allow each recipient to receive reimbursement after they have met conditions of their individual projects, be received, placed on file and "Resolution approving said agreement", be adopted and Mayor authorized to execute same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2008-10. 126430 - Cole/Reggie Schmitt that communication from Senior Planner transmitting request of Rodney and Dona Frickson for tax exemptions on improvements totaling $93,000.00 for 540 Colorado Street located in the Consolidated Urban Revitalization Area, together with recommendation of approval, be received, placed on file and "Resolution approving said request", be adopted and City Clerk instructed to notify Black Hawk County Assessor of same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2008-11. • • January 7, 2008 • • Documents continued 126431 - Cole/Reggie Schmitt Page 7 that communication from Senior Planner transmitting request of Paulino Sanchez for tax exemptions on improvements totaling $14,587.40 for 515 Independence Avenue located in the Consolidated Urban Revitalization Area, together with recommendation of approval, be received, placed on file and "Resolution approving said request", be adopted and City Clerk instructed to notify Black Hawk County Assessor of same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2008-12. 126432 - Cole/Reggie Schmitt that communication from Fire Chief transmitting agreement with U.S. Department of Homeland Security for FY 2007 Assistance to Firefighters grant in the amount of $95,200.00, with required city match of $19,040.00, to be used to purchase Bunker Gear protective clothing, be received, placed on file and "Resolution approving said agreement", be adopted and Mayor authorized to execute same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2008-13. NEW BUSINESS 126433 - Cole/Reggie Schmitt that communication from General Manager of Waterloo Water Works transmitting request to certify the amount of $1,750.00 for work performed by the Water Works at 2119 City View Street, together with recommendation of approval of the Board of Waterloo Water Works Trustees, be received, placed on file and "Resolution approving said request", be adopted and City Clerk instructed to notify Black Hawk County Treasurer of same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2008-14. 126434 - Reggie Schmitt/Cole that communication from Fire Chief transmitting recommendation of award of bids received for purchase of Personal Protective Equipment/Turnout Gear, be received, placed on file and "Resolution setting date of hearing as January 22, 2008, at 5:30 p.m. in the City Hall Council Chambers on the above described development agreement", be adopted and City Clerk instructed to publish notice of same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2008-15. ORAL PRESENTATIONS 126435 - Jerry Collins, 1957 Franklin Street, stated there are vacant lots right next door to him and right across the street. The property owners are not taking care of the sidewalks so the post office is not delivering the mail, and he asked what can be done to get the post office to deliver the mail. Mayor Hurley responded that the Engineering Department has been involved, they inspected the area, and engaged the post office, the postal route supervisor, and the city's sidewalk contractor, which is supposedly the beginning of the problem. After that tour, the city and its contractor were relieved of any responsibility concerning the mail delivery. The things that the subcontractor needed to do were done until he can finish the job this next season. We continue to get calls and what it boils down to right now is that it is between the property owners and the post office. The route supervisor is making a decision based upon not necessarily the sidewalk that runs along Franklin but the individual homeowners' sidewalks. Mr. Collins commented that he knows that 1933 Franklin rents the front half of that lot so they should take care of that but they don't. Mayor Hurley asked Mr. Collins if the post office has told him why they won't deliver the mail. January 7, 2008 Page 8 Oral Presentations continued Mr. Collins responded it is because the people aren't taking care of their sidewalks. The last couple of days he has worked on his sidewalk, but the contractor had blankets down on his sidewalk when they poured his sidewalk. They didn't get that up until after the second snowfall after we had that ice and then two snows after that. They compacted the snow on his sidewalk, and he told the contractor and Gary Heinick who told him that they would clean up the sidewalk they poured and it isn't done yet. Councilperson Schmitt noted that the letter council received mentions that the mail delivery was stopped on four blocks: 1600, 1700, 1800 and 1900 blocks of Franklin. It wasn't just the sidewalks, but the post office was refusing to deliver mail to any of the houses that had not cleared their steps. Mr. Collins noted that he lives next door to the Franklin Super Value. The postal truck parks in the Super Value lot, walks up his driveway and puts the mail in the slot, and he cleaned that but they won't bring him the mail because of the other neighbors. Councilperson Cole noted that the route supervisor is Percy Thomas. He is the one who says if residents have problems they should call him. Mayor Hurley suggested Mr. Collins continue talking with Mr. Thomas. Mayor Hurley stated he will send Code Enforcement to identify who owns those vacant lots on either side of Mr. Collins. Mr. Collins commented the warmer weather has helped, and that is why he has been trying to get off what they compacted on his sidewalk, but it is taking a while because they used a Bobcat and ran up and down and compacted it. Mayor Hurley stated maybe there is something the contractor can do, and he will ask Eric Thorson, City Engineer, to get in touch with them. Getty/Reggie Schmitt that the above oral comments be received and placed on file. Ayes: Seven. Motion carried. 126436 - Reggie Schmitt/Welper that the council adjourn to Executive Session at 6:13 p.m. Ayes: Seven. Motion carried. City Attorney Jim Walsh stated that discussion of acquisition of property is an approved topic of Executive Session pursuant to Iowa Code Section 21.5 (1)(j)(2007). EXECUTIVE SESSION 126437 - Reggie Schmitt/Greenwood that the council adjourn Executive Session at 6:45 p.m. Ayes: Seven. Motion carried. 126438 - Reggie Schmitt/Greenwood that Planning, Programming and Zoning staff be authorized to proceed. Ayes: Seven. Motion carried. ADJOURNMENT 126439 - Reggie Schmitt/Welper that the Council adjourn at 6:46 p.m. Ayes: Seven. Motion carried. Nancy (kert, CMC City Clerk • • ti