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HomeMy WebLinkAboutMinutes-03/09/2009• March 9, 2009 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, March 9, 2009. Mayor Timothy J. Hurley in the Chair. Roll Call: Cole, Getty, Hart, Greenwood, Steve Schmitt, Welper, Reggie Schmitt. Moment of Silence. Pledge of Allegiance: Steve Schmitt, Council Member At Large. 128677 - Reggie Schmitt/Steve Schmitt that the Agenda, as proposed, for the Regular Session on Monday, March 9, 2009, at 5:30 p.m., be accepted and approved Ayes: Seven. Motion carried. 128678 - Reggie Schmitt/Steve Schmitt that the Minutes, as proposed, for the Regular Session on Monday, March 2, 2009, at 5:30 p.m., be accepted and approved. Ayes: Seven. Motion carried. CONSENT AGENDA 128679 - Reggie Schmitt/Steve Schmitt that the following items on the consent agenda be received, placed on file and approved: a. Resolutions to approve the following: 1. Resolution approving Schedule AP642, pp. 1-65, dated March 9, 2009, in the amount of $884,158.69, 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. 2009-182. 2. Communication from City Clerk transmitting request of Hawkeye Community College for an exception to burning ordinance to burn approximately 7.5 acres of prairie grass during March - May 2009, together with recommendation of approval of Fire Chief. Resolution adopted and upon approval by Mayor assigned No. 2009-183. 3. Communication from Police Chief transmitting request of SHOUT! Ministries to hold their 2nd annual SHOUT 4 Change 5K Walk/Run on May 16, 2009, beginning at 9:00 a.m., with route beginning at Sullivan Park, past Walter Cunningham School of Excellence, Ferguson Field and Gates Park and to hold Family Festival and Christian Music Concert on August 29, 2009 at Sullivan Park. Resolution adopted and upon approval by Mayor assigned No. 2009-184. b. Motion to approve the following: 1. Communication from City Engineer transmitting recommendation of appointment of William Castle to the position of Associate Engineer, effective on a mutually agreeable date. 2. Communication from Mayor Tim Hurley transmitting recommendation of appointment of Tim Andera to the Historic Preservation Commission, with term expiration date of April 7, 2010. c. Liquor License Permit Application Class E Waterloo Liquor, 1309 Lafayette Street (New Owner) (Expires 3/10/10) (Includes Sunday Sales) City Liquor & Tobacco, 508 Broadway (New) (Expires 2/28/10) (Includes Sunday Sales) d. Wine License Permit Application Class B Waterloo Liquor, 1309 Lafayette Street (New Owner) (Expires 3/3/10) (Includes Sunday Sales) City Liquor & Tobacco, 508 Broadway (New) (Expires 2/28/10) (Includes Sunday Sales) March 9, 2009 Page 2 Consent Agenda continued e. Beer License Permit Application Class C Waterloo Liquor, 1309 Lafayette Street (New Owner) (Expires 3/3/10) (Includes Sunday Sales) Holiday Stationstore, 3260 University Avenue (Renewal) (Expires 5/4/10) (Includes Sunday Sales) City Liquor & Tobacco, 508 Broadway (New) (Expires 2/28/10) (Includes Sunday Sales) f. Beer/Liquor License Permit Application Class C Fortunes, 328 Elm Street (Renewal) (Expires 3/27/10) (Includes Sunday Sales) South Hills Golf Course, 1830 E. Shaulis Road (Renewal) (Expires 3/31/10) (Includes Sunday Sales) g• Outdoor Service Area Application Fortunes, 328 Elm Street South Hills Golf Course, 1830 E. Shaulis Road h. Cigarette/Tobacco Permit Application Diamond Bar, 313 W. 5th Street City Liquor & Tobacco, 508 Broadway Street i. Bonds. Ayes: Seven, with Councilpersons Hart and Steve Schmitt voting nay on applications for City Liquor & Tobacco on Items c,d, e and h. Motion carried. HEARINGS & BIDS 128680 - Hart/Greenwood that proof of publication of notice of public hearing on Purchase of one 12" flood control pump, two 6" flood control pumps, and fourteen 4" flood control pumps, as published in the Waterloo Courier on February 27, 2009, be received and placed on file. Ayes: Seven. Motion carried. 128681 - This being the time and place of public hearing, the Mayor called for written and oral objections and there were none. Hart/Greenwood that the hearing be closed. Ayes: Seven. Motion carried. 128682 - Hart/Greenwood that "Resolution confirming approval of specifications, bid document, etc. in conjunction with Purchase of one 12" flood control pump, two 6" flood control pumps, and fourteen 4" flood control pumps", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2009-185. 128683 - Hart/Greenwood that "Resolution authorizing to proceed in conjunction with above purchase", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2009-186. • • • • March 9, 2009 Page 3 Hearings & Bids continued 128684 - Hart/Greenwood to receive, file and instruct City Clerk to open and read bids and refer to Superintendent of Central Garage for review: Bidder Gierke -Robinson, Waterloo, IA Black Hawk Rental, Waterloo, IA Central Service & Supply, Ankeny, IA Star Equipment Co, Waterloo, IA Ayes: Seven. Motion carried. HEARINGS 128685 - Steve Schmitt/Welper 4" Pumps (14) 6" Pumps (2) 12" Pump (1) $27,572.00 $50,552.00 $26,250.00 $30,366.00 $57,754.00 $90,146.00 $28,518.00 $58,918.00 $82,579.00 that proof of publication of notice of public hearing on Issuance of variable/fixed rate notes in an amount not to exceed $3,175,000.00 under the contract for loan guarantee assistance with U.S. Department of Housing and Urban Development dated September 19, 2006, as published in the Waterloo Courier on February 27, 2009, be received and placed on file. Ayes: Seven. Motion carried. 128686 - This being the time and place of public hearing, the Mayor called for written and oral objections and there were none. Steve Schmitt/Welper Michelle Weidner, Chief Financial Officer, explained that this will be a business loan pool and businesses would borrow from the city. The notes would be secured from the business loan repayments received by the city. that the hearing be closed and oral comments be received and placed on file. Ayes: Seven. Motion carried. 128687 - Steve Schmitt/Welper that "Resolution instituting proceedings to take authorizing issuance of said notes", be adopted. Ayes: Resolution adopted and upon approval by Mayor assigned 128688 - Greenwood/Reggie Schmitt additional action and Seven. No. 2009-187. that proof of publication of notice of public hearing on FYE 2010 Budget, as published in the Waterloo Courier on February 25, 2009, be received and placed on file. Ayes: Seven. Motion carried. 128689 - This being the time and place of public hearing, the Mayor called for written and oral objections. Michelle Weidner, Chief Financial Officer, gave a presentation "Putting The Pieces Together, City of Waterloo Budget Fiscal Year 2010", a copy of which is on file in the office of the City Clerk. Some of the items presented were: The City's Mission Statement; Top Strategic Priorities As Defined by Mayor and Council; How Does The City Provide Services; Sewer Fund which is funded by user fees and How Sewer User Fees Are Spent; Garbage Fund which is funded by user fees and How Garbage User Fees Are Spent; Road Use Tax and How Road Use Tax Funds are Used. Ms. Weidner explained the Road Use Tax is funded by state fuel taxes and is used to maintain nearly 430 miles of streets, including snow removal, pothole repair, right-of-way forestry operations, traffic signals and street lights. March 9, 2009 Page 4 Hearings continued Ms. Weidner noted that the Road Use Tax funds have remained fairly flat while the city's expenses continue to grow. Local Option Tax Fund, which is funded by the one cent sales tax, and How the Local Option Tax Funds are Used; Community Development/Housing, which are funded primarily with federal grants, and How Federal Block Grant Funds Are Used; Capital Projects Funds, which are funded with general obligation bonds (repaid with the debt service levy), federal and state grants as well as grants from Black Hawk Gaming and others and How Capital Project Funds Are Used; Debt Service Fund, which is funded primarily by property taxes; General Fund, which is funded primarily by property taxes. Areas funded through the General Fund include: Public Safety, Public Works, Human Rights Commission, Mayor's Youth Programming, Library, Parks, Recreation (Golf, Sports, Young Arena), Center For The Arts, The Youth Pavilion, Community and Economic Development, Planning & Zoning, Five Sullivan Brothers Convention Center (funded using hotel/motel taxes), Mayor and Council, City Clerk/Finance, MIS, Property and Liability Insurance, Facilities Maintenance, including Memorial Hall, City Attorney and Human Resources. Ms. Weidner noted that as of December 31, 2008, we had 518 employees and 393 of those are general fund positions. Ms. Weidner noted 30 percent of the city's expenses are paid by property taxes, and other sources of revenues are licenses and permits, interest, federal funds, state and local funds, charges for services, debt proceeds and other. Ms. Weidner explained that 73 percent of the general fund is used for Police, Fire and Building Inspections, 1 percent Human Rights, 4 percent Airport, Parking and MET bus service, 1 percent for Road Use Tax employee benefits, 16 percent for Library, Leisure Services and Arts, 1 percent for Planning and Economic Development, 4 percent for Administration, and City Facilities Maintenance. Ms. Weidner explained that 73 percent of the money is spent on personnel costs, including benefits. Ms Weidner reviewed What Is My Total Property Tax Dollar Used For; What Types of Things Does the City Pay For With My Total Property Tax Dollar, Including Debt Payments. Ms. Weidner reviewed the Valuation Trends for the City of Waterloo and reported that the City has $3.56 Billion assessed property value, but due to the rollback figure, the city has $2.07 Billion taxable property value representing 2.73 percent new growth in total assessed value and 2.58 percent new growth in taxable value for FYE10. Ms. Weidner noted that $0.43 of every tax dollar goes to the city. Ms. Weidner explained that the FYE10 General Fund budgets were developed using the following general parameters: personnel staffing levels to remain static, which was done with the exception of adding one employee for Parks which is expected to reduce other costs. No new programs. Other costs and operating revenues were projected using a three-year actual average in most cases. The mission was to maintain city services at lowest possible cost. Other personnel increases that impacted the FYE10 General Fund budget included pay increases, health insurance increase, police and fire pension decrease and increased retirement payments for a total personnel increases of $890,479. Other revenue changes impacting the FYE10 General Fund Budget include increase gaming revenue, increase various airport fees, increase fire inspection revenue, increase ambulance fees, decrease interest revenue, decrease building inspections revenue and other revenue changes for a net revenue changes of $138,581. Other non -personnel changes impacting the FYE10 General Fund Budget include: increase in portion of road use tax employee benefits funded using benefits levy, increase in self-funded workers compensation insurance, increase in liability and property insurance, increase in ambulance and medical supplies, election expenses, increase in facilities maintenance expense, decrease in Youth Pavilion expenses, decrease in citywide contingency account, and other expense changes for a net other non - personnel revenue and expense changes of $289,257. Ms. Weidner noted that the net increase in General Fund Property Taxes from FYE09 is $1,041,155 and after adding Debt Service Fund and Library Tax Levy the net increase in total property taxes from FYE09 is $1,426,139. The property taxes required to support the FYE2010 Budget is $38,268,755 or 3.86 percent increase from FYE09. The proposed levy rate is $18.30689, which represents 3.09 percent increase for residential, 0.06 percent decrease for commercial and 0.33 percent decrease for industrial. Ms. Weidner thanked Council, Mayor Hurley, the Finance Department staff and all city departments for their work to develop the budget and for the service they provide to our citizens year round. The "Putting the Pieces Together, City of Waterloo Budget for Fiscal Year 2010" will be available on the city's website. Councilperson Steve Schmitt asked if the Capital Projects funds include 657A properties. Ms. Weidner responded they are included as well as purchasing properties for the downtown master plan. Councilperson Steve Schmitt asked if the city is using less for demolition than FY09. Ms. Weidner responded that the city used grants in FY09 to acquire some property downtown and a large portion of the demolition of the Chamberlain property was done in FY09. • • • • March 9, 2009 Page 5 Hearings continued Councilperson Reggie Schmitt explained that the increase in the liability and property insurance is due to an appraisal of the city's ten largest building in 2008. The value of those ten buildings increased a little over $28,000,000, which will increase our property insurance premium a little over $24,000.00. Mayor Hurley stated he is proposing to the council a levy rate of $18.30689, which is 3.86 percent increase. Although the levy rate is lower for FY 10 than FY 09, the city's expenses increased $1,426,139. Forest Dillavou, 1725 Huntington Road, stated that if the council raises taxes, we will have had eight increases over eight years. Mr. Dillavou stated he has tenants who are in arrears because they don't get pay raises. One of his tenants received a pay raise but his insurance went up. Mr. Dillavou stated people cannot afford these increases. Mr. Dillavou asked the council to have the department heads shave enough so that taxes don't go up as citizens already have other increases because of the flood, fuel and heating, and the council is already talking about increasing fees for things such as storm water, and all the federal stimulus money will be paid by the citizens. Mr. Dillavou stated that some don't have a good quality of life and won't enjoy the downtown improvements. Mr. Dillavou urged the council not to give homeowners another tax increase. Greenwood/Reggie Schmitt that the hearing be closed and oral and written comments be received and placed on file. Ayes: Seven. Motion carried. 128690 - Mayor Hurley explained that the budget process was started in November 2008, with his instructions to department heads that there would be no major course shifts, no new major programs, no major workforce adjustments, finish what we have started, improve delivery service and be more selective about taking on new capital projects and we have been faithful to these instructions. Mayor Hurley commented that he explained to department heads that things that could affect the FYE10 budget were the state and national economy, five new union contracts, impacts of natural disaster recovery on state and local budgets, energy, materials and fuel prices, state legislature actions/laws that could increase our costs, and then toward the end of the budget process we saw the unveiling of the stimulus package. Mayor Hurley stated that he asked department heads to use 2009 authorized level, but we did add one position. Department Heads were asked to use the three year average on expenses and revenues. Mayor Hurley stated his goal was to maintain the current level of service, to do everything we could to give taxpayers a break and look at discretionary expenses. Mayor Hurley commented that when the budget is adopted it mirrors public policy. Mayor Hurley stated he is presenting to the council a budget that is responsible, maintains city services and shows what we did on individual budgets to make it legal and make it work. Mayor Hurley noted that the proposed budget makes no structural change on how we do business. Mayor Hurley presented to council his proposed budget with a levy rate of $18.30689. Councilperson Greenwood stated he appreciates all the work of council, mayor and staff. This is the 8th budget he has been involved with, and he thinks everyone did due diligence on the budget line item by line item. The budget is expense driven, and he thinks council looked at all the expenses and matched that with needed revenue. Councilperson Greenwood stated there are items in the budget which the city has not control over. Councilperson Greenwood stated he thinks the levy rate is as conservative as we can go, and everyone has had as much input as they needed. Councilperson Cole thanked everyone involved and the public if they were unfortunate enough to watch all the budget work sessions where council went over the budgets line item by line item. Each department was put under a microscope, and at the end of each department's budget, the council took a vote and council voted to move them to the master budget. There were only two no votes the entire process. The budget was carefully examined and council worked very hard on it. Councilperson Getty stated that when the budget is adopted, it gets certified. When the budget is certified it could go down but not up. Councilperson Getty thanked everyone and noted that there was some cutting and shaving of the budget. Councilperson Getty stated that he can buy a 3.09 percent increase for residential property. March 9, 2009 Page 6 Hearings continued Councilperson Steve Schmitt thanked Mayor Hurley, Michelle Weidner, Nancy Eckert, department heads and council members. Councilperson Steve Schmitt stated on Thursday we were at a 5.5 percent increase and then on Friday there were some changes to the health insurance which brought the increase to under 4 percent. Councilperson Steve Schmitt stated when we were talking about 5.5 percent increase, some council members thought that was a good number but he was convinced we could get it down. Councilperson Steve Schmitt stated he received calls from folks who are laid off, folks who are concerned about getting laid off and folks who are operating in a different world. Councilperson Steve Schmitt stated that the federal and state level are all working at the same service level, but have come in at a lower rate. In reading the Waterloo Courier, he saw that Black Hawk County had zero percent increase in taxes, Dubuque is at 0 percent and the City of Cedar Falls had 1.7 percent increase. Councilperson Steve Schmitt stated he feels 3.09 percent is an improvement over last year, but the levy rate is far from being as good as it can be to be competitive with other cities. Councilperson Steve Schmitt stated the economic people say the tax rate is one of the top issues they look at. The private sector has learned to do more with less. Councilperson Steve Schmitt stated he feels the only answer is to continue collaboration with other entities. He has talked to the Board of Supervisors, the School Board and the City of Cedar Falls and they are excited to continue collaboration. Councilperson Steve Schmitt stated he heard in Washington about a shared IT department, and at the end of the day that is the type of structural change we need. Councilperson Steve Schmitt stated Mayor Hurley's e-mail said structural changes would include shutting down a fire station and other programs, but he feels it will take collaboration with other entities to lower rates. Councilperson Steve Schmitt stated he feels our citizens cannot stand more taxes, and that we can do better. Mayor Hurley stated that the biggest break through from Thursday to Friday was health insurance, it was reduced six figures. As far as city comparisons, he doesn't pay that much attention because they have different services and dissimilar revenue. The City of Dubuque uses Local Option Sales Tax, is a smaller sized city, has less miles of streets and roads, and a lot of gaming money going into their General Fund. Mayor Hurley stated as far as businesses looking at the tax rate, he can't deny that, but for the most part in working with the Planning office, services and rail are at the top of the list of clients looking to come to Waterloo. Mayor Hurley stated that he will be glad to carry on the collaboration conversation at City Hall, and he feels we have been the aggressor on that. We started conversations with the Superintendent of Schools and have standing offers to share public safety services, but it takes willing partners. Getty/Cole that "Resolution approving FYE2010 Budget at a levy rate of $18.30689", be adopted. Prior to a vote on the above motion, the following comments were heard. Councilperson Reggie Schmitt echoed the comments about all the hard work. Councilperson Reggie Schmitt stated this is his 6th budget. We have to look at balancing the revenues, we are expected to be good stewards of the taxpayers' money, and there are a lot of things the city has no control over. Councilperson Reggie Schmitt noted this is the fourth year the levy rate has decreased. With this levy rate, the average home will pay an additional $38.64 per year, which is about $0.75 per week. We are maintaining status quo, with no cuts of service, and maintaining current staffing level. Councilperson Reggie Schmitt stated he feels council did the right thing with dollars we have control over. Councilperson Welper thanked Mayor Hurley, Michelle Weidner and Department Heads for their work on this budget. This is quite a balancing act with revenues not keeping up with the city's costs. Other cities are also struggling. One city cut 16 positions, but we cannot cut any more. Councilperson Welper stated we continue to chisel away at the tax rate a little at a time. Councilperson Hart stated the budget process has been on TV, we have had good feedback and its been very beneficial. Councilperson Hart complimented everyone involved. Councilperson Hart stated the levy rate has a high impact on our community. When we look at the utility budget and that 80 percent of our budget is salaries, it comes down to how many to lay off. Councilperson Hart stated he feels the city did a good job looking for additional funding choices to continue what we are doing. • • • • March 9, 2009 Page 7 Hearings continued Following comments a vote was taken on the above motion with the following result. Ayes: Six. Nays: Steve Schmitt. Resolution adopted and upon approval by Mayor assigned No. 2009-188. UNFINISHED BUSINESS 128691 - Hart/Welper that communication from Leisure Services Director transmitting recommendation of award of contract in the amount of $50,986.00 to Waterloo Implement of Waterloo, Iowa in conjunction with Purchase of One 2009 John Deere 3720 Utility Tractor With Attachments, be received, placed on file and "Resolution approving award of said contract", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2009-189. 128692 - Hart/Welper that communication from Leisure Services Director transmitting recommendation of award of contract in the amount of $63,996.00, plus unit price for additional deck patch at $15.00 per square foot, to Tricon General Construction Inc. of Dubuque, Iowa in conjunction with 2009 Riverfront Grandstand Structural Repairs, be received, placed on file and "Resolution approving award of said contract", be adopted. Prior to a vote on the above motion, the following comments were heard. Councilperson Greenwood inquired if there was any discussion about Tricon General Construction's ability to perform. Paul Huting, Leisure Services Director, responded that Struxture Architects reviewed Tricon's performance and feels comfortable that they are capable of handing the job. Following comments a vote was taken on the above motion with the following result. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2009-190. 128693 - Hart/Welper that communication from Associate Engineer transmitting recommendation of award of contract in the amount of $224,518.45 to Peterson Contractors, Inc. of Reinbeck, Iowa in conjunction with F.Y. 2009 Permanent Closure of Black Hawk Creek Railroad Crossings, Contract No. 747, be received, placed on file and "Resolution approving award of said contract", be adopted. Prior to a vote on the above motion, the following comments were heard. Councilperson Steve Schmitt stated that he noticed on the council minutes of the meeting when the bids were opened that another bid was lower. Eric Thorson, City Engineer, stated that the amount of the bid that was read at the council meeting was the city's portion and there were two alternates for John Deere's portion that they will pay for. The amount for approval tonight is the total of all the contract, and Petersen Contractors, Inc. was the low bidder. Councilperson Reggie Schmitt noted that there are two items on tonight's council agenda related to this project. There is a Memorandum of Understanding with John Deere Waterloo Works for them to pay their portion of the project at a cost of $102,100.00 and also an acquisition contract with them donating land for a new levee. Following comments a vote was taken on the above motion with the following result. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2009-191. March 9, 2009 Page 8 Unfinished Business continued 128694 - Hart/Welper that communication from Associate Engineer transmitting recommendation of award of contract in the amount of $323,230.02 to Stickfort Construction Co. of Cedar Falls, Iowa in conjunction with F.Y. 2009 Riverview Recreational Trail, Contract No. 726, be received, placed on file and "Resolution approving award of said contract", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2009-192. REPORTS 128695 - Greenwood/Steve Schmitt that communication from notification of letting of from one mile north of U.S. March 17, 2009, be received 128696 - Greenwood/Steve Schmitt Iowa Department of Transportation transmitting a Portland Cement Concrete patching project on I-380 30 in Cedar Rapids north to U.S. 218 in Waterloo on and placed on file. Ayes: Seven. Motion carried. that communication from Building Official/Maintenance Administrator transmitting assignment of contract to Granite Re, Inc. of Okalahoma City, Oklahoma for the East Park Avenue Ramp Repair, Division I and II, be received and placed on file. Ayes: Seven. Motion carried. DOCUMENTS 128697 - Greenwood/Steve Schmitt that communication from Associate Engineer transmitting Change Order No. 10 for a net increase in the amount of $34,750.00 for work performed by Peterson Contractors, Inc. of Reinbeck, Iowa in conjunction with F.Y. 2007 Waterloo Dam Rehabilitation and Riverwall Construction, Contract No. 713, be received, placed on file and approved and Mayor and City Clerk authorized to execute same. Ayes: Seven. Motion carried. 128698 - Greenwood/Steve Schmitt 128699 that communication from Associate Engineer transmitting Memorandum of Understanding with John Deere Company of Waterloo, Iowa to pay for two railroad bridge removals at Westfield Avenue and tree removals along Black Hawk Creek between Westfield Avenue and the Cedar River in conjunction with F.Y. 2009 Permanent Closure of Black Hawk Creek Railroad Crossings, Contract No. 747, be received, placed on file and "Resolution approving said Memorandum of Understanding", be adopted and Mayor authorized to execute same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2009-193. - Greenwood/Steve Schmitt that communication from Associate Engineer transmitting professional services agreement with VJ Engineering at a cost of $97,400.00 for construction -related services in conjunction with F.Y. 2009 Permanent Closure of Black Hawk Creek Railroad Crossings, Contract No. 747, 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. 2009-194. 128700 - Cole/Reggie Schmitt 1 that communication from City Engineer transmitting Substantial Completion of Project for work performed by Prairie Construction Co., Inc. of Waterloo, Iowa for the F.Y. 2008 Public Market Building, Contract No. 738, be received, placed on file and "Resolution approving said documents", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2009-195. • • • • March 9, 2009 Page 9 Documents continued 128701 - Cole/Reggie Schmitt that communication from Leisure Services Director transmitting agreement with Black Hawk County Gaming Association for grant in the amount of $823,000.00 for Mark's Park and Amphitheater, be received, placed on file and "Resolution approving said agreement", be adopted and Mayor and City Clerk authorized to execute same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2009-196. 128702 - Cole/Reggie Schmitt that communication from Leisure Services Director transmitting agreement with Invision Architects of Waterloo, Iowa at a cost of $10,000.00 for architectural services for a roof replacement at Gates Golf Course Pro Shop, 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. 2009-197. 128703 - Cole/Reggie Schmitt that communication from City Planner transmitting three-year lease agreement with Doug Bruns for $300.00 per year to bale hay on approximately 28 acres of land generally located at the southwest corner of Kimball Avenue and Highway 20, be received, placed on file and "Resolution approving said agreement", be adopted and Mayor and City Clerk authorized to execute same. Prior to a vote on the above motion, the following comments were heard. Councilperson Steve Schmitt inquired about changing the lease from one year to three years. Noel Anderson, Community Planning & Development Director, stated that Mr. Bruns requested the three-year lease agreement because of the extensive spraying and improvements. Following comments a vote was taken on the above motion with the following result. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2009-198. 128704 - Cole/Reggie Schmitt that communication from City Planner transmitting partial acquisition contract with Deere and Company to acquire 7,628 SF of Deere property generally located just to the west of the existing Westfield Avenue plant, located on the east bank of Black Hawk Creek just to the south of the Cedar River for purpose of constructing an earthen levee, be received, placed on file and "Resolution approving said partial acquisition contract", be adopted and Mayor and City Clerk authorized to execute same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2009-199. 128705 - Cole/Reggie Schmitt that communication from City Planner transmitting Quit Claim Deed and temporary construction easement agreement with Black Hawk County in conjunction with box culvert improvements along West Big Rock Road between Wagner Road and Burton Avenue, be received, placed on file and "Resolution approving said temporary easement and accepting said deed", be adopted and Mayor and City Clerk authorized to execute same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2009-200. 128706 - Cole/Reggie Schmitt that communication from City Clerk transmitting request of Councilperson Greenwood to approve consulting services agreement with Win -Rx, LLC of Omaha, Nebraska at a cost of $6,500.00, plus costs for airfare, hotels, meals, etc., to develop RFP, evaluate and make recommendation on pharmacy benefit management services and four audits of claims data for one year, be received, placed on file and "Resolution approving said agreement", be adopted and Mayor authorized to execute same. March 9, 2009 Page 10 Documents continued Prior to a vote on the above motion, the following comments were heard. Jim Walsh, City Attorney, stated that the question from Councilperson Greenwood was whether or not he has a legal conflict on the voting for a consultant. This is a consultant, this is not the actual providing of the pharmacy benefit agreement, its a step away from that. The results may or may not be accepted by council at the time they are presented. Councilperson Greenwood is just one of many pharmacies in town, and its unknown whether or not customers would actually shop at his place or shop somewhere else. Its a very indirect, very indistinct conflict and not applicable at this stage. Councilperson Reggie Schmitt stated that the cost is $6,500.00 and maybe could end up closer to $10,000.00. Councilperson Reggie Schmitt noted that we are asking Win -Rx for an RFP, and if you go on-line, it seems Win -Rx is from the School of Pharmacy and their results seem to be pretty pharmacy slanted as far as their business. They have a computer program and look at issues on spread pricing. The companies are in business to make money, they don't do it for free. If you look at 100 drugs, they may have an excess spread on one generic drug and save us money on the other 99. The other issue is that even on their own home page, they say that while there has been some reform in the pharmacy benefit management industries, there remains many questions as to which companies are truly transparent. We have $1.275 million dollar budget for Express Scripts and it cover 1,700 people in the city's plan, which is less than $800.00 per person per year. Express Scripts has offered a transparent contract which would save about $45,000.00 per year, and last year we received $60,000.00 refund from them. Councilperson Reggie Schmitt stated he is all for checks and balances, but he doesn't feel the city should write the check. There are 22 entities in the coalition using Express Scripts, such as Black Hawk County, City of Cedar Falls, Cedar Falls Utilities, City of Dubuque and City of Davenport. If we are not hearing the same type of concern about Express Scripts from anyone else, why should we write the $10,000.00 check because they are going to reap anything we find. Councilperson Reggie Schmitt stated that he has a copy of the article from the Wall Street Journal that is six years old, and he has a hard time supporting spending $10,000.00 on information that is six years old. Councilperson Steve Schmitt stated he appreciates the reference to collaboration with other governments. While he is one of the last persons to encourage spending any money we don't need to, he also thinks that part of our dilemma of how we got to where we are at, for those of us who think we could be in a better place, is our unwillingness to think outside the box and view things from a different perspective. Councilperson Steve Schmitt stated on the trip to Washington, DC he had the opportunity to speak with a couple different folks who are involved with the pharmacy industry, told them about our discussions and what we were going to look at, and they virtually guaranteed that we would save substantial amounts of money, well into six figures. Based on that from somebody who is completely objective on this process and also the fact that Councilperson Greenwood is in this business, and f we were talking about the businesses that the rest of council are all in involved in it would lend a certain level of credibility, and he thinks Councilperson Greenwood does that in this case and he supports him completely. Councilperson Welper asked if the other organizations and cities are they to share the costs of this proposal. Councilperson Greenwood responded he has not talked to the other 22 organizations. Nancy Eckert, City Clerk, stated that the coalition is not interested in going out for bids, but Express Scripts does want to be able to bid on the RFP. Mayor Hurley stated maybe when we get the results we can sell that to other entities. Councilperson Greenwood stated that he has been involved in the pharmacy associations for 15 years, and he came across Dr. Garis in 1998 and helped him look at spread pricing issues. Dr. Garis is a foremost expert on PBMs in the United States and maybe a handful of other people understand how their business model operates. Councilperson Greenwood stated he would not bring this to council if he did not think he could the save the city $100,000.00. He feels it is his fiduciary duty to the city and we need to go out and take a look at it. Councilperson Greenwood stated when he talked with Dr. Garis this afternoon, he said if he can't save the city $100,000.00 he is going to find a different line of work. Following comments a vote was taken on the above motion with the following result. Ayes: Five. Nays: Welper, Reggie Schmitt. Resolution adopted and upon approval by Mayor assigned No. 2009-201. • • e March 9, 2009 Page 11 ORAL PRESENTATIONS 128707 - Forest Dillavou, 1725 Huntington Road, stated he is concerned about the tax dollars. We are talking about putting a roof on Gates Pro Shop and spending $10,000.00 to have someone tell us how to put the roof on. Mayor Hurley stated that we are changing it from a flat roof and putting a slight pitch on the roof because of all the structural concerns. It takes engineering talents that the city does not employ in-house. Mr. Dillavou stated that the city is paying an engineer to help with the two culverts on Big Rock Road, and he thinks a lot of money could be saved that we are paying engineers that could be done in-house. With the roof, we could tell the people that we want a pitch roof, and the qualified bidders should be able to do that. Our building administrator could take a look at it and see if it meets codes. Mr. Dillavou stated he feels its wasted money. Councilperson Reggie Schmitt stated that the we need engineers for the two box culverts because we are replacing wood bridges with two culverts. Its not as simple as taking out the culverts and putting in new culverts. Mayor Hurley stated this is a city, and if we have a pickup truck go over that bridge and we had not properly engineered and certified it and it fell in, guess what would happen to our liability insurance cost. If we have a roof fall in or open up and damage all of the Pro's goods, guess who is going to end up paying for that under liability insurance. Mayor Hurley stated in trying to be good stewards of the citizens' money, whether its state, federal or local property tax money, those are the extra precautions the city goes through. Getty/Cole that the above oral comments be received and placed on file. Ayes: Seven. Motion carried. ADJOURNMENT 128708 - Hart/Reggie Schmitt that the Council adjourn at 7:12 p.m. Ayes: Seven. Motion carried. Nancy ert, CMC City Clerk