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HomeMy WebLinkAboutMinutes-03/20/2003March 20, 2003 The Council of the City of Waterloo, Iowa, met in Special Session at City Hall Council Chambers, Waterloo, Iowa, at 8:00 a.m. on Thursday, March 20, 2003. Mayor John R. Rooff in the Chair. Roll Call: Kincaid, Welper, Greenwood, Jordan, Hurley, Getty. Absent: Clark. 117935 - Jordan/Hurley that the Agenda, as proposed, for the Special Session on Thursday, March 20, 2003, at 8:00 a.m., be accepted and approved. Ayes: Four. Absent: Kincaid, Greenwood, Clark. Motion carried. 117936 - Jordan/Hurley that copies of the Call for the Special Session on March 20, 2003, be received and placed on file. Ayes: Four. Absent: Kincaid, Greenwood, Clark. Motion carried. Kincaid now present at 8:05 a.m. 117937 - This being the time and place of public hearing on the F.Y. 2003 Street Reconstruction Program, Contract No. 659, the Mayor called for written and oral objections and there were none. Hurley/Welper that the hearing be closed and oral and written comments be received and placed on file. Ayes: Five. Absent: Greenwood, Clark. Motion carried. 117938 - Jordan/Hurley that "Resolution confirming approval of plans, specifications, form of contract, etc. in conjunction with F.Y. 2003 Street Reconstruction Program, Contract No. 659", be adopted. Ayes: Five. Absent: Greenwood, Clark. Resolution adopted and upon approval by Mayor assigned No. 2003-183. 117939 - Hurley/Welper that "Resolution ordering construction in conjunction with above said project", be adopted. Ayes: Five. Absent: Greenwood, Clark. Resolution adopted and upon approval by Mayor assigned No. 2003-184. 117940 - Getty/Hurley to receive, file and instruct City Clerk to open and read bids and refer to City Engineer for review: Bidder Base Bid Base Bid Bid + Alternate A + Alternate B Bond (Asphalt) (Concrete) Aspro, Inc. & Subsidiaries, Waterloo, IA 5% $3,309,986.95 None Cedar Valley Corp., Waterloo, IA 5% None $3,456,584.06 Peterson Contractors, Inc., Reinbeck, IA 5% $3,401,505.70 None Ayes: Five. Absent: Greenwood, Clark. Motion carried. Greenwood now present at 8:13 a.m. 117941 - This being the time and place of public hearing on the F.Y. 2003 Sycamore Street Reconstruction Program, Contract No. 654, the Mayor called for written and oral objections and there were none. Jordan/Welper that the hearing be closed and oral and written comments be received and placed on file. Ayes: Six. Absent: Clark. Motion carried. 117942 - Getty/Jordan that "Resolution confirming approval of plans, specifications, form of contract, etc. in conjunction with F.Y. 2003 Sycamore Street Reconstruction Program, Contract No. 654", be adopted. Ayes: Six. Absent: Clark. Resolution adopted and upon approval by Mayor assigned No. 2003-185. March 20, 2003 Page 2 117943 - Hurley/Jordan that "Resolution ordering construction in conjunction with above said project", be adopted. Ayes: Six. Absent: Clark. Resolution adopted and upon approval by Mayor assigned No. 2003-186. 117944 - Welper/Jordan to receive, file and instruct City Clerk to open and read bids and refer to City Engineer for review: Bidder Bid Base Bid Base Bid Bond + Alternate A + Alternate B Peterson Contractors, Inc., Reinbeck, IA 5% None $683,997.65 Cedar Valley Corp., Waterloo, IA 5% None $680,954.70 Cunningham Construction, Cedar Falls, IA 5% None $642,947.77 Ayes: Six. Absent: Clark. Motion carried. 117945 - Mayor Rooff reported that a letter has been received by downtown property owners represented by Rene Dupont requesting reversal of the SSMID District, signed by Barb Krizek, Mary Ellen Warren and Marty Dickey. The letter indicates that everything has been worked out. Mayor Rooff stated that the city can only send a letter to the Iowa Department of Management and Black Hawk County Board of Supervisor requesting to review reinstatement of the Self - Supported Municipal Improvement District (SSMID). Councilperson Scott Jordan stated he has concerns with Number 3 in the letter which states the city will take over the debt of Main Street in any manner or fashion needed, and that none of the debt will revert to the new economic development group. Mayor Rooff responded the city needs to discuss how we would take over that debt, and at one point in the discussions the city offered to help review and restructure the debt. Michelle Weidner, Chief Financial Officer, reported that the city made a loan to Main Street Waterloo in the amount of $250,000, and we are the guarantee on a loan Main Street Waterloo has in the amount of $265,000 for the parking lot. In addition, Main Street Waterloo has a mortgage on property on Lafayette Street for $27,000 and has a ten-year agreement to rent the building for ten years. Councilperson Greenwood stated he does not like the wording on Item Number 3 in the letter. Councilperson Hurley stated the city is not involved as a partner other than assuming debt and playing peace keeper. Councilperson Hurley stated the letter states they are exchanging board members, and he would like a city liaison on those boards. Councilperson Hurley stated this is the first time he has seen the agreement, but by signing the agreement we will have another economic group. Mayor Rooff stated we do not need to sign the agreement today, but it is presented to everyone to let us know what they have worked out. The motion today is to forward a letter to the Iowa Department of Management and Black Hawk County Board of Supervisors to see if they will let us reinstate the SSMID. Councilperson Hurley asked if there is anything from City Attorney Jim Walsh, Department of Management or Grant Veeder. Mayor Rooff responded that Mr. Walsh says once the petition was filed, the SSMID is dropped, but we could send a letter to the Iowa Department of Management and Black Hawk County Board of Supervisors. Councilperson Getty asked what would happen if the Department of Management says it is okay to reinstate the SSMID. Mayor Rooff responded that we would probably have to come back and adopt the ordinance. Councilperson Getty stated this letter from the downtown property owners has absolutely nothing to do with the first petition filed by Rene Dupont. The Iowa State Code says once the petition is filed, it is over. Mayor Rooff stated just today's council action will be forwarded. Councilperson Getty stated he cannot believe these three signatures speak for the 40 percent property owners who signed the petition, and that he does not want to take over Main Street Waterloo's debt. • • March 20, 2003 • Page 3 Councilperson Hurley stated he feels we need to be very careful before we sign the agreement, and the agreement does not show the city as a partner other than assuming the debt. Councilperson Hurley stated he would support forwarding a different letter to the Iowa Department of Management saying we would like to work with these groups. Councilperson Welper stated that in all the meetings he attended nothing was ever mentioned that the city would take over their debt. Mayor Rooff responded that there were discussions that we thought we could restructure their debt, but that taking over all debt is different than what was discussed. Councilperson Hurley agreed that the discussions always talked about restructuring the debt. Mayor Rooff stated if we take the debt over we might find it will cash flow. Mayor Rooff stated we always discussed helping them get back on their feet. Councilperson Hurley stated that on Monday evening they made their problems our problems. We passed three readings of the SSMID ordinance unanimously and asked the groups to come together. Then two minutes after twelve, they perhaps got together. Councilperson Hurley stated we all agree downtown is the cornerstone of our economic development. Councilperson Getty stated the SSMID is a voluntary tax, and the city is only involved because the tax is put on the tax roll. Councilperson Getty stated he does not believe they are all together on this agreement, and that some of the property owners will not pay unless the SSMID tax is certified. Mayor Rooff asked if the council is interested in reinstating the SSMID. Councilperson Getty responded not for one year. Councilperson Greenwood stated he is amiable to reinstating the SSMID, but he does not agree with the city taking over Main Street Waterloo's debt. Councilperson Greenwood stated he is willing to work with them and accommodate putting the SSMID in place, but that Item No. 3 on the agreement changes the complexion altogether. Councilperson Welper stated everyone is in support of rolling this along, but if the property owners are not in agreement, the city should wait for another year. Donna Nelson, 514 Columbia Circle, reported that Item No. 3 on the agreement is open, but if the SSMID is withdrawn the debt is the city's anyway. Ms. Nelson stated that this group felt if they got together they could restructure the debt. Ms. Nelson stated there aren't any groups that work together all the time. Ms. Nelson stated that they came to the city council for help several months ago, and the council kept throwing it back on them instead of giving them guidelines. Ms. Nelson stated that to delay adoption of the SSMID for one year is to delay downtown revitalization for one year and the loss of property owners. Ms. Nelson stated the city had plenty to do with the debt, not just Main Street Waterloo. Ms. Nelson stated the downtown needs to get back to economic development. Mayor Rooff stated the city worked very hard to bring everyone together. Councilperson Getty stated it was Dupont's group who filed the petition with the City Clerk, and that petition stopped everything. Ms. Nelson stated that the downtown is not just the responsibility of downtown property owners, but the entire city. Mayor Rooff stated he has been at over 15 meetings trying to save and restructure this group, and that the city council is for revitalization of the downtown. Mayor Rooff stated that downtown revitalization will not stop because of the SSMID. Marty Dickey stated he signed the agreement for Rene Dupont. Mr. Dickey stated that Dupont's group started circling these petitions over one year ago. They talked to people signing the petition saying they did not feel downtown property owners should be responsible for the parking lot and the Marsh Building. Mr. Dickey stated they met with a lot of people, and they said they did not want to be responsible for these debts. Mr. Dickey stated that in a group meeting, a number of property owners said kill the tax. Mr. Dickey stated they then discussed setting aside money for economic development, and the group said yes if the money could be set aside for economic development they would favor the tax, if not to kill the tax. Mr. Dickey stated there are some people who will never want to sign up for the tax, but the majority will if we can restructure what the funds will be used for. March 20, 2003 Page 4 Jim Walsh, City Attorney, asked Mr. Dickey if he represents the 40 percent property owners who are on record of objecting to the SSMID. Mr. Dickey responded that he believes they could represent the majority of the 40 percent. Mr. Walsh stated the city needs to deal with that petition, and he does not know how to fix the record to help the council. If 25 percent of the property owners reject reinstatement of the SSMID, it would take an unanimous vote of the council, and if less than 25 percent reject the SSMID, it would take a three-fourths vote of the city council. Mr. Dickey stated that a majority agree to restructuring the debt. Mr. Walsh reported that the State Code does not deal with this motion, and it is meaningless in terms of the SSMID. Mr. Walsh stated the time element is extremely important because if the council brings back reinstatement of the SSMID, we would have to propose a new ordinance and do all the readings. Jordan/Hurley that "Resolution authorizing forwarding a letter to the Iowa Department of Management and Black Hawk County Board of Supervisors requesting to review reinstatement of the Self -Supported Municipal Improvement District (SSMID)" be adopted. Prior to a vote on the above motion, the following comments were heard. Councilperson Welper stated that if this doesn't pass the Iowa Department of Management and Black Hawk County Board of Supervisor, this motion is moot. Councilperson Getty asked what letter will be sent. Mayor Rooff responded that Mr. Walsh will draft a letter explaining the circumstances and ask what can the city do. Councilperson Kincaid asked if we need to add restructuring of the debt to the motion. Mayor Rooff responded that their decision will have nothing to do with restructuring Main Street Waterloo. George Warren reported that he talked with Steve Ford. Ms. Weidner stated she talked with Mr. Ford before certifying the FY04 Budget since the SSMID was dead because of the petition filed. Mr. Warren stated Mr. Ford gave him the state code, and it appears the city has to May 31 to file when it is beyond the council's control. Mr. Walsh stated the group needs to get a record made of who is not objecting any more and try to get those objecting below 25 percent. Following comments a vote was taken on the above motion with the following result. Ayes: Five. Nays: Getty. Absent: Clark. Resolution adopted and upon approval by Mayor assigned No. 2003-187. 117946 - Jordan/Hurley that the Council adjourn at 8:50 a.m. Ayes: Six. Motion carried. Nancy ckert City Clerk • •