May 6, 2019

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Madrid City Council
Regular Meeting
May 06, 2019
5:30 p.m.

The City Council meeting was called to order at 5:30 p.m. with Mayor Tom Brown presiding.

Present at Roll Call: Nate Samples, Steve Burich, Marvin Ostrander and Lane Shaver. Chuck Rigby was absent.

Other City Officials Present: City Clerk Mary Jo Reese, Public Works Director Scott Church, Public Safety Director Rick Tasler, Library Director Angie Strong, Fire Chief Scott Maddux, Rescue Captain Randy Pecenka, Board of Adjustments member Randy Dalton, Labor Day Commission Chairperson Lacey Ortiz and City Treasurer Don Fatka.

Motion by Councilperson Shaver, second by Councilperson Samples to approve the agenda for May 6, 2019.

Ayes: All Present                                                                 Motion Carried

Motion by Councilperson Shaver, second by Councilperson Ostrander to open a public hearing regarding the upcoming Elementary School Streets Reconstruction Project. Denise Moore of 2267 S. Avenue, Madrid, approached the Council to question why the entire city population is paying for curb and gutters for the project as opposed to adjacent property owners being assessed the cost as has been done in the past. She feels there is a large retired population in Madrid who cannot afford to have their taxes raised due to the cost of the project. She feels the Madrid School District should participate in the cost. Mayor Brown explained the school district does not have the legal authority to spend money to maintain property they do not own, such as the street. Lee Barkley of 504 Milwaukee Street, Madrid stated he also feels the adjacent property owners to the project should pay for the curb and gutter portion of the project. Don Lincoln of 1672 334th Road asked the Council if moving forward, when curb and gutter projects are being done, would the adjoining property owners be assessed as has been the policy in the past. Councilperson Samples also asked if the city was setting a precedent by not assessing the adjacent property owners. Motion by Councilperson Shaver, seconded by Councilperson Burich to close the public hearing.

Ayes: All Present                                                                 Motion Carried

No conflict of interest declarations was declared by any member of the Council.

Motion by Councilperson Ostrander, seconded by Councilperson Samples to approve the City Council meeting minutes of April 15, 2019, Planning and Zoning meeting minutes of April 11, 2019 and Labor Day meeting minutes of April 2, 2019.

Ayes: All Present                                                                 Motion Carried

Motion by Councilperson Burich, seconded by Councilperson Shaver to approve the claims for May 6, 2019 in the amount of $194,404.63

Ayes: All Present                                                                 Motion Carried

Nathan Summers, of D.A. Davidson, and financial advisor for the City, approached the Council to discuss the recent Standard and Poor’s rating decrease. In his discussions with Standard and Poor’s he learned that much of the rating decrease involved the movement of money out of the general fund, which showed as a negative impact on the ratings score. Money was moved from the general fund during the last two years into the proper funds. Standard and Poor’s did not have that information when the city was previously rated. Summers feels the city has done the proper thing by allocating the money to the proper accounts. He highlighted strong management and current financial policies and amortization of current debt as positives points in the rating. Summers recommended to the Council that the awarding of the bonds go to the low bidder, UMB with a rate of 2.78%. Four bids were received. He feels the rate is very strong compared to other bond transactions in the market. Due to the cost overruns from the contractor’s bids, it was decided to borrow the maximum amount of $2.5 million. Summers explained that due to the low interest rate received, the principal and interest payment will stay level with previous estimates. He shared the other bids received for the bonds, and explained he used the actual bid amounts for the elementary school and Highway 210 projects in his calculations.

Don Lincoln of Nerem and Associates updated the Council regarding sales activity for city owned property at 246 West 2nd Street. He advised there has been some interest in the property, however, a recent potential buyer had an engineer inspect the building and discovered that the south wall, and one third of the west wall will need to be rebuilt from the ground up. He estimates total cost to restore the outside would be around $300,000, plus the cost of interior work.

Madrid Area Chamber of Commerce chairperson, Travis Risvold reported a successful city-wide garage sale day, “Food Truck Thursday’s” will be this week at Jensen Park from 6-8 p.m. MAC is currently working on new signage for the trail map, and trailhead sign. The next MAC open house will be May 16th at 5:00 p.m. at Victorian Air BnB. He invited everyone from the City Council to attend MAC meetings. Risvold also stated there is a subcommittee that is looking into the matter of fiber optics for Madrid. He will discuss that subject as more information becomes available.

Public Works Director Scott Church asked the Council to approve an expenditure in the amount of $70,930 for asphalt overlay on various areas of the city. The Council asked that Church obtain two more bids for the work before approval is granted.

Perry Gjservik of SEH Engineering discussed the bids received for the elementary school street project and advised the bids did come in over the estimate. He shared the bid tabulations from the three bids received for the project. He recommended the Council approve the bid submitted by Absolute Concrete of Slater for $1,396,665. Gjservik stated several factors resulted in bids coming in over estimate, one being the timing of the project as many contractors are already booked for the upcoming construction season, also the project needs to be done during the summer months and is being split into two stages.

The topic of who should pay for curbs and gutters for the project was discussed again. That issue will be discussed at a future date. Motion by Councilperson Ostrander, second by Councilperson Burich to approve the bid as submitted from Absolute Concrete Construction.

Ayes: Burich, Ostrander, Shaver                Nays: Samples                       Motion Carried

Scott Church asked the Council to approve a salary increase for Mike Forristall who recently took the job as water plant operator. He has been employed by the City of Madrid for 18 years and has all his certifications needed to operate the water and sewer plants. Motion by Councilperson Samples, seconded by Councilperson Burich to increase the salary of Mike Forristall to $31.03 per hour due to the reclassification.

Ayes: All Present                                                                 Motion Carried

Lacey Ortiz of the Madrid Labor Day Commission advised the Council she obtained three bids from vendors to supply bounce houses and labor for the Labor Day Celebration. Ortiz asked the Council to approve a bid from JP Party Rentals in the amount of $3,959. The contract will include various bounce houses or slides for ages from toddler to teens. Motion by Councilperson Shaver, seconded by Councilperson Samples to approve the awarding of contract.

Ayes: All Present                                                                 Motion Carried

Ortiz reported the commission is considering adding spin art, kiddy corner and a Fortnite tournament. A balloon artist has been hired and bands have been scheduled for all days. Most bands are being sponsored with donations.

Library Director Angie Strong reported the library has partnered with other Iowa libraries to offer an “Adventure Pak. If you have a valid Madrid Library card, you can get free passes to area recreational attractions. The passes can be accessed through the Madrid Library website. She advised she plans to replace the flooring in the meeting room at the library. She will be hosting all three library classes at the library during the upcoming week for a tour. Upcoming events include Early Out Lego Crew, Movie Night with the Lego Movie 2, Chess Club, Adult Coloring and Family Board Game Night.

Mayor Brown noted a summary for Park Board information received from Jolynne Carlson and asked that the information be placed on the City of Madrid website.

Rescue Captain Randy Pecenka stated he has been working on junk vehicles with Rick Tasler. He asked the Council to approve using the parking area next to the post office for a Jaws of Life Training. He also advised the computer system currently used at the Fire Department needs to be updated and connected to the City of Madrid server. He presented the Council with an assessment of their current computer system.

Fire Chief Scott Maddux reported there have been 16 rescue calls and no fire calls during the last two weeks. He advised Joanna Spence has been brought up as a probationary member of the fire/rescue department. She was previously the public relations officer for the department. The grass truck has been repaired and parts for the pump have been ordered. The annual Fireman’s dance has tentatively been scheduled for July 27th. He advised of an upcoming training drill planned with Black Hills Energy. He will also be scheduling mandatory radio classes.

Motion by Councilperson Samples, seconded by Councilperson Shaver to approve the first reading of Ordinance #488, “An Ordinance Amending the Code of Ordinances of the City of Madrid, Iowa, 2018, by Adopting the Terms of this Code of Ordinances Which Establishes the Planning and Zoning Commission.” This sets the public hearing for May 20, 2019 at 5:30 p.m.”

Ayes: All Present                                                                 Motion Carried

Police Chief Rick Tasler advised there is a fox family living off the High Trestle Trail. He asked that anyone coming in contact with the family to leave them alone. They will not hurt people. He is also busy removing junk vehicles from the city.

Motion by Councilperson Ostrander seconded by Councilperson Burich to open a approve the third reading of Ordinance #490, “ITC Franchise Agreement”.

Ayes: All Present                                                                 Motion Carried

Motion by Councilperson Shaver, seconded by Councilperson Samples to set the date for the FY 19 budget amendment for May 20, 2019 at 5:30 at City Hall.

Motion by Councilperson Shaver, seconded by Councilperson Ostrander to approve Resolution # 27-18-19, “Resolution Authorizing and Approving a Loan Agreement Providing for the Sale and Issuance of General Obligation Corporate Purpose and Refunding Bonds, Series 2019 and Providing for the Levy of Taxes to Pay the Same.”

Ayes: All Present                                                                 Motion Carried

Motion by Councilperson Shaver, seconded by Councilperson Ostrander to approve a request for liquor license from Sisters in Cheese.

Ayes: All Present                                                                 Motion Carried

The Council discussed choosing a date for a work group that would consider changes to some of the City of Madrid Ordinances. A date will be chosen at the next City Council Meeting on May 20th. He stressed that all Councilpersons are expected to review the proposed changes to the ordinances before the meeting.

Councilperson Samples gave some members of a Code of Ordinances book, complete with updated ordinances. He stressed that the book should be returned to City Hall at the end of their term on the City Council.

The Council considered the appointment of Shevaghn Moore to the Senior Activities Commission. Moore introduced herself to the Council and expressed her desire to volunteer in the community. Motion by Councilperson Samples, seconded by Councilperson Ostrander to approve the appointment. Commission member Martha Furness advised that she and other volunteers cleaned out the basement in the SAM Center building. She also advised some work needs to be done to the outlets at the center.

Ayes: All Present                                                                             Motion Carried

Don Lincoln, representing Friends of the Trail approached the Council to ask permission to move the Coal Miner display from its present location on Highway 17, to a new location at the Dalander Trailhead. Once moved to the Trailhead, it would become part of the Madrid park system, and would be maintained by the City. Lincoln also advised the group is looking at moving the site of the planned Coal Miner entrance along the trail to another location due to heavy snow run off in the original location.

Lincoln is still working on a Madrid cleanup day, and asked the City’s support of the event. He will present more information to the City Council at an upcoming meeting.

Kurt Kruse of 805 South Union Street approached the Council to thank public works for placing rock in the roadway in front of his home where it washes out. He advised he had received a threatening voicemail on his phone from a Councilmember. He asked Mayor Brown if his appointment to the Senior Activities Commission was still being considered. Mayor Brown advised he would be happy to have a person to person conversation with Kruse considering the matter.

Jake Vaughn of 510 South Market Street approached the Council to express his concern with parking near the corner of South Market and West 6th Street. He would like no parking signs placed on the road near the area as it’s a blind corner when cars are parked near the corner.

Lacey Ortiz thanked Public works for rock placed at the end of her driveway. She thanked the Council for its support of the Community Garden.

Councilperson Samples thanked the Fire Department for its handling of a recent gas leak at his residence. He reported he received a complaint about Police Officer Mackey concerning his fast driving during a recent traffic stop. Samples reviewed the film of the incident and the fastest he drove was 45 mph in a 35 zone.Police officers do not always run with lights on for safety. He did reach 50 mph once he was out of the congested area of town.

Councilperson Burich explained he plans to side with the rights of citizens during upcoming issues.

Councilperson Ostrander noted a pool being built at a new home near Edgewood Park does not currently have a fence, however the project is not complete.

City Clerk Mary Jo Reese reported she, Scott Church and Deb Biegger had met with a representative from FEMA recently. The FEMA representative shared the new preliminary flood plain maps for Madrid. The new maps would remove several residences from the flood plain. The new map will not be official until sometime in 2020.

Motion by Councilperson Shaver seconded by Councilperson Samples to adjourn the City Council meeting at 7:37 p.m.