July 6, 2015

Posted: July 6, 2015

Present: Holthaus, Langreck, M. Meyer, Bushman.
Absent: E. Meyer.

Zak Kriener from the Ossian Bee was present during the meeting. Penny Hertges and Paul & Carolyn Rael were present and participated in the discussion regarding the franchise fees.

Mayor Covell called the meeting to order at 4:55 p.m.

Officer Ward reported a conditional offer has been made for the police officer’s position left vacant when Officer Peters resigned. The likely start date would be late July or early August. The new hire will be attending the police academy in late August through mid December. Ward also reported there have been no leads on the vandalism that took place in June but surveillance cameras did identify there was one male and one female involved with the incidents.

Steve Steinberg asked the Council if there was any type of assistance from the City to help with expenses resulting from a water leak in his service line. It was explained to Steinberg, the property owner is responsible for all cost associated with the installation and maintenance of the water service line from the city’s water main all the way into the house.

During the Mayor’s report, Mayor Covell announced he would not be seeking re-election and will be stepping down when his term expires on December 31, 2015.

Holthaus made a motion approving the following consent items June 4, 2015 council minutes, clerk’s reports and the monthly bills, seconded by Bushman, carried, one absent.

Mark Jobgen, the city’s engineer working on the Jessie, Brooks, West Street Project presented the preliminary design of the project to the Mayor and Council. Jobgen went over the plan for clarification from the Council to determine if changes were needed before the final plan was drafted. Jobgen explained because of the funding the City is receiving, the final plans will need to be IDOT ready and comply with their regulations. The project is slated for FY16/17.

Bushman made a motion approving Change Order #1 for the Hall Street Pumping Station Project decreasing the amount of the original construction contract of $126,437.00 by $1,375.50 bringing the amount of the contract to $125,061.50, seconded by M. Meyer, carried, one absent.

M. Meyer made a motion approving Contract Payment #1 for the Hall Street Pumping Station Project in the amount of $118,808.42 to F.L. Frapfl, Inc., seconded by Langreck, carried, one absent.

M. Meyer made a motion introducing Resolution #558, a resolution accepting the Hall Street Pumping Station 2014 Project as completed, seconded by Holthaus.
Whereas the Mayor put the question on the motion and the following named Council members voted:
Ayes: Holthaus, Langreck, Bushman, M. Meyer.
Nays: None. Absent: E. Meyer.
Thereupon the Mayor declared said motion approved.

The Mayor and Council explained to residents attending the meeting the option available to the City to implement a franchise fee on both the residents electric and natural gas utility bills. They noted when a franchise fee is
implemented, the local option tax on the utility bill is removed (the local option tax is still collected by other retail sales inside the City). By swapping a franchise fee for the local option tax on the electric and gas bills, the City keeps 100% of the revenue collected from the utility customers located inside the City. Unlike local option tax revenue which gets distributed to entities county wide. Following discussion it was the consensus of the Council to go with a 2% franchise fee on both Alliant Energy and Black Hill’s Energy utility bills. Since there would not be a 1% Local Option Tax collected on the bills with a franchise fee, the net increase to both the gas and electric bills would be 1%.

Langreck made a motion authorizing the City of Ossian to establish a two percent (2%) utility franchise fee for both Alliant Energy for the sale and distribution of electric energy and Black Hills Energy for the sale and distribution of natural gas within the City of Ossian, seconded by Bushman, carried with M. Meyer voting no and one absent.

Bushman made a motion introducing Resolution #557, a resolution approving and adopting a revenue purpose statement for the use of revenue from electric and natural gas franchise fees, seconded by Holthaus.
Whereas the Mayor put the question on the motion and the following named Council members voted:
Ayes: Holthaus, Langreck, Bushman, M. Meyer.
Nays: None. Absent: E. Meyer.
Thereupon the Mayor declared said motion approved

M. Meyer made a motion setting a public hearing for August 3, 2015 at 5:00 pm on proposed ordinances establishing a 2% franchise fee on both Ossian resident’s Alliant Energy and Black Hills Energy’s utility bills, seconded by Bushman, carried, one absent.

Bushman made a motion introducing Resolution #556, a resolution directing the clerk to publish notice of hearing on the adoption of the proposed Code of Ordinances of the City of Ossian, Iowa, seconded by Langreck.
Whereas the Mayor put the question on the motion and the following named Council members voted:
Ayes: Holthaus, Langreck, Bushman, M. Meyer.
Nays: None. Absent: E. Meyer.
Thereupon the Mayor declared said motion approved

Holthaus made a motion approving Ossian Crown Club’s application for a Beer Permit w/Outdoor Service, seconded by M. Meyer, carried, one absent.

Bushman made a motion approving a building permit for Nora Hemesath and Duane Einck, seconded by M. Meyer, carried, one absent.

The Mayor and Council reviewed the sample Urban Revitalization Plan prepared by Attorney Zahasky. It was concluded more thought and discussion is needed before a plan is put in place.

Bushman made a motion to adjourn, seconded by Holthaus, carried, one absent. Meeting adjourned at 6:45 p.m.