Also present were Renee Cron, Rich Romness, Jackie Atkinson, Joe Hennen, Traci Ryan, Ron Hommerding, Steve Johnson and City Clerk Joe Heinen.

Old Business

Appearing on behalf of Dave Anderson of Anderson Concrete Homes was Ron Hommerding, an architect retained by Anderson to work through the state required corrections to be made to the concrete cast homes started in 2001 within Welle's Country Acres. He stated that plans are being redrawn for the structures but the walls are strong enough although they are tipped outward. He indicated that he would keep the city abreast of his work and whether the state has accepted the changes made to the homes.

Steve Johnson, manager for the U.S. Cable TV office in Cold Spring, appeared to speak about some of the local cable issues, including the public access channel. After discussing the optional equipment needs for the city, Mayor Atkinson hinted at the fact that the City of Freeport might want to work with Melrose while using some of their programming. In the end, Johnson suggested that he would strongly encourage Freeport to be the recipient of up to $5,000 in new equipment as part of the upcoming franchise renewal process. Johnson also asked the city to adopt the resolution that would approve the change in ownership holding with AT&T Comcast controlling a majority of 52%.

Boelter moved for the approval of said resolution, s/Humbert, and with a roll call vote,

Boelter and Humbert voted aye, Heidgerken and Atkinson nay and Thelen abstained, whereby the motion failed. Johnson then stated he would forward more information for the council to consider in time for their July 31st meeting, when it was assumed the action on the pending resolution would again be entertained.

New Business

With Romness on hand, he provided members with a cover letter that recommended the awarding of construction contract for the Industrial Park and 7th St. SE improvement projects, after bids were opened the previous day and he had verified the quantitative prices. This list of bidders, their separate bids for both phases and the total amount were indicated:

Firm Part A Part B Total

  • Kuechle Underground 289,074 28,190 317,264
  • JR Ferche 298,321 29,023 327,344
  • R. Kramer Excavating 298,897 29,628 328,525
  • Molitor Excavating 316,399 29,236 345,635
  • Larson Excavating 322,441 33,004 355,445

After hearing that the estimate of Bolton & Menk for both phases was $353,000, Heidgerken then moved for adoption of Resolution No. 2002-17, a "Resolution Accepting Bids for 2002 Public Facilities Improvements", with a second offered by Humbert. Romness suggested that the motion contain the condition that a purchase agreement with Pat Ellingson is in place first before the city enters into the agreement and the maker of the motion consented to this stipulation. With that, the motion was approved by a majority vote of 5-0.

Traci Ryan introduced a revised spreadsheet to reveal that David Drown Associates was recommending the sale of a $360,000 bond to finance the Industrial Park improvements.

Her data suggested that the city could rely on recovering some of the sewer, water and street improvements through the creation of a tax increment district. This then, would result in the city levying a tax of some $7,500 annually to aid in paying off the bonds, even if future lot sales amounting to $45,000 would occur over the next 10 years. Along with her information, a letter from Jim Hemker, representing the Freeport State Bank, offered to purchase the bonds at a negotiated rate of 4.30% over the life of the 15 year bond. Humbert moved to accept the terms of the sale and authorize the firm of David Drown Associates to prepare the necessary resolution and other documents relating to the sale. Boelter seconded the motion and by a roll call vote, the motion was adopted by all. Members were concerned about one of the conditions put forth in the bank's letter of terms and conditions and this spoke to the requirement that the city would deposit any unused funds of the proceeds within a money market account at the bank. The mayor and others objected to this condition and asked Ryan to revise this requirement and leave the investment method up to the city's option.

The matter of creating a TIF District 1-2 was next considered and it was felt that no such district would be in place without conducting a hearing first. With that, Ryan produced a draft Resolution No. 2002-18, a "Resolution Calling for a Public Hearing on the Creation of TIF District 1-2 And the Financing Plan Relating Thereto". Thelen moved for the adoption of said Resolution 2002-18, s/Boelter, and by roll call vote, the motion was approved with all voting in the affirmative, 5-0.

Discussion then focused on the fees relating to both the fiscal consulting of the bond sale negotiations of $5,500 and the Drown Associates costs of $4,500, plus incidental fees not to exceed $250 for the work surrounding the TIF plan and documents. Heidgerken moved to approve the former agreement, s/Boelter and this motion was passed, 5-0.

Humbert then moved for adoption of the contract for TIF work, s/Thelen, and after a brief discussion on the labor and materials involved for this fee, the call for adoption was ratified with no dissent.

Two draft lease agreements, provided by City Attorney Scott Dymoke and addressed in a cover letter supplied by him, spoke about the pending documents as they related to Franklin Sign Company. After noting that these agreements would involve the signatures of not only the Franklin representatives, but the Middendorf Bros. Partnership as well, since the city did not yet own any of the lands impacted, Thelen introduced a motion to have the originals forwarded on to the proper parties but that a separate clause be added that would prohibit the Middendorfs' from entering into any future lease agreements for billboard sites until the option agreement between the city and Middendorfs' is in force and also stipulate that any reference for installing an access road for Franklin Sign be limited as to the type of base, in that no added expense be incurred for class 5 fill.

Heidgerken seconded the motion and by a voice vote, the motion passed unanimously.

Proposals from Caldwell Asphalt for making certain street and alley repairs in the amount of $19,957 were set aside, however, a three year seal coat plan for years 2003-2005 was acknowledged as a good recommendation for the city to follow. This was followed by a discussion on dust control and after reviewing a map of streets and alleys prepared by Maintenance Supervisor Joel Dasher, Heidgerken moved to have the clerk contact Oak Township and secure the name of their contractor for purposes of placing chloride along the east segment of 7th Street SE only. Humbert seconded the motion and all voted in favor of this remedy.

After hearing the clerk explain his extensive time spent on the Judy Hoppe burnt out dwelling, including the interaction with Ameriquest Mortgage, the council felt confident that proper procedures, consistent with the city code, had been followed in attempting to demolish the structure in question. After debating the pros and cons of ordering its demolition and lot cleanup, Boelter moved that the city engage the low bidder of Thull Excavating in the amount of $2,800 to move ahead with this project, in accordance with city code section 600.09 and place the inspection report from the building official in the file on this nuisance. Humbert seconded the motion and by a roll call vote, all members voted in favor of this action.

With no other business to come before the group, the meeting was adjourned by general consent at 10:35 P.M.