MINUTES OF THE REGULAR MEETING OF THE HILLS CITY COUNCILSEPTEMBER 13, 2004Mayor Jim Jellema called the meeting to order at 6:05 P.M. with the following Council present: Jim Jellema, Linus Svoboda, and Dana Dahlquist. Council absent: Keith Elbers. Employees present: Connie Wiertzema, City Clerk; Joanne Goehle, City Treasurer; and Wayne Ward, City Maintenance. Guests present: Ross Metzger, Tom Houselog-Rock County Assessor, Dean Goettsch, Gerald Haak and Wilmer Elbers. Motion by Svoboda, seconded by Dahlquist to approve the minutes of August 10th and September 8th. Motion carried. Motion by Dahlquist, seconded by Svoboda to approve payment of the August expenditures: General $7,284.37; Park $2,967.64; Fire $2,606.51; Street $2,314.32; Legion $627.41; Sewer $959.44; Garbage $2,951.16; Recycling $492.35; Water $4,197.36; Baseball $29.00; Softball $1,044.01; Law Enforcement $8,944.00. Motion carried. General Checking 96,764.29General Fund CD#18197, 2.5%, 12/4/04 240,288.97General Fund CD#17792 (prev. #15742) 2.5%, 5/29/03 – cashedin 6/3/03General Fund CD#17760 (prev. #17573) 2.5%, 3/15/05 20,994.17Sewer Fund CD#17877 (prev. #17433) 2.5%, 10/18/03 – cashed in 10/03 – ($21,000 to general)Sewer Fund CD#18255, (prev. #18171) 1.5%, 7/19/04 – inter-fund loan to Southern Hills Apts. to pay off apt. bond - $70,771.64Fire Truck Replacement Fund CD#18237, 1.5%, 1/11/05 23,228.20Hills EDA Security Deposit Account 2,414.23Hills EDA Checking – Acct. #1248 11,288.17Southern Hills Apt. Acct. #1255 8,213.32Southern Hills Condo Acct. #1263 -1.86Southern Hills CD#17759 (prev. #17572) 2.5%, 3/15/05 5,248.54EDA CD#17850 (prev. #17384) 2.5%, 5/7/05 28,313.93EDA CD#18275 (prev. #17268) 1.25%, 07/04 – inter-fund loan toSouthern Hills Apts. to pay off apt. bond - $10,661.76EDA CD#18160, 1.5%, 10/17/04 20,000.00EDA CD#18505, .75%, 8/24/04 10,668.55TOTAL $467,420.51Motion by Dahlquist, seconded by Svoboda to approve the Treasurer’s report. Motion carried. Tom Houselog, Rock County Assessor, attended the meeting to discuss the proposed cost increase in the Assessment Agreement for 2005. The county is proposing the renewed contract at $5,665, compared to the 2004’ contract at $4,700. The current parcel count in Hills is 360 parcels, costing $15.74 per parcel at the proposed rate. A motion was made by Svoboda, seconded by Dahlquist to contract with Rock County for two years at $15.75 per parcel ($5,665) for 2005; with an additional four percent increase in 2006 for a total of $5,892. Motion carried. Houselog also informed the Council that the Southern Hills Condo Association is not eligible to be taxed under the 5% PILOT agreement, due to changes in the use of the building, and that the bond is paid off. Estimated tax computation sheets were reviewed for each condo unit. Houselog also informed the Council of taxes on the City’s property located on North Church Avenue of approximately $30 per year. Dean Goettsch from Exchange State Agency reviewed the City’s insurance policy renewal and updated rate changes. Liability insurance, based on the City’s expenditures, has decreased by 5%; and property insurance has increased by 10 percent. A motion was made by Svoboda, seconded by Dahlquist to continue to waive the statutory limits for liability coverage. The Council approved the proposed policy, with no changes. Motion carried. Wilmer Elbers and Gerald Haak, representing United Enterprises, attended the meeting to discuss the sale of lots in Block 2 of Park View Third Addition to the City of Hills or Hills EDA. United Enterprises offered to sell Lot 1 for $11,000; Lot 2 for $11,500; and Lot 4 for $11,500. No action was taken at this time. Elbers and Haak will contact their realtor regarding any fee.Ward reported that complaints of rusty or discolored water were not as significant this past month. Jellema noted that there are still problems for two blocks along South Anna Avenue. Discussed whether there is a need for a culvert at the northeast corner of West Second Street and South Church Avenue. The Council agreed to wait until Push, Inc. has packed and replanted grass in the boulevard following cable installation.Pending the availability of funds through the township or county, the Council agreed to spray for mosquitoes at Ash Creek at $85 per hour, plus the cost of chemical. Ward inquired whether the City would consider hauling dirt for Kerkhove’s new home construction for $25 per hour. The Council refused, as the rental fee remains at $40 per hour for equipment, plus labor at time-and-one-half per hour. An insurance claim will be submitted for the replacement of a garage door. Discussion on whether to tear down the garage near the water tower was tabled pending insurance claim information.Motion by Dahlquist, seconded by Svoboda to purchase a 1979 Elgin Pelican street sweeper for $12,000 with funds from the general checking account. Motion carried. Ward inquired whether the Council had made a decision on a communication system for city maintenance to keep in contact with his home for emergency purposes. No action was taken. Plans to install handicap accessible pathways at Rez Park, using class II crushed rock, will be discussed next spring.Motion by Dahlquist to nominate Keith Elbers to serve as Mayor Pro-Tem, in place of Arlen Leenderts, throughout 2004. Motion seconded by Svoboda and carried. Motion by Dahlquist, seconded by Svoboda to accept an LP contract from Popkes Car Care of $1.049 per gallon through March 31, 2005. Motion carried. Discussion regarding the assessment of blacktop costs was tabled until the October meeting. The Council reviewed a revised draft of the proposed 2005 budget. Motion by Dahlquist, seconded by Svoboda to reduce the street fund expense an additional $4,300; and approve of the proposed 2005 budget as discussed. The total proposed property tax for 2005 is $55,447, compared to $50,016 in 2004. The Council set their Truth-in-Taxation meeting for December 14th at 6:00 P.M.Motion by Svoboda, seconded by Dahlquist to approve of a building permit for John DenBesten to construct a patio. Motion carried. No further discussion, meeting adjourned at 8:25 P.M.Connie J. WiertzemaCity Clerk(9-23)