1.  CALL MEETING TO ORDER
 
A regular meeting of the City Council was called to order by President Mielke at 7:00 p.m. in the Council Chambers of the Municipal Building.

2.  ROLL CALL
 
On call of the roll, members present were:

LaVerne Behrens
John Mielke
Jim Simdon
Steve Tesmer
Mark Zastrow
Also present were the City Manager, City Engineer, City Attorney, City Clerk/Treasurer, Fire Chief and Water Utility Supervisor.

3.  APPROVAL OF MINUTES OF JANUARY 15, 2008 REGULAR COUNCIL MEETING
 
Cm. Zastrow, seconded by Cm. Simdon, moved to approve the minutes the January 15, 2008 regular Council meeting. The motion carried on a voice vote.

4.  PUBLIC HEARINGS
 
    None.

5.  PETITIONS, REQUESTS AND COMMUNICATIONS
 
    a.  REQUEST BY RIDE 4 CURE/CANCER CURE FEST TO HOLD ANNUAL EVENT ON JUNE 27-28, 2008 ON MADISON AVENUE BETWEEN PIZZA HUT AND GOODWILL.

Cm. Zastrow, seconded by Cwmn. Behrens, moved to approve the request by Ride 4 Cure/Cancer Cure Fest to hold its annual event on June 27-28, 2008 on Madison Avenue between Pizza Hut and Goodwill, with the stipulation that music end at 10:00 p.m. The motion carried on a voice vote.

    b.  REQUEST TO REZONE 233 AND 301 SOUTH WATER STREET EAST FROM C-2 TO R-2.

The City Manager stated this item should be referred to the Planning Commission and a public hearing should be scheduled for March 4, 2008 to move the process along. The zoning change needs to be made in order for the property owners to refinance their homes.

Cm. Simdon, seconded by Cm. Tesmer, moved to refer the request to rezone 233 and 301 South Water Street East from C-2 to R-2 to the Planning Commission and to set a public hearing for March 4, 2008. The motion carried on a voice vote.

    c.  REQUEST FOR VARIANCE TO 2,500-FOOT SEPARATION REQUIREMENT AND 1% POPULATION REQUIREMENT FOR A COMMUNITY BASED RESIDENTIAL FACILITY TO BE LOCATED AT 318 NORTH MAIN STREET.

Cm. Tesmer, seconded by Cm. Simdon, moved to approve the request for a variance to the 2,500-foot separation requirement and 1% population requirement for a Community Based Residential Facility to be located at 318 North Main Street, contingent on receiving all applicable licensing and complying with City Zoning Ordinances. The motion carried on a voice vote.

6.  RESOLUTIONS AND ORDINANCES
 
    None.

7.  REPORTS OF OFFICERS, BOARDS AND COMMITTEES
 
Cm. Zastrow, seconded by Cwmn. Behrens, moved to accept and file the minutes of the Planning Commission meeting held January 22, 2008; the minutes of the Historical Society Board meeting held December 20, 2007; and the minutes of the Historic Preservation Commission meeting held January 8, 2008. The motion carried on a voice vote.

8.  UNFINISHED BUSINESS
 
    a.  RECOMMENDATION FROM PLANNING COMMISSION TO APPROVE PLAT FOR ST. JOSEPH'S CEMETERY - 2008 ADDITION, AND RESOLUTION.

The following resolution was displayed on the overhead projector at this time:

RESOLUTION NO. 1129

WHEREAS, at their regularly scheduled meeting of January 22, 2008, the Fort Atkinson Planning Commission did review and approve the Plat for the 2008 Addition at the St. Joseph's Cemetery; and

WHEREAS, at their regularly scheduled meeting of February 5, 2008, the Fort Atkinson City Council did review and approve the Plat for the 2008 Addition at the St. Joseph's Cemetery.

NOW THEREFORE, BE IT RESOLVED, that the Cemetery Plat of the 2008 Addition, St. Joseph's Cemetery Association owner, is hereby approved by the Common Council, City of Fort Atkinson.

Cm. Zastrow, seconded by Cwmn. Behrens, moved to approve the Plat for St. Joseph's Cemetery - 2008 Addition and to adopt the Resolution. On call of the roll, the motion carried unanimously.

9.  NEW BUSINESS
 
    a.  REVIEW AND AWARD BIDS FOR BOOSTER PUMP STATION EQUIPMENT AND STANDBY GENERATOR.

The City Manager stated in order to save on sales tax and expedite a few things, staff is requesting permission to purchase the Prepackaged Booster Pumping Equipment from Barreau Equipment Group for $85,415 and the Standby Generator from Wolter Power Systems for $67,204. Barreau Equipment Group and Wolter Power Systems were the two low bidders. The original estimate was about $100,000 for each piece of equipment, so these bids came in substantially lower than expected.

Cm. Simdon, seconded by Cm. Tesmer, moved to award the bid for the Prepackaged Booster Pumping Equipment to Barreau Equipment Group in an amount not to exceed $85,415 and the bid for the Standby Generator to Wolter Power Systems in an amount not to exceed $67,204. On call of the roll, the motion carried unanimously.

    b.  UPDATE ON FINANCIAL STATUS OF HISTORICAL SOCIETY'S HOARD TRUST FUNDS.

The City Manager stated annually we need to report to the Council the accounts for the Hoard Trust Fund. One account is managed by the City and one is managed by the Historical Society. The City's Fund was established in 1999 at $739,000 and at the end of 2007 is at $765,000, even after taking $100,000 out for the Hoard Legacy Building Program as well as a number of allocations throughout the years for operation and maintenance. The City Fund is still in great shape and the Historical Society Fund is similar with a balance of $662,888.91 at the end of the year.

Cm. Tesmer, seconded by Cm. Simdon, moved to accept and file the 2007 Historical Society Trust Fund Reports. The motion carried on a voice vote.

    c.  REVIEW ANNUAL REPORTS FROM CITY DEPARTMENTS FOR 2007.

    d.  REVIEW AND APPROVE AGREEMENT FOR LEVEL B HAZARDOUS MATERIALS RESPONSE TEAM.

The City Manager stated the City has been working with both the County and Lake Mills on putting together a Level B Hazardous Materials Agreement. One of the biggest concerns the City had was who is the ultimate responsible party. The City of Fort Atkinson and the City of Lake Mills were not willing to be the responsible party for anyone in the County that the team would respond to. The County was finally convinced that they have a bigger tax base in which to spread the cost over and to take on the responsibility.

Both City Fire Department staffs are already trained and ready to go and have the equipment stored in the Lake Mills Fire Department facility. Lake Mills and Jefferson County are also adopting this agreement.

The Fire Chief stated there are four different types of hazardous materials A, B, C and D with A being the worst case scenario. The Level B is the second most severe case. An ammonia release would be a Level A and would require the evacuation of the entire City, which is a very significant manpower operation and costly type of response. Level B would be a small leak in an ammonia system that didn't require evacuation, so it depends on severity of the type of incident and type of material being released or spilled.

Type C and D would be things like diesel fuel spills that the Fire Department go out on every day that don't require any protective clothing, special equipment or any significant amount of cleanup. If the County would have a Level B incident and didn't have the capability to deal with it, we would have to wait for the Level A Response Team out of Racine to come. For a Level A incident the City could end up waiting up to three hours for the Team and for a Level B incident it could take even longer, because they figure the importance isn't that great.

The equipment that will be used for Level B incidents is owned by the County and will be replaced by the County through applying for grants. Once we are recognized by the County Board we are automatically guaranteed a $10,000 per year grant, which is pretty much what we think is going to be the cost of operation each year. This is a combination of individuals from 13 different departments throughout the County. The reason that Fort Atkinson and Lake Mills are the big players is because the two Departments have the majority of the trained hazardous materials technicians.

Cwmn. Behrens, seconded by Cm. Zastrow, moved to approve the Agreement for a Level B Hazardous Materials Response Team, contingent on acceptance by the City's insurance carrier. On call of the roll, the motion carried unanimously.

10.  MISCELLANEOUS

    b.  SPECIAL BEER LICENSE FOR RIDE 4 CURE EVENT ON JUNE 27-28, 2008.
Cm. Simdon, seconded by Cm. Tesmer, moved to approve the Special Beer License for Ride 4 Cure event on June 27-28, 2008. The motion carried on a voice vote.

    c.  GRANTING OPERATOR LICENSES.
Cm. Tesmer, seconded by Cm. Zastrow, moved to approve the following list of applicants for operator licenses for the 2006-2008 license period:

The motion carried on a voice vote.

    d.  CITY, SEWER, WATER AND FUNDS 4, 6, 8, 12 AND 13 YEAR-END FINANCIAL STATEMENTS AS OF DECEMBER 31, 2007.

The City Manager reviewed the following items with the City Council:

FUND 1
GENERAL FUND for 2007

• The City collected all delinquent personal property taxes except KFC - $902.03 and Adam's Detailing - $44.92.
• Advance tax collection was $1,363,462 higher than last year.
• General Fund balance at year-end is $1,168,294, an increase of $43,912 from last year. The balance is $107,413 less than our estimate at budget time.
• The amount due from Fund 12 (Business Park) to the General Fund increased by $147,032. The 2008 increment is approximately $18,000 higher than last year.
• The amount due from Fund 13 (Downtown) to the General Fund decreased by $4,900. The 2008 increment will be approximately $20,000 less than 2008 principal and interest, requiring a small General Fund subsidy.
• 2007 revenues came in $135,560 over budget, mainly from:

  Interest on investments	$ 74,919
  Court penalties	16,935
  Building Inspector permits	12,008
  Cable TV franchise fees	6,740
  Pool and recreation fees	12,785
  Water Utility taxes	7,306
  	$130,693

• After Council appropriations and non-lapsing accounts, expenditures came in $305,740 under budget. Subtracting off Council appropriations throughout the year, we underspent our budget by $50,000.
• Yearly Council appropriations totaled $254,758, made up from:

  Snow and ice control	$108,470
  Gasoline	49,219
  Police Department	23,704
  Ralph Park diamond lights	13,528
  Traffic control	10,125
  Library	9,384
  	$214,430

• Although there are a lot of individual accounts overdrawn on the year-end list, the overall Departmental budgets were underspent with the exception of: Airport, sidewalk, gas, snow and ice, and traffic control accounts.
• Total revenues were $9,112,726; expenditures were $8,842,083 + non-lapsing $242,352 = $9,084,435.

FUND 4
DEBT SERVICE FUND

• All debt payments were timely made. Total debt service for 2007 - $557,496.

FUND 6
REVOLVING LOAN FUND

• Available cash on hand - $590,175 compared to $373,662 at the end of 2006; an increase of $216,513.
• There were no new Revolving Loans issued in 2007.
• The Convert-A-Couch loan balance of $66,622 was written off.
• All other Revolving Loans are current.
• As of 12/31/07, we have Loans outstanding totaling $595,953.

FUND 8
WATER TOWER

• Phase I of the Water Tower restoration is completed at a cost of $446,151.97.
• Phase I shortfall of $1,726.48 was covered by City interest earned funds within Fund 8. The Committee is fundraising to repay the City.
• Phase II fundraising to begin in 2008.

FUND 12
TIF - BUSINESS PARK

• Long-term General Obligation Bonds issued in 2007 in the amount of $600,291 to construct water booster station. Fund balance of $571,626 at year-end.
• Increased amount due to General Fund by $147,032.
• Interest earned on Bond proceeds - $25,683.

FUND 13
TIF - DOWNTOWN

• Completed Bicentennial Park development totaling $371,166. State Aid Park Development - $170,625.
• Started reconstruction of parking lot at Sherman Avenue/Main Street.
• Approximately $150,000 in project fund balance at year-end.
• Reduced the amount due to General Fund by $4,900.

FUND 2
WATER UTILITY

• Completed Sherman Avenue water main replacement costs to date - $799,541. Final bill pending from Department of Transportation. Borrowed $857,772.
• Cash position increased from ($48,948) at 12/31/06 to $113,565 at 12/31/07.
• Grand total revenues increased $210,378 to $1,595,149. Sales to all customer classes increased due to a rate increase and water volume increases.
• Expenses increased $83,504 to $1,329,343.
• Transmission and distribution expense increased approximately $52,000 over 2005 and 2006. The increase was due to a $54,000 expenditure in 2007 for painting the Cloute Hill water tower. We may see an adjusting entry from Virchow Krause expensing the whole water tower painting contract - approximately $162,000 in 2007.
• Pumping expenses were up due to additional power costs for pumping more water and WeEnergies rate increases. Power costs rose $8,572 to $93,535.
• Source of supply expenses were down from 2006 as the 2006 year included costs for rehabilitating Well #4.
• Net income ended the year at $265,806; whereas, at budget time we estimated $266,290.
• Net operating income as a percent of average net rate base was 6.89% compared to 6.58% at budget time and 4.4% last year. The rate of return of 6.89% may be reduced if audit entries are made to expense the water tower painting payments, which are to be made in 2008 and 2009.
• Cash flow was a positive $108,240.
• Contractor installations totaled $722,327.

FUND 3
SEWER UTILITY

• Sherman Avenue sanitary sewer was replaced at a cost of $773,313. Final bill pending from Department of Transportation. Borrowed - $794,786.
• Cash on hand increased $229,728 from ($19,974) to $209,754.
• Usage increased for all customer classes resulting in revenues up $326,000.
• Industrial sales were approximately $200,000 over budget. This accounted for almost the entire cash turnaround for the Utility.
• Expenses increased $23,000 due to increased power and chemical costs.

Cm. Zastrow, seconded by Cwmn. Behrens, moved to accept and file the City, Sewer, Water and Funds 4, 6, 8, 12 and 13 Year-End Financial Statements as of December 31, 2007. The motion carried on a voice vote.

Cm. Zastrow, seconded by Cm. Simdon, moved to appropriate $177,013.62 from the General Fund for the overdrawn accounts. On call of the roll, the motion carried unanimously.

Cm. Zastrow, seconded by Cm. Simdon, moved to approve the non-lapsing accounts of $242,352.04 from 2007 to 2008. On call of the roll, the motion carried unanimously.

11.   CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
 
    a.  VERIFIED CLAIMS.

Cwmn. Behrens, seconded by Cm. Simdon, moved the bills in the amounts of $4,208,137.76 for the City (Fund 1); $50,756.60 for the Sewer Utility (Fund 2); $24,889.07 for the Water Utility (Fund 3); $34,128.91 for the Business Park (Fund 12); $1,105.00 for Downtown Economic Development (Fund 13); $60,389.01 for Sewer Utility Debt Service; $84,258.13 for Water Utility Debt Service; and $250,379.66 for Payrolls 1, 2 and 2A as per Schedule N-63 on file in the office of the City Clerk/Treasurer and as audited and approved by the Finance Committee be allowed and orders be authorized drawn on the proper funds for their payment. On call of the roll, the motion carried unanimously.

12.  ADJOURNMENT
 
Cm. Zastrow, seconded by Cm. Simdon, moved to adjourn the February 5, 2008 regular City of Fort Atkinson Council meeting at 7:54 p.m. The motion carried on a voice vote.

/s/ Matt Trebatoski
City Clerk/Treasurer