Present:  City Attorney Boyd Strope, Deputy City Clerk/Treasurer Jan Fuhrer, Council President Ed Price and Council members;  Don Baker, Lauren Hiebner, Terri Krysl, Dwayne Philbrick, Marv Fritz, Al Vorce and Kevin Shelhamer.  Absent:  Mayor William Price.

Notice of this meeting was given in advance thereof according to Section 84-1408 of the Revised Statutes of Nebraska.  Notice of the meeting was given to the Mayor and all members of the Council and a copy of the acknowledgement of receipt of notice and the agenda is attached to the minutes.  Availability of the agenda was communicated in the advance notice.  All proceedings hereafter shown were taken while convened meeting was open to the attendance of the public. The meeting was called to order by Council President Ed Price. Moved by Vorce, second by Krysl to waive the reading of the minutes of June 2, 5 and 12 and approve them as if read.  Roll call vote as follows:  All Ayes.  Motion carried.

Moved by Baker, second by Vorce to close the Water and Sanitary Sewer Districts 2003-1 bids.  Roll call vote as follows:  All Ayes.  Motion carried.
City Attorney Strope read the following bids:

Company                    Bid                       Start Date          Completion Date

Castle Construction      $108,890.62         7-28-03            9-26-03

Rutjens Construction     $ 98,344.04         8-01-03            9-12-03
City Engineer Bruce Gilmore reviewed the bids.

City Attorney Strope clarified procedures used in creating the Water and Sewer Districts.  They were created as Extension Districts and do not require notice or right to object.  Assessments will not be known until the final cost is known.  A public hearing will be held after the assessments are figured.

The Boone Avenue Sidewalk Follow-Up was tabled to the August 4 meeting.

Pat Grutsch of the Planning Commission presented a map showing the suggested areas for annexation.  The areas being considered are the east and west ends of town along both sides of Highway 20, north along both sides of Highway 281, and an area east of Sixteenth Street.  John Prouty, Delray Kumm, and Charles Molvig spoke against annexation in their areas.  This was tabled to the July 14 special meeting that will follow the Planning Commission meeting since Orval Stahr will be there.

Moved by Vorce, second by Baker to approve the low bid of $98,344.04 submitted by Rutjens Construction for the Water and Sanitary Sewer Districts 2003-1 project.  Roll call vote as follows:  All Ayes.  Motion carried.

Bruce Gilmore reported that a ditch on 12th Street could be relocated around the north side of that block.  The City has prescriptive right for the ditch because the same water would be entering and exiting the same place.  He recommends keeping it a ditch because a pipe would increase and concentrate the flow.  This was tabled to the July 14 meeting so he can get an estimate of the cost for the ditch, along with a proposed location for the ditch.

Moved by Fritz, second by Baker to approve change order to extend storm sewer about 150 feet at 3rd Street and Church Street.  Roll call vote as follows:  All Ayes.  Motion carried.

Terri Krysl requested South Seventh Street be watered down the same time as the rodeo arena so the rodeo traffic does not cause the dust problems that it has in the past.  The arena is done by the Fire Department.  She will talk to the Fire Department about her request.

Moved by Baker, second by Shelhamer to waive the three readings on Ordinance No. 1238.  Roll call vote as follows:  Aye; Baker, Hiebner, Philbrick, Price, Vorce and Shelhamer.  Nay:  Krysl and Fritz.  Absent:  None.  Motion carried.

Moved by Baker, second by Shelhamer to adopt Ordinance No. 1238.  Roll call vote as follows:  Aye; Baker, Hiebner, Philbrick, Price, Vorce and Shelhamer.  Nay:  Krysl and Fritz.  Absent:  None.  Motion carried.

Resident/Non-Resident Salesman Permits had been changed when the code book was updated to only include non-resident salesman.  The council decided to leave it as is so no action was necessary.

Moved by Vorce, second by Baker to waive the three readings on Ordinance No. 1239.  Roll call vote as follows:  All Ayes.  Motion carried.

Moved by Vorce, second by Fritz to adopt Ordinance No. 1239.  Roll call vote as follows:  All Ayes.  Motion carried.

Sec. 2. The City has created two classifications for water rate purposes.  These classifications are known as the residential and commercial classes.  Pursuant to statutory and case law authority, these classifications have been adopted and created for reasonable and nondiscriminatory purposes.  The City has created the classifications after considering such factors as the cost of service, the purpose for which service is received, the quantity or
amount received and the economic development aspects of creating such classifications.

(a) Specifically, the City recognizes that they may create classifications based upon the purpose for which a consumer is using the service.  Rutherford v. City of Omaha, 160 N.W.2d 223, 228 (Neb. 1968); Cornhusker Electric Co. v. City of Fairbury, 278 N.W. 379 (Neb. 1938).  The City recognizes that the purpose for which a residential consumer needs and uses water is different than the purpose for which a commercial class member needs water.

(b) Specifically, the City also recognizes that cities may create classifications based upon the quantity of consumption.  According to the 2000-02 averages, commercial class consumers use approximately 8,000 gallons more per year than a residential class member.

(c) The City further recognizes that it can and has relied upon economic development considerations in implementing the classifications.  As Nebraska’s rural communities (specifically O’Neill) face population shortages, cities are justified in offering economic incentives and inducements to retain and attract residents.  Because courts increasingly recognize community economic development as a factor in rate setting, O’Neill’s residential and commercial classifications are reasonable.

Sec. 3. The City has analyzed and discussed the applicable rates to each classification with the knowledge and understanding that the rates must be reasonable and nondiscriminatory.

Sec. 4. The City recognizes that the applicable rates are nondiscriminatory because they do not charge similarly situated customers a different price for the same service.  Moreover, the rates are reasonable because there are identifiable reasons for implementing the 70/85 cent rate structure:

(a) Specifically, charging residential class consumers 15 cents less than a commercial user is not unreasonable in light of the challenges that the city of O’Neill is facing.  It is reasonable to believe that reduced water rates could serve as an incentive for residents to remain in O’Neill.  Additionally, reduced rates would put more money into the hands of local consumers.  For those reasons, reduced water rates could have a positive impact on the local economy.
(b) The City acknowledges that, as a general rule of thumb, a municipal rate structure must achieve the lowest price for the largest possible number of users.  Therefore, rate returns do not have to be equally profitable among the various classes.  Without question, the residential class contains the largest number of users.  Residential class consumers account for about 87% of all meters.  Giving such a
 large class a 15 cent rate reduction allows the City to furnish the most efficient and satisfactory service at the lowest reasonable price for the greatest number of customers.
(c) The City further believes that the cost-of-service for a commercial class consumer could potentially be greater than a residential class member because of the higher volume of usage.  On average, commercial users consume 8,000 gallons more per year.  It is quite possible that with more water consumption comes the potential for additional maintenance issues.  With greater stress being put on a commercial consumer’s meters and pipes, additional wear and tear could become a factor.  Moreover, because there is a greater volume going to commercial users, there is a greater potential for significant and substantial water loss in the event that a commercial pipe or meter would burst.

  PASSED AND APPROVED this 7th day of July, 2003.
 

       ED PRICE, ACTING MAYOR
 ATTEST:
 (SEAL)
 

 JANIS FUHRER, DEPUTY CITY CLERK/TREASURER

 Second by Shelhamer to adopt Resolution No. 03-15.  Roll call vote as follows:  Aye; Baker, Hiebner, Krysl, Philbrick, Price, Vorce and Shelhamer.  Nay:  Fritz.  Absent:  None.  Motion carried.

Moved by Fritz, second by Shelhamer to adopt Ordinance No. 1233.  Roll call vote as follows:  All Ayes.  Motion carried.

The Council discussed the flood plain issue.  They requested the City Clerk write a letter to the Corps of Engineers to find out what they are going to do and when.

Moved by Baker, second by Fritz to approve a donation to the O’Neill Lions Club of $50.00 for flags.  Roll call vote as follows:  All Ayes.  Motion carried.

Moved by Baker, second by Philbrick to approve the Planning Grant CDBG drawdown of $1,886.00.  Roll call vote as follows:  All Ayes.  Motion carried.

The Council voted on the Hall of Fame nominations by secret ballot.

Moved by Vorce, second by Fritz to approve the two nominations receiving the most votes for the Hall of Fame for 2003.  Roll call vote as follows:  All Ayes.  Motion carried.

Moved by Fritz, second by Vorce to go into executive session.  Roll call vote as follows:  All Ayes.  Motion carried.

The Council adjourned into executive session at 9:30 p.m. The meeting was called to order by Council President Ed Price at 9:52 p.m. Moved by Hiebner, second by Fritz to come out of executive session.  Roll call vote as follows:  All Ayes.  Motion carried. City Attorney Strope reported that while in executive session the Council discussed an employee matter of how a couple items were handled.  No action was taken.

Moved by Hiebner, second by Baker to approve the bills.  Roll call vote as follows:  All Ayes.  Motion carried.

ALL FUNDS
Payroll, salary 83,569.08 Fed & FICA, tax 18,064.23
CBSA, ins premium 21,562.01 Alco, su 123.75
Alltel, ser 502.13 American Family, ins 471.67
Appeara, su 584.00 Bomgaars, su 640.64
Central Farmer's, fuel 2,659.40 Delta Dental, ins 1,098.65
Jefferson Pilot, ins 160.29 NPPD, util 11,958.54
Kinder Morgan, util 1,333.33 Qwest, phone 2,084.04
MCI, phone 87.12 Nationwide, pen 4,284.38
NE Dept. of Revenue, tax 2,008.47

GENERAL FUND
Adamson Dist., su 153.25 Pete Bolln, su 47.30
Cris Bulau, clean 260.00 Carhart Lumber, su 453.45
Dave Cole, ser 245.00 Cole Redi-Mix, su 297.00
Dan’s Welding, su 1,093.00 Deterding, su 1,678.00
Dollar General, su 61.00 Lonnie Doty, re 1,137.18
Emergency Medical, su 490.10 Environmental Solutions, ser 7,263.00
Gokie Oil, fuel 176.97 Great Western, fee 35.00
Holiday Inn, lodging 102.00 Holt Co. Auto Parts, su 165.29
Holt Co. Independent, ad 820.63 Hunke Oil, fuel 19.01
Island Supply, su 111.80 KBRX, ad 18.00
Ludemann Safety, re 595.71 McConnell Plumbing, re 137.21
Midstates Consulting, su 510.75 Midwest Turf, su 460.23
Moore Shoes, su 100.00 Mr. Automotive, su 15.49
Netcom, ser 320.00 Northern Pump, su 172.67
Ogden Hardware, su 578.61 Omaha Life, ins 88.15
O’Neill Auto Supply, re 53.75 O’Neill Electric, re 1,382.74
O’Neill Lumber, su 61.10 O’Neill Saw & Cycle, su 3.45
O’Neill Shopper, ad 56.28 O’Neill Tire & Supply, su 44.90
Phillips 66, fuel 21.93 R&D Manufacturing, rebate 719.06
Recreation Supply, su 15.72 Road Builders, su 322.36
Sack-N-Save, su 62.40 Scantron, fee 164.00
Schwans, su 817.56 Sinclair Oil, fuel 42.15
Stadium Sports, su 464.13 Stahr & Associates, fee 1,614.00
Summit Supply, su 840.00 Torpin’s Rodeo Market, su 17.11
Western Office, su 4.41 Contingent Fund, misc 1,374.17
Tax Commissioner, tax 620.79

POLICE FUND
Avera St. Anthony’s, tests 40.00 Carhart Lumber, su 110.99
Chief Supply, su 1,242.83 Holt Co. Independent, ad 35.00
Jack’s Uniform, su 217.25 Sarah Klinetobe, clean 150.00
LaRue, su 50.56 NEHHS, tests 75.00
Ogden Hardware, su 7.48 O’Neill Book & Office, su 38.99
O’Neill Tire & Supply, re 10.00 O’Neill Vet Clinic, fee 90.00
Shelhamer Petroleum, su 268.38 Stericycle, su 52.50
Sunmart, film 136.89 Telebeep, ser 17.11
Water Co., fee 28.50 Contingent Fund, misc 147.18

STREET FUND
Dobson Brothers, su 372.40 Double S Welding, re 266.00
FDF Construction, ser 14,888.70 Holt Co. Auto Parts, su 58.15
Holt Co. Treasurer, su 981.90 LaRue, su 21.00
Logan Contractors, su 2.50 O’Neill Saw & Cycle, su 32.00
Ranchland Auto, su 3.94 Scantron, fee 164.00
Skillpath Seminars, fee 149.00 Triple R Tire, ser 12.50
Linda Walton, re 29.95 Rutjen’s Construction, fees 45,982.30

SEWER FUND
Analytical Products, ser 238.00 Axis Capital, lease 47.50
Carhart Lumber, su 42.06 Cole Redi-Mix, su 309.75
Earl’s Repair, re 31.15 Great Plains, hotline 39.33
Hach Co., su 447.60 Hawkins, su 2,329.50
Hercules Hardware, su 122.74 Holt Co. Independent, ad 198.88
K&K Welding, re 8.75 Kelly Supply, su 215.71
Lab Safety, su 364.90 LaRue, su 10.20
Midwest Lab, tests 20.00 Municipal Supply, su 410.17
Ogden Hardware, su 21.68 O’Neill Auto Supply, su 1.68
O’Neill Saw & Cycle, su 103.33 Prairie Hills Ford, re 200.84
Raines & Assoc., su 321.31 Scantron, fee 164.00
Share Corporation, su 1,143.26 Skillpath Seminar, fee 74.50
Torpin’s Rodeo Market, su 9.09 USA Blue Book, su 344.14
Water Co., fee 15.50 Western Office, su 26.99

SEWER FUND
Gilmore & Assoc., ser 3,600.00 Tax Commissioner, tax 3,739.28
Yesterdays Technology, re 205.00 Contingent Fund, misc 219.32

WATER FUND
Axis Capital, lease 47.50 Barco Municipal, su 92.53
Carhart Lumber, su 46.19 Earl’s Repair, re 31.15
Eby’s Inc., su 104.42 Great Plains, hotline 39.33
Hawkins, su 368.11 Hercules Hardware, su 122.74
Holt Co. Independent, ad 210.68 J.M. Discount, su 17.54
Kelly Supply, su 44.15 LaRue, su 10.19
Municipal Supply, su 658.10 National Waterworks, su 805.60
NEHHS, tests 230.00 NE Water Environmental, fee 40.00
Niobrara Valley, util 581.33 Ogden Hardware, su 9.44
O’Neill Saw & Cycle, su 51.43 Prairie Hills, re 200.83
Scantron, fee 164.00 Share Corporation, su 97.80
Skillpath Seminar, fee 74.50 Western Office, su 26.99
Contingent Fund, misc 251.04 Gilmore & Assoc., fees 3,600.00
Tax Commissioner, tax 2,265.51

TRANSFER STATION FUND
Butler Co. Landf, fees 23,896.29 Recycling Account, pmt  19,552.92
J&J Sanitation, fees 30,674.69 Bullseye Repair, su 147.06
K&K Welding, su 61.97 Kansas State Bank, pmt 13,016.56
Linweld, lease 9.16 Neligh Tractor, su 19.33
Niobrara Valley, util 900.00 Ogden Hardware, su 8.98
O’Neill Auto Supply, su 116.70 Shelhamer Petroleum, su 35.48
Triple R Tire, ser 99.90

CAPITAL IMPROVEMENT FUND
No. 1 Storage, police rent 3,420.00

COMMUNITY IMPROVEMENT FUND
WAW Construction, fees 84,737.22
 

AUDITING COMMITTEE:
 
 

_________________________________
DON BAKER, WARD I
 
 

_________________________________
LAUREN HIEBNER, WARD I

Council President Price announced that Police Chief Ben Matchett was one of the nation’s ten recipients of the Top Cops Award.  He will receive his award on October 11, 2003 in Washington, D.C.

Moved by Fritz, second by Vorce to adjourn.  Roll call vote as follows:  All Ayes.  Motion carried.

The meeting adjourned at 10:00 p.m.
 
 
 

      ED PRICE, ACTING MAYOR
ATTEST:
(SEAL)
 
 
 

JANIS FUHRER, DEPUTY CITY CLERK/TREASURER
***********************************************************
 
 
 
 

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