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Montrose approves first steps in vacating street, alley
By Diane Vance/Gate City Staff Writer
MONTROSE - The Montrose City Council Thursday passed the first readings of ordinances to vacate portions of a street and alley, to approve a franchise agreement with Interstate Power and Light, to increase garbage and water rates, and tabled changes to parking designations to next month's council meeting.
The council approved an amendment to transfer funds in the city's 2008 budget; a resolution that all payroll and accounts payable checks must be cashed in 90 days from issue; and an application for the Regional Surface Transportation Program Grant.
After a month's review of health insurance plans for city employees, the council voted to accept a bid from Wellmark.
Mike Hoenig, water and sewer supervisor, will be given a $500-per-month raise retroactive to April 1, after the council approved new job descriptions and additional responsibilities at its March meeting. Hoenig is supervising other city employees as four of them cross-train to operate the water plant. He has taken on the responsibilities of public works director.
Since there has been a theft of gasoline from the city barn, the council approved spending $279 to purchase an electric pump that needs activation from inside the building.
Resident Elizabeth Moore shared maps of the property she and her husband own and have requested the city to vacate portions of South Fourth Street from Locust to Elm Street, and a portion of the alley from the Allen property to South Fifth Street, so they can build a house.
At a public hearing prior to the council meeting, no negative comments were made to the council, said Mayor Greg Ruth.
“Will this set a precedent?” asked council member Melody Slater.
Vacating city streets and alleys is permitted by Iowa code, said Ruth.
“Requests are considered on an item-by-item basis,” he said. “To be a progressive community, we need to rethink the city's way of doing business for the past 100 - 150 years that land not be developed.”
Council member Mary VanPelt said she agrees the city should be progressive.
“However, there's a lot of land there,” she said. “There's so many lots there, more than 30. That's a lot of money sitting there.”
Ruth said the ordinance to vacate the portions of the street and alley is a separate issue than what happens to the disposition of the land.
“We'll get an appraiser to come in and appraise the property,” said Ruth. “Other cities do this. After an appraisal we'll make a determination about disposing of the land.”
The council voted 3-2 to approve the first reading to vacate the portions of the street and alley.
Slater and VanPelt voted no; Mark Conlee, John Geyer and David Hawk voted yes.
The council needs to have a second reading at its June 5 meeting and has the option to hold or waive a third reading.
“You have passed a big hurdle tonight,” Ruth told Moore who has attended several council meetings to request the street and alley vacations.
The council also voted 3-2 to enter a franchise agreement for 25 years with Interstate Power and Light Co. Montrose will have an opportunity every five years to change that approval. Conlee and Slater voted no; Geyer, Hawk and VanPelt voted yes.
Keith Sherman, community relations manager at Interstate Power and Light Co. traveled from Centerville to speak at the public hearing prior to the council meeting.
He said a franchise is good for the utility when it is looking to finance projects because lenders will look at the number of franchise agreements. If that is a low number, the increased costs are forwarded to customers.
“A primary benefit for cities is the free insurance provided for contact accidents with our equipment,” said Sherman.
Geyer said he has spoken with Keokuk City Council member Roger Bryant about Keokuk's recent approval to sign a 25-year franchise agreement with five-year options.
“He said they've had no problem with it,” said Geyer. “On Second Street, (in Montrose) the roadway is being washed away. To fix it, there are three utility poles that need to be moved.”
Sherman said without the franchise agreement, the city is responsible for moving the poles. With a franchise agreement, Interstate Power and Light Co. moves the poles and pays for the work.
“Your proposal is identical to Keokuk's,” said Sherman. “We're not really offering that five-year window option anymore but we will with you. When we look at investing, we look at longterm commitments.
“A franchise says we will keep the utility service modern and up-to-date. You have an Alliant representative for your area, Jose Reyes in Fort Madison. You can call him with any concerns.”
A franchise also provides opportunities for grants and in-kind services, Sherman said.
Resident and former Mayor Ron Dinwiddie expressed concern that granting a franchise also gives the utility eminent domain.
“If they want any property, they take it,” he said. “You're giving away rights to eminent domain. At one time, Interstate said it would take that clause out of the franchise agreement. It's back in. It's a dangerous thing to give away. It's like giving away the keys to the city.”
Eminent domain still has to go through the city zoning board, said Sherman.
“We will not put a pile of coal in the middle of a park,” said Sherman. “The Iowa League of Cities advocates eminent domain. We won't do anything that's not in the city's best interest.
“Eminent domain language in the franchise agreement was there about transmission lines. We don't own transmission lines. Look at the franchise as a partnership working together.”
The council approved raising monthly residential garbage rates from $5.61 to $7 on a two-year contract with Kohlmorgan Hauling and an increase in the city's monthly water fee from $15.30 to $24.17.
VanPelt, chair of the city council's Economic and Community Development Committee, has studied parking issues around town. She provided council members with copies of proposals to add and eliminate parking spaces at various locations.
Ruth asked the council members to review the proposal, drive around town to see the sites and act on the proposals next month.
The council approved an amendment to transfer funds in the city's 2008 budget; a resolution that all payroll and accounts payable checks must be cashed in 90 days from issue; and an application for the Regional Surface Transportation Program Grant.
After a month's review of health insurance plans for city employees, the council voted to accept a bid from Wellmark.
Mike Hoenig, water and sewer supervisor, will be given a $500-per-month raise retroactive to April 1, after the council approved new job descriptions and additional responsibilities at its March meeting. Hoenig is supervising other city employees as four of them cross-train to operate the water plant. He has taken on the responsibilities of public works director.
Since there has been a theft of gasoline from the city barn, the council approved spending $279 to purchase an electric pump that needs activation from inside the building.
Resident Elizabeth Moore shared maps of the property she and her husband own and have requested the city to vacate portions of South Fourth Street from Locust to Elm Street, and a portion of the alley from the Allen property to South Fifth Street, so they can build a house.
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“Will this set a precedent?” asked council member Melody Slater.
Vacating city streets and alleys is permitted by Iowa code, said Ruth.
“Requests are considered on an item-by-item basis,” he said. “To be a progressive community, we need to rethink the city's way of doing business for the past 100 - 150 years that land not be developed.”
Council member Mary VanPelt said she agrees the city should be progressive.
“However, there's a lot of land there,” she said. “There's so many lots there, more than 30. That's a lot of money sitting there.”
Ruth said the ordinance to vacate the portions of the street and alley is a separate issue than what happens to the disposition of the land.
“We'll get an appraiser to come in and appraise the property,” said Ruth. “Other cities do this. After an appraisal we'll make a determination about disposing of the land.”
The council voted 3-2 to approve the first reading to vacate the portions of the street and alley.
Slater and VanPelt voted no; Mark Conlee, John Geyer and David Hawk voted yes.
The council needs to have a second reading at its June 5 meeting and has the option to hold or waive a third reading.
“You have passed a big hurdle tonight,” Ruth told Moore who has attended several council meetings to request the street and alley vacations.
The council also voted 3-2 to enter a franchise agreement for 25 years with Interstate Power and Light Co. Montrose will have an opportunity every five years to change that approval. Conlee and Slater voted no; Geyer, Hawk and VanPelt voted yes.
Keith Sherman, community relations manager at Interstate Power and Light Co. traveled from Centerville to speak at the public hearing prior to the council meeting.
He said a franchise is good for the utility when it is looking to finance projects because lenders will look at the number of franchise agreements. If that is a low number, the increased costs are forwarded to customers.
“A primary benefit for cities is the free insurance provided for contact accidents with our equipment,” said Sherman.
Geyer said he has spoken with Keokuk City Council member Roger Bryant about Keokuk's recent approval to sign a 25-year franchise agreement with five-year options.
“He said they've had no problem with it,” said Geyer. “On Second Street, (in Montrose) the roadway is being washed away. To fix it, there are three utility poles that need to be moved.”
Sherman said without the franchise agreement, the city is responsible for moving the poles. With a franchise agreement, Interstate Power and Light Co. moves the poles and pays for the work.
“Your proposal is identical to Keokuk's,” said Sherman. “We're not really offering that five-year window option anymore but we will with you. When we look at investing, we look at longterm commitments.
“A franchise says we will keep the utility service modern and up-to-date. You have an Alliant representative for your area, Jose Reyes in Fort Madison. You can call him with any concerns.”
A franchise also provides opportunities for grants and in-kind services, Sherman said.
Resident and former Mayor Ron Dinwiddie expressed concern that granting a franchise also gives the utility eminent domain.
“If they want any property, they take it,” he said. “You're giving away rights to eminent domain. At one time, Interstate said it would take that clause out of the franchise agreement. It's back in. It's a dangerous thing to give away. It's like giving away the keys to the city.”
Eminent domain still has to go through the city zoning board, said Sherman.
“We will not put a pile of coal in the middle of a park,” said Sherman. “The Iowa League of Cities advocates eminent domain. We won't do anything that's not in the city's best interest.
“Eminent domain language in the franchise agreement was there about transmission lines. We don't own transmission lines. Look at the franchise as a partnership working together.”
The council approved raising monthly residential garbage rates from $5.61 to $7 on a two-year contract with Kohlmorgan Hauling and an increase in the city's monthly water fee from $15.30 to $24.17.
VanPelt, chair of the city council's Economic and Community Development Committee, has studied parking issues around town. She provided council members with copies of proposals to add and eliminate parking spaces at various locations.
Ruth asked the council members to review the proposal, drive around town to see the sites and act on the proposals next month.
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