Florence council back to square one on bids
The new city building in Florence took a temporary hit Monday night as attorneys for the city's financial consultants explained to the council that Koch Financial Corporation was not going to uphold its end of the lease/purchase agreement.
J.T. Klaus and Larry Kleeman of Triplett, Woolf, and Garretson explained the situation to the council. When the attorneys received the agreement papers March 18, it was noted that although the city had selected a seven-year payment contract, Koch was insisting on 10 years with an option of extending it through March 2016.
In addition, Koch was no longer willing to release at once all of the $100,000 to the city of Florence. Koch wanted to keep the money (and any interest it would earn) and pay the construction invoices "up to $100,000" as they came due.
However, Koch would not sign any legal document prepared by the city assuring that the invoices would be paid. Kleeman told council members that Koch would not negotiate any of these points.
"They just told us they would only do it their way," Kleeman said. "They offered no reason; they said they didn't have to explain anything."
Kleeman told the council that David Shupe had contacted the rest of the institutions which had originally bid on the lease/purchase arrangement, but that no longer would any of them honor the bids presented last month.
Shupe will contact them for new bids and have them ready for the council's consideration at the next meeting.
After discussion, the council unanimously voted to formally cease the relationship with Koch Financial Services.
In a separate vote, they agreed to have Shupe and the attorneys pursue different funding.
At the request of Mayor Jeanne Meirowsky, Kleeman reiterated the law firm's position that the Florence city council was within proper legal boundaries when the papers to accept funding were signed.
In related business, the council heard from Mel Flaming, contractor for the city building project, about the cost of some of the changes the council wants to make.
He said that adding a brick facade would be an additional cost of roughly $2,000. The council voted to have him return with a firm bid if he is able to find bricks that will match those on the ambulance building.
Trayce Warner requested that the city place a dumpster next Veteran's Park for the Spring Fling on April 13 and 14. She also requested permission to place the stage for entertainment against the wall on the north side of Veteran's Park. Both requests were granted.
Warner announced that a car club also would be in Florence for that weekend and asked the council's permission to allow them to park their cars south of the ball diamond. The council agreed.
The council granted an electrical license to Roger Johnson and heard his concerns about the bid process on remodeling the current city building.
In other business, the council approved the purchase of a Stihl chain saw, heard that the Corps of Engineers inspected the dike and gave the city a good report on its condition, and heard that the city had not acted fast enough signing up coaches and players for summer ball in Florence — that teams were already forming in Marion.
City superintendent Stuart Funk announced his plan to begin flushing the water hydrants in Florence on Monday. He said it will take approximately two weeks to complete flush all the hydrants in the city.
Funk also asked the council's permission to offer a pile of asphalt millings to the public. The council agreed. The pile available to the public is on 5th Street east of Mike Moore's veterinary building.
The council agreed to hire a full time seasonal person for the summer months with the idea of expanding the job at some time in the future. They looked over applications on file and had city clerk Ann Brenzikofer contact applicants for interviews in the coming week.
Sara Cope was present to ask that the city purchase 13 lots from Reilly Reed to build two duplexes for the affordable housing project. She also asked that the city waive the cost of building permits and the cost of utility hookups. No action was taken. The council will consider the proposal at a future meeting. Cope said the deadline for application for the project is July 1.
