Trash contract canceled on 4-1 vote

Tuesday, May 21, 2013

McCOOK, Nebraska -- The McCook City Council canceled a trash hauling contract with Frtiz Trucking on a 4-1 vote Monday evening, ending several months of disputes.

City staff members claimed the trash hauler had not been able to provide the required number of trailers and had ceased hauling operations completely on May 8.

The owner of Fritz Trucking, Steve Fritz, claimed his trailers were damaged on numerous occasions by city staff and on March 7 his trailer was damaged beyond use while being loaded.

Fritz said he asked for permission from the city to load trailers after hours and was told his contract with the city did not allow for that. Fritz said he then inquired about hiring a sub-contracter on April 4 and was unable to get a response from city staff and has yet to receive a response. Fritz said his company has done everything they could to fulfill the contract, "it has never been our intent to not fulfill the contract."

Fritz said he had the city tow his trucks during attempts to haul trash and was even blocked from loading on one occasion.

Public Works Director Kyle Potthoff responded that city staff had not blocked access to the loading pit and Fritz replied that on April 12, two police officers blocked his truck from loading. Fritz's comment at Monday night's meeting was followed by a few moments of silence.

The Gazette was contacted by Steve Fritz in April that the city was blocking his trash-hauling trucks from loading. A reporter visited the McCook Transfer Station at the time and city staff indicated that Fritz and Potthoff were meeting at the station in an effort to resolve issues that had arisen.

Potthoff responded to a Gazette inquiry later that day and said he believed the conversation with Frtiz ended up being a benefit for both parties and issues were worked out. Efforts to reach Fritz for comment at the time were unsuccessful.

Councilman Bruce McDowell asked if city staff had looked at subcontracting the work. City Attorney Nate Schneider responded that a provision in the contract allowed the hiring of outside help if the contractor was unable to perform his duties, but since the city already had the resources, decided to go ahead and do so.

Schneider said he had spoken with representative of Fritz Trucking and requested a list of contractors and a proposal to resolve the trash issue. Schneider said it had been approximately three weeks since his request for the information and hauling had ceased completely in the meantime.

The resource Schneider referred to was the $69,800 emergency purchase of two semi trucks in September 2012. The purchase was combined with the $4,000 monthly rental expense of two specialized trash-hauling trailers and the addition of a new full time city employee tractor-trailer operator position in October.

Following the October meeting City Manager Jeff Hancock said "It has always been the city's desire that Fritz Trucking continue their contractual agreement with the city. The decision to purchase equipment was not made lightly and was not only based on Fritz's contractual responsibility, but also the city's responsibility to ensure our citizens trash service would not stop."

Fritz Trucking filed two claims for damages with the City of McCook in January and a third claim in March. Each claim cited damage caused to their trailers by city staff during loading. Councilor Janet Hepp asked Steve Fritz, Monday evening, what type of damage the trailers sustained. Fritz explained that one trailer was rendered inoperative when a wall was broken loose from the trailer.

City Manager Jeff Hancock offered the only public comment to-date from city staff pertaining to the claims, in response to Fritz's description of the damage.

"I have a hard time thinking that was deliberate," said Hancock.

Fritz replied that all of the damage was done by the same city loader who he asked on several occasions not to load the trailers the way he does.

Councilman Jerry Calvin then asked why Fritz Trucking ceased hauling on May 8 and Fritz replied that the $300 per day liquidated damages the city was charging him, for not having a second trailer, made it "where we are hauling for nothing."

Mayor Berry subsequently moved the item to a vote without further comment, which resulted in the trash hauling contract being cancelled after a 4-1 result.

Councilor Janet Hepp was the lone dissenting vote.

In other business, the deadline set by city staff to submit proposals or general expressions of interest pertaining to the future use of Memorial Auditorium has been reached without a single submission, according to City Manager Jeff Hancock. Hancock said one letter of suggestions was received, but otherwise the city "did not receive any proposals for Memorial Auditorium."

Hancock also said the city was not awarded the $250,000 civic center grant it had applied from the Nebraska Civic and Community Financing Fund. The grant application was originally approved by councilors on a split vote and hailed by economic development representatives and Hancock as an additional bargaining chip for the city, should a potential hotel development project reach the negotiating table stage. Critics of the application questioned whether it would hurt existing business and offer an unfair advantage to new businesses coming to the area.

Councilors unanimously approved raising the McCook Public Transit fare from $1 to $2 per one-way trip. Heritage Senior Center Director Sue Chipman said she had received comment from only one citizen pertaining to the potential rate increase and that individual said a rate increase was overdue.

Chipman said the public transit fare had not been increased since 2002 and changes to the transit funding application that were considered recently by the Nebraska Department of Roads would have jeopardized both state and federal funding assistance. According to Chipman, the changes were not implemented but considering rising gas prices and the likelihood that the changes would be implemented in the future, the increase in fare was necessary to help defer expenses.

The rate change will result in approximately $5,000 in additional revenue and would also increase the amount received by the city from American Medical Response, the brokerage firm hired by the Department of Health and Human Services, by $1,000.

The McCook Public Transit is a dial-a-ride system that anyone, regardless of age, is eligible to ride.

Also during the meeting a claim for damages suffered by Natalie Mickey when she slipped and fell at the Heritage Senior Center on March 5, 2013, was received and filed with the city's insurance carrier without comment.

City staff was authorized to proceed with boarding up the first floor of the St. Catherine's Apartments building. The project is anticipated to begin on May 30 and will include removal of portions of exterior metal stairways that allow access to the buildings second floor. Public Works Director Kyle Potthoff said it was determined that plywood would make it easier to detect a break-in and would require less maintenance than wrapping the building in chain-link fence.

Hancock said it was important to note that with the health board designating the building as unsafe, the city now had legal authority to enforce trespassing violations and had assurances from the Red Willow County Attorney that he would prosecute.

The estimated $3,000 expense of boarding up the building will be funded from the council contingency fund and McCook Work Ethic Camp work crews will assist with the labor, according to city staff.

Other items on the consent and regular agenda;

* A proclamation designating May 19-25, 2013, as "Emergency Medical Services Week" was approved.

* A $250,000 CDBG grant application to the Nebraska Affordable Housing Program, intended to assist 10 homes with major home improvements, was approved without comment. According to the meeting agenda, the grant is being sought as another resource in combatting the McCook housing shortage and would be available to homeowner applicants at 80 percent or less than the area median household income of $39,375.

* Councilors approved an application to the Nebraska Liquor Control Commission from Smoker's Outlet for an addition to their license. The application will change their license description to cover a 48 ft. by 50 ft. addition the business is planning to the north of their existing structure.

* The contract between the Heritage Senior Center and the Nebraska Department of Health and Human Service detailing reimbursement for congregate meals, home delivered meals and transportation services was approved. The anticipated reimbursement is approximately $37,000 for the upcoming fiscal year.

* A 5k route through city streets of a "Color Me Crazy" fun run coordinated by the Young Professionals Group and scheduled for July 20, 2013, was approved. The run will coincide with Crazy Days festivities and intends to take place on portions of West Q Street, West Fairacres Drive, West 14th Street, West M Street, West 5th Street, West 7th Street, Spruce Road and Ponderosa Drive, from 6:45 a.m. to noon.

* An application for a special liquor license from Loop Brewing Co. for a wedding at Memorial Auditorium in June was approved.

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