Fee waiver approved on first reading

A proposed ordinance that will offer full and partial waivers of fees for disposal fees at the Transfer Station underwent some retooling at the McCook City Council meeting Monday night.

After much discussion and with the concensus that it can be modified again before it's finalized, the ordinance was approved on first reading as it was originally written, which includes McCook Housing Authority projects.

City staff was directed to bring back the ordinance with new language that will allow non-profit organzations to take advantage of a full waiver of fees for remodeling debris.

The portion of the ordinance rejected by the council Monday night offered a full waiver of fees at the Transfer Station for remodeling or clean-up debris for projects affiliated with the McCook Economic Development Corp.

Councilman Lonnie Anderson voted against the amended ordinance.

The ordinance will also give property owners a 30 percent discount of disposal fees at the Transfer Station for the demolition of a residential property.

The amended version goes back to how the ordinance was originally written that includes MEDC projects and McCook Housing Authority projects that are funded fully or in part by state or government funds.

Councilman Aaron Kircher took issue with the proposed ordinance that limited the full waiver fees to only those projects affiliated with the MEDC. He requested that other organizations be eligible, too.

"There are plenty of other programs that rehab and demolish homes," Councilman Kircher insisted, including non profit organizations. "I don't want to limit this to one program...the city might as well help out other programs, too."

City Manager Kurt Fritsch explained that the full waiver of fees covers only remodeling and cleanup. There is a big difference in the amount of debris from a remodeling job and tearing down a structure, he said, with a typical demolition generating $2,000-3,000 in costs.

Councilman Kircher made a motion, seconded by Council member Colleen Grant, to included demolition in the full waiver. The motion was voted down by 3-2, with Kircher and Grant voting in the affirmative and Mayor Dennis Berry, Councilmen Marty Conroy and Lonnie Anderson voting against it.

Mayor Berry stated that although he was sympathetic to non-profit groups, if a full waiver was granted, those costs would be transferred onto the city and ultimately to the rate payer. The city is on a "razor-thin budget" as it is, he warned.

Councilman Kircher replied rate payers were already going to pick up 60 percent of costs with the 30 percent waiver offered for demolition costs. In addition, when dilapidated structures are torn down, rate payers would see benefits with improved neighborhoods and higher property values.

But Councilman Marty Conroy contended that the recent audit of city funds showed that solid waste fees were coming up short and he doubted that the 30 percent waiver would result in a rush of property owners knocking down dilapidated houses.

"We're not going to have a line at Kurt's office to do this," he said. "It won't happen."

Denise Ringenberg of the MEDC addressed the council and said some non-profit organizations may be inexperienced in housing rehab. Many do not necessarily have to follow city code or government regulations when remodeling or demolishing housing, such as lead removal, she said. Habitat for Humanity has strict codes it follows, she said, but the city might want to protect itself from groups with little or no experience in housing rehab.

Rebecca Dutcher of McCook Habitat for Humanity clarified that her organization received no state or government fundings and so would be excluded from this waiver.

Councilman Kircher withdrew his motion, that was seconded by Council member Grant, to postpone the ordinance.

Although the city has the power to condemn buildings, it does not have the funds to demolish property, said Fritsch. This ordinance would be used as an incentive to urge property owners to tear down structures. He estimated that about six buildings that have been uninhabited for that past several years would qualify for the partial waiver.