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CITY COUNCIL
AUGUST 6, 2007
7:30 P.M.
The Council of the City of Augusta, Kansas met in regular session on August 6, 2007, with Mayor Kristey Williams presiding. Council present were Holly Harper, Douglas Marr, Michael Huddleston, Michael Wallace, Tom Leffler, Mike Rawlings, Robert Griffith, and Roger Chrislip. Also present: City Manager Bill Keefer, Assistant to the City Manager JJ Allen, City Attorney David All, Director of Electric Utilities Bill Webster, Electric Distribution Superintendent Tim Davis, City Inspector Dan Allen, and City Clerk Erica Jones. Visitors present were: Michael McDermott, Willis Wilson, Martin Goedecke, Glenda McVay, LouAnn Moore, Cliff Williams, and Michael Mead.
Prayer: Councilman Marr gave the invocation.
Minutes Council: Minutes of the July 16, 2007 council meeting were reviewed. Marr stated that under the Informational Memorandum, his comment should read “…that the Main Street Committee and Streetscape criteria need to be reviewed to make sure they will not present a problem for a parking lot to be put in at that location…”. Huddleston made a motion to approve the minutes of the July 16, 2007 council meeting. Harper seconded the motion. Motion carried without opposition.
Appropriations:
July (7A): Council considered appropriations in the amount of $797,936.81. Wallace inquired about the payment for Combustion Controls at the Animal Clinic in the amount of $1,395. Keefer stated that it was for repairs to the crematorium. Wallace inquired about the payment to Madrigal & Welch for insurance. Keefer explained that they carry the City’s property and liability policies. Wallace inquired about the payment to Met Life. Keefer explained that the payment is for life insurance policies for City employees. Wallace inquired about the payment to Preferred Health Systems. Keefer explained that the payment is for health insurance for City employees. Wallace stated that on the Warrant Register Summary there are three charges in the amount of $938.34. Keefer stated that the charges were related to the extension of financing for the Lakepoint 6th Addition. Jones stated that the payment was split equally between the three project funds related to the internal improvements in the Lakepoint 6th Addition. Wallace inquired about the payment to Cooper Malone McClain in the amount of $2,750. Keefer stated that it was for costs associated with the extension of financing for the Lakepoint 6th Addition and that it was part of the expense that was split up amongst the three project funds. Marr made a motion to approve Ordinance 7A in the amount of $797,936.81. Wallace seconded the motion. Motion carried without opposition.
Visitors:
LouAnn Moore of Heartstrings came forward to discuss an issue with the utility billing for her business. Moore stated that it was brought to her attention that she owes close to $37,000 because of a billing error. She stated that her business works with fundraisers and that this is an expense that will hurt her company. Moore stated that the transformer that had been installed when the building was built in 2003 was struck by lightning this past May and had to be switched out. She stated that at that time it was discovered that the meter was not being read properly. Moore stated that her business is the fourth one this has happened to in Augusta. Moore stated that the voltage on the transformer was too high and because it could not be adjusted it put too much voltage into her freezer unit, causing a large expense to her. Moore stated that the president of the freezer company spoke to Tim Davis and was told that the voltage could not be lowered. Moore also stated that she has affidavits from electricians regarding their discussions with Davis, and stated that she did not feel he was doing his job properly. Wallace stated that many of the Council members were on her side. Wallace stated that the Council is not here to put her out of business and stated that the City should have known it was under billing her. Wallace stated that a lot of other cities have policies that state if fraud is not involved, they will only go back six months to collect. Wallace stated that he understood that precedence has been set in other cases, but that this is not right. Mayor Williams asked Moore if she did not pay for the electricity she used, who should pay for it. Cliff Williams stated that as a business owner, if he under bills a customer he cannot come back later and force them to pay. Williams stated that they could not afford to pay back the $36,866.97, and that the City should have to pay for it. Griffith asked Moore and Williams if they felt that they had a responsibility to know that they were only being charged $58 or so a month and that the cost of electricity for their residences were probably more than that a month. Moore stated that she had never had utilities in Augusta before and didn’t know what the cost would be, except that she was told it would be less expensive in Augusta. Williams stated that he could not determine by looking at the bill what all of the different charges were for and that all of the monthly bills are paid at once and not closely inspected.
Williams stated that because the City could not adjust the voltage on the transformer they had to replace $20,000 worth of equipment even though they had brought the issue to the City. Mayor Williams asked if they had the documentation and affidavits they spoke of. Williams stated that they didn’t, but that they could provide them to the Council later. Huddleston stated that the issue with the voltage is a separate issue from the under-billing.
Griffith stated that Moore should work out a payment plan to pay back the under-billed amount. Moore stated that she is working with City Clerk Jones to make payments on her current account balance, but that she was originally told when she started the business that utilities would be cheaper in Augusta than in Wichita. Moore stated that she does believe the numbers for the usage that Jones had provided to her, but that the amount was too high for them to pay it. Williams stated that they did not refuse to pay any of it back, but that the City bears responsibility for its errors. Griffith stated that he was not an electrician, but that he believed that the wiring that was done was acceptable. Williams stated that the voltage was not adjusted within specification. Bill Webster stated that Davis was contacted in July of 2006 by an electrician working for Moore and was told that the voltage was too high. Webster stated that Davis tested the voltage and that it was running at 494, which is within the specifications for a 480 volt system. Williams asked why Davis told the electrician that in order to adjust the voltage he would have to shut the whole City down. Davis stated that he did not say that, but that he did say turning down the voltage would have an effect on the whole City. Davis stated that the transformer did not have taps and could not be adjusted.
Keefer stated that Jones and Webster met with Moore and Williams when the issue was first discovered and that they discussed payment plans at that time and Moore and Williams were not interested in discussing the repayment of the under-billed amount. Keefer stated that he had not spoken to either Moore or Williams. Keefer further stated that he is aware of only two other cases of an under-billing. He stated that there was a church that was under-billed for a couple of months that brought it to the utility office’s attention and paid it immediately. Keefer stated that the other was for a larger business that made arrangements to pay it back over the course of three years. Keefer stated that he understands the burden that this would put on a small business and that the error should not have occurred. Huddleston stated that he still believes this is two separate issues between the under-billed electrical usage and the damage to their equipment. Huddleston asked if Staff had spoken to them about the damage to their equipment prior to tonight. Keefer stated that he had not. Williams stated that several cities have written policies and procedures on how to handle these types of issues, and should the City of Augusta have a policy. Huddleston agreed. Mayor Williams asked how the current billings were having an effect on the business. Moore stated that it is difficult and that it will hurt. Moore stated that fundraisers will start again soon and that money will start coming in in September. Moore stated that this business is very close to her heart. She stated that the new billings are going to make a difference, but that she was working on restructuring the company prior to this issue and will continue to do it so that the business can afford to pay for the higher electricity. Williams agreed and stated that this is a challenge that Moore will have to confront.
Moore stated that she wanted the expenses incurred due to the high voltage to factor in to the bottom line of what is owed to the City. Griffith stated that it would be better to deal with this as a separate issue to be discussed between Moore and City Staff. Keefer stated that he was not opposed to that. Huddleston asked Moore if her equipment is working properly now and she stated that it is. Mayor Williams stated that Moore and Williams should work with Staff to resolve this issue and move forward. Mayor Williams stated that the Council should work to establish what to do with these types of issues in the future. Keefer reiterated that he does not disagree that $36,866.97 is a large amount to have to pay back, and that Moore and Williams have some very valid questions. Keefer asked Moore and Williams to gather their documentation and contact Jones to set up a time and date to meet and review the information. Williams asked what the goal of that meeting will be. Marr stated that if the damage to equipment was caused by the City, those costs could be considered to offset part of the unbilled electric usage. Marr stated that the baseline is that there is $36,866.97 in unbilled electric usage and that Staff should work with Moore and Williams to extend payment arrangements for up to six years. Mayor Williams told Moore that she wants her to know that the City does appreciate her business. Marr asked that Staff bring resolution back to the Council along with any corrective action. Webster stated that after the issue was discovered with D-J Engineering, all multiplier meters were checked to make sure they were being billed properly. Webster stated that because Heartstrings did not have a three phase meter, it was missed during that review. Webster stated that his Staff is currently checking all business meters to identify all multiplier meters and is working with the Utility Office and City Clerk to make sure they are all being billed properly.
Huddleston stated that other cities and electrical service providers have a set policy on what to do when a customer is under billed. Huddleston stated that he understands that there is some responsibility on the consumer, but that it needs to be a fair period of time. Huddleston stated that some service providers will only go back six months, and that reaching back as far as you can is burdensome. Huddleston stated that the duty lies on the City to make sure the billings are correct, as consumers are not involved in any part of the billing process. Huddleston stated that the City has the responsibility and that the employees should be more careful. Keefer stated that he doesn’t disagree that the City needs a policy however; he does not recommend that it be retroactive. Wallace asked when the data for an ordinance will be presented to the Council. Keefer stated that Staff would do its best to have something to present to the Council at the first meeting in September or the second meeting in September at the very latest.
Huddleston stated that he is looking at the information provided to Heartstrings with the breakdown of what they were not billed for. Huddleston stated that the fuel adjustment has already been paid and that they are being asked to pay for it again. Keefer stated that as Huddleston is aware from previous discussions that he disagrees. However, Keefer stated that Webster is of the opinion that both Huddleston and Keefer are partially correct.
Old Business:
Property Maintenance: Council reviewed the status report from the Inspection Department on various properties that have been previously identified as in need of clean up and repair per the City’s Property Maintenance Codes. Inspector Dan Allen stated that the mobile home and debris at 1201 Money Lot 6 will be removed at the end of the month and that the work at 517 Santa Fe, 332 Main, and 336 Main had been completed and that no further action was required. Allen stated that the work at 119 E. Broadway was complete as well. The owner of the property at 1511 Ohio is consistently working on the property and will have the work completed by the fall. Allen stated that the kids that worked on the properties at 347 Main and 658 Santa Fe were from Michigan and Maine. Allen stated that they all worked very hard and that the City left a very good impression on them. He stated that they are already working on finding a project for next year. Allen stated that several local businesses supported the cleanup, the landfill lowered the tipping fees, paint was donated, and the City donated mulch. He stated that they were still working on getting the garage door up at 347 Main. Allen stated that the owner of the property at 325 Main is keeping the yard mowed, but has not worked on repairs to the house or removed the inoperable vehicles. Allen stated that he is working with Mr. All and hopes to have a recommendation on how to move forward for the next meeting. Griffith stated that he would like to compliment Allen for all the work that was done at 347 Main and 658 Santa Fe. Williams agreed. Allen stated that it was the kids that did all the work. Allen said that they pay $375 to come to camp and do this type of work. They give up their summer vacation and some even have to pay for their airfare.
New Business:
Public Hearing: Council conducted a Public Hearing to take input to determine whether a building located at 1219 Osage is considered an unsafe or dangerous structure. Glenda McVay was present to represent the property owners. She stated that the building will be demolished and asked how long she will have to complete the demolition. Williams stated that the resolution gives thirty days for a permit to be pulled and that demolition has to be completed ninety days after that. Williams asked McVay if that would be sufficient time to demolish the property. McVay said that would be plenty of time. Williams asked if a permit is required for demolition and if so what the cost is for the permit. City Inspector Allen stated that a permit is required, but that there is no cost for the permit. There were no further comments, so the public hearing was closed.
Council considered approval of a resolution designating a structure at 1219 Osage to be an unsafe or dangerous structure and ordering its repair or demolition. Wallace made a motion to approve Resolution 2007-07 designating a structure at 1219 Osage to be an unsafe or dangerous structure and ordering its repair or demolition. Harper seconded the motion. Motion carried without opposition.
Change Order: Council considered approval of Change Order #1 for the KLINK Phase III project. Griffith asked if the Council had recommended this portion of the road be included in the project from the start. Goedecke stated that the original plans went right up to where the State stopped their work before and was to reach the west side of the city limits this time. However, the State stopped paving 165 feet short of the west side city limits. Goedecke stated that the change order will be paid at the 75% rate like the rest of the project. Rawlings made a motion to approve Change Order #1 for the KLINK Phase III project. Chrislip seconded the motion. Motion carried without opposition.
Amending Petition: Council then considered approval of an amendment to the Petition(s) for Internal Improvements for the Lakepoint 6th Addition. Wallace made a motion to approve the Amending Petition for Internal Improvements for the Lakepoint 6th Addition. Chrislip seconded the motion. Motion carried without opposition.
City Dump Site #1: Council considered approval of a resolution authorizing the approval of an agreement with the Kansas Department of Health and Environment for the repairs and clean up of the City Dump Site #1. Griffith asked if this work can be done with City personnel. Keefer stated that he has been assured by Staff that it can be. Wallace asked if this property was the old shooting range. Keefer stated that this property is south of the old Mullin property and north of the tree farm. Wallace asked if Staff could foresee an environmental agency coming in and finding issues with the site. Keefer stated that he could not, but deferred the question to Willis Wilson. Wilson stated that the work to be completed will not do anything to disturb the area, so he does not foresee any issues. Marr made a motion to approve Resolution 2007-08 authorizing the approval of an agreement with the Kansas Department of Health and Environment for the repairs and clean up of the City Dump Site #1. Harper seconded the motion. Motion carried without opposition.
Engineering Services: Council considered approval of an engineering services agreement with Aqua Tech Engineering for the design of the pump by-pass connections for the four remaining lift stations. Griffith inquired about why the ones started this spring had not yet been completed. Keefer stated that one had been completed, but that the one in Lakeside still has concrete work left to be completed. Rawlings stated that the rain has slowed the project down. Dan Allen stated that there is a very high water table there, and that he has a plan to get water to bypass the pump and relieve pressure. Rawlings made a motion to approve an engineering services agreement with Aqua Tech Engineering for the design of the pump by-pass connections for the four remaining lift stations. Chrislip seconded the motion. Motion carried without opposition.
Girl Scout Little House: Council considered approval of a lease agreement with the Girl Scouts of the Golden Plains for city-owned property on which the Girl Scout Little House is located. Chrislip stated that the Girl Scouts had really worked hard on the property cleaning it up, painting it, and putting a new roof on. Harper stated that the original lease agreement had a lease amount of $1 per year and the new lease does not include the $1 lease payment. Mr. All stated that as a consideration of the lease agreement and a requirement for the ability to use the land they must maintain the building on the property. Huddleston asked how the property is zoned. Dan Allen stated that he believes it is zoned as Assembly. Huddleston asked if they would be required to pull permits. Allen stated that they would. Huddleston asked if their electrical would have to have conduit. Allen stated that they would not unless the wires were exposed. Chrislip made a motion to approve a lease agreement with the Girl Scouts of the Golden Plains for city-owned property on which the Girl Scout Little House is located. Griffith seconded the motion. Motion carried without opposition.
Code of Ordinance: Council then considered approval of a proposal from the League of Kansas Municipalities to update the City’s Code of Ordinances. Wallace asked if the governing body would have the opportunity to make changes to the draft. Keefer stated that the League would take the current code and incorporate all of the ordinances that have been passed since the original code and take the current laws and update the old code book. Keefer stated that at that time the governing body would have the opportunity to approve the draft. Keefer stated that any changes to a current ordinance would have to be presented to the governing body as a separate issue. Jones stated that for $250 annually, the League will update the current code with all of the ordinances that were passed that year. Huddleston stated that the $5,500 fee that the League is charging is half of what the other company was doing it for and asked why the City didn’t go with them in the first place. Keefer stated that the League did not provide a proposal when bids were originally requested. Jones stated that she was informed by the League that they provide this service, but do not provide proposals or respond to RFP’s in a bidding process. Griffith asked where the City was with the other company. Mr. All stated that he had been contacted by the president of the Municipal Code Corporation and that he did not indicate that they would be going after the City for breaking the contract, but asked for a copy of the draft that was provided to the City. Griffith made a motion to approve the proposal from the League of Kansas Municipalities to update the City’s Code of Ordinances. Harper seconded the motion. Motion carried without opposition.
Municipal Airport: Council considered approval of a proposal from former tenant Joe Perkins, dba Aviation Training Specialists, to settle his past due account for office rent at the Municipal Airport. Wallace stated that he agrees with Staff’s recommendation to accept the proposal; however, he wants to be careful about sending mixed messages. Griffith countered that in this scenario if the proposal was not agreed to, the City might not recover anything. Wallace stated that the memo said that Aviation Training Specialists has the $6,000 cash in hand. JJ Allen stated that was correct and that if the proposal is approved tonight, Staff will be contacting them in the morning requesting payment of the $6,000. Wallace asked what would happen if they did not have the funds on hand and countered with a lower offer. Mr. All stated that they had not kept up their lease agreement, so the Council would be free to do whatever they wanted. Rawlings made a motion to approve the proposal from Joe Perkins, dba Aviation Training Specialists, to settle his past due account at the Municipal Airport. Marr seconded the motion. Motion carried without opposition.
GAAP Waiver: Council then considered approval of a resolution waiving the requirements from K.S.A. 75-1120a(a) for fiscal year 2007 as they apply to fixed assets. Huddleston made a motion to approve Resolution 2007-09. Marr seconded the motion. Motion carried without opposition.
Informational Memorandum & Questions:
Chrislip – Chrislip stated that the Library’s minutes refer to SAB Hospital filing an injury claim against the Library and asked if that would have an effect on the City. Keefer stated that the Library has their own liability insurance coverage for this type of a claim.
Griffith – Griffith asked if Staff has heard from the property owners in response to the notice from the Corp that the flood wall is no longer cost effective compared to the earthen levee. Keefer stated that he has spoken to the property owners and has given information to one of the property owner’s son and had asked them to get in touch with him. Griffith asked if it had been anticipated that Dike Road would have to be moved. Keefer said that it had not. Keefer stated that the Corp is now saying that the road will have to be moved to the west at the City’s cost, but that it will be included in the amount for the City’s total share of the project. Keefer stated that the PCA Agreement will be presented in the next couple of weeks.
Williams – Williams stated that she has been out of town over the last few weeks. She asked that if someone’s call had not been returned to please call her again. Williams stated that she would like to have office space at City Hall to utilize the office starting on September 1st. Huddleston stated that he thought it was a good idea to have a room for the Mayor and Council members to have a meeting space.
Wallace – Wallace thanked the City for everything that was done to help support the car show on the previous weekend. Wallace stated that it was a great success.
Huddleston – Huddleston stated that the numbers on the monthly financial report show the electric and water departments behind on their revenue and asked if they would be coming up short on the expected revenue for the year. Keefer stated that it is typical to be short this time of year as the largest usage occurs between July and August and will be billed August and September. Keefer stated that October is a good time to start looking at those numbers. Huddleston stated that things seem to be going well at the Airport.
Marr – Marr stated that he appreciated the Planning Commission agenda being included in the packet. He asked what the proper procedure would be to ask the Planning Commission to table an issue on the agenda until the Council makes a decision about the zoning regulations. Mr. All stated that the Council cannot stop the Planning Commission from taking action on the parking lot issue. Keefer stated that the request before the Planning Commission is for a Conditional Use Permit, and that the Planning Commission has the final say on whether or not to issue the Conditional Use Permit. JJ Allen stated that the application has been made and the applicant has the right to expect a response in a reasonable amount of time. Huddleston asked if the Planning Commission will take the zoning regulations into consideration. Keefer asked if there was a specific area in the ordinance that addresses their concerns. Marr stated that the ordinances differ on whether the curb cuts stay or are taken out. Marr stated that the curb cuts were put in with the understanding that Curves needed off street parking, but that the business has since relocated. Marr stated that the Main Street committee and Streetscape plans both say that the curb cut will come out. Chrislip stated that when Curves closed at that location the curb cut should have been put back in. Keefer stated that the curb cut was granted for two years and at the end of two years it would have to be brought back to the Council. Keefer stated that Curves closed prior to the two years being up and since that time the property has not been used as a parking lot. Keefer stated that the Streetscape project does show the curb cut removed. Keefer stated that this is the first interest that has been shown in this lot. Huddleston asked if a Conditional Use Permit would be needed for a carport. Dan Allen stated that he had told the applicant that the carport may not pass. Williams asked if the applicant will have to go before the Main Street Committee about the fencing for the lot. Dan Allen stated that she would not, but that the owner plans on using a wrought iron fence. Allen stated that the lot will be available for public use during the day and closed at night to keep people at the bar from using it. Williams stated that the owner will do a good job of cleaning up the lot. Allen stated that the Planning Commission could require her to go before the Main Street Committee as part of the approval of the Conditional Use permit. Williams asked if that would be the City’s committee and Keefer stated that it would be Downtown Augusta Inc.’s committee. Marr stated that he does not want to undermine the regulations that are out there now. He wants to make sure that we go about this the right way. Marr said that the Council has a recommendation that says using the lot for parking is not in the best interest of the Streetscape project. Williams stated that the facades that are being put up are not entirely accurate of what was there 100 years ago, but that they are trying to do the best they can with the funds available. Rawlings stated that it is better to have a parking lot there than letting it stay an abandoned gravel lot with weeds growing all over for the next twenty years. Huddleston asked if he would have the right to speak as a property owner. Mr. All stated that because he is a property owner within 250 feet from the lot in question, Huddleston would have the right to protest. Mr. All stated that Huddleston may have a conflict of interest though and have to abstain from voting if it came before the Council, but since it will not be presented to the Council Huddleston would have the right to attend the Planning Commission and voice his opinion. Keefer stated that the Council would have the right to approve or not approve the curb cut itself as part of the Streetscape project. All stated that there was a previous agreement to take the curb cut out. Keefer stated that if not for the Streetscape project, the curb cut would have already been removed. Marr stated that he does not want someone to invest money into the lot and it not fit into the Streetscape project. Martin Goedecke stated that the curb cut was not included as part of the Streetscape plans and that it would take away a substantial number of parking stalls on the street. Dan Allen stated that the alley is not the best way for the lot to be accessed. Huddleston asked if the owner of the lot was not aware of the issue with the curb cut prior to her application for the Conditional Use permit. Williams stated that she had told her, but that she may not have completely understood. Dan Allen stated that he was not aware of the issue or he would have discouraged her application. JJ Allen stated that he had a conversation with the owner and that she was aware of the issues. Mr. All stated that he does not think the Council should make any decision about the curb cut without involving all of the other interested groups. Rawlings stated that even if the Planning Commission approves the application, the curb cut could be taken out later. Rawlings stated that the Council should spend some time discussing this issue and should get the other interested groups involved in the discussion. Marr stated that Staff will be the communication between the Council and Planning Commission, and asked what the consensus of the Governing Body is. Williams asked if Downtown Augusta Inc. will be at the Planning Commission meeting and if they will have time to have their own meeting between now and next Monday. Marr stated that he wants to ensure that the appropriate groups and adjacent business owners are at the Planning Commission meeting. Keefer stated that he will reiterate to Downtown Augusta Inc. the importance of their attendance at the meeting. Marr stated that when approving the Streetscape plans the entrance to the lot will be addressed. Marr stated that the egress to the alley is always a secondary choice for entering the lot.
Marr asked if the proposed truck yard at SW Ohio and SW 20th Street referred to in the Butler County Board of Commissioner’s minutes is in the City’s growth area. Keefer stated that it is outside the City’s jurisdiction. Marr stated that the General Fund Revenue on the monthly financial report shows that it is at 61% of the budgeted revenue. Keefer agreed and stated that is typical at this point in the year because the City has received two big tax distributions. Marr asked if the two donated benches were tied down. Keefer stated that they are. Marr stated that there was a rumor that the City is not accepting newspaper for recycling. Keefer stated that was incorrect and that newspaper recycling was paying better right now than most of the other recyclable materials. Marr asked for an update on the building for Santa Fe Lake. Dan Allen stated that the building has been moved and is currently stacked up waiting for the season to slow down and the weather to cool down.
Harper – Harper asked if the pool manager would be providing verbal a report at the end of the season. Keefer stated that there has not been a verbal one in the past, but Staff had provided a written report annually. Harper stated that she would like to see general comments on how often the pool was cleaned and how many people it took. Harper stated that it would be good for the Council to get a progress report. Keefer stated that Staff will work on getting something together to present to the Council.
Adjourn: At 9:50 p.m. Harper made a motion to adjourn. Wallace seconded the motion. Motion carried without opposition.
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