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CITY COUNCIL
JULY 7, 2008
7:30 P.M.
The Council of the City of Augusta, Kansas met in regular session on July 7, 2008, with Mayor Kristey Williams presiding. Council present were Holly Harper, Michael Huddleston, Michael Wallace, Douglas Marr, 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, and City Clerk Erica Jones. Visitors present were: Michael McDermott, Eric Christinat, Julie Roller, Willis Wilson, Elaine Thomas, Bill Morris, Darcy Herold, Connie Thurman, Lee Miller, Martin Goedecke, Brett Kappelman, and Patrick Miller.
Prayer: Reverend John Einem, Christ Lutheran Church gave the invocation.
Minutes: Minutes of the June 16, 2008 council meeting were reviewed. Wallace asked for clarification in regard to Mr. All’s statement that “if they fulfill the requirements then they cannot be turned down”. Mr. All stated that it was what he said and that as long as an applicant fulfills the requirements of the license, they cannot be turned down. Huddleston asked if the Council then is only verifying that they have met the requirements. Mr. All agreed. Harper made a motion to approve the Minutes of the June 16, 2008 council meeting. Wallace seconded the motion. Motion carried without opposition.
Appropriations:
June (6A): Council considered appropriations in the amount of $911,958.80. Harper inquired about the payment to Hull Welding in the amount of $1,000.00. Keefer stated that it was the down payment for the Airport tank that was approved by the Council at a previous meeting. Marr inquired about the payment to Martin Pringle in the amount of $13,858.49 paid out of electric administration. Keefer stated that it is payment for legal services regarding the wastewater plant. Keefer stated that he has divided the bill up among different funds as to not strain the current wastewater budget. Marr inquired about the payment to Space Station Storage in the amount of $237.05. Keefer explained that the cemetery sexton was digging a grave and because of the muddy ground the backhoe slid into a building owned by Space Station Storage causing minor damage. Keefer stated that this payment was to cover the cost of repairs made to the building. Griffith made a motion to approve Ordinance 6A in the amount of $911,958.80. Harper seconded the motion. Motion carried without opposition.
Visitors:
Downtown Augusta Inc.: Julie Roller, Executive Director was present representing Downtown Augusta Inc. (DAI), to request their 2009 Main Street Funding from the City of Augusta. Williams stated that she had a lot of questions and that if they agreed, she would like to visit with Keefer and new DAI Executive Director Eric Christinat. DAI Board President Darcy Herold stated that they have spoken to Keefer about their request and answered the questions that he posed to them. Williams stated that one of the questions she has is how much they have in IWW funding, but that it is not necessarily relevant to today’s discussion. Roller stated that they received a $15,000 IWW grant for 412 State Street as well as $15,000 in IWW loans. Roller stated that after the loans are paid in full they will have $33,418. Williams asked if that includes the $15,000 grant. Roller stated that it does. Roller stated that Cooper Drug is currently repaying their loan, but that all of the other loan recipients have paid their loans back in full. Roller stated that they have $15,000 in their revolving loan fund, but that those funds have to go through the State for approval before DAI could give that out. Huddleston asked what the request that is before the Council tonight is. Roller stated that they are asking for increased funding. Roller stated that DAI continues to receive the same funding from the City, but that their services and the cost of doing those services have increased throughout the years. Williams asked if they anticipate that they will have to take on paying rent or paying their utilities. Roller stated that they have not discussed that. Roller stated that DAI continues to borrow money from the next year’s budget to meet the current year’s needs.
Williams asked how many members DAI has and how many are downtown businesses owners. Roller stated that they have 50 to 60 members and that she is not sure how many of those are downtown business owners. Wallace stated that he understands they are only requesting an additional $3,500 this year, but that in three to four years they are asking to double the funding. Wallace stated that he would want the organization to come back each year to make their request for funding. Roller agreed and stated that DAI received $2,500 in funding from the County and although they understand that this will be an annual need, they will have to go back to the commission every year to make the request. Roller stated that it would be the same for the City Council.
Harper asked if this will help take care of the deficit. Roller stated that they are currently working very hard to make up for the current year’s deficit so any additional funding will be used in the budget year it is provided for instead of being used for this year.
Roller explained that out of the 15 full time Main Street Programs, Augusta’s program is last in the amount of city contributions. Roller stated that out of all of the State’s 23 Main Street Programs, Augusta’s city funding is ranked 21st. Huddleston stated that compared to the cities that Augusta frequently compares itself to for utility rates, Augusta falls short. Huddleston stated that the City of Chanute provides 52% funding, Independence 39%, Winfield 35% and that Augusta only provides 25% of the funding. Huddleston asked if we are short selling ourselves and our organizations by not contributing or being more supportive. Huddleston stated that the request was to increase to $13,500, but that maybe they should consider making more of a contribution.
Leffler asked if they decide to do this, if Staff needs to know now so they can include it in the budget. Keefer stated that he would need direction from the Council. Keefer stated that he could work it into the budget and have it as a point of discussion during the work session. Leffler stated that the City does need to step up our contribution for the development of the downtown. Leffler stated that he thinks it should be included in the budget.
Chrislip reminded the Council that the other cities we are comparing ourselves to may have tax bases higher than ours. Huddleston stated that he is correct. Williams addressed Roller and stated that she thinks the Council is very supportive of her efforts. Williams stated that today is Roller’s last day as Executive Director of DAI and thanked her for her hard work and stated that it has been a pleasure to work with her.
Brett Kappleman, downtown property owner and owner of Cooper Drug, stepped forward in support of Downtown Augusta, Inc. Kappleman stated that in his five years downtown he has sought the support of DAI on several occasions. Kappleman stated that the support included advice, promotion of the downtown through festivals and special promotions, design assistance, and financial assistance in the form of a $15,000 zero percent interest loan for the remodel of Cooper Drug in 2007. Kappleman stated that DAI has done a remarkable job of securing IWW loans in this district which will help with the renovation of downtown. Kappleman stated that building occupancy has increased and the community is starting to return downtown. Kappleman stated that with the upcoming Streetscape project, a stable support system for DAI is needed to help take the downtown into the future. Kappleman stated that he understands that budgetary demands are putting more stress on keeping DAI operating, so he would appreciate the City’s financial support in keeping the organization thriving.
Patrick Miller: Patrick Miller, 904 Ohio, addressed the Council regarding the Sanitation Department. Miller stated that his wife witnessed the sanitation workers putting their plastic kitchen trash container in the trash truck. Miller stated that he called the Sanitation Department regarding this and was told that the information would be forwarded to the supervisor. Miller stated that he saw the supervisor talking to the workers a block from his home, but that he was never contacted. Miller stated that he called the Sanitation Department again and was told that the supervisor did speak to the driver and that he admitted to throwing away the trash container and that the secretary did apologize for it. Miller stated that there was not any discussion about the City replacing or reimbursing him for the cost of the container. Miller stated that he spoke to Keefer at City Hall about the situation, but that he still has not been contacted by the sanitation supervisor. Williams stated that Miller should be sure to leave his information and that Keefer will follow up on this to make sure that it is made right. Wallace stated that he has dealt with the Sanitation Department before too and that Cecil did not return his call right away, but that he did call him the following day.
New Business:
Temporary Notes: Council considered bids for Temporary Note Financing for Internal Improvements for Stone Lake Estates Addition 3rd Phase and Belmont Place 3rd Addition. Keefer stated that he has met with the developers to discuss the Council’s concerns regarding personal guarantees and that there has not yet been a resolution to that issue. Keefer stated that the developers would like an opportunity to have an informal discussion with the Council regarding this issue. Keefer stated that in light of that, it would be in our best interest to reject the bids at this time. Keefer stated that if we issue the debt now, we will start expending dollars and accruing interest. Keefer stated that if the issue is not resolved and they decide not to do the work at this time, we will have unneeded debt. Wallace agreed and stated that it behooves the Council to make sure that the debt will be secure. Wallace made a motion to reject the bids submitted for Temporary Note Financing for Internal Improvements for Stone Lake Estates Addition 3rd Phase and Belmont Place 3rd Addition. Harper seconded the motion.
Marr asked if staff has any idea what the Council can expect as part of the work session discussion. Keefer stated that he has spoken to the developers and that he will speak to them again before the 21st. Keefer stated that they feel personal guarantees should meet the Council’s needs. Keefer stated that they expressed a desire to meet with the Council in an information session to explain why. Keefer stated that they want to get started and move forward with the project. Keefer stated that by tabling the bids at this time it will delay the project by about a month. Williams stated that during the work session on the 21st, the Council should be mindful and do everything they can to promote development in our community. Williams stated that from January to April, Augusta had 13 building starts compared to El Dorado’s 14 and Wellington’s 4. Williams stated that we should work diligently to resolve this issue. Marr asked if staff thinks we can do that. Keefer stated that he has discussed the options with the developers. Williams stated that the Council may want to consider options and other possibilities for the developers.
Motion passed with Marr opposing.
Wallace made a motion to table a Resolution authorizing the sale and issuance of $500,000 in general obligation temporary notes, an Engineering Services Agreement with Goedecke Engineering for Belmont Place 3rd Addition, and an Engineering Services Agreement with MKEC Engineering for Stone Lake Estates 3rd Phase. Chrislip seconded the motion. Motion carried without opposition.
Work Session: Marr made a motion to schedule a work session for 6:30 p.m., Monday July 21 to discuss Personal Guarantees and Letters of Credit for developer special assessments. Harper seconded the motion. Motion carried without opposition.
Engineering Services: Rawlings made a motion to approve an Engineering Services Agreement with Goedecke Engineering for design services for a 7th Street KLINK Project. Marr seconded the motion. Motion carried without opposition.
Keefer stated that Martin Goedecke is having a Streetscape pre-bid conference for contractors tomorrow at 10 a.m. at City Hall. Huddleston asked if Keefer spoke to Goedecke about his concerns regarding public notification. Keefer stated that he has and that they will work that out with the contractor once the project bids are approved.
Vehicle Bids: Council considered bids for the purchase of a pickup for the utility meter readers. Marr made a motion to approve the bid from Fenton Ford Lincoln Mercury in the amount of $13,099 including trade in for a new meter reader vehicle. Leffler seconded the motion. Motion carried without opposition.
Chrislip asked if Staff knows why there are not more bids. Jones stated that the bid specs for this vehicle stated that we were looking for a compact truck, but that Chevrolet and Dodge no longer make small compact trucks so that could have excluded them from bidding. Jones stated that there is not a need for a large truck because the meter readers do not haul a lot of equipment, and that a bigger engine that uses more gasoline was not really needed either. Jones further stated that Ford has a vehicle that most fits the bid specs, but that out of the four or five dealerships that could have bid that vehicle only one submitted a bid.
Wallace inquired about the book value of the trade in vehicle. Keefer stated that he was unsure of that value. Wallace asked if Staff has looked at trying to bid the vehicle or take it to auction. Keefer stated that Staff has done that in the past, but has not been very successful in receiving much more than what was needed to cover the auction fees and Staff’s time. Keefer stated that a trade-in is an easy way to get rid of the vehicle.
Variable Frequency Drive bids: Council considered bids for the purchase and installation of a Variable Frequency Drive (VFD) at the high service pump station. Leffler made a motion to approve the bid from American Control in the amount of $11,679.59 for purchase and installation of a variable frequency drive at the high service pump station. Huddleston seconded the motion. Wallace asked if we know any history about American Control. Keefer stated that they have done work with the water plant before and that he is not aware of any issues. Keefer stated that they will have to pull a permit to complete the work. Marr asked if the motion includes the option to remove the existing Cla-val and replace with a check valve. Keefer stated that the motion is just for the purchase and installation. Wallace asked if MI-TE Electric’s bid included that option. Rawlings stated that it did not.
Motion carried with Rawlings abstaining.
Set Off Program: Council considered authorizing the submittal of delinquent utility accounts to the State Set Off Program. Huddleston inquired about writing off accounts. Jones stated that the only accounts that are written off are those under $25.00 or those where the account owner is deceased. Jones stated that staff will bring those before the governing body for approval to write them off. Jones was asked if the list of accounts would be provided at that time. Jones stated that the governing body will be provided with the total amount to be written off and the number of accounts. Wallace inquired about the collection fees charged by Midwest Service Bureau. Jones stated that they will only charge a few if they collect money. Jones further stated that they will not charge a fee on any of the monies collected by the State through the Set Off program. Huddleston stated that he would still like to see how many are turned over for collection. Jones stated that she could provide information on how many accounts were turned over for collection and how much of that has been collected at the end of the year with the write off request. Leffler stated that he would also like to see the amount that has not been collected. Harper made a motion to authorize staff to submit delinquent utility accounts to the State Set Off program as it is deemed necessary without first obtaining Council approval. Marr seconded the motion. Motion carried without opposition.
Council considered authorizing the use of a collection agency to assist with the collection of delinquent utility accounts. Wallace mad a motion to approve working with Midwest Service Bureau, Inc. to assist with the collection of delinquent utility accounts. Huddleston seconded the motion. Motion carried without opposition. Williams thanked Jones for looking at other ways to recover the delinquent funds.
Informational Memorandum & Questions:
Wallace – Wallace stated that it is good to see that Staff is working on identifying the properties that are in need of repair and clean up. Keefer stated that this is an ongoing, never-ending process. Keefer stated that Staff had intended to bring a resolution to the Council tonight to set a hearing for one particular piece of property, but that the property owner has begun to address some of the concerns of Staff.
Huddleston – Huddleston asked if we have enough bricks to be donating them to the Augusta Historical Society. Keefer stated that we don’t normally give bricks away because we use them for street repair and maintenance, but that we do have sufficient bricks at this time to meet their request.
Final Comments:
Huddleston – Huddleston asked when the work will start at 12th and Dearborn and what the expected completion date is. Goedecke stated that they have run into a lot of delays due to utilities, but that tentative plan is to start the work in two weeks unless there is a lot of rain between now and then. Goedecke stated that the work will take four to six weeks to complete.
Williams – Williams thanked Pro Kleen and Lakepoint for the contribution to the fireworks display and stated that she had out of town visitors that were very impressed with the show. Williams stated that there is an Economic Development Taskforce meeting scheduled for this Thursday at 6:30 p.m. at the Chamber of Commerce. Williams stated that they expect to present the Vision to the Council this fall. Williams stated that the first City Council / School Board meeting is scheduled for noon on August 29th. Williams reminded the Council of the budget work session scheduled for July 14th and the work session scheduled July 21st at 6:30 p.m.
Williams stated that when the signage was approved, she did not know that they were approving a stucco sign with metal letters. Williams stated that she thought concrete casting is something we should look at. She stated that she spoke to Bill Morris and that he will be bringing that to the Council as an alternative.
Williams stated that they are working on recruiting donors for API who in turn would receive tax credits for their donation. Williams stated that there will be an E Community grant meeting on this Wednesday at 5:30 p.m. at the Chamber of Commerce. Williams stated that they are applying for an entrepreneurial grant. Williams asked where we are on RFP’s for the westward expansion. Allen stated that the selection committee is meeting this week and may choose to interview the firms. Allen stated that they will then make their recommendation to API.
Wallace – Wallace inquired about the progress on the repairs to the sidewalk by Jason Bradley. Keefer stated that he spoke to the City Inspector a week ago and that Bradley assured him that he is going to do the repairs, but that he is trying to set aside the money to do it. Keefer stated that Bradley knows that he is responsible for the repairs. Wallace stated that he thinks we should give him a deadline of the end of this month to complete the repairs. Wallace asked when the Streetscape project will start. Goedecke stated that the bids will be opened on July 16th and the work should start the first part of September. Goedecke stated that there are 365 calendar days allowed for the project, so if it is started in September it should be completed in September of next year.
Wallace commented regarding the drainage issue on Edgewood Street. Wallace stated that if you are in the 400 block and look south, you can see that there is a drain. Wallace stated that the ditch where the drain is has filled with mud and dirt. Wallace stated that we should do what we can to help the property owners. Keefer stated that there is constant flow in that area due to sump pumps. Keefer stated that Cecil Gross pulled out a little bridge there and that we are going to mow the area. Keefer stated that he spoke to Goedecke about shooting some grades down there. Keefer stated that this is a challenge, but that we are going to continue to look at options to help address the issue. Keefer stated that the School District owns that property.
Executive Session: At 8:35 p.m. Wallace made a motion to approve an executive session to consult with an attorney on matters that would be deemed privileged in an attorney-client relationship lasting 30 minutes. Rawlings seconded the motion. Motion carried without opposition.
At 9:05 p.m. Wallace made a motion to exit executive session with no action being taken. Harper seconded the motion. Motion carried without opposition.
Adjourn: At 9:06 p.m. Wallace made a motion to adjourn. Harper seconded the motion. Motion carried without opposition.
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