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CITY COUNCIL
MARCH 3, 2008
7:30 P.M.
The Council of the City of Augusta, Kansas met in regular session on March 3, 2008, with Council President Robert Griffith presiding. Council present were Holly Harper, Douglas Marr, Michael Huddleston, Michael Wallace, Tom Leffler, Mike Rawlings, and Roger Chrislip. Mayor Kristey Williams was absent. Also present: City Manager Bill Keefer, Assistant to the City Manager JJ Allen, and City Clerk Erica Jones. Visitors present were: Michael McDermott, Martin Goedecke, Julie Roller, and Dave Mattingly.
Prayer: Mark Summerville, Hospice Care of Kansas gave the invocation.
Minutes Council: Minutes of the February 19, 2008 council meeting were reviewed. Marr made a motion to approve the Minutes of the February 19, 2008 council meeting. Wallace seconded the motion. Motion carried without opposition.
Appropriations:
February (2A): Council considered appropriations in the amount of $1,002,075.45. Griffith inquired about the payment to Craig Hacker Photography. Keefer stated that the Safety Department had photos taken in their new uniforms for their website and for public relations purposes. Griffith inquired about the payment made to Hale’s Sales and Service. Keefer stated that it was for repairs to the Park Department’s slope mower. Huddleston inquired about the payment to the Domain Registry. Keefer stated that it was to re-register the “augusta.gov” domain name. Huddleston inquired about the payment to Ferrell Gas for a propane tank rental in the amount of $1.90. Allen confirmed that it was for two tank rentals. Huddleston inquired about the payment to Hugo Wall School. Keefer stated that it was for the City Clerk’s registration for educational programs and conferences. Griffith inquired about the payment to Rush Plumbing and why a local contractor had not been used. Keefer stated that it was related to an issue with a sewer line and frequent problems with backups into a resident’s home. Keefer stated that we had agreed to pay for the installation of a backflow device to help limit future problems. Keefer stated that the resident had the work done and submitted the bill to the City for payment. Wallace made a motion to approve Ordinance 2A in the amount of $1,002,075.45. Marr seconded the motion. Motion carried without opposition.
New Business:
Public Hearing: Council conducted a Public Hearing to take input on the proposed revolving loan application from STM, Inc. in the amount of $60,000. The public hearing was closed without any comments made by the public.
Council considered approval of the loan application from STM, Inc., and direct Staff to prepare the necessary documents for the Mayor’s signature. Griffith stated that the Economic Development Board recommends approval of the loan and that STM, Inc. currently has a revolving loan. Chrislip referred to the guidelines that the loan amount should not exceed $10,000 per job created or retained and asked if these guidelines can be changed at will. Allen stated that the Board is asking the Council to make an exception in this case. Allen stated that any permanent changes in the guidelines would have to be approved by the Council. Leffler asked Dave Mattingly with STM, Inc. how the collateral values were calculated. Mattingly stated that an appraisal had been completed a couple of months ago. Leffler referred to a letter from Bank of America about their rejection of the loan and stated that there was no additional documentation on why the loan was rejected. Mattingly stated that he was told they do not like to make tooling and equipment loans.
Leffler asked Mattingly to explain what mausoleum trays are and STM’s plan for marketing them. Mattingly stated that they are trays that go under caskets and that there are over 100,000 used annually. Mattingly stated that the trays can only be used once. Mattingly stated that STM, Inc. was approached by Stewart Industries and asked if STM, Inc. would be interested in manufacturing the mausoleum trays for them. Leffler asked if Stewart Industries would become a customer right away. Mattingly stated that they would.
Wallace asked how the $60,000 loan would be used. Mattingly stated that it would be used for a new tool and to update a current machine and also include some marketing. Leffler asked whether the City would have the first or second lien on the equipment. Allen stated that the application stated that the City is generally comfortable with the second position on collateral, but when the Economic Development Board met on this it was changed to state that the City will have the first position.
Huddleston referenced STM, Inc.’s financial statements and said that it appears the company was profitable in 2005 but in 2006 they took a $200,000 loss. Mattingly stated that was not correct, that there was a profit in 2006. Huddleston asked Mattingly if he had a projection on how this loan will improve STM, Inc.’s profit in 2008. Mattingly stated that he did not, except to say that it would help their profit. Huddleston asked if the slow on home building has affected STM, Inc. Mattingly stated that it has not yet, but that if they make $50,000 to $60,000 this year they will be happy. Huddleston asked if Mattingly felt there would be sufficient income to repay their debt. Mattingly stated that he does. Allen stated that the debt service payments for the new loan would be the same as the previous loan.
Leffler asked how quickly they would be able to start producing the trays. Mattingly stated that it would be approximately four to five weeks, and that they already have orders for close to three hundred trays.
Wallace made a motion to approve the loan application from STM, Inc., and direct Staff to prepare the necessary documents for the Mayor’s signature. Leffler seconded the motion. Motion carried without opposition.
Change Order: Council considered a change order to the 2007 Street Sales Tax Program adding the street repairs to the balance off Santa Fe Street as approved in the 2008 Street Sales Tax Program. Huddleston inquired about curbing on Frisco. Goedecke stated that where there is curbing now, it would be replaced. Huddleston stated that he didn’t believe there was currently any curbing on Frisco. Goedecke stated that there is, but that it is currently covered over by dirt. Goedecke stated that the repairs would not be taken all of the way to Ohio Street. Marr stated that the curbing on Frisco stops just after the little building.
Wallace asked who was going the work in that area now. Keefer stated that the Gas Company is currently working in that area and it looks like it will be the middle of March before they are done. Huddleston asked if there was any further thought on an ordinance requiring a permit for this kind of work to be done. Keefer stated that the ordinance is half of the way completed and in holding right now, but that permits were pulled for the work being done now. Huddleston asked if the Building Inspector is inspecting the work. Keefer stated that he will be inspecting the curb and gutter, and the streets and sidewalk repairs to make sure they are completed.
Marr made a motion to approve a change order to the 2007 Street Sales Tax Program in the amount of $110,226.35. Wallace seconded the motion. Motion carried without opposition.
Work Session: Council considered scheduling a joint work session with the School Board for Monday, March 24, 2008 at 5:30 p.m. at the School Administration office. Chrislip and Leffler stated that they would not be able to attend on that date. There was discussion that the time was too early and it was recommended that it start closer to 6:00 or 6:30 p.m. Rawlings made a motion to schedule a joint work session with the School Board on Monday, March 31, 2008 at 6:15 p.m. at the School Administration office. Harper seconded the motion. Motion carried without opposition.
Informational Memorandum & Questions:
Harper – Harper thanked the street crews for fixing up the downtown area.
Huddleston – Huddleston inquired about the status of the list he requested of city owned property that is leased out. Keefer stated that it is on the list of things to do. Huddleston inquired about the status of the codification. Jones stated that she spoke with the League today and they are working solely on Augusta’s Code and hope to have it completed by the middle of the month.
Leffler – Leffler stated that it is frustrating that local dealers will not bid on City vehicles, but that according the Butler County Commissioner minutes they will bid on County vehicles.
Leffler asked for an update on the work being done downtown. Keefer stated that there was quite a mess down there last week, but that they have made a concerted effort to clean up the area. Keefer stated that instead of working on a fourth of the block at a time, they are now only working on one or two service connections at a time. Keefer stated that there are limited work crews and that they are often pulled off the project for other jobs and leaks. Keefer stated that he has received questions about contracting the work out, but that he thinks the city crews can complete the work. Keefer stated that they are trying to minimize the impact of the project on the property owners. Leffler stated that there are some 80 hookups left to be done. Keefer stated that the 600 block has been completed and that they are working on the 500 block. Marr inquired about the City’s policy on overtime in regards to projects like these. Keefer stated that there is limited overtime based on the budget and that there was significant overtime paid out at the first of the year. Keefer stated that the schedule has been altered to four ten hour days to help ensure that there is someone able to work on the at all times during the work week. Marr asked if it would help get the project completed if they were working on Saturdays or Sundays every other weekend instead of hiring a contractor to complete the work. Keefer stated that they have to work within the constraints of the budget. Marr asked for information on this to be included in the next informational memorandum.
Griffith – Griffith asked if the mandates from FEMA to certify our levees have always been there or if this is something new. Keefer stated that FEMA started notifying cities around a year and a half ago that they must be certified. Griffith asked if they would not accept what the Corp has completed for us. Keefer stated that there are no documents out there that certify that they meet the required specifications. Keefer stated that along Walnut the flood wall was raised by 18 inches in the late 1970’s, but that the Corp does not have records that pertain to that project. Keefer stated that what FEMA has encountered after Hurricane Katrina is that there needs to be documentation that certifies that those levees listed as a 100 year flood protected levee are in fact 100 year flood protected levees. Keefer stated that the PAL Agreement signed last fall gave the City two years to provide certification and that if it is not certified within that timeframe that certain areas of the city may be designated within a flood plain and require property owners to purchase flood insurance.
Wallace – Wallace asked that memos in the council packet identify who has written them. Keefer stated that Staff is working on changing those to identify who has written them. Keefer stated that Allen and Jones already list their names on the memos and generally those addressed from “Staff” have been written by Keefer.
Marr – Marr thanked Staff for the building permit feedback. Marr referenced item #2 on the Informational Memorandum and asked what it would take to extend Lulu from 7th to 6th Avenue by taking out the railroad. Marr stated that it would open up truck routes and other traffic plans. Keefer stated that he was not sure that there is enough right of way. Keefer stated that the truck route cannot be changed because it is a state highway. Marr stated that by extending Lulu to 6th Street it would remove Dike Road. Marr stated that it would be a benefit to put the right of way there as wide as at 7th Street to open it up for development and have options available for development. Marr stated that it eliminates the potential for congestion of vehicles coming in from Wichita and making right turns. Keefer stated that the Council would have to direct Staff to research availability and cost of obtaining the right of way. Huddleston stated that if the City has to obtain the right of way for Dike Road, it could obtain the right of way for Lulu instead and close Dike Road. Keefer stated that Dike Road is out of the city limits and controlled by the township, but that he didn’t think the township would be argumentative about not having to maintain Dike Road. Rawlings stated that there are some of the council members that have been working on this project for a number of years. Marr stated that he would put it in a motion so if someone wants to develop in that area they could and so right hand turn lanes could be added. Keefer stated that KDOT would have to be involved with the right hand turn lanes and that this would require traffic studies and a lot more research. Marr stated that what feels right to him is to extend Lulu from 7th to 6th Avenue. Keefer stated that this issue has been tossed around in the past and that the owner of the storage units has been made aware that it may be considered in the future. Keefer stated that if the Council advises him to do so, he could get the costs associated with this. Wallace stated that it would be a good idea.
Marr referenced the letters from citizens in the council packet and asked if the Council’s email addresses are listed on the City website. Keefer stated that there is not currently a City website. Marr inquired about listing them on channel 7. Keefer stated that could be done. Marr asked if there is a city group email for the Council. Keefer stated that there is not. Marr asked what we want the town to be and stated that we should open up several outputs for the public to communicate with the Council. Keefer stated that it is in the 2008 budget for development of a City website and that there could possibly be an email address for each council member or a general email address if that is the way the Council prefers it. Huddleston inquired about a locked mailbox for each Councilmember and the Mayor at City Hall. Keefer stated that mail can currently be delivered to the Council by bringing it to City Hall. Keefer stated that mail will not be opened if it is addressed to a specific Councilmember, but if it is addressed to the Council in general then it is opened and copied for each member. Huddleston stated that he would like to find a way to get the letters before the council packet. Rawlings stated that he is not a fan of an open email address. Leffler stated that he likes the idea of using email and asked if addresses for the Council could be included on the Safety Department’s website until the City’s site is completed. Marr stated that there appears to be enough interest to include additional information in the next informational memorandum. Wallace stated that he gives out his phone and email address to his constituents. Griffith asked why they would have to have an email address. Wallace stated that they wouldn’t have to.
Adjourn: At 8:38 p.m. Griffith made a motion to adjourn. Marr seconded the motion. Motion carried without opposition.
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