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CITY COUNCIL
FEBRUARY 17, 2009
7:30 P.M.
The Council of the City of Augusta, Kansas met in regular session on February 17, 2009, with Mayor Kristey Williams presiding. Council present were Holly Harper, Matt Childers, Michael Huddleston, Mike Rawlings, Robert Griffith, and Roger Chrislip. Council absent were Michael Wallace and Tom Leffler. Also present: City Manager Bill Keefer, City Attorney David All, Assistant City Manager JJ Allen, and City Clerk Erica Jones. Visitors present were: Michael McDermott, Eric Christinat, Mike Mead, Jack Manske, Willis Wilson, Denise Rockers, Gavin Fitpatrick, and Martin Goedecke.
Prayer: Councilman Rawlings gave the invocation.
Minutes: Harper made a motion to approve the Minutes of the February 2, 2009 council meeting. Huddleston seconded the motion. Motion carried without opposition.
Appropriations:
February (2): Council considered appropriations in the amount of $613,702.62. Chrislip inquired about the payment to Berry Tractor. Keefer stated it was for repair work to a backhoe. Chrislip inquired about the payment to D & S Auto Supply. Keefer stated it is the local NAPA store and that it was for various vehicle repairs. Chrislip asked if the payment to Reddi Root’r in the amount of $1,628.95 was for labor only. Keefer stated that it was not. Keefer stated there will be bills in excess of $13,000 for the new liner that was installed. Keefer stated the city will be filing a claim for damages with Kansas Gas, because when they were working in the alley they ran one of their lines through our sewer service line. Chrislip inquired about the payment to Vision Care Direct. Keefer stated it was for the vision coverage for employees. Chrislip asked if this will be a monthly charge. Keefer stated it will be. Harper made a motion to approve Ordinance 2 in the amount of $613,702.62. Huddleston seconded the motion. Motion carried without opposition.
New Business:
Resolution of Support: Council considered approval of a Resolution of Support for a Federal Housing Tax Credit Application on behalf of Heritage Townhomes of Augusta and authorize the Mayor to execute a letter of support. Griffith stated he received a call from a citizen about this and wanted to know if this would be subsidized housing. Jack Manske stated it is in a sense. Manske stated the owners of the property will receive an income tax credit and in exchange there will be rent restrictions. Griffith asked if there will be a limited number of occupants per unit. Manske stated city zoning codes would regulate the number of occupants. Manske stated the housing would be targeted to the elderly, so it would typically only be one or two residents per unit. Manske stated it would be very rare to have a family of three in a unit. Manske stated they have indicated they will set aside 100% of the units for persons 55 years of age and up, which means at least one of the full time residents per unit must be 55 or older. Chrislip stated that children could live there. Manske stated it is possible, but would be very unusual. Huddleston stated it could be a grandparent caring for a grandchild. Manske agreed and stated the fair housing act allows for that.
Huddleston asked Manske to explain the AMI restrictions. Manske stated five of the units must be rented to persons at 40% Area Medium Income (AMI) and the other 19 units are set aside for those at 60% AMI. Huddleston asked what the difference is between the 5 units at 40% AMI and the 19 units at 60% AMI. Manske stated the units are identical; the only difference is the rent amount. Childers said Manske’s letter states the tax credits will enable them to maintain a level of affordability and asked how long they anticipate they will be able to maintain a level of affordability. Manske stated there is a 30 year restrictive use commitment and in order to raise the rent, they would have to show the State a significant reason for the increase. Manske stated if there were a tax issue, such as a bond issue, that would be a significant reason for increase but would still require State approval before the rent could be increased.
Chrislip asked if each unit will have a garage. Manske stated each will have an attached garage. Chrislip stated there are only two exits from the unit, including the garage exit. Griffith asked if there are any plans to sell the housing to another entity. Manske stated they have to maintain ownership for 15 years. At that point they could sell the property to another entity, but the new owner would have to maintain the same commitments to the State for another 15 years.
Huddleston asked how the water, trash, and sewer will be spread out to each unit. Keefer stated it hasn’t really been discussed yet, but he would imagine there would be one water bill for the entire project and it would be up to Heritage Townhomes to recover their expense from each of the units. Keefer stated the sewer charges would be included on the water bill and based on the overall water usage. Keefer stated typically the development owner is also responsible for the refuse charges for the units. Keefer stated each unit would be billed individually for their electric usage. Keefer stated this is how Brookside Cottage’s utility billings are handled.
Griffith asked if they would employ local people to maintain the property. Manske stated Sharp Homes will be the general contractor for this project, and the ownership group will hire a property manager in this area. Manske stated the property manager will be responsible for hiring the maintenance employee which typically is a local person.
Griffith inquired about the exact location of the project. Williams stated it is just north of the South Central Mental Health property. Denise Rockers stated it is directly behind Augusta White Eagle Credit Union. Williams stated the project would require a zoning change. Keefer agreed and stated there will be a lot of questions and answers to work out. Griffith asked how this project will affect the city. Keefer stated it will be included on the tax rolls. Williams stated if people move into the city and into these homes it would increase the tax base. Keefer again stated there are a lot of things that will have to be addressed. Griffith asked how big of an area will this project cover. Keefer stated it will be approximately 300 feet by 300 feet. Griffith inquired about the access to the project. Keefer stated there will be access from Brookside Avenue. Griffith asked if there would be access from the north side. Keefer stated there would not be according to the site plan, but there will need to be more discussion about a second entrance to the project. Keefer stated this project will require re-zoning, so there will be a public hearing on this matter. The public will have an opportunity to voice their questions and concerns. Griffith asked if the city should be concerned about occupancy. Keefer stated Heritage Townhomes will be more concerned about occupancy than we will be. Keefer stated they will be doing a housing analysis. Manske stated occupancy is a big concern to them. Manske stated the occupancy for this project is based on a 2% capture rate.
Manske stated this is just the first hurdle for the project and that they do not want to waste the city and city staff’s time on this project unless they know the tax credits will be approved by the State. Manske stated that it is premature to address many of the issues specifically.
Huddleston asked if this will be on the tax rolls. Keefer stated that he has not been told that they will not. Huddleston inquired about the estimated cost of the project. Manske stated it will be in excess of two million dollars.
Rawlings asked if there will be storm shelters. Manske stated there will be a safe room in the laundry room of each unit.
Huddleston made a motion to approve Resolution 2009-04 supporting a Federal Housing Tax Credit Application on behalf of Heritage Townhomes of Augusta. Harper seconded the motion. Motion carried without opposition. Huddleston made a motion authorizing the Mayor to execute a letter of support. Chrislip seconded the motion. Motion carried without opposition.
Bids: Chrislip asked if the City has worked with Duling Construction before. Goedecke stated he has worked with them several times, and that they worked on the water and sewer lines to the High School and the line to Ewalt. Chrislip asked if they are trustworthy. Goedecke stated they are. Chrislip stated they left a lot of money on the table. Goedecke stated contractors are looking for work, so they are bidding lower. Chrislip asked if the price of asphalt has dropped. Goedecke stated he heard that it hasn’t, but we will be bidding some street work in the near future so we will find out. Goedecke stated the price of concrete has actually increased.
Chrislip made a motion to approve the bid from Duling Construction Company, Inc. in the amount of $9,515.90 for sewer improvements within Stone Lake Estates Third Phase. Huddleston seconded the motion. Motion carried without opposition.
Rawlings made a motion to approve the bid from Duling Construction Company, Inc. in the amount of $8,641.00 for water improvements within Stone Lake Estates Third Phase. Huddleston seconded the motion. Motion carried without opposition.
Chrislip made a motion to approve the bid from Duling Construction Company, Inc. in the amount of $26,217.80 for sewer improvements within Belmont Place Third Addition. Huddleston seconded the motion. Motion carried without opposition.
Chrislip made a motion to approve the bid from Duling Construction Company, Inc. in the amount of $23,021.50 for water improvements within Belmont Place Third Addition. Harper seconded the motion. Motion carried without opposition.
Appointments: Harper made a motion to approve the Mayor’s Appointments of Cecil Gross and Cy Ricker to the Butler County Solid Waste Planning Committee. Huddleston seconded the motion. Motion carried without opposition.
Revolving Loan: Huddleston made a motion to approve the request from Pro Coaters for interest only payments for six months for their Economic Development Revolving Loan. Harper seconded the motion. Motion carried without opposition.
Revolving Loan Program: Harper made a motion to approve amendments to the City’s Revolving Loan Program Policy. Rawlings seconded the motion. Huddleston stated that everyone has talked in the past about improving and adding retail sales in the downtown. Huddleston stated these amendments increase the loan amounts for manufacturing and industrial businesses, but leaves the loan amounts for retail businesses at the same level they were at. Huddleston stated it limits the amount that can be loaned to retail businesses. Allen stated the revised policy does put those limits in place for retail businesses. Huddleston asked why they are being asked to increase the limit to $25,000 per job for manufacturing and industrial, but not for retail. Allen stated the city’s experience of giving loans to retail businesses has not been good. Huddleston stated it is their fault for giving those loans. Allen stated the original intent of the revolving loan program was to provide funding sources for manufacturing and industrial business.
Huddleston stated the policy is somewhat tied into the loan application process. Huddleston stated someone applying for a $5,000 loan has to provide an extensive amount of information, the same that someone applying for $25,000 would have to provide.
Williams stated the restriction in the policy only applies to the city’s revolving loan program and not to API’s loan program or E-Community’s loan program or other funding sources. Huddleston stated the application has a lot of stuff in it and should be shorter for those only applying for small amounts. Williams stated we need to first look at the policy and then consider the new application separately.
Huddleston asked if the city has had bad experiences with manufacturing and industrial businesses. Allen stated that there have been some. Allen stated that manufacturing and industrial businesses do more for job creation and that has a trickle down effect on sales tax revenues. Huddleston stated it is up to the board how much of a loan to grant, so why limit the amount for certain businesses by policy. Chrislip stated the program was set up to create jobs and manufacturing and industrial businesses create more jobs than retail businesses.
Huddleston asked where the current $10,000 and $5,000 limits came from. Allen stated the $10,000 limit for manufacturing and industrial businesses has been there since the beginning of the program and the $5,000 limit for retail businesses was added a few years ago when retail businesses were added to the program.
Motion carried with Huddleston opposing.
Council considered approval of a new application form for the City’s Revolving Loan Program Policy. Williams stated the intent is to simplify the application process. Williams stated a business would previously have had to fill out three separate applications to apply for funding from the various organizations. Griffith stated an applicant may not be required to provide all of the information on the application depending on what funding organization they are applying to. Huddleston asked where the application states that someone applying for only $5,000 does not have to fill out certain information. Williams stated that item #15 on the application is only required for applications for $10,000 or more. Williams stated this application is shorter and cleaner than the previous applications and that she doesn’t think it asks the applicant to provide too much information. Williams stated Network Kansas asked the boards to include a business plan in the application. Allen stated if a prospective business has done their research, they should have all of this information prior to applying for funding. Keefer stated if an applicant were applying for a loan from a bank or someone else, they would have to provide this same information. Keefer stated it is important for the city to show due diligence to protect the funds of the community. Childers stated the more complete information you have, the better decision you can make as a lender. Williams stated that the organizations want to loan money, but they want the applicants to be prepared and to have a business plan. Williams stated an interview is also required as part of the application process and any questions on the application that could not be answered could be addressed during the interview. Williams stated the city, API, and E-Community want to partner to help the businesses.
Keefer stated the new policy also allows for the interest rate to be adjusted on a loan by loan basis. Keefer stated the revolving loan program is supposed to be a loan of last resort, for when a business is unable to find funding somewhere else.
Rawlings stated that page numbers should be included on the application. Allen stated that could be done. Huddleston asked if any disclosures are required about the release of the information on the application. Keefer stated some of the information provided on an application for the revolving loan program will be provided to the council and therefore will become an open record because they will be receiving public funding. Williams stated if the application is for API or E-Community and not for the city’s revolving loan program, the information would remain confidential and would only be reviewed by the boards of those organizations. Allen stated that the matrix does state that applications to the city’s revolving loan program will be presented in a public hearing.
Childers made a motion to approve a new application form, including page numbers, for the City’s Revolving Loan Program Policy. Harper seconded the motion. Motion carried with Huddleston opposing.
Engineering Agreement: Rawlings made a motion to approve an Engineering Agreement with Aqua Tech Engineering for engineering services including design and construction inspection for the Frontier Raw Water Line Project in the amount of $101,880. Huddleston seconded the motion. Motion carried without opposition.
Williams Petroleum: Chrislip made a motion to approve Attachment A and Attachment B to the Professional Services Agreement (Mowing) with Williams Petroleum Service. Childers seconded the motion. Motion carried without opposition.
Informational Memorandum & Questions:
Huddleston – Huddleston asked what progress is being made to turn over ownership of the railroad property to the city, rather than the trail manager role. Keefer stated he will follow up with the County and David Alfaro on that.
Childers – Childers stated in years past there was a curbside spring clean-up service. Keefer stated there was curbside service years ago, but that it was not time effective and cost efficient. Keefer stated it took up to 12 weeks to complete in some years and the city was no longer able to devote the large amount of staff and equipment that was needed for that extended period of time. Childers asked if it could be considered cost efficient to do every couple of years. Keefer stated staff would recommend staying away from that process, as the current spring clean-up program helps cut costs for the city. Huddleston stated there probably wouldn’t be as much to haul off it there was curbside pickup because of the number of items that are picked up from the curb by other residents. Keefer stated that was part of the problem in the past. Keefer stated that it became a monumental effort that was far beyond our means.
Childers inquired about the ramifications of the failure to receive relief on the deadlines for the levee certifications. Keefer stated the certification process ensures that flood insurance maps will show the levee as providing protection. Keefer stated our two year deadline is up in July and at that point, it starts the process of FEMA coming back and re-mapping the area as if the levees do not exist. The consequence of that is that property owners that were not previously required to have flood insurance would then have the added expense of flood insurance. Keefer stated the reason we are asking for relief on the deadline is that both of the projects for the Whitewater and Walnut River levees are connected. Childers asked if Keefer was considering visiting Washington D.C. with the County. Keefer stated that is Allen’s last week at the city and he really needs to be here at that time. Keefer stated we may have to make a point to go up there ourselves as a city.
Griffith asked if we anticipated the relocation of the pipelines. Keefer stated we did not know that we would have to do that. Keefer stated that we will have to certify that the pipelines are good and if we are unable to do that we will have to relocate them. Keefer stated there are approximately 15 pipelines under the levee, but all are not active lines and some are city utility lines. Keefer stated it is currently being researched to find out if the city is responsible for the cost of relocating the lines, or if the owners of the lines are responsible for the cost. Keefer stated that every time he turns around, this is the type of thing that comes out of left field that we should have been made aware of prior to this point. Keefer stated the city manager of Arkansas City said it took them 30 plus years to complete their levee projects.
Final Comments:
Chrislip – Chrislip inquired about the sand on north Ohio. Keefer stated the street sweeper had been up there, but if there were specific locations that need to be addressed to please let him know.
Williams – Williams stated there is a blood drive at the First Baptist Church this Friday from 12 p.m. to 6 p.m. Williams stated the Museum of Military History has sent her a letter to sign requesting a black hawk helicopter to fly over during this year’s Flag Day celebration on June 13th. Williams thanked staff for including the vision statement on the agenda and that she sees staff is looking at expanding the compost operations. Keefer stated the hours of operations will be expanded and that information will be provided at a later date. Williams stated there will be a women’s health fair at LakePoint on February 20th.
Williams asked Keefer to explain the new information on the Depot Application. Keefer stated with the stimulus package there are some funding opportunities available. Keefer state KDOT has received notice they will have money available to them for transportation projects. Keefer stated that he has discussed this with KDOT and they think the Depot would be a prime candidate for some of that funding as it would be a project that could quickly be put out to bid, and those are the types of projects they are looking for. Keefer stated the Chamber and API are updating the application for transportation funds for the Depot and that we have funds set aside in our budget for the city’s portion of the project. Keefer stated each district in the state will also get a portion of funds that will be split out to the cities. Keefer stated we are going to look at repair work to the concrete on 7th Street as well as striping, and a major overlay of Walnut Street. Keefer stated that because both of those are federal highways, there is a good chance that they could receive funding. Keefer stated that we also submitted information for funding the spillway and dam, because that project too could be put out to bid in 60 to 90 days.
Huddleston – Huddleston asked what the plan is moving forward on the Streetscape plan since the east side of the road going south is almost completed. Goedecke stated the plan is to work in the 300 block and on the roundabout because some of that brick will be used for the brick replacement work at the Depot. Goedecke stated they will then start on the west side of State at 7th Street and move southward. Huddleston inquired about the side streets. Goedecke stated they had not specifically addressed that, but he would assume it would be completed as they move south like they did on the east side of the road.
Huddleston inquired about the status of the codification and the website. Jones stated she spoke to the League of Kansas Municipalities and they have not started on our code book, but it is on the list and they anticipate it to be completed within the next 60 days. Jones stated she is moving along on getting the content loaded on the website, but is still working on obtaining photos. Jones stated she would like to have staff’s work on the site completed by the end of the first week of March.
Harper – Harper stated Brett Kappelman asked her if there is anyway to include a curb cut in front of Cooper’s Drug. Harper stated a majority of their customers are elderly and Kappelman is concerned about the height of the curb. Keefer state he would direct Goedecke or his staff to stop by and visit with Kappelman about his concerns. Harper stated there is a hole in the road and cones located in the 200 block of Clark that have been there for a number of weeks. Keefer stated he would look into that.
Griffith – Griffith asked if staff obtained information about the owners of the red donation boxes around town. Keefer stated he included that information in the last informational memorandum, but that the owners of those are out of Andover. Keefer stated the purpose of them is to collect materials to be sold as a fundraiser for an organization called Child Start. Keefer stated a portion of the profits from the sale of those items is given to Child Start. Griffith asked if this is an ongoing thing. Keefer stated he doesn’t know, and since they are located on private property the city has no control over them. Griffith stated those types of items could be taken to the Augusta Caring Center instead. Keefer agreed.
Executive Session: At 9:00 p.m. Huddleston made a motion to enter into executive session to discuss acquisition of real estate pertaining to the levee enhancement project for 15 minutes. Harper seconded the motion. Motion carried without opposition.
At 9:14 p.m. Huddleston made a motion to exit executive session with no action being taken. Rawlings seconded the motion. Motion carried without opposition.
Adjourn: At 9:15 p.m. Huddleston made a motion to adjourn. Chrislip seconded the motion. Motion carried without opposition.
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