March 13
CITY OF HIAWATHA
CITY COMMISSION MINUTES
MONDAY, MARCH 13, 2006
5:35 P.M.
HIAWATHA CITY HALL
723 OREGON ST.
The Hiawatha City Commission met in regular session March 13, 2006 at 5:35 p.m. at City Hall with Mayor Trant, Commissioner Gamble, Commissioner Schmitt, Commissioner Shamburg, and Commissioner Collins in attendance.
1. Pledge of Allegiance/ Call to Order
Mayor Trant introduced the interim city administrator, Tom Armour.
2. Approval of minutes of the March 6, 2006 city commission meeting.
Commissioner Gamble made a motion, seconded by Commissioner Schmitt, to approve the minutes of the March 6, 2006 meeting. Motion carried, 3 ayes. Commissioner Shamburg and Commissioner Collins abstained.
3. Presentation of petitions, public comments, memorials - None
Old Business - None
New Business -
4. Open a public hearing for the purpose of evaluating the performance of the Community Development Block Grant for Phase 2 of the Waste Water Treatment facility and to consider closeout of the grant.
Garrett Nordstrom, Governmental Assistance Services, brought us up to date on the project. They are ready to close out the project. He read the public notice about the open hearing and asked for public comments. There were no public comments. He provided a close-out packet to the commission and offered them to the public. He reported the request for last payment, a cash disbursement of $1,746.
Commissioner Schmitt made a motion, seconded by Commissioner Gamble, to approve the closeout of Community Development Block Grant 03-PF-304 for Phase 2 of the Waste Water Treatment facility and authorize the mayor to sign the necessary documents. Motion carried, 5 ayes.
5. Recognize city employees who have passed significant milestones in length of service.
Mayor Trant apologized for letting this slip by for the last couple years. He wants all the employees to understand they do appreciate the work they do for this city. The city has several employees who have reached significant milestones in their employment with the city.
Biff Mauslein has been with the city 10 years. He has worked for the city off and on and has a combined tenure of approximately 23 years. He recently transferred to the street department from the sewer department.
William Lowe has worked 15 years for the street department. (He is on vacation this week.)
Tony Mendez has worked 16 years for the water department. He also has a certification in back-flow and cross-connection prevention.
Donnie Howard has worked for 25 years for the street department. Donnie also gets an award of $250 for his 25 years of service.
Ken Aeschliman has worked for 31 years for the water department as a meter reader.
Rick Koenig has worked for 33 years for the water and street lighting department.
The city has authorized an award of $300 each to Koenig and Aeschliman.
6. Consider pay issues and medical insurance benefits for city employees.
City Administrator Carl Slaugh reported that the medical insurance policy renews April 1. The rates for medical insurance from Blue Cross Blue Shield of Kansas have gone up 15.6% over 2005, or an increase of $32,576 for a 2006 total of $241,858. The 2006 budget included a projected 20% increase for medical or $326,668.
Flexible savings accounts and a health savings account (HSA), would offer a reduction in the monthly premium in exchange for a higher annual deductible. The HSA option requires a high deductible, but provides the advantage of being able to pay into a savings account for medical expenses. The medical savings account may be carried over at the end of the policy year and earn interest. The disadvantage to the employee is that the $3,000 deductible (Option 3) must be paid first out of pocket before insurance begins to pay.
The monthly premium for the next year effective April 1, 2006 for the Blue Choice Comprehensive Major Medical Program will be $330.49 for the employee, an increase of $44.60 over 2005 and will be at no additional cost to the employee. The premium for the employee/child policy will be $638.60, an increase of $85.62 over 2005, and will cost the employee an additional $17.12. The employee/spouse policy will cost $709.64, an increase of $95.85 over 2005, and will cost the employee an additional $19.17. The employee/dependent policy will cost $1,017.74, an increase of $136.86 over 2005, and will cost the employee an additional $27.37.
Commissioner Schmitt made a motion, seconded by Commissioner Shamburg, to approve the major medical insurance with Blue Cross Blue Shield for the year 2006 effective April 1, and authorize the mayor to sign the necessary documents. Motion carried, 5 ayes.
The city did budget a 5% pay increase for the 2006 year. This would provide for a 60 cent per hour increase for all regular employees and part time employees other than summer hires, and a 10% increase for all new hires after one year of service. The increase would help retain quality employees. At the present time we do not have any type of increase for longevity pay. A lot of time and money is invested in the training of these individuals. If they do not stay employed by the city, it costs a lot to train new employees. Some type of longevity pay needs to be considered.
Commissioner Collins mentioned last year’s increase of $1.10, which was given since they had not had an increase for 3 years. Mayor Trant suggested only a 50 cent an hour increase. Commissioner Gamble asked the dollar figure for pay increase. Carl indicated that it would be around $35,000 to $36,000 not including the 10% increase. Commissioner Gamble felt that we could stand the 60 cent increase.
Commissioner Schmitt made a motion, seconded by Commissioner Gamble, to allow a 60 cent per hour raise for all employees, except for summer hires, and a 10 per cent increase for all new hires after one year of service. Motion carried, 5 ayes.
7. Consider a letter indicating support of a proposed ethanol plant in the Northeast Kansas/Southeast Nebraska area.
City Administrator Carl Slaugh reported on a request from the Rural Development Association of Northeast Kansas on a non-binding letter to USDA RD asking for support of the Northeast Kansas-Southeast Nebraska Energy grant application. A sample letter was enclosed which could be used for the reply. There had been limited discussion on the impact of a bio-diesel plant, in terms of water. It would actually be under the auspices of Rural Water District I. The City of Hiawatha does provide the water to Rural Water District I. A meeting was held last week on how the need could be supported. The boundary of the Rural Water District could be changed so that the City of Hiawatha could provide the water directly to the bio-diesel plant. The sewer at that location would probably be too far away to connect into our system.
If we actually end up with an ethanol plant, that would have a significantly higher demand on services. Instead of 50 gallons per minute, they are proposing an estimated 300 to 500 gallons per minute. That would require not only one but possibly two additional wells north of the city to provide that kind of demand on our system. We could provide it right now during nine months of the year but not during the summer months.
Both would add jobs and increase the tax base in the county. There is some impact on Ag Partners, but they have indicated that they would support the plant and would try to invest in it. Overall it would be positive for the community.
Commissioner Collins suggested that Hiawatha sign a letter of intent to let them know we support it.
Commissioner Schmitt made a motion, seconded by Commissioner Shamburg, that we approve a letter indicating support of the proposed ethanol plant in the Northeast Kansas-Southeast Nebraska area and authorize the Mayor to sign. Motion carried, 5 ayes.
Commissioner Collins suggested that all of the commissioners should sign the letter. Carl indicated that he could add lines to the letter for their signatures.
8. Consider approval of certificates for substantial completion for phase 1 and phase 2 of the Waste Water Treatment facility.
City Administrator Carl Slaugh reported that the Certificate of Substantial Completion has significance in terms of operational capability on the plants. They are functioning although they are not completely finished. The substantial completion dates also have important legal significance because of the liquidation damages as discussed last week because that is what the contracts are based on.
Dave Grimm indicated that there were just a few small things that still needed taken care of and that should be wrapped up as soon as a part comes in, hopefully in the next 10 to 14 days.
City Administrator Slaugh indicated that the official final completion dates could be April or May because we have to wait for the biological processes to begin functioning, and it has to be a certain temperature before this can happen. Once the plant can demonstrate that all the pieces of equipment work, they can officially issue the final completion date.
Concerning the liquidation damages, he has requested a response from the engineer on the project which we should be able to get back next week. We don’t have to wait until the final completion dates are decided on to pay them the additional retainage of $20,000 on one and $30,000 on the other. By contract, as soon as they have completed the work we should pay the retainage.
Commissioner Collins expressed concern that there were a lot of items on the punch list. Dave Grimm answered that he had already crossed off quite of few of the items on the list as they had already been completed.
Commissioner Gamble made a motion, seconded by Commissioner Shamburg, to accept the Substantial Completion Dates [Phase 1 November 29, 2005; Phase 2 February 3, 2006] and authorize the Mayor to sign. Motion carried, 5 ayes.
9. Report from Terry Smith, Recreation Department Superintendent, concerning recreation program offerings for 2006 and summer pool rates.
Terry Smith gave a report on the summer programs he has been working on. Baseball & softball are in registration right now. Swim team will start June 1. Red Cross swim lessons will be the same as last year with six levels. No rate increases are anticipated for swim passes or season tickets.
Co-ed softball will be on Sunday nights. Soccer is gearing up, with the first game on March 25. Flag football will be offered at a cost of $25 per child. We are offering youth basketball with three clinics in December after Christmas.
We need to develop the road at Bruning Park, with budgeting needed for rock, etc. Since the break-in in January, bars have been put on windows.
We are looking into a kiddy pool and water splash area, which are capital improvement items. The pool will need to be painted again next year.
As for the Schuneman addition, the punch list of items was completed. He has contacted A.H.R.S Construction concerning a few missed places on the ceiling paint. We need to set a rate to users. The Fisher Center is $40 per hour, or for 6 hours or longer, $200 per day. His suggestion for the Schuneman Addition would be $40 to $50 per hour, or $250 to $300 per day. This rate could be broken down into booth rates for lawn & garden shows, etc. They do have several activities, such as prom and some weddings, lined up.
Commissioner Collins indicated a need to market the Fisher Center and the Schuneman Addition.
Terry Smith said that we need new brochures made up. The current one has not been updated since area codes changed, several years ago. It was also suggested that the Hiawatha Chamber of Commerce be contacted concerning the brochures.
It was discussed that other Community Centers be contacted as to their rates to give an idea of what the current rates should be.
Commissioner Schmitt made a motion, seconded by Commissioner Gamble, to charge $50 an hour on the Schuneman Addition and for six hours or longer, $300. Motion carried, 5 ayes.
10. Consider extending the lease of the copier used at the Law Enforcement Center.
The lease agreement is about to expire. The copier company can put in a new machine, with print, fax, scan, copier functions at the same cost as present, and move the present copier to the Fisher Center. They would include it in the maintenance agreement for a fee of $500, which would be the only additional cost.
Commissioner Collins made a motion, seconded by Commissioner Gamble, to get the new copy machine for the Law Enforcement Center and move the old one to the Fisher Center. Motion carried, 5 ayes.
11. Consider a donation of the old ball field lights formally used at the Noble Ball Park.
These lights were taken down when the park was moved and placed in storage at the airport. The old lamps aren’t used because of labor time involved to replace the lamps. Horton is looking for lights, their school district would love to have them. City Administrator Carl Slaugh proposed we donate them to Horton.
Discussion followed concerning using the lights at some other Hiawatha facility. It was pointed out that the expense involved makes it prohibitive to re-install the lights. The city had advertised the lights for sale but no buyers were found.
Commissioner Schmitt made a motion, seconded by Commissioner Shamburg to donate the lights to Horton. Motion carried, 4 ayes, 1 nay. Commissioner Gamble voted nay.
12. Consider renewal of a Sprint telecommunications franchise.
City Administrator Carl Slaugh explained that this is the fiber optic cable which passes through the community without direct links to our telephone system. This is just a renewal for one that we have had for three years. We technically do not require a franchise agreement, but since the rules keep changing, we should keep the franchise agreement. The only thing that would change is the dates, it is a no fee franchise.
Mayor Trant pointed out that it gives us recourse if they do some damage to the streets during their maintenance operation.
Commissioner Gamble made a motion, seconded by Commissioner Shamburg, to renew the franchise agreement with Sprint Communications Company L.P., for a period of three years, and adopt Ordinance 958. Motion carried, 5 ayes.
13. CONSENT AGENDA
a. Appropriation Ordinance #1085 in the amount of $29,241.37.
b. Municipal judge report for February 2006.
Commissioner Schmitt made a motion, seconded by Commissioner Collins, to approve the consent agenda as presented. Motion carried, 5 ayes.
14. City Administrator Slaugh – capital improvement and budget projections for 2007.
There are two meetings this week, the Planning Commission meeting, Tuesday, 6:00 p.m., at City Hall, and Thursday, the 16th, the Tree Board meeting at 4:00 p.m.
He gave a project update on current projects.
The Main Street Project is moving along well, the preliminary plan has been approved by KDOT. That project should be ready to go to bid in April or May, with a completion date by the end of the year. Cost for that project for the city is going to be around $300,000, including 20% of the design costs plus the construction fees. $200,000 would come from the general reserve, and $100,000 from the street department.
Our Schuneman addition should be completed within two weeks.
The Historic Post Lantern Street Lights are still under design. BG Consultants are 50% complete on the survey work. Once these are completed, we should have enough information to talk to bond council about bonding the project. Generally it takes about six weeks to get the bond information. He is hoping that this project will be ready to go to bid this year. If not completed, a big percentage of it should be completed by the end of the year.
As for the Waste Water Treatment facility, as discussed, the issue is on liquidation damages and the final completion dates. He plans on having a recommendation on next week’s agenda.
For the Water Improvement Project, we’re still intending on moving ahead with some well exploration north of the city. Bartlett and West are to put together a proposal that will be brought back to the City Commission for approval.
Greg Dekat is also looking at some proposed bids on the water tower maintenance. As soon as he has reviewed that it will be presented before the commission. We would like to get some type of plan in place for maintenance on one of the water towers. The total cost of one is going to be in the $150,000 to $200,000 range.
He discussed with Greg the need to review water rates. It has been three years since they were increased. He thought that the last water rate study was in 1991. We need to see if our revenues are adequate.
As for the drainage problem at Fourth & Pottawatomie, BG Consultants are waiting for the city to respond on whether to include both ends from Second to Fifth. If we do that it is going to be about a $200,000 project. This project is beyond the scope of our street department to do. He suggested that it be done in two sections so we can do it in two separate years.
For the Fire Station, he has have received the materials from the USDA Rural Development and the Fireman’s Relief Fund. He hopes to have some kind of proposal on next week’s agenda.
For the Crosswind Project, there is the $253,000 that we need to put into a bond issue to pay back the general fund.
As for the Public Works Facility, we need to have plans in the works for building a facility to house both water and street department.
Wal-Mart is set to open March 22nd. Both entry roads are owned by Wal-Mart. They are responsible for the upkeep on them at present. He feels they should leave them under private ownership for present.
Municipal Code - To expedite this, if the commission members were willing to compile inputs to the remaining chapters, and give those back to him by this Friday, he would be able to prepare those for a subsequent work session. Chapter 8 is finished.
We also need to bring for proposal the bond issue for the purchase of the RHS-GPS building. That information needs to be to the bond council by no later than the first of May. We are shooting for a mid June closing date on that property.
The annexation project came to a standstill. We will discuss this Thursday night at the Planning Commission Meeting.
Overall for next year’s budget, he would put together a draft document and project a 2.3% overall increase.
An item that would receive high priority should be a bucket truck. That needs to be replaced next. It would run somewhere between $70,000 and $80,000 for that truck.
15. Mayor Leon Trant
Since the Planning Commission meeting is scheduled for Thursday night. That will supersede the Municipal Code work session. Wal-Mart’s grand opening is at 7:30 a.m. on March 22. The Commissioners are all invited to that.
16. Com. William Collins
17. Com. Curtis Gamble
18. Com. Marianne Schmitt
The recreation director needs ideas for older adults for recreation at the centers.
Commissioner Schmitt stated she would be out of town next Monday night, so wanted to thank City Administrator Carl Slaugh for the work he has done the last four years, and expressed appreciation for the professionalism with which he dealt with the public, the city staff and the contractors. She felt he has been very dependable and that he is leaving city hall a better place than when he came four years ago. She wished him the very best as he moves on to Basehor.
19. Com. Steffen Shamburg
Commissioner Shamburg made a motion, seconded by Commissioner Gamble, to adjourn. Motion carried, 5 ayes. 7:50 p.m.