October 2
CITY OF HIAWATHA
CITY COMMISSION MINUTES
MONDAY, OCTOBER 2, 2006
5:35 P.M.
HIAWATHA CITY HALL
723 OREGON ST.
1. Pledge of Allegiance/ Call to Order
The Hiawatha City Commission met in regular session at 5:35 p.m. on Monday, October 2, 2006 at City Hall with Mayor Gernon, Commissioner Shamburg, Commissioner Collins, Commissioner Schmitt and Commissioner Gamble present.
2. Approval of minutes of the September 25, 2006 City Commission meeting.
Commissioner Gamble made a motion, seconded by Commissioner Shamburg, to approve the minutes of the September 25, 2006 City Commission meeting as presented. Motion carried, 5 ayes.
3. Presentation of petitions, public comments, memorials.
Old Business
4. Public Hearing to Consider Issuance of Federally Taxable Private Activity Revenue Bonds for Koch & Co.
Mayor Gernon opened the Public Hearing and asked if there were any public comments.
Janet Garms, Kutac & Rock, Bond Council Attorneys, asked if there were any questions concerning the cost analysis which the Commission had received in their packet.
Commissioner Schmitt asked how the “other revenues” calculation was calculated on page five of the Cost Analysis report, and what all was included in those figures. The total shows about $390,000 for the City and about $59,000 for the County.
Jeff Conner, Koch & Co. said that the Department of Commerce had put together the cost analysis from figures input by Koch & Co. regarding salaries, number of employees, etc. He said that the estimates did not include new residents moving into the community for these jobs, that Koch & Co. assumed that the business would be hiring people who already resided in Hiawatha.
Commissioner Schmitt asked if that revenue included a PILOT payment in it.
Ms. Garms said that it did not include a PILOT payment because there was a request for 100% abatement.
Mr. Conner said that the data used was included with the Cost Analysis report in their packets.
Commissioner Schmitt said that since the information was given to them so late, they had not had enough time to review it before the meeting. Therefore it was difficult to make a decision at this point.
Ms. Garms said that if the Commission was uncomfortable with the hearing it could be held over until the next meeting. She explained that the Ordinance could wait until next week to be approved.
Mayor Gernon closed the public hearing.
5. Consider Approval of an Ordinance Authorizing the Issuance of Federally Taxable Private Activity Revenue Bonds for Koch & Co.
Commissioner Collins made a motion to approve the Ordinance, but withdrew the motion after City Administrator Lynne Ladner pointed out that approving the ordinance would authorize all of the other documents that they had just received on Friday including the Trust Indenture, the Lease Agreement, the PILOT Agreement, and the Guarantee Agreement.
Ms. Garms said that they did not have to approve the ordinance tonight. She said that the Lease Agreement would need to be revised in respect to the City’s request on the employment issue.
Mayor Gernon indicated that he had discussed it with City Administrator Ladner and with Kevin Hill, Asst. City Attorney. Mr. Hill had not had time to read the documents. Mayor Gernon said that in all fairness to the City, he thought that they should wait until next week to give all parties time to read the material.
The approval of the Ordinance and the Resolution was tabled until a later meeting.
6. Consider Approval of an Ordinance Authorizing the Issuance, Sale and Delivery of General Obligation Sales Tax Bonds for the Post Lantern Streetlight Project.
Mayor Gernon introduced Kevin Cowan, Gilmore & Bell, who discussed the bid sale. Copies of the bids were distributed to the Commission.
Mr. Cowan said that we had received four bids today. He said that UMB Bank, Kansas City, Missouri, had the lowest interest rate as well as the lowest discount rate, making a net interest cost of $447,958.13, or 3.924294%.
He pointed out a typo on the bid tabulation sheet for the M & I Bank in the net interest cost figure, which should have been $479,410.62, or 4.19983%. Country Club Bank bid a net interest of $459,648.13 or 4.026703%, and Commerce Bank bid a net interest of $465,131.88, or 4.074743%.
Mr. Cowan advised the Commission to approve the low bid from UMB Bank 3.924294%.
Commissioner Schmitt made a motion, seconded by Commissioner Collins, to accept the low bid of 3.924294% net interest cost from UMB Bank, Kansas City, Missouri, for the $1,400,000 City of Hiawatha General Obligation Sales Tax Bonds for the Streetlight Project. Motion carried, 5 ayes.
Commissioner Collins made a motion, seconded by Commissioner Gamble, to approve Ordinance 971 for the City of Hiawatha Authorizing the Issuance, Sale and Delivery of General Obligation Sales Tax Bonds Series B 2006 for $1,400,000 for the Post Lantern Streetlight Project. Motion carried, 5 ayes.
Commissioner Schmitt asked if Ordinance 971 had been reviewed by the City Attorney.
City Administrator Lynne Ladner said that she assumed that it had, that the City Attorney had not indicated otherwise.
7. Consider Approval of a Resolution Prescribing the Form and Details of and Authorizing and Directing the Sale and Delivery of General Obligation Sales Tax Bonds for the Post Lantern Streetlight Project.
Commissioner Schmitt asked if this document had also been reviewed.
City Administrator Lynne Ladner said that she assumed that it had, that the City Attorney had not indicated otherwise.
Commissioner Collins asked for more clarification that the City Attorney had reviewed the ordinance and resolution.
Both Mayor Gernon and City Administrator Ladner explained that the City Attorney generally defers the approval back to the bond council for the City. In this case, Kevin Cowan is acting as Bond Council for the City.
Commissioner Shamburg made a motion, seconded by Commissioner Collins, to adopt Resolution No. 2006-10, a Resolution Prescribing the Form and Details of and Authorizing and Directing the Sale and Delivery of General Obligation Sales Tax Bonds in the amount of $1,400,000 for the Post Lantern Streetlight Project, Series B 2006. Motion carried, 5 ayes.
City Administrator Lynne Ladner said that the final documents on the bid specs are being put together this week. She plans to have each of the Commissioners come in Thursday or Friday to look at all the documents and to approve them next Monday.
New Business
8. Consider Approval of Payment to BG Consultants for July Service on the Post Lantern Street Light Project.
City Administrator Ladner explained that the once the bidding process had been done the project inspections would need to be contracted for, as the contract with BG Consultants would be expiring.
She explained that the project was a two step process. The construction documents would go out with a thirty day window. The fixture bidding would go out at the same time, with a only a two week window since the fixture selection has already been narrowed down.
Commissioner Schmitt made a motion, seconded by Commissioner Shamburg, to approve the payment to BG Consultants for July Service on the Post Lantern Streetlight Project in the amount of $3,713.00. Motion carried, 5 ayes.
9. Consider Approval of Payment to BG Consultants for August Administration of the Downtown Streetscape Construction Project.
Commissioner Schmitt made a motion, seconded by Commissioner Gamble, to approve the payment to BG Consultants for August administration of the Downtown Streetscape Construction Project in the amount of $10,206.15. Motion carried, 5 ayes.
10. CONSENT AGENDA
a. Payroll Appropriation #1067 in the amount of $35,130.87.
b. Approval of Utility Refunds in the amount of $151.86.
c. Approval of a Cereal Malt Beverage License for Walmart.
Commissioner Collins made a motion, seconded by Commissioner Gamble, to approve the Consent Agenda as presented. Motion carried, 5 ayes.
11. Lynne Ladner, City Administrator.
City Administrator Lynne Ladner told the Commission that the City had received a letter from the Kansas State Historical Society informing the City that the Hiawatha downtown area has been designated as a Historical area. This will allow business to have State and Federal tax credits on work done on their buildings.
She also said that the City had received a telephone call from the Kansas Department of Commerce. They will be coming to Hiawatha on October 16 for a site visit on the housing grant which the City recently submitted. This is a very positive step, and means that the City has made it through first round of the grant application process. She would like to invite Joni Hernly to come to Hiawatha for the site visit so that she would be available to answer any questions that they might have.
Mayor Gernon agreed that this would be a good idea.
12. Mayor Gernon.
Mayor Gernon mentioned that there are still some funds available for the engineering on the Streetscape Project from Hiawatha Redevelopment. He said that we should check with Ted Starr to see what is left.
Mayor Gernon reminded the Commission that there will be a work session next week on the Municipal Code. Some discussion followed as to which copies actually had the correct revisions.
13. Com. William Collins.
14. Com. Curtis Gamble.
15. Com. Marianne Schmitt.
Commissioner Schmitt asked where the City was at on the franchise agreement from Embarq.
City Administrator Lynne Ladner said that revisions were made by City Attorney Don Cashman and had been sent to Embarq. The contract had yet not been sent back from Embarq. We are still operating on the agreement that expired in August.
16. Com. Steffen Shamburg.
17. Adjourn.
Commissioner Shamburg made a motion, seconded by Commissioner Gamble, to adjourn. Motion carried, 5 ayes. Meeting adjourned at 6:21 p.m.