August 14
CITY OF HIAWATHA
CITY COMMISSION MINUTES
MONDAY, AUGUST 14, 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 on Monday, August 14, 2006 at 5:35 p.m. with Mayor Gernon, Commissioner Collins, Commissioner Shamburg, Commissioner Gamble and Commissioner Schmitt present.
2. Approval of minutes of the August 10, 2006 City Commission meeting.
Commissioner Gamble noted that the word “we” should be “were” in the third paragraph from the bottom on page two, also on page 4 “Kan Step Program” was misspelled in the last paragraph on the page.
Commissioner Schmitt made a motion, seconded by Commissioner Gamble, to approve the minutes of the Hiawatha City Commission meeting of August 10, 2006 as corrected. Motion carried, 4 ayes. Mayor Gernon abstained.
3. Presentation of petitions, public comments, memorials.
Community Development Block Grant Hearing.
City Administrator Lynne Ladner explained that the City had agreed in July to apply for the Community Development Block Grant for the rehabilitation and demolition of housing in a selected area of Hiawatha. She said that we need to designate which area is to be applied for in the grant.
Mayor Gernon opened the public hearing on the Community Development Block Grant and introduced Joni Hernly, Hernly Assoc.
Ms.Hernly told the Commission there were three options for the target area for selection. She said that they had walked around town and made an outside rating on the houses. They rated the houses “A”, “B”, “C”, or “D”, with “A” meaning no major defects in roofing, foundation, siding, “B” meaning one or two defects, “C” meaning two or three defects, and “D” meaning dilapidated and considered for demolition. She said that commercial, industrial, or churches are not considered in the application. She presented a map indicating different colors for the different ratings.
Ms. Hernly said that they had looked at the entire city. They had selected the area west from the railroad tracks as the primary area. The three areas for consideration are (1) the north side of Oregon Street to the north, (2) the south side of Oregon Street to the south, and (3) the entire area west of the railroad tracks.
She explained that they had looked at other areas in town; however, many of those areas included some larger homes. Since the maximum funding per house is $18,000, and larger homes are generally going to require more money to make repairs, the State prefers you look at smaller homes that fit that the criteria.
Ms. Hernly said that there are disadvantages to all three options. The total application is 100 points. Ten of those 100 points are based on project need. For the area north of Oregon, the need figures out to be seven of those ten points. The south area is also about seven out of the ten points, and the entire area is again seven out of the ten points. Project impact is the total number of houses that need worked on compared to the entire area. If 20 out of 43 houses need worked on, the impact is 46% of that area. The impact would be very high there. In the entire area west of the railroad tracts, in which there are 85 to 128 houses, then the impact is low. The project impact accounts for 30 out of the 100 points.
The majority of the points come from the narrative. If the city decided to do the entire area, it would still be possible to still get the grant.
Mayor Gernon asked what point levels would be necessary to get a grant.
Ms. Hernly said that last year there were 33 applications. Of the six that were selected, the total points ranged from 57 to 76 points. She said that is why she felt they could still do the entire area, not get the 20 points for impact, and still have enough points to get the grant.
Larry Hopkins, Hernly Assoc., said that there also needs to be participation. It depends on how many people turn in pre-applications. One of the things the State looks for is how many people actually are interested in improving their houses. That is why in a larger area, where there are a lot more houses, there is more of a chance to get people to apply for the housing grant.
Mayor Gernon asked if they had a recommendation.
Ms. Hernly said that in the area north of Oregon, even though it is a smaller area, the impact would be pretty high.
Mayor Gernon said that they would need at least 15 to 20 pre-applications.
Ms. Hernly said that even if people don’t end up participating, they should turn in a pre-application.
Commissioner Schmitt asked if they have a pretty good percentage of people who fill out applications.
Hopkins said that it varies. He said that if someone in the community actually goes out and tries to find folks who want to apply it helps. Also, he said that if people don’t get the applications turned in, they will go out and knock on doors, asking people if they want to participate, and filling out those applications while they are there. In another project they did, they got back 24 out of 85 homes. In that case the number of “A” rated homes was greater. “A” homes can still fill out an application. They may have interior repairs that need to be made.
Mayor Gernon asked Malcolm Grier, Code Enforcement Officer, if he had any idea of how many might be interested. Grier said he didn’t at this time.
Commissioner Schmitt asked if 30 points are from the need and impact, and the other 70 points are from the narrative.
Ms. Hernly said that actually five points come from the target area design and boundaries, and if it is a good neighborhood area. Fifty of the points are the area, need and impact.
Commissioner Schmitt concluded that half of the points are coming from the narrative.
Hopkins said that some times the narrative rates over the 50 points. Last year there was one application which rated 59 points on the narrative.
Hopkins said that they felt the railroad tracks and Oregon Street made a good barrier for the selection of the target area. He said that the State looked for a natural barrier. He said that they had looked at other areas of town but there were too many larger homes which would need more than $18,000 to fix up. They felt that the State would reject those applications.
Mayor Gernon opened the floor for public comments.
Dean Tollefson felt that this was very commendable and that it needed to be pursued. He wondered if it impacted neighborhood revitalization and if these homes would then be eligible for tax rebates.
Mr. Hopkins said that they did not have anything to do with each other. They are two completely separate programs. There are no tax rebates on this program. If the $18,000 allowed for the home repairs is insufficient, they could help arrange for low interest loans to complete a project. These have to be separate things. Also, there will be 15 to 20 separate projects going on simultaneously.
There being no further comments from the public, Mayor Gernon officially closed the hearing.
Mayor Gernon said that he thought losing 14 points from the application would be a lot, by going with the entire west of the railroad track area. He said that if he understood the Hernly Assoc. recommendation it would be to go with target area one, north of Oregon Street. He thought that would make the most sense to him.
Commissioner Collins asked if they had any idea how much of a chance to we have of getting the grant if we put the whole area together.
Mr. Hopkins did not know, but felt we would be getting into a target area that was too big. He said that the impact area was important; that is, how many homes in the area actually look better because of the grant. He said that the State is actually looking for visual impact in the area. So, when looking at an area that covers ten to twelve square blocks, 20 houses may not make much of an impact. If you have a house in every block that has had work on it, then that is something that you can start to see. That would create more impact. The State has to report to HUD in Washington, and this would make a better report. That is why he thinks that the smaller area would make a better presentation. Hopkins also suggested that if they get this grant to do one side, then they could re-apply in a couple years for a grant to do the other side.
Commissioner Gamble asked how they take in consideration work to be done in the inside, if they only look at the outside.
Mr. Hopkins said that they also look at the added life expectancy to the homes. They want to see visible impact if possible, but also structural stability, siding, etc. Every project has to be approved.
Commissioner Schmitt was in favor of area one, as was Commissioner Gamble, who thought they would probably receive a lot more applications if they can fix things on the inside, too.
Mayor Gernon and Commissioner Collins also agreed.
Commissioner Gamble made a motion, seconded by Commissioner Shamburg, to select area one as the target area for the Housing Rehabilitation Community Block Grant. Motion carried, 5 ayes.
2007 Budget Hearing.
Mayor Gernon opened the Budget Hearing for the 2007 Budget. He asked that everyone respect each other’s opinions. He asked that everyone keep their comments to about two minutes so that every one had a chance to speak. Gernon said taxes are not going down, but they area not going up either. He said that the two major items with the 2007 budget is that the budget increased by 10%, yet the mill levy is staying essentially where it is. This is due to the expanding tax base and the increased sale revenues. He said that Wal-Mart plays a part in this, also the increase in economic development efforts. Downtown merchants have said that they have been getting busier, also the real estate market is accelerating.
There are a few major items, the Fire Department budget is up 36%, the water towers need to be maintained which is budgeted at a little over $100,000, and the Economic Development efforts are continuing with the bond that was passed earlier. Also, Mayor Gernon wanted them to know that the water fund has been operating with a deficit the last few years. It is projected to be in the red again this year. To make up this deficit for this year’s budget, the Commission voted to use some of the funds from the Sewer Department excess to balance the deficit in the Water Department Fund. Also the Commission will address the issue with a water rate study. Since the water is used by people outside the city also, it was his intension that the costs of maintaining this infrastructure should not be borne by the city residents alone.
He said that all should agree on these three statements. First of all, expenses go up every year. Labor, insurance, fuel, utilities, all increase. If the city does nothing different from year to year, it will still cost more to operate the city from year to year. That is why it is important that the City continue to grow and expand our tax base. While no one likes taxes, we might as well accept them. Everyone here has the best interests of the City of Hiawatha at heart.
Mayor Gernon opened the public hearing on the 2007 budget.
City Administrator Lynne Ladner said that the proposed mill rate for the year 2007 is 48.534 mills. In comparison, the 2006 rate was 48.139 mills. There is a 10% increase in expenditures, but with minimal increase in taxes. There is a significant increase in the cost of many items, motor fuel, oil, other materials costs, etc. that we do not have control over. We still need to make sure that the city can still operate on a regular basis, so we have to budget for these expenditures so that the city budget does not shut down city government. She asked if anyone had any questions.
Mayor Gernon said that department heads are here tonight to answer any questions about their department’s budget requests.
City Administrator Ladner asked that anyone having questions or comments to please step to the podium.
Dean Tollefson congratulated the City on the economic development that has been accomplished in Hiawatha in the last three years. He said that in comparing last year to this year, the property tax increase this year is $75,000, a 9% increase from last year. From two years ago, there was $191,000 increase, which was a 28% increase for two years. Also one of the elements of economic development is that you need to make sure that the homes and the businesses in town can sustain the tax base.
Tollefson recommended a 3% reduction in the budget.
There being no other comments, Mayor Gernon closed the public comment portion of the 2007 Budget Hearing.
Commissioner Collins said that the budget has increased this year because we had issues we need to address. He said that he realizes that taxes will go up because of the increased valuation of property. He said that he agrees with the increase.
Commissioner Collins made a motion, seconded by Commissioner Shamburg, to approve the 2007 Budget. Motion carried, 5 ayes.
Old Business
4. Approval of Downtown Streetscape Construction Schedule.
City Administrator Lynne Ladner said that the commission had originally approved an 80-day construction schedule for the Downtown Streetscape Project. With the project beginning construction on August 14, 2006, this schedule would have the project completing December 1st without weather or other delays.
In an attempt to reduce the impact to the community through disruption of community events such as the Halloween parade and the beginning of the Holiday shopping season, we asked the contractor to see what could be done about compressing the schedule.
The revised schedule that we would like to proceed with begins August 14 and will process not one side of the one block at a time but would enlarge the work zone to encompass the entire north side of the project area at one time. Then when that is significantly completed would move to the south side of the project area. This would allow for a completion date of October 27. The contractor has agreed that any delays would impact the South 7th Street block rather than Oregon Street.
Administrator Ladner said that they had discussed the schedule with business owners at a public meeting held on Thursday, August 10. They agreed on the revised schedule and said that they just want to get it done.
Commissioner Schmitt made a motion, seconded by Commissioner Collins, to approve the revised [Downtown Streetscape] construction schedule and work zones to provide for a completion date of October 17, 2006. Motion carried, 5 ayes.
New Business
5. Select Grant Administrator for CDBG Housing Grant.
City Administrator Ladner explained that we failed to receive the State required minimum of three bids for risk inspector. Marian Tubach, Economic Development Director, has personally agreed to contact some other risk inspectors, and will bring their bids before the commission on August 28th for selection.
She explained that the City is required to solicit bids and select a grant administrator prior to submitting the grant. She said that we had received three bids from grant administrators and can select one tonight, even if we can’t select the risk inspector.
Administrator Ladner said that the bids were as follows:
Governmental Assistance Services: $57.50 per hour rate, not to exceed $25,600, with extensions billed at the hourly rate.
Hernly Associates: Not to exceed $28,500, no hourly rate given.
Rural Development Association of Northeast Kansas: $40 per hour plus mileage @ $.44 per mile, not to exceed $31,500.
Administrator Ladner recommended that the City award the bid for grant administrator if we receive the CDBG Grant to Governmental Assistance Services based on the “not to exceed” amount.
Commissioner Schmitt made a motion, seconded by Commissioner Collins, to award the contract to Governmental Assistance Services for grant administration on the Community Development Block Grant Housing Redevelopment Grant if awarded in 2006 for the amount not to exceed $25,600. Motion carried, 5 ayes.
6. Consider Approval of Necessary Repairs to Two Fire Trucks.
City Administrator Ladner explained that during the annual vehicle inspection at the Fire Department, two of the fire trucks failed the inspection. The first, E-3, needs repair to the pressure relief valve. The second, Engine #4, requires repairs to the water relief valve and the aerial discharge valves.
If during the course of use, either of these trucks experienced difficulty resulting from the failed valves, it could raise a liability issue for the City. We have received quotes from the company that completed the inspection, which routinely completes the repair of these vehicles.
The cost estimate from Emergency Apparatus Maintenance Company to repair Engine #4 is $1,702.05; the cost estimate to repair E-3 is $1,688.70. The total cost is $3,390.75.
Administrator Ladner reported that the Fire Department budget does not have the funds for these repairs. Therefore, the City would need to transfer funds from another source by the end of the year, but that it was not something we can wait on.
Commissioner Gamble asked if this is the only company that does this.
Fire Chief Gary Shear said that they [Emergency Apparatus Maintenance Company] would do it in house, while other companies would require taking the trucks to Kansas City. He said that they had had good luck with that company in the past.
Fire Chief Shear said that annual inspections need to be done yearly. Pump tests generally run $250 to $400. This company charged only $225.
Mayor Gernon wondered if it was a good idea for the same company doing the testing to do the repairs.
Shear said they had never had a problem, but they could get someone else to come out if necessary.
Commissioner Collins asked if it was a Federal or State mandate to have the tests done on an annual basis.
Shear said that ISO [International Standards Organization] requires it. He explained that the reason he wanted to have it done every year was to relieve the liability of the City.
Commissioner Collins asked if the testing had been done every year but had never had a problem?
Shear said no, except for a minor problem last year. The volume pressure pump had a problem last year but they have since eliminated those pumps.
Commissioner Collins asked why they didn’t take bids on the repairs.
Shear said a lot of companies did not work on the aerial part. This company has always been very reasonable.
Commissioner Schmitt asked if surrounding towns get this same company.
Shear replied that they do, Horton, and Fairview do.
Commissioner Schmitt asked if they get the testing done about the same time every year.
Shear said it has varied, that last year they didn’t get it done until December. It was really too cold at that time, so they wanted to get it done during warmer weather this year.
Mayor Gernon asked if he [Emergency Apparatus Maintenance Co.] warranties his work.
Shear replied that they warranty the work for one year. The trucks are stamped as approved. The paperwork is filled out to turn in to ISO.
Commissioner Collins and Mayor Gernon thought we should check with other companies.
Shear mentioned that the company in Minnesota had told them they could get to the repair work the second week of September, and a company in Kansas City had a four month waiting period.
City Administrator Lynne Ladner said that is the problem with bidding it out, it runs into time delays.
Commissioner Collins said they need to research other companies.
Shear said the other companies are busier selling new trucks, and don’t really want to send repairmen out.
Commissioner Gamble said just need to get bids on parts and labor.
Commissioner Schmitt said that if they were not on a real time deadline, she would agree to bid out the work.
The approval of the fire truck maintenance was tabled until more bids were obtained.
7. Mo-Kan Regional Council Membership.
City Administrator Ladner explained that the City had been approached by the Mo-Kan Regional Council of Governments about membership for the upcoming year. The Commission has voted in the past not to participate in this organization. Membership dues for the City of Hiawatha would be $1,196.
Commissioner Gamble said that he didn’t feel like we need to join Mo-Kan Regional Council.
Mayor Gernon asked if Marian Tubach , Economic Development Director, had ever used Mo-Kan.
City Administrator Ladner said she didn’t believe so.
The commission agreed that they were not interested in joining at this time.
8. Consider approval of Payment to Gary Shear for Hiawatha Fire Department Runs.
City Administrator Ladner apologized and said that she didn’t realize that normally this was presented as a regular consent agenda item.
Both Commissioner Collins and Commissioner Schmitt said that they would like to see this in the packet from now on, at least in the information portion of the packet. They are interested in knowing where the fire runs were.
Commissioner Schmitt made a motion, seconded by Commissioner Gamble, to approve the payment for the July fire runs for 157 persons at $10 per fire fighter, for a total of $1,570. Motion approved, 5 ayes.
9. Consider approval of Payment to BG Consultants for April Post Lantern Street Light Project Service.
City Administrator Ladner explained that we were notified by BG Consultants last week that the April invoice had not yet been paid. Upon investigation it was decided that the City had not received the invoice. She recommended that the Commission approve the invoice for payment at this time.
Commissioner Schmitt made a motion, seconded by Commissioner Collins, to approve the payment in the amount of $8,078 for the services for the month of April for the Post Lantern Street Light Project. Motion carried, 5 ayes.
10. CONSENT AGENDA
a. Appropriation Ordinance #1099 in the amount of $42,297.82.
b. Utility Refunds in the Amount of $629.97.
Commissioner Collins made a motion, seconded by Commissioner Schmitt, to approve the consent agenda as presented. Motion carried, 5 ayes.
11. Lynne Ladner, City Administrator.
City Administrator Ladner said that the Streetscape Project started this morning.
12. Mayor Gernon.
Mayor Gernon asked if anything else had been done concerning the fountain at the Police Department. Malcolm Grier, Code Enforcement Office, said he will have quotes Tuesday morning.
He also said that we still need to update the City’s drug policy.
Administrator Ladner said that she is in the process of doing that. She has talked to Janet Blue, of Blue Labs, who is in working on developing the policy now for the DOT and non-DOT testing policy.
Mayor Gernon also said that we also need to tackle municipal code.
Administrator Ladner said that once the fall budget is approved, we will begin having work sessions to do final updates and preparing the Municipal Code for reclassification.
13. Com. William Collins.
14. Com. Curtis Gamble.
15. Com. Marianne Schmitt.
Commissioner Schmitt said that she would like to revisit the membership with the National League of Cities to see if we are getting our money’s worth with them. She would like to take a look at that and bring the information back at a future meeting.
16. Com. Steffen Shamburg.
17. Adjourn.
Commissioner Shamburg made a motion, seconded by Commissioner Gamble, to adjourn. Motion carried, 5 ayes. Meeting adjourned at 6:50 p.m.