July 24
CITY OF HIAWATHA
CITY COMMISSION MINUTES
MONDAY, JULY 24, 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 Monday, July 24, 2006 at 5:35 p.m. at City Hall with Mayor Gernon, Commissioner Gamble, Commissioner Schmitt, and Commissioner Collins present. Commissioner Shamburg arrived at 5:44 p.m.
2. Approval of minutes of the July 17, 2006 City Commission meeting.
Mayor Gernon pointed out that on page 1, section 1, the date of the minutes said July 1 instead of July 17. Commissioner Gamble said that there were two other typographical errors on page 1, section 4, paragraph 3, which had some extra wording.
Commissioner Schmitt made a motion, seconded by Commissioner Gamble, to approve the minutes of the July 17, 2006 City Commission Meeting with the corrections. Motion carried, 3 ayes. Mayor Gernon abstained.
3. Presentation of petitions, public comments, memorials.
a. Proclamation – National Night Out 2006
Mayor Gernon read and signed the Proclamation for the National Night Out, 2006.
The commission discussed who would be represented at the National Night Out. City Administrator Lynne Ladner said that she had understood that the police, the fire department, and the EMS services would be there, anyone involved in the safety of the community.
Mayor Gernon asked that City Administrator Ladner check to be sure that this was correct.
Sargeant First Class Herlinger, Battalion Administrator NCO with the Hiawatha National Guard, asked the commission for the use of the swimming pool and the Fisher Center at no charge for a September 10th National Guard activity. He had already had the date approved for both from Terry Smith, Recreation Director. The commissioners agreed to allow the use of both at no charge.
4. Approval of the 2005 Preliminary Audit.
City Administrator Lynne Ladner reported that the 2005 preliminary audit presented by Lowenthal, Singleton, Webb and Wilson Professional Association of Certified Public Accountants needed to be approved and sent to the State of Kansas by August 1, 2006.
Mayor Gernon noted that Jim Scherer, CPA from Hiawatha, had done an excellent job of straightening out the books at the end of 2005.
Commissioner Schmitt made a motion, seconded by Commissioner Collins, to approve the Preliminary Audit for the 2005 year. Motion carried, 4 ayes.
5. Approval of Bond Issuance for Post Lantern Project.
City Administrator Lynne Ladner reminded the commission that this had been discussed two weeks ago, but because there was not a full council present at that meeting, it was decided to put off the decision on the bonds until a full council was present. She told the commission that there were two options for the bond issue. If the commission were to make decision this evening, and would pass a resolution on that, it could publish this week and again next week. The protest period would then expire and the governing body could then authorize the issuance of the bonds on September 2, due to the 30 day protest period. If that is done, and we could sell the bonds quickly, we could close on the bonds as early as the end of September or the first of October.
City Administrator Ladner said that Kevin Cowan, of Gilmore & Bell, suggests we engage a financial advisor to do a feasibility study to determine whether the City should go with the G.O. Bond or the Sales Tax Revenue Bond. She said that it was up to the commission.
Mayor Gernon asked how long it would take and what it would cost.
City Administrator Ladner replied that she did not have those numbers, and that it would take probably a week to ten days to do the feasibility study on the bond issue. The Post Lantern Streetlight Committee cannot put the project out for bids until they know how much money they have to spend.
Rance Hixson, representative of the Post Lantern Streetlight Committee, said that the committee is trying to keep this as economical of a project as possible. He said that he didn’t feel that another feasibility study would be necessary.
City Administrator explained that a financial advisor could indicate which type of bond issue would be in the best interests of the city, and whether a G.O. Bond, even though it is a sales tax revenue bond, would go against the city’s statutory indebtedness, or whether the city would be better served by going with a straight Sales Tax Revenue Bond.
Mayor Gernon said that a feasibility study is only required for a pure bond issue.
Commissioner Gamble said that according to what he had read in the letter, that Cowan was leaning more towards a general obligation bond. He said he didn’t know why we need a feasibility study.
Commissioner Schmitt said that according to the letter from Kevin Cowan that the City does have about $9 million in outstanding general obligation bonds. If that gets too high, the investors may view it as a negative. However most of the outstanding bonds are from other sources than sales tax revenue. She said that she was more inclined to go with the G.O. Sales Tax Bond.
Mayor Gernon brought up that Cowan’s letter indicated that there would be less available funds with the sales tax revenue bond. Also, the feasibility study is necessary only if the City is going to go with the sales tax revenue bond. The City should also think about the difference in funds available for the project.
Mayor Gernon said that he felt that the general obligation bonds were the way to go. He said that we would incur more expense with the feasibility study as well as more time.
Dean Tollefson asked how much sales tax was generated for the street light project in the last year.
Mayor Gernon replied that the last year to date sales tax revenue for the street lights was around $125,000. This reflects a seven to eleven per cent increase with the new Wal-Mart. The bond revenue projections are based on the lower end of that, plus a one per cent historical growth that has been there.
Mayor Gernon said that the commission should take action tonight on either hiring a financial advisor or to decide which type of bond they wanted to go with.
Mayor Gernon said that Cowan stated that the City has about $3 million available before they would pass that statutory limit, and about $9 million outstanding.
Commissioner Gamble said that he didn’t think we should spend additional money on a feasibility study. He thought it would be a waste of time. He thought they should go with the G.O. Bond.
Mayor Gernon concurred.
Commissioner Gamble made a motion, seconded by Commissioner Schmitt, to approve Resolution 2006-06, a resolution declaring it necessary to issue general obligation bonds for the City of Hiawatha, Kansas for the purpose of paying the costs of financing the post lantern improvement program for the City and to provide for the giving of said notice of intention. Motion carried, 5 ayes.
6. Notice to Proceed – Streetscape Project
City Administrator Lynne Ladner said that the City had received a letter from KDOT granting concurrence of the City’s bid selection for the Streetscape project. We have been authorized by the State to award the contract and issue a Notice to Proceed to the contract recipient, Bottorff Construction. She further instructed the commission that they needed a motion to authorize to proceed with the contract issuance, and approval for the Mayor to sign the Notice to Proceed.
Commissioner Collins made a motion, seconded by Commissioner Gamble, to approve the Notice to Proceed and award the contract to Bottorff Construction and approve the Mayor to sign said document. Motion carried, 5 ayes.
7. NEK Bio-energy.
Mayor Gernon turned the discussion over to Commissioner Collins, who explained that the NEK Bio-energy wanted the City to express its support and commitment to the development of mutually beneficial activities for the City of Hiawatha and NEK Bio-energy, with no financial commitments to the City.
Commissioner Collins made a motion, seconded by Commissioner Shamburg, to pass Resolution 2006-07 to support the development of Bio-energy facilities. Motion carried, 4 ayes. Mayor Gernon abstained.
New Business.
8. Approval of Payment for Hiawatha Chamber of Commerce for Annual Subsidy.
City Administrator Lynne Ladner explained that the 2006 Budget allowed for the Hiawatha Chamber of Commerce to receive a subsidy of $6000. It was agreed to pay this quarterly, with a payment of $4500 for the first three quarters to be paid at this time and the remainder of $1500 to be disbursed at the first of October 2006. She noted that at this time we need commission approval before we can make this payment.
Commissioner Collins made a motion, seconded by Commissioner Shamburg, to approve the payment of $4500 to the Hiawatha Chamber of Commerce as outlined. Motion carried, 5 ayes.
9. Approval of Final Payment to BG Consultants for Services on the Post Lantern Street Light Project.
City Attorney Lynne Ladner noted that the billed total to date as $109,630, of which $93,474 had already been paid. She said that the project was now 95% complete.
Commissioner Collins made a motion, seconded by Commissioner Gamble, to approve the final payment of $16,156 to BG Consultants for the Post Lantern Project. Motion carried. 5 ayes.
10. Approval of June Payment to BG Consultants for Downtown Streetscape Construction Administration.
Commissioner Schmitt made a motion, seconded by Commissioner Collins, to approve the payment of $3,785.72 for the June invoice to BG Consultants for the Downtown Streetscape Construction Project. Motion carried, 5 ayes.
Mayor Gernon noted that there were still funds available from the Hiawatha Redevelopment Group and instructed the City Clerk to submit this bill to the group for reimbursement.
11. Approve Installation of a Third Manhole.
City Administrator Ladner explained that Dave Grimm, Wastewater Superintendent, had asked that she present this to the commission. She said that the commission had previously approved the installation of two manholes to aid sewer repairs and maintenance. The contract company will be in town during the week of July 24th to complete the work.
Ladner said that recent events have indicated that it would be beneficial to the City to install a manhole in the alley located in the 600 block of North First Street. The Sewer Department would like permission to add to the existing contract the third manhole needed. The cost to install the manhole would not exceed the previously approved unit cost for manhole installation of $3200.
Commissioner Collins asked why it was needed.
City Administrator Ladner explained that there have been recent sewer backups in that area and it has been difficult for the city to get in and clean out the sewer. The additional manhole would facilitate the city’s ability to get this done. There is money in Fund 54 for the installation in line item number 8142. The company has said that they would be able to go ahead and do the work on the third manhole while they are in town at the same cost as for the other manholes already scheduled.
Commissioner Gamble made a motion, seconded by Commissioner Shamburg, to approve the installation of a third manhole to be located in the alley north of 602 North First Street at a cost not to exceed the previously approved unit cost for the manhole installation of $3200 per unit. Motion carried, 5 ayes.
12. CONSENT AGENDA
a. Payroll Appropriation #1062 in the amount of $49,257.84.
b. Approval of Utility Refunds in the amount of $503.43.
Commissioner Gamble made a motion, seconded by Commissioner Schmitt, to approve the consent agenda as presented. Motion carried, 5 ayes.
13. Lynne Ladner, City Administrator.
City Administrator Lynne Ladner reported that the Benner Memorial Dedication of the benches at Maple Grove Complex was this afternoon, and that there was a good turnout. She said that the benches looked great, were in a nicely shaded area, and should be an asset to the community.
14. Mayor Gernon.
15. Com. William Collins.
16. Com. Curtis Gamble.
17. Com. Marianne Schmitt.
18. Com. Steffen Shamburg.
19. Adjourn
Commissioner Shamburg made a motion, seconded by Commissioner Gamble, to adjourn. Motion carried, 5 ayes. Meeting adjourned at 6:15 p.m.
20. Work Session – 2007 Budget