March 20
CITY OF HIAWATHA
CITY COMMISSION MINUTES
MONDAY, MARCH 20, 2006
5:35 P.M.
HIAWATHA CITY HALL
723 OREGON ST.
The Hiawatha City Commission met in regular session March 20, 2006 at 5:35 p.m. at City Hall with Mayor Trant, Commissioner Collins, Commissioner Shamburg, and Commissioner Gamble in attendance. Commissioner Schmitt was absent.
1. Pledge of Allegiance/ Call to Order
2. Approval of minutes of the March 13, 2006 city commission meeting.
Commissioner Gamble made a motion, seconded by Commissioner Shamburg, to approve the minutes of the March 13, 2006 city commission meeting.
3. Presentation of petitions, public comments, memorials
Old Business
4. Consider contract obligations with AHRS Construction on the Wastewater Treatment facility.
City Administrator Carl Slaugh discussed the contract for phase one of the Waste Water Treatment Facility (WWTF) which started March 23, 2004, which had a projected substantial completion date of October 3, 2005. He reviewed what the city could impose per the contract in terms of liquidated damages, specifically from the date of substantial completion to what was called for in the contract to actual substantial completion. They went 58 days over in phase one and 66 days over in phase two. Normally those damages are not imposed unless there is specific monetary loss to the city. The biggest factor is probably the additional engineering expenses. Bartlett & West has estimated the additional cost for the resident observation on phase one at $3,133.52 and $13,217.29 on phase two, for a total amount of $16, 350.81.
City Administrator Carl Slaugh pointed out that cities generally are reluctant to impose liquidated damages unless they are for actual cost overruns because it does discredit the contractor when they have otherwise done good work. It is mainly a time issue. He felt that A.H.R.S. has done an excellent job. There have been very few change orders. The biggest item on the change order was an item requested by the city, to use recycled water on the sludge press, a credit to both the engineer and the contractor.
The city does have the option of paying the additional costs on the project if they feel the contractor made efforts above and beyond those expected or required by the contract that ultimately benefit the city. City Administrator Slaugh did propose that the engineer pay the costs. However the engineer felt they should not be held responsible because the building was designed appropriately. The contractor feels like the city got a very good project.
A letter from A.H.R.S. dated November 21, 2005, listed some mitigating factors in the delay of completion. The first factor was finding an aggregate for the concrete mix suitable to meet contract specifications. The second factor was the inaccurate estimate of the length of time by Aero-Mod required to install supplied equipment, 1188 total hours versus actual time of 2,000 hours.
City Administrator Carl Slaugh said that between the engineer, the contractor and the city, we have the additional costs.
He also indicated that there are payments to Bartlett & West which are on the consent agenda for March 20, 2006, that fall into the additional expense category. One of the items was a $9,000 expense for the operations and maintenance manual for phase 1. City Administrator Carl Slaugh said that he had contacted Rural Development to see if this should fall outside of the expenses that were authorized to Bartlett & West, but had not yet received a reply from them. There is also a $3,000 expense that is for the operations and maintenance manual for phase 2, although it was not coded as that. We need to get clarification from Rural Development on whether these two items would be authorized as additional expenses.
Mayor Trant reminded the commission that Mr. Stallbaumer and Mr. Brenden of Bartlett & West Engineers were supposed to discuss the $16,350.81 charge, and wondered if we had received any feedback on this.
City Administrator Carl Slaugh indicated that he had not.
Commissioner Collins felt that the city does not owe the $16,350.81, that A.H.R.S. should absorb the cost.
Commissioner Gamble agreed that the city should not have to pay the bill because of A.H.R.S. shortcomings. If the engineer designed the project, and they state that the aggregate is not uncommon for a project of that size, they should have been in contact with the construction company so they would know where they could get it. The 812 hours over the estimate for Aero-Mod installation should be between Aero-Mod and the engineer. He felt that the cost should be paid by the engineer and/or A.H.R.S.
Mayor Trant agreed and asked how it could be accomplished if we choose to impose the liquidated damages on A.H.R.S.
City Administrator Carl Slaugh indicated that we could withhold the amount from the final payment of the retainage of $50,000.
Commissioner Gamble made a motion, seconded by Commissioner Collins, to assess A.H.R.S. Construction liquidated damages on phase 1 and phase 2 of the waste water treatment facility in the total amount of $16,350.81. Motion carried, 4 ayes.
5. Consider options for financing a new building for the Fire Department.
Mayor Trant said that no one has provided figures on this yet.
Interim City Administrator Tom Armour offered figures from the Fireman’s Relief Fund which he indicated were three to four years old. He estimated they have approximately $160,000 available, which falls short of demolition and building costs. Other options to consider are loans and grants.
Mayor Trant asked City Administrator Slaugh if we had contacted our financial advisor about this kind of an arrangement, and brought out that we have a lot of other things going on this year and might not be able to afford it.
City Administrator Carl Slaugh said that he had not, and that at some point we should consult with bond council to make sure it is done appropriately.
Mayor Trant said that he thought there are, by statute, limitations on the way cities can finance public improvements.
City Administrator Slaugh told commissioners that the U.S. Department of Rural Development has stated that they will loan money for a fire station at 4%.
Interim City Administrator Tom Armour said that an alternative funding source could be a loan from the Firefighters Relief Fund. That program has an interest rate cap of 6% or as low as zero per cent. The decision would be up to the local firefighters if they wanted to loan money and at what rate.
Commissioner Collins and Commissioner Gamble agreed that we need more research.
Mayor Trant wondered about a time frame for repayment.
City Administrator Slaugh said that it was negotiable, depending on the amount we would be able to pay per year. The fire department has left unexpended about 20% of their budget for several years. They could possibly use that amount to pay off a loan.
Mayor Trant interjected that the fire department also looking into a new fire truck, which would deplete those unexpended funds.
City Administrator Slaugh stated that we need to figure out how important this project is versus other projects.
No further action was taken on this item.
New Business
6. Consider adoption of a neighborhood revitalization plan for the City of Hiawatha.
Mayor Trant said that in looking at the packet that this first page of the information form needs a revision.
City Administrator Slaugh agreed and said that it is the authorization for a publication of notice for public hearing for April 10, 2006 that needs approved this evening.
He said that the City of Hiawatha adopted a Neighborhood Revitalization plan in 1997 for a period of three years. Provisions for the plan became law in the State of Kansas July 1, 1994. The revitalization plan was renewed in 2000 for five years and expired December 31, 2005.
City Administrator Slaugh also said that Brown County adopted a new plan March 6 for another five years effective retroactive to January 1, 2006 and each city in the county has the option of adopting the plan. Brown County is proposing some changes to the basic plan; however the city may still schedule a public hearing to gather comment prior to formal adoption. A new category of structures, historic buildings, was added in the Kansas Statutes to those eligible for abatements under the program.
The previous plan included the entire city of Hiawatha except for two areas, Sherwood Subdivision and Indian Hills subdivision.
City Administrator Slaugh had checked with the Brown County Appraiser’s office, who indicated that since 2000 the applications under the Neighborhood Revitalization plan were $826,900; that is 16 commercial applications and 29 residential applications. The appraiser’s office did not provide the information on the amount of the reduced property tax to the city.
Tom Brown, County Appraiser, will compile information on the impact of the plan on property tax revenues and overall utilization by property owners in the past 5 years.
Mayor Trant discussed the abatements and the limit on improvements that must be met before the abatements can be considered. The minimum investment is $15,000.
City Administrator Slaugh referred to page ten of the Neighborhood Revitalization Plan, which shows that the percentage of property tax increment rebatable is 75% for five years.
Mayor Trant referred to page five of the Neighborhood Revitalization Plan which indicates that the minimum improvement amount for an existing structure is $15,000 in the county appraiser’s appraised value.
Commissioner Gamble made a motion, seconded by Commissioner Shamburg, to approve the publication of the public notice to set a public hearing for April 10, 2006 to consider adopting a neighborhood revitalization plan for the City of Hiawatha. Motion carried, 4 ayes.
City Administrator Slaugh said that it could be published March 24 and again March 31, 2006.
Mayor Trant pointed out that this is an expense to the city due to revenue not collected for the city, provided improvements are made within the city. He would like to have City Administrator Slaugh and Interim Administrator Tom Armour follow up with the appraiser to find out how much that has been for the past four to five years.
7. Recognize additional city employees who have passed significant milestones in length of service.
Mayor Trant apologized for not recognizing them last week, and said that the city could not function without their efforts.
William Lowe has been with the city for 15 years, working for the street department. He is the primary operator of the street sweeper.
Robert Hodge has been with the city for 13 years, working for the street department and concrete crew.
Harlan Bauer has been with the city for 17 years, working for the water department. He is now the pump station attendant. He also handles the maintenance, and record keeping. He has also done a lot of work with the concrete department.
8. Consider appointments to the Hiawatha Housing Board.
City Administrator Slaugh said that the Hiawatha Housing Authority Board exists to ensure fair housing in Hiawatha in multi-unit dwellings. It was formed April 6, 1970. The board members to be re-appointed are Nancy Prawl and Eric Madsen.
Commissioner Collins made a motion, seconded by Commissioner Shamburg, to approve the reappointment of Erik Madsen and Nancy Prawl to the Hiawatha Housing Authority Board with terms expiring in March 2010. Motion carried, 4 ayes.
9. Consider authorizing a pickup purchase for the Police Department.
City Administrator Slaugh said that it has been four years since any of the police vehicles have been replaced. Unit #5 needs repairs to the air conditioning unit which will cost around $1100 to repair. We recently spent $1200 to repair vehicle #5, plus $254 for new tires. This is getting to be a high risk vehicle for officer safety, reliability, and cost of repairs.
Stan Boos Auto offered to sell a 2006 Ford 4x4 with an extended cab to the city for the government fleet price of $22,895. Prices were also checked on a Crown Vic and a Dodge car. The prices of the cars are slightly higher than the pickup and do not have as good a resale value as the pickup. The pickup would be much more versatile to meet the department’s needs. For example, animal pickup would be much better in a cage in the back of a pick up instead of using the trunk or backseat of a car. Also, since maintenance is going up every year, it would be prudent to replace unit #5 at this time.
Police Chief Evans Woehlecke said that they haven’t used #5 for six to eight months. They only have four units that can be used at this time. Since another car will go to academy next week, that leaves only three. He now has seven fulltime officers. He indicated he would like to retire Unit #5.
Commissioner Gamble wondered if they even need another vehicle since they haven’t been using unit #5 for that long.
Police Chief Woehlecke said that until recently they have been short staffed, but now they have a full staff.
City Administrator Slaugh suggested that if it would make them have too many vehicles, then sell two and get the pickup. The purchase of a new police vehicle is not in the budget, but they will have less overtime this year. Even so, the budget would be tight.
Commissioner Collins said they should fix the air conditioner on unit #5 and keep it, and not buy a new vehicle.
Commissioner Gamble felt like we should get at least three bids on repairing unit #5.
Police Chief Woehlecke said that about $14,000 had been spent on repairs over the last two years on the entire fleet, including unit #5.
Commissioner Shamburg also suggested replacing two vehicles with one if that would work. He said that all vehicles are getting some miles on them and that we need something with lower mileage. He felt that further down the line, all the vehicles will have high mileage and would all need replaced at the same time.
Police Chief Woehlecke said that a four wheel drive vehicle has a better resale value, also that we could use another four wheel drive vehicle for inclement weather.
City Administrator Slaugh said that the $21,000 budgeted in 2004 had rolled into the general fund reserve. It was not encumbered for a vehicle.
Mayor Trant reiterated that all funds not expended are rolled into reserve and spent elsewhere. He said that he can’t justify five cars for seven officers.
Commissioner Collins felt that we should look at it in another year and suggested that we put something in next year’s budget. He felt that we could get along with what we have for now.
10. CONSENT AGENDA
a. Appropriation Ordinance #1086 in the amount of $115,034.21.
b. Payroll appropriation in the amount of $35,210.38
c. Utility Billing Deposit Refunds in the amount of $426.13.
City Administrator Slaugh suggested that we hold the check to Bartlett & West pending an answer from Rural Development to see if the charges for the Operation and Maintenance Manuals are allowable.
Mayor Trant indicated that the corrected appropriation ordinance 1086 would be in the amount of $103,034.21.
Commissioner Gamble made a motion, seconded by Commissioner Shamburg, to approve the consent agenda as amended. Motion carried, 4 ayes.
Mayor Trant said that since all of the invoices to Bartlett & West are included on the one check, it will be necessary to void the entire $82,949.90 check.
City Administrator Slaugh said that we will have to check with Summit to see if we can make a smaller check without putting the check on an appropriation.
11. City Administrator Slaugh – comments on service to the City of Hiawatha
We have tree board meeting on the 30th of March at 4:00 p.m. at City Hall.
The Planning commission has scheduled their next meeting on April 20th, at 6:00 p.m. They are planning an Earth Day special event on Friday the 21st, and will plant some trees at the city lake.
City Administrator Slaugh commented that it was his last week here and that he had enjoyed working with the commissioners, the city and the personnel. He thanked the commissioners for the opportunity to work here.
He said that 24 applications had been received so far for the city administrator position. Closing date is Friday, March 24. There will be a 45 minute executive session next week with Mark Tomb to review applications.
12. Mayor Leon Trant
Mayor Trant said that we are still having difficulty with the reconciliation of our books. He thinks it is something our software is doing to our books, and said to be sure they discuss that with Summit people when they come next week.
City Administrator Slaugh said that the auditor will be here for the 2005 audit the 26th to the 28th of April.
Mayor Trant would like to cancel the work session on the draft Municipal Code for this Tuesday due to another engagement. Interviews for the new city administrator will be conducted the 5th, 6th and 7th of April. He reminded the commissioners about the grand opening at Wal-Mart at 7:30 a.m. March 22. He feels they should all go.
City Administrator Slaugh said that the engineer had requested a letter from the city stating our acceptance of the improvements at Wal-Mart. We need to give them a letter stating that we accept the streets, curbs, water main extensions, storm water and sanitary extensions, as well as the building, that they are acceptable to the city.
Mayor Trant said that he appreciates the work they have put into the area. He understands that the roads they put in are private roads.
Commissioner Shamburg made a motion, seconded by Commissioner Collins, to authorize the mayor to sign a letter accepting the building, the street improvements and all the water and sewer extensions. Motion carried, 4 ayes.
13. William Collins
14. Com. Curtis Gamble - nothing
15. Com. Marianne Schmitt
16. Com. Steffen Shamburg
Commissioner Shamburg made a motion, seconded by Commissioner Gamble to adjourn. Motion carried, 4 ayes.