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March 26

CITY OF HIAWATHA

CITY COMMISSION MINUTES

MONDAY, MARCH 26, 2007 at 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, March 26, 2007, at 5:35 p.m. at City Hall with Mayor Gernon, Commissioner Collins, Commissioner Shamburg, Commissioner Schmitt, and Commissioner Gamble present.

2.      Approval of Minutes of the March 19, 2007 City Commission meeting.

Commissioner Gamble made a motion, seconded by Commissioner Shamburg, to approve the minutes of the March 19, 2007, City Commission meeting as presented. Motion carried. 3 ayes. 2 abstained. Commissioner Schmitt and Mayor Gernon abstained.

3.      CONSENT AGENDA

a.       Appropriation Ordinance #1117 in the amount of $28,755.47

b.       Approval of Utility Refunds in the amount of $75.79.

c.       Approval of payment to Waser Plumbing & Heating for labor and materials on the Miami Street sewer main extension project in the amount of $16,462.00 less 10% retainage for unfinished seeding for a total payment of $14,815.80.

d.       Approval of disbursement to the Morrill Public Library for their portion of the Brown Country Treasurer Tax Distribution in the amount of $2568.89 less the amount advanced to the Library in December 2006 of $1644.72 for a total disbursement of $924.17.

e.       Approval of payment to BG Consultants for February Post Lantern Streetlight Construction Observation in the amount of $2892.50.

f.        Approval of payment to BG Consultants for February Downtown Streetscape Construction Administration in the amount of $2599.66.

g.       Approval of a renewal for a License to Operate a Drinking Establishment for Rosey’s Cantina.

Commissioner Schmitt made a motion, seconded by Commissioner Gamble, to approve the Consent Agenda as presented. Motion carried. 5 ayes.

4.      Presentation of petitions, public comments, memorials.

a.  Dean Tollefson Comments on Chapter VIII of the Municipal Code.

Dean Tollefson approached the Commission and made a five-minute presentation on some concerns he had in adopting Chapter VIII of the Municipal Code. He said that he felt that this was probably the most important subject that had gone through Hiawatha in the last seven and one-half years. Tollefson said that the two new articles that had been added to Chapter VIII were intrusive and dangerous to the health and welfare of Hiawatha citizens. He said that Article 2A is repetitive of Article 2 and not needed to solve the problem. He felt that Article 5 was a full frontal assault upon private property ownership.

Tollefson described the City of Hiawatha as a “tale of two cities.” He called the one a “Reign of Terror” called “CodeREXUS” for the period of November 2001 to June 24, 2002, in the form of a 46-page “monster” [Property Maintenance Code], said that during that period of time, no houses were being built inside the City of Hiawatha. Two of the people who built outside the City said they did so to avoid harassment. There were 87 houses for sale in Hiawatha during that time with no market value. He told of some incidents in which individuals were so afraid of losing their homes because they couldn’t afford to meet the City standards that it affected their health and well-being.

The second period of time was after the Property Maintenance Code was repealed, from June 25, 2002 to the present time. Tollefson called this period “BOOMTOWN.” He said that there are many new houses being built in town. Real estate sales are very active.

Tollefson said that there were thirty houses on the condemned list when the Property Maintenance Code was repealed, and today all of them have been repaired and are still standing.

His concern was that if Chapter VIII is passed to include Articles 2A and 5, the City of Hiawatha would plunge back into the “CodeREXUS” period. He asked that the Commission seriously read Chapter VIII, and consider taking out Articles 2A and 5.

b.       Update from Hiawatha Foundation for Economic Development.

Mayor Gernon introduced Marian Tubach and Jon Daeschner, and asked them how the businesses they have negotiated with feel about property in Hiawatha. Daeschner said that they recently visited with a manufacturer who expressed an interest in locating in the City of Hiawatha. This manufacturer had noted that they were concerned with where their employees live. Daeschner felt that they were very concerned with property issues within the City of Hiawatha.

Mr. Daeschner applauded the City Commission for what they have done for the City to make it grow. He said that in 2005, the people of Hiawatha voted for a sales tax increase to support economic development, which let them know that the citizens of Hiawatha were behind them in their quest for economic growth.

Marion Tubach presented a slide show and said that some of the accomplishments of Hiawatha Foundation for Economic Development since 2005 were:

      • Recruitment of Crosswind Industries/bought property/built a building
      • Sewer and water to Nigus Industrial Park
      • Supported new Wal-Mart Supercenter
      • Purchased former Wal-Mart building for Hemisphere GPS expansion
      • Encouraged Bio-energy Plant
      • Assisted Koch & Co. to purchase the old Flairfold building. Mr. Daeschner pointed out  that 150 people attended their job fair.
      • Crosswind Industries opened in September 2005 and now employees 40 people plus some extras. They hope to expand and build another building.
      • Wal-Mart Super center opened in 2006 and now has 100 plus jobs and draws customers from Nebraska, Missouri, and neighboring counties as well as Hiawatha. This has really boosted sales tax revenues.
      • Hemisphere GPS expects to start with 25 new jobs and have spent $2.5 million in renovation on that building and will employ higher wage people.
      • Koch & Company purchased the old Flairfold building and expects to offer 20 to 40 jobs.
      • The Bio-energy Plant will have 40 plus jobs plus construction workers. HFED had researched the ethanol and bio-diesel and encouraged Brown County to fund a bio-diesel feasibility study and provided matching funds for the study.

Hiawatha also has existing industry: Wilde Tool Co., Schuetz Tool & Die, RHS, Inc., and Ag Partners Cooperative.

New businesses which Tubach referred to as “bonus businesses” include: Red Hawk Car Wash, Air-N-Arc Mfg., Rainbow Telecommunications, Main Street Flower Shoppe, Alltel/Meyer Electric, The Farm, Inc., The Pines, and Lighthouse Guesthouse.

Tubach said that there was a general improvement in the business economy. She said that there had been some enhancements to some existing businesses. Stallbaumer Lumber had purchased Hiawatha Farm & Home and now stock more lumber.

She said there had been an explosion of new and improved housing. There are eight new homes which have been built or are being built since 2005, with several others being planned. Over 102 building permits have been issued to improve existing residential properties. There are 46 new homes which have been built in Brown County since 2005. Those residents are also doing business in Hiawatha.

Tubach said that downtown Hiawatha has never looked better in our lifetimes. She said that downtown Hiawatha is on the State and National Register for Historic Places. She noted that the historic streetlights all over town are being renovated. She also noted that the City was encouraging pride in homes and neighborhoods by fixing up the curbs and alleyways. She also reminded everyone that Hiawatha celebrates 150 years this year.

Tubach listed as HFED’s challenges for 2007 and beyond: Sale of properties in the Longfellow addition to take care of taxes and special assessments on those properties, housing for new employees to allow for additional employers, adequate child care availabilities, adequate motels and hotels, and more restaurants.

Opportunities for 2007 and beyond include the 18,000 square foot former RHS building which is for lease, and the 20,000 square foot former grocery store for sale, the Longfellow Commercial Park, Nigus Industrial Park, and the several vacant stores and commercial lots in front of Wal-Mart.

Tubach said that since 2005, HFED has been instrumental in the process of adding over 250 new jobs to Hiawatha over a 5-year period.

She said that this new growth was kicked off by the passage of the one-quarter percent sales tax for economic development, and thanked the citizens for having enough confidence in Hiawatha’s future to vote “yes” to grow Hiawatha. Tubach said that this was not the end, but the beginning of renewed prosperity for Hiawatha.

Mayor Gernon thanked them for all their hard work.

 Old Business

5.      Consider Accepting Changes to Chapter VIII of the Municipal Code as Recommended by the Citizen Committee.

Administrator Ladner told the Commission that the Citizen committee that had been appointed by the Commission had completed its review of Chapter VIII of the proposed municipal code. They had made their changes and these changes were reviewed by Scott Hildebrand from the League of Municipalities. When these changes have been approved, the League of Municipalities will then combine the revised Chapter VIII with the changes made to the Municipal Code during the work session in January and have it ready to present to the Commission for adoption on April 16. She said she would like to hold a public open house after the Commission meeting on April 2, 2007, to allow residents to review the new code and ask questions.

She said that this revised chapter covers the existing Board of Health, what health nuisances are, Article 2A is an environmental code which basically explains what is or is not an unlawful act including exterior conditions of property. Article 3 concerns junked motor vehicles on property. Article 4 concerns weeds. Article 5 concerns the minimum housing code. She said that the members of the committee had worked very hard on Article 5, including establishing a grandfather clause for houses built before 1948 to be exempt from the standards unless the home owner was to make changes in excess of $5000 in material costs. Article 6 concerns rodent control, in which the definition of rodents does not include mice. She said that the Assistant City Attorney, Kevin Hill, had said that it was unlikely that a property with mouse infestations would not meet one of the other criteria for nuisance control. Article 7 concerns the insurance proceeds fund which is covered in the existing municipal code.

There were least four members of the committee at the meeting to answer any questions.

Mayor Gernon asked Malcolm if he was comfortable with the changes. He replied that he was. He did not feel that it was as prohibitive as what some people may think. He said that it was basically a minimum housing standard.

Rance Hixson, committee member, said that the committee had met every week from the middle of December through February, and that there was a lot of discussion and concern. He said that no properties were singled out. He said that in general, different situations in town were brought out and that special consideration was given as to what type of hardships would be created.

Mayor Gernon said that this code [in Chapter VIII] had been adopted by the City of Holton, and had been recommended by the League of Municipalities. He said that it had been discussed and reviewed by the committee and by the City Attorney, and that it was his opinion that it was the duty of the City to make sure that the town meets certain standards. He said that one could drive through other towns in Kansas and see what happens when no one is responsible for keeping the town picked up. These towns have little to offer in terms of economic development.

Mayor Gernon said that he had noticed a typo in the copy of Chapter VIII, on page 13, which showed items A, B, D and E instead of A, B, C and D.

Commissioner Gamble pointed out another typo on page 21, subsection F, “when ever” should be “whenever” (one word instead of two), and another typo on page 23, subsection Q, which should be “said” or make two sentences.

Commissioner Schmitt made a motion, seconded by Commissioner Collins, to accept the recommended changes to Chapter VIII of the Municipal Code and authorize its conclusion in the revisions of the code that is being prepared for adoption. Motion carried. 5 ayes.

Commissioner Schmitt thanked the committee for all their hard work.

Commissioner Gamble said they had all put in a lot of hours working on this Municipal Code and thanked everyone who was involved.

New Business

6.      Consider Adopting an Ordinance Approving the Employee Cost of Living Increases and Setting Wages for City Employees for 2007.

Administrator Ladner explained that having made the decision on the amount of the cost of living wage increases for City employees, this information has been detailed out in this ordinance to set the wages for City employees in 2007. This ordinance, upon adoption, would become Ordinance 976.

Commissioner Gamble made a motion, seconded by Commissioner Schmitt, to adopt Ordinance 976 setting the cost of living wage increases for Hiawatha City employees for 2007. Motion carried. 4 ayes. 1 nay. Commissioner Collins voted nay.

7.      Consider Adopting 2007 Personnel Policies and Guidelines for the City of Hiawatha, Kansas.

Administrator Ladner explained that over the past several months, the City has made an effort to become compliant with IRS regulations and update other policies. They have made changes to sections of the Personnel Policies and Guidelines. She said that it had been three years since a revised version of the manual has been fully updated, and that since we were moving forward, this was a good time to update the entire document.

She said that the changes include the cell phone policy in the telecommunications policy, outlining causes and steps in the discipline policy, updating the uniforms policy, and adding the Police Sergeant job description.

Commissioner Collins asked for an update on these policy changes.

Administrator Ladner said that all of the policies had been approved by the Commission over the past several months. She said that the cell phone policy allowed for a stipend to be paid to the department heads for use of their personal cell phone instead of providing city cell phones. The discipline policy outlines behavior which would call for discipline and what the disciplinary steps would be. The uniform policy allowed for a stipend of $450 per year to be paid to the employees who were required to wear uniforms instead of using city-purchased uniforms.

Commissioner Schmitt made a motion, seconded by Commissioner Gamble, to adopt the 2007 Personnel Policies and Guidelines for the City of Hiawatha. Motion carried, 5 ayes.

8.      Open Bids for Real Estate Sale at 6:00 p.m.

Administrator Ladner presented the two bids received on the properties being offered for sale. She said that this was only the official bid opening, and that after the bids had been opened and the amounts of the bids established, they would then look into it in relation to the contract with the City Attorney. She said that the City had the right to accept or reject any and all bids.

Mayor Gernon opened the bids at  6:15 p.m.

There was one bid on each property. The bid on the 2.18 acres of property located on First Street between The Pines and the Zion Lutheran Church was for only $1. The bid on the 909 Shawnee property was for $350.

Administrator Ladner said they would review the bids for the contract requirements with the City Attorney and bring it back before the Commission next week.

9.      Lynne Ladner, City Administrator.

Administrator Ladner told the Commission that the City of Hiawatha had been contacted by the State. Hiawatha is a Kansas Hometown Governor’s City. The State said that the City can put up a sign on each of the four highway entrances to the City with former Governor Morrill’s name on it. The cost of the signs is $1500 each. The State would require payment for the signs plus 50% of the cost of the sign for the maintenance. They could be paid for with public or private funds.

The Commission wanted to think about this before making a decision.

Mayor Gernon asked her to check to see if the State would allow a sign donated by someone or if it had to be a State-issued sign.

She also said she had a letter from the Sac and Fox Nation concerning the fire equipment that they have for sale. She asked for permission to pursue an inter-local agreement with them. Without an agreement, she thought that we can bill them for any fire calls. She said that an inter-local agreement would be a better idea. She would like to contact them to negotiate a trade of equipment for services.

Mayor Gernon suggested that she look into the situation.

She told the Commission that she would be leaving at noon Tuesday to go the KRWA conference and would be available by cell phone and e-mail.

10.  Mayor Gernon.

11.  Com. William Collins.

12.  Com. Curtis Gamble.

13.  Com. Marianne Schmitt.

14.  Com. Steffen Shamburg.

15.  Adjourn.

Commissioner Shamburg made a motion, seconded by Commissioner Gamble, to adjourn. Motion carried. 5 ayes. Meeting adjourned at 6:25 p.m.