MONDAY
AUGUST 23, 2010
PRATT CITY COMMISSION – RECESSED COMMISSION MEETING
COMMISSION ROOM – 12:30 P.M.
1. CALL TO ORDER (Remind audience that meeting is being recorded and/or taped.)
2. ROLL CALL
3. BUSINESS:
3.1 Public Hearing on the Upgrade of the Wastewater Treatment Plant –
• Open Public Hearing by Motion – Mayor and Commission
• Discussion on Wastewater Treatment Plant – Don Hellar, EBH Engineering
• Close Public Hearing by Motion – Mayor and Commission
3.2 Consideration and Approval Authorizing the City Manager to Sign the ‘Applicant Assurance of Public Participation’ for the Kansas Water Pollution Control Revolving Loan Fund Projects – Don Hellar, EBH Engineering; Mayor and Commission
3.3 Consideration and Approval of Resolution 082310 Authorizing the Filing of the Application with KDHE for a Loan to Improve the Wastewater Treatment Plant – Don Hellar, EBH Engineering (RESOLUTION 082310)
4. ADJOURN
Monday, August 23, 2010
08/02/2010-Approved Commission meeting minutes
MONDAY
AUGUST 02, 2010
The Governing Body of the City of Pratt met in Regular session in the Commission Room located in City Hall.
PRESENT: Bill Hlavachick Mayor
Jeff Taylor Commissioner
Willy Peltier Commissioner
Victor Graf Commissioner
Gary Skaggs Commissioner
ALSO PRESENT: Dave Howard City Manager
LuAnn Kramer City Clerk
Ken Van Blaricum City Attorney
Diana Garten Finance Director
Steve Holmes Chief of Police
Russell Rambat Public Works Director
Brad Blankenship Building Inspector
Kelly Hemphill Dir. of Electric Utilities
Bruce Pinkall Recreation Director
CALL TO ORDER:
Mayor Hlavachick called the regular meeting to order. The Mayor instructed the Clerk to note that all Commissioners were present.
Mayor Hlavachick reminded the audience that the meeting may be taped and/or recorded.
MINUTES:
A motion by Commissioner Taylor to approve the minutes of the July 19, 2010 Recessed meeting and the July 19, 2010 Regular meeting. The motion was seconded by Commissioner Graf and carried unanimously.
OPEN AGENDA:
• ‘Thank you’ from Optimist Club:
Mr. Gordon Stauffer, from the Optimist Club, commented that they wanted to thank the City for letting them use the new fire station to store the bicycles that were being sent to the Correctional Facility to be restored. Mr. Stauffer stated that they had received approximately two hundred and fifty bikes and had distributed eighty bikes to kids in Pratt. Commissioner Skaggs questioned if there was a certain criteria that a child had to meet to get a bike. Mr. Stauffer commented that if they show up, they get a bike. Commissioner Taylor questioned what they look like when they come back. Mr. Stauffer stated that some come back looking like new and there are some that cannot be restored at all. Mr. Stauffer commented that they were enthused about the program and were hoping to do more pick-ups and distributions next year.
BUSINESS:
CONSIDERATION AND APPROVAL OF BID FOR WELTON STREET WATER PROJECT:
Water Superintendent Kelvin Clay informed the Commission that they would be replacing the water main from Welton Street to Green Street and Welton Street to Maple Street. Mr. Clay commented that this would cover twelve water service lines and 540 linear feet of 12” water main. Mr. Clay explained that this was a carry-over project from last year when they had replaced 800’ of 6” water main on Sunrise Avenue and would finish up next year with 600’ of water main being replaced
Mr. Clay stated that he had sent out six bids and six had been returned. Mr. Clay explained that Salina Wholesale Supply had an error in their bid process and had been removed, so the low bid went to D.C. & B. Supply from Pratt for $13,236.07.
A motion by Commissioner Taylor to accept the bid for supplies from D.C. & B. Supply for $13,236.07. The motion was seconded by Commissioner Peltier. Commissioner Skaggs questioned if this bid was for materials only and if the City would do the work. Mr. Clay stated that was correct. Commissioner Skaggs commented that the work done on Sunrise Avenue had left a place in the pavement that was not smooth. Public Works Director Russell Rambat commented that that was not Mr. Clay’s area and that they may have used a coal mix that had aged, but it could be replaced with slurry seal or filled with coal mix when they work on the streets this fall. The motion was voted on and passed unanimously.
CONSIDERATION AND APPROVAL OF BID FOR TWO (2) 750 KVA TRANSFORMERS:
Director of Electric Utilities Kelly Hemphill commented that two bids had been sent out and two had been returned. Mr. Hemphill explained that the bid had been sent out for one transformer and they had later learned that both the new BTI building and the new recreation center would require the same transformer.
Mr. Hemphill commented that Stanion Wholesale Electric sent in a bid of $25,791.54 and Kriz-Davis had a bid of $29,316.13; therefore, they would recommend the low bid from Stanion Wholesale Electric. A motion by Commissioner Peltier to accept the bid from Stanion Wholesale Electric for $25,791.54. The motion was seconded by Commissioner Graf. Commissioner Skaggs commented that he was impressed with the way the bids were put out. A vote on the motion was taken and it passed unanimously.
CONSIDERATION AND APPROVAL OF ENGINEERING SERVICES CONTRACT FOR THE WASTEWATER TREATMENT PLANT IMPROVEMENTS:
Mr. Alan Luttrell, EBH Engineering, informed the Commission that the City had had discussions with KDHE about four years ago concerning an upgrade of the City’s wastewater treatment plant and that the last update was in 1998. Mr. Luttrell stated that the anaerobic digester was being pushed to meet the 503 regulations. Mr. Luttrell explained that when you land apply the sludge, you have to take into consideration the weather conditions and if you are not able to apply it, the sludge has to keep recirculating through the plant.
Mr. Luttrell commented that KDHE had advised an upgrade and they have Stimulus funds available and have Pratt at the top of the list to get funded. Mr. Luttrell stated that this was a 40% forgiveness loan and at an interest rate of about 2.75%, but you have to have the paperwork in by September 1st. Mr. Luttrell added that the total cost of the project would be approximately $1,642,000 with 40% forgiveness brought the amount financed to about $985,000. Mr. Luttrell stated that when the application was in, they would lock in the rate and it was up to the City whether to pay it off in ten, fifteen or twenty years. City Manager Dave Howard commented that the City had been putting back funds for this project for the last four or five years, so there was about $600,000 for the upgrade. Commissioner Peltier questioned if the amount financed would be around $300,000. Mr. Luttrell suggested borrowing the full amount and then you have the option on how to pay it back.
Public Works Director Russell Rambat commented that is was hard to find farmers that want the sludge due to the regulations, but the plant had never been out of compliance. Mr. Rambat added that by being able to get rid of the solids like they were designed, they could knock down the numbers on what is going down the river and the plant would run more efficiently Commissioner Peltier questioned if the sludge problems would be a significant issue in three or four years. Mr. Rambat stated that it could be and that it was common to haul the sludge to Preston.
Mr. Luttrell commented that if the financing would fall through, this contract would be voided. Commissioner Skaggs questioned if EBH had a contract with the City for all of these type studies or if we put it out for bid. Mr. Luttrell commented that he does not bid on jobs. Mr. Howard explained that EBH had moved their office to Pratt as part of an economic development package and since then the City had not gone out for engineering bids with EBH being in town. Commissioner Skaggs commented that he was just curious why it had not gone out for bids since it was a large project. Mr. Luttrell stated that he does not bid on jobs, because it was not in the best interest of the client. Mayor Hlavachick commented that the City had had good luck with EBH. Commissioner Taylor commented that the City had gotten burnt about twenty years ago from an engineer. Mr. Howard stated that Mr. Luttrell knows our systems and has our best interest in mind. Mr. Luttrell commented that that was just his rule of thumb to not bid jobs and that he develops a relationship with his clients and they can ask questions or call and do not get charged. Mr. Howard commented that if engineering jobs were bid out, they could do a poor job and leave, but Mr. Luttrell lives here.
After little more discussion, Mr. Luttrell explained that the Commission would need to approve the engineering contract and authorize the City Manager to sign the contract. A motion by Commissioner Peltier to approve the contract as written and allow Mr. Howard to sign the contract. The motion was seconded by Commissioner Graf and carried unanimously.
REPORTS:
City Manager:
• Downtown merchants meeting:
City Manager Dave Howard informed the Commission that there would be another meeting with the downtown merchants concerning the water project on August 17th. Mr. Howard commented that APAC and Mr. Luttrell would be in attendance to answer any questions they may have. Commissioner Skaggs questioned when they were scheduled to start. Mr. Howard stated that it should be the end of the month and then they would finish up the end of October. Commissioner Skaggs commented that August and September were the ‘dog days’ for merchants, so this should work out well. Mr. Rambat commented that they scheduled it so that they could get out of the corridor early. Mr. Howard explained that the foreman that APAC wanted on the job was busy on another job, but should be finished soon.
Public Works:
• Maple Street bridge:
Public Works Director Russell Rambat commented that the Maple Street bridge was complete and the street portion should start in the next couple of weeks.
• Stout Street:
Mr. Rambat informed the Commission that bids would be opened on August 12th for a small project on Stout Street that would involve replacing 135’ north starting at First Street on Stout Street and a mill and overlay from that point to Walnut Street.
• Curb project:
Mr. Rambat stated that the curb project was still going on and that the contractor would be back in the next couple of weeks. Mr. Rambat added that this would give the street department time to catch up on the brick work that needed to be done.
Electric Departments:
• FEMA job:
Director of Electric Utilities Kelly Hemphill commented that line distribution had been working on a FEMA project in the alley south of the Law Enforcement Center and would end near the County barn.
• House move:
Mr. Hemphill stated that there would be a house move Wednesday from South Jackson which required some lines to be raised. Mayor Hlavachick questioned where the house was being moved to. Mr. Hemphill commented that it was on the corner of Northeast 30th Avenue and Northeast 30th Street. Mr. Hemphill added that most of the lines were already raised and there should be no interruption of power.
Recreation Department:
• MAYB Tournament:
Recreation Director Bruce Pinkall commented that he had helped at the MAYB tournament this past weekend and that there were twenty teams involved. Mr. Pinkall commented that they had sold seven hundred tickets, which added up to about a thousand additional people in Pratt. Commissioner Peltier commented that the new facility would work well for a tournament like this. Mr. Pinkall stated that Mr. Doug Will and Mr. Matt Hecker put this tournament together and had discussed the new facility for next year’s event.
• Budget hearing:
Finance Director Diana Garten reminded the Commission that the budget hearing would be held during the next meeting.
Commission:
• Hampton Park:
Commissioner Peltier commented that he would like to see some play equipment at Hampton-Pennock Park and asked Mr. Rambat if he had any ideas. Mr. Rambat stated that he had visited with Park Superintendent Mark Eckhoff and they would flag off an area and get a game plan for some equipment. Commissioner Peltier commented that there was nothing up.
• Local bidders:
Commissioner Taylor commented he could appreciate that the three agenda items were bids that were awarded to local people. Commissioner Taylor questioned how many people EBH had on staff. Mr. Rambat commented that they have three full time employees, two surveyors, Ms. Susan Ibarra, so they have five to seven depending on what was going on.
• Charles Phillippe:
Commissioner Skaggs commented that he had had several conversations with Mr. Charles Phillippe about violations against his neighbor and the numerous complaints he had sent to the City. Commissioner Skaggs questioned if Mr. Phillippe was correct when he said that things get done when the City staff responds, but it goes back to the way it was eventually.
Commissioner Taylor commented that there was nothing found wrong when the City staff responds to Mr. Phillippe’s complaints. City Attorney Van Blaricum commented that Mr. Blankenship, Chief Holmes and other officers have responded to all of the complaints. Mr. Van Blaricum explained that Mr. Phillippe is a neat and tidy person and his neighbor is not, but after careful evaluation, the City had found no violations.
Commissioner Skaggs stated that Mr. Phillippe had mentioned used tires in the back yard that had been moved after he had complained, but now they were back. Commissioner Taylor commented that the used tires had stickers on them. Building Inspector Blankenship commented that Mr. Winters has a six foot fence and you cannot see anything and there is not a mosquito problem. Mr. Howard commented that someone has responded to all of the complaints, but they have found no violations. Mr. Blankenship explained that Mr. Phillippe had complained about the vehicles that were parked on the street and on the lawn of his neighbor and also about a hazardous spill. Mr. Blankenship stated that there were no violations and after contacting Fire Chief David Kramer and Mr. Mark McManaman, there was no threat of a hazardous spill. Mr. Blankenship commented that Mr. Phillippe had given the City an eight page ordinance that he wanted passed that would prevent someone from parking a motor home on grass and that it had to be on cement or asphalt. Mr. Van Blaricum commented that they had also received calls from the neighbor about Mr. Phillippe harassing him.
Commissioner Skaggs stated that it sounded like the City was doing what they could. Mr. Van Blaricum commented that they were on the case.
ADJOURN:
A motion by Commissioner Taylor to adjourn. The motion was seconded by Commissioner Skaggs and carried unanimously.
_______________________________________
BILL HLAVACHICK, Mayor
(SEAL)
ATTEST:
__________________________________
LUANN KRAMER, City Clerk
AUGUST 02, 2010
The Governing Body of the City of Pratt met in Regular session in the Commission Room located in City Hall.
PRESENT: Bill Hlavachick Mayor
Jeff Taylor Commissioner
Willy Peltier Commissioner
Victor Graf Commissioner
Gary Skaggs Commissioner
ALSO PRESENT: Dave Howard City Manager
LuAnn Kramer City Clerk
Ken Van Blaricum City Attorney
Diana Garten Finance Director
Steve Holmes Chief of Police
Russell Rambat Public Works Director
Brad Blankenship Building Inspector
Kelly Hemphill Dir. of Electric Utilities
Bruce Pinkall Recreation Director
CALL TO ORDER:
Mayor Hlavachick called the regular meeting to order. The Mayor instructed the Clerk to note that all Commissioners were present.
Mayor Hlavachick reminded the audience that the meeting may be taped and/or recorded.
MINUTES:
A motion by Commissioner Taylor to approve the minutes of the July 19, 2010 Recessed meeting and the July 19, 2010 Regular meeting. The motion was seconded by Commissioner Graf and carried unanimously.
OPEN AGENDA:
• ‘Thank you’ from Optimist Club:
Mr. Gordon Stauffer, from the Optimist Club, commented that they wanted to thank the City for letting them use the new fire station to store the bicycles that were being sent to the Correctional Facility to be restored. Mr. Stauffer stated that they had received approximately two hundred and fifty bikes and had distributed eighty bikes to kids in Pratt. Commissioner Skaggs questioned if there was a certain criteria that a child had to meet to get a bike. Mr. Stauffer commented that if they show up, they get a bike. Commissioner Taylor questioned what they look like when they come back. Mr. Stauffer stated that some come back looking like new and there are some that cannot be restored at all. Mr. Stauffer commented that they were enthused about the program and were hoping to do more pick-ups and distributions next year.
BUSINESS:
CONSIDERATION AND APPROVAL OF BID FOR WELTON STREET WATER PROJECT:
Water Superintendent Kelvin Clay informed the Commission that they would be replacing the water main from Welton Street to Green Street and Welton Street to Maple Street. Mr. Clay commented that this would cover twelve water service lines and 540 linear feet of 12” water main. Mr. Clay explained that this was a carry-over project from last year when they had replaced 800’ of 6” water main on Sunrise Avenue and would finish up next year with 600’ of water main being replaced
Mr. Clay stated that he had sent out six bids and six had been returned. Mr. Clay explained that Salina Wholesale Supply had an error in their bid process and had been removed, so the low bid went to D.C. & B. Supply from Pratt for $13,236.07.
A motion by Commissioner Taylor to accept the bid for supplies from D.C. & B. Supply for $13,236.07. The motion was seconded by Commissioner Peltier. Commissioner Skaggs questioned if this bid was for materials only and if the City would do the work. Mr. Clay stated that was correct. Commissioner Skaggs commented that the work done on Sunrise Avenue had left a place in the pavement that was not smooth. Public Works Director Russell Rambat commented that that was not Mr. Clay’s area and that they may have used a coal mix that had aged, but it could be replaced with slurry seal or filled with coal mix when they work on the streets this fall. The motion was voted on and passed unanimously.
CONSIDERATION AND APPROVAL OF BID FOR TWO (2) 750 KVA TRANSFORMERS:
Director of Electric Utilities Kelly Hemphill commented that two bids had been sent out and two had been returned. Mr. Hemphill explained that the bid had been sent out for one transformer and they had later learned that both the new BTI building and the new recreation center would require the same transformer.
Mr. Hemphill commented that Stanion Wholesale Electric sent in a bid of $25,791.54 and Kriz-Davis had a bid of $29,316.13; therefore, they would recommend the low bid from Stanion Wholesale Electric. A motion by Commissioner Peltier to accept the bid from Stanion Wholesale Electric for $25,791.54. The motion was seconded by Commissioner Graf. Commissioner Skaggs commented that he was impressed with the way the bids were put out. A vote on the motion was taken and it passed unanimously.
CONSIDERATION AND APPROVAL OF ENGINEERING SERVICES CONTRACT FOR THE WASTEWATER TREATMENT PLANT IMPROVEMENTS:
Mr. Alan Luttrell, EBH Engineering, informed the Commission that the City had had discussions with KDHE about four years ago concerning an upgrade of the City’s wastewater treatment plant and that the last update was in 1998. Mr. Luttrell stated that the anaerobic digester was being pushed to meet the 503 regulations. Mr. Luttrell explained that when you land apply the sludge, you have to take into consideration the weather conditions and if you are not able to apply it, the sludge has to keep recirculating through the plant.
Mr. Luttrell commented that KDHE had advised an upgrade and they have Stimulus funds available and have Pratt at the top of the list to get funded. Mr. Luttrell stated that this was a 40% forgiveness loan and at an interest rate of about 2.75%, but you have to have the paperwork in by September 1st. Mr. Luttrell added that the total cost of the project would be approximately $1,642,000 with 40% forgiveness brought the amount financed to about $985,000. Mr. Luttrell stated that when the application was in, they would lock in the rate and it was up to the City whether to pay it off in ten, fifteen or twenty years. City Manager Dave Howard commented that the City had been putting back funds for this project for the last four or five years, so there was about $600,000 for the upgrade. Commissioner Peltier questioned if the amount financed would be around $300,000. Mr. Luttrell suggested borrowing the full amount and then you have the option on how to pay it back.
Public Works Director Russell Rambat commented that is was hard to find farmers that want the sludge due to the regulations, but the plant had never been out of compliance. Mr. Rambat added that by being able to get rid of the solids like they were designed, they could knock down the numbers on what is going down the river and the plant would run more efficiently Commissioner Peltier questioned if the sludge problems would be a significant issue in three or four years. Mr. Rambat stated that it could be and that it was common to haul the sludge to Preston.
Mr. Luttrell commented that if the financing would fall through, this contract would be voided. Commissioner Skaggs questioned if EBH had a contract with the City for all of these type studies or if we put it out for bid. Mr. Luttrell commented that he does not bid on jobs. Mr. Howard explained that EBH had moved their office to Pratt as part of an economic development package and since then the City had not gone out for engineering bids with EBH being in town. Commissioner Skaggs commented that he was just curious why it had not gone out for bids since it was a large project. Mr. Luttrell stated that he does not bid on jobs, because it was not in the best interest of the client. Mayor Hlavachick commented that the City had had good luck with EBH. Commissioner Taylor commented that the City had gotten burnt about twenty years ago from an engineer. Mr. Howard stated that Mr. Luttrell knows our systems and has our best interest in mind. Mr. Luttrell commented that that was just his rule of thumb to not bid jobs and that he develops a relationship with his clients and they can ask questions or call and do not get charged. Mr. Howard commented that if engineering jobs were bid out, they could do a poor job and leave, but Mr. Luttrell lives here.
After little more discussion, Mr. Luttrell explained that the Commission would need to approve the engineering contract and authorize the City Manager to sign the contract. A motion by Commissioner Peltier to approve the contract as written and allow Mr. Howard to sign the contract. The motion was seconded by Commissioner Graf and carried unanimously.
REPORTS:
City Manager:
• Downtown merchants meeting:
City Manager Dave Howard informed the Commission that there would be another meeting with the downtown merchants concerning the water project on August 17th. Mr. Howard commented that APAC and Mr. Luttrell would be in attendance to answer any questions they may have. Commissioner Skaggs questioned when they were scheduled to start. Mr. Howard stated that it should be the end of the month and then they would finish up the end of October. Commissioner Skaggs commented that August and September were the ‘dog days’ for merchants, so this should work out well. Mr. Rambat commented that they scheduled it so that they could get out of the corridor early. Mr. Howard explained that the foreman that APAC wanted on the job was busy on another job, but should be finished soon.
Public Works:
• Maple Street bridge:
Public Works Director Russell Rambat commented that the Maple Street bridge was complete and the street portion should start in the next couple of weeks.
• Stout Street:
Mr. Rambat informed the Commission that bids would be opened on August 12th for a small project on Stout Street that would involve replacing 135’ north starting at First Street on Stout Street and a mill and overlay from that point to Walnut Street.
• Curb project:
Mr. Rambat stated that the curb project was still going on and that the contractor would be back in the next couple of weeks. Mr. Rambat added that this would give the street department time to catch up on the brick work that needed to be done.
Electric Departments:
• FEMA job:
Director of Electric Utilities Kelly Hemphill commented that line distribution had been working on a FEMA project in the alley south of the Law Enforcement Center and would end near the County barn.
• House move:
Mr. Hemphill stated that there would be a house move Wednesday from South Jackson which required some lines to be raised. Mayor Hlavachick questioned where the house was being moved to. Mr. Hemphill commented that it was on the corner of Northeast 30th Avenue and Northeast 30th Street. Mr. Hemphill added that most of the lines were already raised and there should be no interruption of power.
Recreation Department:
• MAYB Tournament:
Recreation Director Bruce Pinkall commented that he had helped at the MAYB tournament this past weekend and that there were twenty teams involved. Mr. Pinkall commented that they had sold seven hundred tickets, which added up to about a thousand additional people in Pratt. Commissioner Peltier commented that the new facility would work well for a tournament like this. Mr. Pinkall stated that Mr. Doug Will and Mr. Matt Hecker put this tournament together and had discussed the new facility for next year’s event.
• Budget hearing:
Finance Director Diana Garten reminded the Commission that the budget hearing would be held during the next meeting.
Commission:
• Hampton Park:
Commissioner Peltier commented that he would like to see some play equipment at Hampton-Pennock Park and asked Mr. Rambat if he had any ideas. Mr. Rambat stated that he had visited with Park Superintendent Mark Eckhoff and they would flag off an area and get a game plan for some equipment. Commissioner Peltier commented that there was nothing up.
• Local bidders:
Commissioner Taylor commented he could appreciate that the three agenda items were bids that were awarded to local people. Commissioner Taylor questioned how many people EBH had on staff. Mr. Rambat commented that they have three full time employees, two surveyors, Ms. Susan Ibarra, so they have five to seven depending on what was going on.
• Charles Phillippe:
Commissioner Skaggs commented that he had had several conversations with Mr. Charles Phillippe about violations against his neighbor and the numerous complaints he had sent to the City. Commissioner Skaggs questioned if Mr. Phillippe was correct when he said that things get done when the City staff responds, but it goes back to the way it was eventually.
Commissioner Taylor commented that there was nothing found wrong when the City staff responds to Mr. Phillippe’s complaints. City Attorney Van Blaricum commented that Mr. Blankenship, Chief Holmes and other officers have responded to all of the complaints. Mr. Van Blaricum explained that Mr. Phillippe is a neat and tidy person and his neighbor is not, but after careful evaluation, the City had found no violations.
Commissioner Skaggs stated that Mr. Phillippe had mentioned used tires in the back yard that had been moved after he had complained, but now they were back. Commissioner Taylor commented that the used tires had stickers on them. Building Inspector Blankenship commented that Mr. Winters has a six foot fence and you cannot see anything and there is not a mosquito problem. Mr. Howard commented that someone has responded to all of the complaints, but they have found no violations. Mr. Blankenship explained that Mr. Phillippe had complained about the vehicles that were parked on the street and on the lawn of his neighbor and also about a hazardous spill. Mr. Blankenship stated that there were no violations and after contacting Fire Chief David Kramer and Mr. Mark McManaman, there was no threat of a hazardous spill. Mr. Blankenship commented that Mr. Phillippe had given the City an eight page ordinance that he wanted passed that would prevent someone from parking a motor home on grass and that it had to be on cement or asphalt. Mr. Van Blaricum commented that they had also received calls from the neighbor about Mr. Phillippe harassing him.
Commissioner Skaggs stated that it sounded like the City was doing what they could. Mr. Van Blaricum commented that they were on the case.
ADJOURN:
A motion by Commissioner Taylor to adjourn. The motion was seconded by Commissioner Skaggs and carried unanimously.
_______________________________________
BILL HLAVACHICK, Mayor
(SEAL)
ATTEST:
__________________________________
LUANN KRAMER, City Clerk
Friday, August 13, 2010
08/16/10 City Commission meeting Agenda
MONDAY
AUGUST 16, 2010
PRATT CITY COMMISSION – REGULAR COMMISSION MEETING
COMMISSION ROOM – 5:00 P.M.
1. CALL TO ORDER (Remind audience that meeting is being recorded and/or taped.)
2. ROLL CALL
3. MINUTES – August 02, 2010 Regular City Commission meeting
4. OPEN AGENDA
5. BUSINESS:
5.1 Public Hearing on Proposed 2011 City of Pratt Budget –
• Open Public Hearing – Mayor & Commission
• Discussion on Proposed 2011 City of Pratt Budget
• Close Public Hearing – Mayor & Commission
• Approve 2011 City of Pratt Budget – Mayor & Commission
5.2 Consideration and Approval of Ordinance 1006 to Increase Tax Revenues for 2011 Budget Year – Diana Garten, Finance Director (Ordinance 1006)
5.3 Update on Pratt Fest Activities over Labor Day Weekend – Laurie Kovach, Leadership Class of 2010
5.4 Consideration and Approval of 2010 Budgeted Money to be Used for Maintenance/Shop Building instead of Pick-Up Purchase – Bruce Pinkall, Recreation Director
5.5 Consideration and Approval of Low Bid for a Mower Purchase for the Cemetery – Russell Rambat, Public Works Director
5.6 Consideration and Approval of Low Bid for the Stout Street Project – Russell Rambat, Public Works Director
5.7 Consideration and Approval of Ordinance 1007 Amending City Municipal Code Providing for Definitions in Addition to the Uniform Plumbing Code – Brad Blankenship, Building Inspector (Ordinance 1007)
5.8 Consideration and Approval of Ordinance 1008 Amending City Municipal Code Providing for the Adoption of the National Electrical Code of 2008 with the 2007 Electrical Safety Code – Brad Blankenship, Building Inspector (Ordinance 1008)
6. REPORTS
6.1 City Manager
6.2 City Attorney
6.3 Department Heads
6.4 Mayor
6.5 City Commission
7. RECESS until Monday, August 23, 2010 at 12:30 p.m.
AUGUST 16, 2010
PRATT CITY COMMISSION – REGULAR COMMISSION MEETING
COMMISSION ROOM – 5:00 P.M.
1. CALL TO ORDER (Remind audience that meeting is being recorded and/or taped.)
2. ROLL CALL
3. MINUTES – August 02, 2010 Regular City Commission meeting
4. OPEN AGENDA
5. BUSINESS:
5.1 Public Hearing on Proposed 2011 City of Pratt Budget –
• Open Public Hearing – Mayor & Commission
• Discussion on Proposed 2011 City of Pratt Budget
• Close Public Hearing – Mayor & Commission
• Approve 2011 City of Pratt Budget – Mayor & Commission
5.2 Consideration and Approval of Ordinance 1006 to Increase Tax Revenues for 2011 Budget Year – Diana Garten, Finance Director (Ordinance 1006)
5.3 Update on Pratt Fest Activities over Labor Day Weekend – Laurie Kovach, Leadership Class of 2010
5.4 Consideration and Approval of 2010 Budgeted Money to be Used for Maintenance/Shop Building instead of Pick-Up Purchase – Bruce Pinkall, Recreation Director
5.5 Consideration and Approval of Low Bid for a Mower Purchase for the Cemetery – Russell Rambat, Public Works Director
5.6 Consideration and Approval of Low Bid for the Stout Street Project – Russell Rambat, Public Works Director
5.7 Consideration and Approval of Ordinance 1007 Amending City Municipal Code Providing for Definitions in Addition to the Uniform Plumbing Code – Brad Blankenship, Building Inspector (Ordinance 1007)
5.8 Consideration and Approval of Ordinance 1008 Amending City Municipal Code Providing for the Adoption of the National Electrical Code of 2008 with the 2007 Electrical Safety Code – Brad Blankenship, Building Inspector (Ordinance 1008)
6. REPORTS
6.1 City Manager
6.2 City Attorney
6.3 Department Heads
6.4 Mayor
6.5 City Commission
7. RECESS until Monday, August 23, 2010 at 12:30 p.m.
Tuesday, August 3, 2010
7/19/10-Approved Regular Commission Mtg Minutes
MONDAY
JULY 19, 2010
The Governing Body of the City of Pratt met in Regular session in the Commission Room located in City Hall.
PRESENT: Bill Hlavachick Mayor
Jeff Taylor Commissioner
Willy Peltier Commissioner
Victor Graf Commissioner
Gary Skaggs Commissioner
ALSO PRESENT: Dave Howard City Manager
LuAnn Kramer City Clerk
Ken Van Blaricum City Attorney
Diana Garten Finance Director
Steve Holmes Chief of Police
Russell Rambat Public Works Director
Brad Blankenship Building Inspector
Kelly Hemphill Dir. of Electric Utilities
Bruce Pinkall Recreation Director
CALL TO ORDER
Mayor Hlavachick called the Regular meeting to order. The Mayor instructed the Clerk to note that all Commissioners were present.
Mayor Hlavachick reminded the audience that the meeting may be taped and/or recorded.
MINUTES:
A motion by Commissioner Skaggs to approve the minutes as written of the July 06, 2010 regular Commission meeting. The motion was seconded by Commissioner Graf and carried unanimously.
OPEN AGENDA:
No one in the audience wished to address the Commission.
BUSINESS:
CONSIDERATION AND APPROVAL OF BID FOR A NEW 4X4 TRUCK WITH SERVICE BED:
Line Distribution Superintendent Jamie Huber commented that he had been working on bids for a truck purchase that would replace a 2000 Dodge with numerous problems. Mr. Huber commented that the bid was for a 2011 truck and were returned by Doug Reh Cheverolet and Lanterman Motors.
Mr. Huber stated that the bid from Doug Reh Chevrolet was for $43,502 and Lanterman Motors came in at $44,820. Mr. Huber recommended the purchase of the truck from the low bidder, Doug Reh Chevrolet, in the amount of $43,502.
Mr. Huber explained that the 2000 Dodge was a 1/4 ton truck and was on its third transmission and equipment was getting bigger and this truck could not handle it. Mr. Huber stated that the one ton should be big enough. Mr. Huber stated that they would be keeping the 2000 Dodge and it would be used in a lesser roll such as a shop truck. Mr. Huber added that other departments would be able to use the Dodge if they needed it.
A motion by Commissioner Peltier to accept the bid from Doug Reh Chevrolet for a 4X4 truck with a service bed in the amount of $43,502. The motion was seconded by Commissioner Taylor and carried unanimously.
PUBLIC HEARING ON UNSAFE, DANGEROUS, AND UNFIT STRUCTURE AT 816 W. BLAINE:
Upon proper motion, the public hearing on the unsafe, dangerous, and unfit structure at 816 West Blaine was opened. City Attorney Ken Van Blaricum commented that this property had been discussed before and had been observed by Building Inspector Brad Blankenship and had been determined unsafe and unfit. Mr. Van Blaricum stated that the Commission had previously approved a resolution that provided for a hearing date, which was tonight.
Mr. Van Blaricum commented that this structure was a block house and garage that were in very poor condition and if the Commission found the structure unsafe, a time table would have to be followed. Mr. Van Blaricum stated that the resolution states August 19th as the commencement date for repair or removal of the structure and September 19th as the completion date.
Mayor Hlavachick questioned if they had heard from the owner. Mr. Blankenship stated that letters had been sent to the owner by previous inspectors and eventually the house was deeded to the children of the owner. Mr. Blankenship commented that the children were at school in Hays and had asked for the City to wait until May of last year to get things started. Mr. Blankenship explained that he had tried to contact them several times and could not get hold of them. Mr. Blankenship commented that this had been a long time coming and the neighbors want it cleaned up since they were made to do the same with their property.
A motion by Commissioner Peltier to close the public hearing. There was a second by Commissioner Taylor and the motion carried unanimously.
Commissioner Skaggs questioned, if the resolution passed, if it would declare the structure on that property unsafe and unfit. Mr. Van Blaricum commented that that was correct.
The following Resolution 071910 was then presented to the Commission for approval: RESOLUTION DECLARING STRUCTURE UNSAFE, DANGEROUS, AND UNFIT PURSUANT TO K.S.A. 12-1750, et seq. AND PRATT MUNICIPAL CODE SECTION 8.08.010 et seq. A motion by Commissioner Peltier to approve Resolution 071910 declaring the structure at 816 West Blaine unsafe, dangerous and unfit. The motion was seconded by Commissioner Skaggs. City Manager Dave Howard questioned if the construction materials inside the structure would belong to the City if the owners do not come forward. Mr. Van Blaricum stated that it could be used to offset our bill. Mr. Blankenship added that the materials had been sitting in the weather so it could be junk. Commissioner Skaggs questioned when the County would put it up in the Sheriff’s sale. Mr. Van Blaricum stated that it could take anywhere from one to five years. Commissioner Taylor questioned what happens if the property taxes are paid up and we do not take possession of the property. Mr. Van Blaricum explained that any expenses would go onto the next property tax bill. Mr. Howard commented that some owners have deeded us the property, but we do not like to do that. Mayor Hlavachick asked for a vote on the motion on the floor concerning Resolution 071910 declaring the structure at 816 West Blaine unsafe and to have repairs or removal completed by September 19, 2010 and the motion passed unanimously.
CONSIDERATION AND APPROVAL OF REQUEST FOR STREET CLOSING ON JULY 25TH FOR LAKEWOOD SENIOR LIVING CENTER’S SAFETY DAY:
Police Chief Steve Holmes informed the Commission that Lakewood Senior Living Center would be having a Safety Day on Saturday and had requested that Walnut Street in front of the facility be closed from 9:00 a.m. to 1:00 p.m. Commissioner Peltier questioned if that would cause any problems. Chief Holmes stated that it should not and that they had had this last year, but had not requested any street closures.
A motion by Commissioner Taylor to allow Lakewood Senior Living Center to close Walnut Street on July 25th for their Safety Day on the recommendation of Police Chief Holmes. The motion was seconded by Commissioner Graf and carried unanimously.
DEMONSTRATION OF BUSINESS DIRECTORY KIOSK AT GREEN SPORTS COMPLEX:
Recreation Director Bruce Pinkall explained the new business directory kiosk that was located at the Sports Complex to the Commission. Mr. Pinkall pointed out that the kiosk shows a map of the City and the locations of businesses. Mr. Pinkall commented that businesses can put pictures or whatever they want in their advertisement. Mr. Pinkall stated that the kiosk was located underneath the roof of the facility and could be used by people who were looking for a place to eat or go to church. Mr. Pinkall added that the features should be finalized in the next month.
Mayor Hlavachick questioned if businesses were going to be charged for advertisement. Mr. Pinkall stated that they had not gotten that far yet.
REPORTS:
Public Works:
• Maple Street bridge:
Public Works Director Russell Rambat commented that Klaver Construction had poured the bridge deck today and the final pieces would be done next week. Mr. Rambat added that once Klaver Construction was done, Middlecreek Corporation would begin their work.
• Curb project:
Mr. Rambat commented that the curb/sidewalk project was about a third of the way done and they were working on Third Street. Mr. Rambat stated that they had been jumping around so that the street department could get caught up on the brick work.
Inspection Department:
• Building Board meeting:
Building Inspector Brad Blankenship commented that the Building Board had met last Tuesday and there was a full house. Mr. Blankenship stated that the meeting was positive and after talking about the basis of things, so no final decisions were made.
Electric Department:
• Steam units running:
Director of Electric Utilities Kelly Hemphill commented that they had been running the steam units.
• Outage:
Mr. Hemphill stated that there had been a short outage last week due to a capacitor failing and it lasted less than five minutes.
• Diesel & Steam units:
Power Plant Superintendent Ernie Smith added that they had been running two diesels and steam units and pushing twenty megs.
City Clerk/Utility Billing Department:
• On-line Bill Pay:
City Clerk/Utility Billing Supervisor LuAnn Kramer stated that the on-line bill pay program was on the website and being used by customers.
ADJOURN:
A motion by Commissioner Peltier to adjourn. The motion was seconded by Commissioner Taylor and carried unanimously.
______________________________________
BILL HLAVACHICK, Mayor
(SEAL)
ATTEST:
____________________________________
LUANN KRAMER, City Clerk
JULY 19, 2010
The Governing Body of the City of Pratt met in Regular session in the Commission Room located in City Hall.
PRESENT: Bill Hlavachick Mayor
Jeff Taylor Commissioner
Willy Peltier Commissioner
Victor Graf Commissioner
Gary Skaggs Commissioner
ALSO PRESENT: Dave Howard City Manager
LuAnn Kramer City Clerk
Ken Van Blaricum City Attorney
Diana Garten Finance Director
Steve Holmes Chief of Police
Russell Rambat Public Works Director
Brad Blankenship Building Inspector
Kelly Hemphill Dir. of Electric Utilities
Bruce Pinkall Recreation Director
CALL TO ORDER
Mayor Hlavachick called the Regular meeting to order. The Mayor instructed the Clerk to note that all Commissioners were present.
Mayor Hlavachick reminded the audience that the meeting may be taped and/or recorded.
MINUTES:
A motion by Commissioner Skaggs to approve the minutes as written of the July 06, 2010 regular Commission meeting. The motion was seconded by Commissioner Graf and carried unanimously.
OPEN AGENDA:
No one in the audience wished to address the Commission.
BUSINESS:
CONSIDERATION AND APPROVAL OF BID FOR A NEW 4X4 TRUCK WITH SERVICE BED:
Line Distribution Superintendent Jamie Huber commented that he had been working on bids for a truck purchase that would replace a 2000 Dodge with numerous problems. Mr. Huber commented that the bid was for a 2011 truck and were returned by Doug Reh Cheverolet and Lanterman Motors.
Mr. Huber stated that the bid from Doug Reh Chevrolet was for $43,502 and Lanterman Motors came in at $44,820. Mr. Huber recommended the purchase of the truck from the low bidder, Doug Reh Chevrolet, in the amount of $43,502.
Mr. Huber explained that the 2000 Dodge was a 1/4 ton truck and was on its third transmission and equipment was getting bigger and this truck could not handle it. Mr. Huber stated that the one ton should be big enough. Mr. Huber stated that they would be keeping the 2000 Dodge and it would be used in a lesser roll such as a shop truck. Mr. Huber added that other departments would be able to use the Dodge if they needed it.
A motion by Commissioner Peltier to accept the bid from Doug Reh Chevrolet for a 4X4 truck with a service bed in the amount of $43,502. The motion was seconded by Commissioner Taylor and carried unanimously.
PUBLIC HEARING ON UNSAFE, DANGEROUS, AND UNFIT STRUCTURE AT 816 W. BLAINE:
Upon proper motion, the public hearing on the unsafe, dangerous, and unfit structure at 816 West Blaine was opened. City Attorney Ken Van Blaricum commented that this property had been discussed before and had been observed by Building Inspector Brad Blankenship and had been determined unsafe and unfit. Mr. Van Blaricum stated that the Commission had previously approved a resolution that provided for a hearing date, which was tonight.
Mr. Van Blaricum commented that this structure was a block house and garage that were in very poor condition and if the Commission found the structure unsafe, a time table would have to be followed. Mr. Van Blaricum stated that the resolution states August 19th as the commencement date for repair or removal of the structure and September 19th as the completion date.
Mayor Hlavachick questioned if they had heard from the owner. Mr. Blankenship stated that letters had been sent to the owner by previous inspectors and eventually the house was deeded to the children of the owner. Mr. Blankenship commented that the children were at school in Hays and had asked for the City to wait until May of last year to get things started. Mr. Blankenship explained that he had tried to contact them several times and could not get hold of them. Mr. Blankenship commented that this had been a long time coming and the neighbors want it cleaned up since they were made to do the same with their property.
A motion by Commissioner Peltier to close the public hearing. There was a second by Commissioner Taylor and the motion carried unanimously.
Commissioner Skaggs questioned, if the resolution passed, if it would declare the structure on that property unsafe and unfit. Mr. Van Blaricum commented that that was correct.
The following Resolution 071910 was then presented to the Commission for approval: RESOLUTION DECLARING STRUCTURE UNSAFE, DANGEROUS, AND UNFIT PURSUANT TO K.S.A. 12-1750, et seq. AND PRATT MUNICIPAL CODE SECTION 8.08.010 et seq. A motion by Commissioner Peltier to approve Resolution 071910 declaring the structure at 816 West Blaine unsafe, dangerous and unfit. The motion was seconded by Commissioner Skaggs. City Manager Dave Howard questioned if the construction materials inside the structure would belong to the City if the owners do not come forward. Mr. Van Blaricum stated that it could be used to offset our bill. Mr. Blankenship added that the materials had been sitting in the weather so it could be junk. Commissioner Skaggs questioned when the County would put it up in the Sheriff’s sale. Mr. Van Blaricum stated that it could take anywhere from one to five years. Commissioner Taylor questioned what happens if the property taxes are paid up and we do not take possession of the property. Mr. Van Blaricum explained that any expenses would go onto the next property tax bill. Mr. Howard commented that some owners have deeded us the property, but we do not like to do that. Mayor Hlavachick asked for a vote on the motion on the floor concerning Resolution 071910 declaring the structure at 816 West Blaine unsafe and to have repairs or removal completed by September 19, 2010 and the motion passed unanimously.
CONSIDERATION AND APPROVAL OF REQUEST FOR STREET CLOSING ON JULY 25TH FOR LAKEWOOD SENIOR LIVING CENTER’S SAFETY DAY:
Police Chief Steve Holmes informed the Commission that Lakewood Senior Living Center would be having a Safety Day on Saturday and had requested that Walnut Street in front of the facility be closed from 9:00 a.m. to 1:00 p.m. Commissioner Peltier questioned if that would cause any problems. Chief Holmes stated that it should not and that they had had this last year, but had not requested any street closures.
A motion by Commissioner Taylor to allow Lakewood Senior Living Center to close Walnut Street on July 25th for their Safety Day on the recommendation of Police Chief Holmes. The motion was seconded by Commissioner Graf and carried unanimously.
DEMONSTRATION OF BUSINESS DIRECTORY KIOSK AT GREEN SPORTS COMPLEX:
Recreation Director Bruce Pinkall explained the new business directory kiosk that was located at the Sports Complex to the Commission. Mr. Pinkall pointed out that the kiosk shows a map of the City and the locations of businesses. Mr. Pinkall commented that businesses can put pictures or whatever they want in their advertisement. Mr. Pinkall stated that the kiosk was located underneath the roof of the facility and could be used by people who were looking for a place to eat or go to church. Mr. Pinkall added that the features should be finalized in the next month.
Mayor Hlavachick questioned if businesses were going to be charged for advertisement. Mr. Pinkall stated that they had not gotten that far yet.
REPORTS:
Public Works:
• Maple Street bridge:
Public Works Director Russell Rambat commented that Klaver Construction had poured the bridge deck today and the final pieces would be done next week. Mr. Rambat added that once Klaver Construction was done, Middlecreek Corporation would begin their work.
• Curb project:
Mr. Rambat commented that the curb/sidewalk project was about a third of the way done and they were working on Third Street. Mr. Rambat stated that they had been jumping around so that the street department could get caught up on the brick work.
Inspection Department:
• Building Board meeting:
Building Inspector Brad Blankenship commented that the Building Board had met last Tuesday and there was a full house. Mr. Blankenship stated that the meeting was positive and after talking about the basis of things, so no final decisions were made.
Electric Department:
• Steam units running:
Director of Electric Utilities Kelly Hemphill commented that they had been running the steam units.
• Outage:
Mr. Hemphill stated that there had been a short outage last week due to a capacitor failing and it lasted less than five minutes.
• Diesel & Steam units:
Power Plant Superintendent Ernie Smith added that they had been running two diesels and steam units and pushing twenty megs.
City Clerk/Utility Billing Department:
• On-line Bill Pay:
City Clerk/Utility Billing Supervisor LuAnn Kramer stated that the on-line bill pay program was on the website and being used by customers.
ADJOURN:
A motion by Commissioner Peltier to adjourn. The motion was seconded by Commissioner Taylor and carried unanimously.
______________________________________
BILL HLAVACHICK, Mayor
(SEAL)
ATTEST:
____________________________________
LUANN KRAMER, City Clerk
7/19/10-Approved Recessed Commission Mtg Minutes (Budget Session)
MONDAY
JULY 19, 2010
The Governing Body of the City of Pratt met in Recessed Session in the Commission Room located in City Hall.
PRESENT: Bill Hlavachick Mayor
Jeff Taylor Commissioner
Willie Peltier Commissioner
Victor Graf Commissioner
Gary Skaggs Commissioner
ALSO PRESENT: Dave Howard City Manager
LuAnn Kramer City Clerk
Ken Van Blaricum City Attorney
Diana Garten Finance Director
CALL TO ORDER:
Mayor Hlavachick called the recessed meeting to order. The Mayor instructed the Clerk to note that all the Commissioners were present with the exception of Commissioner Taylor, who was running late.
BUSINESS:
2011 BUDGET WORK SESSION:
City Manager Dave Howard informed the Commission that this was a balanced budget and that the goal was to have the expenditures meet the revenue. Mr. Howard commented that there are topics to be discussed later, but that anything can be added to be discussed. Mayor Hlavachick commented that he had an appointment at 1:00 p.m. and Commissioner Peltier also had an appointment at 11:15 a.m.
Finance Director Diana Garten commented that they would begin with the budget highlights. Ms. Garten informed the Commission that the process started early in May when she gives out budget sheets to the department heads and they have a month to think about what they need or want. Ms. Garten commented that the sheets have to be back in June and she begins to put the proposed budget together to see what they need to run the department, but nothing was set in stone and can change. Commissioner Skaggs questioned if there was a State statute that says that the budget has to balance. Ms Garten stated that there has to be cash available and there has to be authority from the Commission to spend that cash and there has to be a positive balance at the end of each fund. Mr. Howard added that you cannot spend what you don’t have. Ms. Garten stated that the revenues equal expenses and there was to be a cash reserve at the end. Ms. Garten explained that this is a balanced budget, because it comes in positive. Mayor Hlavachick commented that input through the chain of command to develop the budget was a better process.
(Commissioner Taylor arrived-8:07)
BUDGET HIGHLIGHTS:
Ms. Garten commented that this was an informal session so the Commission should feel free to interrupt anytime. Ms. Garten stated that this section were items that were pulled out of the budget that were significant. Ms. Garten explained that the 2011 budget was approximately $26,000,000 and it did include a 3% salary increase as calculated in the budget last year, but with the economy the way it was, she would figure in whatever they wanted her to do. Commissioner Peltier questioned if the insurance was included in that $189,000. Ms. Garten stated that it was an additional $110,000 and the salaries were $189,000 including social security, Medicare, unemployment and KPER’s. Ms. Garten added that out of the $189,000, $90,000 was in tax levied funds and $99,000 was in the City’s enterprise funds which were electric, water and wastewater. Commissioner Taylor questioned if the $90,000 in tax levied funds meant that the employees were paid out of the general fund. Mr. Howard stated that the work in the electric and water and wastewater departments are where they get paid from and it has to be run like an actual business. Commissioner Taylor questioned if they carry themselves. Mr. Howard stated that they do, but sanitation is the only department that is marginal. Mayor Hlavachick commented that the employees do a fine job, so he saw no reason to change the cost of living increase. Commissioner Peltier commented that the cost of living was at 3.5 % to 4% in 2010. Commissioner Taylor added that 2011 would be higher with inflation also being higher. Ms. Garten commented that the indicators were that things were getting better. Commissioner Peltier commented that construction goods, paint and carpet were going up and shingles were crazy. Commissioner Peltier questioned Commissioner Skaggs on how the hardware business was going. Commissioner Skaggs stated that hardware was pretty flat, sales were down somewhat, but the cost of goods had held their own.
Mr. Howard commented that sales tax was off 13% from last year, but he had been expecting a decline the last two years. Mr. Howard added that you have to take into consideration that the best retail months are summer and the holiday season. Commissioner Peltier commented that sales tax was higher pre-Greensburg and then it went down because buying cars went down, hardware and lumber sales were down, so sales tax went down as well. Mr. Howard commented that Greensburg get far too much credit as there was also the wind farm and the Ethanol Plant being built then. Ms. Garten commented that she was not sure if the State sales tax going up one percent would have an impact on people’s spending and that it was a stigma in people’s minds. Mr. Howard commented that the Commission could decide on the salary increase after they had gone through the budget.
Health Insurance:
Ms. Garten stated that the health insurance was going to increase and she had provided the Commission with the premiums. Commissioner Taylor questioned what the employee was paying for a family policy. Ms. Garten stated that it was a little less than 20% and we were paying for all of a single premium, but that can be changed. Mr. Howard commented that the scary thing was that the new government things passed could mean major changes in health care. Mr. Howard explained that the Blue Cross Blue Shield representative had said that as long as you do not change your plan, then you do not fall under the new regulations, so we would be better off leaving it as is. Mr. Howard added that you can improve on your plan, but you cannot take anything away. Commissioner Skaggs questioned if there were any written rules concerning the employees’ insurance. Mr. Howard stated that there was not, but the County pays 100% of their employees’ insurance. Commissioner Skaggs asked what determined the 18%. Ms. Garten stated that it was something that came about at budget a few years ago. Commissioner Peltier commented that we could give the employees the 3% salary increase and pick up the difference in insurance premiums. Mr. Howard commented that insurance had gone up 9% last year and it was up 13.7% this year. Commissioner Peltier commented that a 13% increase for insurance and 3% salary increase makes for a nice benefit.
Miscellaneous:
• Workman’s Compensation, sales tax, valuations:
Ms. Garten informed the Commission that workman’s compensation had gone up in 2010 and sales tax had gone down as had been discussed earlier. Ms. Garten commented that the mill levy was calculated at a flat 42.9, which was the same as last year. Ms. Garten explained that she had to transfer funds from the electric utilities, sanitation and wastewater to the general fund and that the proposed valuations were up this year. Ms. Garten commented that the valuations occasionally change due to an appeal, but this was the best estimate given by the County Clerk. Commissioner Peltier questioned if this would bring in more money. Ms. Garten stated that it should bring in about $42,000 more than last year.
Mill levy:
Commissioner Peltier commented that the City was ranked thirty-eight out of sixty second class cities. Mr. Howard stated that the city had cut twenty percent on the mill levy. Commissioner Peltier commented that the County was number two. Ms. Garten explained that the revitalization program was down. Mayor Hlavachick commented that people said that we were the highest taxing County. Mr. Howard clarified that Pratt County was in the top ten, but he did not think that they were number one or two. Commissioner Peltier commented that we do have the college below us.
Ms. Garten stated that there was a mill levy comparison with the top section being the City, the third section was the valuations and the bottom section was the ad volerum taxes that the City has generated off of the mill levy over the years. Ms. Garten explained that the taxing entities stayed about the same with the County going from thirty-one to thirty, the college being about twenty percent, the school was at twenty-seven and the City went from twenty-two percent to twenty-one percent. Mayor Hlavachick stated that things had stayed pretty steady and that the City had decreased its mill levy the last several years. Mr. Howard commented that they did not use the valuations as a guideline since those amounts had been cut. Commissioner Peltier questioned if we had cut the mill levy due to the appraisals going up. Ms. Garten stated that expenses were going up along with fuel and labor costs and it was hard to cut the mill levy if you are only bringing in so much money. Ms. Garten pointed out that the City has a $26 million budget and only collects $1 ½ million in taxes and the rest is from other resources such as sales tax, alcohol, guest and gas taxes, recreation charges and utilities. Commissioner Peltier commented that we were thirty-eight out of sixty and the County was number eight. Commissioner Peltier commented that Northern Natural taking over those wells would hurt the County and the college, but not us. Ms. Garten stated that was correct and that it did not hurt our valuation. Mr. Howard commented that the college has something to do with that since most do not have a college to support. Commissioner Taylor commented that we do have as big a tax base as some. City Attorney Van Blaricum commented that Seward County was about the same as ours. Mr. Howard explained that if you pull twenty percent out from the college, the County was not that far out and the college was what made us look like we have higher taxes.
Fuel Cost:
Ms. Garten stated that the fuel cost budget was based on prices stabilizing and that they had budgeted $5 per gallon last year and $6 the year before.
Main Street project:
Ms. Garten commented that the Main Street project was added into this budget and also the $100,000 cost for engineering services. Commissioner Taylor questioned if anyone had been through Hoisington where they had just cut a path down the middle. Commissioner Taylor added that it was nice and that it does not look bad and was smooth.
Ms. Garten stated that it was in the five year plan that Public Works Director Russell Rambat and Mr. Howard put together to do something of that nature on the rest of Main Street. Mr. Howard added that it may also be part of North Main Street south of the railroad tracks. Commissioner Taylor questioned if that was something that we could do ourselves. Mr. Howard stated that our labor force did not have the man power or the skill level to handle that type of project and even though we would not have to survey it, he would not recommend it. Mayor Hlavachick questioned if Hoisington had put in all new brick. Commissioner Taylor stated that they had not, but they had been torn up for awhile. Commissioner Peltier asked if the State required us to tear out the bricks. Mr. Howard stated that they would fund us the $850,000 in grant money, but you would have to pay for if you wanted to go back with brick Mr. Howard explained that you have to have a surface they approve of or you pay an additional cost and it would also take more time to put bricks down where a concrete base should go down fast. Mayor Hlavachick commented that Hoisington probably has less truck traffic than we do. Commissioner Taylor commented that there are a lot of oil tankers and cattle trucks that go through on Main Street.
Ms. Garten informed the Commission that we had lost $25,000 in city/county highway funds in 2010, but hopefully will not lose anymore in 2011 with the 1% State sales tax increase.
Electric Fund:
Ms. Garten commented that they had realigned the electric fund that was $28 million last year and $26 million this year due to decreasing revenues to more actual and decreased the purchase power in natural gas expenses. Mayor Hlavachick questioned what percent of that went to the general fund. Ms. Garten answered that it was usually $600,000, but this year it would be $685,000.
Economic Development:
• Budget Increase Requested:
Commissioner Skaggs questioned the increase in economic development. Ms. Garten stated that they had increased their budget by $60,000. Commissioner Skaggs questioned what they were doing with those funds. Mr. Howard stated that they help with major projects like BTI, the dentists, hotels, and the Blythe Foundation. Mr. Howard added that the City has probably done more economic development than the ED Board and he was trying to shift it so that they were in sync together. Commissioner Skaggs questioned if the formula was that the City, County and ED puts in funds. Mr. Howard stated that the County raised their donation to $70,000 as did the Chamber, but the City did not. Mr. Howard added that the economy was recovering and he did not disagree with that, but you can double your efforts to stimulate it or stifle it. Commissioner Peltier questioned if $60,000 was in our coffers and we can dictate where it needs to go. Mr. Howard explained that the ED board is involved in BTI at the airport, but the City is not except that using ED money to extend the water and fire service lines. Mr. Howard was asked if he attended the ED board meeting. Mr. Howard stated that he had missed one meeting. Commissioner Skaggs asked who the City members were. Commissioner Taylor answered that the City had two members, the County had two and the Chamber had one. Commissioner Skaggs asked if there should be a Commissioner on the board if we were going to be the major contributor. Mr. Howard commented that that was a good idea. Commissioner Taylor commented that the board members appointed by the City were Mr. Paul Olsen and Mr. Kevin Hamm. Commissioner Skaggs questioned what would happens if we double our contribution and the County cuts back because of the loss of revenue due to the gas field situation. Mr. Howard commented that most of real economic development happens because of City with the ED board being part of that. Mr. Howard added that the County contributes, but does not have much commercial growth, including BTI, which was in the City limits.
Commissioner Graf questioned what dentist we gave to. Mr. Howard answered that it was Dr. Hopkins who was taking over Dr. Ingram’s office. Commissioner Taylor commented that he was doing a remodel and had hired about three more people. Commissioner Graf commented that he could not remember giving to Dr. Hopkins, but did remember giving to Dr. Chris Polk. Mr. Howard agreed that the ED board had helped Dr. Hopkins, not the City.
Sanitation:
• Tipping Fees:
Commissioner Taylor questioned if we had gotten a feel from the County concerning the sanitation tipping fees. Ms. Garten stated that she had not heard that they were changing. Mr. Howard commented that they had raised them last year and they usually forewarn us. Commissioner Taylor commented that we were their cash cow in that area. Mr. Howard commented that we pay them $29,000 in tipping fees a month. Commissioner Skaggs asked if we collect mainly City trash. Mr. Howard answered that we pick up trash for old accounts in County, but no new accounts were being added.
Water Fund:
• Plug and Remove two wells:
Ms. Garten stated that in the water fund Superintendent Kelvin Clay had budgeted to plug and remove two wells that have been abandoned since the 1990’s. Ms. Garten added that the wells contained high nitrates and carbon tetrachloride and it should cost around $15,000 to do both. Ms. Garten commented that the water department also wants to finish up the water main project along Maple Street and that this was not in connection to the Maple Street project, but one that they have been working on for several years.
• Water Quality Study:
Ms. Garten commented that another big expense would be a water quality study that would cost about $35,000, which would access the remaining wells to see where the nitrate levels are. Mr. Howard stated that the City has a slow increase in nitrates in all of the wells and the one near the swimming pool is a major drainage area and those wells in that vicinity were affected. Mr. Howard commented that an underground hydraulics system would follow and the topographical features of the surface would determine how the underground was working. Mr. Howard added that he had called KDHE when he first got here and complained and the State did not want to talk about it. Mr. Howard stated that the feedlot was a major contributor to this. Mr. Howard explained that they would be looking at the study and since there were nitrates concentrating there, we may be able to relocate the wells. Commissioner Taylor questioned if we had thought about relocating them south of the river and we may have to start getting water as far east as the drainage ditch. Mayor Hlavachick commented that the nitrate flow was only going to increase. Commissioner Skaggs questioned the purchasing of land for future development. Mr. Howard commented that we would look at the study and see what could be done. Mr. Howard commented that if the State were to recognize this then we would go after funding.
Mayor Hlavachick asked if we would have to apply for a permit to drill in another area when the wells were abandoned. Mr. Howard commented that the location of the well would be changed, but we do not need to do this one at this time. Mayor Hlavachick commented that there had been money put into a feasible study on a potential reservoir near Elm Creek around Medicine Lodge, because Attica was running out of water. Commissioner Taylor added that this study would help those efforts if we need to look at it down the road. Mr. Howard agreed that it could be the solution and that they did have a meeting tomorrow. Commissioner Peltier questioned if they would want more money. Ms Garten commented that we were committed to three years.
Public works:
• Upgrade mapping system aerial photos:
Ms. Garten commented that Public Works Director Russell Rambat, Director of Electric Utilities Kelly Hemphill and Building Inspector Brad Blankenship would like to look at an upgrade of the mapping systems aerial system. Ms. Garten explained that this was a costly upgrade of about $60,000 but they were hoping to share the expense with the County. Ms. Garten added that Mr. Rambat had visited with Mr. D.J. McMurray at the County and they have agreed to pay for half of the project.
Wastewater Department:
• Clear Utility Easement behind Rolling Hills:
Ms. Garten explained that the major project for the wastewater department would be to clear the utility easement behind Rolling Hills Addition. Ms. Garten commented that the line was in the County, but we need to maintain the easement since it is overgrown and this would make it easier to get to.
• Sludge Handling:
Mr. Howard commented that the wastewater department would also be looking at the sludge handling facility. Mr. Howard explained that the City was earmarked to get a 40% grant to help build that facility, but we have to submit the application before September. Mr. Howard added that the engineers estimated total cost was on the high side at $1,642,000, but they forgive 40% of that and the loan interest rate is at 2.61%. Mr. Howard commented that the wastewater department had been putting away money for the last four or five years for this project.
Mr. Howard explained that when you are hauling sludge, you are hauling 92% water and when it rains or snows you cannot get out in the fields, which can cause an overload on your wastewater system. Mr. Howard added that that was happening more often, but not where we go out of compliance with the NPDS permit. Mr. Howard stated that it is becoming a big issue due to the development downstream of our plant at the Wiildlife and Parks and the lake. Mr. Howard added that if you violate the permit, there are major consequences. Mayor Hlavachick commented that people do not want it anymore. Mr. Howard explained that this system would dry the sludge, bag it and haul it to the landfill.
Mr. Howard stated that he would suggest that the City go ahead and submit the application since it would not obligate us to do it. Mr. Howard explained that he would need a special call meeting on the 23rd of August to approve a resolution to commit to it, Mr. Howard added that if we were awarded the loan, that was when they would make the decision on whether they wanted to proceed and reminded the Commission that 40% of the loan was forgiven. Commissioner Taylor questioned if this was something that could be utilized by other wastewater systems in the area and charge them for dumping their sludge. Mr. Howard commented that almost everybody has lagoon systems and those have to be dredged once every twenty years.
Mr. Howard commented that another option would be to go out and purchase land that we apply the sludge to, but we would have to buy a pretty big piece of land. Commissioner Peltier questioned if it could be dumped at the dump. Mr. Howard answered that you cannot dump the water and the way it was done now was 92% water. Mr. Howard commented that you basically dewater it and use the sludge in the wastewater process. Mr. Howard explained that a wastewater system has microbes that eat the organic waste and anything that is not organic is broken down somewhere in the process and the sludge that you have is actually part of the process. Ms. Garten commented that they have known that the sludge handling was going to be an issue and they have close to $700,000 saved up.
Mr. Howard stated that with the low interest rate being offered, we should consider using that and using the money saved up to service the debt. Mr. Howard added that a 2% interest rate is not heard of. Ms. Garten added that it would be foolish to not take advantage of that. Commissioner Peltier questioned if you pay interest on 100% of the loan amount or the amount after they forgive the 40%. Mr. Howard answered that they immediately forgive 40%, so the interest would be on 60% for ten years. Mr. Howard stated that with the money already set aside; this would not result in a rate increase. Mayor Hlavachick questioned if there was room to build the facility. Mr. Howard stated that there were some old trickling filters where it would go in there and possibly convert the building that houses the septic truck and vacuum truck and then build a new building.
Discussion Topics:
• Main Street project:
Ms. Garten stated that the Main Street Project figures were estimated in the beginning and the waterline came in lower. Mayor Hlavachick questioned when the water line project would get started. Mr. Howard commented that there was an August 17th meeting with the public to let them know that the bid was awarded to APAC Shears. Mr. Howard explained that the start date was not the concern, but it was the end date so that they were done before the holiday season. Mr. Howard thought that they would start in late August and finish in October, but there was the Miss Kansas parade, the sidewalk sale and APAC had another job, so it kicked it off into August. Mr. Howard stated that they should be done in October and the only issue they see is where they tie in the lines that run on Second Street, Third Street and Forth Street that tie into public water lines. Mr. Howard added that the big issue was when we start the surface next year.
• Donations:
Ms. Garten commented that the next section was the donations given by the City. Ms. Garten stated that the City gives the Humane Society $1,000 per month and $6,000 on their utilities each year and their contract was up for renewal at the end of the year.
Commissioner Peltier questioned if the City should have a fund for people who come to the Commission with their hands out. Commissioner Taylor commented that we would run out of money early. Mayor Hlavachick commented that he would like to continue to look at them on a case by case basis.
Commissioner Taylor asked how Chief Holmes felt about dealing with the Humane Society. Mr. Howard commented that there was a continuous problem with them providing space and the reason they were given the donation and utility allowance was so they would provide us with a service. Mr. Howard added that the problem was not during the day, but an after-hours problem when we want the police officer to put the dog in a pen and leave. Mr. Howard explained that our issues are our people and theirs are the animals. Mr. Howard added that if there is a complaint, we have to address it and the officers have instruction that if there is no room at the Humane Society they are to take the animal to Dr. Skaggs. Commissioner Taylor asked if we have a key to Dr. Skaggs so that we can just leave the animal. Mr. Howard stated that we do.
Mr. Howard stated that the issue is that they are not providing the service they are contracted to do. Mr. Howard commented that every time they get a new manager, they blow the contract off until they get a short check and then it becomes an issue. Commissioner Skaggs commented that euthanizing was the issue and it was very sensitive and emotional to them. Mr. Howard stated that he was sympathetic, but we have to look out for the interest of the people. Commissioner Taylor commented that we need to be more restrictive, not less and maybe look into charging mileage.
Mr. Howard stated that at this stage, they will have room because they have a new manager that has been made aware of the issue. Mr. Howard added that in 2008 and 2009, the City never took a dog to Skaggs, because Mr. Mike Hill got it and there was space available. Commissioner Skaggs commented that it looks like it was their responsibility in the contract. Mr. Howard agreed and stated that they are supposed to keep pens available. Commissioner Taylor repeated that the City should firm up the contract and maybe have a $50 charge for police time if no pens are available. Commissioner Skaggs questioned if they would do this service for us if the contract was too restrictive. Mr. Howard commented that we could go out for bids and get this service for less money. Commissioner Taylor added that that would save the citizens money. Commissioner Peltier commented that the Humane Society would go broke without this contract. Commissioner Skaggs commented that they provide a public service, so the City should leave it like it is, but add to #6 that it is their responsibility to notify the police department if there is no room. Commissioner Taylor added that there should be a fee if they do not notify us. Commissioner Peltier commented that he was not against a fee, but do $5 or $10. Commissioner Taylor commented that a $25 fee would give it more teeth and would make them do what they should.
Mr. Howard stated that keeping a manager was the problem and that it does work as long as we have another resource to fall back on, but it is frustrating when they make those claims. Commissioner Taylor commented that he had no problem forwarding a copy of the bill on to them. Mr. Howard added that the City cannot respond within three days with an invoice and it may be a 45 day delay since Dr. Skaggs bills out at the end of each month.
Mr. Howard stated that the problem had been corrected about 3 months ago, but now the board was involved. Commissioner Taylor commented that the right of notification was on them.
• American Legion:
Ms. Garten stated that another donation was to the American Legion. Mr. Howard stated that he had had a conversation with Mr. Rick Wittig and they are going to put more of an effort into keeping up the building. Commissioner Taylor commented that they have internal problems and the Riders need to meet with the people at the Legion and some of that money from the Riders should be going back into the American Legion since they use their name. Commissioner Taylor added that he had found out from some long time members that they were ashamed about Mr. Wittig coming in so many times and using the trump card of being a veteran and putting their life on the line. Commissioner Taylor added that he felt they fill a viable part of community and wants to support it, but there comes a point when the veterans need to come forward and keep it going. Mr. Howard stated that it sounded like they were going to make an effort to do better and they must be doing something since the building did not look that horrible.
• USD 382 request for relief:
Ms. Garten stated that the next topic was a request from USD 382 for relief on their utilities. Mr. Howard stated that he had visited with Dr. Davis and he wanted to know where the City was at on the issue.
Mr. Howard explained that we started receiving the GRDA in June, but were not supposed to get it until 2013 so we were not counting on it until it was delivered. Mr. Howard commented that, in analyzing the schools’ utilities, they have gone up and it was not because of rates. Mr. Howard explained that bills are coming down due to fuel adjustments coming down and the fact was that they have a new school and did not close down the old one. Mr. Howard added that a big building had higher utilities, but Director of Electric Utilities Hemphill, Energy Agent Kreutzer and himself had looked at moving them to another class and the cheapest rate was the industrial rate, which could give them a $60,000 to $70,000 savings. Mr. Howard explained that the weather had the biggest impact on utilities and we would basically be giving them their electricity. Mr. Howard stated that the City has to make a ‘profit’ to maintain and that involves maintaining the plant and the employees. .
Commissioner Skaggs questioned what rate the school was in now. Mr. Howard stated that they were in the commercial rate and that at a certain level, the more you use the less it costs. Mr. Howard explained that the biggest thing we could do would be to put them in the industrial rate, but they do not fit that according to the ordinance. Mr. Howard added that they would pay a cheaper rate, but they would get a demand charge, which means that if they operate machinery or have a huge draw on electric, they have to pay more due to the stress on the system. Mr. Howard commented that a demand charge was figured on usage and not an impact on school. Commissioner Peltier questioned if they use air conditioning in the summer. Mr. Howard stated that their bill jumped up in August, but he was not sure what they were cooling. Commissioner Graf commented that they do keep the gym cool due to summer activities. Mr. Howard stated that there is not a huge history since they have only been there three years. Commissioner Skaggs commented that they may not be able to separate the air conditioning.
Commissioner Skaggs commented that the $60,000 to $70,000 savings they would have if they were put on the industrial rate would come out of our coffers, but questioned if they would qualify as an industry. Mr. Howard stated that the college was put on the industrial rate years ago, but their usage is significantly larger than the high school. Mayor Hlavachick questioned what the ordinance said. Mr. Howard stated that the industrial customer’s definition could be set by the Commission using the college as precedence. Mayor Hlavachick asked what defense the college had when they were put at the industrial rate. Mr. Howard answered that that was a long time before he came. Commissioner Peltier questioned if they were being good stewards of their electricity. Mr. Howard stated that he could not answer that. Commissioner Peltier commented that it would be irresponsible to be cooling the old high school if they are not using much of it. Commissioner Graf stated that there were air conditioning units in each room at the high school. Commissioner Peltier asked if they were using the old high school. Commissioner Taylor commented that the superintendent’s offices were there. Commissioner Skaggs questioned if the new and old high schools use as much electricity as the college. Mr. Howard stated that they do not and that the old high school uses less electricity, but was not significant enough to offset the new building. Commissioner Graf commented that they burn a lot of lights at night in the new building. Mayor Hlavachick questioned if that was not done to prevent vandalism.
Mayor Hlavachick questioned the usage at Haskins Elementary and Southwest Elementary. Mr. Howard commented that those usages were not as significant. Commissioner Taylor commented that Haskins Elementary would be obsolete in a year. Mr. Howard commented that Haskins Elementary drops, as all do, except the new high school. Mr. Howard added that that was what the City had anticipated for all buildings. Mr. Howard explained that the new school used 26,000 in January of 2008 and 30,000 in June and in 2009 it went from 79,000 to 94,000 in July. Mr. Howard stated that he was not aware of the summer activities in the building and he knew that the air conditioning was computerized, but did not know if they could change it for each room.
Mayor Hlavachick questioned if Mr. Howard had received any other information from Dr. Davis. Mr. Howard stated that he had not gotten into too much detail but, hopefully they had made as many changes as they could before making the request. Commissioner Hlavachick questioned if the City would break even if the school was put on the industrial rate. Mr. Howard stated that it would be a rough estimate since they had not been there long enough to see a trend. Mr. Howard explained that the industrial rate was at 6.8 cents per kilowatt and GRDA drops it down to .06 cents. Mr. Howard commented that he would be doing a rate analysis with Mr. Kreutzer, Mr. Smith and Mr. Hemphill.
Commissioner Skaggs questioned if we need to have a light industrial rate or a heavy commercial rate so that we do not cut ourselves to the quick. Commissioner Skaggs also questioned if the school would ask for a mill levy increase if we do not do this for them. Commissioner Taylor commented that they have increased the mill levy for other things. Commissioner Skaggs commented that we have to run the City so that it does not just break even and look out for our own or help the school system. Commissioner Peltier commented that there is a lot to be said for the hospital, college and school since they employ a lot of people and provide a lot of feed back to the City in the purchase of food, fuel and renting of property.
Commissioner Taylor questioned if there was any chance of losing them to another provider. Mr. Howard stated that there was not, because no one could infringe on our territory. Commissioner Taylor commented that, at one time, there was talk of wholesale wheeling and the only thing we could get back from that was a transmission charge. Mr. Howard commented that Ninnescah Rural Electric and Southern Pioneer’s rates are cheaper, but when you are buying city electric you are paying for backup generation. Mr. Howard added that Ninnescah Rural Electric does not have that, but Southern Pioneer does have it through Sunflower Pioneer. Mr. Howard commented that when Ninnescah got knocked out during the ice storm in 2007- we had some of their customers want on our power and they were willing to pay for the City’s electric since they would also be paying for backup generation. Mr. Howard added that during the tornado we would have been out a week if we had not had our own generation. Mr. Howard explained that electricity was cheap when you do not have it so ours may be more expensive, but it is worth it and we do provide the service. Commissioner Taylor commented that Ninnescah does not provide lights for the City, so if you have a light on a pole, you are paying for that. Commissioner Taylor added that the whole City has light and if the City pays for it, the customer pays for it. Commissioner Taylor stated that if the customers want rates like Ninnescah, the City could turn that off.
Getting back to the school subject, Commissioner Peltier commented that if you cut the revenue from the school by $60,000, you have to make cuts somewhere else. Commissioner Taylor commented that we could give them a percentage off to help them out and also encourage them to have a study done with the money they save that would show them how to save, such as putting lights on timers. Mr. Howard stated that the other thing we need to keep in mind was that if we do that, then we would have the hospital in here. Commissioner Skaggs questioned if the college was the only one who was already getting a cheaper rate. Mr. Howard stated that they were and he commented that when you get into subsidizing your utilities, it is a never ending thing. Mayor Hlavachick commented that he was not ready to do anything until we know what they are doing or if they are making an effort. Commissioner Graf suggested that the Commissioners take a walk through the school and then we would know what they are currently doing. Commissioner Skaggs questioned if the school was waiting for a response from the one letter that was received from Dr. Davis. Mr. Howard commented that he had not heard anymore, but with changes in our electrical issues, we should wait and analyze the impact of GRDA. Mr. Howard explained that, at times, six megs is almost our whole load and now it would be at 20% to 22% of our load. Mr. Howard commented that the fuel adjustment was set by ordinance and any electricity that we buy over three cents needs to be charged a fuel adjustment. Mr. Howard added that three-cent electricity is ridiculous and you cannot get it in market pricing. Mr. Howard stated that he would propose a change in the ordinance from ‘fuel adjustment’ to ‘energy cost adjustment’ and that would raise it from three to five cents. Mr. Howard clarified that that was not a rate increase, but it would only charge a fuel adjustment on any electricity over five cents. Mr. Howard added that that would take our fuel adjustment back to one-cent and that would mean that there would be no fuel adjustment on the GRDA or on the cheap market value.
Commissioner Peltier questioned if the consumer would be charged less. Mr. Howard commented that they have been ignoring the ordinance since there is no such thing as three-cent electricity and have been averaging the fuel adjustment. Mr. Howard explained that the fuel adjustment is the price of natural gas and if done month to month that could mean that one bill would be one-cent and the next ten cents, but, in averaging some months, we are charging more than we should and putting it away and in the summer months we use that up. Mr. Howard stated that what this would do is develop a floating reserve of about half a million dollars and we would be able to charge one or one and a half cent fuel adjustment all the time regardless of the natural gas price.
Commissioner Skaggs questioned what this had to do with USD 382. Mr. Howard explained that this could make their bill come down a lot as a big user and the fuel adjustment being figured on usage, but the ordinance had not been drafted yet. Commissioner Peltier commented that he was not enthusiastic about dropping the school below cost or taking a percentage off, but would rather have them dropped a level and still be profitable. Commissioner Taylor commented that his intent was to drop a percent and put them in an educational big user level. Commissioner Skaggs stated that the hospital generates revenue and the schools do not and he would like to see them at a level where we can help, but not go down to cost.
Mr. Howard commented that the school wanted immediate relief, but with the changes in the last year, there was not enough time to see what impact it was going to have. Commissioner Peltier made a motion to table the school issue until there is further information. Mr. Howard commented that GRDA was going to help, but he was not sure that it was going to be big enough to notice. Mr. Howard stated that the electrical system has to be run like a business and the stronger a utility is, the more it is worth, so we are not hurting ourselves by reinvesting money in the service. Mr. Howard explained that there is a lot of the electrical system that can be insured, but poles and transformers cannot be insured and that can take a hefty portion of our cash reserves, so you have to have money in your electrical system. Mr. Howard added that if a transformer blows it could be $1,000,000.
Mayor Hlavachick stated that there was a motion to table the USD 382 discussion. The motion was seconded by Commissioner Graf. Mr. Howard commented that you need five to ten years to analyze the trend in the electrical utility. Commissioner Taylor questioned if the consensus of the Commission was that we wanted to try and help them. Mayor Hlavachick stated that it was. Mr. Howard added that the City helped out the new school by replacing the electrical line to the school at our cost, so we do have an investment in the school already. Commissioner Taylor questioned if that was about a quarter of a million dollars. Mr. Howard stated that it was. Commissioner Peltier commented that help may be on the way by the way we are buying electricity. Mr. Howard stated that it was going to help, but this was a hot summer. The motion on the floor was voted on and passed unanimously.
• Sunflower H2O:
Ms. Garten reminded the Commission that they had agreed to commit $57,000 over three years to the Sunflower H2O project and we had paid $18,876 in 2010 and would again in 2011. Mr. Howard stated that they were now forming a legal entity so that they would be able to deal with government agencies such as the Corp of Engineers. Mr. Howard commented that the City needs to have a seat on that board so that we can watch where our money goes. Mayor Hlavachick stated that the project has great potential.
• Industrial Park:
Ms. Garten commented that we were ready for phase two at the Industrial Park. Mr. Howard commented that there was one lot left to sell and it had been a lot split where TR’s building was. Mr. Howard stated that if the interest was there, it would need to be plated so the lots could be developed. Mayor Hlavachick questioned if that was forty acres. Mr. Howard stated that he thought it was. Commissioner Peltier commented that since the first phase was full, the City should be looking at doing the other.
• Maple Street:
Ms. Garten commented that Maple Street should be completed in 2010, but things could come up in 2011. Commissioner Taylor questioned if real estate development was a road or electric and what our portion was. Ms. Garten stated that it was whatever happens or whatever the Commission decides to do.
• Economic Development:
Ms. Garten stated that there had been some discussion about a promotional planner for Economic Development. Mr. Howard commented that it was something that had been talked about for two or three years. Commissioner Skaggs asked if this was the Chambers dual hat. Commissioner Peltier commented that this was something that he had been interested in and it would not be under the Chamber. Commissioner Peltier stated that this person would be in charge of getting other events to come to Pratt besides what Recreation Director Pinkall does for the Sports Complex, such as chess, 3 on 3 basketball, quilters or power lifters. Commissioner Peltier commented that you could bring in a hundred competitors, which would in turn bring in four hundred with family members and they would fill our hotels and eat in our restaurants. Commissioner Peltier added that this person would be under the City Manager.
Commissioner Taylor questioned how much money was in the tourism budget. Ms. Garten stated that there was $300,000. Commissioner Taylor commented that that money could be used to promote those types of events. Commissioner Taylor stated that that would generate more funds in tourism and you do not have to build bigger hospitals or schools, because these people come to town for the event and they spend money plus they talk good about you. Commissioner Taylor added that Mr. Pinkall had told them that this was one of the nicest facilities and they could let their kids go to the pool and not have to worry about them. Commissioner Peltier commented that the Blythe Foundation would be able to handle these events.
Commissioner Skaggs questioned where you find this type of person and what they would cost. Mr. Howard stated that you would want to find someone with marketing skills. Commissioner Peltier suggested putting them under a base salary and give them a piece of the entry fees to keep things coming. Commissioner Taylor questioned if their salary would come out of tourism. Mr. Howard stated that it could.
Mr. Howard stated that Mr. Pinkall would be good at this type of job, but he was too busy. Mr. Howard added that this person would be an asset to the City and would pay for themselves. Commissioner Skaggs questioned if we should promote Mr. Pinkall and replace him. Mr. Howard stated that this person could work under Mr. Pinkall. Commissioner Skaggs asked if there was budget money for this and should we run with it. Ms. Garten stated that it can be budgeted for and all they would need to decide would be an amount for salary and expenses. Ms. Garten added that she could add some figures to the tourism budget for that. Mayor Hlavachick questioned if $100,000 would work. Mr. Howard commented that the City gives tourism about $100,000 and they do not spend it all. Mayor Hlavachick commented that a marketing director was worth a lot of money. Commissioner Skaggs stated that this was a place to start.
• Aquatic Evaluation:
Ms. Garten commented that Public Works Director Rambat had budged for an aquatic evaluation on the pool since it was beginning to age. Mayor Hlavachick asked if the insert was still working. Mr. Howard stated that it has to be repaired, but the fiberglass was working. Mr. Howard explained that it was not just the liner as the filter was getting old and the pool was approximately seventy years old.
• New Fire Engine/New Station:
Ms. Garten stated that Fire Chief David Kramer would like to begin to put money back to replace the older engine and he would like to have the Commission consider a ladder truck. Commissioner Skaggs questioned if it would fit in the new facility. Mr. Howard stated that it would. Ms. Garten stated that this was looking into the future and not next year, but cost would be at about $300,000. Commissioner Taylor questioned if the County had one. Mr. Howard stated that they had, but he was not sure that there was water at the top of the ladder. Commissioner Skaggs commented that the County had got it for fighting fires in elevators. Commissioner Skaggs asked if we need one if they have one. Mayor Hlavachick commented that he did not see any reason to have two ladder trucks.
Ms. Garten stated that Chief Kramer had explained that Engine 1 was bought on a lease/purchase and the final payment was in 2011 and he was concerned about several of the new facilities, such as the motel, being multi-stories. Mr. Howard commented that that truck was ten years old. Commissioner Skaggs questioned if we had three trucks. Ms. Garten stated that there was one that was in Iuka and two were stationed here.
Commissioner Skaggs questioned if the City had a working relationship with the County. Mr. Howard stated that there was mutual aid and they would respond to help each other. Commissioner Skaggs commented that he felt that the City should definitely start budgeting for another truck. Mr. Howard stated that they would start putting away the money that had been going to the lease/purchase. Commissioner Taylor questioned if those funds were generated by the mill levy. Ms. Garten stated that was correct. Commissioner Taylor asked if there were any additional funds that could be put towards this. Ms. Garten stated that there was not due to the renovation of the new station. Commissioner Graf questioned if there was grant money that they could try for. Ms. Garten stated that there probably was.
Commissioner Skaggs questioned what the target date was for the completion of the new station. Mr. Howard stated that they were going to be done the first of September, but he would have to talk to Building Inspector Brad Blankenship.
Commissioner Skaggs asked what the space at the Municipal Building was going to be used for after the fire station moves. Mr. Howard stated that it had been discussed that it would be used for storage, but it was up for discussion. Mr. Howard commented that the Blythe Foundation thought it would make a good hand ball court, but that was not going to work. Mr. Howard commented that he was not sure what we would use it for, but the Chamber was looking for another ‘free’ space. Mr. Howard stated that that would take a major renovation. Commissioner Taylor questioned if their current location was owned by Red Cross. Mr. Howard stated that it was, but there were issues with the building. Commissioner Skaggs commented that he felt that when you are going through a town, the Chamber or Visitors Welcome Center should be on the highway and the Municipal Building was not an ideal location.
Commissioner Skaggs questioned if it could be used for a new kitchen facility. Mr. Howard commented that that had been discussed and it could go in new there. Commissioner Skaggs questioned if money had been set aside for that. Mr. Howard commented that there was a maintenance budget for the building and it was specifically earmarked for that building. Mr. Howard commented that he could get an estimate for renovating the kitchen and the budget can always be amended.
Capital Outlay Equipment:
Ms. Garten commented that the capital outlay purchases were items purchased this year out of their budget. Ms. Garten stated that some things had already been talked about such as the Rolling Hill easement and aerial photo equipment.
• Municipal Building:
Commissioner Skaggs questioned the maintenance budget for curtains at the Municipal Building. Mr. Howard stated that they would be for the meeting room as it was rented out a lot for showers and meetings. Commissioner Skaggs commented that we need to keep the Municipal Building maintained as it is a vital source for the community.
• Electric Department:
Commissioner Taylor questioned the air compressors for the electric department and if those were the ones that Power Plant Superintendent Ernie Smith had been keeping them updated on. Mr. Howard stated that they were not, because this one was for the #4 and the older steam units.
• Water Department:
Commissioner Skaggs questioned if everything was going to the wand reading on meters. Mr. Howard stated that we were already doing that with the water meters, but radio reads will be phased in for both electric and water.
Equipment Reserves:
Ms. Garten stated that this was where there is a dollar amount put in that gives us the budget authority to spend them without having to amend the budget. Ms. Garten added that these were items that the departments felt they would need to purchase in 2011.
Mayor Hlavachick asked if the phone system at the power plant was an update from what they have. Ms. Garten stated that the power plant had an old phone system and had not been replaced for many years.
Mr. Howard pointed out that the Maple Street water main had nothing to do with the new construction and there were some lines that almost ran under people’s houses and we had no easements.
Mayor Hlavachick questioned the lift stations at the airport. Mr. Howard explained that these were to the ponds that were old. Ms. Garten stated that they had put money back for a couple of years for that.
Capital Improvements:
Ms. Garten stated that this fund was similar and the Main Street project made it look higher. Commissioner Skaggs questioned the non-projected equipment in the amount of $453,000. Ms. Garten explained that this was for anything that comes up within the year so that we have budget authority without amending the budget. Commissioner Skaggs asked how they came up with that figure. Ms. Garten commented that we wanted to budget a full million for that fund.
Mayor Hlavachick questioned if there was enough money put back for tree loss in the parks. Ms. Garten stated that that was the figure given to her by Parks Superintendent Mark Eckhoff. Mayor Hlavachick questioned what it would take to get a bike path around town and if the trail connecting Lemon Park and Wildlife and Park was going to come to pass. Mayor Hlavachick asked if this was where you would want to put some money into. Ms. Garten commented that there is a special parks fund that part of the alcohol money goes into and she thought this would be an ideal place for that. Ms. Garten added that there should be some grant money out there for something like that. Mayor Hlavachick commented that Ms. Linda Lanterman had been working on the trail from the wastewater plant east for about a half a mile. Mr. Howard added that it was more of a hiking trail than one for bikes.
Proposed Budget:
Ms. Garten commented that she had enclosed the proposed budget and this was what would be filed with the County Clerk. Ms. Garten stated that these numbers were the same as in the detailed information.
• General Fund:
City Commission:
Ms. Garten stated that the City Commission budget stayed pretty much the same with the exception of the increase in health insurance.
City Manager:
Ms. Garten commented that there was nothing new in the budget for the City Manager.
City Attorney:
Ms. Garten commented that the City Attorney budget was the same as last year.
City Clerk/Utility Department:
Ms. Garten explained that the workers comp had been moved around due to the City Clerk and Finance departments having separate budgets.
Finance:
Ms. Garten commented that the workers comp went up along with the health insurance increase.
Police:
Ms. Garten commented that she had moved the parole officer to the municipal court and reduced the part time salary to over time at the request of Chief Holmes.
Ms. Garten stated that the police department typically budgets for two new vehicles and those are found in capital outlays. Commissioner Peltier questioned how many police vehicles we had. Mr. Howard stated that we have nine patrol cars, one crime scene vehicle and one animal control vehicle. Commissioner Skaggs asked how many were out at one time. Mr. Howard stated that it was usually four or five and the others are taken home by the officers. Mr. Howard explained that in case of an emergency, they would be able to respond quickly and it may help with crime to have one sitting in the neighborhood.
Animal Control:
Ms. Garten pointed out that the payment to the Humane Society came from this budget in fund 204.
Municipal Court:
Ms. Garten stated that there was an increase in the salaries since the probation officer’s salary was reallocated to this fund. City Attorney Van Blaricum commented that Ms. Jamie Walker knew the people and was an appropriate choice to do that job.
Commissioner Taylor questioned if they were working on the cross training mentioned by the auditors. Ms. Garten stated that they were working on that with Chief Holmes and Ms. Lyda Kasselman.
Fire Protection:
Ms. Garten stated that there was not much change in this budget except for the purchase of office equipment for the new station.
Planning and Code Enforcement:
Ms. Garten stated there was nothing changed in this budget.
Parks:
Ms. Garten stated that Mr. Eckhoff had actually reduced his budget. Ms. Garten commented that there were four full time employees and seasonal help.
Pool:
Ms. Garten stated that this was where Mr. Rambat had budgeted for a pool upgrade, the aquatic study and sixty foot of sidewalk that needed to be replaced.
Municipal Building:
Ms. Garten stated that this was where the utilities and a few supplies were purchased from. Ms. Garten commented that $10,000 was put back into capital improvements each year for the last five or six years from this fund. Commissioner Skaggs questioned what that meant. Ms. Garten explained that capital equipment reserve and capital improvement funds could be held until ready to be used and larger amounts were put in CD’s in the local banks.
Recreation Department:
Ms. Garten stated that there were not many changes in this budget, but that Mr. Pinkall would be purchasing an aerator in 2011.
Public Works:
Ms. Garten stated that there were not many changes in this budget with the exception of the cost of the utility clearing in Rolling Hills out of professional services. Ms. Garten commented that the remainder of the cost for Rolling Hills was in the wastewater budget.
Maintenance Department:
Ms. Garten commented that this budget takes care of the Community Center, the Municipal Building and City Hall. Ms. Garten stated that there were two full time employees paid from this budget. Commissioner Skaggs asked if they have regular schedules. Ms. Garten stated that they go between all of the buildings and clean City Hall in the evening. Mr. Howard added that they are also the daytime drivers for the fire department.
Cemetery Department:
Ms. Garten explained that the salaries for the cemetery are paid out of the general fund and the revenues and expenses are out of another fund. Commissioner Skaggs asked how much was in the trust fund. Ms. Garten commented that it was about $300,000.
Street Department:
Ms. Garten stated that the salaries for the street department were paid out of the general fund along with special street projects.
Special Police:
Ms. Garten commented that this was an additional fund for the police department.
Industrial Development:
Ms. Garten stated that this was where economic development comes in. Commissioner Taylor questioned why we did not call this fund ‘economic development’ instead of ‘industrial development’. Ms. Garten commented that she could do that, because it was just a title.
Ms. Garten commented that transfers were made out of the general fund to the special streets reserves for the Main Street project in which our share was $250,000. Ms. Garten added that transfers to the capital outlays and donations were.
Ms. Garten commented that that was the end of the general fund and informed the Commission that the general fund was a tax levied fund and you can pay about anything from it.
Special Revenue and other funds:
Library:
Ms. Garten stated that this was the three mill levy that had been approved by the Commission earlier.
Commissioner Taylor questioned if it had gone down a little. Ms. Garten commented that you have to budget more than the three mill since you do not know what was going to come in, but it was approximately the same. Commissioner Taylor pointed out that last year they were at $126,831 and this one was at $118,000. Ms. Garten explained that it should come in at about $123,000 and that this figure was up to June 30th.
Cemetery:
Ms. Garten stated that this was where the lot sales and open/close revenues were. Ms. Garten added that expenses were paid out of this fund. Commissioner Skaggs questioned if the bill was sent to the mortuary and then passed on. Ms. Garten stated that it was in most cases.
Noxious Weeds:
Ms. Garten stated that this was weed control. Mayor Hlavachick questioned if we had sprayed the alleys yet. Mr. Howard stated that they had and also had sprayed the parks. Commissioner Taylor asked if anyone had noticed the bind weed this year and wondered if the County would help spray it or not. Commissioner Taylor questioned if the city would try to do this ourselves and have access to private property. Commissioner Taylor added that he had had one complaint about the bind weed. Commissioner Taylor commented that Mr. Rambat was going to try and go spray, but needed to wait until later in the summer. Mr. Howard commented that we do not usually spray on private properties and bind weed was not illegal. Commissioner Taylor commented that it was a noxious weed. Commissioner Skaggs commented that it kills everything else. Mayor Hlavachick added that it should be eradicated if found. Mr. Howard commented that if it is found in the parks we take care of it, but he did not think we should go on someone’s lawn. Mr. Howard added that that was up to the Commissioners, but we usually send people to the extension office. Commissioner Taylor commented that Mr. Jerry Berry would do it. Mr. Van Blaricum agreed. Mr. Howard commented that the County sprays their right-of-ways and their ditches. Mr. Van Blaricum stated that they would help spray if they got help paying for it.
Tort Liability:
Ms. Garten stated that tort liability was a reserve for just that. Commissioner Peltier questioned if there was any way to take money out of here. Ms. Garten stated that there was not.
Special Streets:
Ms. Garten stated that the ¼ cent sales tax was collected and spent in this line item along with the City/County highway funds from the State. Ms. Garten commented that the Fincham Street loan payments came out of here. Commissioner Peltier questioned how much longer we have on the payments. Ms. Garten stated that the loan would be paid off in 2013 and that the original loan amount was $510,000 and the outstanding balance was $204,000. Commissioner Taylor added that the City had actually done Fincham Street and the extension of Tenth Street with this loan.
Commissioner Taylor questioned if we were going to get to do Simpson Street, which was the road past D & R Trucking. Mayor Hlavachick commented that it had been discussed when Mr. Blake Himmelwright and Mr. Rod Seidel had talked to the Commission. Ms. Garten stated that she thought it was part of Mr. Rambat’s five year plan that had been submitted to KDOT.
Travel and Tourism:
Ms. Garten stated that this was the fund where the additional salary and expenses of $100,000 would be. Ms. Garten added that she had increased special City projects due to the Main Street project and possible increase advertising promotions.
Alcohol and Drug:
Ms. Garten stated that this fund would be closed out eventually since the court system does not generate funds.
Fire:
Ms. Garten explained that there was not much money left here due to the materials purchased for the new station.
Special Police:
Ms. Garten explained that these were motor vehicle forfeiture funds and are only dispensed for certain items. Ms. Garten stated that these funds will help purchase the mapping and aerial photo upgrade. Mr. Howard commented that these funds can be used as long as the police benefit from the purchase. Commissioner Taylor questioned if they can purchase vehicles from here. Mr. Howard stated that they can, but they do use it every year. Ms. Garten stated that these funds are used to purchase the equipment in the vehicles.
Commissioner Skaggs questioned what forfeiture funds were. City Attorney Van Blaricum answered that these were funds from informal police stops when the vehicle would be carrying drugs or drug money. Mr. Van Blaricum added that the person can forfeit the vehicle unless it is not worth more the $500 and in that case, we do not take it. Mr. Howard commented that a majority of the money was from a drug bust that was in the fund.
Risk Management:
Ms. Garten commented that this fund was closed in 2009.
Employee Health Insurance:
Ms. Garten stated that this fund was used when the City was self-funding, but the balance was being transferred to the general fund.
Bond and Interest:
Ms. Garten commented that this was a tax levied fund and that in 2009 the refunding was down, which helped the mill levy. Ms. Garten added that this fund services our debt.
Special Parks & Recreation:
Ms. Garten stated that this was a required fund by the State for a 1/3 of the alcohol tax revenues and it has to be spent on Park and Recreation. Ms. Garten commented that this could be where some of the money for the bike path would come from.
Special Alcohol:
Ms. Garten explained that this was a 1/3 of the alcohol tax. Ms. Garten commented that these funds came from chemical dependency; therefore, the money was disbursed to South Central Kansas Foundation for Chemical Dependency.
Enterprise funds:
Electric:
Ms. Garten stated that this was the adjusted revenue and expense that reflect reality and projected on historical data. Ms. Garten added that there were changes in the purchase power and generation costs.
Ms. Garten stated that the first section contained Mr. Hemphill and Ms. Mary Hammond’s salaries.
Ms. Garten stated that production was the power plant and distribution was the lineman. Ms. Garten pointed out that there was a budgeted increase in salary due to schooling to complete the merchant’s course.
Sanitation:
Ms. Garten stated that there were no changes in sanitation. Commissioner Taylor commented that there was money in equipment reserves for a new packer. Ms. Garten stated that there was an amount of $60,000 for that equipment.
Wastewater:
Ms. Garten stated that sewer rates were determined by the amount of water used in the winter months. Ms. Garten explained that equipment supplies were up due to the purchase of UV lamp and the utility easement at Rolling Hills. Ms. Garten commented that there would be a transfer to the general fund out of here for the first time in several years.
Commissioner Taylor questioned if there was a change of lagoons at the airport. Mr. Howard stated that there had been and that the sludge process was a better process. Mr. Howard added that he was concerned about how we would keep discharging if we blew the plant. Mr. Howard commented that we cannot pollute the Ninnescah River so we should do something now.
Mr. Howard stated that septic tank haulers should stop being able to dump since we do not know what we are getting. Mr. Howard clarified that it was not a good idea to allow unregulated dumping. Commissioner Taylor asked where they would go. Mr. Howard stated that there should be a dumping station.
Water:
Ms. Garten commented that this was where the revenue from the Ethanol Plant payment went and was used to service that debt. Ms. Garten explained that some funds would be allocated due to the purchase of an AMR reading system, a water quality study and to pay for the Maple Street project. Ms. Garten commented that they would continue to put back money for additional AMR equipment.
Mr. Howard stated that we had borrowed $1.2 million and if allowed, the City would think about replacing the water line in either direction.
Utility Deposits:
Ms. Garten commented that this fund was a wash. Commissioner Skaggs questioned if a customer ever gets their deposit. City Clerk Kramer commented that they can get it back after a year’s good credit or if they leave our service before that, it goes towards their balance due.
Park Improvements:
Ms. Garten commented that this was interest and donation to the park trust fund. Commissioner Taylor questioned if he had any plans for the money. Ms. Garten stated that he wanted to replace some of the play equipment in 2013.
Cemetery Trust:
Ms. Garten stated that this was also the interest and donation to the cemetery. Ms. Garten added that expenses are paid out of this fund after they are approved by the cemetery board. Ms. Garten commented that they have about $30,000 to spend each year.
Recreation Trust:
Ms. Garten stated that this was tournament gate proceeds and donations that are used for recreation improvements.
Sales Tax:
Ms. Garten stated that this fund was where the sales tax was collected and paid out, so it was a wash.
Reserve Funds:
Ms. Garten stated that these are required by bond instruments and have to maintain an amount.
Water:
Ms. Garten stated that there was nothing budgeted in this fund for 2011.
Electric:
Ms. Garten commented that this was where the electric revenue bonds were paid from.
Wastewater:
Ms. Garten stated that this was required by the bond instrument.
Water:
Ms Garten stated that this fund was also required by the bond instrument.
Capital Equipment Reserves:
Ms. Garten commented that this was where transfers from other departments were for equipment purchases.
Special Street Reserves:
Ms. Garten stated that this was the reserves for the Main Street project and where the money would be expended in 2011.
Capital Improvements:
Electric Maintenance Reserves:
Ms. Garten commented that this was the reserve fund for the electric department and was used for the deductible amount on any insurance claims.
Fire Fighting Reserves:
Ms. Garten stated that this was the fund where the truck lease payment we made along with some of the costs of the remodeling of the new station.
Discussions:
Budget Schedule:
Mayor Hlavachick questioned when the budget was due to the State. Ms. Garten stated that the budget has to go to the County by August 25th. Ms. Garten explained that she would make the changes that were discussed today, get it published ten days prior to the hearing that would be on August 16th.
Play Equipment for Hampton Park:
Commissioner Peltier commented that he would like to see some play ground equipment at Hampton-Pennock Park. Mayor Hlavachick commented that there was the walking path. Commissioner Skaggs stated that the park was not very centrally located. Commissioner Peltier stated that there were a lot of kids in that area and he felt that benches and play equipment would be a good idea. Mr. Howard commented that there may be money in the budget this year and he would look at that. Commissioner Peltier commented that he knew that the play ground equipment was not cheap. Ms. Garten commented that the equipment at Green Sports Complex was about $90,000. Commissioner Peltier commented that we could start out with starter equipment and then add to it later.
Commissioner Skaggs commented that the City of Pratt has more parks than most normal Cities and it would have to be trimmed and manicured. Commissioner Skaggs questioned what would happen to the play equipment once Haskins Elementary was closed. Commissioner Graf stated that he had heard that was purchased by grant money and could not be removed. Mr. Howard commented that he would not mind taking over the maintenance of the grass area, but was not interested in the building.
Maple Street addition:
Commissioner Peltier commented that he wanted to discuss the Maple Street addition in that he felt that the City should begin talking with the engineers about setting up the plat. Commissioner Peltier stated that the curb and gutter in the development area should cost about $88,000 and he wanted to see a fund set aside for that. Commissioner Peltier added that the engineers suggested that we put in the curb and gutter and when a percentage of the lots get sold, we would add them back on to specials. Commissioner Peltier commented that for $150,000, they could have the area ready to go.
Mr. Howard commented that he had had several requests concerning the lots that would be for sale. Commissioner Peltier stated that you cannot sell until there was some type of structure and site barriers on the south side. Commissioner Skaggs questioned which comes first. Mr. Howard stated that they have a plan that includes the utilities, road base and then curb and gutter. Mayor Hlavachick questioned if you have to have utilities under the road that would be built. Mr. Howard stated there would be, but it would not only be City utilities, but communications and gas.
Mr. Howard explained that the planned development would involve getting your underground work done and then build a dirt road, followed by curb and gutter. Mr. Howard clarified that there was a lot of work to do before curb and gutter. Commissioner Taylor added that there would also be a lot of expense. Commissioner Skaggs commented that he agreed that we cannot sell the properties if people cannot visualize it. Mr. Howard commented that we could put in a dirt road and then put in the utilities, because you can build on dirt.
Commissioner Taylor questioned how far out the plat was. Mr. Howard stated that it was months out. Mr. Howard explained that he would have to meet with Mr. Alan Luttrell from EBH Engineering and a surveyor, having done the work designing Maple Street, have to layout the utilities and make sure it is practical, so it would be next spring before there would be anything usable. Commissioner Taylor commented that 2011 budget was next spring and that was when Mr. Howard felt that the plat would be done. Mr. Howard commented that it could be done by November or December, but you were not going to be able to do much.
Commissioner Taylor questioned if there were any reserve funds that could be ear marked for this. Ms. Garten stated that there were funds in the capital improvement for unprojected things. Commissioner Skaggs asked if the platting would be the responsibility of the developer if there was one. Mr. Howard stated that it would, but it could also be that the City does it all, but it could go either way. Commissioner Peltier stated that if the City was going to develop the area, we were going to have to push it.
Commissioner Taylor asked what would need to be done to sell the lots and if that would that be by laws and covenants. Mr. Howard stated that the City does not do covenants originally. Commissioner Peltier commented that Mr. Luttrell had said that it would be the home owners that would enforce any covenants. Mr. Howard stated that he disagreed with that, because if we own the land, we are the developers and we would control the zoning.
Mr. Howard stated that zoning should be in place before the lots sell and any covenants have to be strictly enforced, but you can have either covenants or zoning. Mr. Howard explained that you cannot zone out manufactured homes in the City, but you can zone them out of a neighborhood. City Attorney Van Blaricum commented that more restrictive covenants can be more attractive to people looking to buy. Mr. Howard stated that if those covenants are not enforced, they were useless.
Commissioner Peltier commented that there were people asking questions. Mr. Van Blaricum commented that he could look at the zoning options and restrictive covenant options. Mr. Howard added that the Planning and Zoning Board should be involved in the process.
Sick Leave Policy:
Commissioner Peltier commented that the City presently has a sick leave policy, vacation policy and personal time off, which is based on longevity and worked days. Commissioner Peltier added that the vacation policy is use it or lose it and he would like to see employees be able to accumulate it. Commissioner Skaggs asked what advantage that would have. Commissioner Taylor commented that it would be too big an expense to do that.
Mayor Hlavachick commented that he liked the way the State allows you to accumulate sick leave. Mr. Howard stated that you can get paid for twenty days sick leave when you retire and it accumulates at one day a month. Commissioner Taylor agreed that it was good to accumulate sick time. Mr. Howard added that sick leave is the best insurance someone can have.
Commissioner Skaggs clarified that if you do not use your vacation time, you lose it. Ms. Garten commented that vacation time can be extended by the City Manager. Commissioner Skaggs asked if vacation time had to be taken two weeks at a time. Commissioner Taylor offered that he has employees do a week at a time. Mr. Howard stated that the City does not make them do a week or two at a time and that was working for us.
After little more discussion, Commissioner Skaggs commented that he did not see any reason to change it. Mr. Howard commented that he encourages long time employees to use their vacation time and not lose it. Commissioner Skaggs commented that employees need to take time off.
Payroll Information:
Commissioner Skaggs questioned where the individual payroll information was in the budget, particularly the City Manager’s. Ms. Garten stated that it was under the general fund for the City Manager’s budget. Commissioner Skaggs commented that the 3% salary increase would impact him more than anyone else. Ms. Garten stated that Mr. Howard did not always accept the increase. Mr. Howard commented that he had not asked for a raise in eight years.
After a short discussion, Mayor Hlavachick made a motion to go into executive session for thirty minutes to discuss non-elective personnel. The motion was seconded by Commissioner Peltier and carried unanimously.
There was a motion and second to return from executive session with nothing to report.
Comprehensive Plan:
Commissioner Taylor commented that the Comprehensive Plan was about to expire and questioned if there was going to be another one. Mr. Howard commented that he had visited with Mr. Blankenship about it and, with the changes to the five year plan, it needed to be done. Commissioner Taylor commented that he would like to see community involvement. Commissioner Taylor explained that the Maple Street extension had been in the plan for twenty-five years and if the citizens had been at those meetings, they may not have been against it this time.
TV Station:
Commissioner Taylor questioned what it would take to have a TV station with Cox so that our meetings were televised. Mr. Howard stated that he thought that was part of the franchise, but we would have to pay for the costs of the camera. Mr. Howard commented that he would visit with Mr. Reynaldo Mesa and see what it would take.
ADJOURN:
A motion by Commissioner Peltier to adjourn the recessed budget session. The motion was seconded by Commissioner Taylor and carried unanimously.
_______________________________________
BILL HLAVACHICK, Mayor
(SEAL)
ATTEST:
______________________________________
LUANN KRAMER, City Clerk
JULY 19, 2010
The Governing Body of the City of Pratt met in Recessed Session in the Commission Room located in City Hall.
PRESENT: Bill Hlavachick Mayor
Jeff Taylor Commissioner
Willie Peltier Commissioner
Victor Graf Commissioner
Gary Skaggs Commissioner
ALSO PRESENT: Dave Howard City Manager
LuAnn Kramer City Clerk
Ken Van Blaricum City Attorney
Diana Garten Finance Director
CALL TO ORDER:
Mayor Hlavachick called the recessed meeting to order. The Mayor instructed the Clerk to note that all the Commissioners were present with the exception of Commissioner Taylor, who was running late.
BUSINESS:
2011 BUDGET WORK SESSION:
City Manager Dave Howard informed the Commission that this was a balanced budget and that the goal was to have the expenditures meet the revenue. Mr. Howard commented that there are topics to be discussed later, but that anything can be added to be discussed. Mayor Hlavachick commented that he had an appointment at 1:00 p.m. and Commissioner Peltier also had an appointment at 11:15 a.m.
Finance Director Diana Garten commented that they would begin with the budget highlights. Ms. Garten informed the Commission that the process started early in May when she gives out budget sheets to the department heads and they have a month to think about what they need or want. Ms. Garten commented that the sheets have to be back in June and she begins to put the proposed budget together to see what they need to run the department, but nothing was set in stone and can change. Commissioner Skaggs questioned if there was a State statute that says that the budget has to balance. Ms Garten stated that there has to be cash available and there has to be authority from the Commission to spend that cash and there has to be a positive balance at the end of each fund. Mr. Howard added that you cannot spend what you don’t have. Ms. Garten stated that the revenues equal expenses and there was to be a cash reserve at the end. Ms. Garten explained that this is a balanced budget, because it comes in positive. Mayor Hlavachick commented that input through the chain of command to develop the budget was a better process.
(Commissioner Taylor arrived-8:07)
BUDGET HIGHLIGHTS:
Ms. Garten commented that this was an informal session so the Commission should feel free to interrupt anytime. Ms. Garten stated that this section were items that were pulled out of the budget that were significant. Ms. Garten explained that the 2011 budget was approximately $26,000,000 and it did include a 3% salary increase as calculated in the budget last year, but with the economy the way it was, she would figure in whatever they wanted her to do. Commissioner Peltier questioned if the insurance was included in that $189,000. Ms. Garten stated that it was an additional $110,000 and the salaries were $189,000 including social security, Medicare, unemployment and KPER’s. Ms. Garten added that out of the $189,000, $90,000 was in tax levied funds and $99,000 was in the City’s enterprise funds which were electric, water and wastewater. Commissioner Taylor questioned if the $90,000 in tax levied funds meant that the employees were paid out of the general fund. Mr. Howard stated that the work in the electric and water and wastewater departments are where they get paid from and it has to be run like an actual business. Commissioner Taylor questioned if they carry themselves. Mr. Howard stated that they do, but sanitation is the only department that is marginal. Mayor Hlavachick commented that the employees do a fine job, so he saw no reason to change the cost of living increase. Commissioner Peltier commented that the cost of living was at 3.5 % to 4% in 2010. Commissioner Taylor added that 2011 would be higher with inflation also being higher. Ms. Garten commented that the indicators were that things were getting better. Commissioner Peltier commented that construction goods, paint and carpet were going up and shingles were crazy. Commissioner Peltier questioned Commissioner Skaggs on how the hardware business was going. Commissioner Skaggs stated that hardware was pretty flat, sales were down somewhat, but the cost of goods had held their own.
Mr. Howard commented that sales tax was off 13% from last year, but he had been expecting a decline the last two years. Mr. Howard added that you have to take into consideration that the best retail months are summer and the holiday season. Commissioner Peltier commented that sales tax was higher pre-Greensburg and then it went down because buying cars went down, hardware and lumber sales were down, so sales tax went down as well. Mr. Howard commented that Greensburg get far too much credit as there was also the wind farm and the Ethanol Plant being built then. Ms. Garten commented that she was not sure if the State sales tax going up one percent would have an impact on people’s spending and that it was a stigma in people’s minds. Mr. Howard commented that the Commission could decide on the salary increase after they had gone through the budget.
Health Insurance:
Ms. Garten stated that the health insurance was going to increase and she had provided the Commission with the premiums. Commissioner Taylor questioned what the employee was paying for a family policy. Ms. Garten stated that it was a little less than 20% and we were paying for all of a single premium, but that can be changed. Mr. Howard commented that the scary thing was that the new government things passed could mean major changes in health care. Mr. Howard explained that the Blue Cross Blue Shield representative had said that as long as you do not change your plan, then you do not fall under the new regulations, so we would be better off leaving it as is. Mr. Howard added that you can improve on your plan, but you cannot take anything away. Commissioner Skaggs questioned if there were any written rules concerning the employees’ insurance. Mr. Howard stated that there was not, but the County pays 100% of their employees’ insurance. Commissioner Skaggs asked what determined the 18%. Ms. Garten stated that it was something that came about at budget a few years ago. Commissioner Peltier commented that we could give the employees the 3% salary increase and pick up the difference in insurance premiums. Mr. Howard commented that insurance had gone up 9% last year and it was up 13.7% this year. Commissioner Peltier commented that a 13% increase for insurance and 3% salary increase makes for a nice benefit.
Miscellaneous:
• Workman’s Compensation, sales tax, valuations:
Ms. Garten informed the Commission that workman’s compensation had gone up in 2010 and sales tax had gone down as had been discussed earlier. Ms. Garten commented that the mill levy was calculated at a flat 42.9, which was the same as last year. Ms. Garten explained that she had to transfer funds from the electric utilities, sanitation and wastewater to the general fund and that the proposed valuations were up this year. Ms. Garten commented that the valuations occasionally change due to an appeal, but this was the best estimate given by the County Clerk. Commissioner Peltier questioned if this would bring in more money. Ms. Garten stated that it should bring in about $42,000 more than last year.
Mill levy:
Commissioner Peltier commented that the City was ranked thirty-eight out of sixty second class cities. Mr. Howard stated that the city had cut twenty percent on the mill levy. Commissioner Peltier commented that the County was number two. Ms. Garten explained that the revitalization program was down. Mayor Hlavachick commented that people said that we were the highest taxing County. Mr. Howard clarified that Pratt County was in the top ten, but he did not think that they were number one or two. Commissioner Peltier commented that we do have the college below us.
Ms. Garten stated that there was a mill levy comparison with the top section being the City, the third section was the valuations and the bottom section was the ad volerum taxes that the City has generated off of the mill levy over the years. Ms. Garten explained that the taxing entities stayed about the same with the County going from thirty-one to thirty, the college being about twenty percent, the school was at twenty-seven and the City went from twenty-two percent to twenty-one percent. Mayor Hlavachick stated that things had stayed pretty steady and that the City had decreased its mill levy the last several years. Mr. Howard commented that they did not use the valuations as a guideline since those amounts had been cut. Commissioner Peltier questioned if we had cut the mill levy due to the appraisals going up. Ms. Garten stated that expenses were going up along with fuel and labor costs and it was hard to cut the mill levy if you are only bringing in so much money. Ms. Garten pointed out that the City has a $26 million budget and only collects $1 ½ million in taxes and the rest is from other resources such as sales tax, alcohol, guest and gas taxes, recreation charges and utilities. Commissioner Peltier commented that we were thirty-eight out of sixty and the County was number eight. Commissioner Peltier commented that Northern Natural taking over those wells would hurt the County and the college, but not us. Ms. Garten stated that was correct and that it did not hurt our valuation. Mr. Howard commented that the college has something to do with that since most do not have a college to support. Commissioner Taylor commented that we do have as big a tax base as some. City Attorney Van Blaricum commented that Seward County was about the same as ours. Mr. Howard explained that if you pull twenty percent out from the college, the County was not that far out and the college was what made us look like we have higher taxes.
Fuel Cost:
Ms. Garten stated that the fuel cost budget was based on prices stabilizing and that they had budgeted $5 per gallon last year and $6 the year before.
Main Street project:
Ms. Garten commented that the Main Street project was added into this budget and also the $100,000 cost for engineering services. Commissioner Taylor questioned if anyone had been through Hoisington where they had just cut a path down the middle. Commissioner Taylor added that it was nice and that it does not look bad and was smooth.
Ms. Garten stated that it was in the five year plan that Public Works Director Russell Rambat and Mr. Howard put together to do something of that nature on the rest of Main Street. Mr. Howard added that it may also be part of North Main Street south of the railroad tracks. Commissioner Taylor questioned if that was something that we could do ourselves. Mr. Howard stated that our labor force did not have the man power or the skill level to handle that type of project and even though we would not have to survey it, he would not recommend it. Mayor Hlavachick questioned if Hoisington had put in all new brick. Commissioner Taylor stated that they had not, but they had been torn up for awhile. Commissioner Peltier asked if the State required us to tear out the bricks. Mr. Howard stated that they would fund us the $850,000 in grant money, but you would have to pay for if you wanted to go back with brick Mr. Howard explained that you have to have a surface they approve of or you pay an additional cost and it would also take more time to put bricks down where a concrete base should go down fast. Mayor Hlavachick commented that Hoisington probably has less truck traffic than we do. Commissioner Taylor commented that there are a lot of oil tankers and cattle trucks that go through on Main Street.
Ms. Garten informed the Commission that we had lost $25,000 in city/county highway funds in 2010, but hopefully will not lose anymore in 2011 with the 1% State sales tax increase.
Electric Fund:
Ms. Garten commented that they had realigned the electric fund that was $28 million last year and $26 million this year due to decreasing revenues to more actual and decreased the purchase power in natural gas expenses. Mayor Hlavachick questioned what percent of that went to the general fund. Ms. Garten answered that it was usually $600,000, but this year it would be $685,000.
Economic Development:
• Budget Increase Requested:
Commissioner Skaggs questioned the increase in economic development. Ms. Garten stated that they had increased their budget by $60,000. Commissioner Skaggs questioned what they were doing with those funds. Mr. Howard stated that they help with major projects like BTI, the dentists, hotels, and the Blythe Foundation. Mr. Howard added that the City has probably done more economic development than the ED Board and he was trying to shift it so that they were in sync together. Commissioner Skaggs questioned if the formula was that the City, County and ED puts in funds. Mr. Howard stated that the County raised their donation to $70,000 as did the Chamber, but the City did not. Mr. Howard added that the economy was recovering and he did not disagree with that, but you can double your efforts to stimulate it or stifle it. Commissioner Peltier questioned if $60,000 was in our coffers and we can dictate where it needs to go. Mr. Howard explained that the ED board is involved in BTI at the airport, but the City is not except that using ED money to extend the water and fire service lines. Mr. Howard was asked if he attended the ED board meeting. Mr. Howard stated that he had missed one meeting. Commissioner Skaggs asked who the City members were. Commissioner Taylor answered that the City had two members, the County had two and the Chamber had one. Commissioner Skaggs asked if there should be a Commissioner on the board if we were going to be the major contributor. Mr. Howard commented that that was a good idea. Commissioner Taylor commented that the board members appointed by the City were Mr. Paul Olsen and Mr. Kevin Hamm. Commissioner Skaggs questioned what would happens if we double our contribution and the County cuts back because of the loss of revenue due to the gas field situation. Mr. Howard commented that most of real economic development happens because of City with the ED board being part of that. Mr. Howard added that the County contributes, but does not have much commercial growth, including BTI, which was in the City limits.
Commissioner Graf questioned what dentist we gave to. Mr. Howard answered that it was Dr. Hopkins who was taking over Dr. Ingram’s office. Commissioner Taylor commented that he was doing a remodel and had hired about three more people. Commissioner Graf commented that he could not remember giving to Dr. Hopkins, but did remember giving to Dr. Chris Polk. Mr. Howard agreed that the ED board had helped Dr. Hopkins, not the City.
Sanitation:
• Tipping Fees:
Commissioner Taylor questioned if we had gotten a feel from the County concerning the sanitation tipping fees. Ms. Garten stated that she had not heard that they were changing. Mr. Howard commented that they had raised them last year and they usually forewarn us. Commissioner Taylor commented that we were their cash cow in that area. Mr. Howard commented that we pay them $29,000 in tipping fees a month. Commissioner Skaggs asked if we collect mainly City trash. Mr. Howard answered that we pick up trash for old accounts in County, but no new accounts were being added.
Water Fund:
• Plug and Remove two wells:
Ms. Garten stated that in the water fund Superintendent Kelvin Clay had budgeted to plug and remove two wells that have been abandoned since the 1990’s. Ms. Garten added that the wells contained high nitrates and carbon tetrachloride and it should cost around $15,000 to do both. Ms. Garten commented that the water department also wants to finish up the water main project along Maple Street and that this was not in connection to the Maple Street project, but one that they have been working on for several years.
• Water Quality Study:
Ms. Garten commented that another big expense would be a water quality study that would cost about $35,000, which would access the remaining wells to see where the nitrate levels are. Mr. Howard stated that the City has a slow increase in nitrates in all of the wells and the one near the swimming pool is a major drainage area and those wells in that vicinity were affected. Mr. Howard commented that an underground hydraulics system would follow and the topographical features of the surface would determine how the underground was working. Mr. Howard added that he had called KDHE when he first got here and complained and the State did not want to talk about it. Mr. Howard stated that the feedlot was a major contributor to this. Mr. Howard explained that they would be looking at the study and since there were nitrates concentrating there, we may be able to relocate the wells. Commissioner Taylor questioned if we had thought about relocating them south of the river and we may have to start getting water as far east as the drainage ditch. Mayor Hlavachick commented that the nitrate flow was only going to increase. Commissioner Skaggs questioned the purchasing of land for future development. Mr. Howard commented that we would look at the study and see what could be done. Mr. Howard commented that if the State were to recognize this then we would go after funding.
Mayor Hlavachick asked if we would have to apply for a permit to drill in another area when the wells were abandoned. Mr. Howard commented that the location of the well would be changed, but we do not need to do this one at this time. Mayor Hlavachick commented that there had been money put into a feasible study on a potential reservoir near Elm Creek around Medicine Lodge, because Attica was running out of water. Commissioner Taylor added that this study would help those efforts if we need to look at it down the road. Mr. Howard agreed that it could be the solution and that they did have a meeting tomorrow. Commissioner Peltier questioned if they would want more money. Ms Garten commented that we were committed to three years.
Public works:
• Upgrade mapping system aerial photos:
Ms. Garten commented that Public Works Director Russell Rambat, Director of Electric Utilities Kelly Hemphill and Building Inspector Brad Blankenship would like to look at an upgrade of the mapping systems aerial system. Ms. Garten explained that this was a costly upgrade of about $60,000 but they were hoping to share the expense with the County. Ms. Garten added that Mr. Rambat had visited with Mr. D.J. McMurray at the County and they have agreed to pay for half of the project.
Wastewater Department:
• Clear Utility Easement behind Rolling Hills:
Ms. Garten explained that the major project for the wastewater department would be to clear the utility easement behind Rolling Hills Addition. Ms. Garten commented that the line was in the County, but we need to maintain the easement since it is overgrown and this would make it easier to get to.
• Sludge Handling:
Mr. Howard commented that the wastewater department would also be looking at the sludge handling facility. Mr. Howard explained that the City was earmarked to get a 40% grant to help build that facility, but we have to submit the application before September. Mr. Howard added that the engineers estimated total cost was on the high side at $1,642,000, but they forgive 40% of that and the loan interest rate is at 2.61%. Mr. Howard commented that the wastewater department had been putting away money for the last four or five years for this project.
Mr. Howard explained that when you are hauling sludge, you are hauling 92% water and when it rains or snows you cannot get out in the fields, which can cause an overload on your wastewater system. Mr. Howard added that that was happening more often, but not where we go out of compliance with the NPDS permit. Mr. Howard stated that it is becoming a big issue due to the development downstream of our plant at the Wiildlife and Parks and the lake. Mr. Howard added that if you violate the permit, there are major consequences. Mayor Hlavachick commented that people do not want it anymore. Mr. Howard explained that this system would dry the sludge, bag it and haul it to the landfill.
Mr. Howard stated that he would suggest that the City go ahead and submit the application since it would not obligate us to do it. Mr. Howard explained that he would need a special call meeting on the 23rd of August to approve a resolution to commit to it, Mr. Howard added that if we were awarded the loan, that was when they would make the decision on whether they wanted to proceed and reminded the Commission that 40% of the loan was forgiven. Commissioner Taylor questioned if this was something that could be utilized by other wastewater systems in the area and charge them for dumping their sludge. Mr. Howard commented that almost everybody has lagoon systems and those have to be dredged once every twenty years.
Mr. Howard commented that another option would be to go out and purchase land that we apply the sludge to, but we would have to buy a pretty big piece of land. Commissioner Peltier questioned if it could be dumped at the dump. Mr. Howard answered that you cannot dump the water and the way it was done now was 92% water. Mr. Howard commented that you basically dewater it and use the sludge in the wastewater process. Mr. Howard explained that a wastewater system has microbes that eat the organic waste and anything that is not organic is broken down somewhere in the process and the sludge that you have is actually part of the process. Ms. Garten commented that they have known that the sludge handling was going to be an issue and they have close to $700,000 saved up.
Mr. Howard stated that with the low interest rate being offered, we should consider using that and using the money saved up to service the debt. Mr. Howard added that a 2% interest rate is not heard of. Ms. Garten added that it would be foolish to not take advantage of that. Commissioner Peltier questioned if you pay interest on 100% of the loan amount or the amount after they forgive the 40%. Mr. Howard answered that they immediately forgive 40%, so the interest would be on 60% for ten years. Mr. Howard stated that with the money already set aside; this would not result in a rate increase. Mayor Hlavachick questioned if there was room to build the facility. Mr. Howard stated that there were some old trickling filters where it would go in there and possibly convert the building that houses the septic truck and vacuum truck and then build a new building.
Discussion Topics:
• Main Street project:
Ms. Garten stated that the Main Street Project figures were estimated in the beginning and the waterline came in lower. Mayor Hlavachick questioned when the water line project would get started. Mr. Howard commented that there was an August 17th meeting with the public to let them know that the bid was awarded to APAC Shears. Mr. Howard explained that the start date was not the concern, but it was the end date so that they were done before the holiday season. Mr. Howard thought that they would start in late August and finish in October, but there was the Miss Kansas parade, the sidewalk sale and APAC had another job, so it kicked it off into August. Mr. Howard stated that they should be done in October and the only issue they see is where they tie in the lines that run on Second Street, Third Street and Forth Street that tie into public water lines. Mr. Howard added that the big issue was when we start the surface next year.
• Donations:
Ms. Garten commented that the next section was the donations given by the City. Ms. Garten stated that the City gives the Humane Society $1,000 per month and $6,000 on their utilities each year and their contract was up for renewal at the end of the year.
Commissioner Peltier questioned if the City should have a fund for people who come to the Commission with their hands out. Commissioner Taylor commented that we would run out of money early. Mayor Hlavachick commented that he would like to continue to look at them on a case by case basis.
Commissioner Taylor asked how Chief Holmes felt about dealing with the Humane Society. Mr. Howard commented that there was a continuous problem with them providing space and the reason they were given the donation and utility allowance was so they would provide us with a service. Mr. Howard added that the problem was not during the day, but an after-hours problem when we want the police officer to put the dog in a pen and leave. Mr. Howard explained that our issues are our people and theirs are the animals. Mr. Howard added that if there is a complaint, we have to address it and the officers have instruction that if there is no room at the Humane Society they are to take the animal to Dr. Skaggs. Commissioner Taylor asked if we have a key to Dr. Skaggs so that we can just leave the animal. Mr. Howard stated that we do.
Mr. Howard stated that the issue is that they are not providing the service they are contracted to do. Mr. Howard commented that every time they get a new manager, they blow the contract off until they get a short check and then it becomes an issue. Commissioner Skaggs commented that euthanizing was the issue and it was very sensitive and emotional to them. Mr. Howard stated that he was sympathetic, but we have to look out for the interest of the people. Commissioner Taylor commented that we need to be more restrictive, not less and maybe look into charging mileage.
Mr. Howard stated that at this stage, they will have room because they have a new manager that has been made aware of the issue. Mr. Howard added that in 2008 and 2009, the City never took a dog to Skaggs, because Mr. Mike Hill got it and there was space available. Commissioner Skaggs commented that it looks like it was their responsibility in the contract. Mr. Howard agreed and stated that they are supposed to keep pens available. Commissioner Taylor repeated that the City should firm up the contract and maybe have a $50 charge for police time if no pens are available. Commissioner Skaggs questioned if they would do this service for us if the contract was too restrictive. Mr. Howard commented that we could go out for bids and get this service for less money. Commissioner Taylor added that that would save the citizens money. Commissioner Peltier commented that the Humane Society would go broke without this contract. Commissioner Skaggs commented that they provide a public service, so the City should leave it like it is, but add to #6 that it is their responsibility to notify the police department if there is no room. Commissioner Taylor added that there should be a fee if they do not notify us. Commissioner Peltier commented that he was not against a fee, but do $5 or $10. Commissioner Taylor commented that a $25 fee would give it more teeth and would make them do what they should.
Mr. Howard stated that keeping a manager was the problem and that it does work as long as we have another resource to fall back on, but it is frustrating when they make those claims. Commissioner Taylor commented that he had no problem forwarding a copy of the bill on to them. Mr. Howard added that the City cannot respond within three days with an invoice and it may be a 45 day delay since Dr. Skaggs bills out at the end of each month.
Mr. Howard stated that the problem had been corrected about 3 months ago, but now the board was involved. Commissioner Taylor commented that the right of notification was on them.
• American Legion:
Ms. Garten stated that another donation was to the American Legion. Mr. Howard stated that he had had a conversation with Mr. Rick Wittig and they are going to put more of an effort into keeping up the building. Commissioner Taylor commented that they have internal problems and the Riders need to meet with the people at the Legion and some of that money from the Riders should be going back into the American Legion since they use their name. Commissioner Taylor added that he had found out from some long time members that they were ashamed about Mr. Wittig coming in so many times and using the trump card of being a veteran and putting their life on the line. Commissioner Taylor added that he felt they fill a viable part of community and wants to support it, but there comes a point when the veterans need to come forward and keep it going. Mr. Howard stated that it sounded like they were going to make an effort to do better and they must be doing something since the building did not look that horrible.
• USD 382 request for relief:
Ms. Garten stated that the next topic was a request from USD 382 for relief on their utilities. Mr. Howard stated that he had visited with Dr. Davis and he wanted to know where the City was at on the issue.
Mr. Howard explained that we started receiving the GRDA in June, but were not supposed to get it until 2013 so we were not counting on it until it was delivered. Mr. Howard commented that, in analyzing the schools’ utilities, they have gone up and it was not because of rates. Mr. Howard explained that bills are coming down due to fuel adjustments coming down and the fact was that they have a new school and did not close down the old one. Mr. Howard added that a big building had higher utilities, but Director of Electric Utilities Hemphill, Energy Agent Kreutzer and himself had looked at moving them to another class and the cheapest rate was the industrial rate, which could give them a $60,000 to $70,000 savings. Mr. Howard explained that the weather had the biggest impact on utilities and we would basically be giving them their electricity. Mr. Howard stated that the City has to make a ‘profit’ to maintain and that involves maintaining the plant and the employees. .
Commissioner Skaggs questioned what rate the school was in now. Mr. Howard stated that they were in the commercial rate and that at a certain level, the more you use the less it costs. Mr. Howard explained that the biggest thing we could do would be to put them in the industrial rate, but they do not fit that according to the ordinance. Mr. Howard added that they would pay a cheaper rate, but they would get a demand charge, which means that if they operate machinery or have a huge draw on electric, they have to pay more due to the stress on the system. Mr. Howard commented that a demand charge was figured on usage and not an impact on school. Commissioner Peltier questioned if they use air conditioning in the summer. Mr. Howard stated that their bill jumped up in August, but he was not sure what they were cooling. Commissioner Graf commented that they do keep the gym cool due to summer activities. Mr. Howard stated that there is not a huge history since they have only been there three years. Commissioner Skaggs commented that they may not be able to separate the air conditioning.
Commissioner Skaggs commented that the $60,000 to $70,000 savings they would have if they were put on the industrial rate would come out of our coffers, but questioned if they would qualify as an industry. Mr. Howard stated that the college was put on the industrial rate years ago, but their usage is significantly larger than the high school. Mayor Hlavachick questioned what the ordinance said. Mr. Howard stated that the industrial customer’s definition could be set by the Commission using the college as precedence. Mayor Hlavachick asked what defense the college had when they were put at the industrial rate. Mr. Howard answered that that was a long time before he came. Commissioner Peltier questioned if they were being good stewards of their electricity. Mr. Howard stated that he could not answer that. Commissioner Peltier commented that it would be irresponsible to be cooling the old high school if they are not using much of it. Commissioner Graf stated that there were air conditioning units in each room at the high school. Commissioner Peltier asked if they were using the old high school. Commissioner Taylor commented that the superintendent’s offices were there. Commissioner Skaggs questioned if the new and old high schools use as much electricity as the college. Mr. Howard stated that they do not and that the old high school uses less electricity, but was not significant enough to offset the new building. Commissioner Graf commented that they burn a lot of lights at night in the new building. Mayor Hlavachick questioned if that was not done to prevent vandalism.
Mayor Hlavachick questioned the usage at Haskins Elementary and Southwest Elementary. Mr. Howard commented that those usages were not as significant. Commissioner Taylor commented that Haskins Elementary would be obsolete in a year. Mr. Howard commented that Haskins Elementary drops, as all do, except the new high school. Mr. Howard added that that was what the City had anticipated for all buildings. Mr. Howard explained that the new school used 26,000 in January of 2008 and 30,000 in June and in 2009 it went from 79,000 to 94,000 in July. Mr. Howard stated that he was not aware of the summer activities in the building and he knew that the air conditioning was computerized, but did not know if they could change it for each room.
Mayor Hlavachick questioned if Mr. Howard had received any other information from Dr. Davis. Mr. Howard stated that he had not gotten into too much detail but, hopefully they had made as many changes as they could before making the request. Commissioner Hlavachick questioned if the City would break even if the school was put on the industrial rate. Mr. Howard stated that it would be a rough estimate since they had not been there long enough to see a trend. Mr. Howard explained that the industrial rate was at 6.8 cents per kilowatt and GRDA drops it down to .06 cents. Mr. Howard commented that he would be doing a rate analysis with Mr. Kreutzer, Mr. Smith and Mr. Hemphill.
Commissioner Skaggs questioned if we need to have a light industrial rate or a heavy commercial rate so that we do not cut ourselves to the quick. Commissioner Skaggs also questioned if the school would ask for a mill levy increase if we do not do this for them. Commissioner Taylor commented that they have increased the mill levy for other things. Commissioner Skaggs commented that we have to run the City so that it does not just break even and look out for our own or help the school system. Commissioner Peltier commented that there is a lot to be said for the hospital, college and school since they employ a lot of people and provide a lot of feed back to the City in the purchase of food, fuel and renting of property.
Commissioner Taylor questioned if there was any chance of losing them to another provider. Mr. Howard stated that there was not, because no one could infringe on our territory. Commissioner Taylor commented that, at one time, there was talk of wholesale wheeling and the only thing we could get back from that was a transmission charge. Mr. Howard commented that Ninnescah Rural Electric and Southern Pioneer’s rates are cheaper, but when you are buying city electric you are paying for backup generation. Mr. Howard added that Ninnescah Rural Electric does not have that, but Southern Pioneer does have it through Sunflower Pioneer. Mr. Howard commented that when Ninnescah got knocked out during the ice storm in 2007- we had some of their customers want on our power and they were willing to pay for the City’s electric since they would also be paying for backup generation. Mr. Howard added that during the tornado we would have been out a week if we had not had our own generation. Mr. Howard explained that electricity was cheap when you do not have it so ours may be more expensive, but it is worth it and we do provide the service. Commissioner Taylor commented that Ninnescah does not provide lights for the City, so if you have a light on a pole, you are paying for that. Commissioner Taylor added that the whole City has light and if the City pays for it, the customer pays for it. Commissioner Taylor stated that if the customers want rates like Ninnescah, the City could turn that off.
Getting back to the school subject, Commissioner Peltier commented that if you cut the revenue from the school by $60,000, you have to make cuts somewhere else. Commissioner Taylor commented that we could give them a percentage off to help them out and also encourage them to have a study done with the money they save that would show them how to save, such as putting lights on timers. Mr. Howard stated that the other thing we need to keep in mind was that if we do that, then we would have the hospital in here. Commissioner Skaggs questioned if the college was the only one who was already getting a cheaper rate. Mr. Howard stated that they were and he commented that when you get into subsidizing your utilities, it is a never ending thing. Mayor Hlavachick commented that he was not ready to do anything until we know what they are doing or if they are making an effort. Commissioner Graf suggested that the Commissioners take a walk through the school and then we would know what they are currently doing. Commissioner Skaggs questioned if the school was waiting for a response from the one letter that was received from Dr. Davis. Mr. Howard commented that he had not heard anymore, but with changes in our electrical issues, we should wait and analyze the impact of GRDA. Mr. Howard explained that, at times, six megs is almost our whole load and now it would be at 20% to 22% of our load. Mr. Howard commented that the fuel adjustment was set by ordinance and any electricity that we buy over three cents needs to be charged a fuel adjustment. Mr. Howard added that three-cent electricity is ridiculous and you cannot get it in market pricing. Mr. Howard stated that he would propose a change in the ordinance from ‘fuel adjustment’ to ‘energy cost adjustment’ and that would raise it from three to five cents. Mr. Howard clarified that that was not a rate increase, but it would only charge a fuel adjustment on any electricity over five cents. Mr. Howard added that that would take our fuel adjustment back to one-cent and that would mean that there would be no fuel adjustment on the GRDA or on the cheap market value.
Commissioner Peltier questioned if the consumer would be charged less. Mr. Howard commented that they have been ignoring the ordinance since there is no such thing as three-cent electricity and have been averaging the fuel adjustment. Mr. Howard explained that the fuel adjustment is the price of natural gas and if done month to month that could mean that one bill would be one-cent and the next ten cents, but, in averaging some months, we are charging more than we should and putting it away and in the summer months we use that up. Mr. Howard stated that what this would do is develop a floating reserve of about half a million dollars and we would be able to charge one or one and a half cent fuel adjustment all the time regardless of the natural gas price.
Commissioner Skaggs questioned what this had to do with USD 382. Mr. Howard explained that this could make their bill come down a lot as a big user and the fuel adjustment being figured on usage, but the ordinance had not been drafted yet. Commissioner Peltier commented that he was not enthusiastic about dropping the school below cost or taking a percentage off, but would rather have them dropped a level and still be profitable. Commissioner Taylor commented that his intent was to drop a percent and put them in an educational big user level. Commissioner Skaggs stated that the hospital generates revenue and the schools do not and he would like to see them at a level where we can help, but not go down to cost.
Mr. Howard commented that the school wanted immediate relief, but with the changes in the last year, there was not enough time to see what impact it was going to have. Commissioner Peltier made a motion to table the school issue until there is further information. Mr. Howard commented that GRDA was going to help, but he was not sure that it was going to be big enough to notice. Mr. Howard stated that the electrical system has to be run like a business and the stronger a utility is, the more it is worth, so we are not hurting ourselves by reinvesting money in the service. Mr. Howard explained that there is a lot of the electrical system that can be insured, but poles and transformers cannot be insured and that can take a hefty portion of our cash reserves, so you have to have money in your electrical system. Mr. Howard added that if a transformer blows it could be $1,000,000.
Mayor Hlavachick stated that there was a motion to table the USD 382 discussion. The motion was seconded by Commissioner Graf. Mr. Howard commented that you need five to ten years to analyze the trend in the electrical utility. Commissioner Taylor questioned if the consensus of the Commission was that we wanted to try and help them. Mayor Hlavachick stated that it was. Mr. Howard added that the City helped out the new school by replacing the electrical line to the school at our cost, so we do have an investment in the school already. Commissioner Taylor questioned if that was about a quarter of a million dollars. Mr. Howard stated that it was. Commissioner Peltier commented that help may be on the way by the way we are buying electricity. Mr. Howard stated that it was going to help, but this was a hot summer. The motion on the floor was voted on and passed unanimously.
• Sunflower H2O:
Ms. Garten reminded the Commission that they had agreed to commit $57,000 over three years to the Sunflower H2O project and we had paid $18,876 in 2010 and would again in 2011. Mr. Howard stated that they were now forming a legal entity so that they would be able to deal with government agencies such as the Corp of Engineers. Mr. Howard commented that the City needs to have a seat on that board so that we can watch where our money goes. Mayor Hlavachick stated that the project has great potential.
• Industrial Park:
Ms. Garten commented that we were ready for phase two at the Industrial Park. Mr. Howard commented that there was one lot left to sell and it had been a lot split where TR’s building was. Mr. Howard stated that if the interest was there, it would need to be plated so the lots could be developed. Mayor Hlavachick questioned if that was forty acres. Mr. Howard stated that he thought it was. Commissioner Peltier commented that since the first phase was full, the City should be looking at doing the other.
• Maple Street:
Ms. Garten commented that Maple Street should be completed in 2010, but things could come up in 2011. Commissioner Taylor questioned if real estate development was a road or electric and what our portion was. Ms. Garten stated that it was whatever happens or whatever the Commission decides to do.
• Economic Development:
Ms. Garten stated that there had been some discussion about a promotional planner for Economic Development. Mr. Howard commented that it was something that had been talked about for two or three years. Commissioner Skaggs asked if this was the Chambers dual hat. Commissioner Peltier commented that this was something that he had been interested in and it would not be under the Chamber. Commissioner Peltier stated that this person would be in charge of getting other events to come to Pratt besides what Recreation Director Pinkall does for the Sports Complex, such as chess, 3 on 3 basketball, quilters or power lifters. Commissioner Peltier commented that you could bring in a hundred competitors, which would in turn bring in four hundred with family members and they would fill our hotels and eat in our restaurants. Commissioner Peltier added that this person would be under the City Manager.
Commissioner Taylor questioned how much money was in the tourism budget. Ms. Garten stated that there was $300,000. Commissioner Taylor commented that that money could be used to promote those types of events. Commissioner Taylor stated that that would generate more funds in tourism and you do not have to build bigger hospitals or schools, because these people come to town for the event and they spend money plus they talk good about you. Commissioner Taylor added that Mr. Pinkall had told them that this was one of the nicest facilities and they could let their kids go to the pool and not have to worry about them. Commissioner Peltier commented that the Blythe Foundation would be able to handle these events.
Commissioner Skaggs questioned where you find this type of person and what they would cost. Mr. Howard stated that you would want to find someone with marketing skills. Commissioner Peltier suggested putting them under a base salary and give them a piece of the entry fees to keep things coming. Commissioner Taylor questioned if their salary would come out of tourism. Mr. Howard stated that it could.
Mr. Howard stated that Mr. Pinkall would be good at this type of job, but he was too busy. Mr. Howard added that this person would be an asset to the City and would pay for themselves. Commissioner Skaggs questioned if we should promote Mr. Pinkall and replace him. Mr. Howard stated that this person could work under Mr. Pinkall. Commissioner Skaggs asked if there was budget money for this and should we run with it. Ms. Garten stated that it can be budgeted for and all they would need to decide would be an amount for salary and expenses. Ms. Garten added that she could add some figures to the tourism budget for that. Mayor Hlavachick questioned if $100,000 would work. Mr. Howard commented that the City gives tourism about $100,000 and they do not spend it all. Mayor Hlavachick commented that a marketing director was worth a lot of money. Commissioner Skaggs stated that this was a place to start.
• Aquatic Evaluation:
Ms. Garten commented that Public Works Director Rambat had budged for an aquatic evaluation on the pool since it was beginning to age. Mayor Hlavachick asked if the insert was still working. Mr. Howard stated that it has to be repaired, but the fiberglass was working. Mr. Howard explained that it was not just the liner as the filter was getting old and the pool was approximately seventy years old.
• New Fire Engine/New Station:
Ms. Garten stated that Fire Chief David Kramer would like to begin to put money back to replace the older engine and he would like to have the Commission consider a ladder truck. Commissioner Skaggs questioned if it would fit in the new facility. Mr. Howard stated that it would. Ms. Garten stated that this was looking into the future and not next year, but cost would be at about $300,000. Commissioner Taylor questioned if the County had one. Mr. Howard stated that they had, but he was not sure that there was water at the top of the ladder. Commissioner Skaggs commented that the County had got it for fighting fires in elevators. Commissioner Skaggs asked if we need one if they have one. Mayor Hlavachick commented that he did not see any reason to have two ladder trucks.
Ms. Garten stated that Chief Kramer had explained that Engine 1 was bought on a lease/purchase and the final payment was in 2011 and he was concerned about several of the new facilities, such as the motel, being multi-stories. Mr. Howard commented that that truck was ten years old. Commissioner Skaggs questioned if we had three trucks. Ms. Garten stated that there was one that was in Iuka and two were stationed here.
Commissioner Skaggs questioned if the City had a working relationship with the County. Mr. Howard stated that there was mutual aid and they would respond to help each other. Commissioner Skaggs commented that he felt that the City should definitely start budgeting for another truck. Mr. Howard stated that they would start putting away the money that had been going to the lease/purchase. Commissioner Taylor questioned if those funds were generated by the mill levy. Ms. Garten stated that was correct. Commissioner Taylor asked if there were any additional funds that could be put towards this. Ms. Garten stated that there was not due to the renovation of the new station. Commissioner Graf questioned if there was grant money that they could try for. Ms. Garten stated that there probably was.
Commissioner Skaggs questioned what the target date was for the completion of the new station. Mr. Howard stated that they were going to be done the first of September, but he would have to talk to Building Inspector Brad Blankenship.
Commissioner Skaggs asked what the space at the Municipal Building was going to be used for after the fire station moves. Mr. Howard stated that it had been discussed that it would be used for storage, but it was up for discussion. Mr. Howard commented that the Blythe Foundation thought it would make a good hand ball court, but that was not going to work. Mr. Howard commented that he was not sure what we would use it for, but the Chamber was looking for another ‘free’ space. Mr. Howard stated that that would take a major renovation. Commissioner Taylor questioned if their current location was owned by Red Cross. Mr. Howard stated that it was, but there were issues with the building. Commissioner Skaggs commented that he felt that when you are going through a town, the Chamber or Visitors Welcome Center should be on the highway and the Municipal Building was not an ideal location.
Commissioner Skaggs questioned if it could be used for a new kitchen facility. Mr. Howard commented that that had been discussed and it could go in new there. Commissioner Skaggs questioned if money had been set aside for that. Mr. Howard commented that there was a maintenance budget for the building and it was specifically earmarked for that building. Mr. Howard commented that he could get an estimate for renovating the kitchen and the budget can always be amended.
Capital Outlay Equipment:
Ms. Garten commented that the capital outlay purchases were items purchased this year out of their budget. Ms. Garten stated that some things had already been talked about such as the Rolling Hill easement and aerial photo equipment.
• Municipal Building:
Commissioner Skaggs questioned the maintenance budget for curtains at the Municipal Building. Mr. Howard stated that they would be for the meeting room as it was rented out a lot for showers and meetings. Commissioner Skaggs commented that we need to keep the Municipal Building maintained as it is a vital source for the community.
• Electric Department:
Commissioner Taylor questioned the air compressors for the electric department and if those were the ones that Power Plant Superintendent Ernie Smith had been keeping them updated on. Mr. Howard stated that they were not, because this one was for the #4 and the older steam units.
• Water Department:
Commissioner Skaggs questioned if everything was going to the wand reading on meters. Mr. Howard stated that we were already doing that with the water meters, but radio reads will be phased in for both electric and water.
Equipment Reserves:
Ms. Garten stated that this was where there is a dollar amount put in that gives us the budget authority to spend them without having to amend the budget. Ms. Garten added that these were items that the departments felt they would need to purchase in 2011.
Mayor Hlavachick asked if the phone system at the power plant was an update from what they have. Ms. Garten stated that the power plant had an old phone system and had not been replaced for many years.
Mr. Howard pointed out that the Maple Street water main had nothing to do with the new construction and there were some lines that almost ran under people’s houses and we had no easements.
Mayor Hlavachick questioned the lift stations at the airport. Mr. Howard explained that these were to the ponds that were old. Ms. Garten stated that they had put money back for a couple of years for that.
Capital Improvements:
Ms. Garten stated that this fund was similar and the Main Street project made it look higher. Commissioner Skaggs questioned the non-projected equipment in the amount of $453,000. Ms. Garten explained that this was for anything that comes up within the year so that we have budget authority without amending the budget. Commissioner Skaggs asked how they came up with that figure. Ms. Garten commented that we wanted to budget a full million for that fund.
Mayor Hlavachick questioned if there was enough money put back for tree loss in the parks. Ms. Garten stated that that was the figure given to her by Parks Superintendent Mark Eckhoff. Mayor Hlavachick questioned what it would take to get a bike path around town and if the trail connecting Lemon Park and Wildlife and Park was going to come to pass. Mayor Hlavachick asked if this was where you would want to put some money into. Ms. Garten commented that there is a special parks fund that part of the alcohol money goes into and she thought this would be an ideal place for that. Ms. Garten added that there should be some grant money out there for something like that. Mayor Hlavachick commented that Ms. Linda Lanterman had been working on the trail from the wastewater plant east for about a half a mile. Mr. Howard added that it was more of a hiking trail than one for bikes.
Proposed Budget:
Ms. Garten commented that she had enclosed the proposed budget and this was what would be filed with the County Clerk. Ms. Garten stated that these numbers were the same as in the detailed information.
• General Fund:
City Commission:
Ms. Garten stated that the City Commission budget stayed pretty much the same with the exception of the increase in health insurance.
City Manager:
Ms. Garten commented that there was nothing new in the budget for the City Manager.
City Attorney:
Ms. Garten commented that the City Attorney budget was the same as last year.
City Clerk/Utility Department:
Ms. Garten explained that the workers comp had been moved around due to the City Clerk and Finance departments having separate budgets.
Finance:
Ms. Garten commented that the workers comp went up along with the health insurance increase.
Police:
Ms. Garten commented that she had moved the parole officer to the municipal court and reduced the part time salary to over time at the request of Chief Holmes.
Ms. Garten stated that the police department typically budgets for two new vehicles and those are found in capital outlays. Commissioner Peltier questioned how many police vehicles we had. Mr. Howard stated that we have nine patrol cars, one crime scene vehicle and one animal control vehicle. Commissioner Skaggs asked how many were out at one time. Mr. Howard stated that it was usually four or five and the others are taken home by the officers. Mr. Howard explained that in case of an emergency, they would be able to respond quickly and it may help with crime to have one sitting in the neighborhood.
Animal Control:
Ms. Garten pointed out that the payment to the Humane Society came from this budget in fund 204.
Municipal Court:
Ms. Garten stated that there was an increase in the salaries since the probation officer’s salary was reallocated to this fund. City Attorney Van Blaricum commented that Ms. Jamie Walker knew the people and was an appropriate choice to do that job.
Commissioner Taylor questioned if they were working on the cross training mentioned by the auditors. Ms. Garten stated that they were working on that with Chief Holmes and Ms. Lyda Kasselman.
Fire Protection:
Ms. Garten stated that there was not much change in this budget except for the purchase of office equipment for the new station.
Planning and Code Enforcement:
Ms. Garten stated there was nothing changed in this budget.
Parks:
Ms. Garten stated that Mr. Eckhoff had actually reduced his budget. Ms. Garten commented that there were four full time employees and seasonal help.
Pool:
Ms. Garten stated that this was where Mr. Rambat had budgeted for a pool upgrade, the aquatic study and sixty foot of sidewalk that needed to be replaced.
Municipal Building:
Ms. Garten stated that this was where the utilities and a few supplies were purchased from. Ms. Garten commented that $10,000 was put back into capital improvements each year for the last five or six years from this fund. Commissioner Skaggs questioned what that meant. Ms. Garten explained that capital equipment reserve and capital improvement funds could be held until ready to be used and larger amounts were put in CD’s in the local banks.
Recreation Department:
Ms. Garten stated that there were not many changes in this budget, but that Mr. Pinkall would be purchasing an aerator in 2011.
Public Works:
Ms. Garten stated that there were not many changes in this budget with the exception of the cost of the utility clearing in Rolling Hills out of professional services. Ms. Garten commented that the remainder of the cost for Rolling Hills was in the wastewater budget.
Maintenance Department:
Ms. Garten commented that this budget takes care of the Community Center, the Municipal Building and City Hall. Ms. Garten stated that there were two full time employees paid from this budget. Commissioner Skaggs asked if they have regular schedules. Ms. Garten stated that they go between all of the buildings and clean City Hall in the evening. Mr. Howard added that they are also the daytime drivers for the fire department.
Cemetery Department:
Ms. Garten explained that the salaries for the cemetery are paid out of the general fund and the revenues and expenses are out of another fund. Commissioner Skaggs asked how much was in the trust fund. Ms. Garten commented that it was about $300,000.
Street Department:
Ms. Garten stated that the salaries for the street department were paid out of the general fund along with special street projects.
Special Police:
Ms. Garten commented that this was an additional fund for the police department.
Industrial Development:
Ms. Garten stated that this was where economic development comes in. Commissioner Taylor questioned why we did not call this fund ‘economic development’ instead of ‘industrial development’. Ms. Garten commented that she could do that, because it was just a title.
Ms. Garten commented that transfers were made out of the general fund to the special streets reserves for the Main Street project in which our share was $250,000. Ms. Garten added that transfers to the capital outlays and donations were.
Ms. Garten commented that that was the end of the general fund and informed the Commission that the general fund was a tax levied fund and you can pay about anything from it.
Special Revenue and other funds:
Library:
Ms. Garten stated that this was the three mill levy that had been approved by the Commission earlier.
Commissioner Taylor questioned if it had gone down a little. Ms. Garten commented that you have to budget more than the three mill since you do not know what was going to come in, but it was approximately the same. Commissioner Taylor pointed out that last year they were at $126,831 and this one was at $118,000. Ms. Garten explained that it should come in at about $123,000 and that this figure was up to June 30th.
Cemetery:
Ms. Garten stated that this was where the lot sales and open/close revenues were. Ms. Garten added that expenses were paid out of this fund. Commissioner Skaggs questioned if the bill was sent to the mortuary and then passed on. Ms. Garten stated that it was in most cases.
Noxious Weeds:
Ms. Garten stated that this was weed control. Mayor Hlavachick questioned if we had sprayed the alleys yet. Mr. Howard stated that they had and also had sprayed the parks. Commissioner Taylor asked if anyone had noticed the bind weed this year and wondered if the County would help spray it or not. Commissioner Taylor questioned if the city would try to do this ourselves and have access to private property. Commissioner Taylor added that he had had one complaint about the bind weed. Commissioner Taylor commented that Mr. Rambat was going to try and go spray, but needed to wait until later in the summer. Mr. Howard commented that we do not usually spray on private properties and bind weed was not illegal. Commissioner Taylor commented that it was a noxious weed. Commissioner Skaggs commented that it kills everything else. Mayor Hlavachick added that it should be eradicated if found. Mr. Howard commented that if it is found in the parks we take care of it, but he did not think we should go on someone’s lawn. Mr. Howard added that that was up to the Commissioners, but we usually send people to the extension office. Commissioner Taylor commented that Mr. Jerry Berry would do it. Mr. Van Blaricum agreed. Mr. Howard commented that the County sprays their right-of-ways and their ditches. Mr. Van Blaricum stated that they would help spray if they got help paying for it.
Tort Liability:
Ms. Garten stated that tort liability was a reserve for just that. Commissioner Peltier questioned if there was any way to take money out of here. Ms. Garten stated that there was not.
Special Streets:
Ms. Garten stated that the ¼ cent sales tax was collected and spent in this line item along with the City/County highway funds from the State. Ms. Garten commented that the Fincham Street loan payments came out of here. Commissioner Peltier questioned how much longer we have on the payments. Ms. Garten stated that the loan would be paid off in 2013 and that the original loan amount was $510,000 and the outstanding balance was $204,000. Commissioner Taylor added that the City had actually done Fincham Street and the extension of Tenth Street with this loan.
Commissioner Taylor questioned if we were going to get to do Simpson Street, which was the road past D & R Trucking. Mayor Hlavachick commented that it had been discussed when Mr. Blake Himmelwright and Mr. Rod Seidel had talked to the Commission. Ms. Garten stated that she thought it was part of Mr. Rambat’s five year plan that had been submitted to KDOT.
Travel and Tourism:
Ms. Garten stated that this was the fund where the additional salary and expenses of $100,000 would be. Ms. Garten added that she had increased special City projects due to the Main Street project and possible increase advertising promotions.
Alcohol and Drug:
Ms. Garten stated that this fund would be closed out eventually since the court system does not generate funds.
Fire:
Ms. Garten explained that there was not much money left here due to the materials purchased for the new station.
Special Police:
Ms. Garten explained that these were motor vehicle forfeiture funds and are only dispensed for certain items. Ms. Garten stated that these funds will help purchase the mapping and aerial photo upgrade. Mr. Howard commented that these funds can be used as long as the police benefit from the purchase. Commissioner Taylor questioned if they can purchase vehicles from here. Mr. Howard stated that they can, but they do use it every year. Ms. Garten stated that these funds are used to purchase the equipment in the vehicles.
Commissioner Skaggs questioned what forfeiture funds were. City Attorney Van Blaricum answered that these were funds from informal police stops when the vehicle would be carrying drugs or drug money. Mr. Van Blaricum added that the person can forfeit the vehicle unless it is not worth more the $500 and in that case, we do not take it. Mr. Howard commented that a majority of the money was from a drug bust that was in the fund.
Risk Management:
Ms. Garten commented that this fund was closed in 2009.
Employee Health Insurance:
Ms. Garten stated that this fund was used when the City was self-funding, but the balance was being transferred to the general fund.
Bond and Interest:
Ms. Garten commented that this was a tax levied fund and that in 2009 the refunding was down, which helped the mill levy. Ms. Garten added that this fund services our debt.
Special Parks & Recreation:
Ms. Garten stated that this was a required fund by the State for a 1/3 of the alcohol tax revenues and it has to be spent on Park and Recreation. Ms. Garten commented that this could be where some of the money for the bike path would come from.
Special Alcohol:
Ms. Garten explained that this was a 1/3 of the alcohol tax. Ms. Garten commented that these funds came from chemical dependency; therefore, the money was disbursed to South Central Kansas Foundation for Chemical Dependency.
Enterprise funds:
Electric:
Ms. Garten stated that this was the adjusted revenue and expense that reflect reality and projected on historical data. Ms. Garten added that there were changes in the purchase power and generation costs.
Ms. Garten stated that the first section contained Mr. Hemphill and Ms. Mary Hammond’s salaries.
Ms. Garten stated that production was the power plant and distribution was the lineman. Ms. Garten pointed out that there was a budgeted increase in salary due to schooling to complete the merchant’s course.
Sanitation:
Ms. Garten stated that there were no changes in sanitation. Commissioner Taylor commented that there was money in equipment reserves for a new packer. Ms. Garten stated that there was an amount of $60,000 for that equipment.
Wastewater:
Ms. Garten stated that sewer rates were determined by the amount of water used in the winter months. Ms. Garten explained that equipment supplies were up due to the purchase of UV lamp and the utility easement at Rolling Hills. Ms. Garten commented that there would be a transfer to the general fund out of here for the first time in several years.
Commissioner Taylor questioned if there was a change of lagoons at the airport. Mr. Howard stated that there had been and that the sludge process was a better process. Mr. Howard added that he was concerned about how we would keep discharging if we blew the plant. Mr. Howard commented that we cannot pollute the Ninnescah River so we should do something now.
Mr. Howard stated that septic tank haulers should stop being able to dump since we do not know what we are getting. Mr. Howard clarified that it was not a good idea to allow unregulated dumping. Commissioner Taylor asked where they would go. Mr. Howard stated that there should be a dumping station.
Water:
Ms. Garten commented that this was where the revenue from the Ethanol Plant payment went and was used to service that debt. Ms. Garten explained that some funds would be allocated due to the purchase of an AMR reading system, a water quality study and to pay for the Maple Street project. Ms. Garten commented that they would continue to put back money for additional AMR equipment.
Mr. Howard stated that we had borrowed $1.2 million and if allowed, the City would think about replacing the water line in either direction.
Utility Deposits:
Ms. Garten commented that this fund was a wash. Commissioner Skaggs questioned if a customer ever gets their deposit. City Clerk Kramer commented that they can get it back after a year’s good credit or if they leave our service before that, it goes towards their balance due.
Park Improvements:
Ms. Garten commented that this was interest and donation to the park trust fund. Commissioner Taylor questioned if he had any plans for the money. Ms. Garten stated that he wanted to replace some of the play equipment in 2013.
Cemetery Trust:
Ms. Garten stated that this was also the interest and donation to the cemetery. Ms. Garten added that expenses are paid out of this fund after they are approved by the cemetery board. Ms. Garten commented that they have about $30,000 to spend each year.
Recreation Trust:
Ms. Garten stated that this was tournament gate proceeds and donations that are used for recreation improvements.
Sales Tax:
Ms. Garten stated that this fund was where the sales tax was collected and paid out, so it was a wash.
Reserve Funds:
Ms. Garten stated that these are required by bond instruments and have to maintain an amount.
Water:
Ms. Garten stated that there was nothing budgeted in this fund for 2011.
Electric:
Ms. Garten commented that this was where the electric revenue bonds were paid from.
Wastewater:
Ms. Garten stated that this was required by the bond instrument.
Water:
Ms Garten stated that this fund was also required by the bond instrument.
Capital Equipment Reserves:
Ms. Garten commented that this was where transfers from other departments were for equipment purchases.
Special Street Reserves:
Ms. Garten stated that this was the reserves for the Main Street project and where the money would be expended in 2011.
Capital Improvements:
Electric Maintenance Reserves:
Ms. Garten commented that this was the reserve fund for the electric department and was used for the deductible amount on any insurance claims.
Fire Fighting Reserves:
Ms. Garten stated that this was the fund where the truck lease payment we made along with some of the costs of the remodeling of the new station.
Discussions:
Budget Schedule:
Mayor Hlavachick questioned when the budget was due to the State. Ms. Garten stated that the budget has to go to the County by August 25th. Ms. Garten explained that she would make the changes that were discussed today, get it published ten days prior to the hearing that would be on August 16th.
Play Equipment for Hampton Park:
Commissioner Peltier commented that he would like to see some play ground equipment at Hampton-Pennock Park. Mayor Hlavachick commented that there was the walking path. Commissioner Skaggs stated that the park was not very centrally located. Commissioner Peltier stated that there were a lot of kids in that area and he felt that benches and play equipment would be a good idea. Mr. Howard commented that there may be money in the budget this year and he would look at that. Commissioner Peltier commented that he knew that the play ground equipment was not cheap. Ms. Garten commented that the equipment at Green Sports Complex was about $90,000. Commissioner Peltier commented that we could start out with starter equipment and then add to it later.
Commissioner Skaggs commented that the City of Pratt has more parks than most normal Cities and it would have to be trimmed and manicured. Commissioner Skaggs questioned what would happen to the play equipment once Haskins Elementary was closed. Commissioner Graf stated that he had heard that was purchased by grant money and could not be removed. Mr. Howard commented that he would not mind taking over the maintenance of the grass area, but was not interested in the building.
Maple Street addition:
Commissioner Peltier commented that he wanted to discuss the Maple Street addition in that he felt that the City should begin talking with the engineers about setting up the plat. Commissioner Peltier stated that the curb and gutter in the development area should cost about $88,000 and he wanted to see a fund set aside for that. Commissioner Peltier added that the engineers suggested that we put in the curb and gutter and when a percentage of the lots get sold, we would add them back on to specials. Commissioner Peltier commented that for $150,000, they could have the area ready to go.
Mr. Howard commented that he had had several requests concerning the lots that would be for sale. Commissioner Peltier stated that you cannot sell until there was some type of structure and site barriers on the south side. Commissioner Skaggs questioned which comes first. Mr. Howard stated that they have a plan that includes the utilities, road base and then curb and gutter. Mayor Hlavachick questioned if you have to have utilities under the road that would be built. Mr. Howard stated there would be, but it would not only be City utilities, but communications and gas.
Mr. Howard explained that the planned development would involve getting your underground work done and then build a dirt road, followed by curb and gutter. Mr. Howard clarified that there was a lot of work to do before curb and gutter. Commissioner Taylor added that there would also be a lot of expense. Commissioner Skaggs commented that he agreed that we cannot sell the properties if people cannot visualize it. Mr. Howard commented that we could put in a dirt road and then put in the utilities, because you can build on dirt.
Commissioner Taylor questioned how far out the plat was. Mr. Howard stated that it was months out. Mr. Howard explained that he would have to meet with Mr. Alan Luttrell from EBH Engineering and a surveyor, having done the work designing Maple Street, have to layout the utilities and make sure it is practical, so it would be next spring before there would be anything usable. Commissioner Taylor commented that 2011 budget was next spring and that was when Mr. Howard felt that the plat would be done. Mr. Howard commented that it could be done by November or December, but you were not going to be able to do much.
Commissioner Taylor questioned if there were any reserve funds that could be ear marked for this. Ms. Garten stated that there were funds in the capital improvement for unprojected things. Commissioner Skaggs asked if the platting would be the responsibility of the developer if there was one. Mr. Howard stated that it would, but it could also be that the City does it all, but it could go either way. Commissioner Peltier stated that if the City was going to develop the area, we were going to have to push it.
Commissioner Taylor asked what would need to be done to sell the lots and if that would that be by laws and covenants. Mr. Howard stated that the City does not do covenants originally. Commissioner Peltier commented that Mr. Luttrell had said that it would be the home owners that would enforce any covenants. Mr. Howard stated that he disagreed with that, because if we own the land, we are the developers and we would control the zoning.
Mr. Howard stated that zoning should be in place before the lots sell and any covenants have to be strictly enforced, but you can have either covenants or zoning. Mr. Howard explained that you cannot zone out manufactured homes in the City, but you can zone them out of a neighborhood. City Attorney Van Blaricum commented that more restrictive covenants can be more attractive to people looking to buy. Mr. Howard stated that if those covenants are not enforced, they were useless.
Commissioner Peltier commented that there were people asking questions. Mr. Van Blaricum commented that he could look at the zoning options and restrictive covenant options. Mr. Howard added that the Planning and Zoning Board should be involved in the process.
Sick Leave Policy:
Commissioner Peltier commented that the City presently has a sick leave policy, vacation policy and personal time off, which is based on longevity and worked days. Commissioner Peltier added that the vacation policy is use it or lose it and he would like to see employees be able to accumulate it. Commissioner Skaggs asked what advantage that would have. Commissioner Taylor commented that it would be too big an expense to do that.
Mayor Hlavachick commented that he liked the way the State allows you to accumulate sick leave. Mr. Howard stated that you can get paid for twenty days sick leave when you retire and it accumulates at one day a month. Commissioner Taylor agreed that it was good to accumulate sick time. Mr. Howard added that sick leave is the best insurance someone can have.
Commissioner Skaggs clarified that if you do not use your vacation time, you lose it. Ms. Garten commented that vacation time can be extended by the City Manager. Commissioner Skaggs asked if vacation time had to be taken two weeks at a time. Commissioner Taylor offered that he has employees do a week at a time. Mr. Howard stated that the City does not make them do a week or two at a time and that was working for us.
After little more discussion, Commissioner Skaggs commented that he did not see any reason to change it. Mr. Howard commented that he encourages long time employees to use their vacation time and not lose it. Commissioner Skaggs commented that employees need to take time off.
Payroll Information:
Commissioner Skaggs questioned where the individual payroll information was in the budget, particularly the City Manager’s. Ms. Garten stated that it was under the general fund for the City Manager’s budget. Commissioner Skaggs commented that the 3% salary increase would impact him more than anyone else. Ms. Garten stated that Mr. Howard did not always accept the increase. Mr. Howard commented that he had not asked for a raise in eight years.
After a short discussion, Mayor Hlavachick made a motion to go into executive session for thirty minutes to discuss non-elective personnel. The motion was seconded by Commissioner Peltier and carried unanimously.
There was a motion and second to return from executive session with nothing to report.
Comprehensive Plan:
Commissioner Taylor commented that the Comprehensive Plan was about to expire and questioned if there was going to be another one. Mr. Howard commented that he had visited with Mr. Blankenship about it and, with the changes to the five year plan, it needed to be done. Commissioner Taylor commented that he would like to see community involvement. Commissioner Taylor explained that the Maple Street extension had been in the plan for twenty-five years and if the citizens had been at those meetings, they may not have been against it this time.
TV Station:
Commissioner Taylor questioned what it would take to have a TV station with Cox so that our meetings were televised. Mr. Howard stated that he thought that was part of the franchise, but we would have to pay for the costs of the camera. Mr. Howard commented that he would visit with Mr. Reynaldo Mesa and see what it would take.
ADJOURN:
A motion by Commissioner Peltier to adjourn the recessed budget session. The motion was seconded by Commissioner Taylor and carried unanimously.
_______________________________________
BILL HLAVACHICK, Mayor
(SEAL)
ATTEST:
______________________________________
LUANN KRAMER, City Clerk
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