City of Pratt Agendas: July 2010

MONDAY

JUNE 21, 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

CALL TO ORDER:

The regular meeting was called to order by Mayor Hlavachick. The Mayor instructed the Clerk to note that all Commissioners were present.

Mayor Hlavachick reminded the staff and audience that this meeting may be taped and/or recorded.

MINUTES:

A motion by Commissioner Taylor to approve the minutes of the June 07, 2010 recessed meeting with the County and to make changes that had been discussed and to approve the minutes of June 07, 2010 regular meeting. The motion was seconded by Commissioner Peltier and carried unanimously.

OPEN AGENDA:

American Legion:

• Smoking exemption:

Mr. Rick Wittig addressed the Commission on the smoking exemption he had received from the State and wanted to know if the City was still on track to redeem the City ordinance for July 1st. Mayor Hlavachick commented that he was not sure if we had to rescind it or not. Mr. Wittig commented that he understood that the City would drop their ordinance and let the State do its part. Commissioner Taylor questioned if the City needed to rescind theirs or the State over rules ours. City Attorney Ken Van Blaricum commented that the State law takes precedence over the City.

Mr. Wittig stated that the letter read ‘However, there may be a local ordinance or resolution in your City or County that prohibits smoking in Class A and B clubs’. Commissioner Peltier commented that our ordinance would supersede. City Manager Dave Howard commented that it had been discussed earlier that our ordinance would be repealed. Commissioner Taylor questioned if the State takes care of that. Mr. Van Blaricum stated that the Commission could repeal that part of our ordinance that provides for no smoking in Class A or B clubs or anywhere on a future agenda if they wanted to coordinate with the State law. Commissioner Skaggs questioned if they would be rescinding just what pertained to private clubs. Mayor Hlavachick stated that was correct. Mr. Van Blaricum commented that Class A and B clubs are exempt from any smoking regulations providing that they can prove that they were a Class A or B club as of January 01, 2009. Mr. Van Blaricum added that the American Legion has done that, so they need the City to repeal our part of the ordinance that makes it illegal to smoke in private clubs. Police Chief Steve Holmes commented that he did not have the Statute in front of him, but he thought that if your ordinance was more restrictive than the State law, yours was null and void come July 1st. Commissioner Taylor questioned if they had to do anything then. Mr. Van Blaricum stated that if the Commission’s intent was to conform to the State law, he could do that by repealing that part of the ordinance.

Commissioner Skaggs questioned if a membership constituted a private club. Mr. Van Blaricum stated that a private club has applied to the State of Kansas Alcoholic Beverage Commission to get a license to sell alcohol under certain terms and conditions. Commissioner Skaggs clarified that you cannot just walk in and you have to be a member. Mr. Van Blaricum stated that was correct.

Mayor Hlavachick commented that the way he understood it, as of July 1, 2010 they were home free. Mr. Wittig questioned that that was as long as the City ordinance was repealed. Commissioner Peltier commented that it does not have to be repealed and it was null and void, but he did not want that cast in stone until Mr. Van Blaricum had time to research it. Mr. Van Blaricum commented that he does need time to research that question and he would have something for them at the July 6th meeting. Mr. Wittig questioned if they could open up as smoking on July 1st. Commissioner Taylor commented that he had no problem with that. Mr. Wittig asked if he could have that noted in the minutes and in writing. Commissioner Taylor commented that the Commission should wait until they hear from the City Attorney at the next meeting and he felt that if the more restrictive sanctions that the City put on are null and void. Chief Holmes commented that he would not want to say he was 100% sure without reading the bill that had been passed since there were so many drafts on the smoking issue. Mr. Wittig commented that was why the application came into effect and the State said yes. Chief Holmes commented that the State is telling them that they meet the criteria and our question is whether the new law makes that part of our ordinance go away and that would be what the City Attorney would be able to tell us at the next meeting. Mayor Hlavachick commented that they do not have anything in front of them since Mr. Wittig was not on the agenda. Mr. Wittig commented that he would try to be at the next meeting.

BUSINESS:

PRESENTATION OF CITY OF PRATT 2009 AUDIT:

Ms. Vicki Dreiling from Adams, Brown, Berran and Ball, Chtd. Presented the Commission with the audit report for the City of Pratt for the year ending December 31, 2009. Ms. Dreiling commented that the auditors opinion on page one states ‘In our opinion, the financial statements referred to above present fairly, in all material respects, the cash and unencumbered cash balances of each fund of the City of Pratt, Kansas, as of December 31, 2009, and their respective cash receipts and disbursements, and budgetary results for the year then ended’.

Ms. Dreiling explained that they were presenting the financial statements on a statutory basis and reminded the Commission that the City applies for a GAAP waiver by passing a resolution every year that allows these types of statements Ms. Dreiling stated that this opinion was called an unqualified opinion and that was the highest opinion that they can give on financial statements. Commissioner Skaggs questioned the statement in the report that says ‘the financial statements referred to above do not present fairly, in conformity with accounting principles generally accepted in the United States’. Ms. Dreiling stated that was GAAP and the State allows the City to present their financial statements in this way so that they mirror the budget that is prepared on a statutory basis so that they mirror each other.

Ms. Dreiling commented that on pages two and three were the summary of cash receipts, expenditures and unencumbered cash that shows each fund and the beginning unencumbered cash balance, the prior year cancelled encumbrances, cash receipts, expenditures, ending unencumbered cash balance, outstanding encumbrances and accounts payable and the ending cash balance. Ms. Dreiling explained that the beginning unencumbered cash balance would be the actual cash balance less any outstanding accounts payable and the prior year canceled encumbrances would be anything that was encumbered from the previous year but did not spend. Ms. Dreiling stated that on page three was the year end actual cash balance was $19,976,226 for the funds and $20,068,579 with some agency funds added.

Ms. Dreiling commented that the City showed a decrease in their ending unencumbered cash over the prior year of about $1,000,591 and that was partially due to a lot of outstanding encumbers this year. Ms. Dreiling added that was up about $965,000 which included a cooling tower, the Main Street project, equipment purchases and a KLINK project and they were encumbered at year end to be spent in 2010. Ms. Dreiling commented that the overall cash was down about $626,000 from the previous year.

Ms. Dreiling stated that page four contained the summary of expenditures for the actual and budget figures. Ms. Dreiling explained that this compares the certified budget per fund with what was actually spent and it showed that all of the expenditures for each fund were under budget. Commissioner Taylor questioned if the cooling tower encumbrances had all been spent. City Manager Howard stated that over 90% had been spent. Commissioner Taylor commented that they would be spending a good portion of the water fund tonight. Ms. Dreiling clarified that the materials were purchased in the current year of 2009, but not paid for until 2010. Ms. Dreiling commented that the next several pages were individual fund financial statements that give details of what the cash receipts and cash expenditures were and shows comparisons with the prior year, the current year and the budget.

Ms. Dreiling stated that page forty were notes to the financial statements that gave more detail to the financial statements. Ms. Dreiling wanted to point out in notes ten and eleven on page forty-nine that there had been a statute violation that was no fault of the City. Ms. Dreiling explained that you were required to pay the refunding bonds twenty days before the date of maturity, but the bonding company did not get the paper work to the City in time. Ms. Dreiling added that the State has your hands tied and this was a statute violation regardless of whose fault it was. Commissioner Taylor questioned if there were any penalties or fees associated with the violation. Ms. Dreiling stated that there were not.

Ms. Dreiling stated that on note eleven there was a prior period adjustment in the utility deposit fund and there were some things that needed to be cleaned up. Ms. Dreiling commented that those had been cleaned up and they were doing a good job of reconciling that fund on a monthly basis.

Ms. Dreiling commented that on pages fifty and fifty-one were the long term debts and there was a lot of activity this year. Ms. Dreiling explained that there were advance refunds for three of the obligation bonds and one revenue bond. Ms. Dreiling added that the City had taken out two new obligation bonds, which left the city with approximately $13,278,000 in debt in 2009 and had paid $533,000 in interest. Ms. Dreiling commented that page fifty-one showed the long term debts in five year increments. Ms. Dreiling stated that on page fifty-two it showed that by doing advanced refunding, the city had saved $126,000.

Ms. Dreiling commented that there was a separate letter that was now called a governance letter and contains management recommendations. Ms. Dreiling stated that the City works well so their list was small. Ms. Dreiling explained that there were two items in payroll and accounts payable that were already taken care of, so she would not elaborate on those. Ms. Dreiling commented that they would suggest that Municipal Court do cross training for Municipal Clerk so that someone could fill in for her in her absence. Commissioner Taylor asked how they had come across this. Ms. Dreiling commented that it was through discussion with the department heads and about who does what. Ms. Dreiling continued discussing recommendations and another one was that the City Manager should initial the bank reconciliation after he had reviewed it. Ms. Dreiling suggested that the fire department update an inventory sheet for items purchased or disposed of.

Mayor Hlavachick commented that Ms. Dreiling had done a great job. Commissioner Skaggs questioned whether different members of her staff looked over these figures. Ms. Dreiling stated that she was the partner in charge for the past three years, but they have different staff that assist with the audit. Commissioner Taylor commented that the discussion three years ago had been a long one due to them having the low bid, but the City made the right decision. Ms. Dreiling stated that she appreciated the cooperation of the City staff.

CONSIDERATION AND APPROVAL OF LOW BID FOR THE MAIN STREET WATERLINE PROJECT:

Mr. Alan Luttrell of EBH Engineering informed the Commission that bids for the Main Street waterline project had been opened Thursday and there were three bidders who were well qualified. Mr. Luttrell commented that APAC out of Hutchinson was the low bid and commented that the City got a bargain. Mr. Luttrell explained that his estimate in 2007 was about $782,000 and APAC’s bid was $448,989.

Mr. Luttrell stated that he had visited with APAC earlier and they needed the work. Mr. Luttrell added that with what was in the ground on Main Street being eighty years old, APAC did not have a lot built into the bid so if things come up, there would have to be a change order. Commissioner Skaggs questioned who made those decisions when something unforeseen comes up. Mr. Luttrell stated that he gets with City Manager Howard and Public Works Director Rambat and they make the decision. Mr. Luttrell commented that APAC was good to work with. Commissioner Peltier questioned if there would be any cost overruns with APAC that you would not have with Mies Construction or Nowak Construction. Mr. Luttrell stated that they were all good to work with.

Commissioner Skaggs questioned if we were getting all new fire hydrants. Mr. Luttrell stated that was correct. Commissioner Skaggs questioned the abandonment of curb stops and questioned the shut offs. Mr. Luttrell stated that there would be shutoffs and that now there were valves in front of where the meter are and that was not standard anymore. Mr. Luttrell explained that when you take out the meter you also have to remove about a 4” square and once the sprinkler line for the planters was located it would also have concrete removed and replaced. Mr. Luttrell added that the same would go for the fire hydrants.

After little more discussion, Mr. Luttrell recommended the low bid from APAC Shears in the amount of $448,989. Commissioner Taylor questioned if a lot of this was going to be done boring. Mr. Luttrell stated that they should get started around the first half of July, but they still needed to have another meeting with the downtown people, get their bonds and have preconstruction conferences. Commissioner Taylor asked if they would replace the boring area with brick. Mr. Luttrell stated that they would have to expose all the service lines and would have to open up a 5’ X 30” space. Mr. Luttrell commented that the open areas that were in the KDOT rights-of-way would be concrete and anything on the side streets would be concrete with brick on top. Mr. Luttrell explained that anything within the right-of-way would be concrete and anything outside the right-of-way would be concrete with brick on top. Mr. Luttrell added that they would probably bore every block or block and a half depending on what obstacles were out there, like the sewer line.

Mr. Luttrell commented that this includes both phases of the project and when KDOT takes out the street next year they would come in and put the services in. Mr. Luttrell stated that prior to that there would be another downtown meeting. Commissioner Skaggs commented that there definitely needed to be another downtown merchants meeting since there were concerns about the way it was going to be done. Mr. Howard commented that Commissioner Skaggs was referring to the actual road and doing it all at once or a block at a time. Mr. Luttrell stated that would have to be worked out with KDOT. Commissioner Skaggs questioned if KDOT was going to bring in their crews and equipment to do this. Mr. Luttrell stated that KDOT would be funding the other part of this project, so they have a big say in what you do and do not do.

A motion by Commissioner Skaggs to approve the bid from APAC in the amount of $448,989 and subject to KDHE approval and authorize the City Manager to sign the notice award. Commissioner Taylor questioned why we needed KDHE approval. Mr. Luttrell stated that they were who we were getting the loan from. The motion was seconded by Commissioner Peltier and carried unanimously.

CONSIDERATION AND APPROVAL OF 2011 BUDGET REQUEST OF 3 MILL FROM PRATT PUBLIC LIBRARY:

Ms. Rochelle Westerhaus commented to the Commission that the library had been doing some reevaluating of materials and services and wanted to be more responsive to the community’s needs. Ms. Westerhaus stated that they have improved the children’s programs, internet access and greater access to the State interlibrary loan program.

Ms. Westerhaus commented that the community has access to ten computers, there has been staff reorganization in the children’s programming and the interlibrary loan program gave them access to books and materials across the State that we would not be able to purchase. Ms. Westerhaus explained that for the interlibrary program you need to have a library card and they would get the material for you.

After little more discussion, Commissioner Taylor made a motion to allow three mill for the Pratt Public Library for the 2011 budget year. The motion was seconded by Commissioner Peltier and the motion passed unanimously.

CONSIDERATION OF REQUEST TO PURCHASE CITY PROPERTY:

Mr. and Mrs. Roger Shippy and Mr. and Mrs. Hatzenbuehler addressed the Commission concerning property owned by the City that they were interested in buying. Ms. Shippy commented that the area was along the Dry Creek area and they had been keeping it mowed and trees trimmed, so they would like to expand their property to that area and have the west side of Dry Creek be the border of their property. Ms. Shippy commented that they realized that this was in the flood plain, but they were not intending to put up any new buildings in that area and the City had the easements already. Commissioner Peltier questioned how wide the area was. After doing some figuring on the computer, Public Works Director Rambat commented that it was about 32’ wide street. Ms. Shippy showed the Commission on power point the area that they were interested in.

Commissioner Peltier questioned if they were in the County. Ms. Shippy stated that was correct. Commissioner Peltier commented that they were surrounded by the City. Mr. Shippy commented that it was that way when they bought. Mr. Hatzenbuehler commented that they had annexed into the City when they built their home. Commissioner Taylor questioned if that portion of property would stay within the City if it was sold to the Shippy’s. Mr. Howard commented that it could stay within the City limits. Commissioner Taylor stated that that was what he would recommend and if it did not, he was not in favor of selling the property. Ms. Shippy pointed out that when the Hatzenbuehler’s built, part of their property was County and part was City.

Mayor Hlavachick questioned if this would have to have a legal survey. Mr. Howard commented that the concern the City would have would be the utilities and showed on power point the area that the City would want to keep clear access. Mr. Howard commented that the City should keep as much of the utilities on City property as possible. Commissioner Taylor asked if there were any other complications that could occur other than keeping the easements. Mr. Howard went over several scenarios, but the flood plain area would be a concern. Mr. Howard added that the accessibility of the main utilities would be a priority.

Mr. Hatzenbuehler pointed out the property that they were interested in purchasing from the City and that it was to the south end of their property and to the east. Mr. Hatzenbuehler stated that his wife had been the one to maintain that area and that would be less for the City to maintain. Commissioner Graf commented that he had been by that area and he did not see where it would be worth a whole lot. Commissioner Graf added that it was well maintained and the City would not have to do that or have the property owners coming in with complaints about weeds.

Commissioner Skaggs asked about when there would be any platting done. Mr. Howard commented that we had not gone there yet. Commissioner Skaggs questioned if this was going to be done when the twenty-six acres were developed. Mr. Howard stated that when the Commission was ready, they would do a sub-division and plat the area for housing. Mr. Howard commented that it was hard to answer any questions until that area was platted.

Mr. Shippy thanked the Commission for listening to their proposal and asked that they take it into consideration. Commissioner Peltier commented that the City would find out what they need and then give the Shippy’s and Hatzenbuehler’s top priority. Commissioner Taylor asked how long it would take to do a plat. Mr. Howard stated that he would visit with Mr. Luttrell, but it could be six months. Mr. Howard added that he would try to have something at the next meeting.

CONSIDERATION AND APPROVAL OF STREET CLOSURES FOR THE SIDEWALK SALE:

Ms. Jan Scarbrough commented that she was requesting the street closures for the annual sidewalk sale on July 10th. Ms. Scarbrough stated that the closures were the same as the last few years and it would be Second Street from Main Street to Jackson Street for the Lion’s Club train and Third Street from Main Street to Jackson Street for the fire department. A motion by Commissioner Peltier to close the streets as requested for the sidewalk sale. The motion was seconded by Commissioner Skaggs and carried unanimously.

CONSIDERATION AND APPROVAL OF LOW BID FOR ONE REPLACEMENT AIR COMPRESSOR:

Power Plant Superintendent Ernie Smith commented that they went out for bids for a replacement air compressor for the diesel at the power plant. Mr. Smith stated that we had purchased the engine in 1994 from the City of Chanute and it dated back to 1972. Mr. Smith explained that the air compressor that was being replaced would be rebuilt and would be a secondary air compressor for the diesel that they had been working on.

Mr. Smith stated that they had sent out three quotes and received three back. Mr. Smith explained that S & S Equipment Company out of Wichita submitted a bid of $21,039.93, Duncan Industrial Solutions out of Oklahoma City submitted a bid of $27,426.21 and Ingersoll Rand from Kansas City, MO. had submitted a bid for $16,361.03. Mr. Smith recommended that the Commission approve the bid from Ingersoll Rand in the amount of $16,361.03. Commissioner Peltier questioned the difference in cost. Mr. Smith stated that they were the same 400 pound start unit. Commissioner Peltier questioned if this was a budgeted item. Mr. Smith stated that it was.

A motion by Commissioner Peltier to approve the bid from Ingersoll Rand out of Kansas City, Mo. for $16,361.03 for the replacement air compressor. The motion was seconded by Commissioner Graf and carried unanimously.

CONSIDERATION AND APPROVAL OF HANDICAP PARKING AT FOURTH AND OAK STREETS:

Police Chief Steve Holmes commented that he had been approached by Mr. Bill Eastes concerning handicap parking in front of his business on the corner of Fourth Street and Oak Street. Chief Holmes stated that the three spaces requested did impair visibility. Mayor Hlavachick questioned that he was willing to trade three spaces for one. Chief Holmes stated that that was correct.

A motion by Commissioner Graf to change the parking to handicap at Fourth Street and Oak Street. The motion was seconded by Commissioner Peltier and carried unanimously.

CONSIDERATION AND APPROVAL OF THE PLAT FOR THE SANDY CREEK ADDITION:

City Manager Howard commented that this was the plat that he had reviewed with the Commission a few meetings ago and had since been approved by the Planning and Zoning Commission. Mr. Howard added that a copy of the approved minutes were also in the packet for the Commission to review.

A motion by Commissioner Peltier to approve the plat for the Sandy Creek Addition. The motion was seconded by Commissioner Skaggs and carried unanimously.

REPORTS:

City Manager:

• Blythe Foundation ground breaking:

Mr. Howard commented that the ground breaking for the Blythe Fitness Center would be at 9:30 tomorrow.

• Dept. of Transportation:

Mr. Howard explained that the Department of Transportation would be having public input hearings this fall for the highway project. Mr. Howard added that they want to hear from the public, but especially elected officials, because getting projects funded in your area was a critical part of the economy.

Building Inspections:

• General Contractor Licensing:

Building Inspector Brad Blankenship commented that the Building Board had met on June 8th and would be working with City Attorney Ken Van Blaricum on issues concerning licensing.

• American Legion building:

Mr. Blankenship commented that he had inspected the American Legion building and discovered that the leak that had been discussed was a drainage leak from the roof and it was hitting a poorly constructed concrete pad that was running back inside the building. Mr. Blankenship stated that he had gotten with a local contractor and it would be about $1,665 to fix it.

Commissioner Peltier questioned that the building was leased by the American Legion. Mr. Howard stated that they pay $20 a year and they were responsible for the building. Commissioner Skaggs asked if the building was worth spending $1,600 on. Mr. Blankenship commented that it was in good shape. Mr. Howard commented that it was in the City’s best interest to maintain the building.

After little more discussion, Commissioner Taylor commented that the City should get it fixed per the estimate of the local contractor.

Electric Departments:

• Cooling tower:

Commissioner Skaggs questioned the completion of the cooling tower. Director of Electric Utilities Kelly Hemphill commented that the tower was 90% complete. Commissioner Skaggs asked when they were going to test the water. Mr. Hemphill commented that they had not tested the cooling part of the water yet. Mr. Hemphill explained that the contractor should be back in about a week and they would be able to rotate the fans.

Finance Department:

• Budget Process:

Finance Director Diana Garten explained that she had put the budget process out for the Commission to look over. The Commission was in agreement that the dates of July 19th and 20th would work for the budget session.

Utility Department:

• On-line bill pay:

City Clerk LuAnn Kramer commented that the on-line bill pay should be ready by July 1st and that the department would be training on Thursday morning on the process it takes to get it set up and maintained.

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

City of Pratt Agendas

Friday, July 16, 2010

7/19/10-City Commission Meeting Agenda

Monday, July 12, 2010

06/21/10-Approved City Commission meeting minutes

Tuesday, July 6, 2010

7/6/10-City Commission Meeting Agenda