Wednesday, April 18, 2012

04/02/12-Approved City Commission Meeting Minutes

MONDAY

April 02, 2012

The Governing Body of the City of Pratt met in Regular Session in the Commission Room located in City Hall.

PRESENT: Jeff Taylor Mayor
Bill Hlavachick Commissioner Victor Graf Commissioner
Gary Skaggs Commissioner
Karen Detwiler Commissioner

ALSO PRESENT: Dave Howard City Manager
LuAnn Kramer City Clerk
Ken Van Blaricum City Attorney
Diana Garten Finance Director
Gary Myers Police Chief
Russell Rambat Public Works Director
Brad Blankenship Building Inspector
Kelly Hemphill Dir. of Electric Utilities
Bruce Pinkall Recreation Director

CALL TO ORDER:

The Mayor called the Regular session to order. Mayor Taylor instructed the Clerk to note that all Commissioners were present.

INVOCATION AND PLEDGE OF ALLEGIANCE:

Mayor Taylor led the staff and audience in the invocation and Pledge of Allegiance.

MINUTES:

A motion by Commissioner Hlavachick to approve the minutes of the March 19, 2012 recessed Commission meeting and the March 19, 2012 regular Commission meeting. The motion was seconded by Commissioner Graf and carried unanimously.

OPEN AGENDA – 1:

• Luca Matei:

Mr. Luca Matei handed out a typed letter to the Commissioners and a few of the City staff and he stated that he wanted to express his anger that he suffers at the hands of the corrupt Pratt Police. Mr. Matei mentioned Wayne Cline and Jeff Ward, but did not want to go into specific details. Mr. Matei stated that there were fifteen murder cases released from jail and three hundred assault cases. Mr. Matei commented that people suffer and he was one of them. Mr. Matei stated that he had never been arrested or sued by anybody in his life until he came here.

Mr. Matei asked that the City Commission direct the City Manager to control these few people and out of control police. Mr. Matei stated that he filed his request for delay on the 27th and was in jail on the 28th and it took six weeks to have a date with the judge. Mr. Matei explained that this would be too much for anybody and he had gotten sick. Mr. Matei commented that the case would end soon, but other people suffer and do not have the power to fight back. Mr. Matei added that any person can make a mistake, but do not destroy the life of a person. Mr. Matei stated that there are four criminal cases against him.

• Youth rally change request:

Youth Pastor Mark Compton commented that Youth Pastor Adam Erickson had been to a Commission meeting earlier and requested the closure of South Jackson Street from Third Street to Fourth Street, but the Municipal Building had been booked for the requested date of April 25th. Pastor Compton stated that they would like to move the Youth Rally to April 29th and requested the same street closure from 5:00 p.m. to 10:00 p.m. Mayor Taylor questioned if this would work okay for the City staff. Recreation Director Bruce Pinkall stated that they have someone on duty during that time, so there should not be any problem. The Commission unanimously agreed to the change in date.

BUSINESS:

CONSIDERATION AND APPROVAL FOR THE USE & CLOSURE OF SIXTH STREET PARK FROM 8 A.M. TO 5 P.M. FOR SECOND ANNUAL PRATT CITY FIRE DEPARTMENT CAR SHOW ON SATURDAY, MAY 29TH:

Fire Captain Todd Hoffman commented that the fire department would be holding their second annual car show and cruise on Saturday, May 29th. Captain Hoffman stated that the car show was successful last year and they had blocked off the driveway south of the parking lot and had people park in the camp ground area. Mayor Taylor questioned if they had closed the street last year. Captain Hoffman stated that they had and they were requesting to do the same thing this year. Captain Hoffman added that the fire trucks will be in the street and they set up the vendors by the power outlets with the cars in the show parking on the grassy area. Captain Hoffman explained that there were forty-nine cars in the show last year and some had come from as far as Wichita, Garden City and Oklahoma. Commissioner Skaggs questioned what they do if it rains. Captain Hoffman stated that they would still have the show, but would not let them go on the grass.

Commissioner Skaggs made a motion to approve the request made by Captain Hoffman. The motion was seconded by Commissioner Graf and carried unanimously.

CONSIDERATION AND APPROVAL OF THE PURCHASE OF A SELF-LOADING WIRE TRAILER USING BUDGETED CAPITAL EQUIPMENT RESERVE FUNDS:

Line Distribution Superintendent Jamie Huber informed the Commission that he had gone out for bids on the purchase of a single self-loading wire trailer that they had been saving money for for several years. Mr. Huber explained the procedure that they were using now to pull conductors overhead, which was by tying it to the truck and that was dangerous. Mr. Huber stated that the department could have used the trailer while they were doing the FEMA projects, but they had gotten the job done.

Mr. Huber stated that they had sent out three bids and two were accepted and one was rejected due to not arriving before the deadline. Mr. Huber explained that Brooks Brothers Trailers submitted a bid for $23,376.62 with a lead time of thirty-seven days, Sauber Manufacturing Company’s bid was $25,657.55 with a lead time of one hundred five days and Nesco did not make the deadline. Mr. Huber stated that this trailer would allow a job to be done by one man and that they did not like to kill out a primary if they did not have to and this equipment would help with that. City Manager Dave Howard questioned how far out it can pull the wire. Mr. Huber commented that it was about 1.2 miles. Commissioner Skaggs asked for clarification as to why the electric department pays sales tax on their purchases. Finance Director Diana Garten stated that it was because they were an enterprise fund and we ran it for profit.

Commissioner Hlavachick made a motion to approve the purchase of the wire trailer from Brooks Brothers Trailers out of Winfield, Missouri in the amount of $23,376.62. The motion was seconded by Commissioner Detwiler and carried unanimously.

CONSIDERATION AND APPROVAL OF RESOLUTION 040212 SETTING A HEARING DATE ON THE UNSAFE AND DANGEROUS STRUCTURE AT 305 NORTH MOUND:

City Attorney Ken Van Blaricum informed the Commission that the property at 305 North Mound had burned totally and the family was unable to clean it up. Mr. Van Blaricum added that this property was dangerous and there was a law in place that would allow the City to take care of it. Mr. Van Blaricum explained that the beginning stage was to pass a resolution to set a hearing date and have that resolution published once a week for two weeks. Mr. Van Blaricum stated that there would be a hearing in front of the Commission to see if the structure was seen as anything other than unsafe and to give the owner until August 1st to repair the property or to move in and repair it and make it safe. Mr. Van Blaricum commented that, if the City does the work, the bill would go on to the property owner’s tax bill, which does not ensure that the City would be reimbursed.

Mayor Taylor questioned if we had been able to locate the owners. Building Inspector Brad Blankenship stated that he had written them a letter and they had called back. Mr. Blankenship explained that the property was owned by Ms. June Dill and they had asked for time to clean it up, which we had given them. Mr. Blankenship added that, after some time, the clean up came to a halt and Ms. Dill’s son stated that they did not have the finances to continue. Mr. Blankenship stated that the City thought that the neighbor to the west of the property was agreeable to cleaning up the property, which, in turn, the Dill’s would turn the property over to him, but that never came through for several reasons. Mr. Blankenship commented that Ms. Dill had visited with him and they cannot go any further and she gave the City permission to do what needs to be done.

Commissioner Skaggs questioned how many lots the house sits on. Mr. Blankenship stated that it was one and a half lots. Commissioner Skaggs questioned if there were any shortcuts to get started immediately since the family cannot go any further. Mr. Blankenship stated that you had to go through the legal channels. Mr. Blankenship added that we ran into the same situation on South Hamilton and that property was still in the owner’s name. Mr. Blankenship explained that the City does not want the property, because we would have to mow it, but we cannot leave it in this condition. Mr. Howard stated that the arrangement with the neighbor did show promise but did not work out and that was the biggest delay. Mr. Van Blaricum stated that it was good practice to give notice when you were going to move in on someone else’s property.

The following Resolution 040212 was then presented to the Commission for their approval: RESOLUTION PROVIDING FOR HEARING ON UNSAFE OR DANGEROUS STRUCTURE PURSUANT TO K.S.A. 12-1750, et seq. AND PRATT MUNICIPAL CODE SECTION 8.08.010 et seq. Commissioner Skaggs made a motion to adopt Resolution 040212 concerning the property at 305 North Mound. The motion was seconded by Commissioner Hlavachick and carried unanimously.

CONSIDERATION AND APPROVAL OF TEMPORARY ELECTRIC SERVICE AGREEMENT:

Director of Electric Utilities Kelly Hemphill commented that this temporary electric service agreement was something that the line distribution department could have on hand when they encounter a customer with an underground or service knocked down by a storm. Mr. Hemphill stated that this would prevent customers from delaying to pursue a permanent service and would help the City keep track of the temporary services following a storm. Mr. Hemphill explained that seven days works pretty good for an individual to get the permanent service unless there had been a major ice storm or a tornado, then the seven days may need to be extended. Mr. Howard commented that the linemen would like to not connect a customer before it was repaired, but sometimes that cannot be done, but this would limit the time the customer would be able to have temporary service.

Commissioner Skaggs commented that he could see the circumstances, but questioned that there was no reference to an extension. Commissioner Skaggs made reference to extensive fire damage and allowing an independent contractor in there. Mr. Hemphill stated that the electric service was disconnected from the house when there was a fire and had to be inspected by the fire chief or inspector. Mr. Hemphill added that the electrician contacts the City when the repairs are made. Mr. Howard commented that there were temporary permits for construction, but there were some customers that would take as much time as they could to have any repairs made and this was for the ones that cannot get it fixed that day, but maybe the next, but no longer than seven. Mr. Howard added that the temporary service would be disconnected at the end of the seven days. Mr. Howard explained that it was unsafe to have a service line lying on the ground.

Commissioner Detwiler questioned if they could use flexible conduit to protect it a little bit. Mr. Hemphill stated that there was not enough time to go get it and the City does not keep it in stock. Commissioner Detwiler questioned if we could not have a reel in stock. Mr. Hemphill stated that it would not be useful since it would have to be cut into selective lengths and, when you had finished at one address, it could not be used at another one. Commissioner Detwiler commented that, if the City would place the line in flexible conduit, it could release them of any responsibility if someone gets hurt. Mr. Hemphill stated that we usually do not do that and it was something additional. Mr. Van Blaricum stated that this does make the property owner more motivated to do something to get the situation fixed. Mr. Hemphill commented that the alternative would be to have the customer without power until repairs were made and that was what we prefer, but it was not always the best solution. Mr. Howard commented that the linemen prefer the safest practice and they want to be fair to the customer.

Line Distribution Superintendent Huber commented that they were aware of the surroundings when they lay a line out, such as whether there are dogs that are tied up or kids that play in the back yard. Mr. Huber added that they have strung conduit over wires that could be exposed, but every situation was different. Commissioner Detwiler commented that they need to take the necessary precautions. Mr. Huber stated that they do and that you can tell if they have been in the back yard a lot. Mr. Huber explained that flexible conduit was pretty costly and every yard was a different path.

Commissioner Skaggs made a motion to approve the temporary service agreement. The motion was seconded by Commissioner Hlavachick and carried unanimously.

OPEN AGENDA – 2:

• Unsafe structure discussion:

Mr. Eric Nystrom, former Commissioner, commented that, during his tenure as Commissioner, they had rebuilt ordinances to condemn property and had left a loop hole to deal with property that needed to get cleaned up immediately, such as structures that have had a fire. Mr. Nystrom stated that the property on Mound Street had the second story dropping down due to the fire and the ordinance should be changed to have it removed within fifteen days. Mr. Van Blaricum stated that those were complaint driven and we waited in this situation because they indicated that they would make an effort to clean it up. Mr. Nystrom commented that that did not happen and Wichita and Newton have something in place so that they can clean up a structure immediately and the City can hold 15% of insurance proceeds. Mr. Nystrom added that these are rare situations, but the end result is the same and this went on too long. City Manager Howard stated that the structure had fallen in and it was dangerous now. Mr. Nystrom stated that the Commission needed to look at the ordinance.

Mr. Van Blaricum stated that Mr. Nystrom was talking about two different ordinances. Mr. Van Blaricum clarified that the dangerous structure ordinance was for an immediate remedy and the other one was for the unsafe structure. Mayor Taylor commented that it was complaint driven and we may be the ones making the complaint. Mr. Van Blaricum stated that the legal steps were to prepare a resolution and wait a month and you still have to go through the process. Commissioner Skaggs questioned if this was dictated by the State. Mr. Van Blaricum stated that it was by State law and City ordinance, which parallel each other. Mr. Nystrom commented that Hutchinson had a fire a couple of months ago and went in the next day and took it down. Mr. Van Blaricum stated that he did not know how they did that, but the City may have visited with the owner about having the building torn down.

Commissioner Skaggs questioned if the house on North Mound had been collapsed by us. Mr. Blankenship stated that the owner had done that, but it just got to be too much, which was when we began negotiations with the neighbor. Commissioner Skaggs commented that, if other Cities do it quickly, then we should look into it. Mr. Van Blaricum stated that he would report back at the next meeting. Mr. Howard stated that, in most instances, there was no insurance, but that was not an excuse to leave unsafe structures. Commissioner Skaggs commented that there are structures that had been brought up, such as the one on South Oak that was brought up by Mr. Neuburger. Mr. Nystrom stated that they were confusing the issue and that North Mound was collapsing. Mr. Van Blaricum repeated that he would report back at the next meeting.

• Mr. Matei’s comments:

Mr. Luca Matei commented that he had seen big signs for a farmer’s market near Hutchinson and American’s health was bad because they do not walk. Mr. Matei stated that there was no movement to produce a product that was good for the consumer and kids. Mr. Matei added that nobody was out there with their heads in the dirt to work.

Mr. Matei commented that he was walking around and was surprised at how many cans and bottles were in the road.

REPORTS:

City Manager:

• Fence at tennis court:

Mr. Howard commented that they were redoing the fence around the tennis courts and would not be reusing it at any of the City’s departments. Mr. Howard explained that he had been contacted by the Humane Society about donating it to them. Commissioner Skaggs clarified that no other department needed it. Mr. Howard stated that was correct, but it was usable but not something that we could use. Recreation Director Bruce Pinkall commented that they did have a number of posts in concrete, so there were some that were shorter since they had been cut off and they had saved a number of upright posts from the left stem wall to be used on the south end of the court, so it was not a total post thing. Commissioner Skaggs questioned if they would be delivered to their door. Mr. Pinkall stated that they could unload it there.

City Attorney:

• Covenant Housing:

Mr. Van Blaricum commented that the City and County Commissions had met on March 19th to talk about Covenant Housing and their tax exempt status. Mr. Van Blaricum explained that Covenant Housing had IRB’s through the City and there was a lease between the two. Mr. Van Blaricum read a section of Article 7.1 of the lease that states ‘If the Tenant applies to have either Project exempted from ad valorem property taxes because of its use in furtherance of the Tenant’s recognized charitable purposes, the Issuer will join in the application for such exemption as requested by the Tenant’.

Mr. Van Blaricum stated that, sometime after 2003, Covenant Housing applied for tax exempt status at both places and they had signed the application as the owner. Mr. Van Blaricum reminded the Commission that the applications were not being considered by the State as they had been held up in the Appraisers office in both Pratt County and Montgomery County because they were not complete.

Mr. Van Blaricum stated that there was a new attorney for Covenant Housing and they want to move forward and all eyes were on the City of Pratt to see if the City Commission was willing to sign the applications for tax exempt status. Mr. Van Blaricum commented that Mr. Jerrod Keifer, attorney for Covenant Housing, had gone to great lengths to assure us that they were a 501c3, but the question was whether we now sign the application for tax exempt status that they could have requested us to sign several years ago. Mr. Van Blaricum reminded the Commission that the 2006 Commission had unanimously voted not to sign the application. Mr. Van Blaricum explained that, having the City Manager or Mayor sign the application tonight, did not mean that we agree that they are exempt, because it has to go before the Board of Tax Appeals.

Mr. Van Blaricum stated that there were time considerations here and Mr. Keifer had emailed him to let him know that, if we had not signed by April 9th, they would file for an injunction release, which would take us into litigation. Mr. Van Blaricum added that the issue was whether we want to voluntarily sign the applications. Commissioner Hlavachick questioned if they had a choice since they had signed the paper work. Commissioner Detwiler commented that that was another Commission. Mr. Van Blaricum stated that was correct and added that Montgomery County was watching us to see what we do.

Commissioner Detwiler commented that she was not in favor of signing. Commissioner Detwiler added that the people that live there do so because they could afford to and other people that were struggling to stay in their homes pay taxes and it was not right that those living in Parkwood would not have to. Mayor Taylor agreed that he was not in favor of signing either. Mr. Van Blaricum stated that Mr. Keifer states that we should sign it as a contractual obligation for Covenant’s exemption. Commissioner Skaggs stated that the lease agreement was signed by a different Commission. Mr. Howard reminded them that they did not sign the application in 2006. Mr. Van Blaricum stated that Montgomery County was the location of a refinery, ethanol plant and fertilizer plant, so the tax issues that were pending in Tax Appeals could make millions of dollars of difference in that County.

Mr. Van Blaricum explained that, by signing it only under an injunctive release, would punctuate that we were signing it because we had to and not because we wanted to. Commissioner Detwiler made a motion to not sign the Covenant Housing agreement for tax exempt status with the State. The motion was seconded by Commissioner Graf. Commissioner Skaggs questioned if we were beholding to that contract since the lease had been signed previously. Commissioner Skaggs added that he was not in favor of signing the application. Mr. Van Blaricum stated that that was the whole question and he would argue that we are and we were beholding to timely signing and have never agreed to sign something nine years later. Commissioner Detwiler stated that Covenant Housing had not held to the agreement either since they were in arrears in paying the taxes. Mr. Howard commented that they paid the taxes in 2005 and then filed for tax exemption. Commissioner Detwiler commented that you still have to pay your taxes even if you were protesting them.

Commissioner Skaggs questioned what City Manager Howard would suggest they do. Mr. Howard stated that they should let a judge order us to do it. Commissioner Skaggs questioned if that would be noted that we were ordered to do it. Mr. Van Blaricum stated that it absolutely would be. Mr. Howard stated that they knew that we were the owners and we had to sign the application, but when we refused they signed it and submitted it. Mr. Howard added that was fraudulent and we were not totally defenseless. Mr. Van Blaricum commented that, at the least, it was not nice and, at the most, it was fraud. Commissioner Skaggs questioned if Mr. Van Blaricum was going to the hearing. Mr. Van Blaricum stated that he was not planning to, but we would see if they follow through with their threat. Mr. Van Blaricum added that if he needs to be there, he would be.

The motion on the floor to not sign the application was voted on and passed unanimously.

Public Works:

• K-61 Construction:

Public Works Director Russell Rambat informed the Commission that the K-61 construction project should start around the 23rd of the month. Mr. Rambat explained how the traffic would flow during the construction with the east side from Highway 54 to where it reduces to two lanes going head to head while they tear out the west side and the center section. Mr. Rambat added that the entrance to Maple Street off of Highway 61 would be closed during construction, but you would be able to come down Maple to get to the church. Mr. Rambat commented that he would keep the Commission in the loop even though we were not directly involved.

Mr. Rambat stated that the Highway 61 and Highway 54 intersection would have the traffic control tweeked during the construction and the south bound traffic would be on the other side of the median to go back to the east. Commissioner Skaggs questioned if they were removing the median. Mr. Rambat stated that it was going back to the way it was without the islands; however, they were going to paint out the islands and turn lanes. Commissioner Detwiler questioned if this would go back to the cemetery road. Mr. Rambat stated that it would go to where it changes to two lanes. Commissioner Detwiler questioned how they would cross over the highway from the cemetery road. Mr. Rambat commented that he would find that out at the meeting KDOT was having Thursday evening here at City Hall. Mr. Howard commented that they had been in contact with the businesses and residents in that area.

• Water leaks:

Mr. Rambat commented that we were going through the season where there are a lot of water leaks. Mr. Rambat explained that it was due to the ground temperature changes and we had to deal with it.

• Recognition:

Mr. Rambat recognized three street employees who had recently completed Workplace, Jobsite and Equipment Safety training. Mr. Rambat stated that they were Eric Gimpel, Dwayne West and Chris Mauk.

Inspection Department:

• Update on Hibbetts Store:

Building Inspector Brad Blankenship informed the Commission that the contractor was here today for the new Hibbett Sport Store and that he would be here for a couple of days.

• Weed:

Mr. Blankenship commented that weed letters had gone out about a month ahead of time due to the unusual winter/spring.

• Election signs:

Mr. Blankenship reminded the Commission candidates that they would need to have all their signs picked up a week after the election.

• RV discussion:

Commissioner Skaggs questioned if there was an ordinance concerning RV’s being parked in driveways. Mr. Blankenship commented that RV’s that were just sitting plugged in were a zone violation and we usually give the owner a week or two to move it once we get a complaint. Commissioner Skaggs questioned how long it could be in a driveway and not be used or plugged in. Mr. Blankenship stated that they could not do that. Commissioner Skaggs asked if it could be moved every so often. Mr. Blankenship commented that it could be on the street for 72 hours. Mr. Van Blaricum repeated that, an RV in the driveway, front or back yard for weeks at a time, was a zoning violation. Mr. Van Blaricum stated that it was not a crime or a traffic violation, but a zoning violation.

Commissioner Skaggs questioned how long someone could leave a 40’ long RV that was barely inside the curb. Mr. Van Blaricum stated that it would be overnight. Commissioner Skaggs asked if the police would tell them to move it if it was a zoning violation. Mr. Van Blaricum commented that it would be enough for a zoning violation if we were convinced that they were not going to move it. Commissioner Skaggs questioned if they could be forced to move it. Mr. Van Blaricum stated that it would be complaint driven. Commissioner Detwiler questioned if there was something in the ordinance that would allow the item to be beyond the front of the house. City Manager Howard commented that it had to be behind the front of the house. Mr. Blankenship added that it had to be in an enclosed structure behind the house.

Commissioner Skaggs commented that they distract from the property. Mr. Blankenship commented that we try to work with the owner and usually give them time to get it taken care of. Mr. Blankenship stated that, the situation on Sunrise Avenue, was due to medical issues and they needed more time. Commissioner Skaggs commented that, if there was no additional space, they needed to respect the property appearance. Mr. Blankenship stated that it was complaint driven and nobody had ever said anything about it during the winter.

Mr. Blankenship stated that we try to be fair. Commissioner Skaggs asked if the offended party knows who complained. Mr. Blankenship stated that they do not. Commissioner Skaggs commented that they do not have to know that there was a complaint, but that we were following the ordinance. Mr. Blankenship stated that that was correct. Mr. Van Blaricum stated that they could have the ordinance make it a misdemeanor crime and that might give us better leverage when working with people. Commissioner Skaggs commented that Mr. Van Blaricum might bring something for the Commission to consider. Mr. Van Blaricum stated that he would do that.

Electric Department:

• Generation:

Director of Electric Utilities Hemphill commented that they had started the 14 mega watt unit on Monday of last week and the generator was tested on Tuesday. Mr. Hemphill stated that Holcomb had a failure and had requested that we generate all we could on Thursday. Mr. Hemphill explained that we had untied from Sunflower’s grid on Sunday and used our own power.

Mr. Hemphill explained that they had worked on the transformer this morning and we would be supporting our own load for fifteen days.

• Poles hit:

Commissioner Skaggs questioned if the poles could be set back more on First Street to prevent trucks from hitting them. Mr. Hemphill explained that the set-backs had to do with property lines, sidewalks, waterlines and set-backs set by the State of Kansas. Mr. Hemphill stated that they do the best they can when they were replacing one.

Recreation Department:

• Tennis Court project:

Recreation Director Pinkall commented that Sport Court had painted the lines at the tennis court and it should be up and running later this week.

• State Tournament:

Mr. Pinkall informed the Commission that the State of Kansas had awarded Pratt High School the regional Sub-State softball tournament and that would be two full days. Mr. Pinkall added that he thought there would be eight teams in the tournament.

Power Plant:

• Steam Unit Test:

Power Plant Superintendent Ernie Smith informed the Commission that they had preformed a test on the steam unit last week and they were doing another performance test today due to the citizens of Pratt needing more power than the steam unit could produce. Mr. Smith commented that the cool weather would limit us to produce power with only one steam unit. Mr. Smith stated that, with Holcomb down, they required us to produce 25 megs, which was 12 out of the steam unit and 13 out of the diesel unit. Mr. Smith added that we had made a little bit of money on that.

Commissioner Skaggs questioned how much difference in price we were getting when we resell our power. Mr. Smith stated that you get your price and add 10% to that. Mr. Howard added that it included overtime and benefits. Mr. Howard explained that we pushed generation on Wednesday and, since we brought people in, those overtime costs were figured in. Mr. Howard stated that it was about $400 an hour when we were pushing.

Police Department:

• Camera update:

Police Chief Gary Myers commented that it had been about three months since the cameras were installed in the police vehicles and it was a good system. Chief Myers explained how the system worked and that the hardware was a camera trigger box and microphone that connected to the computer. Chief Myers commented that the computer, microphone and camera all work off of the electrical system of the car.

Chief Myers stated that the microphone works fine when it is charged. Chief Myers explained that most of the problems had been operator error and training issues. Chief Myers stated that this was sensitive equipment and, if they forget to unplug Cop Trax, it could cause issues. Chief Myers explained that he had replaced three trigger boxes already, but they were under warranty. Chief Myers added that the biggest issue was the microphones being charged, but he had purchased two new microphones to keep in the office and one would be for the night shift and one for the day shift.

Mayor:

• Vote:

Mayor Taylor reminded everyone to get out and vote. Mayor Taylor wished the two candidates for City Commissioner good luck.

Commission:

• Noon Whistle:

Commissioner Detwiler questioned why the noon whistle had been going off more than once. Mr. Hemphill stated that that was an emergency siren that was being tested and, if they do not go off the first time, they try it again. Commissioner Detwiler asked if we had found out if they had to blast it as long as they do. Mr. Hemphill explained that it was activated at the LEC and there was no way to change it.

• Compost:

Commissioner Skaggs questioned when they would start picking up the yard trash. Mr. Rambat stated that they started this week.

ADJOURN:

Commissioner Hlavachick made a motion to adjourn. The motion was seconded by Commissioner Detwiler and carried unanimously.


___________________________________________
JEFF A. TAYLOR, Mayor






(SEAL)

ATTEST:


________________________________
LUANN KRAMER, City Clerk

Wednesday, April 11, 2012

4/16/12-City Commission Meeting Agenda

MONDAY

APRIL 16, 2012

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 – April 02, 2012 Regular Commission meeting

4. Certification of April 02, 2012 City General Election – LuAnn Kramer, City Clerk

5. Oath of Office Given to Newly Elected City Commissioners – LuAnn Kramer, City Clerk

6. Presentation of Mayor’s Plaque – Dave Howard, City Manager

7. Reorganization of Pratt City Commission – Mayor and Commission

7.1 Nomination for Mayor

7.2 Nomination for Vice-Mayor

7.3 Designation of Official City Depositories – The Peoples Bank, First National Bank, First State Bank

7.4 Designation of Official City Newspaper – The Pratt Tribune

8. OPEN AGENDA - 1

9. BUSINESS:

9.1 Consideration and Approval of the Re-Appointment of Greg Hayes to the Pratt Library Board – Rochelle Westerhaus, Board Secretary

9.2 Consideration and Approval of Low Bid for a Mower for the Parks Department using Capital Equipment Reserve Funds – Russell Rambat, Public Works Director

9.3 Update on Downtown Park Area – Leadership 2000 Plus Representative

9.4 Pratt Promotion Concept – Pratt Has Something For You – Bruce Pinkall, Recreation Director

10. OPEN AGENDA – 2

11. REPORTS

11.1 City Manager
11.2 City Attorney
11.3 Department Heads
11.4 Mayor
11.5 City Commission

12. ADJOURN

04/16/12-Joint City/County Commission Meeting Agenda

MONDAY

APRIL 16, 2012

PRATT CITY COMMISSION – JOINT CITY/COUNTY COMMISSION MEETING

COMMISSION ROOM – 11:00 A.M.

1. CALL RECESSED MEETING TO ORDER (Remind audience that meeting is being recorded and/or taped.)

2. ROLL CALL

3. BUSINESS:

Possible Topics of Discussion:

3.1 County Zoning

3.2 Covenant Housing Tax Issue

3.3 General Discussion on City/County Issues – Mayor, City Commission, County Commission and Staff

4. ADJOURN

Monday, April 2, 2012

3/19/12-Approved City Commission Meeting Minutes

MONDAY

March 19, 2012

The Governing Body of the City of Pratt met in Regular Session in the Commission Room located in City Hall.

PRESENT: Jeff Taylor Mayor
Bill Hlavachick Commissioner Victor Graf Commissioner
Gary Skaggs Commissioner
Karen Detwiler Commissioner

ALSO PRESENT: Dave Howard City Manager
LuAnn Kramer City Clerk
Ken Van Blaricum City Attorney
Diana Garten Finance Director
Gary Myers Police Chief
Russell Rambat Public Works Director
Brad Blankenship Building Inspector
Kelly Hemphill Dir. of Electric Utilities
Bruce Pinkall Recreation Director

CALL TO ORDER:

The Mayor called the Regular session to order. Mayor Taylor instructed the Clerk to note that all Commissioners were present.

INVOCATION AND PLEDGE OF ALLEGIANCE:

Mayor Taylor led the staff and audience in an invocation and the Pledge of Allegiance.

MINUTES:

A motion by Commissioner Hlavachick to approve the minutes of the March 05, 2012 regular Commission meeting. The motion was seconded by Commissioner Graf and carried unanimously.

OPEN AGENDA – 1:

No one in the audience wished to address the Commission.

BUSINESS:

CONSIDERTION AND APPROVAL OF ORDINANCE 1201 ANNEXING PROPERTY INTO THE CITY:

City Manager Dave Howard commented that this was property that Mr. Dale Withers was building an Industrial Park on. Mr. Howard explained that this was a contiguous annexation; therefore, it took an ordinance to annex the property and there would be no hearing or recommendations from the Planning and Zoning Board. Mayor Taylor questioned if there were buildings there now. Mr. Howard stated that there were two there now and there would be two more later. Mayor Taylor questioned if Mr. Withers had applied for the revitalization program. Mr. Howard commented that he had not asked him, but he was certain that he had.

The following Ordinance 1201 was then presented to the Commission for their approval: AN ORDINANCE ANNEXING LAND TO THE CITY OF PRATT, KANSAS. A motion by Commissioner Skaggs to approve Ordinance 1201 annexing land into the City. The motion was seconded by Commissioner Graf and carried unanimously.

CONTINUED DISCUSSION ON CHRISTMAS LIGHTS FOR SIXTH STREET PARK:

• 12 Days of Christmas:

Ms. Deb Goyen explained to the Commission that she was back in front of them to see if they had decided anything further on the Christmas lights for Sixth Street Park. Ms. Goyen commented that one concern everyone had had was for a storage building and she had a cost from Keesler Construction, but had contacted a couple of other contractors since then. Ms. Goyen stated that Sturdi Built had not been interested in giving her a bid, but Cleary Construction out of Derby had given her a bid of $13,000 for a 40’ shed. Ms. Goyen stated that the City and Township 12 firemen had offered to put the decorations up and take them down.

Ms. Goyen reminded the Commission that the funding for this project would come out of Travel and Tourism funds. Ms. Goyen stated that she had received a couple of calls concerning $500 and $3,000 donations if we did this project. Mayor Taylor questioned what the total price was for the decorations. Ms. Goyen stated that it would cost $21,000 for LED’s and $17,000 for regular bulbs. Ms. Goyen explained that the LED’s were more expensive, but would pay for themselves in three year’s time. Ms. Goyen added that she was trying to change to LED’s display by display, which was expensive, but would pay for itself over time. Mayor Taylor asked when the display would be delivered. Ms. Goyen stated that she could tell them when it would work best.

Mayor Taylor questioned if she would need the shed right away. Ms. Goyen stated that there was probably room to store them in the current shed, but there would be no workspace. Commissioner Skaggs questioned if one of the fire departments would have room to store them. Ms. Goyen stated that she had not thought about that, but she would ask. Ms. Goyen added that they like to have all the decorations in one place so the kids working on the bulbs do not have to be moved around. Mayor Taylor suggested that the shed be discussed with the department heads during budget and see if any of them need additional storage space. Ms. Goyen commented that there should be room for mowers to be stored once the new decorations were in there. Commissioner Skaggs questioned if the Cleary Construction bid was good for thirty days. Ms. Goyen stated she assumed that it was. Mayor Taylor commented that we could put that on the next agenda.

City Manager Dave Howard commented that they also needed to discuss the electrical issue to hook up the new decorations. Commissioner Skaggs questioned what the electrical pedestals were like. Director of Electric Utilities Kelly Hemphill stated that they were metallic and stuck out of the ground with openings on both sides. Commissioner Skaggs asked if they were anchored so that they would be vandalism proof. Mr. Hemphill stated that it was hard to make them vandalism proof. Commissioner Skaggs questioned if the Christmas decorations should be moved to the west side since that was where the Pilot Club had their train. Ms. Goyen commented that there were no decorations on the ball diamond. Commissioner Skaggs stated that he was thinking of how they could be used more than once a year. Mr. Howard explained that there were other Pilot Club events and the Firemen’s car show.

Commissioner Hlavachick commented that LED lights last longer and were brighter. Ms. Goyen stated that you can see the LED lights at the lake and they do not go out. Commissioner Detwiler questioned if they were more economical. Ms. Goyen stated that they absolutely were and they would save about a third on electricity. Mr. Hemphill commented that the cost for the electricity in 2011 was about $5,700. Commissioner Detwiler questioned how much they received in donations at the park. Ms. Goyen stated that it was around $1,500 to $2,000 and that was enough to pay for the bulb replacements. Commissioner Detwiler suggested moving the donation box to the driver’s side. Ms. Goyen commented that that was where it started out.

Commissioner Graf questioned if there was no room for these decorations in Lemon’s Park. Ms. Goyen stated that there was not and they were maxed out on electricity. Commissioner Skaggs questioned if the viewers were about the same. Ms. Goyen stated that they were and the last count had been at 26,000 vehicles. Ms. Goyen added that weather makes a big difference.

Commissioner Hlavachick made a motion to buy the LED bulbs for the 12 Days of Christmas at $21,083. The motion was seconded by Commissioner Skaggs and passed with four approved votes and one opposed vote by Commissioner Graf.

• Electrical work:

Mayor Taylor questioned if we had the materials on hand. Mr. Hemphill stated that they do not have all of it on hand, but they would also have to buy back to replace their stock. Commissioner Skaggs questioned if this money would come from Tourism funds. Mr. Howard stated that it could, but there were funds in the electrical budget also. Commissioner Skaggs commented that a majority of this project could be paid for by bed tax and questioned if there was enough money in Tourism. Finance Director Diana Garten stated that there was plenty of money there.

Commissioner Hlavachick made a motion to approve the $14,177.32 for electrical materials and parts to apply power to the 12 Days of Christmas using Tourism Funds. The motion was seconded by Commissioner Skaggs. Commissioner Detwiler voiced her concern with this not being as secure as Lemon’s Park. Commissioner Graf stated that the reason he had voted no was that he could not see spending $20,000 and then see them get torn up. Mayor Taylor commented that that happens in Lemon’s Park too. Commissioner Graf explained that, working in the school system, he sees kids go home without food and it was more apt to happen in Lemon’s. Commissioner Graf added that he would not have had a problem with them if they were going to be in Lemon’s Park. Mayor Taylor commented that you cannot use Tourism money for humanitarian purposes. Commissioner Skaggs commented that you were going to have vandalism anywhere, but they cannot unscrew the LED bulbs. Ms. Goyen stated that some vandalism had happened when Lemon’s Park was locked too, but there had been no problems in the last five years. The motion on the floor was voted on and passed with 3 approved votes and 2 opposed votes by Commissioner’s Detwiler and Graf.

Ms. Goyen stated that she would contact Cleary Construction to let them know we were thinking about the building. Mayor Taylor suggested talking to Park Superintendent Mark Eckhoff or Recreation Director Bruce Pinkall to see if they had any need for the additional space. Commissioner Detwiler questioned if the shed would have a concrete floor. Ms. Goyen stated that she did not think so, but she did think there would be concrete footings. Commissioner Detwiler questioned if the shed would be attached or directly behind the current one. Ms. Goyen explained that it would be attached and that would save a wall and they would also put in a door. Mayor Taylor suggested giving the information to Mr. Howard. Mr. Howard commented that he would probably not do this for this year, but go out for bids later.

CONSIDERATION AND APPROVAL OF LEASE AGREEMENT FOR USE OF COMMUNITY CENTER WITH SENIOR CITIZEN’S ORGANIZATION:

Mr. Van Blaricum reminded the Commission that they had reviewed this agreement a year ago and this was almost exactly the same with the exception of the dates being changed. Mayor Taylor questioned if they had the same area. Mr. Van Blaricum stated that they did and he felt it was good to review these agreements yearly. Commissioner Skaggs questioned if their only expense was the utilities. Mr. Van Blaricum stated that that was correct.

Commissioner Graf made a motion to accept the lease agreement with the Senior Citizen Center. The motion was seconded by Commissioner Detwiler and carried unanimously.

CONSIDERATION AND APPROVAL OF APPOINTMENT TO PRATT AIRPORT AUTHORITY BOARD:

City Manager Howard commented that the term for Mr. Kelly Garrettson would be expiring in April and Dr. Ian Kovach was willing to replace him. Mr. Howard added that Dr. Kovach was a pilot, so he would be an asset to the Board. Commissioner Hlavachick made a motion to approve the appointment of Dr. Ian Kovach to the Airport Board. The motion was seconded by Commissioner Skaggs and carried unanimously.

CONSIDERATION AND APPROVAL OF RE-APPOINTMENT TO PRATT BUILDING BOARD:

Building Inspector Brad Blankenship stated that the term for Mr. Gary Thimesch was expiring, but Mr. Thimesch was willing to serve an additional three year term on the Building Board. Mr. Blankenship added that Mr. Thimesch was an asset to the board. Commissioner Detwiler made a motion to approve the appointment of Mr. Gary Thimesch to another term on the Building Board. The motion was seconded by Commissioner Graf and carried unanimously.

CONSIDERATION AND APPROVAL OF BID FOR NEW POLICE VEHICLE:

Police Chief Gary Myers commented that he had sent out inquiries for bids for a new police vehicle to Doug Reh Chevrolet and Lanterman Motors. Chief Myers stated that the low bid was for a 2013 Ford Taurus Police Interceptor for $22,231.36 and Doug Reh Chevrolet had bid $23,250. Chief Myers explained that the bid proposal had included a 2006 Impala for trade-in and Lanterman Motors offered $2,500, but Doug Reh Chevrolet had not included an offer for the trade-in.

Mayor Taylor questioned when the 2013 models would be coming out. Chief Myers stated that they were taking orders now. Chief Myers explained that the 2013 was built for this purpose and the shell was that of the Taurus, but the specifics were to the Police Interceptor with a lot of safety features. Commissioner Hlavachick questioned if most police packages were relatively the same. Chief Myers stated that they were and that they had heavy duty alternators, special seats and brakes. Mayor Taylor questioned if the cages would fit. Chief Myers stated that he was not sure, but it could be retrofitted or one could be purchased.

Commissioner Hlavachick made a motion to allow the purchase of the 2013 Taurus Police Interceptor from Lanterman Motors for $22,231.36. The motion was seconded by Commissioner Graf. Commissioner Detwiler commented that she would like to see the used vehicles go out for bid as to trading them in. Mayor Taylor questioned what our past experience was with that. Public Works Director Rambat stated that, if we get a enough stuff together and get a good draw, it could be to our advantage. Chief Myers explained that this car had high mileage and was in very sad shape, so he did not want to burden another department with it. The motion and second were voted on and passed unanimously.

OPEN AGENDA – 2:

No one in the audience wished to address the Commission.

REPORTS:

City Manager:

• County P & Z meeting:

City Manager Howard commented that the County would be having their Planning and Zoning Board meeting tonight at 7:00 p.m. at the Fair Grounds.

• Ethanol Plant interest:

Mr. Howard stated that he had visited with Mr. Jeff Wilkinson from the Ethanol Plant and there were several other companies looking at the plant, but they did not want to be disclosed yet. Mr. Howard added that they were looking at arrangements to get the plant going sometime this year. Commissioner Hlavachick commented that it was nice to hear that there was some movement.

City Attorney:

• SRS funding:

City Attorney Van Blaricum commented that the State had announced a year or so ago that they would be closing nine different SRS offices, which included Pratt. Mr. Van Blaricum reminded the Commission that, after talking, they had decided they would leave them open if we paid rent. Mr. Van Blaricum added that, in those negotiations, the Director had indicated that he would push to have the funding restored for those offices and there was now a bill pending that would restore it, so they had not completely forgotten us.

Public Works:

• Sycamore Addition:

Public Works Director Russell Rambat commented that Water Superintendent Kelvin Clay had laid 900’ of water main along Fincham Road to Highway 54 and 300’ of sewer main in the last week and a half. Mr. Rambat stated that they would be setting man holes when things dried up. Mr. Rambat added that several employees had been helping Mr. Clay and that was a definite benefit to the City.

• Pump at pool:

Mr. Rambat stated that he was close to finalizing the work on the pump at the pool. Mr. Rambat explained that he would be finishing the plumbing and testing it out in the next couple of weeks.

• Crack sealing:

Mr. Rambat stated that the street department had been doing some crack sealing since the weather was nice. Mr. Rambat commented that that would be the target area for chip seal, depending on the price this year.

• KDOT Training:

Mr. Rambat recognized Mr. Chris Mauk, Mr. John Kissell and Mr. Mark Thieme for attending the Asphalt Road and Street Maintenance class in Hutchinson that was put on by KDOT.

• Centennial Park restroom:

Mr. Rambat informed the Commission that Park Superintendent Mark Eckhoff would be roughing in the plumbing for the restroom at Centennial Park, but should be done by the end of the year. Mr. Rambat explained that they were keeping it basic. Commissioner Skaggs questioned if it was a unisex restroom. Mr. Rambat stated that that was correct.

• Wastewater rehab:

Mr. Rambat stated that the wastewater plant employees and engineers had been working on the plant’s rehab project. Mr. Rambat commented that the plans were being sent to KDHE and construction should begin sometime this year.

• Lemon’s Park:

Mayor Taylor questioned if it was the parks department that had been doing the clearing up on the south side of the road in Lemon’s Park. Mr. Rambat stated that it was. Mayor Taylor asked that Mr. Rambat let them know that it looked nice and he added that that should help with the flooding issues we have sometimes.

Building Inspection:

• Rezoning at VFW:

Building Inspector Brad Blankenship informed the Commission that the Planning and Zoning Board had rezoned the four lots at the VFW from Office and Institution to Highway Services. Mr. Blankenship added that they were putting in a restaurant.

Electric Department:

• Operating Dual Fuel Engines:

Director of Electric Utilities Hemphill informed the Commission that they would be operating the two duel fuel engines from 9 a.m. to 5 p.m. due to Southern Pioneer having to do some repairs at their substation. Mr. Hemphill explained the repair that should take only two to three hours, but had been scheduled for longer in case they needed the extra time. Mr. Hemphill stated that Sunflower would be paying for half of the generation costs, which would be the same cost if we had purchased the energy.

Recreation Department:

• MS State rally:

Recreation Director Pinkall stated that Police Chief Myers, Chamber Director Jan Scarbrough and he had met with a group concerning the MS State rally that would be held in Pratt the weekend of September 8th. Mr. Pinkall explained that there would be 200 to 250 bikes, 125 volunteers and the first event would be on Saturday. Mr. Pinkall commented that they would be riding 100 miles on Saturday, with a banquet Saturday evening at the Fair Grounds and another ride of 50 miles on Sunday. Mr. Pinkall stated that the headquarters would be at the Municipal Building and some would camp there and keep their bikes locked up there. Mr. Pinkall added that the schools would be letting them use their showers.

Mr. Pinkall stated that they may be coming back to the Commission to request closing Jackson Street between Third and Fourth Streets. Mr. Pinkall explained that they would use the Liberty parking lot and there would be music, food and massages for the bikers. Mr. Pinkall commented that they would be catering in three meals and would be using local vendors as much as possible. Mr. Pinkall stated that we could have this event for two or three years if they felt that it went good this year.

Commission:

• Existing attractions:

Commissioner Skaggs commented that he had been on the Historical Society Board and he felt there was a problem with people knowing that the Museum even exists. Commissioner Skaggs suggested putting ‘Things to see and do in Pratt’ on the kiosk and in flyers that people may pick up. Mr. Pinkall stated that they have some like that that list the skating rink, B-29 Memorial and the Wildlife and Parks Museum. Commissioner Skaggs stated that Mr. Pinkall had done a good job promoting Pratt during the downtown construction and asked that he keep up the good work.

• Community Center automatic door:

Commissioner Hlavachick commented that the automatic door at the Community Center on the east side did not work all the time. Mr. Pinkall stated that he would have it worked on.

• Appreciation to Police Dept.:

Commissioner Hlavachick stated that a local citizen had appreciated the work of the Pratt Police Department. Commissioner Hlavachick related that story that she had been out working and she was bathed in a bright light. Commissioner Hlavachick continued stating that the officer had seen a shadow and put the spot light on her and she had to appreciate that.

ADJOURN:

Commissioner Hlavachick made a motion to adjourn. The motion was seconded by Commissioner Detwiler and carried unanimously.


_____________________________________
JEFF A. TAYLOR, Mayor





(SEAL)

ATTEST:

___________________________________
LUANN KRAMER, City Clerk

03/19/12-Approved Recessed City Commission Meeting Minutes

MONDAY

March 19, 2012

The Governing Body of the City of Pratt met in Recessed Session in the County Commission Room located at the Court House.

PRESENT: Jeff Taylor Mayor
Bill Hlavachick Commissioner Victor Graf Commissioner
Gary Skaggs Commissioner
Karen Detwiler Commissioner

ALSO PRESENT: Dave Howard City Manager
LuAnn Kramer City Clerk
Ken Van Blaricum City Attorney


CALL TO ORDER:

The Mayor called the Recessed session to order. Mayor Taylor instructed the Clerk to note that all Commissioners were present.

BUSINESS:

DISCUSSION ON COVENANT HOUSING TAX ISSUE:

City Attorney Ken Van Blaricum commented that the reason for meeting with the County was that there was an issue that had arisen concerning the lack of taxation for Parkwood Village (aka Covenant Housing). Mr. Van Blaricum explained that there were IRB’s on the property in Pratt and Coffeyville (Montgomery County) in 2003-2004. Mr. Van Blaricum added that there had been a lease agreement between both Covenant Housing facilities and the City and the lease provided that, if Covenant Housing applied for tax exempt status from property tax for either project due to the tenant’s recognizable status, the City would agree to join them.

Mr. Van Blaricum stated that Covenant Housing did file an application for tax exempt status in Montgomery County, but neglected to show that the City of Pratt was the owner of the property. Mr. Van Blaricum added that, as owner, the City of Pratt should have signed the application. Mr. Van Blaricum explained that the Pratt County Appraiser advised the attorney who filed the application that it had defects, but he did not respond with enough information to get the application in good shape; therefore, the application had set on the Appraiser’s desk for years.

Mr. Van Blaricum commented that, just recently, Covenant Housing had expressed an interest in this again and wants the City involved by signing the application and have it be retroactive for several years. Mr. Van Blaricum introduced Mr. Jerrod Keifer, attorney from Wichita, who was presently representing Covenant Housing. Mr. Van Blaricum stated that, after meeting with the City Commission, they had decided to meet with the County to bring them in the loop. Mr. Van Blaricum commented that he understood that there was litigation in Montgomery County with the Board of Tax Appeals in Topeka and, if the City refuses to sign the application for tax exempt status, it could come to litigation asking us to sign.

County Counselor Bob Schmisseur commented that the Board of Tax Appeals needed to decide up or down and he would defend the County Appraiser for determining that the application was incomplete. Mr. Schmisseur added that it was significant whether the City wants to sign the application or not. Mayor Taylor questioned how many years they wanted to go back. County Appraiser D.J. McMurry stated that it was from 2006 forward and that Covenant Housing had paid the 2005 taxes. Mr. McMurry added that the IRB’s had come off in 2004. Mr. Schmisseur commented that the taxes were probably in excess of $100,000. Mayor Taylor questioned if Mr. McMurry had contacted Covenant Housing concerning the documents not being signed properly. Mr. McMurry stated that he had.

Mr. Keifer commented that, when a taxpayer files for exemption, they submit it to the County Appraiser, who recommends whether it should be granted or not. Mr. Keifer added that the Board of Tax Appeals then decides to accept it or not. Mr. Keifer explained that the application was filed in 2006 and they were contacted by the Pratt County Appraiser and he had indicated that the exemption application should have been under the City of Pratt due to the lease agreement. Mr. Keifer added that, at some point and time, he received the documents and, in turn, contacted the County Appraiser and attorneys. Mr. Keifer stated that Montgomery County had filed the application without it being filed under the City and it had been declined. Mr. Keifer explained that Montgomery County was now asking for the City to join in the application for exemption.

Commissioner Skaggs questioned if they wanted the City to file the application for permanent exemption. Mr. Keifer stated that that was correct. Mr. Schmisseur stated that Covenant Housing had made payments in lieu of taxes for the ten years under the bond. Commissioner Skaggs commented that Pratt has an upscale facility and qualified to be a charitable organization, but stated that he was not comfortable with them asking for a permanent exemption when they appear to be self-sustaining. Mr. Keifer commented that they were asking for the City to join in the application due to the lease requirements and, according to Statutes, they were entitled to the exemption. Mr. Keifer added that the Statute includes elderly housing, but the County would make the ultimate decision.

Mr. Schmisseur commented that he did not understand why people in Wichita would want to own upscale property in Pratt and Coffeyville and that most folks who choose to do charitable work try to do it close to home. Mr. Keifer commented that Covenant Housing was a 501c3 and owned by various members of the community and the owners were people who want to give back. Mr. Keifer stated that 51% of the people at Parkwood Village were paying below market rates, but were evaluated case by case and that included Medicare patients. Mr. Schmisseur stated that there was not a State figure that says what Parkwood Village should be charging per month and that they set their price at each level. Mr. Schmisseur added that Covenant Housing was not accountable to anyone but themselves. Mr. Keifer stated that there was no list price, but the company under Covenant Housing had taken a substantial loss. Mr. Keifer added that they were making a little money now, but there were no requirements.

Mr. Van Blaricum questioned if Mr. Keifer knew the term of the lease. Mr. Keifer stated that he did not, but it was longer than ten years. Commissioner Detwiler questioned when they started accepting Medicare. Mr. Keifer stated that he did not know, but they did now. County Commissioner Dwight Adams questioned if they were all treated the same. Mr. Keifer stated that they were. Commissioner Detwiler stated that she had asked a ‘Ms. Thomas’ about Medicare in November 2005 and she had said that Medicare was for hospitals or skilled care and did not pay for long term care. Commissioner Detwiler added that the minutes reflect that Ms. Thomas stated that Parkwood Village was not licensed for Medicaid. Commissioner Detwiler clarified that they were now accepting Medicaid and that there was no need for that assistance in September 2005. Mr. Keifer stated that he had rent rolls that he could provide to answer that question.

County Appraiser McMurry stated that he had sent the application to the Board of Tax Appeals. Mr. Van Blaricum questioned what the next step would be. Mr. McMurry stated that there would be a hearing. Mr. Van Blaricum questioned if it would be appropriate for the County, or any other interested party, to attend that hearing. Mr. McMurry stated that it would be. Mr. Van Blaricum commented that the question now would be to what extent we want to pursue this or if we should sign the application and let it go through the process and let Topeka make the decision. Mr. Van Blaricum added that the City and/or County should be heard and that that could result in $100,000 in tax revenue. Mr. McMurry questioned if the bonds were twenty year bonds. Mr. Keifer stated that there was approximately $3 million left outstanding on the bonds. Mr. McMurry clarified that the ownership stays until the bonds were paid off. Mr. Keifer stated that that was correct and explained that the deed to the property would be turned over by the City to Covenant Housing once those bonds were paid off.

Commissioner Adams questioned if Coffeyville was involved. Mr. Keifer answered that they were not involved in the litigation and that Pratt County had filed their application a couple of weeks ago and Montgomery County had filed theirs a few months ago. Mr. Schmisseur commented that there could be litigation, but the Board of Tax Appeals would decide if it fits. Mr. Schmisseur explained the exempt property according to the Kansas legislature and, with complaints of the local tax being high, the wealth of the County was not subject to tax. Mr. Schmisseur stated that it was not his recommendation that we pay $100,000 for a lawyer to go fight this thing, because he felt that we would lose. Mr. Schmisseur suggested visiting with Representative Mitch Homes or Senator Ruth Teichman to let them know that they cannot be passing exemptions every time one comes around, because Cities, Counties and USD’s need to do their job and balance their budgets.

Mr. Schmisseur stated that Parkwood Village was nicer than any other nursing home or assisted living facility and he found it offensive that they would pay no property tax. Commissioner Skaggs commented that it bothered him that they were requesting an exemption forever, but that he did not have a problem with an exemption to help build or to get going. Commissioner Skaggs added that they should have to start paying taxes when the bonds were finished.

Mr. Van Blaricum stated that it made sense for Pratt to communicate with Montgomery County since they were facing the same issue as us. Mr. Van Blaricum added that we could see what direction they chose to go and then we would do about what they did, unless we radically disagree. Commissioner Hlavachick questioned how they could get the exemption if the application was invalid. Mr. Van Blaricum pointed out that that would be the City’s argument. Mr. Schmisseur stated that the City was the owner and they did not have the authority to sign for someone else. Mr. Van Blaricum commented that Covenant Housing also had a good argument, so either we win or they will.

Commissioner Skaggs questioned if we wanted someone to represent us. Mr. Van Blaricum stated that that was what we needed to decide. Commissioner Skaggs commented that it was the County that was losing money. Mr. Schmisseur stated that the County was the conduit that collects the dollar, which the City, County, State and USD’s get a cut of. Mr. Schmisseur suggested that the County would be interested in discussing payment in lieu of taxes. Mr. Keifer commented that that was allowable through the IRB obligations; otherwise, they were subject to tax. Mr. Schmisseur stated that it was more complex than that. Mr. Van Blaricum stated that we could win, lose, or negotiate the issue of back taxes if we get into litigations in Topeka. Mr. Schmisseur commented that the County could negotiate the back ones and discuss whether or not to file appeals. Mr. McMurry stated that appeals had nothing to do with back taxes.

Mr. Van Blaricum questioned if tax bills had been issued. Mr. Keifer stated that Covenant Housing had not ever received any. Commissioner Detwiler questioned whether or not an annual claim had been filed. Mr. Keifer stated that Covenant Housing had had a ten year exemption, but that had expired and did not apply to today. Mr. Van Blaricum commented that he would get hold of Coffeyville to see how they were addressing the situation and then we could develop a plan that we want to follow. Mr. Van Blaricum added that we need to negotiate some type of settlement and get the property back on the tax rolls, but we could not do much until we talk to Coffeyville. Mr. Van Blaricum agreed that Mr. Schmisseur was correct when he said that we do not want to pay a fancy attorney if we were fighting a losing battle. Mr. Schmisseur commented that it does not matter who the lawyers are when in front of the Board of Tax Appeals, because it was based on facts and laws. Mr. Schmisseur added that, if all of the i’s were dotted and t’s crossed, Tax Appeals should say we were going to lose. Mr. Schmisseur stated that he had confidence that those judges would take a look at this and come up with the right decision.

City Manager Dave Howard questioned whether the signature from the City mattered. Mr. Van Blaricum stated that that was the question that really mattered and why Mr. Keifer was here. Mr. Schmisseur commented that we could hope that the Court of Tax Appeals would say that this had been messed up six years ago and it cannot be fixed during appeal. Mr. Schmisseur added that the law could be very forgiving of things once in awhile, but this was a technical application that was not done right, so we just hope that they do their job correctly.

Commissioner Skaggs questioned when the hearing date was. Mr. McMurry stated that he had not received any documentation that they had received the application yet. Mr. McMurry explained that he had not felt that the documentation was true and correct. Mr. Howard questioned if the City not signing the application had been an issue for Mr. McMurry. Mr. McMurry stated that he had not noticed that at first.

After little more discussion, Mr. Van Blaricum stated that he would make an appointment with Montgomery County and he felt that we would hear from them by the time we hear from the Board of Tax Appeals on a hearing date. Mr. Van Blaricum commented that he had wanted the County to be in the loop.

ADJOURN:

A motion by Commissioner Skaggs to adjourn was seconded by Commissioner Hlavachick and carried unanimously.


____________________________________
JEFF A. TAYLOR, Mayor







(SEAL)

ATTEST:

_________________________________
LUANN KRAMER, City Clerk