July 5, 2022 Commission Minutes
GOODLAND CITY COMMISSION
July 5, 2022 5:00 P.M.
Mayor Aaron Thompson called the meeting to order with Vice-Mayor J. J. Howard, Commissioner Jason Showalter, Commissioner Ann Myers and Commissioner Brook Redlin responding to roll call.
Also present were Dustin Bedore – Director of Electric Utilities, Frank Hayes – Chief of Police, LeAnn Taylor – Municipal Court Judge/Clerk, Sami Windle – Museum Director, Joshua Jordan – IT Director, Kenton Keith – Director of Streets and Facilities, Neal Thornburg – Director of Water and Wastewater, Danny Krayca – Director of Parks, Jeff Dinkel – Code Enforcement/Building Official, Mary Volk – City Clerk and Kent Brown – City Manager.
Mayor Thompson led Pledge of Allegiance
- Terry and Roberta Webb – Terry stated, we are opening Mom’s Kitchen and would like the Commission to consider our CMB application. We also would like to see about putting up storage building at the property. Mayor Thompson stated, you need to talk to Jeff on what is permitted. Terry stated, alright, we have been working with Jeff.
PRESENTATIONS & PROCLAMATIONS
- Introduction of New Police Officer: Marvin Reddick – Frank introduced Marvin Reddick as new police officer that comes from the Chicago area. He began employment last Monday and is going to academy August 8th, graduating in November. Commission welcomed Marvin to community.
- 06/20/22 Commission Meeting Minutes
- Appropriation Ordinances: 2022-13, 2022-13A, and 2022-P13
ON A MOTION by Commissioner Redlin to approve Consent Agenda seconded by Vice-Mayor Howard. MOTION carried on a VOTE of 5-0.
- Acceptance of 2021 Audit Report – Harold Mayes, Agler and Gaeddert presented the 2021 audit report to the Commission. Harold stated, the City received a clean audit opinion, which is a good report for the City. The City is up about $250,000 in cash from previous year, mostly due to General Fund. Two funds had a negative cash balance at end of the year but the funds are in a reimbursement situation so the State allows the balance. All money for the City is adequately secured at all banks. The City’s liability for the pension fund is $1,480,641, which is a rolling number and is not due at one time. We have to make sure the City is aware of liability. There are no budget violations for the City. Cash receipts in electric fund increased about $200,000, while water receipts increased about $20,000 and sewer receipts were down about $5,000. When considering utility reserve balances, which is money available to help out the funds, balances are adequate. Mayor Thompson stated, that is a good report. ON A MOTION by Commissioner Showalter to accept the 2021 Audit Report seconded by Commissioner Redlin. MOTION carried on a VOTE of 5-0.
- Ordinance 1752: City Park Hours – Kent stated, last meeting Commission directed staff to draft an ordinance for park hours and penalties. There are situations occurring in parks at night and this is a tool to assist officers enforcing people in the parks during night. Hours stated to close parks are 11:00 p.m. to 5:00 a.m., allowing exceptions for special events. Danny stated, we had vandalism again over weekend so we need to do something. Restrooms in Chambers Park are temporarily locked until repaired. Commissioner Redlin asked, do you have to use funds out of your budget for repairs? Danny stated, yes and it is occurring in all parks. Mayor Thompson stated, it is unfortunate people think this is ok, the facilities are there for the public. Commissioner Redlin asked, does cemetery fall under park guidelines? Kent stated, no. Mayor Thompson stated, the penalty falls under criminal trespassing. Commissioner Redlin asked, will this work for police department? Frank stated, yes it does. ON A MOTION by Commissioner Showalter to approve Ordinance 1752: City Park Hours seconded by Vice-Mayor Howard. Mayor Thompson stated, I do not like the idea of locking parks at night because they are restricted, but with issues of damage we cannot allow behavior to continue. I am sad this is our solution, but feel it is necessary. MOTION carried on a VOTE of 5-0.
- Ordinance 1753: Solid Waste Contract Fuel Adjustment – Kent stated, there is a cost within our contract with solid waste provider to charge a fuel adjustment when diesel fuel increases by .50 over the average of $3.50. This cost is fluid and ordinance matches fuel adjustment cost in contract. We will have cost adjustment from July to December, but unknown what future will bring. This creates a mechanism in our code to cover additional cost of fuel adjustment. For next six months charge will be $.25 per customer as the average diesel price was $4.42. For the first six months the City will absorb the cost and ordinance is effective January 2023. Mayor Thompson asked, is cost adjustment retroactive or actual cost adjustment in effect? Kent stated, it will be actual cost applied to City during same period. City is paying additional cost out of reserve for first six months. ON A MOTION by Commissioner Showalter to approve Ordinance 1753: Solid Waste Contract Fuel Adjustment seconded by Commissioner Myers. MOTION carried on a VOTE of 5-0.
- Change Order #1: Goodland Street Improvements – Kent stated, change order adjusts to actual quantities and a short section of concrete where the curb did not match Scoular’s. Change order increases contract price $12,780.90 to a final contract amount of $827,726.90. The City is below maximum grant amount so state pays 80% of contract change and City will pay remaining 15% or $1,917.14. The project is complete. ON A MOTION by Commissioner Showalter to approve Change Order #1: Goodland Street Improvements in the amount of $12,780.90 seconded by Commissioner Redlin. MOTION carried on a VOTE of 5-0.
- CMB License – Mary stated, inspections of property are complete and background came back satisfactory today. Owners are present if Commission has questions, but the CMB license can be approved. ON A MOTION by Commissioner Showalter to approve CMB license for Roberta and Terry Webb seconded by Vice-Mayor Howard. MOTION carried on a VOTE of 5-0.
- Ordinance 1755: 24/7 IRB – Kent stated, ordinance authorizes the issuance of taxable IRB’s for construction of 24/7. The original project was approved in 2019 by resolution and petition was for a community improvement district (CID). There was no comment at the public hearing. This process is driven by the property owner to create a funding mechanism to pay for project. District only includes 24/7 property. Original project costs were estimated at $4,900,000 and implemented 2% sales tax. Final project costs were $6,200,000 and as long as project is described in bond agreement, it meets statute requirements. This is a common mechanism where the City has no liability but it provides funding mechanism for project. The project ends up being a lease to Triplett Corp. Mayor Thompson stated, people do not understand where extra tax goes on these projects. We are simply a pass through. Kent stated, there are requirements that money is collected then dispersed. Mary stated, yes the City only receives a small administrative fee per CID agreement that goes into general fund. ON A MOTION by Vice-Mayor Howard to approve Ordinance 1755: 24/7 IRB seconded by Commissioner Showalter. MOTION carried on a VOTE of 5-0.
- Ordinance 1754: Adopting 2018 Plumbing Code – Jeff stated, ordinance outlines amendments and deletions to plumbing code that the board has been working on. The commission needs to accept amendments as outlined in Section 4-402.1. Kent stated, Jeff and I are communicating with International Code Council (ICC) for specific language required in the ordinance for changes in our code. The ordinance may be slightly amended to meet ICC requirements. Mayor Thompson stated, it is difficult because we have not read plumbing code and appreciate individuals on board to review code. Are there significant changes from the 1994 code? Jeff stated, mostly changes in commercial enforcement or sewer depth. Mayor Thompson stated, I appreciate the board and encourage them to keep moving forward.
- Unfit Structure: 1514 Caldwell – Jeff stated, work on this property started in 2020 but nothing was completed. On May 9th I contacted Shane Gensheer, property owner, who has disabilities so communication was difficult. I left message on May 16th with no contact so on May 23rd I left a green tag which is no longer there and no one is residing at property. I put a green tag on their residence on May 31st with no contact. On June 3rd I asked they contact me by the 10th or we would start demolition process. His wife Sherida contacted me on June 6th stating they are concerned rodents may be in the house but they do not go inside because a family member passed away inside property. We discussed whether property taxes were paid to determine whether we demolish property or deed to City. I have left several messages with Sherida but have had no contact. Taxes have not been paid on property since 2018 so we do not want to deed property to City because we would have to cover cost. The next step is to setup hearing with property owner to see what they plan to do. Mayor Thompson stated, looking at the pictures, the structure is unfit and I feel we need to setup hearing for demolition of unfit structure. Consensus of commission is in agreement with Mayor Thompson. Jeff stated, publication of hearing must be 30 days in advance of hearing.
- Update on Unfit Structure: 1523 Colorado Ave. – Jeff stated, I have updated photos of property and discussed property with owner on June 6th. He was going to clean up property and turn on utilities. However, he reached out to Neal and found it was very expensive to add water and sewer so indicated he could not afford to add utilities. Owner has property adjacent where he can have utilities turned on. He wants to make one of the trailers livable but cannot afford to do so. He has made a little improvement, but not much. I visited property today and he was not present. Mayor Thompson stated, we discussed allowing him time if he wants to put in the effort. He has done a little but not too much, so I question motivation. Commissioner Showalter stated, I would like to give him a month before we move forward. Mayor Thompson stated, if he is not able to put utilities in trailer, it is a moot point. Jeff stated, the one trailer is sentimental as it was his dads. I advised him to move to a park where he could get utilities. Mayor Thompson stated, I agree, offer a little more time but he needs to be aware we will not sit idle, as something needs to be done. Jeff stated, I will get a letter giving him 30 days.
- FY2023 Budget Initial Presentation – Item discussed following reports in meeting.
- City Manager – 1. Reference the information in manager memo. 2. 17th Street project is complete. Sporer Construction has started project at Senior City. It is not City property but we are cooperating with them to put in curb with parking at property. 3. Marc Chaffin from EBH stated, on the airport runway project, phase one is complete, except painting and joint sealing, which will be done at end of project. Phase 2 is the section where main runway was closed down. It went well and main runway was opened up four days early. Painting and joint seal will be completed later. For phase 3 they have treated base for the entire stretch, setting up streamline for trimming then pouring concrete. Later this week they are hoping to finish turnaround pad, but have issues getting cement. Another issue for this phase is delivery of rock. We do not see delay for project overall, but will not see a lot going on this week. Next week should have electrical here to do PAPI. They have to have someone from the FAA present to complete. We understand it will take several months to get everything needed for PAPI’s. All concrete tests have met requirements; same with 17th Street Project. Mayor Thompson stated, 17th Street looks good. 4. Dustin informed me we need to order remaining parts to complete Highway 24 lighting project. We received two quotes that were very close. Dustin stated, the purchase is for PVC which has doubled in cost. We have had the poles in our yard for 2 years and need to complete project to clean up entrance. Border States Electric was lowest bid. Kent stated, we are following purchasing policy and this will complete project on Highway 24 from Eustis to Exit 19. 5. Community BBQ is coordinated with final concert in the park event August 12th at Steever Park. We are trying to get an idea on how many to plan for. We are coordinating with other events like GAC youth triathlon, free admission to pool, then BBQ prior to concert. We are estimating 400, estimating costs of $1,200. Does the Commission want staff to proceed with community BBQ? Mayor Thompson stated, I feel it is a good idea, the concerts are going over well. With other activities going on that day I feel 400 is a fair number. Consensus of Commission is in agreement with Mayor Thompson. Kent stated, SCCD will have a flyer out presenting it as a back to school bash. Staff will proceed with plans. 6. Frank stated, we received a training date for canine to become patrol certified. He will be leaving August 1st for four to six weeks, then return and have continuous training. Mayor Thompson asked, where is the training? Frank stated, in Colorado Springs. Vice-Mayor Howard asked, will the officer also attend training? Frank stated, yes, to ensure he learns commands and interacts with officer. We also were selected to participate in a State accredited program through KLETC. There are over 400 agencies in the State of Kansas and we were one of seven agencies selected for the program. I still have to review paperwork to ensure we are able to do what they request. I will bring information to the Commission as it progresses.
- City Commissioners
Commissioner Showalter – 1. Thank you to all departments helping set up for reunion this weekend. It was a big economic impact for the community and I appreciate the help.
Vice-Mayor Howard – 1. Echo comments from Commissioner Showalter regarding the reunion. 2. Thank you to all employees, the work from everyone is appreciated, especially in the heat.
Commissioner Myers – 1. Echo comments from Commissioner Showalter regarding the reunion.
Commissioner Redlin – 1. Echo comments from Commissioner Showalter regarding the reunion. Freedom Festival was also a successful event.
- Mayor Thompson– 1. Echo comments of Commission, it was a good weekend for the City. Appreciate everyone helping out.
- FY2023 Budget Initial Presentation – Kent stated, included in your packet is information regarding budget, along with the budget book. Thank you to department heads involved with budget to this point. In the initial proposal I discussed goals with department heads then we received assessed valuation in June. Last year the valuation was 35,082,448 and this year the estimate is 37,433,732 with each mill generating 37,433.73. We also received the RNR rate for the City. Current budget was 48.879 mills and to meet the RNR in 2023 it would be 45.811 mills to generate same revenue as current year. We have made several adjustments and need direction from Commission. We have cut budget to the point it is equivalent to current year mill. To get to RNR requires an additional $115,000 in cuts. The overriding question is do you want to meet the RNR? We have to notify County Clerk by July 20th as to whether or not want to meet RNR and hold RNR hearing. If there is any chance we will exceed rate, we need to have hearing. If we set budget at RNR but final valuation comes in higher it causes problems for city. If valuation come in less, you cannot generate more revenue. There is a penalty if you exceed it and do not indicate going to exceed RNR. We will need to know next commission meeting whether commission wants to meet RNR. I view increased valuation as a penalty for the City with the RNR rule. It creates an extra challenge to meet same exact dollars generated in previous years. I feel it is not an equal tax. It is difficult to use same amount of dollars to meet increasing costs. Last year commission wanted to meet rate but had RNR hearing in event final valuation was higher. If the Commission meets RNR this year, the budget drops another three mills, which is 10% in two years. The commission can decide to exceed RNR but have to have hearing to make it happen. Mayor Thompson stated, it is an important question that we need to decide early in process. Personally I think the hearing is important to consider. Last year we agreed to meet RNR but had hearing to avoid penalties. Kent discussed the objectives of 2023 budget in meeting current economic conditions. Inflation effects are a reality and are difficult to manage. We need to have flexibility to meet demands. The fund balance in general is being spent down. There are three main legs that provide revenues in general fund: 23% property taxes; 27% utility transfers and 34% sales tax. A portion of sales tax is a pass through for the school district sales tax. If that portion is removed then sales tax is 25%, utility transfers are 30% and property tax is 26%. Mayor Thompson stated, it is difficult for people to remember that of the 9% sales tax, the City only gets about a half percent. Kent stated, good point, and regarding the cut on food sales tax, the cut is only on the state portion of sales tax. That could cause pressure to cities to cut the local sales tax. This will cripple many municipalities if they do not have a revenue source to replace it. Our share is very minimal, the state takes the majority of the sales tax. It is not easy to increase sales tax as it requires a ballet issue. Sales tax fluctuates with spending habits, with inflation it could drop which will also cause a problem. Kent reviewed expenditures in budgets for all departments in the general fund. Kent stated, the Commission approved a 12 step salary schedule that also includes an increase based on COLA. This budget includes moving the entire schedule up 2% in the step and 3% for COLA, if employee meets job expectations. Reducing the COLA 1% is about $25,000, which includes utility funds. Back to the main question, do you want to meet the RNR? Whether or not request to meet RNR, do we request to have the hearing? Where does the City pay for increased costs? We can make additional cuts, but is it a good long term strategy to keep city functioning and do the job the public expects? Mayor Thompson stated, I like the summary in the budget; it is better this year to help understand each department. It is going to be a tough year. Vice-Mayor Howard stated, on the RNR last year we cut $49,000, this year requires cutting $115,000, next year it will be more. Public expects same service or more, how do you keep doing that without some increase? I understand a tax increase is not good, but to keep services same we have to do something. Kent stated, the strategic planning the commission held at the beginning of the year, we have addressed a few items but nothing in budget is dedicated to housing, other than demolition. There are some effects in budget for inflation, but is there enough? There is nothing dedicated to economic development of downtown except for our dedication to SCCD. Commissioner Showalter stated, employees did a good job cutting where could and it is tough to come up with items to cut. I do not know how we can meet RNR with inflation. Kent stated, we went through the budget three different times to get to this point. I am not saying any of the decisions cannot be reversed or remove something else, we just need direction at next commission meeting for RNR. Additional funds will be presented at next commission meeting along with a decision for the RNR.
ADJOURNMENT WAS HAD ON A MOTION BY Commissioner Redlin seconded by Commissioner Myers. Motion carried by unanimous VOTE, meeting adjourned at 7:45 p.m. Next meeting is scheduled for July 18, 2022.
ATTEST: Aaron Thompson, Mayor
Mary P. Volk, City Clerk