September 5, 2023 Commission Minutes

GOODLAND CITY COMMISSION

Regular Meeting

September 5, 2023                                                                                                                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 Lukas Wolak – Lineman Superintendent, Jason Erhart – Assistant Chief of Police, Joshua Jordan – IT Director, Kenton Keith – Director of Streets and Facilities, Neal Thornburg – Director of Water and Wastewater, Danny Krayca – Director of Parks, Zach Hildebrand – Code Enforcement/Building Official, Jake Kling – City Attorney, Mary Volk – City Clerk and Kent Brown – City Manager.

Mayor Thompson asked for a moment of silence to honor Chief Frank Hayes then led Pledge of Allegiance

PUBLIC HEARING

1. 2024 Budget to Exceed Revenue Neutral Rate (RNR) – Mayor Thompson opened the public hearing for the 2024 budget to exceed revenue neutral rate at 5:01 p.m.  Kent stated, in July the commission discussed the budget and approved Resolution 1615 to exceed RNR.  City valuation increased but with increased costs the commission set rate at 50.167, exceeding our calculated RNR rate of 43.183.  The commission reviewed the budget in depth to come to this rate.  This process is a requirement by the State of Kansas.  Scott Waugh, a resident, stated, I understand I should have been here for other meetings.  Costs are up for everyone, we cannot do this every year or we will be like Colorado.  We have good services and great streets but I do see items that could be cut a little bit.  The recent sales tax vote passed by five votes which should have sent a message the public is tired of increased taxes.  Patty Thompson resident stated, I watched on TV the Governor of Texas gave everyone in the state of Texas back money they had left over.   I do not know what the RNR is.  Mayor Thompson stated, would be nice if all states made more money than spent.  The RNR is the previous year’s rate, adjusted for change in valuation to calculate the rate to receive the same amount of money as previous budget year.  Commissioner Redlin stated, the RNR does not take into consideration inflation so we are asked to operate strictly on same amount of dollars as last year with no inflation.  Mayor Thompson closed the public hearing at 5:07 p.m.
2. 2024 Budget Hearing – Mayor Thompson opened the public hearing for the 2024 budget at 5:08 p.m.  Kent stated, the proposed budget has been published in the newspaper and on our website.  Total budget is $13,051,374.  This City utilizes additional transfers to assist keeping taxes lower.  Total including transfers is $16,703,144.  For 2022 the budget was about $3,000,000 higher with assistance of federal money.  Staff has done a good job maintaining expenses and cutting costs.  In the budget staff addressed for each department what are the future challenges for that department and what are the ways each department takes actions to cut costs because these are concerns of the City.  We cannot keep increasing budgets but costs have increased.  Over the summer we had some equipment proposals which were much higher than the published inflation rate.  Some equipment costs have increased 25 to 50% in the utility funds that we need to address.  Staff has made concerted efforts to be considerate on purchases necessary to keep utilities running and not fall behind.  The commission considered staff proposals by individual line items and did not approve all of them.  Included in packet is the budget summary as published and a full budget packet.  Budget includes many different departments and services.  One thing Goodland does to help budget is set aside money in CIRF and MERF on an annual basis to help fund large purchases.  An example are the poles on agenda tonight for the south loop.  In 2014 the City started setting aside money to complete project.  Now the money is in the reserve to fund the project.  There are many other similar projects.  We just had to redo the clarifier at sewer plant that was funded by money from Federal Government instead of money from the utility.  Staff really tries to identify equipment and improvements where we need to put money aside to provide services for community.  All these projects were discussed with the commission.  We understand the strain people are under, unfortunately I do not feel it is going to get any easier next couple of years.  Mayor Thompson closed the public hearing at 5:21p.m.

PUBLIC COMMENT

CONSENT AGENDA

1. 08/21/2023 Commission Meeting Minutes
2. Appropriation Ordinances: 2023-17, 2023-17A, and 2023-P17

ON A MOTION by Commissioner Redlin to approve Consent Agenda seconded by Commissioner Showalter.  MOTION carried on a VOTE of 5-0. 

FORMAL ACTIONS

1. Resolution 1616: Levy a Property Tax Rate Exceeding the RNR – Kent stated, the State of Kansas recommends resolution.  ON A MOTION by Vice-Mayor Howard to approve Resolution 1616: Levy a Property Tax Rate Exceeding the RNR seconded by Commissioner Showalter.  MOTION carried on a VOTE of 5-0. 
2. Approve 2024 Budget – Commissioner Showalter stated, I continue to appreciate what the Supervisors and City Manager do to bring us a budget that makes sense.   These discussions are not fun conversations and we have to make tough decisions, but I feel budget presented shows good stewardship by the employees.  ON A MOTION by Commissioner Showalter to approve the 2024 budget seconded by Commissioner Myers.  MOTION carried on a VOTE of 5-0.
3. Request to purchase poles for South Loop Electric Project – Kent stated that part of the south loop project is to extend from south side of Yost Farm Supply to the interstate.  In addition, the project replaces poles and line as well on the west side of K-27 Highway starting at the Highway 24/27 intersection and heading west to Market St and then south to the interstate.  Dustin reported that these poles are needed for the project.  We contacted four vendors to purchase 45 foot poles to start project.  The lowest bid was from Thomasson in amount of $36,576 or $762 for each pole.  It is tough to find anyone who has the poles in stock.  Dustin indicated that within last five years the same pole was available for $300.  I know they say inflation is down but this is an example showing it is not.  This project will require more purchases; this is to get started.  Mayor Thompson stated, the idea behind project is that current demand for power is at a maximum.  We need to boost our system to allow continued growth.  Kent stated, the trigger for this project was an electrical vehicle charging station project and the amount of power they required.  Even if these projects go away, the loop has to be addressed with current maintenance.  Lukas stated, where these come into play the power is underground and once it goes bad it is difficult to replace, unlike a pole.  An overhead line carries more power than underground.  Commissioner Showalter stated, this project was identified over ten years ago and the issue is pressing and will not go away.  ON A MOTION by Mayor Thompson to approve the bid from Thomasson in the amount of $36,576 seconded by Vice-Mayor Howard.  MOTION carried on a VOTE of 5-0.
4. Proposal: Facilitated discussion on Housing Needs and Options – Community Matters Institute – Kent stated, housing continues to be an issue in the community.  The housing assessment was completed in 2021.  We have a couple economic development projects that are a probability or getting close to certainty but will put a strain on the housing market.  This was also addressed as an issue in the commission’s strategic planning sessions.  Is there anything in the city codes that provide a barrier or obstacle or what additional things can the city do to encourage additional housing?  This proposal is from a firm that has completed studies in Colorado and the eastern plains, so familiar with similar agriculture economies.  The proposal outlines action steps the city can do through land use code or other methods to address housing.  It could utilize vacant lots in town, housing types or a new development.  They will conduct interview with the planning and city commission and other individuals involved in housing to see what needs to be addressed.  We saw this as an opportunity to see if there is something specific with the land use or building code we need to address.  The result needs to fit the community.    Mayor Thompson stated, everyone is discussing the housing issue in town.  The commission continues to discuss but we never come up with a solution.  This is a path to the solution for housing issues and will define what our role is with issue.  Kent stated, any solution to housing has to involve private property, it is not the city.  The city is the mechanism, but we have to make sure it is the right fit for community.  Commissioner Showalter asked, did this group come out of discussions from the housing group or was this our decision?  Kent stated, the housing group was more interested with financial incentives for housing.  Staff has been considering housing issue since we applied for the base grant for West more Acres.  Vice-Mayor Howard has asked for cost to put in a block with infrastructure.  The cost is between $400,000 and $500,000.  This does not include getting property prepared.  How is the developer going to be willing to take that risk?  It can be set up to pay back over time but there still needs to be a guarantee by the developer.  If the lots do not sell, who pays for the development?  The economics get very difficult so we need to determine how we can accomplish with other options.  We are commonly told our code is too restrictive.  We need to determine obstacles for development and believe this company has sources with land use planner to have these type of discussions.  Commissioner Showalter asked, are you familiar with this firm?  Kent stated, we have had in depth conversations but never worked directly with them.  Commissioner Showalter stated, I agree with Mayor Thompson, we have to do something to move forward on this issue.  Is SCCD aware of any grants available to assist funding proposal before we proceed?  Kent stated, since we completed assessment this would be considered follow-up to apply for grants from Kansas Department of Commerce.  Commissioner Showalter stated, I feel this is a good first step to move forward.  Mayor Thompson asked, do you want to wait to approve until we see if there is grant to assist funding?  Commissioner Showalter stated, I encourage conversation with SCCD to see if a grant would fit our need before we make commitment of service.  Mayor Thompson stated, the proposal is a cost not to exceed $13,000.  Kent stated, staff can discuss and bring information back to commission.  There is no urgency.  We will not have final answer on grant award, but can check to see if one is available for application.  Mayor Thompson stated, that is a fair concern.  If we would not receive grant funding for assistance, do we want to see if other firms are available to provide service?  I feel confident Kent has had personal dealings with firm and is comfortable with services.  I am fine to wait to see if grant funding is available for assistance.  Vice-Mayor Howard stated, I would like to see if we can find a grant but I know we need to move ahead with housing issues.  Commissioner Redlin stated, I agree but if there are no grants available I feel we need to move ahead with services.   Commissioner Myers stated, I agree.  Consensus of commission is to table discussion until next meeting to check for additional funding. 
5. 516 W. Highway 24 #509 – Zach stated that he did not make it inside the house for pictures.  The ceiling is collapsing, walls and floors are falling down and it is full of fleas.  The owner wants to salvage some property from inside the house then the manager of the trailer park agreed to dispose of trailer.  Concerning the other trailer in the park, we have not found anyone to take the cats from the trailer or house.  Mayor Thompson stated, we appreciate the manager of the trailer park working with us. 
6. Memorandum of Understanding (MOU) for the Emergency Communication Services in Sherman County, Kansas – Jason stated, this MOU is between City and Sherman County Communications for our law enforcement accredidation program.  In discussing with Crissy Ridnour, Communication Director, she already complies with Chapters 18 and 19.  The MOU states that if the city or commission have a change in personnel, MOU remains in place.  Mayor Thompson asked, what does MOU cover?  Jason stated, Sherman County Communications already have policies in place when covering dispatch for City of Goodland.  This documents is proof of services for accredidation program.  Crissy already complies and we will take MOU to the County Commission for approval.  This is simply mutual agreement to prove communication policies are in place.  Jake stated, we have an inter-local agreement with Communication Center, this MOU is a simpler process to prove communications for accredidation.  No changes in operation, this just outlines information on paper.  ON A MOTION by Commissioner Redlin to approve Memorandum of Understanding for the Emergency Communication Services in Sherman County, Kansas seconded by Commissioner Showalter.  MOTION carried on a VOTE of 5-0.

DISCUSSION

1. Nativity scene request: Rosewood Park – Kent stated, the park and recreation board recommend allowing scene in Rosewood Park with two caveats.  They recommend all property owners in Rosewood division be contacted to determine response and have a sketch for placement of scene in park.  They were in favor of scene.  Danny stated, they recommend seeing how it goes year to year having the scene in the park.  Overall they were in favor if neighborhood approves scene.  Mayor Thompson stated, I have no concern with recommendation but last meeting Commissioner Showalter asked if the City has liability when other groups want to put similar displays in park.  Kent stated, we did not research further than the comments Jake presented at last meeting.  Mayor Thompson asked, do we want letters to go out to property owners in area?  Kent stated, the board wanted to make sure citizens understand this is initiated by a private group and not the city, even though it is on city property.  John Mosbarger stated, I walked around the park last night and a large number answered their door and were in favor of it.  Many were very excited about the potential of the scene in the park.  I would estimate responses were from about 90% of people around park.  Mayor Thompson asked, has the hospital approached you for the scene on their property?  John stated, we have more concern of vandalism and wind damage if we continue to place scene on hospital property.  We did consider that location, but felt this was a better fit.  Patty Thompson stated, I believe everyone will be in favor of the idea.  John stated, some art work on the pieces is amazing.  Commissioner Showalter stated, I feel John has followed the general intent of the board and do not need to send letters to residents.  I am in favor of this project and understand there is the potential of additional risks with other displays.  Jake stated, there is not a cookie cutter approach.  I believe if we receive concerns we address them as they come up.  You have to take the practical approach.  It is hard to weigh the many possibilities that may never happen.  Consensus of commission is in favor of project, but agree with board recommendation for the group to submit a plan for the scene in the park for commission to approve.  John asked, are we good on the survey?  Kent stated, we will create a list of property owners in Rosewood for you to let us know which have been contacted. 
2. Letter of Interest for PACE Submission: Solar Project – Kent stated, Gene Slater has been discussing this solar renewable energy proposal on city property for last few months months to ensure it will fit with our Sunflower Contract.  Staff contacted Sunflower about the possibility if project gets to an end point.  It is considered a small project.   According to current contract 5% of our power could be included in a project.  Gene presented a proposal for 5%, which is 657 KW of power.  With Sunflower we would have to do an amendment to the contract for a project larger than the 5%.  It took a while to get a response from Sunflower and Prairieland.  They still may need a formal vote from their board of directors, but they have given City permission to go ahead and consider project.  There is funding available through the Department of Energy for the project that requires a letter of interest by the end of September if you want to apply for funding.  The letter does not mean city is committed to project, but that we are interested in the funding to proceed with application if it is a good fit for city.  Gene stated, the letter of intent is completely non-committal, just needs to be turned into the government to have the ability to utilize funding for project.  The funding is a 100% guarantee on project and you are eligible for 20% forgiveness.  Mayor Thompson stated, total estimated cost of system is $4,500,000.  Gene stated, yes the quote was two weeks ago and good for ninety days, barring an event such as COVID, but we would work through that.  Mayor Thompson stated, the commission has discussed energy for the future and that our current contract is up in three years.  I am curious how you selected our community for the project.  Gene stated, we have been working on a larger project just east of Goodland with potential of 100 jobs then planning for 100 additional jobs in the future.  It is a true tire recycling project which breaks down tires for resale in marketplace.  Phase 1 of the project will bring approximately 100 jobs to your area, then Phase 2 we hope for an additional 100 jobs.  Most of the tires are coming from the front-range.  We were looking at Kearney, Nebraska and Colby but Goodland seemed to be a better fit for project.  When I looked at the economics for Goodland my project is contingent upon having good employees and community has one of highest electric rates in state.  My background is solar and I have ties where we can do projects for a very reasonable price that generate energy from 1.5 to 3 cents a KWH.  It seems to be a good fit after seeing what you are paying for power.  Mayor Thompson asked, is the solar proposal separate from the tire project?  Gene stated, completely separate, one has nothing to do with other.  Mayor Thompson stated, information is for base numbers since we are not looking to make any decisions on the project now.  You have interest in doing project and there are funds available for assistance.  If we have any interest at all in the project signing the letter shows our interest in project but there is no commitment to move forward if we see a reason not to proceed with project.  Gene stated, numbers in the proposal have been stable over the last year.  Commissioner Showalter asked, it says AgriPower Solar is the most trusted renewable energy partner in the agricultural industry how does that interface with agriculture industry.  Gene started, we started because farmers and ranchers pay a lot for utilities and it has expanded from there.  Kent stated, couple additional items for the commission.  There have been solar proposals previously presented, none have been as attractive as this proposal, so there was no movement forward.  There is additional federal funding for the project and different financial instruments to pay back over time.  We are reviewing proposal with KMEA tomorrow for feedback since they have been involved with other solar projects across Kansas.  Dustin did state one of the most attractive things with solar that can also hurt you is that it works well during the day but one of the top charges we pay Sunflower is demand, which is high the middle of the day.  Having the solar option will help decrease the cost on a portion of the city’s bill.  It will not cover total bill but if a portion can be covered with solar at a cheaper cost, it would decrease the demand charge on our power bill.  Gene stated, battery options are also available that can make delivery more efficient and cheaper for city.  Kent stated, this is for discussion and we have another meeting to make final decision on letter of interest.  Mayor Thompson stated, we have not given you the opportunity to go through the numbers in proposal.  Gene stated, the project is estimated at $4,500,000, with possible forgiveness of just over $900,000 or 20%.  This is the level Kent and I discussed you are eligible for, which is minimum level.  There is the 30% tax credit, which if the city has no use for I have a tax broker where we can get $.87 to $.91 on the dollar.  Big key for the city is that PACE finances the entire project with minimal upfront cost.  They give 20% forgiveness.  It guarantees warranty and production over life of system at $.0143 per KWH which is as low as what you find on market place.  Most parts of the system are warranted for twenty to thirty years.  If system falls short, we will address issue with manufacturer so if there is a down situation we take care of it.  We monitor and maintain system so no additional work put on the city.  Mayor Thompson stated, we will continue to discuss and will determine which direction to go.  We appreciate you considering our community.  Vice-Mayor Howard stated, I have no problem with the letter of interest as we do not have to commit to project.  Mayor Thompson stated, Dustin and Kent have had many discussions with Gene and feel confident to look at project.  This will start discussion as to where we want to move forward with our power.  I feel it is a good opportunity.  Kent stated, we are reviewing proposal with KMEA tomorrow as they have solar proposal experience, then I feel confident submitting a letter of interest.  Consensus of commission is in agreement with Kent.

REPORTS

1. City Manager – 1.  Manager memo is in the packet.  2. It is unfortunate that Chief Frankie Hayes passed away and funeral is 10:30 am Thursday at the Methodist Church.  Assistant Chief Jason Erhart stated, we are asking to close the 1100 and 1200 block of Sherman from 8:30 a.m. to 12:00 because of law enforcement attending funeral.  Kent stated, we are asking the public to park on side streets.  We are shutting down all city services from 9:00 a.m. to 1:00 p.m. to allow employees to attend funeral.  We ask the public to be respectful for attendance of funeral as there will be quite a few law enforcement in attendance.  Jason stated, Chief passed on Wednesday morning.  The Police Department has come together and the 1033 Foundation has been contacted to help staff with grieving.  On Thursday morning the department escorted Frankie to Hays for autopsy.  We were greeted by the Honor Guard of Hays as well as other agencies along the way.  We were greeted by many in Goodland as we proceeded past his home and the city offices.  Chief was given a salute as taken into funeral home.  I am focusing on our team and taking care of them.  I would like to express appreciation to emergency services and city employees that have reached out to the family.  This has been hard on the department but we want to continue his dreams for the direction of the department.  We left for Hays at 5:30 a.m. and KHP and sheriff offices were periodically seen in the median saluting Chief.  As we came back Thomas County had numerous people saluting as we went by.  Laci Leichliter from the hospital has reached out to offer grief counseling to department.  This has been hard for Tammy and her family.  Chief was a good man and will be missed.  Funeral dinner is at First Baptist Church following funeral.  Kent stated, it has been a tough week, he was very respected by our staff.  I appreciate all chief has done for our organization and the community.  3.  I had a request from Mayor Thompson to have a public survey available on traffic signals at 11^th and 12^th and Main Street.  There were 110 responses with majority understanding the need to remove stop lights although there was nothing in survey with costs.  There was a stronger response to remove light at 11^th and Main rather than 12^th and Main.  The option of a 4-way stop was not popular.

• City Commissioners

Vice-Mayor Howard – 1.  Would like to thank all employees, I know it is a hard time right now.  Condolences to Chief’s family and friends.  He will be missed.

Commissioner Showalter – 1.  Condolences to Chief’s family.  A true form as to how Frankie lived his life was that his wife Tammy was out volunteering to pick up flags last night.

Commissioner Myers – 1.  No Report

Commissioner Redlin – 1.  Condolences to Hayes family.  Would like to thank Jason and the department for taking up reins. 

• Mayor Thompson– 1.  Chief was a great, giving man who will be missed.

EXECUTIVE SESSION

1. Under the authority of KSA 75-4319(b)(1) for personnel matters for nonelected personnel –   Mayor Thompson made a motion at 6:56 p.m. to recess into executive session under authority of  K.S.A.75-4319 (b)(1) for personnel matters for nonelected personnelnot to exceed ten minutes.   I request the City Manager and Commission be present. Vice-Mayor Howard seconded the motion.  MOTION carried by a VOTE of 5-0.  Meeting resumed at 7:06 p.m.

ADJOURNMENT WAS HAD ON A MOTION BY Commissioner Redlin seconded by Commissioner Showalter.  Motion carried by unanimous VOTE, meeting adjourned at 7:06 p.m.  Next meeting is scheduled for September 18, 2023.

_____________________________

ATTEST:                                                                               Aaron Thompson, Mayor

_______________________

Mary P. Volk, City Clerk