July 1, 2024 Commission Minutes

GOODLAND CITY COMMISSION

Regular Meeting

July 1, 2024                                                                                                                            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, Jason Erhart –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 led Pledge of Allegiance

Kent stated, I need to request additional items to agenda.  We need another public hearing that was previously scheduled regarding de-annexation of Goodland Energy Center Lots 17 and 18, then Ordinance 1778 for necessary action following hearing. 

PUBLIC HEARING

  1. Unfit Structure 1526 Caldwell – Mayor Thompson opened the public hearing for 1526 Caldwell at 5:02 p.m.  Kent stated, this is action regarding the house as the exterior was previously addressed.  Zach stated, there are electrical, plumbing and water issues along with mice.  One owner is in Texas and the other in treatment.  I have not had contact with other family members.  Kent stated, current owner listed is deceased.   Mayor Thompson closed the public hearing for Unfit Structure at 1526 Caldwell at 5:03 p.m.
  2. Unfit Structure 00000 W. 12th Street – Mayor Thompson opened the public hearing for Unfit Structure at 00000 W. 12th Street at 5:04 p.m.  Zach stated, this is an old shed that has been laid over a number of years.  This sits across from playground at West School.  Mayor Thompson asked, did you get any response from owners.  Zach stated, the one I talked to said he was one taking care of taxes and property and tired of doing it.  I received no response from mailing.  Mayor Thompson closed the public hearing for 00000 W. 12th Street at 5:05 p.m.
  3. Petition for De-annexation Goodland Energy Center Lots 17 and 18 – Mayor Thompson opened the public hearing for the petition to de-annex Goodland Energy Center Lots 17 and 18 at 5:06 p.m.  Kent stated, this involves lots 17 and 18 of Goodland Energy Center.  Property owner petitioned to de-annex property.  We have no City services to property and have received no public comment regarding de-annexation. Mayor Thompson closed the public hearing for de-annexation of Goodland Energy Center Lots 17 and 18 at 5:07 p.m.

PUBLIC COMMENT

Melvin Crow stated, I am President of theGoodland Gun Club.  We would like to expand trap range on top section of lease.  We have a trap machine donated which will allow us to open up for 4-H competitions and hold college shoots on property.  It will add another 20 yards to north of existing lease.  I have discussed proposal with Kent.  The fallout of the new range was engineered by the college and is within fallout of the two existing ranges.  This is a nice donation from a private entity to move trap program forward.  The new range will be a 16 foot range.  Our numbers for the program are increasing and we need to expand services to accommodate numbers.  The machine will be a different design with roll back lid rather than underground style like existing machines.  We are asking for approval to expand lease to north.  We would like to get started so machine is available for fall program.  Mayor Thompson stated, it is a good program with a lot of activity.  We will look at lease next meeting for approval.  Kent stated, Melvin and I can discuss the lease before next meeting. 

CONSENT AGENDA

  1. 06/17/24 Commission Meeting Minutes
  2. Appropriation Ordinances: 2024-13, 2024-13A and 2024-P13

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

PRESENTATIONS & PROCLAMATIONS

  1. 2023 Audit Report – Harold Mayes from Agler & Gaadert presented the 2023 audit report.  Audit is not in accordance with GAAP because of waiver; however, statements are in accordance with statutory regulations and federal regulations with federal awards.  Your Airport Improvement Fund has a negative cash balance which is not a statutory violation because funded by grants.  Generally with utility funds you want to have three months of cash balance to operate.  Health and Sanitation Fund does not have the cash reserve.  The balances in CIRF and MERF have increased because of the transfers into the funds.  This year required a single audit because you received grant funding over $750,000, next year that limit goes to $1,000,000.  The statements on these programs are properly stated.  The federal government takes the attitude if a municipality waives GAAP, you cannot be considered low risk auditee.  I am not proposing you go to GAAP accounting.  I do not care for it for municipalities because you are required to record all infrastructure which is not something you can sell.  It is not a bad thing, just letting you know you are not considered a low risk auditee to them.  The audit report gives a clearer picture. 

ORDINANCES AND RESOLUTIONS

  1. Resolution 1638: KDOT Maintenance Agreement of City Connecting Links – Kent stated, KDOT District Engineer sent an updated agreement for maintenance of the City Connecting Links.  The previous agreement was signed in 1981.  Substantially it is the same agreement with few changes.  Kenton and I discussed agreement with engineer and this is the standard agreement for municipalities.  We maintain the right of ways on city connecting links for mowing, drainage and utilities.  Staff recommends approval.  Commissioner Showalter asked, what happens if we do not approve.  Kent stated, if have agreement we get money for connecting links and are eligible for grant monies.  ON A MOTION by Commissioner Redlin to approve Resolution 1638: KDOT Maintenance Agreement of City Connecting Links seconded by Commissioner Showalter.  MOTION carried on a VOTE of 5-0.
  2. Resolution 1639: Unfit Structure Notice 00000 W. 12th Street – Kent stated, this is shed on West 12th Street that is laying on the ground.  Resolution states owner is directed to commence repair within thirty days.  However, if not resolved it might be easier for City crews to clean up. ON A MOTION by Commissioner Showalter to approve Resolution 1639: Unfit Structure Notice 00000 W. 12th Street seconded by Commissioner Myers.  MOTION carried on a VOTE of 5-0.
  3. Ordinance 1778: De-annexation Goodland Energy Center Lots 17 and 18 – Kent read ordinance presented.  ON A MOTION by Vice-Mayor Howard to approve Ordinance 1778: De-annexation Goodland Energy Center Lots 17 and 18 seconded by Commissioner Showalter.  MOTION carried on a VOTE of 5-0.

FORMAL ACTIONS

  1. Acceptance of 2023 Audit Report – ON A MOTION by Mayor Thompson to accept the 2023 audit report seconded by Commissioner Showalter.  Commissioner Showalter thanked Harold for his work.  MOTION carried on a VOTE of 5-0. 
  2. MOU: Sherman 4C’s delayed purchase of property – Kent stated, the MOU is for the donation of property to build a child care center with Sherman 4C’s.  This would set aside the property in the 900 block of West 10th Street for two years or until Sherman 4C’s organization is able to secure funding for facility.  The committee agrees with the MOU.  Mayor Thompson asked, this just holds the property for their need.  Jake stated, yes this only holds property for them to proceed.  Details of any transaction with land will be done when they secure funding and are ready to build.  ON A MOTION by Commissioner Showalter to approve the MOU with Sherman 4C’s seconded by Vice-Mayor Howard.  MOTION carried on a VOTE of 5-0. 

DISCUSSION

  1. Quiet Zone: Railroad – Kent stated, citizens have asked staff to check into the process for a quiet zone with the railroad due to increased activity at the crossings in town and the noise generated each time the train crosses intersections.  Staff has contacted Genesee & Wyoming railroad (GWRR) regarding the process.  Currently there are no quiet zones for the Kyle Railroad (which is owned by GWRR) throughout Kansas.  There are requirements and safety features that have to be in place if declared a quiet zone.  They are required to blow the horn at the intersections.  Vice-Mayor Howard stated, I am used to it and feel it is noise from a farming community.  Kent stated, in research I found in 2016 there were four quiet zones in the State.  They are near Kansas City and Fort Scott.  Gary Niblock, from GWRR indicated they have no objection other than the Federal Railroad Administration process is followed.  Gary cautioned me that another community attempted to establish a quiet zone and gave up after four years.  We have not done additional research as we need direction from Commission.  Commissioner Showalter stated, in the interest of safety I am not interested in pursuing.  Mayor Thompson stated, there would be other safety requirements in place if quiet zone in place.  I feel it is short lived while train is passing and do not see need to pursue.  Consensus of Commission is in agreement not to pursue quiet zone. 
  2. Water Conservation Measures – Kent stated, it is a hot dry year.  The water treatment plant has been working continuously to meet the demand of approximately 2.5 million gallons of water a day during this dry watering season.  Neal stated, in last couple day’s volume has dropped a little bit.  Kent stated, for about a week the plant had not shut down for a number of days.  This is more like the demand in July and August.  Water conservation measures outlined in city code is included in your packet along with possible water restrictions that may be requested at a future meeting.  The City implemented a water watch a few years ago with a number of wells down.  I encourage citizen’s volunteer participation of water conservation, water smart and not waste water in heat of the day.  At this point, I want public to be aware of situation. 
  3. 2025 Budget: Initial presentation of Utility and all Other Funds – Kent stated, objectives of budget are to have balanced budgets with secure reserves, sustainable operations, investment in staff and diversification of investments. 

In the Electric Utility, revenues remain level and not a big increase from last year.  Collections in 2023 decreased with it being a cooler year.  The cash balances in the electric utility and reserve fund decreased until 2018, then remained relatively level.  The cash balance is just over $1,000,000 which will not pay for many improvements.  On production side, funding personnel at basically same level.  Insurance increased but mostly items remain level.  Commodities are level then transfers to CIRF and MERF.  The summary outlines challenges for next three to five years and what staff does to control costs. 

In distribution, personnel are same and again increase in insurance costs.  Commodities are relatively stable; however, one year showed a large increase.  With utility funds, unused budget balances roll into the fund, but you have to have reserves available when an improvement is needed.  Items in this fund are big ticket items.  Transfers to CIRF and MERF are same but added a pedestrian crossing light on Caldwell.    Staff looks at ways to control costs and supply issues.  We are in conversation to become a KMEA utility warehouse.  Bucket trucks are in good shape at this time.  Delivery on replacement equipment is up to two years.  It is difficult to manage budgets with supply chain issues.  Soon we will have to assess the benefit of additional generation units.  There are numerous opportunities to expand our capacity.  Commissioner Showalter asked, capital outlay budget is $15,000 for replacement of meters, how many do we replace each year?  Dustin stated, it varies, we need to have a supply on hand plus have to replace meters as they age.  It is getting tougher and tougher to get meters.  Kent asked, what is standard life of meter?  Dustin stated, it varies with situation.  Some are twelve years old and test fine then some go bad after a few years.  Before price increase I was able to purchase a couple pallets of residential meters to have some on hand.  Purchasing commercial and demand meters are where we struggle.  Recently I was able to purchase twelve meters, only because supplier had them in stock. 

Commercial and general is for office staff and billing.  Professional services have increased because of software costs.  Shauna recently completed Tantalus training recently which will benefit software uses.  The miscellaneous page has $500,000 transferred to General Fund to help keep property taxes down.  The payback of the energy event will be complete this fall. 

Overall, if operated with profit and loss, total budgeted receipts in 2025 are just below expenditures.  With a hot year we will make more money.  We received information on the rate study today from KMEA but have not had time to review information. 

In the Water Utility, revenues remain unchanged for service and sale collections.  The cash balance in the water fund has had many ups and downs.  Currently sitting at about $700,000 balance.  In production, personnel costs decreased because of change in staff and Supervisor is now paid out of both sewer and water.  Transfer to CIRF is for improvements. 

In distribution, personnel remains same while contractual and commodities have a slight increase.  Capital outlay is $10,000 for parts, but very well could be more.  We have a bond payment in the CIRF transfer for a bond that does not mature until 2036.  We continue setting money aside for other improvements. 

The water fund has a transfer to the General Fund to keep property taxes down.  There is also a clean water fee assessed by the State.  The reserve fund will have some funds expended for the local share of base grant.  Overall, water rates had a slight increase in 2022, after an increase in 2015.  We need to assess rates annually.  KMEA is currently reviewing rates.  We need to continue maintenance on aged equipment.  Water tower improvements for our contract are starting this fall.

Challenges next few years are new EPA lead and copper regulations requiring more sampling.  In addition they require us to replace 3% of lead water lines annually.  We need to continue training staff for certifications.  Keeping a steady crew has been a challenge.  One laborer passed certification last week.  We need to purchase water rights near city limits.  Last year we made changes in our state water rights to reconfigure current wells.  Our wells are aged and currently well 5 is being worked on.  We have 254 fire hydrants with the oldest hydrant at 8th and Walnut.  We have an estimate for a water project to address two inch water lines and dead end lines and mains that need addressed.  The cost is very high.  Over past years water expenditures have exceeded revenues. 

In Sewer Utility, annually we have a conservative increase of twenty cents per year which does not generate much revenue.  Cash balance remains low.  In treatment, the supervisor is now paid half from sewer.  We have had to do some costly improvements in the sewer utility.  In collection, budget remains basically the same.  There are CIRF and MERF transfers for improvements.  Again, there is a transfer to General Fund to help with property taxes and to electric utility.  Challenges are the system has been neglected over a number of years.  We did a lining project last year and have other locations it will be beneficial.  Sewer has not been priority for a number of years which has resulted in an increase in 2022 expenditures.  As I stated, there is a minimal annual increase and I will have additional information on rates at a later date.  Again, sewer receipts are below expenditures. 

With all utilities do we decrease expenditures to close gap between receipts and expenditures?  There have been major expenditures in the funds recently. 

In Health and Sanitation, revenues increased a couple years ago with increase in contracted service, but 2025 remains status quo.  Again, a transfer helps support General Fund like other utilities.

Cemetery Improvement fund revenues are from lot sales and burial permits.  Expenditures are for buffalo grass, fence and building improvements.  There is also a transfer to CIRF for purchase of land for the expansion of the cemetery. 

The Law Enforcement Trust Fund, used to be revenue from drug forfeitures.  With recent court ruling and legislation, revenues from drug seizures will go away.   

VIN fund is for money collected when the police department conducts vehicle inspections.  The City maintains all funds through contractual agreement with State.

Fees collected in the Municipal Court Diversion Fund have decreased.  Funds are used to purchase police equipment and equipment for court. 

The reserve funds, CIRF, MERF and GIRF, have money transferred from individual departments.  The CIP lists all improvements and equipment transferred into the fund.  We have made changes to transfers to help reduce budget deficit. 

Special Highway Fund is revenue from the gasoline tax according to KSA 79-3425 to chip seal streets.  In 2024 we are using money as match for Cost Share Grant with Caldwell Improvement Project.  In 2025, we will return to chip seal streets as long as receive money. 

Per Statute, Special Park revenues are half the liquor tax funds received.  The other half is receipted to general fund.  We have used this last couple years so fund balance has decreased and we authorized use of all funds in 2025. 

In non-budgeted funds, we have ARPA Project fund where there are no new revenues.  The funds have to be obligated by 2024 year end and spent by 2025 year end.  We have obligated funds as our match on base grant project. 

Our main question for the Commission is on the property tax funds.  Staff has made some reductions; however, to meet same mill rate as 2024 budget there will have to be about $70,000 in additional cuts.  To meet RNR, you will need another $33,000.    Staff needs direction, do we meet RNR with inflation costs of materials and equipment.  That is question for next meeting as have to let County know our intention.  In preparation, it would be good to have feedback.  Mayor Thompson stated, regardless whether we meet RNR or mill rate, I feel we should have hearing to cover basis.  Kent stated, I am concerned about reaching RNR as the cuts so far have been painful.  We are to the point we are cutting needs not wants.  If commission does not think something in the budget is a good idea, we need to discuss.  We will get budget information to commission in decent time before next meeting.  Unless commission thinks otherwise, we plan to keep mill rate same as last year.  Mayor Thompson stated, it is tough with increase in insurance costs and 3% increase for employees.  I feel it is important to keep well trained staff, rather than keep training new employees.  There is not a whole lot more that can be cut, you need to have money set aside for new vehicles and improvements.  You also have to have money to fix equipment.  We need to review our utility rates which is obvious in the budget.  We are really under budgeting for things that need to be maintained.  We will have to make some adjustments to the rates or property tax to give a fairly presented budget.  It is important to take care of city infrastructure and employees.  Commissioner Showalter stated, it is important to remember we are talking of cutting needs not wants.  I am not in favor of cutting services, people have come to expect this level of service.  I am not willing to cut services.  Mayor Thompson asked, the $70,000 is about 2 mills?  Kent stated, a little under 2 mills.  Mayor Thompson stated, we can look at that, then address utility rates to help in future.  Commissioner Showalter stated, I would like to get away from taking money from reserve funds to fund general fund.  Mayor Thompson stated, this last year we have pushed hard and received a lot of grant money for projects.  Our share of that money is going fast and if we get new grants, we will need to grow our local share.  Vice-Mayor Howard stated, they have made huge cuts but I feel we need to keep the $70,000 in budget.  With inflation costs and people want good service.  You have to pay for the services.  Kent stated, staff can present a couple options for the commission next meeting.  We will provide a list of cuts so you are aware what has been cut.    

REPORTS

  1. City Manager – 1.  Manager memo and the month end fund balance are in the packet.  2. Ordinance 1776: ADU’s was tabled last meeting.  We are working to change ordinance to include multiple definitions.  It will have to go to planning commission for revision then back to City Commission.  3.  The City and County Commission will hold a joint meeting at Wolak Building Monday July 8th at 6:00 p.m.  4.  Kenton stated, our last pour on Cherry Street project was last Wednesday.  All joints are cut and paint is done, just waiting for it to cure.  My plan is to open Wednesday.  Commission thanks crews for work on project.  Kenton stated, it took a lot of crews and I appreciate the help from other departments.  5.  Zach stated, I put out IFB for the removal of demolition debris at 122 W. 14th Street for July 15th meeting.  Owner emailed me and said will be removed by then.  6.  The reason there is no resolution for 1526 Caldwell is because there will be extra demolition costs for property and need to ensure funds are available.  Vice-Mayor Howard stated, I believe there has been a lot of drug use at the house so need to take proper precautions.  7.  Fire Chief stated there is a burn ban but there is no prohibition on fireworks at this point.  Fireworks are allowed July 2nd and 3rd from 10:00 a.m. to 10:00 p.m.  On the 4th they are allowed to light until 11:59 p.m.  Parks are not to be used for detonation, nor on sidewalks or streets.  We ask you to clean-up your debris.  Commissioner Showalter asked, will you post the ordinance on social media for the public.  Jason stated, it is already on Police Department page. 
  2. City Commissioners

Vice-Mayor Howard – 1.  Thank you to all city employees for all the work they do.  All crews work hard.  Thank you. 

Commissioner Showalter – 1.  I had opportunity to meet with a couple life guards about concerns with salaries and the issues they deal with.    It is tough to keep good people without a good wage.  Encourage an increase in wages for them. 

Commissioner Myers – 1.  No Report 

Commissioner Redlin – 1.  No Report 

ADJOURNMENT WAS HAD ON A MOTION BY Commissioner Showalter seconded by Vice-Mayor Howard.  Motion carried by unanimous VOTE, meeting adjourned at 7:15 p.m.  Next meeting is scheduled for July 15, 2024. 

_____________________________

ATTEST:                                                                               Aaron Thompson, Mayor

_______________________

Mary P. Volk, City Clerk

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