Regular Meeting
February 13, 2012 6:30 p.m.
City of Oswego, Kansas
Present: Councilmembers Ty Lewis, Jane Rea, Dee Brown, Darren Tynan and Bill Owens with Mayor Glenn Fischer presiding.
Absent: Councilmember Terry Edwards
Also present: City Clerk Cheri Peine, Deputy Clerk Carol Eddington, Police Chief George Elliott, City Superintendant and Fire Chief Donnie Allison, Attorney Rick Tucker, Larry Richardson, David Hill, Billy Gray and Marvin Hoobler.
OPENING PRAYER AND PLEDGE OF ALLEGIANCE
Pastor David Hill, FirstBaptistChurch, opened the meeting with a prayer. Councilmember Ty Lewis led the group in the Pledge of Allegiance.
RECOGNITION
Marvin Hoobler – 20 Year Service Award for Housing Committee
Hoobler resigned from the committee after serving as one of the original members. He was very involved in the first HOME grant the city received and has attended many meetings in the area on behalf of the Housing Committee. Mayor Fischer presented Mr. Hoobler with a gift from the city in recognition of his 20 years of voluntary service.
PETITIONS AND DELEGATIONS
Bond Refunding – Water & Sewer Bonds
Clerk Peine reported that the city received an A- bond rating which indicates that the city is in good financial condition and helps with the interest rate on the refinancing. She said the refunding of the bonds is saving the city $782,518.06. The new interest rate on the bonds is 3.58%.
An ordinance entitled “AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION REFUNDING BONDS, SERIES A, 2012, OF THE CITY OF OSWEGO, KANSAS, FOR THE PURPOSE OF PROVIDING FUNDS TO REFUND A PORTION OF THE CITY'S OUTSTANDING GENERAL OBLIGATION BONDS AND THE ISSUANCE OF GENERAL OBLIGATION WATER UTILITY SYSTEM REFUNDING BONDS, SERIES B, 2012, OF THE CITY OF OSWEGO, KANSAS, FOR THE PURPOSE OF PROVIDING FUNDS TO REFUND THE CITY’S OUTSTANDING WATER UTILITY SYSTEM REVENUE BONDS; PROVIDING FOR THE LEVY AND COLLECTION OF AN ANNUAL TAX FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID BONDS AS THEY BECOME DUE; AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS IN CONNECTION THEREWITH; AND MAKING CERTAIN COVENANTS WITH RESPECT THERETO”was presented. This ordinance provides for the refunding of the 2005 water bond issue, the 1999 sewer bond issue and the 2003 sewer bond issue.
After going through the bond documents, Tynan made a motion and Owens seconded to pass the ordinance as presented. Motion carried. Clerk assigned it Ordinance #1283.
Resolution 2-13-12A entitled A RESOLUTION PRESCRIBING THE FORM AND DETAILS OF AND AUTHORIZING AND DIRECTING THE SALE AND DELIVERY OF GENERAL OBLIGATION REFUNDING BONDS, SERIES A, 2012 OF THE CITY OF OSWEGO, KANSAS, PREVIOUSLY AUTHORIZED BY ORDINANCE NO. 1283 OF THE ISSUER; MAKING CERTAIN COVENANTS AND AGREEMENTS TO PROVIDE FOR THE PAYMENT AND SECURITY THEREOF; AND AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS CONNECTED THEREWITH was presented.
Rea made a motion and Lewis seconded to approve Resolution 2-13-12A. Motion carried.
Resolution 2-13-12B entitled A RESOLUTION PRESCRIBING THE FORM AND DETAILS OF AND AUTHORIZING AND DIRECTING THE SALE AND DELIVERY OF GENERAL OBLIGATION WATER UTILITY SYSTEM REFUNDING BONDS, SERIES B, 2012, OF THE CITY OF OSWEGO, KANSAS, PREVIOUSLY AUTHORIZED BY ORDINANCE NO. 1283 OF THE ISSUER; PROVIDING, IF NECESSARY FOR THELEVY AND COLLECTION OF AN ANNUAL TAX FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID BONDS AS THEY BECOME DUE; AND AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS IN CONNECTION THEREWITH was presented.
Rea made a motion and Lewis seconded to approve Resolution 2-13-12B. Motion carried.
Peine reported that there are new IRS requirements on bonds. She spoke to Kevin Cowan, bond counsel, about these requirements. Cowan stated that the city meets all of the requirements on the current bonds, however, the city needs to adopt a Tax-Exempt Financing Compliance Procedure for these and all future bond issues. Cowan has generated this document so it complies with IRS regulations. A RESOLUTION PROVIDING FOR THE ADOPTION OF A TAX-EXEMPT FINANCING COMPLIANCE PROCEDURE RELATING TO OBLIGATIONS ISSUED AND TO BE ISSUED BY THE CITY OF OSWEGO, KANSAS was presented. Owens made a motion and Brown seconded to adopt the Tax-Exempt Financing Compliance Procedure – Resolution 2-13-12C. Motion carried.
CONSENT AGENDA
The Consent Agenda includes minutes from last month’s regular meeting and any special meetings held since then, accounts receivables report, monthly revenue report for all funds, monthly expense reports (accounts payable and payroll), petty cash listing, fund balance, revenue and expense reports for water, sewer, refuse and golf course, water loss report, expense report for general fund by department breakdown and total budget used, and monthly reports on franchise fee, sales tax receipts (both city & county sales tax), overtime, vacation, water, growth (households in/out), building permits, and municipal court.
Also included in the Consent Agenda is the appointment of Tyler Dreiling to fill the unexpired term of Marvin Hoobler on the Housing Committee.
Rea made a motion and Brown seconded to approve the Consent Agenda. Motion carried.
Fair Board Agreement
Attorney Tucker said he has made the last round of changes to the agreement. He asked if the city wanted to include a requirement of the Fair Board to conduct a survey of the property. General consensus was that the Governing Body was satisfied that the Fair Board’s plans were going to stay within the area outlined on the map for the new arena. Attorney Tucker will send the agreement on to the Fair Board.
Tennis Court Lawsuit
Attorney Tucker reported that Crossland promised to provide a proposal for the city by tonight’s Council meeting. He did not receive anything. He will contact the attorney for Crossland tomorrow and find out why; then he will contact Mayor Fischer with a report. Council asked Supt. Allison to check the tennis courts and see if there are more cracks.
OLD BUSINESS
Dangerous Structures
These three properties have been identified as not meeting minimum housing standards and cannot be occupied based upon issues the city is aware of:
917 6th St.
2 N. Commercial
303 California
There are other properties that do not meet the minimum housing standards, however, these stand out due to their visibility in the community. Based on costs paid in the past for removal, it is estimated that these homes could be removed for between $6,000 - $8,000. Since there are no other houses in the same block, asbestos requirements do not apply so there is no added cost for that.
The city usually sends a courtesy letter before the formal proceedings begin. This gives the owner time to contact the city with any plans they have for the house or questions they may have about the condemnation process.
Brown made a motion and Rea seconded to begin the condemnation process on all three houses – 917 6th St., 2 N. Commercial St. and 303 California St. Motion carried.
Inoperable Vehicle –Preston
Dottie Preston called and then faxed a request to Clerk Peine today asking for another 4 month extension for them to have the vehicle moved. She stated that her husband has been through another bout of illness recently. Resolution 2-13-12D, entitled A RESOLUTION PROVIDING THE FINDINGS OF THE OSWEGO HEARING BOARD
REGARDING THE VIOLATION OF CHAPTER 8, ARTICLE 2 OF THE CODE OF THE CITY OF OSWEGO, KANSAS KNOWN AS THE JUNKED MOTOR VEHICLES ON PRIVATE PROPERTY SECTION AND THE EXTENSION OF TIME GRANTED FOR PROPERTY OWNER TO COMPLY WITH SAID VIOLATION was presented. Owens made a motion and Tynan seconded to adopt the Resolution and allow the four month extension. Motion carried.
Building Permits/Zoning Amendments
Clerk Peine reported that Red Chair Investments has withdrawn their application for a conditional use permit to convert their building into apartments for both short term and long term units. City staff will be listing their building on Location One – a national economic development site where retail and industrial properties are available to businesses or individuals looking for a building site or structure.
Minimum Housing Code – Multiple Inspections
When a house is turned into the city for minimum housing code violations, city staff inspects the house and generates a very clear and simple list of items that need to be corrected before the house can be inhabited. This list is provided to the property owner. The house must be inspected by the city again after the work has been completedto make sure that all items on the list have been corrected. This process usually only takes one or two inspections, however, there have been times when the property owner reports they are ready for the city to inspect but they know they have not corrected all of the violations so staff has to keep going back. Staff is asking that the Council implement a policy that would allow the city to charge $25 for repeated inspections and that this fee be paid up front.
After some discussion, Owens made a motion and Rea seconded to charge a $25 fee for every inspection visit after the initial visit and two checks. Motion carried.
Airport
New Hangars
Clerk Peine reported there are three people who want to construct hangars at the airport, however additional land is needed. The Airport Board felt they needed to know that they had the support of the Council before going further with any discussions of land acquisition. The hangars would need to be located west of the current strip and south of the current hangars. In addition, a 50’ strip along the runway is needed to come into compliance with new regulations which would also require acquisition of land as well.
Fuel System
Rick Bryant, Airport Development Group (ADG) was present at the Airport Board meeting. He suggested fencing the fuel tanks with the pumps on the outside and installing lighting and security cameras to provide security. The city would be required to prepare a spill plan (cost of $3,000 by ADG). The city has been awarded a grant of $90,000 from KDOT and must match the grant up to 10%. The match can be in cash
and/or in-kind labor, etc. ADG is recommending two 6,000 gallon tanks in order to provide both AvGas 100LL and Jet A.
Owens raised questions about the frequency of use at the airport and whether the city had any documented study on the economic impact the airport has on Oswego. It was determined to have the Airport Board and Rick Bryant attend the March Council meeting and address any questions or concerns the Council has.
Water Project – Phase I – Rural Development-Distribution Repairs
There are two pay requests for the project this month:
LaForge Construction – Pay Estimate #10 - $208,556.55
Shafer, Kline & Warren – Invoice #13 - $25,925.44
Rea made a motion and Brown seconded to approve pay estimate #10 from LaForge Construction in the amount of $208,556.55. Motion carried.
Brown made a motion and Rea seconded to approve the invoice #13 from Shafer, Kline & Warren in the amount of $25,925.44. Motion carried.
Water Project – Phase II – Rural Development – Intake, Streambank & Dam
Shafer, Kline & Warren has advised that Mike Hall, the engineer on this project, is no longer with them. The project has been re-assigned to Matt Eblen. Eblen has contacted the city and advised that this project will be his primary focus in the next few weeks and expects to submit the plans and specifications to the Division of Water Resources and Rural Development by March 1st.
Water Tower Inspection Reports
Utility Service, Inc. has inspected the outsides of both tanks. It will be necessary to drain the towers when the new water mains are tied in so inspection of the inside of the tanks will occur then. The reports were included in the Council packets and indicated that the exteriors of the towers are in good condition. Councilmember Lewis said it looks like there is some rust on the exterior of the downtown tower on the south side. Supt. Allison will check on it.
Diversion Flowmeter – Exception
The KS Dept of Agriculture has been onsite and provided a compliance check relative to the order the city received in October of last year notifying the city that flowmeters are to be installed on authorized points of diversion by December 31, 2012. The city is being granted an exception to use the meter we currently have installed until such time that the existing meter is replaced or the piping changes. The meter the city is using now exceeds the accuracy requirements.
Sewer Fund
Clerk Peine reported that the sewer fund is not meeting monthly expenses at this time. Hopefully, we will know more information on the correctional camps within the next
three months (around budget time). The refunding of the GO Bonds will decrease the annual payment and next year the loan through KDHE will be paid off so these will help also. Council decided to take no action at this time.
Housing Grants
HOME
The Housing Committee will meet on February 23rd to review and determine the selection of applicants to receive grant funds. Susan Galemore, Grant Administrator will attend the meeting.
CDBG
The Ks Dept of Commerce will be holding their annual public hearing on changes to the CDBG program on February 29th in Topeka and Clerk Peine plans to attend. Galemore, Grant Administrator, advised there are some major changes to the program for next year and she strongly encourages someone from the city attend the hearing if the city is interested in participating in next years grant program.
Golf Course
Included in the packet are: a financial report for the month of January, a revenue/expense comparison report for previous years and year to date as well as a cash report showing cash on hand as of January 31st.
City Hall, Police & Fire Departments Rehab Update
The Committee met with Terry Hardman. The Department Heads went over the needs of their respective departments and discussed various ideas for the building layout and work to be considered. Hardman will provide a couple of layouts and the cost for the work for different aspects of the project.
It has been determined not to use Rural Development funding so the Council needs to take official action to cancel the request for funding which will allow RD to release the funds it had set aside for this project. Rea made a motion and Lewis seconded to withdraw the request for funding through Rural Development. Motion carried.
Swimming Pool Updates
Training Policy
The committee will meet later this week to review and discuss possible changes to the policy.
ADA Changes
The city was recently advised of changes in ADA laws that become effective March 2012:
- If the pool circumference is over 300 ft. there must be two ADA accessible entries into the pool.
- Wading pools must have a zero entry.
Clerk Peine spoke with Jeff Bartley, Water’s Edge Aquatics, who prepared a pool plan for the city a few years ago. She recommends the Council meet with him and discuss these improvements as well as the other improvements that have been discussed recently such as repairs to the pool flooring, sandblasting and painting, water features, shade structures, etc. Council agreed and asked Peine to set up a special meeting.
NEW BUSINESS
Franchise Agreement – Kansas Gas Service
The current franchise with Kansas Gas expires in April of 2012. Joe Sinnett, Manager of Community Relations with KGS met with Clerk Peine to discuss options for renewal of the franchise. Currently the franchise fee is 3%. All other franchises with the city are at 5%. The city could increase this franchise to 5% as well by phasing in the increase if not all at once. Another change they are proposing is to capture a franchise fee from customers currently purchasing their gas from another company but using KGS transportation services. Most cities have been making this change so that all consumers are treated the same.
League of KS Municipalities Annual Conference – October 6-8, 2012
Clerk Peine asked if anyone thought they might want to attend the conference. If so, the city needs to secure hotel reservations now. Mayor Fischer said to make a reservation for him.
Municipal Equipment/Capital Improvement Transfers
When adopting the 2011 budget, only a few projects/equipment items were approved for transfers: computer upgrades, building renovation, pool improvements, airport improvements and equipment that can be purchased from highway funds (grader, dump trucks, street sweeper, tractor/loader, etc). At budget time, it was determined that a review would be made at the end of the year to see if the cash balances in the utility funds and the General Fund were sufficient enough to make transfers for future projects/equipment purchases.