July 23, 2002
The Board of Commissioners of the City of Lawrence met in regular session at 6:35 p.m., in the City Commission Chambers in City Hall with Mayor Hack presiding and Commissioners Dunfield, Rundle, Henry, and Kennedy present.
Mayor Hack proclaimed the week of August 1 – 7, 2002, as “Breast Feeding Awareness Week.”
As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to approve the City Commission meeting minutes of July 16, 2002. Motion carried unanimously.
As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to approve the Sign Code Board of Appeals meeting of June 6, 2002; the Board of Zoning Appeals meeting minutes of June 6, 2002; the Parks & Recreation Advisory Board meeting minutes of June 11, 2002; the Lawrence-Douglas County Public Health Board meeting minutes of May 20, 2002; the Lawrence Public Library Board meeting minutes of June 17, 2002; and, the Housing Trust Fund Board meeting minutes of June 18, 2002. Motion carried unanimously.
As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, toapprove claims to 440 vendors in the amount of $1,595,934.94. Motion carried unanimously.
As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to concur with the recommendation of the Mayor and appoint Bruce Pham to the Convention and Visitors Bureau Advisory Board to fill the un-expired term of Rich McVey which will expire July 1, 2003. Motion carried unanimously.
As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to approvethe Drinking Establishment License for Rick’s Place, 623 Vermont (Contingent Upon State License); and, the Retail Liquor License for Dodson Liquor, 846 Illinois. Motion carried unanimously.
As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to award the sole bid to Chaney Inc., for an exhaust fan replacement at the Lawrence Public Library in the amount of $16,252. Motion carried unanimously. (1)
The City Commission reviewed the bids for road salt for the Public Works Department. The bids were:
BIDDER BID AMOUNT
Central Salt, LLC (State Contract) $28.05 /Ton
Cargill Incorporated $29.68 / Ton
Hutchinson Salt Co., Inc. $31.31 / Ton
Central Salt, LLC $33.20 / Ton
Independence Salt Co. No Bid
As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to award the bid to Central Salt, LLC (State Contract), in the amount of $28.05 / Ton. Motion carried unanimously. (2)
As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to place on first reading, Ordinance No. 7544, rezoning (Z-04-12-02) 6.052 acres, from RS-1 (Single Family Residential District) to RS-2 (Single-Family Residential District). The property is located at 1819 & 1609 Riverridge Road. Motion carried unanimously. (5)
As part of the consent agenda and after the Mayor clarified the amount of acreage, it was moved by Kennedy, seconded by Rundle, to place on first reading, Ordinance No. 7545, rezoning (Z-04-09-02) .025 acres, from RS-2 (Single Family Residential District) to PRD-1 (Planned Residential Development District). The property is generally located east of East 1000 Road (Queens Road). Motion carried unanimously. (6)
As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to place on first reading, Ordinance No. 7546, rezoning (Z-04-10-02) 2.09 acres, from PRD-1 (Planned Residential Development District) to RS-2 (Single Family Residential District). The property is generally located south and west of Wakarusa Drive (extended northward) and east of East 1000 Road (Queens Road). Motion carried unanimously. (7)
As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to place on first reading, Ordinance No. 7553, rezoning (Z-05-13-02) 9.69 acres, from RM-1 (Multiple Family Residential District) to RS-2 (Single Family Residential District). The property is located in Westgate Subdivision, Lots 1-9, Block 1; Lots 1, 3-5, Block 2; Lots 2-10, Block 3; and, Lots 1-8, Block 4. Motion carried unanimously. (8)
Ordinance No. 7548, rezoning (Z-02-07-02) approximately 2.02 acres from RS-1 (Single Family Residence District) to RS-2 (Single Family Residence District), was read a second time. The property is located at 1829 Riverridge Road. As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to adopt the ordinance. Aye: Dunfield, Hack, Henry, Kennedy, and Rundle. Nay: None. Motion carried unanimously. (9)
Ordinance No. 7549, rezoning (Z-04-11-02) approximately 35.825 acres from A (Agricultural District) and A-1 (Suburban Home Residential District) to RS-E Single Family Residence Estate District), was read a second time. The property is north of Clinton Parkway and south and west of Lake Alvamar, formerly known as Yankee Tank Lake. As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to adopt the ordinance. Aye: Dunfield, Hack, Henry, Kennedy, and Rundle. Nay: None. Motion carried unanimously. (10)
Ordinance No. 7550, annexing (A-04-05-02) approximately 30.256 acres, generally located north of Clinton Parkway and south and west of Lake Alvamar was read a second time. As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to adopt the ordinance. Aye: Dunfield, Hack, Henry, Kennedy, and Rundle. Nay: None. Motion carried unanimously. (11)
As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to adopt Resolution No. 6388, setting out the findings and determinations, establishing a benefit district and ordering the improvement of West 6th Street for left turn improvement near Comet Lane. Motion carried unanimously. (12)
As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to approve the site plan (SP-07-49-02) for Bishop Seabury Academy, located at 4120 Clinton Parkway, subject to the following conditions:
1. Provision of a revised site plan to include the following changes:
a. Provision of a revised site plan to include the following changes;
b. Show the maximum driveway width as 30’ per city code;
c. Show the sanitary sewer service line to the building;
d. Remove the street name “Waterford Avenue from the face of the site plan”;
e. Correct the paving square footage listed in the impervious surface summary. Verify that the pavement number includes all asphalt, concrete, parking, sidewalks, patios, tennis courts, etc. per the City Stormwater Engineer’s approval
f. Show the note that one ADA parking space shall be van accessible;
g. Revise species for street trees in landscape schedule to address review comments from Parks & Recreation Department;
h. Provide a 20’ paved vehicle access on the east and north sides of larger building to meet 150’ distance requirement along exterior walls per Uniform Fire Code;
i. Show and/or provide required fire hydrants to serve this facility;
j. Provide building dimensions for all structures and label uses;
k. Dimension building setback boundaries on plan;
l. Show all building entrances for all structures on site;
m. Clearly identify portions of buildings being added or modified graphically;
n. Provision of a revised note on the site plan stating the trash enclosure area shall be screened and constructed in accordance with the City Standards; and,
2. Execution of a Site Plan Performance Agreement.
Motion carried unanimously. (13)
As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to approve the site plan (SP-07-56-02) for Alvamar Clubhouse Addition, located at 4120 Clinton Parkway, subject to the following conditions:
1. Provision of a copy of the agreement regarding the use/ownership of the pool facility as a private recreation facility and that provides for the “Shared use of the existing parking facility during the summer months
2. Execution of a Site Plan Performance Agreement;
3. Provision of a revised site plan to clearly note that the proposed use is a private recreational use;
4. Provision of a revised site plan to include the following notes on the face of the site plan:
a. “Approval of this site for private recreational use be restricted to the seasonal use of the swimming pool and attendant buildings”;
b. “The construction and use of a separate building (as shown on the plan) for concession/restrooms facilities for pool users and the removal of such building at such time as the private pool use is ceased”; and,
c. Provision of a note regarding the location and maintenance of the trash enclosure area during the summer months.
Motion carried unanimously. (14)
As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to authorize publication of the proposed 2003 City Budget for the August 6, 2002 public hearing. Motion carried unanimously. (15)
As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to authorize the Mayor to execute deed for transfer of City property (1,644 sq. ft.) to 6Wak Land Investments, L.L.C., generally located near Overland and Congressional Drives extended. In exchange for this transfer, the property owner has transferred 1, 645 sq. ft. to the City. Motion carried unanimously. (16) As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to authorize the Mayor to sign Subordination Agreements for Danette Michaels, 945 Highland. Motion carried unanimously. (17)
As part of the consent agenda, it was moved by Kennedy, seconded by Rundle, to authorize the Mayor to sign Subordination Agreements for Sandra Reed, 1410 West 22nd Street. Motion carried unanimously. (18)
During the City Manager’s report Mike Wildgen reported that U.S. Representative Moore and his staff were instrumental in helping to acquire a Visa for the firefighter from Hiratsuka, Japan, one of Lawrence’s Sister Cities, who will be visiting Lawrence for several months.
Wildgen reported that the Public Transit System, in spite of the free rides the City offered during last year’s annual sidewalk sale, had a 27% increase of ridership at this year sale.
Wildgen also reported that the water demands hit a 4-year high in the number of days exceeding 19,500,000 gallons. The system is doing well with the new capacity and the City is able to provide water that is needed. The biggest challenge has been the low Kansas River water source.
Ed Mullins, Finance Director, presented a summary of the Second Quarter Financial Report - 2002 for the City of Lawrence. The report covered the second (3) months of 2002. He said the City revenues are starting to feel a strain of a “slow down” in our economy. This will be a test to see the strength of the Lawrence economy. So far Lawrence is doing better than some of our neighboring communities and certainly better than the State of Kansas. The State’s shortfall was primarily in the income tax area, but the sales tax had some growth. The City of Lawrence is seeing flat sales tax and the County is seeing a reduction of about $60,000 in the first half. He said the City budgeted sales tax revenue conservatively which will hopefully help meet our budget. The City was fortunate in the past because we typically were over budget which helped fund the balance in general fund. He said it was out of the ordinary to look at the first half of the financial report and see that the Total General Funds was at 49.4%.
Mullins said the future was unclear because the stock market continues to fall and consumer confidence is being hurt. He said the consumer has driven the economy for the last 6 months because business investment is not there. He said this was a nationwide issue and hopefully could be resolved.
Mullins said when looking at the other revenue areas, interest rates are really hurting. Because the economy is slow, the Federal Reserve keeps the interest rates down and particularly the short-term interest rates where our City primarily invests. He said in his report interest earnings are approximately 250,000 in the first half which represents approximately 28% of the budget. He said the City would be below budget on interest earning this year. This has was also a revenue source where the City thought they budgeted conservatively this year, but was not the case, and in the past has been one of those revenue cushions.
When looking at total expenditures in his report, the City was only 44.2% which was significantly below 50%. Administrative Services was the only general fund department over budgeted due to insurance premiums and liability claims.
Mullins said another concern was the State and their concern about the current fiscal year. The State fiscal year ends June 30 and they were currently figuring their position for the end of the first half. He said a good guess would be the State had a “no fund balance” which means they are going into the current year with no cushion. When the State finds out what the revenue would be this year, they need to make sure those expenditures match. Mullins said the State’s best guess is out of a 4 billion dollar budget, they’re probably going to cut 2 to 3 hundred million dollars. While the State reduced our demand transfer payments in the adopted budget by roughly 4%, he said he thought the City still had a legitimate chance of being on target for the second payment we will receive this year. He said the State would announce some type of action in August. The Governor can make allotments which means he can reduce the budget without having the approval of the legislature. The next revenue update would not occur until November and the State would have a better idea of where their revenues stood. Right now, the State is anticipating some serious cutbacks.
Mullins said concerning the Recreation Fund, they’re revenue source was at 49.1% of the budget and at 40.7% total expenditures. He said their expenditures come in the third quarter. He said class enrollments did not look like they would make budget and estimated that they are $70,000 below what the City anticipated for budgeted revenues. The Parks and Recreation Department has been proactive in dealing with this situation. He said they are artificially reducing their budget like moving dollars out of their operating accounts and placing them in a contingency account. He said they did have money set aside so if something did come up, they would have freedom to spend that money.
The Transportation fund has an increase in ridership. The fare box revenue was conservatively budgeted and reached nearly $60,000. In 2001 the fare box revenue was over $80,000 and anticipated $100,000 for this year. On the expenditure side 95% of the budget for Transportation Fund is with MV Transportation. The Enterprise Funds cover the revenue side. Water, Sewer, Sanitation, and Stormwater were doing well. Mullins said they charge the City facilities for Stormwater which haven’t been billed and would raise the revenues. He said concerning Golf, the revenues from the greens fees and cart rental were the same as last year. Last year the golf course personnel had to artificially restrict their budget because their revenues were coming in under budget and thought they would come under budget this year by $100,000 or $150,000. He said the growth seems to come from the fee increase. He said they were only at 33.2 percent of expenditures.
Mullins said looking at investments, the City had over $84 million in cash investments at the end of the first half. He said $72,000 was invested with approximately 28% in certificates of deposits, 28% in government agencies and 14% was in cash. The average rate of return on those investments was only 1.89%. This was the quarter where the City was hit with lower interest rates.
Mullins said in conclusion, the City is seeing some revenue strains. He said he thought the Department Directors were doing a good job in controlling their expenditures. Several funds particularly Recreation and Golf Course funds, the City has taken means to artificially reduce their budget to ensure that they do stay within the available revenue.
Commissioner Henry said this was a very comprehensive and helpful report.
Mayor Hack said the report was not the best news, but was well presented. (19)
Mayor Hack called a public hearing on the vacation of City alley-way in Belmont Addition, reserving utility placement, commonly located in the 1400 block of Prospect Street.
Chuck Soules, Director of Public Works, presented the staff report on the vacation of City alley-way in Belmont Addition. He said the City had purchased the Harmon property at 902 East 13th as part of the 13th & Oregon stormwater project. He said staff had been working with the Harmon’s to relocate the house. There are existing utilities in the alley and staff was requesting vacation with reservation of the utility easement.
Commissioner Rundle asked if any of the property reverts to neighboring owners.
Wildgen said it would be split 50/50.
Upon receiving no public comment, it was moved by Henry, seconded by Rundle, to close the public hearing. Motion carried unanimously.
Moved by Dunfield, seconded by Kennedy, to approve the Order of Vacation of City alley way in Belmont Addition, reserving utility placement, commonly located in the 1400 block of Prospect Street. Motion carried unanimously. (20)
Ed Mullins, Finance Director, presented the City of Lawrence Debt Management and Fiscal Policy and Debt Issuance Guidelines. He said the City of Lawrence did not currently have a formal Debt Service Policy and was one of the items GFOA recommends for the financial and budget areas. He said this was more of a documentation of what the City currently did. This was not a divergence from anything the City had done, but a way of formalizing those guidelines. He said this would set up criteria and guidelines for financing a project.
One major criteria was including it into the City’s Capital Improvement Plan and budget. When the City bonds those projects, we want the useful life of that project to be longer than the debt that is being issued. He said the City would also want to establish how to pay that debt. The City typically used the level payment which the principle and interest payments were the same every year. He said the City also establishes some reserves which was not formally set in our policies particularly those enterprise funds where we issue debt and where we want to make sure we have the working capital to see us through any lean times as well as the cover ratios and able to meet that debt payment.
He said it is also important to do some competitive sales when the City is seeking bond counsel or financial advisors. One of the important things associated with this policy is a set of debt issuance guidelines where we look at some of the ratios involved whether it is appraised value per capita. The City tries to set some limits that are more strict than what the State statute set. This is to provide an early warning system so that if some of these ratios, for example, if our debt service expenditure start exceeding 15% of the governmental expenditures, then we know we’re getting a little bit heavy on the principal and interest payments compared to some other cities with our bond rating. He said this could help determine the importance of a project. He said it is a way of keeping the City below statutorily what the State would require.
He said these are some of the things the City needed to feel comfortable with because there is a tradeoff between how much debt you want to issue and how much you want to pay for operating expenses and where you want that property tax levy. While some of the bonds are paid off with revenues from stormwater or water and sewer revenue bonds, the primary emphasis is on General Obligation Bonds and those are paid primarily by property taxes. That was the major concern which was trying to keep that debt service levy from getting too large that has a negative impact on the operating side.
Mayor Hack informed the public that the City Commission had discussed this Debt Management & Fiscal Policy at a study session so it was not the first time the Commission has discussed it. She said she was pleased to have this policy as part of their budget.
Vice Mayor Dunfield told Mullins that he was good at keeping the City in line, but it was nice to have a set of official signposts that they could refer to and form a basis for these kinds of decisions.
Commissioner Rundle echoed Vice Mayor Dunfield’s comments on staff’s efforts regarding this policy.
Commissioner Kennedy said it seemed like the City had these policy issues in place, but did not have it documented.
Commissioner Henry said it filled a real void.
Moved by Rundle, seconded by Dunfield, to adopt a Debt Management and Fiscal Policy and Debt Issuance Guidelines. Motion carried unanimously. (21)
Moved by Kennedy, seconded by Rundle, to adjourn at 7:05. Motion passed unanimously.
APPROVED:
_____________________________
Sue Hack, Mayor
ATTEST:
___________________________________
Frank S. Reeb, City Clerk
COMMISSION MEETING JULY 23, 2002
1. Bid – Exhaust fan replacement for Library to Chaney for $16,252 (Sole Bid).
2. Bid – Road salt to Central Salt for 28,05/ton.
3. Contract – New telephone system for Wastewater Plant to Siemens Info & Communication Networks, for $19,173.
4. Contracts – 10 water meters from Rural Water District No. 1 for $36, 991.62.
5. Ordinance No. 7544 – 1st Reading, rezone (Z-04-12-02) 6.052 acres, from RS-1 to RS-2, 1819 & 1609 Riverridge Rd.
6. Ordinance No. 7545 – 1st Reading, rezone – (Z-04-09-02) .025 acres, from RS-2 to PRD-1, E of E 1000 Rd (Queens).
7. Ordinance No. 7546 – 1st Reading, rezone – (Z-04-10-02) 2.09 acres, from PRD-1 to RS-2, S & W of Wakarusa, & E of E 1000 Rd (Queens).
8. Ordinance No. 7553 – 1st Reading, rezone – (Z-05-13-02) 9.69 acres, from RM-1 to RS-2, Westgate Sub. Various lots.
9. Ordinance No. 7548 – 2nd Reading, Rezone (Z-02-07-02) 2.02 acres from RS-1 to RS-2, 1829 Riverridge Rd.
10. Ordinance No. 7549 – 2nd Reading, Rezone (Z-04-11-02) 35.825 acres from A and A-1 to RS-E, N of Clinton Pkwy & S & W of Lake Alvamar.
11. Ordinance No. 7550 – 2nd Reading, Annex (A-04-05-02) 30.256 acres, N of Clinton Pkwy & S & W of Lake Alvamar.
12. Resolution No. 6388, order improvement of W 6th, left turn lane near Comet Ln.
13. Site Plan – (SP-07-49-02) Bishop Seabury Academy, 4120 Clinton Pkwy.
14. Site Plan – (SP-07-56-02) Alvamar Clubhouse Addition, 4120 Clinton Pkwy.
15. Publication Authorization –2003 City Budget
16. City Property Transfer – 6Wak Land Investments, Overland & Congressional Dr.
17. Subordination Agreement – 945 Highland, Danette Michaels.
18. Subordination Agreement – 1410 W 2nd, Sandra Reed.
19. 2nd Quarter Financial Report – 2002 for the City of Lawrence
20. Vacation – City alley-way in Belmont Addition, 1400 Blk of Prospect.
21. City of Lawrence Debt Management & Fiscal Policy & Debt Issuance Guidelines.