June 5, 2007
The Board of Commissioners of the City of Lawrence met in regular session at 12:00 p.m., in the City Commission Chambers in City Hall with Vice Mayor Dever presiding and members Amyx, Chestnut and Highberger present. Mayor Hack was absent.
Vice Mayor Dever removed from the consent agenda and deferred for two weeks, the consent agenda item regarding the negotiation of a design-build contract with the design-build team of CAS Construction/Professional Engineering Consultants for the preliminary design and submission of a guaranteed maximum price for the construction of the West Baldwin Creek Sanitary Sewer Interceptor project in accordance with the recommendations in the 2003 Wastewater Master Plan.
CONSENT AGENDA
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to approve City Commission meeting minutes from May 15, 2007. Motion carried unanimously.
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to approve the Convention & Visitors Bureau Advisory Board meeting minutes of March 27, 2007; the Uniform Building Code Board of Appeals meeting minutes of May 3, 2007; the Lawrence-Douglas County Metropolitan Planning Commission meeting minutes of April 23-25, 2007; the Historic Resources Commission meeting minutes of April 19, 2007; the Hospital Board meeting minutes of April 18, 2007; and the Lawrence-Douglas County Housing Authority meeting minutes of April 23, 2007. Motion carried unanimously.
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to approve claims to 603 vendors in the amount of $2,305,955.69 and payroll from May 13, 2007 to May 26, 2007 in the amount of $1,746,160.75. Motion carried unanimously.
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to approve the Drinking Establishment License to Applebee’s Neighborhood Grill & Bar, 2520 South Iowa; Royal Crest Lanes, 933 Iowa; and Paisano’s Ristorante, 2112 West 25th. Motion carried unanimously.
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to concur with the recommendation of the Mayor and appoint to the Lawrence-Douglas County Housing Authority Advisory Board Charlie Dominquez to a term which will expire June 30, 2010 and David Clark to a term which will expire June 30, 2011. Motion carried unanimously.
The City Commission reviewed the bids for five (5) refuse compactors for the Public Works Department. The bids were:
BIDDER BID AMOUNT
Roy Conley & Company $81,800
Roy Conley & Company, add. units $16,360
Texoma Waste Control $83,800
Texoma Waste Control, add. units $16,760
Downing Sales & Service $84,200
Downing Sales & Service, add. units $16,840
Big Stuff, Inc. $97,525
Big Stuff, Inc, add. units $19,505
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to award the bid to Roy Conley & Company, in the amount of $81,800. Motion carried unanimously. (1)
The City Commission reviewed the bids for supervisory control and data acquisition software for the Utilities Department. The bids were:
BIDDER BID AMOUNT
RE Pedrotti $59,960.00
En Pointe Technologies Sales, Inc. $67,753.88
Logic, Inc. NO BID
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to award the bid to RE Pedrotti, in the amount of $59,960.00. Motion carried unanimously. (2)
The City Commission reviewed the bids for programmable logic controller hardware for the Utilities Department. The bids were:
BIDDER BID AMOUNT
Logic, Inc. $75,663.25
En Pointe Technologies Sales, Inc. $80,224.26
RE Pedrotti $88,197.00
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to award the bid to Logic, Inc., in the amount of $75,663.25. Motion carried unanimously. (3)
The City Commission reviewed the bids for adjustable frequency drives for the Utilities Department. The bids were:
BIDDER BID AMOUNT
Logic, Inc. $154,776.66
Motor Control Specialties $161,350.00
Associated Air Products $179,695.00
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to award the bid to Logic, Inc., in the amount of 154,776.66. Motion carried unanimously. (4)
The City Commission reviewed the bids for painting Outdoor Aquatic Center pool for the Parks and Recreation Department. The bids were:
BIDDER BID AMOUNT
JF McGivern $69,865
APC $119,300
Dayco Painting $124,768
Commercial Waterproofing, Inc. $134,750
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to award the bid to JF McGivern, in the amount of $69,865.00. Motion carried unanimously. (5)
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to approve Change Order No. 1 in the amount of $46,640 for additional crack sealing to be included in the 2007 Crack Seal Program. Motion carried unanimously. (6)
The City Commission reviewed the bids for Project 1-SR1-107(S), KLINK, milling, overlay, pavement marking, and minor geometric improvements for the Public Works Department. The bids were:
BIDDER BID AMOUNT
Engineer’s Estimate $650,522.60
LRM Industries, Inc. $478,963.74
Asphalt Improvement Company $520,227.62
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to award the bid to LRM Industries, in the amount of $478,963.74. Motion carried unanimously. (7)
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to set a bid date of June 19, 2007, for the 2007 Overlay and Curb Repair Program, Phase 2. Motion carried unanimously. (8)
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to authorize the City Manager to enter into an Engineering Contract with B.G. Consultants, Inc. for $76,873.14 for the completion of plans and specifications for geometric improvements on 19th Street, from Ohio Street to Alabama Street. Motion carried unanimously. (9)
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to place on first reading Ordinance No. 8115, rezoning (Z-09-46-04) of 11.93 acres from UR (Urban Reserve) to RM12 (Multi-Dwelling Residential, located at the southeast corner of George Williams Way and Overland Drive in the recently recorded Final Plat of Oregon Trail Addition. Motion carried unanimously. (10)
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to place on first reading Ordinance No. 8116, rezoning (Z-09-47-04) 16.47 acres from UR (Urban Reserve) to RS7 (Single-Dwelling Residential), located at the northeast portion of the recently recorded Final Plat of Oregon Trail Addition lying north of Overland Drive. Motion carried unanimously. (11)
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to place on first reading Ordinance No. 8117, rezoning (Z-09-48-04) 31.93 acres from UR (Urban Reserve) to RM12D (Multi-Dwelling Residential), located in the northwest portion of the recently recorded Final Plat of Oregon Trail Addition lying north of Overland Drive as well as the southeast portion of the plat. Motion carried unanimously. (12)
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to place on first reading Ordinance No. 8114, Special Use Permit (SUP-03-03-07) for The Castle Tea Room, located at 1307 and 1313 Massachusetts Street, Lawrence, Kansas. Motion carried unanimously. (13)
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to place on first reading Ordinance No. 8113, rezoning (Z-01-02-07) of First Step Facility, 7.73 acres from RS10 (Single-Dwelling Residential) to RMO (Multi-Dwelling Residential-Office), located at 3015 W. 31st Street, Lawrence, Kansas. Motion carried unanimously. (14)
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to place on first reading Ordinance No. 8118, establishing a west Baldwin Creek gravity sewer line connection fee. Motion carried unanimously. (15)
Ordinance No. 7912, rezoning (Z-03-19-05) of Stoneridge East Subdivision, 4.883 acres from UR (Urban Reserve) District to RS7 (Single-Dwelling Residential) District, locates south of 6th Street and west of Stoneridge Drive (extended), Lots 2-13, Block 1, Lawrence, Kansas, was read a second time. As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to adopt the ordinance. Motion carried unanimously. (16)
Ordinance No. 8110, rezoning (Z-03-20-05 & Z-03-21-05) Stoneridge East Subdivision, 11.4 acres from UR (Urban Reserve) District to PRD (Planned Residential Development) District, located south of 6th Street and west of Stoneridge Drive (extended), Lot 1, Block 1, Lawrence, Kansas, was read a second time. As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to adopt the ordinance. Aye: Amyx, Dever, Chestnut, and Highberger. Nay: None. Motion carried unanimously. (17)
Ordinance No. 8112, establishing “no parking” along the south side of Jordan Lane and establishing “no parking school days” along the west side of Oak Tree Drive adjacent to the school crossing at Vantuyl Drive, 3:30-4:00 p.m., Monday, Tuesday, Thursday and Friday and 2:00-2:30 p.m., Wednesday, was read a second time. As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to adopt the ordinance. . Aye: Amyx, Dever, Chestnut, and Highberger. Nay: None. Motion carried unanimously. (18)
Ordinance No. 8109, regarding the towing and impoundment of vehicles by the Lawrence Police Department, was read a second time. As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to adopt the ordinance. . Aye: Amyx, Dever, Chestnut, and Highberger. Nay: None. Motion carried unanimously. (19)
Ordinance No. 8111, regarding the unlawful hosting of minors consuming alcohol or cereal malt beverage, necessary to comply with a State law change, was read a second time. As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to adopt the ordinance. Aye: Amyx, Dever, Chestnut, and Highberger. Nay: None. Motion carried unanimously. (20)
Ordinance No. 8106, setting the proposed maximum assessments for Williamsburg Court and Williamsburg Place, was read a second time. As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to adopt the ordinance. . Aye: Amyx, Dever, Chestnut, and Highberger. Nay: None. Motion carried unanimously. (21)
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to concur with the Planning Commission’s recommendations to approve the Final Plat (PF-04-06-07) for Village Meadows, a 17.930 acre development, located at the northwest corner of West. 6th Street and Congressional Drive; and accept the dedication of easements and rights-of-way subject to the following conditions:
1. Provision of the following fees and recording documentation:
a) A current copy of a paid property tax receipt.
b) Recording fees made payable to the Douglas County Register of Deeds.
2. Submittal of a Temporary Utility Agreement.
3. Pinning of the corners of the subdivision per Section 20-811(g)(8).
4. Provision of the following modifications to the Final Plat:
a) Note No. 7, “The City is hereby granted a temporary right of entry to plant the required street trees pursuant to Section 20-811(g) of the Land Development Code.”
b) Note No. 9, “Interior pins to be set within 45 days after completion of sanitary sewer construction, grading and acceptance by the City of Lawrence
Motion carried unanimously. (22)
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to approve the site plan (SP-06-54-06) for Glenwood Apartments, located at the southeast corner of Wakarusa and Eisenhower Drives, subject to the following conditions.
1. Submittal of a Site Plan Performance Agreement.
2. Submittal and approval of a photometric plan.
3. Submittal of an Agreement not to Protest the Formation of a Benefit District for Future Intersection Improvements to the Intersection of Wakarusa Drive and Eisenhower Drive.
4. Submittal of Public Improvement Plans to the Utilities Department for sanitary sewer (inclusion of stub line locations are suggested) and water lines prior to releasing the site plan for building permits.
5. Submittal of a Stormwater Pollution Prevention Plan (SWP3) to the Public Works Department prior to releasing the site plan for building permits.
6. Submittal of stormwater construction documents to the City’s Stormwater Engineer for review of curb inlet sizes prior to releasing the site plan for building permits.
7. Recordation at the Register of Deeds’ Office of utility easements for appropriate proposed public utilities prior to releasing the site plan for building permits.
8. Revision of the site plan to include the following:
a. Relocation of the service lines for buildings C and D to the parking lot islands near the north end of the buildings.
b. Inclusion of additional utility easements, recorded by separate easement, and Book and Page numbers for proposed public utilities.
Motion carried unanimously. (23)
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to approve amendments to Chapter 20, Articles 3, 4, 5, 10, 11, 15, and 17 of the Development Code for TA-03-02-07 and direct staff to draft ordinance. Motion carried unanimously. (24)
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to approve amendments to Chapter 20, Articles 4, 5, 6, 9, 10, 13, and 17 of the Development Code for TA-10-11-06 and direct staff to draft ordinance. Motion carried unanimously. (25)
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to authorize the write-off of certain water, sewer, sanitation, and miscellaneous receivables deemed uncollectible by the Finance Department for the period of January 1, 2005 through December 31, 2005. The total requested write-off is $122,015.31 for 742 utility billing customers and $103,161 for 72 miscellaneous receivable accounts; and authorize staff to draft ordinance as recommended in staff memo for future commission adoption. Motion carried unanimously. (27)
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to authorize the Mayor to sign Releases of Mortgage for Karen Feltner, 314 Birch Lane, Rafael and Alma Torres, 109 Glenview Drive, Mary Krische, 1742 Learnard Avenue, and Marry Butterbrodt, 1505 E, 28th Terrace. Motion carried unanimously. (28)
As part of the consent agenda, it was moved by Amyx, seconded by Chestnut, to authorize the Mayor to sign a Subordination Agreement for Rebecca Stakes, 431 Elm Street. Motion carried unanimously. (29)
CITY MANAGER’S REPORT:
During the City Manager’s Report, David Corliss said staff had prepared a property tax base comparison, comparing Lawrence with other area Kansas municipalities regarding a percent of the City’s property tax base that was residential and non-residential and that information would likely be referred to in future discussions.
Also, he said Vice Mayor Dever and Commissioner Amyx agreed to serve on a committee that would help staff review the Request for Qualifications for the Wakarusa Water Reclamation Facility projects.
He also reported the Solid Waste Division was testing a new tire technology to help alleviate tire damage to the City’s sanitation trucks during trips to the landfill.
Finally, he said staff drafted a sales tax report that showed receipts to date from the one percent City sales tax the City received and the City’s share of the County wide sales tax. He said to keep in mind this was on a basis by which the City received those payments. He said usually those payments were a couple months late from when the payments were received from retailers.
Commissioner Chestnut said Ed Mullins, Finance Director, had done a lot of work in trying to project revenue shortfalls. He said as information was received staff needed to make sure those projections were fairly accurate relative to a shortfall.
Corliss said those numbers were not a projection, but the actual numbers that had come in to date and staff would draft a report to be placed on the City Manager’s Report when staff received those numbers.
Commissioner Chestnut asked Corliss if he had any comments about the RFQ’s for the public or in general.
Corliss said staff was in the process of reviewing those RFQ’s to look at those qualifications of those individual groups who had submitted an RFQ for the project and staff looked forward to their presentations. He said those projects were some of the most important public improvement projects the community would undertake and staff wanted to be sure they were picking the best teams to proceed with. (30)
REGULAR AGENDA ITEMS:
Conduct water and sewage system refunding and improvement revenue bond sale. Award bid to lowest responsible bidder. Declare emergency to allow for first and second reading.
Ed Mullins, Finance Department Director, presented the staff report. He said the City received five bids, with the low bid being Morgan, Keegan & Company, but that company claimed a mistake was made on their bid and with those changes, they went to the highest bid. Therefore, the City was in a position to recommend Prager, Sealy & Co. as the lowest and best bid for the City. Also, staff was recommending that Morgan Keegan pay the difference between their bid and the next low bid which was approximately $107,000. He said it was staff’s recommendation that Morgan Keegan pay a penalty for passing on the bid because when the City received additional bids, the City did not want to appear to be too harsh to those bidders. He said the City’s Bond Counsel was in agreement with that recommendation.
He said the City typically declared an emergency for first and second reading in order for the underwriters to start selling those bonds.
Mullins said regarding the Moody’s rating, staff received a confirmation on the Aa3 Rating which was encouraging because a financial plan was presented and the future debt issuance and Moody’s Rating’s primary concern with the revenue bond site was coverage. He said assuming the City made the proposed future rate increases, then the coverage ratio could be maintained which was the critical element and Moody’s Rating would continue to review that every time there was bond issue.
Commissioner Amyx asked if the settlement with Morgan Keegan & Co. was agreed to and was a done deal.
Mullins said he believed so and they had talked to all parties.
Vice Mayor Chestnut called for public comment.
After receiving no public comment, the City Commission reviewed the Water and Sewage System Improvement Revenue Bonds, Series 2007. The bids were:
BIDDER Net Interest Cost ($) True Interest Rate (%)
Prager, Sealy & Co., LLC $15,422,385.00 4.5565%
Piper Jaffray & Co. $15,789,424.94 4.5658%
Wachovia Securities, LLC $15,660,498.32 4.5860%
UBS Securities LLC $15,762.982.11 4.5943%
Moved by Amyx, seconded by Highberger, to award the bid to Prager, Sealy & Company at a True Interest Cost of 4.5565%. Motion carried unanimously. (31)
It was moved by Amyx, seconded by Highberger, to declare an emergency and adopt on first and second reading, Ordinance No. 8119, authorizing and providing for the issuance of $19,800,000 principal amount of water and sewage system improvement revenue bonds, series 2007, of the City of Lawrence Kansas; making certain covenants and agreements to provide for the payment and security thereof and authorizing certain other documents and actions in connection therewith. Motion carried unanimously. (32)
It was moved by Amyx, seconded by Highberger, to adopt Resolution No. 6725, prescribing the form and details of and authorizing and directing the sale and delivery of $19,000,000 principal amount of water and sewage system improvement revenue bonds, Series 2007, of the City of Lawrence, Kansas, previously authorized by Ordnance No 8119. 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. Motion carried unanimously. (33)
PUBLIC COMMENT:
Ted Boyle, President, North Lawrence Improvement Association, said he was speaking on behalf of the residents of North Lawrence concerning storm drainage. He said they were hearing a lot about a new library, an ice rink, and a sports complex, but the residents in North Lawrence wanted to hear something about storm drainage. He said the problem had escalated since last year when the City Commission passed the RS-5 zoning. Since that time, two properties were sold and those homes were demolished and new homes were placed on less than 7,000 square foot lots. There were two homes in process right now that were in a floodplain and flood prone area.
He said the neighborhood’s letters and the phone calls to the City Commission apparently fell on deaf ears because it continued to happen. He said with the amount of rain this spring, fortunately, there were no homes flooded in that area yet, but there was standing water which was causing a mosquito problem, but yet, the Commission was allowing development in an RS-5 zoning district which was a higher density. He said their association had been advocating for less density, at least 7,000 square feet, but developers and realtors were allowed to dictate to the Commission that building in the area was a good idea and were building in the name of affordable housing. He said there was nothing affordable about housing in Lawrence, Kansas, so consequently North Lawrence suffered from high development. He said since 1995 there were over 125 homes built in North Lawrence.
He said he grew up in North Lawrence and lived at that location for over 50 years and never had a storm water problem because those vacant lots that were currently built upon with homes, back then, were gardens and areas to percolate the water down into the ground. He said the North Lawrence residents would like to know when some of those drainage problems were going to be taken care of, such as the pump station on Maple Street which was a main priority to the residents of North Lawrence. He said the pump station would stop a lot of flooding to the core of the residential area as well as Lyon’s Park. He said when flooding occurred by places such as Lonny’s Recycling, located in North Lawrence, any hazardous fluids, such as oil or antifreeze, would wash down the stream. If the pump was at that location, that problem would be alleviated.
He said the burden of this problem fell on the City Commission because it was their final approval for development. He said the City Commission liked to take tax dollars, but they did not receive much in return. He said North Lawrence was a low to moderate income neighborhood and 78% of the residents were owner occupied homes and people who bought in North Lawrence stayed in that area for a long time.
He said in discussion with the previous Planning Director, Linda Finger, and the now Mayor Hack, the only reason North Lawrence signed off on the RS-5 zoning, was because they were told that developers could not buy a large lot with a home and bulldoze that home placing two houses on that same lot and the developer would need to buy an entire block. If a consensus was taken by the North Lawrence neighborhood at this time, it would be determined the City Commission was not doing a good job.
Commissioner Amyx asked staff to provide an update to the City Commission on the status of the Maple Street Pump Station. He said Boyle brought up an interesting idea of different zoning categories in the North Lawrence area.
David Corliss, City Manager, said there could be a zoning category that only North Lawrence could be zoned to, but it would be difficult to have a zoning category that other properties would not also asked to be rezoned.
Commissioner Amyx asked if there could be an overlay district.
Corliss said yes, an overlay district was another zoning tool the Commission could pursue. He said it was probably unlikely that all of the issues that Boyle was talking about would be unique solely, only forever to North Lawrence so it would not be just a North Lawrence zoning code. He said staff could add additional zoning categories.
Commissioner Amyx said it would be helpful for staff to provide the City Commission with that information and problems that might occur. He said he thought more problems would be created throughout the community, but he was willing to look at Boyle’s idea.
Vice Mayor Dever said the Commission was in favor of taking a hard look at what was going on in North Lawrence. The Commission heard the woes of those residents over the last few months and he thought it was an issue that deserved special considerations because it was a problem that was getting worse and everything Boyle mentioned were valid points, especially industrial run-off which caused more water pollution quality control problems and was not a pleasant situation for the people who lived in that area. He thought it was only fair to consider some sort of issues that might help reduce the chance of being overbuilt for the run-off that occurred in that area. He said this issue was something he cared about and wanted to do something about it, if possible.
Corliss said they would be talking about all of the City’s capital projects very soon. The Maple Street Drainage Project had a price tag between $5 million and $6 million and other projects in the North Lawrence Drainage Study as well. They were proceeding with drainage improvements associated with the underpass at North 2nd Street and Locust as that intersection was rebuilt and that construction would hopefully start later this year. He said he thought staff paid attention to those things, but not as much attention as they would like to, given limited resources, but staff tried to be responsive within the City’s resources.
Dave Kingsley, representative of Grass Roots Action, said he knew the budgeting was not on the agenda today, but he wanted to ask about the budget process. He said when looking at several years of sales tax collections it was a rather complex analysis and asked why they were taking a knee jerk reaction to budgeting. He said he hoped that they would have a process where maybe they could bring in a few members of the public who had an interest or expertise and have a conversation. He asked if they could spend more time looking at the projections and how they arrived at those projects. He said he did not have a model on the projected revenues and he did respect the people who worked for the City and their expertise in that area and might know something he did not know. He said it might be a matter of information sharing and when looking at sales tax, it was probably something they could discuss, such as in a citizen commission where they could begin to look at strategic planning for finance, rather than revenues falling in two months and cutting budgets. He said this issue was something that would take time and interaction with the City staff, public finance experts, and some of them who had an interest in looking at the numbers. He said he looked at sales tax numbers from the standpoint of some grant research that he was doing and he was not an expert on sales tax, but understood the time series models well. He suggested looking at long-term financing, long term budgeting, and so forth. He said he would like to see some sort of way that the City was not in a crisis mode with the budget because it was not necessary.
Commissioner Amyx said the City Manager’s Office could provide any information needed about the sales tax, projections or receipts the City received. He said the City Manager’s Report gave dollar per dollar information for the last four months as where the City was year to date. He said the process was open to everybody. He said the Commission would discuss the level of severity of cuts to the City which would be in a public forum setting. He said there would be more than ample time to become involved in the 2007 and 2008 budget process.
Kingsley said he was not saying there was any effort to withhold data at all. He was more interested in long term financial planning for the City. He said for instance, what was the unit cost of keeping a person in jail and if there were alternatives and whether it was wastewater treatment or whatever, he thought it was something that would take time. He knew the City was in a situation now, where the City Commission needed to make decisions and he had no particular criticism of the staff or the City Commission. He said he was saying from a professional approach, he would like to see everyone think about long term review of the City’s processes in government and if things could be done differently rather than cutting human services. He said he had a little trouble understanding why the City went to cutting human services as opposed to looking at other types. He said a lot of those cuts depended on what the actual sales tax receipts were going to be. He said he also knew that there was a property tax issue the City would be facing which he thought would be a much bigger issue.
Commissioner Amyx said the Commission spent 6 hours over the last two days going over budget hearings for the City Departments. He asked Corliss to let folks know of the City’s department cuts.
Corliss said staff was reducing expenditures in the general fund by about $3.3 million, actual dollars they would spend in the general fund. The City had laid-off two individuals and eliminated their positions and a number of different positions would not be filled. The City would not be making a number of expenditures in the General Fund and would be delaying some equipment purchases, transfers to reserve funds, which could not be done indefinitely and would have consequences in future budgets. He said it included a 6% reduction in expenditures to outside agencies which included everything from some services that were essentially vendors that were not-for-profits, not-for-profit social agencies and agencies that were not social services, but were things like the Chamber of Commerce the City contracted with for economic development purposes, but were called outside agencies. He said those cuts had been in response to the sales tax reduction.
He said when the money was not there, the City needed to respond to things, but he did not know if it was a crisis, but an indication this City Commission did not want to wait to respond to this issue in building the 2008 budget and wanted to respond during the 2007 budget which he thought was wise in some of the things they were doing structurally as far as positions and some of the things they were reducing they would be able to follow through indefinitely, or at least for some short term period of time. He said it was also the fact they were probably on course to spend more this year than they brought in as far as General Fund revenue probably in the neighborhood of about $3 million and the majority of the City Commission indicated they would like to see if that could be corrected now and staff had been challenged to do that. He said a number of things had been solidified and obviously, the City Commission could make a decision on any of those items based upon appeal and advocacy to change. He said it was a 2007 budget that he created because he thought it was spending money wisely for the community, but the money was not there. He said there were also reflections from the Commission about how they wanted the mill levy to grow as well and said that was their last resort, which meant everyone had to try and find ways to respond.
He said this was a moving process and he certainly wanted to make that transparent, that was why he added sales tax information to the City Manager’s Report. He said staff would continue to provide information. He said if there was a better way to handle this issue, he wanted to find out about that so the City could be part of the solution.
Kingsley said he was more interested in long range planning and processes in the County and City, particularly in the criminal justice area, wastewater treatment and trash. He said several years ago he mentioned the idea of six sigma practices and the book the Mayor of Ft. Wayne wrote was worth looking at. He said there were a hundred of ideas to look at as opposed to immediately moving into cutting some of the essential services for the poor.
Corliss said he would like to discuss some of Kingsley’s ideas. He said he was familiar with six sigma practices and staff had looked at some of those things. He said he wanted to show Kingsley some of the things staff had been doing and get reactions back as to how it could be improved.
Commissioner Chestnut said he was pretty confident the projections were close. He said the trending started in the middle of last year. If looking at the 2006 budget, there was a sizeable miss in sales tax and a sales tax revenue shortfall. He said this trend did not just start in 2007, but was halfway through 2006. He said the general fund shortfall was about $3.6 million last year and City was in a position of looking at the process and he looked forward to engaging in any dialogue with the public as far as more efficiency and so on. He said his concern was the City was trending to a point where the City would have another sizeable miss.
Vice Mayor Dever said this was the first time in 60 years the national average home prices had gone down over 1%. He said there was a perfect storm brewing and if the City did not take action soon, or at least in anticipation of those types of problems then the City Commission was not doing their job. He said he agreed with Commissioner Chestnut in looking at last year’s numbers that it was not a two week or two month assessment, but a long time assessing the data and it was clear the City’s revenues were going to be short for the year and it was easy to sit and not understand the Commission was looking at a big picture item, but in reality this was a problem and the Commission was trying to be proactive before it became an issue where this City was a financial concern.
Kingsley said sales tax probably was not the problem with the shortfall for the budget last year because there was a 4% increase in sales tax for 2006 over 2005. He said based on the numbers he had, the City collected more sales tax in 2006 than in 2005. He said he might be wrong, but he thought he had the same numbers and he might not be looking at the distribution right because the distribution was two months behind the sales. He said unless something has happened to the City’s economic system and consumer behavior, the City really should be expecting a continued upward trend in sales tax. He said he might be wrong, but he would like to discuss the issue with staff and the City Commission.
Rick Marquez, Downtown Lawrence, Inc., said he would like to invite everyone to the Downtown Lawrence Film Noir Festival that would have its first screening this Wednesday starting at 8:00 p.m., starting at the lot north of the Parking Garage. He said DLI was looking forward to a new community event to draw people to Downtown Lawrence to show the community what downtown had to offer.
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06/12/07 |
● Transit System Issues ● KDOT Applications for KLINK, Geometric Improvements, and Economic Development are due July 2, 2007.
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TBD
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● Salvation Army Site Plan and Rezoning; ● Retail Marketing Analysis Code provisions ● Neighborhood Revitalization Act proposals for target neighborhoods and downtown; NRA policy statement ● Special Use Permit information for Alcohol Establishments and Entertainment Venue Ordinance ● Adoption of Joint City Ordinance No. 8097, and County Resolution No. ____, to replace Chapter Seven – Industrial and Employment Related Land Use, in Horizon 2020 with a revised Chapter 7 entitled “Chapter 7 – Industrial and Employment Related Land Use in Horizon 2020, CPA-2004-02 Edition”, and repealing the existing chapter. |
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COMMISSION ITEMS:
Moved by Amyx, seconded by Dever, to adjourn at 12:50 p.m. Motion carried unanimously.
APPROVED _____________________________
Sue Hack, Mayor
ATTEST:
___________________________________
Frank S. Reeb, City Clerk
1. Bid- 5 refuse compactors to Roy Conley & Co. for $81,800.
2. Bid- Supervisory control and data acquisition software to RE Pedrotti for $59,960.
3. Bid- Programmable logic controller hardware to Logic, Inc. for $75,663.25.
4. Bid- Adjustable frequency drives to Logic, Inc. for $154,776.66.
5. Bid- Paint Outdoor Aquatic Center pool to JF McGivern for $69,865.
6. Change Order No. 1 - Additional crack sealing for 2007 Crack Seal Program for $46,640.
7. Bid- KLINK, milling, overlay, pavement marking, & minor geometric improvements to LRM Industries, Inc. for $478,963.74.
8. Bid date- June 19, 2007 for 2007 Overlay & Curb Repair Program, Phase 2.
9. Engineering Contract - Geometric improvements on 19th from Ohio Alabama to B.G. Consultants for $76,873.14.
10. Ordinance No. 8115-1st Read, Rezone (Z-09-46-04) 11.93 acres, UR to RM12, SE corner of George Williams Way and Overland Drive of Oregon Trail Addition.
11. Ordinance No. 8116-1st Read, Rezone (Z-09-47-04)16.47 acres, UR to RS7, located NE portion of Oregon Trail Addition north of Overland Drive.
12. Ordinance No. 8117- 1st Read, Rezone (Z-09-48-04) 31.93 acres from UR to RM12D, located in NW portion of Oregon Trail Addition north of Overland Drive and SE portion of the plat.
13. Ordinance No. 8114-1st Read, Special Use Permit (SUP-03-03-07) for The Castle Tea Room, 1307 & 1313 Mass. St.
14. Ordinance No. 8113-1st Read, rezone (Z-01-02-07) First Step Facility, 7.73 acres from RS10 to RMO at 3015 W. 31st Street.
15. Ordinance No. 8118-1st Read, West Baldwin Creek gravity sewer line connection fee.
16. Ordinance No. 7912-2nd Read, rezone (Z-03-19-05) Stoneridge E. Subdivision from UR to RS7, 4.883 acres located south of 6th Street and west of Stoneridge Drive, Lots 2-13, Block 1.
17. Ordinance No. 8110-2nd Read, rezone (Z-03-20-05 & Z-03-21-05) Stoneridge E. Subdivision, 11.4 acres UR to PRD, located south of 6th Street and west Stoneridge Drive, Lot 1, Block 1.
18. Ordinance No. 8112-2nd Read, “No parking” S side Jordan Ln & “no parking school days” West side Oak Tree Dr, adjacent to school crossing at Vantuyl Drive.
19. Ordinance No. 8109-2nd Read, towing & impoundment of vehicles by LPD.
20. Ordinance No. 8111-2nd Read, unlawful hosting of minors consuming alcohol or cereal malt beverage in accordance to State law change.
21. Ordinance No. 8106-2nd Read, maximum assessments for Williamsburg Court and Williamsburg Place.
22. Final Plat – (PF-04-06-07) Village Meadows, 17.930 acres NW corner W. 6th & Congressional Drive.
23. Site Plan – (SP-06-54-06) for Glenwood Apartments, SE corner Wakarusa & Eisenhower.
24. Text Amendments – (TA-03-02-07) Ch. 20, Art. 3-5, 10, 11, 15 & 17 of Development Code.
25. Text Amendments – (TA-10-11-06) Ch. 20, Art. 4-6, 10, 13, & 17 of Development Code.
26. Design-Build Contract - CAS Construction/Professional Engineering Consultants for construction of West Baldwin Creek Sanitary Sewer Interceptor project.
27. Write-off for receivables deemed uncollectible by Finance Department.
28. Mortgage Releases - Karen Feltner, 314 Birch Lane, Rafael and Alma Torres, 109 Glenview Dr., Mary Krische, 1742 Learnard Ave., & Mary Butterbrodt, 1505 E. 28th Terr.
29. Subordination Agreement - Rebecca Stakes, 431 Elm Street.
30. City Manager’s Report.
31. Bid – Water & Sewer System Revenue Bond Sale to Prager, Sealy & Co, Net Interest Cost $15,422,385 & True Interest Rate 4.5565%.
32. Ordinance No. 8119 – Declare Emergency (1st & 2nd Read), Water & Sewage System Revenue bond sale.
33. Resolution 6725 - Water and sewage system revenue bond sale.
34. Public Comment
35. Future Agenda Items.
36. Commission Items.