07-24-1995 Minuteson
95-229
CITY OF SALINA, KANSAS
REGULAR MEETING OF THE BOARD OF COMMISSIONERS
July 24, 1995
4:00 p.m.
The Regular Meeting of the Board of Commissioners met in the Commission
Meeting Room, City -County Building, on Monday, July 24, 1995, at 4:00 p.m.
There were present:
Mayor John Divine, Chairman presiding
Commissioner Abner Perney
Commissioner Evelyn Maxwell
Commissioner Peter F. Brungardt
Commissioner Kristin M. Seaton
comprising a quorum of the Board, also present:
Absent:
Greg Bengtson, City Attorney
Dennis M. Kissinger, City Manager
Judy D. Long, City Clerk
None.
CITIZEN FORUM
Margaret Jilka, 224 East Minneapolis, spoke regarding the surfacing
material for the new bike path.
The Mayor noted that the Abilene Municipal Band will be at Oakdale
Park on Saturday.
The Mayor explained the new artwork on display in the new
commission room.
AWARDS - PROCLAMATIONS
None.
PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME
None.
CONSENT AGENDA
(6.1) Approve the Minutes of the Regular Meeting of June 17, 1995.
(6.2) Resolution Number 95-4892 directing and ordering a public hearing
on the advisability of an improvement to Seitz Drive between Pheasant Lane
and Crawford Street. Set the date of August 7, 1995 for public hearing.
(6.3) Change Order Number 2 for the East Crawford Recreation Area Ball
Field Lighting and Electrical System Improvement Project Number 94-905 in the
net amount of $788.00.
(6.4) An Ingress -Egress Agreement granting Harry Sinsabaugh access to a
tract of land.
Moved by Commissioner Brungardt, seconded by Commissioner
Seaton, to approve all items on the consent agenda. Aye: (5) . Nay: (0) .
Motion carried.
DEVELOPMENT BUSINESS
None.
ADMINISTRATION
(8.1) License agreement with Asbury -Salina Regional Medical Center and
St. John's Regional Health Center to allow placement of communication cable in
the public right-of-way.
Shawn O'Leary, Assistant Director of Engineering and Utilities,
explained the proposed license agreement.
Action
95-230
Moved by Commissioner Seaton, seconded by Commissioner Maxwell,
to adopt Resolution Number 95-4866, approving the license agreement with
Asbury -Salina Regional Medical Center and Saint John's Regional Health Center.
Aye: (5). Nay: (0). Motion carried.
(8.2) Third reading Ordinance Number 95-9697 granting DS&O Rural
Electric Cooperative Association, Inc. an electric franchise.
Dennis Kissinger, City Manager, explained that there are two areas of
North Salina currently in the City limits that appear on the KCC maps as
DS&O territory. The areas were annexed in the 1960's and 19701s. One area
was annexed before the retail electric law set up the territories and contains
documents that indicate a transfer to KP&L. The second area was annexed
after the law passed without a request for franchise from DS&O. The City's
franchise agreement is with KP&L, however, the transfer to KP&L was not
completed and the area is showing certification to DS&O. There are no
customers in this second area.
Mr. Kissinger clarified that the franchise being requested by DS&O
is general and could raise the possibility of DS&O serving the area as it is still
certified. This area is of a different type, commercial industrial. As with
other cities, Salina has a limited amount of highway commercial industrial area
along the interstate and developers can be sensitive to a variety of issues,
including utility availability and costs.
Asked if DS&O could have a rural and an urban rate structure, Mr.
Kissinger believes they can, but was uncertain about the process.
Jerry Rumbaugh, General Manager for DS&O, spoke regarding the
North Salina situation. He informed the Commission that the North Salina
impact would be determined by when the services were there, when the line was
there or when the annexation took place relative to the certification of the
territories. He explained that the basic premise of the certification process was
that no utility would lose existing customers and that no Independently Owned
Utility ( IOU) would lose sole certificated territory to that utility. He stated
that upon inspection he located a DS&O power line with poles dated 1972, and
poles dated 1975 by KP&L, both prior to the certification process. He shared
his belief that DS&O should have received transmission rights only through
that area as they had no meters and couldn't have served new customers if the
process had been handled correctly at the time of the annexation.
Mr. Kissinger, asked specifically that if the area is found to be in
DS&O territory, if granted a franchise, DS&O would voluntarily turn that
industrial area back to KP&L.
Mr. Rumbaugh responded, "We would serve anything that comes
along, certainly." He continued that if an error was made and DS&O has the
potential to serve an area they will go after it.
Mr. Kissinger clarified that this point is critical to today's Commission
decision.
Mr. Rumbaugh closed the discussion by stating that DS&O will discuss
the situation in North Salina if they get the franchise.
Mr. Rumbaugh went on to discuss rates, indicating that other areas
have not been sensitive to electric utility rates. He advised the Commission
that he spoke with the secretary of Lowell Miller, a developer in the Topeka
area. The secretary had built a new home in an area served by KAW Valley
and advised Mr. Rumbaugh that the subject of an option for electric service
was not raised. Mr. Rumbaugh stated, "They chose the lot, their location and
it turned out it was KAW Valley. " The rates for 750 kwh in that area are:
KAW Valley $70.15, KP&L $48.37 and DS&O $61.60. As another example, Mr.
Rumbaugh sited a discussion he had with a member of the Olathe Planning
Services Department who had also built a new home in a dual franchise area.
The Olathe representative did not think there was a difference in development
based on rates, telling Mr. Rumbaugh that utilities haven't been a concern.
Mr. Rumbaugh said that when he asked if rates would impact the
representative's selection to purchase, the response was that if rates were
three times higher maybe, but not for just a couple dollars. The Olathe rates
for 750 kwh are: KCPL $60.55, KP&L $48.37, and DS&O $61.60.
Mr.
Rumbaugh continued
by
identifying 127 new homes within the
DS&O territory
since January 1992.
He
gave a brief history of electric co-ops
and compared
the cost to a new
home
owner to place electric service. He
ction
stated that the cost of hooking up a new home with KP&L was $1,000 compared
to $100 with DS&O based upon the different philosophies of the utility
companies. He shared the impact this would have on a customers' mortgage
payment, $9.50 a month.
In closing, Mr. Rumbaugh stated that DS&O thinks that the certified
areas are their's to serve and that rates won't impact development.
Mr. Frank Norton, 2524 East Magnolia Road, spoke regarding the
amount of rebate from DS&O. He stated that a bill of $22,000 per year
received a rebate of $48.00 each year.
Mr. Norton said someone would pay to put the cable underground.
He felt it should be paid by the developer and not spread between users.
In response to Commissioner Maxwell's question about what impact
this would have for a developer of more affordable sized lots and sized homes,
Mr. Norton asked to be treated the same as other Salina developers.
Commissioner Perney responded: "I might answer the question. I
have more experience with low income housing than anyone else in the City, I
believe. Now I feel that in my experience it's the monthly operating costs that
is the most critical factor. The initial cost is not what makes an affordable
house affordable. It's what it costs to stay there and the difference on the
front end costs and how they are financed does not even by Mr. Rumbaugh's
explanation, does not bring you the final answer. The final answer includes
the utility costs that you have have to pay each and every month. So I am
concerned that if DS&O were granted the franchise and it really doesn't relate
to the current subdivision - Mr. Norton's subdivision so much because it is
going to be high cost. But I am concerned that if DS&O is granted the
franchise it will limit the possibility for future affordable housing, particularly
on the east side of town, perhaps on the north also. And, I think to have
DS&O in as a second utility company . "
In response to Mayor Divine's question, the Commission then
discussed with the City Manager and the City Attorney the consequences of
refusal by KP&L to serve if the DS&O franchise is not granted.
In response to Commissioner Maxwell's question, the City Manager
related his discussions with KCC staff regarding how the KCC would view any
appeal by DS&O arising from the City's denial of the franchise application.
Mayor Divine stated his position: "I am concerned about the North
Salina at this time, and not having a clear understanding, and I think it clouds
the issue related to what is in DS&O's franchise and what is not, so I will be
voting to deny the franchise at this time."
Commissioner Brungardt stated his position: "Mr. Mayor, the rural
electrification notion and idea that no one should be without service of course
dates back many years as we have heard, and I think the KCC's idea of how
to apportion that service and the way they drew the map is kind of
self-evident, they just wanted to make sure that it happened and in some kind
of fashion. Cities, however, organize things a little differently than the rural
areas. Cities have their own point of view on this issue that doesn't really
share anything with the electric company or the co-op, or the developer, or
KP&L, or anybody else. Cities are very, very concerned about fringe
development, about areas that want to be like the city, that have the same
services, that want to enjoy the same amenities, but don't want to be in the
City. That is an ongoing problem for us as it is for all municipalities. It is
often without solution, frankly. But it remains a very big problem for us in
the organization of our growth and the attraction of orderly growth and the
kind of development we would like to see. Mr. Norton's subdivision actually
lends itself when you inspect it as kind of a rural development. You look at it
and say 'Gee, maybe that fits a DS&O concept.' Except that this Commission
has agreed to annex it within the City of Salina, and if it is part of the City of
Salina, I think that it is incumbent upon us to offer a uniform blanket or level
of services and a like type of activity that you would see anywhere else within
the city limits of Salina. I share Mayor Divine's comments also that looking
ahead particularly with the idea of increased commercial or industrial
development in some of these areas that also lends a little impetus to the notion
that Salina has got to keep its options open and its ability to offer pretty much
the same level of services wherever anybody goes within the City of Salina.
For that reason, I also will vote to deny the franchise."
Commissioner Seaton stated her position: "I will also vote to deny
on
the franchise. I am fairly confident that the land between the city limits and
I. the proposed annexed area for Mr. Norton's property will also end up being
developed and be annexed into the City. I think it would be most consistent
to continue the services provided by KP&L and I think that is just a better
I, choice at this time."
Commissioner Maxwell stated her position: "I am very concerned
about having affordable housing options as large as we can get them and I
think in terms of this particular development that if people wanted to move
there at $10 or $12 difference between their actual usage would not make any
difference, but I do want to maintain the option of having more affordable
monthly payments for their utilities and I think that any cost breaks that go to
the country should go to the agricultural folks and not to rural residents who
are there for other reasons, so I too will vote to deny the franchise."
I
95-231 Moved by Commissioner Brungardt, seconded by Commissioner
Maxwell, that the DS&O application for an electric franchise in Salina be denied.
Further comment by Commissioner Maxwell: "I would like to make also
a comment that from the materials that have been provided by staff there are
! five reasons in the supplementary (staff report) and I believe that in our city
j in the reasons that I have stated that in our city the subdivision or the
j developmental process does meet all of those criteria that have been laid out by
II staff and would like to be considered as part of the motion."
I
Commissioner Brungardt consented to agree to put that in the
context of the motion.
It was then clarified that a vote in favor of the motion would have
the same effect as a vote to defeat Ordinance Number 95-9697 on third reading.
I
�A roll call vote was taken. Aye: (5), Perney, Maxwell, Brungardt,
Seaton, Divine. Nay: (0). Motion carried.
i
(8.3) Second reading of Charter Ordinance Number 27, exempting the City
of Salina from the provisions of K.S.A. 13-1017, as amended.
Dennis Kissinger, City Manager, explained the the purpose of the
Charter Ordinance.
(8.4) First reading of Ordinance Number 95-9699, establishing procedures
for public improvement construction and modification.
I
Dennis Kissinger, City Manager, explained Ordinance Number 95-9699
which sets the public improvement procedures for the City.
95-232 Moved by Commissioner Perney, seconded by Commissioner Maxwell,
to approve Charter Ordinance 27. A roll call vote was taken. Aye: (5),
Perney, Maxwell, Brungardt, Seaton, Divine. Nay: (0). Motion carried.
95-233 Moved by Commissioner Maxwell, seconded by Commissioner Perney, to
approve Ordinance Number 95-9699 for first reading. Aye: (5). Nay: (0).
Motion carried.
(8.5) Approval of the Notice of Hearing for the 1996 Budget and setting a
hearing date of August 14, 1995.
Bob Biles, Director of Finance and Administration, explained that this
will be published Friday and the hearing will be August 14, 1995.
95-234 Moved by Commissioner Maxwell, seconded by Commissioner Seaton,
to approve the Notice of Hearing for the 1996 Budget. Aye: (5) . Nay: (0) .
Motion carried.
(8.6) First reading Ordinance Number 95-9698 amending Chapter 23 of the
Salina Code pertaining to Municipal Court and repealing the existing chapter.
Judy Long, City Clerk, explained the amendment to Chapter 23 of
the Salina Code.
95-235 Moved by Commissioner Brungardt, seconded by Commissioner
Seaton, to approve Ordinance Number 95-9698 for first reading. Aye: (5).
Nay: (0) . Motion carried.
(8.7) Award contract for Gypsum Hill Water Tower Painting Project Number
ction
94-912 to Loyd's of Kern Painting Co., in the amount of $224,400.
Don Hoff, Director of Engineering and Utilities, explained the
painting project.
I
95-236 Moved by Commissioner Seaton, seconded by Commissioner
Brungardt, to award the contract for painting the Gypsum Hill Water Tower to
Loyd's of Kern Painting Company in the amount of $224,400. Aye: (5). Nay:
(0) . Motion carried.
(8.8) Change Order Number 3 for the 1994 Subdivision Improvements
Project Number 94-907A in the net amount of $15,017.00.
Shawn O'Leary, Assistant Director of Engineering and Utilities,
explained Change Order Number 3.
95-237 Moved by Commissioner Brungardt, seconded by Commissioner
Maxwell, to approve Change Order Number 3 for the 1994 Subdivision
Improvements Project Number 94-907 in the amount of $15,017. Aye: (5).
Nay: (0). Motion carried.
OTHER BUSINESS
(9.1) Ordinance Number 95-9700 authorizing the City Manager to execute a
contract for fire protection of property outside the City Limits.
Dennis Kissinger, City Manager, explained the contract with Rosemary
Bonin, 209 East Pleasant Hill Road.
95-238 Moved by Commissioner Maxwell, seconded by Commissioner Seaton,
to adopt Ordinance Number 95-9700 for first reading. Aye: (5) . Nay: (0) .
ii
Motion carried.
95-239 Moved by Commissioner Brungardt, seconded by Commissioner
Maxwell, to declare an emergency exists as there will not be a commission
meeting July 31, 1995. Aye: (5). Nay: (0). Motion carried.
95-240 Moved by Commissioner Perney, seconded by Commissioner Maxwell, to
adopt Ordinance Number 95-9700 on second reading. A roll call vote was
taken. Aye: (5), Perney, Maxwell, Brungardt, Seaton, Divine. Nay: (0).
Motion carried.
(8.9) Request for Executive Session to discuss a personnel matter.
95-241 Moved by Commissioner Seaton, seconded by Commissioner
Brungardt, that the Board of Commissioners recess into executive session for
15 minutes for the purpose of discussing a personnel matter regarding a
non -elected employee of the City for the reason that public discussion of the
matter would invade the privacy of the employee involved. Aye: (5). Nay:
(0). Motion carried.
The Board of Commissioners recessed at 5:37 p.m. and reconvened
at 5:52 p.m. The commissioners took no action.
ADJOURNMENT
95-242 Moved by Commissioner Brungardt, seconded by Commissioner
Maxwell, that the Regular Meeting of the Board of Commissioners be adjourned.
Aye: (5) . Nay: (0) . The meeting adjourned 5:5 p.��
(SEAL) ATT
ohn Divine, Mayor
D. .
ng, Cit lerk