Minutes 01-05-2015

CITY COUNCIL

JANUARY 5, 2015

7:00 P.M.

 

The Council of the City of Augusta, Kansas met in regular session on January 5, 2015, with Mayor Matt Childers presiding.  Council present were Jason Lowery, Cale Magruder, Paul Belt, Jamie Crum, Mike Rawlings, Sue Jones, Ron Reavis, and Matt Malone.  Also present: City Attorney Austin Parker, City Manager Josh Shaw, Assistant City Manager Cody Sims, Human Resource Director Marci Fugarino, Director of Electric Utility Bill Webster, and City Clerk Erica Jones.  Visitors present were: Belinda Larsen, John Black, Mark Chesney, Don Osenbaugh, Dalton Patterson, Sonja Patterson, Kent Scholfield, Neal Whittlow, Tim Johnson, Mike Clifton, Kevin Cowan Dan Christmore, Carl Myers, Malissa Nesmith, and Troy Palmer.

 

Pledge of Allegiance

 

Prayer: Neal Whittlow, Crossroads Community Church, gave the invocation.

 

Jones made a motion to amend the agenda to shift business item #H1 to #H3 and to have first executive session before item #H3.  Malone seconded the motion.  Motion carried without opposition.

 

Minutes: Jones made a motion to approve the minutes from the December 15, 2014 Council meeting.  Lowery seconded the motion.  Motion carried without opposition.

 

Ordinance 12A: Reavis made a motion to approve Ordinance 12A in the amount of $1,053,012.42.  Belt seconded the motion.  Motion carried without opposition.

 

Ordinance 12B:  Malone made a motion to approve Ordinance 12B in the amount of $573,265.51.    Lowery seconded the motion.  Motion carried without opposition.

 

Presentation:

Marci Fugarino, Human Resource Director, and Don Osenbaugh, representing Kansas Municipal Insurance Trust (KMIT), recognized the City’s achievement of 10 consecutive years of Gold Star Awards, which provides a discount on the City’s worker’s compensation insurance.

 

Business:

2015 Special Alcohol Grant Applications:  Jones made a motion to approve the 2015 Special Alcohol Grant applications for The Family Life Center Safehouse in the amount of $5,000, Students Against Destructive Decisions (S.A.D.D.) in the amount of $5,000, Tri-County CASA in the amount of $5,000 and Youth Leadership Butler (YLB) in the amount of $500, for a total of $15,500.  Lowery seconded the motion.   Motion carried without opposition.

 

Municipal Court Costs: Lowery made a motion to table this agenda item until the next meeting.  Rawlings seconded the motion.  Motion carried without opposition.

 

Executive Session:  At 7:22 p.m. S. Jones made a motion to go into executive session for 40 minutes under the attorney-client privilege exceptions to the Kansas Open Meetings Act. Jones asked that City Manager Josh Shaw, Assistant City Manager Cody Sims, Bond Counsel Kevin Cowan, and City Attorney Austin Parker join the Council in the executive session.  The governing body will reconvene in the Council Chambers at 8:02 p.m. Malone seconded the motion.  Motion carried with Reavis voting in opposition.

 

            At 8:02 p.m. Lowery made a motion to exit executive session with no action being taken.  Jones seconded the motion.  Motion carried without opposition.

 

            At 8:02 p.m. S. Jones made a motion to go into executive session for 30 minutes under the attorney-client privilege exceptions to the Kansas Open Meetings Act.  Jones asked that City Manager Josh Shaw, Assistant City Manager Cody Sims, Bond Counsel Kevin Cowan, and City Attorney Austin Parker join the Council in the executive session.  The governing body will reconvene in the Council Chambers at 8:32 p.m. Malone seconded the motion.  Motion carried with Crum, Magruder, and Reavis voting in opposition.

 

            At 8:32 p.m. Lowery made a motion to exit executive session with no action being taken.  Malone seconded the motion.  Motion carried without opposition.

 

Hotel Master Developer’s Agreement and Hotel Community Improvement District (CID) Agreement:  Jones made a motion to table both of these documents until the next meeting.  Reavis seconded motion.  Motion failed with Belt, Magruder, Lowery, Crum, and Rawlings voting in opposition.

 

Rawlings made a motion to approve the Master Developer’s Agreement with Augusta Hotel, LLC. for the Comfort Inn & Suites hotel project.   Magruder seconded the motion.  The Council asked Shaw to read the notes and clarifications made in the executive session. 

 

Shaw stated that in the “Definition” section of the agreement to include the definition of “State” to be the “State of Kansas”, and to provide a definition for “Tenant”.  In Section 6 the word “substantially” needs removed.  Section 21, the grass height provision should be changed to “… a height established by City Code or regulation.  Shaw stated in the Attachment (Exhibit D of CID Agreement) under reimbursement schedule, change “should” to “shall”.  Jones stated she would still like to see the transfer and assignment language be the same in both documents.  Lowery concurred.  Parker asked if the change they were asking about was for Section 32 in the Master Developer’s Agreement to be included as Section 14 in the CID Agreement. Cowan stated he is not sure it would work to take the wording from Section 32 and insert it into Section 14, but that it could be changed to reflect the understanding that the intent be that there not be assignability without governing body approval and that approval would not be withheld without certain findings.  Cowan stated there may need to be a word or two different to make it work, which could take a few minutes to look at.

 

Rawlings made a motion to amend the first motion to include the changes as presented by staff.  Magruder seconded the amendment. Reavis stated he still has concerns about language in the contract, but that he is not against the project.  Both motions carry with Reavis, Jones, and Malone voting in opposition.

 

            Jones stated the CID Agreement is the document that Section 32 of the Master Developer’s Agreement needs to be transferred to Section 14. Shaw stated transferring the language from Section 32 may not reference things the right way without an adjustment. Cowan agreed and stated his understanding is that it needs to change from being transferrable without written consent needs to be changed to require prior written consent.  Jones stated it says the developer can assign or pledge its rights to payments and that it only requires notice to be provided, not prior written consent of the City’s governing body.  Lowery stated his preference is to see the payments tied to the project.  Parker stated there is a way to tie the CID payments to the project, but it may require a couple of extra sentences in the document.  Cowan agreed.  Parker stated it will probably be drafted to say it stays with the tenant.  Cowan stated with there will be a lease agreement with the tenant and these same provisions will need to be tied to that as well. 

 

Rawlings made a motion to approve the Hotel Community Improvement District Agreement for the Comfort Inn & Suites hotel project with the amendment to the final exhibit to change from should to shall and to authorize staff, Parker, and Cowan to make the appropriate language changes to the transfer and assignment in Section 14. Lowery seconded the motion.  Motion carried with Jones and Malone voting in opposition.

 

At 9:10 p.m. Lowery made a motion to recess for 5 minutes.  Rawlings seconded the motion.  Motion carried without opposition.

 

At 9:15 p.m. Childers call the meeting back to order.

 

Matters From/For Council:

Shaw:  Shaw stated there are four medians that will be reconstructed as part of the geometric improvement around Walnut area extending just short of overpass.  He stated there is an option to color or stamp the concrete in the medians.  Shaw stated this is purely an aesthetic change and could add $50,000 to project that would not be funded by grant.  He stated it is in line with strategic plan to improve the aesthetic within the city.   Council authorized staff to obtain an estimate for the color concrete only, not the stamping.

 

 

Shaw:  Shaw provided an update on the airport drainage projects and AWOS grant funding.  He stated there is approximately $21,000 not covered by the KDOT grant. He stated there are funds available in Capital Improvements to pay for this. 

 

            Shaw provided an update on the city hall bathroom damage, insurance claim, and repairs/remodel.

 

            Shaw reminded the Council of the Street Sales Tax Advisory Committee public hearings scheduled for 6 p.m. on January 8, 2015 and January 22, 2015 to take public input on proposed 2015 Street Sales Tax Projects.

 

            Shaw reminded the Council of the Sanitation work session scheduled for 7 p.m. on January 12, 2015.

 

Informational Memorandum and Final Comments:

Magruder:  Magruder thanked staff for being so responsive to him.

 

Childers:  Childers gave his condolences to Reavis and his family.

 

Executive Session:  At 9:32 Lowery made a motion to go into executive session for 40 minutes under the attorney-client privilege exceptions to the Kansas Open Meetings Act.  Lowery asked that City Manager Josh Shaw, Assistant City Manager Cody Sims, and City Attorney Austin Parker join the Council in the executive session.  The governing body will reconvene in the Council Chambers at 10:12 p.m.  Reavis seconded the motion.  Motion carried without opposition. 

 

            At 10:12 p.m. Lowery made a motion to exit executive session with no action being taken.  Reavis seconded the motion.  Motion carried without opposition.

 

 

 

Adjourn:  At 10:12 p.m. Malone made a motion to adjourn.  Lowery seconded the motion.  Motion carried with Lowery voting in opposition.

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