ELLIS–The electric bill is going up dramatically for the city of Ellis and council members are considering reducing the number of city street lights and increasing the franchise tax customers would pay to meet the increase.

Midwest Energy spokesman Bob Muirhead explained to council members at their Nov. 17 meeting that Ellis has been under-billed by Midwest Energy for years.

Although the company doesn’t plan to go after back monies, Midwest Energy has corrected the city’s electric bill for street lights, an increase of approximately $1,000 per month.

To help recover the price hike, Muirhead said Ellis could reduce the number of street lights, increase the franchise tax, or a combination of both.

Council members agreed to have Public Works Director Alan Scheuerman and Police Chief Taft Yates work with Midwest Energy to conduct an audit of current City street lights and to report back.

In other business, council members voted to have the city clerk’s office set up a Facebook page to be used for notifications of any changes in city services.

The complete meeting minutes follow.

CITY OF ELLIS REGULAR MEETING Minutes November 17, 2014

CALL TO ORDER
Council President Dave McDaniel called the meeting to order at 7:30 p.m. Present were Council members Ron Johnson, Gary Luea, Jolene Niernberger, Terry Redetzke, and John Walz. Also present were Public Works Director Alan Scheuerman, City Clerk Amy Burton, Police Chief Taft Yates (arrived at 7:37 p.m.), and City Attorney Olavee Raub. Mayor Lyle Johnston was absent.
PLEDGE OF ALLEGIANCE
AMENDMENTS TO AGENDA
None
PUBLIC PRESENT
Bob Muirhead, Ryan Augustine, Glen Keller, Dan Pyle, Nancy Wright, Rick Ensz, and Dena Patee (arrived at 8:00 p.m.)
CONSENT AGENDA
Council member Ron Johnson moved to approve the consent agenda containing the Minutes from the Regular Meeting on November 3, 2014 and Bills Ordinance #1961. Council member John Walz seconded the motion. The Council approved the consent agenda unanimously.
PUBLIC COMMENTS
Nancy Wright addressed Council regarding a leak at her residence. The leak has been repaired, as verified by her landlord Ron Haag. Ms. Wright is requesting consideration from the Council to waive the water conservation rate for the excess gallons billed due to the leak.
PRESENTATIONS OF AWARDS, PROCLAMATIONS, REQUESTS & PETITIONS (HEARINGS)
None
SPECIAL ORDER
Police
Ellis Police Department’s newest officer, Kirby Wechsler, introduced himself and gave Council a brief background of his work history. Officer Wechsler started with the Department today and comes to Ellis from Overbrook, KS.
General Government
Bob Muirhead from Midwest Energy explained to Council how the City of Ellis was under-billed for the City’s street lights from when the utility company consolidated the City’s bills into one bill many years ago. The corrected billing has increased the City’s electric bill for the street lights approximately $1,000 per month. Mr. Muirhead stated the City could reduce the number of street lights, increase the franchise tax, or a combination of both. The Council expressed concerns in reducing the number of street lights, as almost one-third of the lights would have to be removed in order to recover the increase in the monthly bill. Mr. Muirhead stated the City of Ellis franchise tax is currently at 3% for both electric and gas utilities. The franchise tax percentage for cities of similar size is between 3% – 5%. The franchise tax percentage would need to be increased by at least one-half percent (1/2 %) to recover the $1,000 per month increase. Mr. Muirhead offered to have Midwest Energy work with the City to conduct an audit of what street lights are necessary before making a decision. It was the consensus of Council to have Midwest Energy work with Public Works Director Alan Scheuerman and Police Chief Taft Yates to conduct an audit of current City street lights and to report back to Council.
General Government: Financial
Rick Ensz, Vice-President with Cooper, Malone and McClain, Inc., informed Council that before he can provide calculations on refunding the City’s 2006 bonds, the City must become compliant with SEC regulations on continuing disclosure requirements. According to the Electronic Municipal Market Access (EMMA) website, overseen by the Municipal Securities Rulemaking Board (MSRB), the City has not met the continuing disclosure requirements since the bonds were issued in 2006. Each year, in order to comply with the continuing disclosure requirements, the City must upload the audited financial statements and current operating data to the EMMA website. Ultimately it is the City’s responsibility to ensure the requirements are met, as the City is the issuer of the bonds; however, Council expressed surprise that the underwriter of the bonds or the City’s auditor hadn’t noticed that the City was not in compliance. Mr. Ensz explained that in order to become compliant the City needs to file “Failure to File forms” for a look-back period of 5 years for each of the City’s bond issues and to submit the required data to EMMA. Mr. Ensz can help the City become compliant for a cost of $1,000 per issue, per year, plus $500 to submit the Failure to File form, and $500 for each event notice to be filed. Once the City becomes compliant, there shouldn’t be any adverse effects on future bond issues. City Clerk Amy Burton asked for Council to table contracting with Mr. Ensz until the next meeting to give her a chance to review the EMMA website and determine if the compliance issue is one that could be resolved internally.
Industrial Development: Financial
Ryan Augustine, Ellis Chamber of Commerce representative to the Ellis County Coalition, requested Council consideration for the City to pay one-half, or $500, of the Chamber’s annual dues to the Coalition. The City has paid this for the Chamber in previous years. Council discussed the benefits of the ECC but questioned if the City needed two representatives on the ECC board. Sylvia Kinderknecht has served on the ECC board on the City’s behalf for several years. It was the consensus of the Council to not fund the Chamber’s half of the dues payment at this time.
Streets: Event Request
Dan Pyle, representing the Ellis Polar Express Event, asked for Council consideration to close several streets on December 6th from 6:00 p.m. – 9:30 p.m. The streets to be closed would be 8th Street and 9th Street, eastward from Madison, and the gravel road south of the Railroad Museum. Mr. Pyle stated that campers, business owners and staff, and residents would be allowed to access property beyond the barricades. Mr. Pyle will also contact the residents and businesses affected by the street closure to inform them they will still be granted access to their property. Council member John Walz moved and Council member Terry Redetzke seconded a motion to approve the Event Request for Traffic Control for the Polar Express event on December 6, 2014. Motion carried unanimously.
UNFINISHED BUSINESS
Water, Sewer: Accounting/Billing
Council discussed the possibility of creating ordinances that would allow the City to automatically increase the utility rates by a certain percentage annually. A resolution could then be passed declining an increase or varying from the percentage in the ordinance. Having the ordinances in place would hopefully ward off large rate increases that customers have experienced in recent months. Council member John Walz noted that the Kansas Rural Water Association will do a free water cost analysis that might aid the City in determining a fair percentage for the ordinance. City Attorney Olavee Raub will find sample ordinances for Council to review.
Capital Improvement: Repair/Maintenance
The Council discussed future plans for the empty lots at 9th Street and Jefferson. Council agreed they would like action taken to convert the area to a usable parking lot. Discussion ensued on which street the entrance should be on and whether to use the alley as an additional exit/entrance point. Council directed Public Works Director Alan Scheuerman to bring some ideas to the next Council meeting.
Water: Repair/Maintenance
Mr. Scheuerman reported that he has spoken to Layne and they can pull the pump from Well #12 and take back to Nebraska to find out why it is not working properly. This can be done while they are in town repairing Well #2 to save the City paying additional mobilization charges for a second trip. Council member Terry Redetzke moved to approve Layne pulling the pump from Well #12 at a cost of $800 with funds to come from the Water Depreciation Fund. Council member Ron Johnson seconded the motion. The motion carried 6-0.
Water Exploration: Special Project
Mr. Scheuerman reported that an applicant has already filed on Section 36 in Trego County, which is within the 2-mile perimeter of Section 25 where the City wanted to drill a test hole. The applicant has sixty days to prove their request. If proven, the City would need to find an alternate site; however, if not, then at the conclusion of sixty days authority would transfer to the City for sixty days. Mr. Scheuerman inquired if the City should proceed with the test hole drilling or wait out the sixty days to see if the site is even available for future use. Council member Gary Luea reported the applicant’s sixty day request expires December 2nd. It was the consensus of Council to not proceed with the test hole drilling until availability of the site is known.
NEW BUSINESS
General Government: Policy
City Clerk Amy Burton discussed with Council possible modifications to the City’s Purchasing and Bidding Policy and Procedures. Council directed Ms. Burton to make modifications to the Policy for consideration of approval at the next meeting.
Streets: Acquisition
Public Works Director Alan Scheuerman requested the purchase of a 14’ Sno-pusher for the front-end loader. With the equipment, the Department could push triple the amount of snow off the streets in the same amount of time, increasing efficiency, and also reduce damage to the curbs since the equipment has plastic skids. No action was taken.
General Government: City Code – Credit Card Authorization
City Clerk Amy Burton presented a resolution authorizing City employees to utilize the City credit card for necessary expenditures. The resolution has been updated for changes in staffing. Council member John Walz moved and Council member Jolene Niernberger seconded a motion to approve Resolution #503 authorizing current employees to use the City credit card. Motion carried 5-1, with Council member Gary Luea opposed.
REPORTS FROM CITY OFFICIALS
Public Works
Public Works Director Alan Scheuerman reported he has only received one application for the two open positions in the Department. Certain maintenance items are not able to be completed because of the shortage of manpower in the Department.
Mr. Scheuerman reported the City removed approximately 26 tons of municipal waste during the City-Wide Cleanup event at an estimated cost to the City of $800 – $1,000 in landfill charges. Golden Belt Telephone graciously helped the City with tree limb removal. Council requested Mr. Scheuerman explore holding a household hazardous waste event in the Spring.
Mr. Scheuerman will be asking Mayor Johnston to appoint T.J. Lee as the City representative on the Ellis County Wellhead Protection Committee at the next Council meeting.
Council member Ron Johnson questioned why the Department purchases so many gloves in a month and suggested Mr. Scheuerman look into bulk pricing for the gloves. Mr. Johnson also questioned the purchase of bog boots and insulated coveralls. Mr. Scheuerman reported the purchases are necessary as personal protection equipment.
Street: Repair/Maintenance
Mr. Scheuerman requested approval to have Paving Maintenance Supply in Wichita service the crack patch machine. Council member John Walz moved to approve Paving Maintenance Supply service the crack patch machine at a cost not to exceed $2,500 with funds to come from the Special Highway Fund. Council member Ron Johnson seconded the motion. The motion passed unanimously.
Police
Police Chief Taft Yates reported that the officers recently completed their annual firearms qualifications on three weapon systems. The Department scored a 94% average accuracy rating. The State requires a 70% accuracy rate, and Ellis Police Department requires an 80% accuracy rate. The Department will soon be performing their semi-annual Physical Training test.
City Clerk
Water: Accounting/Billing
City Clerk Amy Burton presented a water leak adjustment request from Catherine Bailey, who wasn’t able to attend the meeting. Council member John Walz moved and Council member Jolene Niernberger seconded a motion to approve the water leak billing adjustments for Nancy Wright and Catherine Bailey. Motion passed 6-0.
General Government: Policy
City Clerk Amy Burton requested approval to move the City office observed holiday from December 24th to December 26th, to allow the staff to have a four-day weekend. Council member John Walz moved and Council member Terry Redetzke seconded a motion to move the City office observed holiday from December 24th to December 26th. This will only affect the City Clerk and Public Works Departments. The motion passed 4-2, with Council members Ron Johnson and Gary Luea opposed.
Council then discussed closing the office at noon on Christmas Eve and whether or not to compensate the staff for the four hours of the closing. Council member John Walz moved to give authority to the City Clerk and Public Works Director to close at noon on Christmas Eve and that employees should use existing vacation or personal leave for the four hours the office is closed. Council member Jolene Niernberger seconded the motion for purposes of discussion. Ms. Niernberger stated she will be voting against the motion because she would like for the employees to be paid for the four hours. Upon a call for the vote, the motion failed 2-4, with Council members John Walz and Terry Redetzke voting for the motion, and Council members Jolene Niernberger, Dave McDaniel, Gary Luea, and Ron Johnson voting opposed.
Personnel: Benefits
City Clerk Amy Burton then inquired if the Council was interested in holding a City Christmas Party for staff and elected officials. Council member John Walz moved and Council member Dave McDaniel seconded a motion to approve holding a City Christmas Party in January 2015. The motion carried 5-1, with Council member Gary Luea opposed.
Ms. Burton then asked if Council wanted to continue the practice of giving City employees a Christmas Bonus. In the past the City has given each employee $125. Council member John Walz moved to give each City employee a Christmas Bonus in the net amount of $125. Council member Jolene Niernberger seconded the motion. Upon a call for discussion, Council member Gary Luea stated the Christmas Bonus should be more. Upon a call for the vote, the motion failed 0-6, with all Council members opposing the motion. Mr. Luea then moved to approve a Christmas Bonus for each employee in the net amount of $200. Council member Jolene Niernberger seconded the motion. The motion carried unanimously.
City Clerk: Training
Ms. Burton encouraged Council to complete the LKM Annual Conference Informational Survey included in the Council packets. She then provided information about the Clerk Institute she recently attended.
General Government: Special Project
Ms. Burton then asked if Council was interested in the Clerk’s office setting up a City Facebook page. This would be a timely way to get information out to residents about water leaks, snow removal, changes in trash pickup, etc. Council expressed concerns that it would become a place for residents to just post negative information about the City. After discussion, Council member John Walz moved and Council member Ron Johnson seconded a motion to have the City Clerk set up a Facebook page for City notifications. The motion passed 5-1, with Council member Terry Redetzke opposed.
Capital Improvement: Grant
Ms. Burton reported that 337 Low-to-Moderate Income surveys have been received. This is roughly 1/3 of the surveys distributed. The surveys are vital to the City being eligible to qualify for a Community Development Block Grant. The Clerk’s office will be sending out second requests for the surveys with the December 1st utility bills.
Attorney
Mayor/Council
Council member Dave McDaniel would like to discuss City policy on providing meals to employee spouses during out of town trips at the next meeting. He would also like to discuss a possible name change for the Senior Advisory Committee.
Council member Jolene Niernberger expressed concerns that the City Clerk will not have adequate time in her schedule to research and do the work necessary to bring the City in compliance with the SEC continuing disclosure requirements.
ADJOURNMENT
Council member Terry Redetzke moved and Council member Ron Johnson seconded a motion to adjourn the meeting. The motion carried unanimously. The meeting adjourned at 10:47 p.m.