CITY OF OGDEN222 Riley Avenue, P. O. Box C

(785) 539-0311Ogden, Kansas 66517-0843

Council Meeting

March 16,2011

The Regular Meeting of the Governing Body for the City of Ogden was scheduled onWednesday, March 16,2011 at 7:00 p.m. in City Hall.

The meeting was called to order at 7:01 p.m.The following members were present; Kenneth Carroll, Ward Nations, Rae Harris,

Brian Still and Mayor Pence. Attorney Irvine was present. David Ward was not present.

Mayor Pence invited the public to present comments to the Governing Body.

Nations moved to approve the Agenda. Seconded by Still. Motion carried.

Nations moved to approve the minutes of the March 2,2011 Council Meeting and March 9,Special Council Meeting. Seconded by Carroll. Motion carried.

Terry Morrand, Jr.-Foreman, present, had nothing to report.

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Garrett Nordstrom-Governmental Assistance Services, present, submitted the Grant Close-out packet requiring signatures of the Mayor.

Mayor Pence opened the Public Hearing for evaluation of the performance ofCDBG09-PF-834 Wastewater Lagoon Improvements. Nordstrom commented that the LagoonImprovements have a 20-40 year life expectancy and is designed to serve a population ofabout 4,500. Mayor Pence closed the Public Hearing.

Nations moved to authorize the Mayor to execute the documents within the CDBG09-PF -834 Close-out packet. Seconded by Still. Motion carried.

Charles Hostettler-Charlson Wilson Insurance Agency and Mike Johnson-BerkshireHathaway Homestate Companies, present, disseminated their proposal for insurancecoverage for the City.

Johnson commented that the City's current policy does not have Medical PaymentsCoverage under the General Liability Coverage which is a no-fault coverage up to $5,000 inthe event someone, other than an employee, would injure themselves on City premises.

Johnson commented that General Liability Coverage, Automobile Coverage, andErrors and Omissions Coverage have been quoted with an option of increased limits.Johnson commented that the Errors and Omissions Coverage quote has a $1,000 deductiblewhere the City's current policy has a $5,000 deductible.

Mayor Pence suggested because of the complexity and amount of informationcontained in the two insurance quotes as provided, the Council may want to considerscheduling a Special Meeting devoted to review of the quotes before making a decision.

Johnson stated that under the Errors and Omissions Coverage there is an exclusion formonetary damages but provides damages for defense costs.

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March 16,2011

James Wood, present, commented that he had requested from the Planning Commission tochange the zoning of Block 20, Lots 15-18 from R-l Single-Family Residential to C-lCentral Business. The Planning Commission considered the request at their February 14,2011 meeting and after review of the rezoning application recommended to deny the request.Wood commented that he was unable to attend the meeting and his representative, David 'Wood, had inadvertently forgotten to attend the meeting.

Wood commented that his plans for the property was to demolish the existingresidential structure and construct a 50' x 100' metal clad structure for the purpose of storinghis equipment and materials as an extension of the business located at 128 Riley Avenue,which is located directly across the alley.

Mayor Pence commented that the Planning Commission found it difficult torecommend approval of the rezoning request when the applicant was not present to answertheir questions. Mayor Pence stated that the Planning Commission has a regular meetingscheduled on Monday, March 28, 2011 and that the Chairman would place the rezoningrequest on the agenda if the Council decided to send the request back to the PlanningCommission for further consideration.

Attorney Irvine commented that the Council has three options: 1) adopt therecommendation of the Planning Commission, 2) override the recommendation with a 2/3majority vote of the Council (4 votes in favor ofthe motion), 3) return the request to thePlanning Commission for reconsideration and submit a recommendation to then beconsidered by the Council again.

Nations suggested returning the rezoning request to the Planning Commission forreconsideration because at the Public Hearing the applicant was not present to answer thequestions from the Planning Commission.

Harris moved to override the recommendation of the Planning Commission andauthorize the rezoning of Block 20, Lots 15-18 from R-l Single-Family Residential to C-lCentral Business. The motion failed for the lack of a second.

Nations moved to return the request for rezoning of Block 20, Lots 15-18 from R-lSingle-Family Residential to C-l Central Business to the Planning Commission forreconsideration. Seconded by Still. Motion carried.

James Wood, present, requested an adjustment to the March sewer charge (Februaryconsumption period) for Account 2950-02 at 209 11thStreet. Wood commented that the leakoccurred ahead of the shutoff valve in the mobile home.

Still moved to grant James Wood an adjustment of$376.51 to the March sewercharge for Account 2950-02 at 209 11thStreet. Seconded by Harris. Motion carried.

Attorney Irvine stated that the Maplewind Mobile Home Court went through a foreclosureprocess and was sold at a Sheriff's Sale in January 2011. Since the foreclosure, theMaplewind Court has been managed by a receiver as appointed by the District Court.Attorney Irvine stated that approximately three weeks ago the previous owners of theMaplewind Court filed for Chapter 11 Bankruptcy. Because of that filing, an automatic stayon the collection of any debts of the debtor was imposed by the Bankruptcy Court. TheDistrict Court Judge presiding over the foreclosure ordered the receiver to cease paying thebills of Maple wind Court until relief could be granted from the automatic stay. AttorneyIrvine stated that the water/sewer utility bill due March 10, 2011 has not been paid and thecutoff date for nonpayment will be March 18, 2011. Attorney Irvine commented thatattorneys involved in the process have made a request to the Bankruptcy Court to release the

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March 16,2011

automatic stay which should be forthcoming in the near future. The various parties involvedhave requested an extension to the cutoff date with the expectation that payment will bemade sometime in the near future. Attorney Irvine commented that the receiver has the$8,845.84 to pay the bill owed but has been directed by the District Court Judge not to paythe bills of the Maplewind Court .:

Harris moved to grant an extension to the cutoff date for receipt of payment for theMarch water/sewer utility bill for Maplewind Court until April 7, 2011. Seconded byCarroll. Motion carried.

Clerk commented that a payment on the KDHE Revolving Loan No. C20 1711-01 for theSouth Walnut Street Lift Station and Wastewater Lagoon Improvements is due and requestedauthorization to transfer $70,433.87 from the Sewer Fund to the Bond & Interest Fund toaccomplish timely payment.

Still moved to authorize the transfer of$70,433.87 from the Sewer Fund to the Bond& Interest Fund for payment ofKDHE Revolving Loan No. C20 1711-01. Seconded byNations. Motion carried.

Clerk commented that there are at least two instances on an annual basis that require paymentby credit card, McAfee Antivirus Software subscription and .Gov domain annual registration.Clerk contacted Community 1stNational Bank and was told that a credit card could not beissued to a business but would have to be issued to an individuaL Clerk stated that he hadcontacted the City of Manhattan to inquire how they arranged for payment by credit card.They offered a contact name with VISA for issuance of governmental cards. The applicationprocess requires the adoption of an Organization Resolution and Agreement along with acredit application before a credit card could be issued to the City.

Carroll moved to adopt Resolution No. 03-16-11-A - Organization Resolution andAgreement to obtain a credit card for the City of Ogden. Seconded by Still. Motion carried.

Council reviewed the one application for Swimming Pool Manager and four applications forLifeguards. Clerk commented that the applicant for Pool Manager is a certified lifeguardfrom the 2010 Season.

Mayor Pence inquired whether the Council wished to approve a candidate for PoolManager and allow both the Mayor and Pool Manager to interview the applicants forLifeguards.

Ward Nations moved to hire Anthony Womack as Swimming Pool Manager pendinga successful background check and authorize the hiring of Lifeguards after an interviewprocess conducted by the Mayor and Pool Manager. Seconded by Harris. Motion carried.

Carroll recused himself from the discussion regarding employee evaluations andconsideration of the annual employee merit increase.

Mayor Pence commented that the annual employee evaluations have been completed.Mayor Pence commented that for the period of April 1, 2011 through December 31,

2011, a wage step increase would amount to $7,512, a 1.5% merit increase would amount to$3,506 and a 1% merit increase would amount to $2,338.

Nations moved to grant a 1.5% merit increase to city employees effective the nextpay period. Seconded by Still. Motion carried.

Harris commented that she has reviewed the bills of the month and found them acceptable.

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March 16,2011

Attorney Irvine commented that he has contacted the Riley County Counselor regarding theRIM Development Bankruptcy and there has been no change.

Attorney Irvine commented that in November there was a summary judgment filed byTextron against the lien filed by BG Consultants, Inc. and the Bankruptcy Judge took it underconsideration. Attorney Irvine commented that the Bankruptcy Judge has not issued a rulingon the summary judgment.

Attorney Irvine stated that the Bankruptcy Court is holding approximately $2 Millionof condemnation proceeds from the sale ofland to KDOT for the K-l8 Limited AccessHighway project. CoreFirst Bank: has filed a motion to distribute those proceeds, a portion ofwhich would be awarded to Riley County for payment of delinquent Property Taxes andSpecial Assessments owed to the City. Attorney Irvine stated that Craig Cox-Assistant RileyCounty Counselor was going to file an objection because the City is not receiving what itshould be receiving. CoreFirst is suggesting that the City should be receiving the outstanding2009 taxes and not allocating any proceeds from the condemnation for the 2010 taxes. Theobjection would state that the City should receive all of the 2009 and 2010 taxes.

Attorney Irvine stated that he had prepared draw requests on the Letters of Credit andsubmitted them to CoreFirst Bank:. CoreFirst Bank: responded that payment would beforthcoming but not in the amount requested because of the ongoing dispute on the release ofsome of the Letters of Credit.

Harris inquired on the status of 227 Riley Avenue, and Attorney Irvine replied that he has notheard a response from the property owner.

(Still commented that he has observed several political campaign signs placed in the streetright-of-way and inquired of Attorney Irvine whether there was a regulation prohibitingplacing political campaign signs within the street right-of-way. Attorney Irvine stated thatpolitical campaign signs need to stay on private property and cannot be placed on city right-of-way or city property. Attorney Irvine stated that as general principal the prohibition isbasic law. Attorney Irvine commented that he was unable to find the specific regulation thatcites the prohibition.

Harris moved to schedule a Special Council Meeting on Wednesday, March 30, 2011 at 8:15p.m. for receipt and action on the recommendation from the Planning Commission regardinga request from James Wood to rezone Block 20, Lots 15-18 from R-l Single-FamilyResidential to C-l Central Business, and discussion of insurance quotes and selection of apreferred bid. Seconded by Carroll. Motion carried.

Mayor Pence commended the City Crew on snow removal throughout the winter.

Nations moved to adjourn the meeting. Seconded by Still. Motion carried.Time: 8:31 p.m.

Vincent L. Kramer IICity Clerk

~Q~~,Mayor .'

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