Hillsboro, Kansas

December 6, 2011

1. The city council met in regular session on Tuesday, December 6, 2011 at 4:00 p.m. in council chambers with Mayor Delores Dalke and Council members Marlene Fast, Byron McCarty, Shelby Dirks & Bob Watson present.

2. Others Present: Jennifer Stultz, Hillsboro Star Journal; Don Ratzlaff, Hillsboro Free Press; Gari-Anne Patzwald, 105 S. Wilson; J.T. Klaus & Andrew Kovar, Triplett, Woolf & Garretson; Greg Vahrenberg, Piper Jaffray & Co.; Ben Steketee, Fire Chief; Jeanie Hellman, Receptionist; Larry Paine, City Administrator; Jan Meisinger, City Clerk; Clint Seibel, HDC; & Joel Klaassen, Hillsboro Free Press.

3. CALL TO ORDER – Mayor Dalke called the meeting to order at 4:00 p.m.

4. PUBLIC COMMENTS – none

5. MINUTES – The minutes from the 11-15-11 regular meeting were approved as distributed.

6. VOUCHERS – City Clerk Meisinger made a correction to the voucher listing reducing the computer check amount by $104.94 ; grand total = $121,891.28. Motion was made by Council member Watson and seconded by Council member McCarty to approve the vouchers as listed above. Motion carried unanimously.

7. LEAGUE SERVICE AWARDS – Mayor Dalke presented a 15-year service award to Jeanie Hellman and a 10-year service award to Ben Steketee. She thanked them both for their years of service with the city.

8. BOND ISSUANCE – Greg Vahrenberg, Piper Jaffray & Co., met with council to present the bond sale results for the 2011A & 2011B G.O. bonds. Our bond rating from Standard & Poor is A-, which is the same rating we had at our previous bond sale. We received two bids for the $345,000.00 Series 2011A General Obligation Tax Increment Bonds. They are as follows: Central States Capital Market, true interest cost = 2.768446%; and, Commerce Bank = 3.148276%. Mr. Vahrenberg said interest rates hit a record low last fall and the 2.76% interest rate is very favorable for the city. He recommended that the city accept this bid. Council concurred.

We received four bids for the $1,600,000.00 Series 2011B General Obligation Bonds (for street improvement projects). They are as follows: UMB Bank, true interest cost = 2.670816%; Central States Capital Markets = 2.719517%; Country Club Bank = 2.732662%; Commerce Bank = 2.895985%. Mr. Vahrenberg recommended we accept the low bid from UMB. Council concurred. On this issue, there would not be any principal payments due until 2016 because we have a previous bond issue paying off in 2015 and we are trying to keep the mill levy stable. The 2.67% interest rate is also very favorable. City Administrator Paine said when he & Greg were discussing the sale last week, they were projecting a 3.2 – 3.6% interest rate. Bond closing is scheduled for December 22^nd.

Motion was made by Council member Watson and seconded by Council member McCarty to approve Ordinance 1215 – (AN ORDINANCE OF THE CITY OF HILLSBORO, KANSAS, AUTHORIZING THE ISSUANCE OF THE CITY’S (I) GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES A, 2011, IN THE AGGREGATE PRINCIPAL AMOUNT OF $345,000 AND (II) GENERAL OBLIGATION BONDS, SERIES B, 2011, IN THE AGGREGATE PRINCIPAL AMOUNT OF $1,600,000, FOR THE PURPOSE OF FINANCING THE OTHERWISE UNPAID COSTS OF MULTIPLE CAPITAL IMPROVEMENTS IN THE CITY PROVIDING FOR THE LEVY AND COLLECTION OF AN ANNUAL TAX FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID BONDS; AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS; AND MAKING CERTAIN COVENANTS WITH RESPECT THERETO). Council was polled with the following vote: Council member Fast, yes; McCarty, yes; Dirks, yes; Watson, yes. Motion carried unanimously.

Motion was made by Council member Dirks and seconded by Council member McCarty to approve Resolution 2011-12 – (A RESOLUTION PRESCRIBING THE FORM AND DETAILS OF AND AUTHORIZING AND DIRECTING THE SALE AND DELIVERY OF (I) GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES A, 2011, IN THE AGGREGATE PRINCIPAL AMOUNT OF $345,000 AND (II) GENERAL OBLIGATION BONDS, SERIES B, 2011, IN THE AGGREGATE PRINCIPAL AMOUNT OF $1,600,000 OF THE CITY OF HILLSBORO, KANSAS, PREVIOUSLY AUTHORIZED BY ORDINANCE NO. 1215 OF THE CITY; MAKING CERTAIN COVENANTS AND AGREEMENTS TO PROVIDE FOR THE PAYMENT AND SECURITY THEREOF; AND AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS CONNECTED THEREWITH. Council was polled with the following vote: Council member Watson, yes; Dirks, yes; McCarty, yes; Fast, yes. Motion carried unanimously.

9. FIREFIGHTER REPLACEMENT – Randy Welch has resigned from the fire department. Fire Chief Ben Steketee asked permission to replace him with Johnny Gilkey. Motion was made by Council member Dirks and seconded by Council member McCarty to approve this request. Motion carried unanimously.

10. FIRE TRUCK STAGING – The rescue truck needs to be stored inside. The fire department has tried different configurations and feels it would work best if the ladder truck would be stored in the empty bay at AMPI. The ladder truck rolls the least, but since it is owned by the city, Fire Chief Steketee wanted council approval to move it. Council concurred.

11. WATER WATCH RESOLUTION – The city received a letter from the Kansas Water Office. The governor has declared the vast majority of the state to be in some stage of drought-emergency warning or watch. A drought watch has been issued for Marion Reservoir. Our water conservation plan requires a resolution of the council to impose “watch” procedures. These watch procedures will be in place until the council repeals the resolution or makes them more severe. The goal of this stage is to heighten awareness of the public on water conditions and to maintain the integrity of the water supply system. The city will make occasional news releases to the local media describing present conditions and indicating the water supply outlook for the upcoming season. Leaks will be repaired within 48 hours of detection and the city will monitor its use of water and will curtail activities such as hydrant flushing & street cleaning. The public will be asked to voluntarily curtail unnecessary outdoor water use and to make efficient use of indoor water. Motion was made by Council member Dirks and seconded by Council member Fast to approve Resolution 2011-13 – (A RESOLUTION OF THE GOVERNING BODY OF THE CITY OF HILLSBORO, KANSAS, ESTABLISHING STAGE 1 WATER CONSERVATION MEASURES). Council was polled with the following vote: Council member Fast, yes; McCarty, yes; Dirks, yes; Watson, yes. Motion carried unanimously.

12. SEWER PROJECT CHANGE ORDER – Project Change Order #1 for Wildcat Construction represents an increase of $2,000.00 for installation of a gas trap loop to prevent O2/O3 bubbles from migrating to check valves on pump. Motion was made by Council member McCarty and seconded by Council member Watson to accept the change order. Motion carried unanimously.

13. INTERNET DEVELOPMENT BRIEFING – Clint Seibel & Joel Klaassen met with council to discuss internet development issues. People in the community have voiced concerns about the present internet services available in Hillsboro. It is imperative for businesses to have continuous service. Last week, Eagle Communications & CenturyLink were both off at the same time. Mr. Klaassen felt if the city was going to grow in the future, we needed a much improved server. He felt the future was with fiber, not copper. Mr. Seibel said they were not asking the city for any money, but maybe for support in the future through a franchise agreement and/or pole attachment fee.

14. BOARD APPOINTMENTS – Mayor Dalke appointed Jon Wiebe to the Salem Home Board. Motion was made by Council member Dirks and seconded by Council member McCarty to approve this appointment. Motion carried unanimously.

Mayor Dalke appointed Gary Tibbitts to the Board of Zoning Appeals. Motion was made by Council member Dirks and seconded by Council member McCarty to approve this appointment. Motion carried unanimously.

Mayor Dalke appointed Brad Jantz as municipal court judge. Motion was made by Council member Dirks and seconded by Council member McCarty to approve this appointment. Motion carried unanimously.

15. CITY ADMINISTRATOR’S REPORT – City Administrator Paine gave council copies of the 2011 budget amendment notice for December 20^th at 4:00 p.m.

16. ADJOURNMENT – Motion was made by Council member Fast and seconded by Council member Watson to adjourn at 5:31 p.m. Motion carried unanimously.

DELORES DALKE, MAYOR

ATTEST:

JANICE K. MEISINGER, CITY CLERK