Hillsboro, Kansas

December 20, 2011

1. The city council met in regular session on Tuesday, December 20, 2011 at 4:00 p.m. in council chambers with Mayor Delores Dalke and Council members Bob Watson, Shelby Dirks & Byron McCarty present. Absent: Marlene Fast.

2. Others Present: Jennifer Stultz, Hillsboro Star Journal; Don Ratzlaff, Hillsboro Free Press; Larry Paine, City Administrator; and, Jan Meisinger, City Clerk

3. CALL TO ORDER – Mayor Dalke called the meeting to order at 4:01 p.m.

4. PUBLIC COMMENTS – none

5. MINUTES – The minutes from the 12-6-11 regular meeting were approved as distributed.

6. VOUCHERS – Motion was made by Council member McCarty and seconded by Council member Watson to approve the vouchers in the amount of $293,541.12. Motion carried unanimously.

7. 2011 BUDGET AMENDMENT PUBLIC HEARING – At 4:03 p.m., motion was made by Council member McCarty and seconded by Council member Watson to recess into a public hearing for the 2011 budget amendment. There are four funds with proposed changes: Special Highway proposed amended 2011 expenditures = $164,123; Municipal Court proposed amended 2011 expenditures = $4,600; K-9 proposed amended 2011 expenditures = $3,000; Equipment Replacement proposed amended 2011 expenditures = $38,545. None of these changes affect any property tax levies. No public comments were received. At 4:07 p.m., motion was made by Council member McCarty and seconded by Council member Watson to close the public hearing and resume the city council meeting.

8. MOTION TO AMEND 2011 BUDGET – Motion was made by Council member McCarty and seconded by Council member Watson to approve the 2011 budget amendment. Motion carried unanimously.

9. CEREAL MALT BEVERAGE LICENSES – We have applications for 2012 cereal malt beverage licenses from: Cooperative Grain & Supply, JTJ, Inc.; Hillsboro Municipal Golf Association; Casey’s General Stores, Inc.; & Duckwall-ALCO Stores, Inc. Motion was made by Council member Dirks and seconded by Council member McCarty to approve these applications. Motion carried unanimously.

10. BOBCAT LEASE – For several years, the city has been leasing a Bobcat Skid Steer for the Street Department. The lease was developed by the White Star Equipment Co. to provide new equipment to municipalities. The benefit to White Star is that they can resell the Bobcat used for a price greater than the original government pricing offered to their municipal clients. The unit has been properly serviced and the hours of use are low. This makes an attractive offer for companies wanting to purchase a used piece of equipment. The benefit to the city is that we have access to a brand new piece of equipment every year without having to purchase the equipment outright. The cost to the city will be a one-time payment of $3,900.00. Motion was made by Council member McCarty and seconded by Council member Watson to approve this lease. Motion carried unanimously.

11. 2012 SALARY ADJUSTMENT – City Administrator Paine presented a sheet showing the proposed increases for 2012. There is a 2% average adjustment on regular full-time employees, except for police reserves ($10.00/hr to $12.00/hr) & volunteer firemen ($12.00/run to $12.50/run). No raises have been given for the past two years. Motion was made by Council member Watson and seconded by Council member McCarty to approve the salary increases as presented. Motion carried unanimously. These raises are considered cost of living adjustments.

12. A STREET/FIRST STREET CONTRACT – When we approved the bids for street construction on First Street & Adams Street, there were two small sections that were proposed for construction by city staff. Dale has been looking at the list of maintenance projects that he needs to do in 2012 and has decided that he and his crew are unable to do these projects in a timely manner. Therefore, council needs to authorize that the projects be awarded to the two contractors: First Street for Main to Ash – award to LaFarge for $61,700.00; & A Street from Main to Washington – award to Vogt’s Parga for $99,800.00. City Administrator Paine said most of the difference in cost on A Street was due to drainage work that will need to be done. The bonds the city is issuing will be enough to include these two projects. Motion was made by Council member McCarty and seconded by Council member Watson to award these two projects to the contractors (as stated above). Motion carried unanimously.

13. PAY ESTIMATE #2 FOR SEWER PROJECT – We have Invoice #8403 from EBH for professional services from 10-23-11 to 12-10-11 in the amount of $19,169.50; and, pay Estimate #2 to Wildcat Construction for collection system rehab in the amount of $222,190.20. Motion was made by Council member Watson and seconded by Council member McCarty to approve payment of these pay estimates. Motion carried unanimously. City Administrator Paine said he wanted to get as much paid in 2011 as possible on this project.

14. CHANGE ORDER 2 FOR REYNOLDS INLINER – This change order is to add: 20 cementitious manhole rehabs, 21 polyurethane manhole rehabs & 22 invert repairs for an increase of $14,440.00. The purpose of this change order was to add more manhole repairs to the contract so that the grant money could be used up. Motion was made by Council member Watson and seconded by Council member McCarty to approve Change Order #2. Motion carried unanimously.

15. ONLINE PRIVACY POLICY – As we move toward accepting online payment, our credit card company is requiring that we have a policy for dealing with privacy, refunds & shipping. The majority of our transactions will not require refunds or shipping. After approved, the next action step is to have the document placed on the website for formal credit card processor approval. Then, our next step will be adding the accounting system module and start beta testing. Motion was made by Council member McCarty and seconded by Council member Watson to approve this policy. Motion carried unanimously.

16. BOARD APPOINTMENTS –

Airport – Mayor Dalke reappointed Jared Jost and appointed Lyle Leppke (to replace David Marsh, who is ineligible for reappointment). Motion was made by Council member McCarty and seconded by Council member Watson to approve these appointments. Motion carried unanimously.

Recreation – Max Heinrichs is ineligible for reappointment. Mayor Dalke appointed Steve Noble as his replacement. Motion was made by Council member McCarty and seconded by Council member Watson to approve this appointment. Motion carried unanimously.

Salem Home Board of Directors – Mayor Dalke reappointed Jared Jost. Motion was made by Council member Watson and seconded by Council member McCarty to approve this reappointment. Motion carried unanimously.

17. CITY ADMINISTRATOR’S REPORT –

KPP – The KPP annual meeting was cancelled today because of the weather. They are continuing with purchasing part of the Dogwood Power Plant in Missouri.

Sewer Project – The sewer project is essentially done. The lagoons have been built, improvements to the plant have been made, 17,000 ft of cured-in-place pipe has been installed, manholes have been replaced, equipment in 6 lift stations have been replaced, a couple pieces of equipment have been purchased & the ozone equipment is in place.

Bond Closing – The bond closing is scheduled for Thursday, December 22^nd.

Financial Summary Sheet – City Administrator Paine gave council copies of the city’s financial summary as of 11-30-11.

18. ADJOURNMENT – Motion was made by Council member Watson and seconded by Council member McCarty to adjourn at 4:47 p.m. Motion carried unanimously.

DELORES DALKE, MAYOR

ATTEST:

JANICE K. MEISINGER, CITY CLERK