Document Actions
November 23, 2009
CITY COUNCIL MEETING
November 23, 2009
7:00 p.m.
The Governing Body of the City of Edwardsville, Kansas met in regular session on Monday, November 23, 2009, at 7:00 p.m. in the City Hall Council Chambers.
The following councilmember’s were present with Mayor John McTaggart presiding:
Chuck Adams Mark Bishop Doug Danner
Councilmember’s Crider and Eickhoff were not in attendance.
The following staff members were present:
Michael Webb, City Administrator
David Duckers, City Attorney
Phyllis Freeman, City Clerk
Mark Mathies, Police Chief
Cliff Lane, Fire Chief
APPROVE MINUTES OF NOVEMBER 9, 2009
Councilmember Bishop moved to approve the minutes. Councilmember Danner seconded.
Councilmember Adams stated his concern regarding a statement made on page 2 under requests or comments from the public by Administrator Webb when he answered the question of a potential increase in property tax of three and one half mills since the sales tax vote did not pass.
Councilmember Adams stated there is no additional tax being added since the half cent sales tax did not pass. He recommended that a corrected statement needs to be made; such as to make up the difference or equal to the expected income of the half cent sales tax or equal to three and one half mills. He feels that it is stated there will be a tax increase.
Councilmember Danner stated the question was what mill increase would be required to offset the sale tax had we gotten it, and the answer was three and one half, he did not say there would be one.
Councilmember Adams stated that’s the way it is written, that’s how much of a raise in property tax will there be since the half cent did not pass.
Councilmember Danner stated we must be careful if that’s the way he asked the question we shouldn’t be changing it.
Mayor McTaggart stated it states that it has already been set for 2010. However in 2011 that is where it will have an affect, it will not be changed for 2010 as it has been stated in the minutes on the last page.
Councilmember Adams stated he wanted to make sure that we made it clear that there will not be a tax increase.
Mayor McTaggart requested a roll call vote. The motion passed unanimously.
AMENDMENT TO AGENDA
Councilmember Bishop moved to recess into executive session to discuss potential litigation with the city attorney in order to invoke attorney/client privilege, personnel matters of non-elected personnel and to allow City Administrator Michael Webb to be present in the executive session. That the executive session be for no more than 30 minutes. The open meeting to resume at end of executive session in the council chambers. Councilmember Adams seconded.
Mayor McTaggart requested a roll call vote. The motion passed unanimously.
STATEMENT OF BILLS - $112,090.70
Councilmember Danner moved to approve the statement of bills. Councilmember Adams seconded.
After discussion Mayor McTaggart requested a roll call vote. The motion passed unanimously.
REQUESTS OR COMMENTS FROM THE PUBLIC
Ken Brown, 1142 S. 105th Street stated the question he asked at the last meeting was for the information for the people that voted against the tax. What would we have to raise next years to make up for the sales tax we lost? Not the current budget next years. Hoping that would wake some people up.
Administrator Webb stated to clarify his response that does not mean there will be an increase; it’s the revenue that would have been generated from the sales tax as to what it equates to on the mill levy. There may or may not need to be a mill adjustment we won’t know that until we get into the budget. The 2010 budget was not prepared with the assumption that the sales tax would pass.
CONSIDER ADOPTION OF
RESOLUTION 2009-09
DESIGNATING EDWARDSVILLE AS A
RECOVERY ZONE
Scott Anderson, Kutak Rock, Bond Counsel stated the Stimulus Act passed by the federal government in early 2009 allows cities to issue two types of bonds known as recovery zone bonds. There are recovery zone economic development bonds and recovery zone facility bonds. Recovery zone economic development bonds are taxable bonds that cities can use for city projects that receive a 45% subsidy from the federal government in lieu of tax exempt interest. Recovery zone facility bonds can be used by private businesses and those bonds are tax exempt similar to the traditional private activity bonds like the ones done by the city in the past.
Mr. Anderson stated the City has received an application for issuance of industrial revenue bonds for a significant project to be located at 98th & Woodend Road. The developer of that project would like the opportunity to use recovery zone facility bonds which would benefit them through a fair amount of interest rate savings on those bonds.
Mr. Anderson stated in order to use these bonds you must have an allocation and the Unified Government received allocation from the federal government and has agreed that Edwardsville can use up to $890,000 of that allocation. The state of Kansas has approximately $29 million of recovery zone facility cap available that the city can also make application for. The developer of this project would like the city to use the $890,000 from the Unified Government and make application to the state of Kansas for some amount of that $29 million and whatever the city gets us it for that same project.
Mr. Anderson stated in order for the city to make application for the recovery zone cap, the city has to designate the city as a recovery zone. Meaning the city has incurred unemployment; foreclosures like a lot of other cities have through out the country. A large number of other cities in Kansas and Missouri have done the same in designating their city as a recovery zone in order to receive this allocation cap.
Mr. Anderson stated the first step in this process is to adopt the resolution that is being presented this evening.
After further discussion Councilmember Adams moved to adopt Resolution 2009-09. Councilmember Danner seconded.
Mayor McTaggart requested a roll call vote. The motion passed unanimously.
PRESENTATION BY CHRIS SLAUGHTER
UNIFIED GOVERNMENT LAND BANK DIVISION
Mr. Slaughter presented a power point program stating the Mission Statement of the Wyandotte County Land Bank. The goal of the Wyandotte County Land Bank is to return tax delinquent property to productive use that benefits the community, support home ownership, improve neighborhoods and otherwise advance the economic and social interests for Wyandotte County and its residents.
Mr. Slaughter stated currently there are approximately 5,000 vacant lots in Wyandotte County. The current inventory in the land bank is 1,900 locations acquired primarily by tax sales. Since 2004 the Land Bank has sold 425 properties that has generated approximately $600,000. Back in the 1990’s before consolidation people were coming to the courthouse with the deed to their property and telling the county they do not want it anymore. That generated land that was going to the city or the county.
Mr. Slaughter stated Cleveland, Ohio had developed a program that was studied by a delegation from Wyandotte County and determined to be a good one to utilize. It was necessary to lobby Topeka and get the program passed and passed with KSA 19-26, 103 -113. This program is now being used through out the whole state.
Mr. Slaughter stated when there are adjoining property owners they are notified that the land next to them is available for purchase. The property owner that is interested in acquiring the land must submit an application that is reviewed by Mr. Slaughter. The main criteria are that you can not be delinquent on your taxes and you can not have any code violations within the last three years. The Community Development department has agreements with various developers, at one point they had 33. A part of the land bank agreement was that land would be held for them and they would have right of first refusal. If it would fit in their plans then the Land Bank would hold it for them until they were ready to move forward, if not then they would continue the process. Once the property is transferred they must hold it for one year. If there is interest with more than one applicant, they then have them submit a second price if they don’t want to submit a different price they are then asked how they plan to use the property. An advertisement is placed in the Echo listing the various parcels available for sale as required by state statute. Lots are separated into two classifications; buildable and non-buildable lots. Any lot under the 25 foot frontage is classified as a non-buildable lot. This land is usually purchased by an adjacent landowner for land expansion, parking or to build a garage. A buildable lot has more than 25 foot of frontage. The new owner must provide proof of their intentions to improve the property in order to coexist with the existing neighborhood. A letter of credit is required to prove that they can financially support the project. Any project must be completed within one year. If the owner is showing a definite improvement in some cases they are allowed an extension in time to complete the project. When land is placed in the land bank that land it then free and clear of any taxes which becomes a huge benefit to the buyer.
Mr. Slaughter provided written information that will be made available in the city clerk’s office.
Administrator Webb asked how liens were handled; if possibly the city may have placed a lien what happens then?
Mr. Slaughter replied that when properties are placed in the land bank through the delinquent tax department a majority of those issues have been cleared. There has been one instance where there was a federal lien placed on a property and that takes a longer process to clear the property.
Administrator Webb questioned the need for an inter-local agreement or a formal agreement with the county in this process. The appraiser’s office appraises things and if there are delinquent taxes then the assessor handles delinquencies but what happens to the issues we have on a property, we have not waived our issues. Who gave authority for the Unified Government to waive taxes due to Edwardsville? We may want to still collect our taxes. What is the agreement or has there been one?
Councilmember Adams asked if land is purchased from the land bank is a portion of the purchase price issued to Edwardsville. We need a structured process so that everyone knows what is going on. It’s important for both parties to know exactly what their involvement in the process is and what they are giving up. We are our own city and for another entity to take what we have part interest in we need to know what’s going on.
Mr. Slaughter stated he would check into the questions.
Administrator Webb asked if the city would have interest in a piece of property that may be turned into a neighborhood park, how would we know what steps to take?
Mr. Slaughter stated a simple transfer could take place with the board approval.
The Governing Body thanked Mr. Slaughter for coming.
ADVISORY REPORTS
CITY ADMINISTRATOR
Administrator Webb reported:
An agreement for professional engineering services with Cook, Flatt & Strobel has been concluded in connection with the 110th Street Improvements from the I-70 interchange to Riverview Avenue to finalize construction documents.
The ditch repair at TCI on Woodend Road is completed.
Woodend Road, Phase II project is moving forward. Plans have been submitted and today the state sent 10 more comments that will be addressed and forwarded back to KDOT.
Attended the State Transportation Plan meeting, there is less American Recovery Reinvestment Act (ARRA) money than there are projects. Bids have been submitted that are under that has freed up some of the ERA money. The group has decided that if ARRA money is not available they will apply the same amount of what is called STP money that is 80/20 money. The city project has been determined to be totally funded with ARRA money.
We will be hosting the annual employee holiday luncheon and a retirement party for Cliff Lane scheduled for Friday, December 11th.
We are collecting canned goods for the Vaughn-Trent Community Services.
CHIEFS (POLICE & FIRE)
Police Chief Mathies reported:
Still working on FEMA and SAFER grant applications; weapons purchased and training; installing weapons mounts; computers in cars and Verizon has upgraded the broad ban cards that works much better than before.
CITY ATTORNEY
No report at this time.
CITY ENGINEER
Provided by Administrator Webb.
COUNCIL AND MAYOR COMMENTS
Councilmember Danner reported his attendance at a Kansas League of Municipalities
Regional supper along with Mayor McTaggart, Councilmember Adams, Administrator Webb and City Clerk Freeman. A state of the state report was given regarding the financial status of the state. It is grim as it is in the entire country.
EXECUTIVE SESSION
Councilmember Bishop moved to go into executive session for 30 minutes to reconvene at 8:15 p.m. Councilmember Danner seconded.
Mayor Taggart requested a roll call vote. The motion passed unanimously.
RECONVENE TO REGULAR SESSION
Councilmember Adams moved to reconvene regular session. Councilmember Danner seconded.
Mayor McTaggart requested a roll call vote. The motion passed unanimously.
ADJOURNMENT
Councilmember Adams moved to adjourn at 78:16 p.m. Councilmember Bishop seconded.
Mayor McTaggart declared the motion carried unanimously.
Phyllis Freeman
City Clerk