City of Arkansas City Board of City Commissioners Agenda Regular Meeting (continued) Tuesday, March 8, 2016 @ 5:30 PM Commission Room, City Hall — 118 W. Central Ave. — Arkansas City, KS I. Routine Business 1. Roll Call 2. Opening Prayer and Pledge of Allegiance 3. Additions or Deletions to the Agenda (Voice Vote) 4. Approval of the Agenda (Voice Vote) 5. Recognition of Visitors a) Hospital Financial Update b) Cowley First Report Other Business 1. 15 minute executive session to discuss matters of non-elected personnel. II. Awards and Proclamations 1. Proclaim April 2016 as Fair Housing Month in Arkansas City. III. Consent Agenda (Voice Vote) 1. Approval of February 16, 2016, regular meeting and February 16, 2016 joint hospital board meeting minutes as written. 2. Mayor’s Appointments a) Planning Commission – Albert J. Brown, Jr. b) Building Trades Board – Randy Smith, Chris Rains 3. A Resolution authorizing rescheduling of a public meeting of the Governing Body from 5:30 p.m. on March 15, 2016 to 5:30 p.m. on March 22, 2016. IV. Old Business V. New Business 1. Presentation of the 2015 Forfeiture Fund activity report by Police Chief Ward. 2. Sales Tax Question VI. City Manager Updates 1. City Commission meetings on YouTube. 2. FLIR demonstration by the Arkansas City Police Department 3. Health Care Consultant Adjourn
Transcript
City of Arkansas City Board of City Commissioners
Agenda
Regular Meeting (continued) Tuesday, March 8, 2016 @ 5:30 PM
Commission Room, City Hall — 118 W. Central Ave. — Arkansas City, KS
I. Routine Business 1. Roll Call 2. Opening Prayer and Pledge of Allegiance
3. Additions or Deletions to the Agenda (Voice Vote) 4. Approval of the Agenda (Voice Vote) 5. Recognition of Visitors a) Hospital Financial Update b) Cowley First Report Other Business 1. 15 minute executive session to discuss matters of non-elected personnel. II. Awards and Proclamations 1. Proclaim April 2016 as Fair Housing Month in Arkansas City. III. Consent Agenda (Voice Vote)
1. Approval of February 16, 2016, regular meeting and February 16, 2016 joint hospital board meeting minutes as written.
2. Mayor’s Appointments a) Planning Commission – Albert J. Brown, Jr. b) Building Trades Board – Randy Smith, Chris Rains
3. A Resolution authorizing rescheduling of a public meeting of the Governing Body from 5:30 p.m. on March 15, 2016 to 5:30 p.m. on March 22, 2016.
IV. Old Business
V. New Business
1. Presentation of the 2015 Forfeiture Fund activity report by Police Chief Ward. 2. Sales Tax Question
VI. City Manager Updates 1. City Commission meetings on YouTube. 2. FLIR demonstration by the Arkansas City Police Department 3. Health Care Consultant Adjourn
Cowley First Cowley County Economic Development
Community
Support
Promoting
Cowley County
Business
Support
Primary Goals Primary Goals Primary Goals
Housing
Vision 20/20
Rural Development Business Retention
Entrepreneurship Marketing
Business Recruitment Tourism Workforce Recruitment
Workforce Development
Business Retention Survey to identify causes for high turnover Provide education opportunities on business
issues Assist with incentive & training programs Entrepreneurship Market and utilize local loan funds and work
with applicants on loan applications Youth entrepreneurship through YEC event Research potential entrepreneurial
encouragement events Workforce Development Continue to promote & offer training
opportunities Strengthen youth retention ties with schools
and businesses Business Recruitment Respond to location inquires Maintain list of available buildings and sites Identify quality of life recruitment needs
Rural Community Development
Meet with Councils & representatives from rural communities
Identify educational topics for the area
Serve as a resource center for business and community needs
Housing
Identify & research new, creative ideas to address housing challenges identified in the housing study
Generate opportunities to educate existing or potential homeowners
Vision 20/20
Utilize survey data to complete revision of the Countywide Strategic Plan.
Build committee to review and assist in carrying out the revised plan
Marketing
Promote Cowley County as a great place to live, work and play
Educate public on Cowley First resources & activities
Continue to expand social media presence
Workforce Recruitment
Implement Cowley Works talent recruitment and retention activities
Promote skill development opportunities
Host job fairs and attend on behalf of employers & to promote Cowley Works
Tourism
Utilize materials to increase awareness of rural Cowley County tourism initiatives
Work with existing rural tourism individuals to expand on existing opportunities
Consider options to promote the Cowley County Sesquicentennial in 2017
Cowley First —2016 Program of Work Priorities and Goals- 1st Quarter Highlights
Cowley First completed 22 ‘Business First’ visits with manufacturing related businesses, including:
B.Y.I.S
Columbia Elevators
Creekstone
Fluid Kinetics
Galaxy
GE
Greif
Jet AirWerks
KanPak
LG Pike Construction
Liberty Engine Solutions
Morton Buildings
Robotzone
RPPG
Rubbermaid
S and Y Industries
Skyline
Vector Technologies
Webster Engineering
Western Industries
Winfield Consumer Products
Westrock
Employment, sales and expansion information was compiled from the businesses visited. The business visit meetings and surveys conducted by Cowley First provide 2015 peak employment numbers and their 2016 projection,
with previous years for reference. Employment grew from 2012-2014, by 499 employees. It is important to note that companies were
added to the survey process- 2012-2013 included 16 businesses. Projections were expected to continue growth into 2015, but the
projections fell short by 282, with an actual reduction of 168. Employment growth into 2016 is conservatively projected to continue to
slow. Of the 22 companies surveyed, 9 added jobs and 11 companies reduced employment. In 2016, 10 businesses plan to add jobs, 7
will remain flat, and 5 project lower employment. Primary reasons for job reductions are from retirements, efficiencies and lower impact
from seasonality. The survey also revealed that employers continue to increase wages to be more competitive.
Businesses were also surveyed about sales information. In 2014, zero of 20 businesses projected a decrease in sales for 2015, but
currently 6 of 22 estimates that there will be a decrease in sales. Of 20 businesses survey in 2014, 17 projected an increase of 1-
49%. Of 22 surveyed in 2015, 13 reported hitting that mark, with 1 having 50-74% increase. Of surveyed businesses, a majority
experienced overall growth and stability in sales and all but 2 are conservatively projecting the trend to continue for 2016.
A slight majority of businesses continue to anticipate expanding either equipment and/or building space through 2016. This
continues a trend for expansions and continues positive economic growth in Cowley County.
3753
4094
4253 4367
4085 3964
340035003600370038003900400041004200430044004500
2012Employment
2013Employment
2014Employment
2015Projected
2015 Peak 2016Projected
0
2
4
6
8
10
12
Actual Sales2014
Projected Sales2015
Estimated Sales2015
Projected Sales2016
0
2
4
6
8
10
12
14
20
13
20
14
20
15
20
16
Expansions
Yes
No
Active Date Project ID#
Project Name Source Status Elimination Reason
Business Type Project Type Industry Type
1/13/14 1402003 Blue Local Referral Active Existing Business Local Expansion Manufacturing
12/4/15 1512001 Newco KS Dept of Commerce Pending New Business Recruitment Manufacturing
6/3/15 1506004 Shirt Incoming Call Active Existing Business Sell Business Retail
7/8/15 1507002 Read Incoming Call Active Existing Business Sell Business Retail
6/15/15 1506001 Energy Incoming Call Active Existing Business Incentives Manufacturing
6/18/15 1505001 Apple Local Referral Active New Business Recruitment Retail
3/25/15 1503001 Lightening Incoming call Active New Business Incentives Manufacturing
8/24/15 1508001 Southern KS Dept of Commerce Preliminary New Business Housing Call Center
7/20/15 1507003 Landmark KS Dept of Commerce Preliminary New Business Recruitment Manufacturing
2/17/15 1502002 Talking Bird KS Dept of Commerce Preliminary New Business Recruitment Manufacturing
1/11/16 160101 Fiber KS Dept of Commerce Eliminated No suitable site New Business Recruitment Manufacturing
1/15/16 160102 Mini KS Dept of Commerce Eliminated Lack of Suitable Site Existing Business Housing Manufacturing
1/19/16 160103 Quick Shore KS Dept of Commerce Eliminated Lack of Suitable Site Existing Business Housing Manufacturing
1/19/16 160104 Twin KS Dept of Commerce Preliminary Existing Business Housing Manufacturing
1/25/16 160105 Blue Star KS Dept of Commerce Preliminary Existing Business Housing Manufacturing
Open to Cowley County students in 9-12 grades
Interested in Participating?
Dream of having your own business? Have a great idea for a product or service?
If yes, then don’t miss this chance to develop your business idea! Write a business plan including executive summary and projected financials, write a 2-3 minute elevator pitch and set-up your booth at the Youth Entrepreneurship Challenge.
Pick up the Student Participation Form and return it to the teacher or sponsor by Friday, February 5th. All materials will be provided to you by the teacher or sponsor.
Sponsored by Cowley First: Cowley County Economic Development Partnership and NetWork Kansas
Business Plan and Elevator Pitch
1st Place: $300
2nd Place: $200
3rd place: $100
1st Place also qualifies to participate at the statewide
event at K-State on April 25th.
Tradeshow Winner: $250—creative and ready-to–
implement ideas presented in tradeshow booth!
Office of the Mayor Arkansas City, Kansas
Proclamation
Celebrating 48 Years of Fair Housing
WHEREAS, the Congress of the United States passed the Civil Rights Act of 1968, of which
Title VIII declared that the law of the land would now guarantee the rights of equal housing opportunity; and
WHEREAS, the City of Arkansas City is committed to the mission and intent of Congress
to provide fair and equal housing opportunities for all, and today many realty companies and associations support fair housing laws; and
WHEREAS, the Fair Housing groups and the U.S. Department of Housing and Urban Development have, over the years, received thousands of complaints of alleged illegal housing
discrimination and found too many that have proved upon investigation to be violations of the fair housing laws; and
WHEREAS, equal housing opportunity is a condition of life in our City that can and should
be achieved.
NOW, THEREFORE, I Chad Giles, Mayor of the City of Arkansas City, Kansas do hereby designate the month of April 2016, as
FAIR HOUSING MONTH
In the City of Arkansas City and express the hope that this year’s observance will promote
fair housing practices throughout the City.
In witness whereof I have hereunto set my hand and caused this seal to be affixed.
__________________________________
Name/Title: Chad Giles, Mayor Date: March 1, 2016
Item for City Commission Action Section III Item 1
Meeting Date 03/01/2016
Department/Division City Manager
Staff Contact Lesley Shook, City Clerk Andrew Lawson, Public Information Officer
Title: Consent Agenda Item - Approval of February 16, 2016 regular meeting and joint hospital board meeting minutes as written. Description: Please see attached. Commission Options: 1. Approve with the consent agenda. 2. Remove from the consent agenda for further review. Fiscal Impact: Amount: Fund: Department: Expense Code:
Included in budget Grant Bonds Other (explain) Approved for Agenda by:
City Manager
City Commission of Arkansas City Meeting Minutes
February 16, 2016 Page 1
The Arkansas City Board of City Commissioners met in regular session at 5:30 p.m. Tuesday, February 16, 2016, in the Commission Room at City Hall, 118 W. Central Ave., in Arkansas City. Those present at roll call were Mayor Chad Giles, Commissioner Brandon Every, Commissioner Dan Jurkovich, Commissioner Duane Oestmann and Commissioner Jay Warren. Also present at roll call were City Manager Nick Hernandez, City Attorney Tamara Niles, Public Information Officer Andrew Lawson, City Clerk Lesley Shook, Finance Director Kathy Cornwell, Public Works Director Eric Broce, Assistant Public Works Director Mike Crandall, Neighborhood Services Superintendent Richard Brown, City Planner Josh White, Fire Chief Bobby Wolfe, Police Chief Dan Ward and ACPD Lt. Luke Larson. ASM Engineering Consultants, LLC was represented by Kirk Hersey and Ryan McCune. Citizens in attendance included Albert Brown, Michelle Dykes, Kanyon Gingher, Ken Harader, Mell Kuhn, Gareth McGee, Dustin Schuetz, E.W. Shelton, Steven Walker, and Traveler reporters Cody Griesel and Jeni McGee. Pastor Mark Fry offered the opening prayer. Mayor Giles led the pledge of allegiance. Agenda Additions/Deletions and Approval Commissioner Oestmann moved to approve the agenda as presented. Commissioner Warren seconded the motion. A voice vote was unanimous in favor of the motion. Mayor Giles declared the agenda approved. Consent Agenda Mayor Giles made a motion to approve the consent agenda as presented, including the following items:
1. Approving the February 2, 2016, regular meeting minutes as written. 2. Approving the appointment of City Attorney Niles to the vacant City of Arkansas City position on the
Cowley County Juvenile Corrections Advisory Board. Commissioner Every asked Niles to explain the nature of her service on the board. She said she was interested in contributing to how the juvenile justice system is changed in the next few years, especially concerning the issue of removal of juvenile offenders from the home. Chief Ward said the board has a total of 12 members. Niles said that if she is elected as a district court judge in August or November, she could transition to sitting on that board as a judge, but the City still would have to fill its position on the board that she would be vacating. Commissioner Warren seconded the motion. A voice vote was unanimous in favor of the motion. Mayor Giles declared the consent agenda approved. New Business
Goff Industrial Park Road Repairs Resolution No. 2016-02-3020
City Clerk Shook presented for discussion a resolution authorizing the City to enter into a contract agreement with Andale Ready Mix Central, Inc. for Goff Industrial Park Road repairs, for an amount not to exceed $67,000.
City Commission of Arkansas City Meeting Minutes
February 16, 2016 Page 2
Public Works Director Broce said he had been contacted by the Kansas Department of Transportation (KDOT) regarding a City Connecting Links project completed in 2009-10 on Madison Avenue. KDOT said the City never had requested reimbursement for that project’s costs and it owed the City an unexpected amount of $144,628. He wants to use the money for some much-needed repairs, primarily to the failing concrete panels on Goff Industrial Park Road in front of Creekstone Farms Premium Beef. Three bidders were solicited, with one declining to bid at the last minute. Andale was the low bidder and Wells Construction was the high bidder. Approximately 34 panels, or 6,000 square feet of concrete, will be replaced and the base beneath the panels will be replaced with rock. Commissioner Oestmann asked by the road had deteriorated so badly. Broce said the panels were poured directly on a weaker clay base. He thought the contractor might have “pulled a fast one.” He said City street crews also will be more diligent about sealing cracks and preserving the life of the concrete. Commissioner Every asked if the KDOT reimbursement funds could be used somewhere else. City Manager Hernandez said they were not exclusive to road projects. Commissioner Jurkovich asked how the money fell through the cracks. Broce attributed it to a high level of administrative turnover in the City from 2009 to 2011. Commissioner Jurkovich moved to approve the resolution. Commissioner Oestmann seconded the motion. A voice vote resulted in four aye votes and one nay vote, with Commissioner Every dissenting. Mayor Giles declared the resolution adopted and given Resolution No. 2016-02-3020.
Skyline/61st Roads Change Order Resolution No. 2016-02-3021
City Clerk Shook presented for discussion a resolution authorizing the City to enter into a change order agreement with Andale Ready Mix Central, Inc. regarding the Skyline Road and 61st Road improvements, for an amount not to exceed $44,249.14. That amount represents 1.5 percent of the total project costs. Public Works Director Broce said some of the changes were decisions made in the field due to unexpected construction conditions. Others were elective changes that would be nice to have in order to have a complete project, but they were left out of the original project scope in order to reduce project costs. Now that the project is coming in under budget, he would like to add them back into the project. Those changes include grounding rods for the street lights to protect the LED heads, which are $5,000 to $6,000 apiece, from lightning strikes. Broce said the rods are cheap insurance. While that change already has been made, other changes such as crosswalks, new striping and installing new traffic signs are yet to be completed. Extra dirt from the site also was transported to the site of the new Water Treatment Facility, Broce said. ASM representative Kirk Hersey said the costs of painting new crosswalks and striping was so high because it was mostly hand work. He said that while the changes were not necessary, they would increase public safety. Commissioner Every moved to approve the resolution, excluding items 5 (signing) and 6 (pavement marking), for an amount not to exceed $25,327. Commissioner Jurkovich seconded the motion.
City Commission of Arkansas City Meeting Minutes
February 16, 2016 Page 3
Commissioner Warren asked if items 5 and 6 were absolutely necessary. Broce said some of the signs could be made in house, but the striping would look a little odd and there would be no crosswalks for pedestrian traffic. Commissioner Warren asked if the City could be held liable for not having any crosswalks. Broce said it could not and many brick streets do not have them, but it would look better and be safer for foot traffic in the area. J.W. Shelton criticized City officials for not including all of the items in the original project scope in the first place. Mayor Giles said change orders happen on projects because unforeseen items occur once construction begins. Commissioner Oestmann asked if the KDOT reimbursement money could be used for the change order items. Broce said it could, but the City had strived to keep this particular project funded only by street sales tax funds. A voice vote resulted in two aye votes and three nay votes, with Mayor Giles, Commissioner Oestmann and Commissioner Warren dissenting. Mayor Giles declared the motion failed. Mayor Giles moved to approve the resolution as written. Commissioner Oestmann seconded the motion. A voice vote resulted in three aye votes and two nay votes, with Commissioners Every and Jurkovich dissenting. Mayor Giles declared the resolution adopted and given Resolution No. 2016-02-3021.
Demolition of 606 S. Summit St. Resolution No. 2016-02-3022
City Clerk Shook presented for discussion a resolution authorizing the City to enter into a contract agreement with Bradburn Wrecking Company for the demolition of 606 S. Summit St., for an amount not to exceed $78,080. Neighborhood Services Superintendent Brown said six bidders expressed interest in the demolition project after the City Commission declared the structure as dangerous during a hearing last December, but only three bid. Brown said he had worked with both Bradburn and HD Mills in the past with other cities. Mayor Giles asked about the bids from the previous time this demolition was bid. Brown said they were in the range of $78,000. Commissioner Warren asked from where the money for this project would come. City Manager Hernandez said the 2016 demolition budget of $25,000 had been expended already and the 2015 budget of $75,000, intended for this project, had gone back into the general fund at the end of last year. He suggested using sanitation funds. Brown said three other dangerous structures already had been demolished with the $25,000. A fourth demolition due to a structure fire should be reimbursed by insurance. Hernandez said the owner of a property on East Adams Avenue that had to be demolished last October also still needs to reimburse the City for its costs. Commissioner Every said he didn’t think the building was in imminent danger of falling down and asked if it could be boarded up. Brown said that had been done before, but people keep removing the boards and entering the building. Every asked if police could patrol the area more. Brown said he is worried about collapse. Commissioner Warren asked if the City could be liable for any injury or damage if the building collapses. City Attorney Niles said the property owner would be liable and the City is immune from liability.
City Commission of Arkansas City Meeting Minutes
February 16, 2016 Page 4
Hernandez said there hadn’t been any major issues with the elevator in 16 months and suggested putting it off. Commissioner Oestmann moved to approve the resolution, contingent on the postponement until 2017 of a planned elevator control box remodel at City Hall that was to cost $92,000. Mayor Giles seconded the motion. A voice vote resulted in three aye votes and two nay votes, with Commissioners Every and Jurkovich dissenting. Mayor Giles declared the resolution adopted and given Resolution No. 2016-02-3022.
Vacation of Buchanan Avenue Ordinance No. 2016-02-4405
City Clerk Shook presented for discussion a first reading of an ordinance vacating Buchanan Avenue from the east line of Summit Street to the east line of A Street, together with the alley in Block 2 of South Park Addition, with the retention of a City easement for utilities. The vacation was recommended Feb. 9 by the Planning Commission. City Planner White said Cowley College, which owns all of the surrounding property, requested the vacation in order to clean up the property lines in the area as part of its 30-year master plan to expand athletic facilities. White said that as long as the utility easement is retained, there are no other issues with any utilities in the area. Commissioner Warren asked about the college’s plans for the area. White said they have no immediate plans to do anything with the road, but he speculated that the long-term plan is to build more facilities to the south of it. City Manager Hernandez said there are no City plans for growth in that area, other than the college property. Commissioner Jurkovich moved to approve the ordinance on first reading. Commissioner Every seconded the motion. A roll call vote was unanimous in favor of the motion. Mayor Giles declared the ordinance adopted and given Ordinance No. 2016-02-4405.
Hotel Guest Registry Production Ordinance No. 2016-02-4406
City Clerk Shook presented for discussion a first reading of an ordinance modifying Municipal Code Section 18-77, regarding production of hotel guest registries. City Attorney Niles said current Municipal Code requires hotels to maintain a guest registry and produce it to police officers upon request. She said this is a violation of the Constitutional protection against unreasonable search and seizure, and cannot be enforced. Officers would have to seek a search warrant first for the registries. Commissioner Every moved to approve the ordinance on first reading. Commissioner Jurkovich seconded the motion. A roll call vote was unanimous in favor of the motion. Mayor Giles declared the ordinance adopted and given Ordinance No. 2016-02-4406.
City Commission of Arkansas City Meeting Minutes
February 16, 2016 Page 5
Self-Storage Unit Doorways Ordinance No. 2016-02-4407
City Clerk Shook presented for discussion a first reading of an ordinance amending Subdivision Regulations Article 13, repealing existing laws of the City and incorporating such regulations by reference pursuant to state statutes. City Planner White said the Planning Commission on February 9 had voted unanimously to recommend language suggested on January 5 in a motion by the City Commission to allow self-storage unit doorways to face either adjacent residential property or City rights-of-way, as long as appropriate screening is in place to shield them. If there is no screening, the doors cannot face either of those areas, as the current Subdivision Regulations read. Mayor Giles said the process was not fun and took time, but it worked as intended. He thanked the Planning Commission for listening to the City Commission’s feedback and fixing the problem. Commissioner Oestmann moved to approve the ordinance on first reading. Mayor Giles seconded the motion. A roll call vote was unanimous in favor of the motion. Mayor Giles declared the ordinance adopted and given Ordinance No. 2016-02-4407. City Manager Updates City Manager Hernandez said Spring Hill Golf Course had sent its annual report and a check for $5 to pay five years of back rent for the facility. He said they would be asking for more money in their 2017 budget request. He also called the City Commission’s attention to City board vacancies and some applications that had come in. Hernandez said there would be an hour of recess before the joint meeting with the South Central Kansas Medical Center Board of Trustees would begin. He said he had allowed two hours to complete this meeting. Commissioner Every asked about the current arrangement with the golf course. Hernandez said the City owns the facility, leases it to the course to operate and manage for $1 a year, and provides it with free water. Other Business Commissioner Every asked if a citizen has the right to shoot an animal within the City limits. Chief Ward said that is only legal if someone’s life is in immediate danger. He said it still is better to call the police, though. Otherwise, Ward said, it is unlawful to discharge a firearm within the City limits. Commissioner Every also asked about the recent spate of burglaries in Bolton Township and noted he had seen some Arkansas City Police Department patrol cars in the IXL neighborhood recently. Chief Ward said ACPD occasionally assists in the county, but in this case, officers were in the area for follow-up investigation regarding people who had lived in the area and were suspects in recent burglaries. He updated the City Commission on the efforts of ACPD’s Burglary Task Force, and the progress made so far in arrests and recovered property.
City Commission of Arkansas City Meeting Minutes
February 16, 2016 Page 6
Adjournment Mayor Giles moved to adjourn the meeting until 7:30 p.m. Commissioner Oestmann seconded the motion. A voice vote was unanimous in favor of the motion. Mayor Giles declared the meeting adjourned at 6:35 p.m. THE ARKANSAS CITY BOARD OF CITY COMMISSIONERS _________________________ Chad Giles, Mayor ATTEST: ____________________________ Lesley Shook, City Clerk Prepared by: ___________________________ Andrew Lawson, Public Information Officer
City Commission-SCKMC Board of Trustees Joint Meeting Minutes
February 16, 2016 Page 1
The Arkansas City Board of City Commissioners met in a special joint session with the South Central Kansas Medical Center (SCKMC) Board of Trustees and administrators at 7:30 p.m. Tuesday, February 16, 2016, in the Commission Room at City Hall, 118 W. Central Ave., in Arkansas City. Commissioners present at roll call were Brandon Every, Chad Giles, Dan Jurkovich, Duane Oestmann and Jay Warren. Trustees present at roll call were JoLynn Foster, Dr. Perry Lin, Mark Paton, Arleta Rice and Dr. Nick Rogers. SCKMC Trustees not in attendance were Carol Hearne, Greg Norwood, Dr. Jerry Old and Dr. Robert Yoachim. Also present at roll call were City Manager Nick Hernandez, City Attorney Tamara Niles, Public Information Officer Andrew Lawson, City Clerk Lesley Shook, Finance Director Kathy Cornwell, Public Works Director Eric Broce, Fire Chief Bobby Wolfe and Arkansas City Police Department Lt. Luke Larson. SCKMC officials in attendance were Chief Executive Officer Virgil Watson, Chief Financial Officer Holly Harper, Chief Marketing Officer Clayton Pappan, Director of Hospital Quality and Risk Management Jane Campbell, Director of Nursing John Jones, Medical Staff Coordinator Phyllis McCorgary, and legal counsel Otis Morrow. Citizens in attendance included Connie Dykes, Michelle Dykes, Foss Farrar, John Farrar, Kanyon Gingher, Ken Harader, Mell Kuhn, Gareth McGee, Steven Walker and Traveler reporter Jeni McGee.
SCKMC Finances and Operations City Manager Hernandez said the purpose of the meeting was to discuss the financial situation of SCKMC. He distributed a summary sheet showing how the City’s operations had been affected in 2015 by SCKMC’s finances, as well as projections for how it could be affected in 2016 and beyond. Hernandez said that in 2015, 10 special assessment payments of $17,934.09 per month were not paid to the City, for a total shortfall of $179,341. Added to this was the $300,000 interest-free loan extended to SCKMC to help it to make its principal and interest payment last September, $75,000 of which has been repaid. Therefore, total City assistance extended to SCKMC in 2015 was $404,341, or the equivalent of about 7.8 mills. In 2016, the March interest payment was made possible by an additional $275,000 loan from the City. After subtracting the estimated sales tax receipts in February through July, a maximum potential loan of up to $735,968 could be necessary this August. Total unbudgeted assistance in 2016 could be $1,010,968. Hernandez said $215,209 in potential missed special assessment payments already were budgeted for in 2016. The remaining Public Building Commission debt on the 2009 series of revenue bonds is $21,175,000 in principal and 20,319,285 in interest. Remaining special assessments total $2,742,943, for a total actual 21-year commitment (2017 through 2033) of $44,237,228. That is what must be paid if SCKMC is closed or fails entirely. Commissioner Jurkovich asked about some discrepancies with the numbers provided by Ranson Financial Consultants LLC. Hernandez suggested the number they provided is what would be due as of 2019, not 2017.
City Commission-SCKMC Board of Trustees Joint Meeting Minutes
February 16, 2016 Page 2
Sales Tax Discussion City Manager Hernandez said an additional half-cent sales tax would bring in roughly $840,000 per year, which still wouldn’t be enough to cover the entire payment each year. There still would be a $300,000 or so shortfall. A one-cent sales tax would generate roughly $1,680,000. In addition to the current $840,000 that is being generated, the entirety of the debt service would be covered through 2019, when the first half-cent tax sunsets. Without any additional sales tax, the per-year hospital commitment for 2019 through 2023 will be $2.1 million. A half-cent sales tax would reduce that to $1,260,209 per year, or about 24.4 mills, while a one-cent tax would knock it down to $420,209 per year, or about 8.2 mills. The current sales tax will expire on March 31, 2019.
Meeting with Financiers City Manager Hernandez said he, CEO Watson and CFO Harper had met with several bankers, as well as William Newton Hospital officials, bond counsel and an independent municipal financial consultant, on February 11. He said they discussed several different options, viewed from a three-phased approach — immediate need, midterm need and long-term need. Hernandez and Watson have had multiple conversations about the options. Hernandez said the City’s first and primary responsibility is to ensure that the debt service payments are made. Mayor Giles asked what kinds of solutions were discussed. Hernandez said a long-term need is to find a countywide solution to health care issues in Cowley County, including collaboration with William Newton to meet the needs of citizens, find economies of scale, eliminate duplication and fill any service shortfalls that exist. Watson said that in the long term, the population of Cowley County will not be able to support two full-service hospitals. Somehow, the two entities will have to find a way to come together and deal with that reality. He said any rivalries between the two cities need to be put aside when it comes to rural health care.
Declining Hospital Census CEO Watson distributed a bar chart showing the average daily census by month in 2015 at SCKMC, which fluctuated from a high of 12 in March to a low of six in June. He said SCKMC’s “sweet spot” is 13 per day. That means the medical center needs at least 13 inpatients per day in order to have a chance at breaking even financially and not going into the red. Watson said they have to find a way to increase that census daily. He attributed the shortfall mainly to still being four or five physicians behind where they would like to be. SCKMC has a core medical staff of eight, soon to be nine, while William Newton’s is 22. As a result, the Winfield hospital had nearly twice as much gross patient revenue and new patient revenue as SCKMC in 2015. Watson said continuing to be the proactive driving force in physician recruitment will have to be a priority.
City Commission-SCKMC Board of Trustees Joint Meeting Minutes
February 16, 2016 Page 3
William Newton Hospital Finances City Manager Hernandez distributed a presentation on the 2015 financials for William Newton Hospital. It had a 5.7-percent operating margin, with net patient revenue of $31,405,455. Only 20 percent of that was inpatient. About $31.7 million goes to operating expenses — 55 percent to wages, benefits and payroll taxes; 12 percent to contracts and miscellaneous items; and 26 percent to supplies, maintenance and utilities. There was $26 million in contractual write-offs last year, and $3.88 million provided in bad debt and charity care. About 40 percent of the hospital’s patients are commercial and another 43 percent are Medicare. (SCKMC has a much higher amount of Medicare patients.) William Newton’s average daily census is 17.3 inpatients per day. Commissioner Every asked if SCKMC’s average daily census was staying the same. CMO Pappan said it had gone down from five years ago, when the number was in the 14-16 range, due mainly to losing several physicians. CFO Harper pointed out how there is a national trend toward insurance driving more outpatient services, even though inpatient services are how hospitals make most of their money. CEO Watson said having more physicians is what leads to more inpatients, which each additional physician estimated to contribute about $1.5 million in annual revenue to SCKMC, which he said used to have 22 doctors. Commissioner Every said there is a tipping point to relying on that equation, though, because the market share in Cowley County can only bear so many physicians and Winfield already has 22 of them on staff. Hernandez said Cowley County has about 35,000 to 36,000 citizens. Commissioner Every said a normal figure is one physician per 1,000 citizens. Pappan said it’s closer to one physician per 2,000 citizens in Arkansas City. Watson said if there were 31 doctors in the county, all admitting patients to one central hospital, it’d stay busy.
Emergency Room Operations
CEO Watson said one big problem is the large number of patients transferred to Wichita hospitals. He would like to change that trend and keep more patients here locally, if possible. Commissioner Warren asked why there were so many transfers. Watson said the newer generation of doctors prefer to have a clinic practice and not have to do overnight rounds at a hospital. City Manager Hernandez said hospitalists, who can fill that gap, don’t have to be doctors. They can be nurse practitioners, too. He said eliminating the telehospitalist service could save money, but be a bigger burden. By adding a telehospitalist, Hernandez said, patients could be admitted directly into the hospital from the emergency room without needing to contact the primary care physician, thus increasing census. Watson said there has been a new emergency department provider since Jan. 1, 2016. It has had some impact. Hernandez also talked about a model in which paramedicine services could be provided from an ambulance.
City Commission-SCKMC Board of Trustees Joint Meeting Minutes
February 16, 2016 Page 4
Revenue and Recruitment
Commissioner Every said that when he looked at gross revenue from 2012 to 2015, it was pretty much flat at the $30 million mark. He observed that operating revenue is improving in spite of losing doctors. CEO Watson said it is hard to make more money with outpatient volume, but the bread-and-butter is inpatient. Commissioner Warren asked how the physician recruitment problem, which has been a source of concern for three to four years, can be solved. Watson said he thought the Winfield market is saturated now, which might be of some help. Commissioner Warren asked how Winfield was attracting doctors and Arkansas City was not. Watson said William Newton has a better reimbursement process than SCKMC and also can rely heavily on its Foundation, which is considerably more advanced than any private funding source to which SCKMC has access. Pappan said not having critical access status really limits what SCKMC can offer in signing bonuses because that money has to come out of operational expenses.
Bridging the Shortfall
City Manager Hernandez asked about SCKMC’s plan to bridge the short-term shortfall until a sales tax can begin to generate revenue to relieve some of the debt service burden that is holding SCKMC back from opportunities. CMO Pappan distributed a brainstorming worksheet with a list of possible ideas to save on costs or generate revenue. He said not necessarily all of them would be implemented, but it was a starting point for discussions. An 8-percent expense reduction would save $1 million, he estimated, as would a 15-percent pay cut across the board or a 19-percent expense reduction that excludes personnel benefits or other costs SCKMC doesn’t control. Eliminating the telehospitalist program could save $240,000 (which means it breaks even with just five admissions per month), but could lead to larger financial losses in the future due to physician dissatisfaction. Somehow managing a 10-percent increase in revenue could net an additional $1 million, while an estimated $1.5 million potentially could be gained by capturing orthopedic revenue going to Wichita with another day of service. Something as simple as completing charts on time or expanding South Central Kansas Clinic’s hours could mean an additional $100,000 per year, Pappan suggested. Commissioner Warren asked how many people would leave over a 15-percent pay cut. Pappan said he didn’t have an estimate, but guaranteed they would lose some staff if they pursued that goal. Commissioner Warren asked for more details on the 340B retail pharmacy program, which Pappan provided. City Manager Hernandez admitted there is no way to force doctors to admit patients to SCKMC, but he asked Watson if there was anything they were missing that would help to encourage physicians to do so more often. He also asked about giving privileges at SCKMC to Winfield physicians. Watson said that needs to happen.
City Commission-SCKMC Board of Trustees Joint Meeting Minutes
February 16, 2016 Page 5
Taking Off the Gloves Commissioner Jurkovich encouraged CEO Watson to provide the group with hard truths. He said the time had come to take off the rose-colored glasses, and address the fundamental issues facing SCKMC and the City. Nothing he has seen in the financials, Jurkovich said, indicates things are going to improve on their own. He said it appears the medical center will need a sales tax forever to be able to continue making debt service payments. He said the decision to build the new facility was a gamble that building a bigger, better facility or spending more money would put William Newton out of business — and the gamble failed. He said that SCKMC is in bad shape. Mayor Giles said many of the proposed cuts will have a detrimental impact on quality of service, which in turn could lead to even less inpatient business at SCKMC. He also said there is a rift with the Ark City Clinic. There are doctors that won’t send patients to SCKMC, Giles said, and cuts eventually will lead to a shell of a facility. He also said the medical center has a reputation problem that only would worsen in that eventuality. Watson said the reality is that if SCKMC can’t get more patients in the doors, it will become a stabilize-and-transfer facility that sends them on to Wichita. He admitted that to the best of his knowledge, there has never been as much difficulty in getting cooperation from the Ark City Clinic on admissions as there is today.
Accounts Payable Commissioner Jurkovich commended CFO Harper for the job she is doing in shifting funds around, but he announced that SCKMC was falling further and further behind on its accounts payable to vendors and suppliers. He said it is an acute short-term problem and if suppliers are not paid, they could cut SCKMC off. Commissioner Every asked Harper how the situation stood that day. She said SCKMC has $1.9 million in outstanding payables. Harper said many vendors have worked with SCKMC, but that situation can only be sustained for so long.
Half-Cent or One-Cent Sales Tax? Mayor Giles asked CEO Watson if SCKMC could survive with just a half-cent sales tax, because he doubted it could. Watson admitted that a one-cent sales tax would be much better, but he is not sure it could be passed. Commissioner Jurkovich asked if the City could statutorily raise sales tax midway through the year. City Manager Hernandez said it could, but any sales tax passed wouldn’t take effect until the next quarter started. Commissioner Every said an extra half-cent tax only delays the issue until 2019, when the original tax sunsets. He said he thinks that even with an additional one cent, SCKMC will struggle to repay its suppliers and the City with what is raised, but with a half-cent, the facility will have to be downgraded drastically in its operations. Commissioner Oestmann said he is concerned about providing services to the aging citizens of Arkansas City. He said he doesn’t like taxes, but pointed out that a property tax increase will affect everyone, too. He said he’d prefer some kind of countywide option, but Hernandez said there is no interest in that from William Newton.
City Commission-SCKMC Board of Trustees Joint Meeting Minutes
February 16, 2016 Page 6
Discussion of Transfers Commissioner Every said he does not think SCKMC will be able to attract patients from outside of Cowley County. Trustee Rogers disagreed and said he thinks there is a limited market in Sumner County to pull from. But he said the most important thing is cutting down on the one-third of Cowley County patients that transfer to Wichita for their primary care. He asked Nursing Director Jones to address one innovative idea for doing that. Jones said one of the biggest problems at Wichita hospitals is a shortage of beds, so he is talking to them about transferring patients back to SCKMC for recuperation and recovery once they’ve received treatment in Wichita. He said he wants to capitalize on being the destination of choice and desirability if all of Wichita’s beds are full. Jones also said there are various financial incentives SCKMC could offer to make it a more attractive place to seek care. He said the only limiting factor will be the hospital’s creativity and willingness to offer such incentives.
Paramedicine City Manager Hernandez elaborated more on the paramedicine concept as it relates to the Arkansas City Fire-EMS Department. He said it could save on costs to the patient and help to increase the census at SCKMC. Commissioner Warren asked how many non-emergent transports ACFD takes to Wichita each year. Chief Wolfe said they represent more than 50 percent of ACFD’s 1,800 EMS calls. Commissioner Oestmann asked what it would take to make it happen. Hernandez said if a hospitalist was in place, it could happen fairly quickly. Hernandez and Wolfe said they have been talking about mobile integrated health care for at least three years. Wolfe said an ambulance transport is one of the most expensive rides anyone will take in his or her life.
Will of the Trustees Commissioner Every asked what the Board of Trustees wanted to do. Trustee Rogers said the only consensus they came to was that they need a sales tax and a half-cent sales tax probably won’t be enough. Every agreed. Commissioner Warren asked how the outstanding accounts payable would be handled, since the earliest sales tax receipts could start to come in would be August, according to City Manager Hernandez. Trustee Rogers indicated that if the debt payment could be made this year by the City, he thinks CFO Harper can work her way back to an even slate on the payables without that added financial burden on SCKMC’s revenues. Commissioner Jurkovich said that with all due respect, this was the same pitch he heard two years ago, but the finances only have become worse. He said he wanted to support the hospital, but he needed to hear more in the way of constructive solutions from the hospital representatives in attendance before committing. Trustee Rice asked Commissioner Jurkovich what his recommendation would be. He said he didn’t know yet.
City Commission-SCKMC Board of Trustees Joint Meeting Minutes
February 16, 2016 Page 7
Trustee Rice said it is important to keep in mind not just the need to pay off the building, but also the jobs, economic benefit and basic care SCKMC provides to Arkansas City. She agreed the half-cent tax is insufficient. Rice said it will be difficult to sell the one-cent sales tax, but the odds of its passing would increase if it is designated only for the debt service payment. That means SCKMC will have to pursue other means to pay bills. Trustee Foster asked about the components of the current sales tax of 8.25 percent. City Manager Hernandez said 6.5 percent goes to the state and 0.25 percent goes to the county. Of the remaining 1.5 percent, 0.5 percent is the current hospital sales tax, and the general remainder is divided between Fire and EMS operations. Hernandez said Hutchinson’s sales tax on January 1 was 9.1 percent and Commissioner Warren said Hutchinson voters just passed an additional 3.5-percent sales tax to fund a $30 million sports complex. Nursing Director Jones said he hears a lot about what the hospital costs to keep open, but he wonders about the costs if it shuts down. Hernandez and Commissioner Jurkovich said the cost is that there would be no revenues at all to assist the City in paying down the debt service that it would be responsible for paying off entirely. Commissioner Jurkovich said he didn’t want to rush into a half-cent sales tax that won’t fix the problem. He said he thinks Arkansas City residents thought the initial half-cent tax would totally pay for the hospital, but it didn’t. Commissioner Jurkovich said he believes SCKMC can never afford a dime of the bond and interest payment going forward, but it can break even if that is covered, so he wants to push for what absolutely is needed to cover that payment, even if it means a full cent of sales tax, rather than come back to the voters a third time.
Refinancing the Bonds Commissioner Jurkovich said a lot of planning has hinged on SCKMC refinancing its bonds in 2019 to get a lower interest rate, but both he and City Manager Hernandez said there is every possibility that it won’t be able to. Commissioner Jurkovich said banks can’t buy bonds with C credit ratings and he isn’t sure there is an appetite on the individual market for hospital bonds. Hernandez said the Public Building Commission’s two biggest hurdles will be not having enough sales tax revenue to cover the remaining debt and the hospital’s operations. If those two things do not change, Hernandez said, refinancing will not be a realistic option. Commissioner Jurkovich said he thinks investors will want to see the sales tax cover the remaining 23 years, not just 10. Commissioner Every said he is not recommending this, but he thinks SCKMC needs a one-cent sales tax and also needs to generate $500,000 a year in additional revenue for when the original half-cent sales tax runs out. Commissioner Jurkovich said that all of the money SCKMC is paying to debt service actually should be set aside to maintain the current facility, and plan for purchasing new equipment and technologies. Hernandez said there is no way to attach a sales tax to the life of the bond payments. He said it would have to be a general sales tax with no time limit that a future City Commission would have to repeal by a resolution. Commissioner Every asked what the hospital building would be worth if a tax doesn’t pass and it has to be sold.
City Commission-SCKMC Board of Trustees Joint Meeting Minutes
February 16, 2016 Page 8
Status Quo No More CEO Watson said that if Commissioner Jurkovich had been clear about one thing, it’s the status quo has failed. Otis Morrow clarified Watson’s comments about the future of Cowley County only having one acute-care facility in it to mean that neither facility would close; only that one would transition into a different kind of facility. Commissioner Every asked if that was the Board’s vision, as well. Trustee Rogers said there have been no formal discussions to that effect, but that is an undercurrent of thought running through the Board’s discussions. Mayor Giles said he likes the 10-year sales tax option and thinks it needs to be for one cent. In 10 years, he said, the community will be well along the way to re-evaluating the facility and figuring out what it needs to become. If that tax fails, Giles said he will not let the hospital fail, which means re-evaluating the services offered by the City and looking at raising property taxes. He doesn’t like the long-term solution, but agrees that it is inevitable. Mayor Giles said selling the hospital is a nuclear option that should only come into play if all other options are exhausted. He challenged the group to figure out if there is any way SCKMC can survive without a sales tax.
South Central Kansas Clinic Commissioner Every asked about the status of South Central Kansas Clinic, which lost in excess of $400,000 in 2015. He asked if acquiring the clinic was good move and if the situation could be turned around. Trustee Rogers said the clinic gives SCKMC another recruitment option and the expected higher reimbursements for its being a Rural Health Care Clinic should lead to its starting to break even within a few months. He said acquiring the clinic was a good move because it kept Dr. Eric Thomson, one of the hospital’s largest referrers, in town and he believes it will become a break-even operation. CEO Watson concurred with Rogers. Watson said the plan is to locate Dr. Willy Posey in the Outpatient Services Building and perhaps generate enough primary care there in order for that facility also to qualify as a Hospital-Based Rural Health Care Clinic.
Polling the Board Commissioner Jurkovich asked the trustees if the half-cent sales tax question, as presented, still was what they were requesting of the City Commission. Trustee Rice said she thinks it needs to be a one-cent tax, with considerable effort being made to get the community behind the effort. CMO Pappan admitted the last effort was sugarcoated, but this one will not be. Commissioner Jurkovich said the declining meaningful-use payments and the growing accounts payable problem were not made clear to him two years ago, and it was presented that SCKMC was doing better than it was. Trustee Foster, Dr. Lin, Trustee Paton and Trustee Rogers all agreed with Rice that a one-cent tax is needed.
City Commission-SCKMC Board of Trustees Joint Meeting Minutes
February 16, 2016 Page 9
Marching Orders Commissioner Every asked again how the September bond payment will be made and how SCKMC will catch up on its accounts payable. Mayor Giles said he didn’t think there was an answer to the payables at this time. Commissioner Every asked City Manager Hernandez if there is any way the City can come up with around $2 million in the next six months to cover both sets of debts. Hernandez said there was no way that would be possible. If everything is on the table, he said, the most that is doable this year is $500,000 to $750,000. Hernandez said that likely would include terminating payments to outside agencies, and looking at cuts and efficiencies within City departments. Commissioner Jurkovich said capital payments may have to be postponed. Jeni McGee asked if the City would be willing to cut police and fire services before SCKMC makes cuts to its own operations. Commissioner Jurkovich said it wasn’t a matter of being willing — the payment will have to be made, one way or the other. He also indicated SCKMC only can cut so much before it isn’t a hospital anymore. CMO Pappan said the hospital is willing to make cuts before any City department has to look at doing that, and he thought that had been shown by the discussion that night and the list of suggestions brought to the table. Hernandez said if quick cash is needed, something as drastic as privatizing sanitation service could be examined. But a more palatable option is transfers from that and other utility enterprise funds, if that becomes necessary. Mayor Giles said everyone had their marching orders — City staff will look at options for making the payment in August, SCKMC staff will look at cutting what they can and trimming any fat that may exist, and the one-cent sales tax will be on the commission’s next regular agenda. Commissioner Every asked CEO Watson and CFO Harper to bring a calculation to the next commission meeting of what it would take to pay down the accounts payable. Mayor Giles asked for a departmental breakdown of the financial losses at SCKMC, instead of just an overall picture. Hernandez said he would find $500,000. Watson said he thought communication between the City and SCKMC was good, and that he appreciated the commission’s candor and tough questions. Commissioners Jurkovich and Oestmann urged citizens to weigh in.
Adjournment Mayor Giles made a motion to adjourn the joint meeting. Commissioner Oestmann seconded the motion. A voice vote was unanimous in favor of the motion. Mayor Giles declared the joint meeting adjourned at 9:31 p.m.
City Commission-SCKMC Board of Trustees Joint Meeting Minutes
February 16, 2016 Page 10
THE ARKANSAS CITY BOARD OF CITY COMMISSIONERS _________________________ Chad Giles, Mayor ATTEST: ____________________________ Lesley Shook, City Clerk Prepared by: ___________________________ Andrew Lawson, Public Information Officer
Item for City Commission Action Section III Item 2
Meeting Date 03/01/2016
Department/Division Mayor
Staff Contact Chad Giles
Title: Consent Agenda Item - Mayor's Board Appointments Description: The mayor will recommend the following:
Appointments: Planning Commission - Albert J. Brown
Commission Options: 1. Approve with the consent agenda 2. Remove from the consent agenda for further review. Fiscal Impact: Amount: None Fund: Department: Expense Code:
Included in budget Grant Bonds Other (explain) Approved for Agenda by:
City Manager
Item for City Commission Action Section III Item 3
Meeting Date 03/01/2016
Department/Division City Manager
Staff Contact Nick Hernandez
Title: Consent Agenda Item - A Resolution authorizing rescheduling of a public meeting of the Governing Body from 5:30 p.m. on March 15, 2016 to 5:30 p.m. on March 22, 2016. Description: Due to scheduling conflicts, staff recommends moving the regularly scheduled City Commission meeting from March 15, 2016 to March 22, 2016. Bids on the Water Treatment Plant will be received/opened on March 10th at 11 a.m. This will allow staff time to properly prepare the documents for approval without having to hold a special meeting. Postponing the meeting for one week will not delay or hinder any city commission action. Commission Options: 1. Approve with the consent agenda. 2. Remove from the consent agenda for further review.
Included in budget Grant Bonds Other (explain) Approved for Agenda by:
City Manager
RESOLUTION NO. 2016-03 A RESOLUTION AUTHORIZING RESCHEDULING OF A PUBLIC MEETING OF THE GOVERNING BODY FROM 5:30 P.M. ON MARCH 15, 2016 TO 5:30 P.M. ON MARCH 22, 2016. WHEREAS, one of the Governing Body’s regularly-scheduled City Commission meetings is the third Tuesday of every month at 5:30 p.m.; and WHEREAS, there are scheduling conflicts for the March 15th City Commission meeting and therefore the Governing Body desires to move the date of that meeting. NOW, THEREFORE, IN CONSIDERATION OF THE AFORESTATED PREMISES, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF ARKANSAS CITY, KANSAS: SECTION ONE: In lieu of its regularly-scheduled March 15, 2016 City Commission meeting, the Governing Body hereby establishes that it shall hold a public meeting at 5: 30 p.m. on March 22, 2016, at City Hall Commission chambers, 118 W. Central, Arkansas City, Kansas. SECTION TWO: The Governing Body of the City of Arkansas City hereby authorizes City Staff of the City of Arkansas City to take such further and other necessary actions that are required to effectuate the intent and purposes of this Legislative Enactment. SECTION THREE: This Resolution will be in full force and effect from its date of passage by the City Commission of the City of Arkansas City.
PASSED AND RESOLVED by the Governing Body of the City of Arkansas City, Kansas this 1st day of March, 2016 with City Officials being authorized and directed to execute any and all documents necessary to consummate the purposes and intents as expressed in this Resolution and if executed by the Mayor (or other person authorized by law to act in the event of the absence or inability of the Mayor to act) and the City Clerk (or Deputy City Clerk) is directed to attest to and affix the official seal of the City thereon. (Seal) Chad Giles, Mayor ATTEST: Lesley Shook, City Clerk APPROVED AS TO FORM. Tamara Niles, City Attorney
CERTIFICATE
I, hereby certify that the above and foregoing is a true and correct copy of the Resolution No. 2016-03-____ of the City of Arkansas City, Kansas adopted by the governing body on March 1, 2016 as the same appears of record in my office. DATED: _________________. Lesley Shook, City Clerk
Item for City Commission Action Section V Item 1
Meeting Date March 1, 2016
Department/Division Police
Staff Contact Chief Dan Ward
Title: Presentation of the 2015 Forfeiture Fund activity report by Police Chief Ward.
Description: The Arkansas City Police Department maintains a Special Law Enforcement Trust Fund in accordance to state law to track all funds received and expended which are related to asset forfeitures. Attached is a memo detailing the type and approximate value of the forfeited property received, the amount of any forfeiture proceeds received, and how any of those proceeds were expended.
Included in budget Grant Bonds Other (explain) Approved for Agenda by:
City Manager
1
Arkansas City Police
Memo
To: Nickolaus Hernandez, City Manager
From: Daniel C. Ward, Police Chief
Date: 2/25/2016
Re: 2015 forfeiture funds annual report
Kansas Statute 60-4117(d)(2) states: “If the law enforcement agency is a city or county agency, the entire amount shall be deposited in such city or county treasury and credited to a special law enforcement trust fund. Each agency shall compile and submit annually a special law enforcement trust fund report to the entity which has budgetary authority over such agency and such report shall specify, for such period, the type and approximate value of the forfeited property received, the amount of any forfeiture proceeds received, and how any of those proceeds were expended.” The Arkansas City Police Department maintains a Special Law Enforcement Trust Fund in accordance to state law to track all funds received and expended which are related to asset forfeitures. At the end of 2015, the Special Law Enforcement Trust fund had a balance of $17,204.49. During 2015, the Arkansas City Police Department seized a total of $5926.42. Below is a listing of each of the seizures. 1/14/2015 Cash seizure of $1732.00 4/09/2015 1992 Chevrolet pickup which was sold for $375.00 8/31/2015 2008 Chrysler 300 which was sold for $1500.00 8/31/2015 Cash seizure of $145.00 9/18/2015 2004 Ford Focus which was sold for $1025.00 10/15/2015 DTF seizure of 1996 Dodge. ACPD’s receipt from the sale was $176.42 12/02/2015 Cash seizure of $973.00 During 2015, all expenditures of Special Law Enforcement Trust Funds were for the legal fees and legal advertisement related to seizing the funds. A total of $392.47 was expended from the account. Below is a listing of expenditures in 2015. 10/13/2015 Legal publication $67.94 10/15/2015 Legal fees for forfeitures $286.39 12/30/2015 Legal fees for forfeitures $38.14
Sincerely,
Daniel Ward Police Chief
Item for City Commission Action Section V Item 2
Meeting Date 03/01/2016
Department/Division City Manager
Staff Contact Nick Hernandez
Title: Sales Tax Question Description: The Board of Trustees for the Hospital will be meeting tonight, February 25, 2016 to discuss the proposed sales tax question. After the meeting, the packet will be updated. Commission Options: Fiscal Impact: Amount: Fund: Department: Expense Code:
Included in budget Grant Bonds Other (explain) Approved for Agenda by:
