CITY COUNCIL MEETING
MINUTES
MONDAY, OCTOBER 10, 2005
I.
CALL TO ORDER
A
regular meeting of the City Council of the City of Liberty, Missouri was held
in the Council Chambers at City Hall on October 10, 2005 with Mayor Robert T. Steinkamp presiding. Mayor Steinkamp called the meeting to order
at 7:02
p.m.
II. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation was given by Council Member Anna Marie
Martin who then led the pledge of allegiance.
III. ROLL CALL
Roll
call was answered by Mayor Robert T. Steinkamp; Coni Hadden and Harold
Phillips, Ward I; LeRoy Coe and Anna Marie Martin, Ward II; Juarenne Hester and
John Parry, Ward III; and Nick King and Bill Parker, Ward IV. Also in attendance were Cynthia Boecker, Acting
City Administrator; Steve Hansen, Public Works Director; Steve Anderson,
Planning & Development Director; Craig Knouse, Police Chief; Gary Birch,
Fire Chief; Linda Tyree, Finance Director; Marcella McCoy, Assistant Finance
Director; Sara Cooke, Public Relations Coordinator; Lyndsay Heal, Management
Assistant; Jane Sharon, Deputy City Clerk; Angie Borgedalen, Liberty Tribune;
and four members of the public.
IV. APPROVE
MINUTES AND SUMMARIES
A. REGULAR SESSION MINUTES OF SEPTEMBER 26,
2005
Council Member Coe moved to approve the minutes as distributed. Council Member Hadden seconded the motion,
which carried unanimously.
B. EXECUTIVE SESSION MINUTES OF SEPTEMBER 26,
2005
Council Member Hester moved to approve the minutes as
distributed. Council Member Martin
seconded the motion, which carried unanimously.
C. JOINT STUDY SESSION MEETING SUMMARY OF SEPTEMBER 27,
2005
Council Member Hadden moved to approve the minutes as
distributed. Council Member King
seconded the motion, which carried unanimously.
D. JOINT MEETING SUMMARY OF OCTOBER 3, 2005
Council Member Coe moved to approve the minutes as
distributed. Council Member Martin
seconded the motion, which carried 7-0-1.
Council Member Phillips abstained due to absence.
V. CITIZENS’ PARTICIPATION
Mayor
Steinkamp introduced Blake Fletcher, a student at William Jewell College. Mr. Fletcher
is interested in a career in the law and is being mentored by the mayor.
VI. MEETING SCHEDULE
A. AUTHORIZE
EXECUTIVE SESSION TO DISCUSS PERSONNEL MATTERS AS AUTHORIZED BY SECTIONS
610.021 (3) RSMo AND 610.021(13) RSMo ON OCTOBER 19, 2005 AT 5:30 P.M. IN THE COUNCIL CONFERENCE ROOM - MOTION
Council Member Hadden moved to authorize the executive
session. Council Member Hester seconded
the motion, which carried unanimously.
VIII. PUBLIC HEARINGS – None.
A.
ACKNOWLEDGEMENT
OF VENDOR PAYMENTS FROM SEPTEMBER 23, 2005 THROUGH OCTOBER 7, 2005 – ORDINANCE
Document No. 6425 was read. Council Member Hester moved to approve the
ordinance. Council Member King seconded
the motion.
Council Member Martin asked about the card center
payment for playground training. Acting City Administrator Cynthia Boecker said it was for
registration and course materials, which is part of certification for training on
playground equipment inspections. This
training is a MARCIT requirement.
Mrs. Martin asked about a card center purchase for
locks. Finance Director Linda Tyree said
the locks were for three offices in city hall and were needed to secure these
areas.
Council Member King asked about check number 91549 for
Symphony tickets. Parks & Recreation
Director Chris Deal explained that the tickets are sold through the Community
Center and then paid out to the Symphony.
Ms. Boecker added that this is the same process as is used with selling
Worlds of Fun tickets.
Vote on the motion was as follows: Council Member Phillips – yes; Council Member
Martin – yes; Council Member Hester – yes; Council Member Parker – yes; Council
Member Hadden – yes; Council Member Coe – yes; Council Member Parry – yes;
Council Member King – yes. The motion
carried unanimously; it was approved by the Chair and inscribed in Ordinance
No. 8881.
B.
UPPER RUSH CREEK SEWER IMPROVEMENTS PROJECT
1.
AUTHORIZE
ISSUANCE OF STATE REVOLVING FUND (SRF) SEWER
SYSTEM IMPROVEMENT REVENUE BONDS – ORDINANCE (SECOND READING)
Document No. 6419 was read. Council Member Hester moved to approve the
ordinance. Council Member Martin
seconded the motion, which carried unanimously.
It was approved by the Chair and is inscribed in Ordinance No. 8882.
2.
CONTRACT WITH KAT
CONSTRUCTION, INC. FOR CONSTRUCTION IN AN AMOUNT NOT TO EXCEED $5,066,755 –
ORDINANCE (SECOND READING)
Ms. Boecker referred Council to a memo issued today
describing the recommended bidder’s request to increase the contract amount by
$49,260, based on increased costs for materials. Public Works Director Steve Hansen reviewed
the request received October 6 from KAT Construction, which was recommended as
the lowest and best bidder when the contract was first read at the September 26,
2005 Council meeting. KAT Construction had received notice of a
cost increase from its supplier of pipe, due to the hurricanes. Mr. Hansen said the supplier, contractor and
City staff met the next day to determine if any of the cost increase could be
shared among the three, but no agreement was worked out in that regard. The contractor is claiming additional costs
are attributed to force majeure,
which excuses a party from liability if some unforeseen event beyond the control
of that party prevents it from performing its obligations under the
contract. The contractor is requesting a
liability exemption for the increased cost of the pipe.
Mr. Hansen stated that City’s legal counsel reviewed
the matter and indicated there are limited alternatives available to the
City. The options include rejecting the
bids and rebidding the project; going with the next low bidder; or approving
the contract with KAT Construction, which is on second reading this evening and
then considering a change order in the amount of the increased cost for the
pipe at the next Council meeting.
If the bids are rejected, the costs could increase in
the interim and further delays in construction of the project could jeopardize
the time table for project completion prior to expiration of the permit for the
Rush Creek plant in August 2006.
Accepting the second lowest bid is not recommended as it was substantially
higher than the KAT Construction bid.
Staff recommends approving the contract with KAT construction,
which is on second reading. A change
order would then come forward for Council consideration at the next regular
session to address the $49,260 increase in costs for pipe.
Council Member Parry asked about the difference
between the bids of KAT Construction and the next lowest bid. Mr. Hansen said the difference was about $1
million. Mr. Parry asked what funds
would cover the increased project costs.
Mr. Hansen said the bids had come in higher than anticipated and
substantially reduced the funds that had been budgeted for the inflow and
infiltration program. Increases in this
project would further reduce funds available for that program. With permits expiring next August, this
project must be completed. Mr. Hansen
added that higher costs are a reality to be dealt with in every project.
Mr. Parry asked what the impact would be of not doing
the inflow and infiltration program. Mr.
Hansen said it would have to be made up and another funding source would have
to be identified to continue the program at an acceptable level. Ms. Boecker added that this would be reviewed
in a financial summit, noting the inflow and infiltration program is in the
utility budget, which includes capital projects such as this one.
Council Member King asked when the Rush Creek project would be completed. Mr. Hansen said it would be before August
2006, but because circumstances can affect the schedule, this is only a target
date. Mr. King asked what change orders
are likely to come forward on a contract such as this. Mr. Hansen said change orders are not
typically for increases in material costs, but it is not unusual to see
additional costs for work requiring additional material quantities.
Mr. King asked whether the contract locks in a price
for the project. Mr. Hansen said it
does, but the contractor can withdraw anytime before the contract is executed
if he has made a substantive error in his bid.
Council Member Hadden asked if penalties for late
completion or incentives for early completion are part of this contract. Mr. Hansen said the usual liquidated damages
clauses are included, but there are no incentives for early completion. Mrs. Hadden confirmed that the time frame is
acceptable to the Department of Natural Resources (DNR), which issues the
permits for the plant that will expire in August. Mr. Hansen said DNR would look at what had
been done to comply with its standards, before citing the City, but the project
needed to be completed and the Rush Creek plant taken out of service.
Document No. 6420 was read. Council Member Martin moved to approve the
ordinance. Council Member Hadden
seconded the motion. Council Member Coe
asked for clarification of the process.
Ms. Boecker said this ordinance, approving the contract with KAT
Construction, was on second reading. A
separate change order would then be brought forward for Council consideration
at a future meeting, amending this contract by the amount of the increased cost
of supplies. The motion carried
unanimously; it was approved by the Chair and is inscribed in Ordinance No.
8883.
3.
CONTRACT WITH
DAVID E. ROSS CONSTRUCTION COMPANY FOR CONSTRUCTION IN AN AMOUNT NOT TO EXCEED
$2,080,800 – ORDINANCE (SECOND READING)
Document No. 6421 was read. Council Member Coe moved to approve the
ordinance. Council Member Hester
seconded the motion, which carried unanimously.
It was approved by the Chair and is inscribed in Ordinance No. 8884.
C.
*AUTHORIZE
ISSUANCE OF 1998 WATERWORKS REFUNDING REVENUE BONDS – ORDINANCE (FIRST READING)
Assistant Finance Director Marcella McCoy reviewed the
refunding proposal, noting this bond issuance would refund a 1998 bond issue,
also a refunding of existing bonds. She
stated that the City takes advantage of market conditions for bonds, which are
refundable in five-year increments. Ms.
McCoy stated this refunding would provide approximately $38,000 in annual
savings, reducing the interest rate from 4.5% to 3.4%.
Mayor Steinkamp asked about the number of years it
would take to repay the bonds. Ms. McCoy
stated the bonds were scheduled for payoff in 2012 or seven years.
Council Member King asked in what fund the savings
would be placed. Ms. McCoy stated these
are waterworks bonds and any savings would be in the water fund. These savings would offset increased costs
identified in the 2006 budget and reduce the need to raise rates. Ms. Boecker noted this is a utility fund and revenue
is used for both operations and capital projects.
Council Member Hadden asked why the bond issuance had
to go to second reading and could not take advantage of the market today. Todd Goffoy, Piper Jaffray, stated that they
go to market after the first reading and numbers are then available at the
second reading of the ordinance. Mrs.
Hadden asked if that is to get a nod from the City for the bond issuance. Mr. Goffoy said it was for that reason and to
avoid the necessity of two readings on one night. He added that the final bond prospectus is
completed after the first reading.
Council Member King and Council Member Hester asked
for clarification of the bond issuance going forward first reading. Mr. Goffoy said they go to market after the
first reading of the ordinance by Council and bonds would be issued, subject to
Council approval on second reading.
Document No. 6426 was read. Mayor Steinkamp said no vote was required to
take ordinances to second reading and this ordinance would go to second reading
on October 24, 2005.
XI.
MISCELLANEOUS
MATTERS FROM CITY ADMINISTRATOR
Ms.
Boecker noted the study session following this meeting had originally been
scheduled in the chambers, but was being moved to the conference room.
XII.
MISCELLANEOUS
MATTERS FROM MAYOR AND CITY COUNCIL
Council
Member Phillips thanked Council Member King and the City staff for coordinating
the trip to New Town at St. Charles and added that he hoped there would be
something put together to plan a similar development in Liberty.
Council
Member Martin thanked the staff for the development resource book. Ms. Boecker noted that had been prepared for
the development roundtables by the planning and public relations staff.
Council
Member Hester announced Liberty
had again been recognized with a Governor’s Humanities Award. This time, the
Governor's Humanities Award is being presented to Neita Geilker, Lainey Koepke,
and Chris Harris for the century homes book.
They will be presented with the award during a ceremony at the Governor's
Mansion on November 16. Mrs.
Hester added that this was very unusual for a city to receive two awards,
making this recognition a significant honor.
XIII. ADJOURNMENT
The
meeting adjourned to executive session at 7:40 p.m.
__________________________________
Mayor
Attest:
_____________________________________
Deputy City Clerk