May 3, 2005
The Board of Commissioners of the City of Lawrence met in regular session at 6:35 p.m., in the City Commission Chambers in City Hall with Mayor Highberger presiding and members Amyx, Hack, Rundle, and Schauner present.
RECOGNITION/PROCLAMATION/PRESENTATION:
Mayor Highberger introduced Anatoliy Romanyuk, a member of the city council of Lviv, Ukraine.
With Commission approval Mayor Highberger proclaimed the week of May 1 – 7 as “Drinking Water Week”; the week of May 1 – 8 as “Cover the Uninsured Week”; Saturday, May 7 as “Sertoma Bar-B-Q Cook-Off Day; the month of May as “Bicycle Safety Month” and the week of May 15 – 21 as “Bike to Work Week”; and the month of May as “Mental Health Month.”
CONSENT AGENDA
As part of the consent agenda, it was moved by Amyx, seconded by Hack, to receive the City Commission meeting minutes of April 19, 2005. Motion carried unanimously.
As part of the consent agenda, it was moved by Amyx, seconded by Hack, to receive the Historic Resources Action Summary meeting minutes of March 17, 2005; the Sesquicentennial Committee meeting minutes of April 6, 2005 and December 8, 2004; the Lawrence Memorial Hospital Board meeting minutes of March 16, 2005; the Public Incentive Review Committee meeting minutes of April 21, 2005; and the Aviation Advisory Board meeting minutes of February 24, 2005 and March 31, 2005. Motion carried unanimously.
As part of the consent agenda, it was moved by Amyx, seconded by Hack, to approve claims to 328 vendors in the amount of $1,430,645.06 and payroll from April 17, 2005 to April 30, 2005 in the amount of $1,443,565.50. Motion carried unanimously.
As part of the consent agenda, it was moved by Amyx, seconded by Hack, to approve the Drinking Establishment Licenses for Key West, 925 Iowa; and The Mad Hatter Bar & Grill, 623 Vermont. Motion carried unanimously.
As part of the consent agenda, it was moved by Amyx, seconded by Hack, to concur with the recommendation of the Mayor and reappoint Jim Carpenter to the Board of Plumbers and Pipe Fitters, to a second term which will expire on April 30, 2008; reappoint Mike Treanor to the Humane Society to a second term which will expire April 30, 2006; reappoint Terry Liebold to the Library Board to a term which will expire April 30, 2009; reappoint Brad Finkeldei, Jo Bryan, and Chrisy Khatib to the Special Alcohol Fund Advisory Board to terms which will expire April 30, 2008. Motion carried unanimously.
As part of the consent agenda it was moved by Amyx, seconded by Hack, to receive the 2004 Tax Abatement Annual Report. Motion carried unanimously. Mayor Highberger noted the Public Incentive Review Committee requested direction on certain matters as noted in the April 21st PIRC minutes and so the annual report would be on a future commission agenda for discussion. (1)
As part of the consent agenda, it was moved by Amyx, seconded by Hack, to set a bid date of May 17, 2005 for the 2005 Chip & Seal/Crack Seal Program. Motion carried unanimously. (2)
As part of the consent agenda, it was moved by Amyx, seconded by Hack, to set a bid date of May 24, 2005 for the improvement of a partial parallel taxiway to runway 1-19 at Lawrence Municipal Airport. Motion carried unanimously. (3)
The City Commission reviewed the bids for a riding litter vacuum (and optional equipment) for the Parks & Recreation Department. The bids were:
BIDDER BID AMOUNT
Tennant $26,940
Sellers Equipment Co. $30,769
DLP Services $34,059
Massco Equipment Co. $34,525
Epoxy Coating Specialist $34,737
As part of the consent agenda, it was moved by Amyx, seconded by Hack, to award the bid to Tennant, in the amount of $26,940 and the additional amount of $1,562.33 to add the optional equipment signal and brake lights, storage box, broom holder, and dust panel filter, for a total of $28,502.33. Motion carried unanimously. (4)
The City Commission reviewed the bids for a three year lease/purchase agreement for an 11 foot high capacity mower (and extended warranty) for the Parks and Recreation Department. The bids were:
BIDDER BID AMOUNT
Deems Farm Equipment $33,575.04
Van Wall Equipment $34,884.00
Turf Professionals Equipment Co. $37,714.32
LL Johnson Distributing $69,120.00
As part of the consent agenda, it was moved by Amyx, seconded by Hack, to award the bid to Deems Farm Equipment, in the amount of $33,575.04 and an additional $2,539.00 for an extended warranty for a total of $36,114.04. Motion carried unanimously. (5)
The City Commission reviewed the bids for one wheel loader for the Public Works Department. The bids were:
BIDDER BID AMOUNT
Berry Tractor & Equipment $103,800
Sellers Equipment Co. $105,393
Murphy Tractor & Equipment $112,760
Victor L. Phillips $123,229
Martin Tractor $133,500
As part of the consent agenda, it was moved by Amyx, seconded by Hack, to award the bid to Murphy Tractor, in the amount of $112,760 because Berry Tractor & Equipment and Sellers Equipment Co. did not meet specifications. Motion carried unanimously. (6)
The City Commission reviewed the bids for KLINK, 6th Street, Arkansas Street to Massachusetts Street, milling, overlay, and pavement marking, for the Public Works Department. The bids were:
BIDDER BID AMOUNT
Engineer’s Estimate $482,926.30
LRM Industries, Inc. $433,478.35
R.D. Johnson Excavating Co. $502,754.30
As part of the consent agenda, it was moved by Amyx, seconded by Hack, to award the bid to LRM Industries, Inc., in the amount of $433,478.35. Motion carried unanimously. (7)
As part of the consent agenda, it was moved by Amyx, seconded by Hack, to authorize the City Manager to enter into a contract with Professional Engineering Consultants, P.A. for study phase services for the Clinton Parkway & Kasold; 22nd and Quail Creek; and the Alvamar Area sanitary sewer improvement projects for $40,648. Motion carried unanimously.(8)
As part of the consent agenda, it was moved by Amyx, seconded by Hack, to authorize the City Manager to execute an agreement for the 2005 Sanitary Sewer Manhole Rehabilitation Project with Dodson-Davis Co, for $240,411.20. Motion carried unanimously. (9)
As part of the consent agenda, it was moved by Amyx, seconded by Hack, to declare and emergency and adopt on first and second reading, Ordinance No.7878, authorizing the sale, consumption, and possession of alcoholic beverages at Eagle Bend Golf Course, May 6th through May 8, for the LPGA Future Golf Tour. Motion carried unanimously. (10)
Ordinance No. 7877, authorizing the sale, consumption, and possession of alcoholic beverages at Broken Arrow Park on Friday, May 6th and Saturday, May 7 for the Sertoma Club BBQ Cook-off Fundraiser, was read a second time. . As part of the consent agenda, it was moved by Amyx, seconded by Hack, to adopt the ordinance. Aye: Amyx, Hack, Highberger, Rundle, and Schauner. Nay: None. Motion carried unanimously. (11)
As part of the consent agenda, it was moved by Amyx, seconded by Hack, to approve the sidewalk dining license for Tellers and place on first reading, Ordinance No. 7876, allowing possession and consumption of alcoholic beverages on certain city property. Motion carried unanimously. (12)
As part of the consent agenda, it was moved by Amyx, seconded by Hack, to adopt Resolution No. 6592, authorizing the issuance of General Obligation Bonds in the amount of $400,000 for KLINK, 6th Street, Arkansas to Massachusetts, Milling, Overly, and Pavement Marking. Motion carried unanimously. (13)
As part of the consent agenda, it was moved by Amyx, seconded by Hack, to approve the site plan (SP-03-25-05) for removal and replacement of 2,197 square feet at Taco Bell Restaurant, located at 1220 West 6th Street with a new 3,166 square foot Taco Bell Restaurant, subject to the following conditions:
1. Execution of a site plan performance agreement per Section 20-1433; and
2. Provision of the following revisions to the site plan:
a. Correct the maximum occupancy level to 96 persons.
Motion carried unanimously. (14)
As part of the consent agenda, it was moved by Amyx, seconded by Hack, to approve as a sign of community interest, a sign to be placed in the right-of-way on the northeast corner of 6th Street and Wakarusa Drive on May 14, 2005 promoting Lawrence Helmet Fair. Motion carried unanimously. (15)
Vice Mayor Amyx pulled from the consent agenda, adoption of Resolution No. 6584, establishing a public hearing for a special assessment benefit district for 33rd Street, west of Iowa, and 33rd and Nieder.
Dave Corliss, Assistant City Manager/Director of Legal Services, said Resolution 6584 established June 7th as the public hearing date pursuant to the applicable laws where the Commission would consider establishing a special assessment benefit district for the improvement of 33rd Street, west of Iowa, including improvements at the intersection of 33rd and Nieder Road. He said during Commission discussion of the Auto Exchange Preliminary Development Plan, located at the southwest intersection of 33rd and Iowa, the importance of improvements to 33rd Street and 33rd and Nieder Road was highlighted. He said Public Works staff had been working at that intersection and believed that some type of intersection control would be important at 33rd and Nieder and it was likely that intersection control would be a roundabout, but it might be a traffic signal.
He said with the development plan at Auto Exchange, one of the site requirements for that business to have permitted access to 33rd Street was a median that would prohibit westbound, 33rd Street traffic from crossing 33rd Street and accessing Auto Exchange directly. That driveway location was simply too close to Iowa.
The proposed benefit district included the area both north and south of 33rd Street. Some of the properties in that area had signed agreements not-to-protest the formation of benefit districts for improvements to 33rd Street. There had also been some communication with one of the landlords of the property to the south of 33rd Street. He said if this resolution proceeded, staff would notify all of those affected property owners concerning the hearing.
He said there was no City financial participation in those planned improvements.
Vice Mayor Amyx said he had recently spent time at that intersection reviewing driving habits. He said he appreciated the median and that traffic would be prohibited from turning left on 33rd Street. He said if a roundabout was placed at the intersection of 33rd and Nieder Road that would add confusion to that intersection. He said he truly believed that Nieder Road was too close to the highway.
Mayor Highberger said there had not been any engineering analysis yet. He said he understood that the Commission was not committing to any particular type of traffic improvement, but was simply establishing a benefit district to pay for the cost of improvements.
Corliss said correct. He said the City Commission’s action was to establish the hearing date, but those discussions were good because the type of improvement would be a focal point of the benefit district.
Vice Mayor Amyx asked how many improvements would be made to that location.
Corliss said the recommendation from the engineer would be what would best and safely move the traffic at that intersection. He said the improvement was not tied to a roundabout or a traffic signal, but the median was tightly tied to 33rd Street.
Vice Mayor Amyx said he did not have a problem with the median, but he did not want to add to the confusion at that intersection by adding a roundabout.
Corliss said those concerns needed to be significantly studied as to whether or not a roundabout would be effective.
Mike Wildgen, City Manager, said there were similar discussions concerning a roundabout at 31st and Nieder Road. He said the study indicated that a traffic signal was best suited for that intersection.
Vice Mayor Amyx said in the event a roundabout was chosen for the improvement, he would not support that type of improvement because he did not think it made sense. He said there needed to be some type of improvement at 33rd and Nieder Road, but not a roundabout.
Soules said a study would be performed to see what type of improvement would be suited for that location. He said if a roundabout was not suited, staff would not recommend that type of improvement.
Moved by Hack, seconded by Schauner, to adopt Resolution No 6584, establishing a public hearing date to consider the establishment of a special assessment benefit district for the improvement of 33rd Street, west of Iowa, including improvements at 33rd and Nieder. Motion carried unanimously. (16)
CITY MANAGER’S REPORT:
During the City Manager’s report, Jim Kane, Eagle Bend Goff Course, Pro-Manager, briefed the City Commission on the LPGA Futures Golf Tour which was a professional women’s golf tournament that would take place at Eagle Bend Golf Course, May 6th through May 8th. He noted that staff had done a tremendous job getting the golf course ready for this event.
Also, during the City Manager’s Report, Ron Hall, Information Systems Director, provided a report to City Commission concerning the ICMA Best Practice’s Symposium. The City of Lawrence’s e-government program was selected to be one of the case studies presented at ICMA University’s Best Practices 2005 in Austin, Texas, April 27-28, 2005. Tim Laurent, East Lawrence Center Supervisor, Frank Reeb, Administrative Services Director, and Mike Wildgen, City Manager, joined Ron in attending the symposium. The ICMA Best Practices Symposium highlights local government excellence and allowed participants to understand what was achieved in the case study jurisdictions along with how those ideas and approaches could be put to work in their own communities. He said besides e-government, other issues presented at the symposium included citizen involvement, financial analysis/budgeting, homeland security, performance measurement, and smart growth.
He presented slides to the City Commission of the Austin, Texas, City Hall and their Commission Chambers.
Mayor Highberger noted that the City of Lawrence was competing with entities that were much wealthier per capita and much larger. He said given the resource this City had, City staff had done a tremendous job, especially the electronic packet which made it more effective and accessible.
Commissioner Schauner said there had often been complaints from people who had attended the City Commission meeting about viewing the screen at the end wall. He suggested that a screen above the City Commissioners would be a good way to see what was being projected.
He said he had read an article that Loudoun County, Virginia, was the fastest or second fastest growing community in the country and they were faced with housing price escalation which made this City’s housing price look modest. He suggested contacting that City to see how they were addressing that issue. (17)
REGULAR AGENDA ITEMS:
Consider mid-year funding request from ECO2 for funding between May 2005 and March 2006. City share of request will be $12,500. An additional 2006 budget request is anticipated to be considered during the 2006 budget process.
Roxanne Miller presented the mid-year funding request from ECO2. She said she was present to answer questions form the Commission.
Commissioner Rundle asked if Miller’s group had already gone before the County Commission.
Miller said yes and it was approved 2-1 in favor of the request. She said it was suggested by Mike Wildgen, City Manager and Craig Weinaug, County Administrator, that if they were going to have a funding request for 2006, that they get into the regular funding budgetary process. She said they would take a look at that idea. The County Commission had suggested that they come to their Commission in July with a presentation on that decision.
Mayor Highberger called for public comment.
After receiving no public comment, Commissioner Hack said the work performed by ECO2 was an excellent process. She thought a good product would come out of all the discussions and suggested approving the request.
Moved by Hack, seconded by Rundle, to approve the mid year funding request for $12,500 Motion carried unanimously. (18)
Consider mid-year funding request of $5,000 from Juneteenth Committee for the 2005 Lawrence Juneteenth Celebration. In addition to the $5,000, the committee is seeking in-kind support services for the family festival from Police, Fire/Medical, and Parks/Rec Departments.
Donna Bell, Juneteenth Committee Co-Chair, presented the funding request. She said last year the City funded their request for $5,000. She said the events that took place had touched approximately 2,000 citizens of this community with the events that took place in 2004. She said last year three major events that took place were the Essay and Poster contest in concert with the Boys and Girls Club, the K.U. Oral History and Gospel Showcase, and the Family Festival. She said with those events, they accomplished the increase of understanding of what Juneteenth was about. She said the focus of that event was to celebrate the end of slavery in this country. She felt given the rich history that Lawrence, it made sense for the City of Lawrence to acknowledge the Juneteenth event.
She said their committee had intended that the request be part of the regular funding process, but there was some misunderstanding with respect to what dollars were allocated and where those dollars would be allocated.
She said the event had advanced understanding and education to this community and they were requesting $5,000.
Commissioner Rundle asked Bell to repeat the dates of those events
Bell said the dates were June 12th -18th. She said they would be working with the University of Kansas for the oral history event; Boys and Girls Club on the poster and essay. contest; a basketball tournament at the East Lawrence Community Center; and the family festival at Burcham Park. Also, Underground Railroad tours would be offered which were a big hit last year.
Vice Mayor Highberger said he appreciated the work that was done at the last Juneteenth Festival. He said he was impressed with the oral history presentation and a lot more citizens needed to hear those stories. He strongly supported the funding request.
Moved by Rundle, seconded by Schauner, to approve the funding and in-kind support services for the Lawrence Juneteenth Celebration. Motion carried unanimously. (19)
Receive proposed Five Year Construction Plan for KDOT supported street improvements.
Chuck Soules, Public Works Director, presented the construction plan. He said the Kansas Department of Transportation (KDOT) was requesting the City update its Five-Year Construction Plan by adding projects for the FY 2010. He said those funds were available for improvement projects on existing roadways functionally classified as collector or arterial streets. The projects were funded 80% by KDOT and 20% by the City. The City was 100% responsible for right-of-way acquisition, engineering design, and utility relocation.
Currently the Five-Year Plan included the following projects:
• Kasold Drive Bridge over the KTA
• 23rd Street, Iowa to Louisiana
• 31st Street, Ousdahl Road to Louisiana
• Kasold Drive, Peterson to KTA
• Intersection, North 2nd Street and Locust Street
• Intersection of K-10 and Harper
He said staff recommended the addition of Kasold Drive from 6th Street to 15th Street. Kasold Drive was originally built in 1972 and there had been several overlays on that stretch of road. He said with the amount of traffic that road carried, there was not time for adequate maintenance and the road should be rebuilt. The project would reconstruct the exiting arterial road with four lanes, a median with left turn lanes at appropriate intersections, curb and gutter, sidewalks, and underground storm sewers The estimated construction cost was $3,500,000, but staff would leverage as much funding as they could from the state.
Other projects for the Five-Year Plan included:
• 23rd Street and Iowa
• 31st Street, Haskell to O’Connell Road.
• Folks Road, from Trail Road to the intersection of Martin Park and Peterson
He said the Transportation and Advisory Committee and the Planning Commission both approved those projects including the addition of Kasold to the Five-Year Plan.
Mayor Highberger asked Soules for the information concerning the estimated 30,000 trips a day on that section of Kasold Drive.
Vice Mayor Amyx asked if Kasold was constructed in 1970’s.
Soules said yes.
Vice Mayor Amyx asked if sidewalk construction was finished in the mid 1980’s.
Wildgen said the sidewalks were not completed all at once.
Commissioner Schauner asked what part of those 100% engineering costs that the City might incur in those projects could be brought in-house so that work could be done for less than contracting the work with outside firms.
Soules said the difficulty would be a staffing issue. He said potentially the Kasold project could be completed in-house, but the 31st and Nieder project would require a pavement engineer, a soil engineer, and a survey crew. He said staff was working on a cost-benefit analysis for the City Commission to review.
Commissioner Schauner said staff was looking at road replacement and other projects. He said it seemed that having a significant and un-ending supply of road projects, staff could create some in-house expertise that might save the City some money. He said that information would be helpful to know one way or another.
Soules said all types of projects could be designed, but the real cost was the construction.
Mayor Highberger called for public comment.
After receiving no public comment, it was moved by Hack, seconded by Schauner, to approve the addition of reconstruction of Kasold Drive from 6th Street to Bob Billings Parkway (formerly 15th Street) to the KDOT’s 5-Year Plan for State FY 2010; and authorize the Mayor to sign a Request for Construction Project. Motion carried unanimously. (20)
Receive staff report concerning telecommunications franchise agreement
David Corliss, Assistant City Manager/Legal Services Director, presented the staff report. He said franchise agreements were a unique area of municipal law in which those agreements were both an ordinance and an agreement whereby the City allowed investor owned utilities to occupy public property and public right-of-way to provide facilities.
He said when he first was involved in franchise agreement issues in the late 1980’s, the issue was the amount of the franchise fee that the utilities charged. Since that time, there had been a revolution in the telecommunications industry which turned this relationship in many different ways starting with some of the federal cable laws in the early 1990’s. He said as the telecommunications industry even further changed, the state was now rewriting its telecommunications laws where the state significantly limited municipal authority regarding telephoning service.
He said what was before the City Commission, at this time, was another issue that regarded the City’s abilities to receive revenue from telecommunications firms in the public right-of-way.
He said Sunflower Broadband provided cable modem services to a number of residences in this community. When staff most recently revised that particular franchise agreement, that agreement provided for a 2% franchise fee on the gross receipts from that service. That was in recognition of its startup nature and obviously cable modem services had taken off nationwide.
As the cable modem industry had grown, the regulations had changed. At the federal level, the Federal Communications Commission, which regulated cable services, had determined that for purposes of federal law, cable modem services was not a cable service under the federal cable law and that decision had been sustained by federal courts. He said the cable industry had indicated that they understood and was widely held by other municipal attorneys around the state and country that meant municipalities could not collect franchise fees from cable modem services. He said there were not any municipalities, that he was aware of, that currently collected cable modem franchise fees from their cable service providers. He said the City did not have the legal authority to collect those franchise fees.
He said as indicated in the staff memorandum, that franchise fee was significant revenue for the City. He said staff estimated that the City was receiving approximately $110,000 to $120,000 this year from that 2% franchise fee from cable modem services.
He said they also had other telecommunications franchise agreements. The franchise agreement with Sunflower Broadband providing cable services had a 3.25% franchise fee; the World Company providing telephone services had a 2% franchise fee; and SBC providing local exchange telephone services had a 2% franchise fee.
He said they could not have different sets of laws for different telecommunications companies. He said he believed the correct path was to amend the City’s franchise agreements so that the franchise fees for cable service and for local exchange telephone services would all be at the same rate. He said that thinking would likely mean that the telephone franchise fees would increase. He said the fees would not mean anything to cable, but staff needed review those agreements and come back with a number of different projections. The issue was mature enough now to be presented to the City Commission in seeking direction.
He said the federal law limited cable franchise fees at 5% and the state telecommunications law that regulated franchise fees for local exchange providers was limited to 5% as well. The state law also allowed for a per line access charge which he believed was $2.00 per access line with some growth in the future. It had been staff’s recommendation that those fees were kept at the gross revenue level.
He said the City’s franchise agreements allowed the City to seek those amendments. The SBC Franchise Agreement had expired and staff had discussions with SBC concerning the continuation of their agreement. He said signing the franchise agreement included right-of-way management provisions. He said SBC would follow a reasonable right-of-way management ordinance that existed separate from franchise agreements. He said most of the right-of-way management issues had to deal with relocation of their facilities for public improvements such as the improvement of Kasold Drive. As the City made improvements to that facility at that location, they had to relocate their telecommunications facility and would get into issues such as underground wiring.
Vice Mayor Amyx asked if the City would be dropping the franchise fee on the modem service because of the change in law and would the City lose $120,000 in franchise fees. He also asked if the City was going to try and recoup those lost fees through the new franchise agreements.
Corliss said staff’s recommendation was revenue neutrality so that the City would not absorb that $120,000 loss to the general fund. He said staff was attempting to write the agreement so that revenue would grow over time.
Vice Mayor Amyx said based on current year levels, the City’s goal was not to come up with more money, but to have those fees neutral.
Corliss said that was the principal that staff thought was important. He said they would try to recover that dollar amount and then all of those telecommunication type providers had a franchise fee at the same amount. The industry was changing even further in that there would be increased telephone usage over cable services and protocol services. He said it seemed to make sense to try and treat all those telecommunication services the same.
Vice Mayor Amyx asked if it was staff’s recommendation to allow for this growth to happen so that additional dollars could be recouped.
Corliss said to the extent that could be done. He said one of the issues seen through the land wire phone business was a question about its long term revenue growth when seeing increased cellular use and a number of people were not adding land line phones to their residences or businesses. They were simply operating off of cellular phones. He said that was revenue the City would not see. He said the City did not collect a franchise fee from cellular phone companies.
Commissioner Rundle asked if he anticipated completing the Right-of-Way Management Ordinance and then completing the revised franchise ordinance.
Corliss said those two documents would happen at the same time. He said he had a number of good ideas on right-of-way management. He said there were a number of right-of-way management provisions scattered through the City Code and it would make sense to unify those provisions. He suggested looking at the best practices on this issue in other communities.
Commissioner Schauner said when the utilities were required to move their lines due to a street improvement project was that an expense that the City incurred.
Corliss said the investor and the utility would bear that expense. He said the City’s water and wastewater utility bears that expense when they have to move lines for a City project as well.
Commissioner Schauner asked about franchise fees paid by those investor owned utilities and what those fees were designed to pay. He asked if it was designed to pay for the right to do business in Lawrence, a business license, or use of the right-of-way.
Corliss said they would not even fundamentally agree on that question if asking the utility representatives. He said it was his opinion that it was the privilege for operating in the public right-of-way and it was not a certificate of convenience to be able to operate within the City limits. He said in this instance, as the law stood now, he believed it was related to the ability of the utility to locate within the public right-of-way. He said in essence, if this City did not have franchise agreements it could be argued that those utilities would need to argue for every square foot of right-of-way that they wanted to locate down any street that was picked. He said the utilities would need to enter into a separate right-of-way use agreement for that particular right-of-way.
He said one of the important issues to keep in mind about franchise fees was that it was a direct pass through to the consumer. He said that idea should be kept in mind, particularly when it was a service on a utility whether it was gas which fees were based on a volume basis and electric was a 4% fee.
Commissioner Schauner asked if the Kansas League of Municipalities had taken a position with respect to increasing the 5% fee.
Corliss said the 5% applied to telecommunication services under state law and 5% applied to cable under federal law. He said the City was fortunate that the investor owned utilities did not try to take that fee away. He said Kansas was one of the few states in the country that continued to have franchise fees collected by their municipalities. In many cases states had preempted that ability.
Commissioner Amyx asked if the franchise fees were dropped on the cable modem service would the fees to the consumer be reduced.
Patrick Knorr, Sunflower Broadband, said the short answer was yes. He said it was a fee that was identified as a franchise fee on the bill and if that fee was removed, that fee would be removed for all consumers and they would see a net reduction in their bills.
He said many cable companies discontinued those fees approximately two years ago. He said they wanted this process to take effect and not disrupt the relationship that existed until there was a compelling legal conclusion that those fees should no longer be collected.
Mayor Highberger called for public comment.
After receiving no public comment, Commissioner Schauner said he would like to make it clear that there would be some sort of an escalator or automatic feature to those franchise agreements.
Corliss said not necessarily because if it was based on gross revenue as their fees went up, your revenue would go up. He said if they continued to have increased subscribers and they increased their fees that was the type of natural growth that was seen. In the City’s franchise agreement at the present time, it did allow the percentage to be increased if following through on an appropriate notice process.
Moved by Rundle, seconded by Amyx, top direct staff to proceed with drafting revised telecommunications franchise agreements. Motion carried unanimously. (21)
PUBLIC COMMENT: None.
Consider a motion to recess into executive session for the following purposes: consultation with attorney for the city on matters which would be deemed privilege in the attorney-client relationship, and to discuss possible real estate acquisition for 40 minutes. The justification for the executive session is to keep attorney-client confidentiality and to keep terms and conditions of possible real estate acquisition confidential at this time. The open meeting of the Commission will resume in the City Commission meeting room.
Moved by Schauner, seconded by Hack, to recess into executive session at 7:50 p.m. for the following purposes: consultation with attorney for the city on matters which would be deemed privilege in the attorney-client relationship, and to discuss possible real estate acquisition for 40 minutes. The justification for the executive session is to keep attorney-client confidentiality and to keep terms and conditions of possible real estate acquisition confidential at this time. The open meeting of the Commission will resume in the City Commission meeting room. (22)
The Commission returned to regular session at 8:30 pm.
After returning from executive session, it was moved by Schauner, seconded by Hack, to adjourn at 8:35p.m. Motion carried unanimously.
APPROVED:
_____________________________
Mike Rundle, Mayor
ATTEST:
___________________________________
Frank S. Reeb, City Clerk
1. Bid Date Set – 2005 Chip & Seal/Crack Seal Program, May 17th.
2. Bid Date Set – Lawrence Municipal Airport runway.
3. Bid – Riding litter vacuum for Parks & Rec to Tennant for $26,940 & 1,562.33 for added optional equipment.
4. Bid – Mower for Parks & Rec to Deems for $33,575 + added warranty for $2,539.
5. Bid – Wheel loader for Public Works to Murphy Tractor for $112,760.
6. Bid – KLINK, 6th, Arkansas to Mass, mil, overlay & pavement marking to LRM for $433,478.35.
7. Contract – Professional Engineering for Clinton Pkwy & Kasold; 22nd & Quail Creek & Alvamar sanitary sewer for $40,648.
8. Agreement – 2005 Sanitary Sewer Manhole Rehab Projects with Dodson-Davis Co., for $240,411.20
9. Ordinance No. 7878 – 1st & 2nd Read, alcoholic beverages at Eagle Bend, May 6 – 8.
10. Ordinance No. 7877, 2nd Read, alcoholic beverages at Broken Arrow for Sertoma Club.
11. Resolution No. 6592 – GOB for $400,000 for KLINK, 6th, Arkansas to Mass.
12. Site Plan – (SP-03-25-05) Taco Bell, 1220 W 6th.
13. Signs – Community Interest for Lawrence Helmet Fair
14. Tellers – Ordinance No. 7876, 1st Read, allow consumption of alcoholic beverages and approve sidewalk dining.
15. Resolution No. 6584 – Public Hearing Date, benefit district for 33rd Street, W of Iowa & 33rd & Nieder.
16. Report – Annual Tax Abatement.
17. City Manager’s Report.
18. Mid-year Funding – ECO2 for May 2005 & March 2006.
19. Mid-year Funding – Juneteenth for in-kind support.
20. 5 Year Construction Plan for KDOT.
21. Telecommunications Franchise agreement.
22. Executive Session