TO: CC: FROM: SUBJECT: DATE:

City Commission Department Directors David Dillner, City Manager City Managers Report December 23, 2011

Proposed Cattle Feeding Facility. Mr. Justin Reynolds has proposed the construction of a confined cattle feeding facility on land located northwest of Abilene. The area where the facility is proposed for development resides on the surface of the Sand Springs aquifer, one of Abilenes primary water sources. Staff has some concern that nitrogen and other waste from the livestock could infiltrate the ground source water. It is my understanding that this area has been used for similar uses in the past. KDHE has requested interested stakeholders provide comments on the proposed development for consideration. Comments are due to KDHE by December 31, so staff is requesting KDHE extend the public comment period so the City and Dickinson County may better understand the proposal and its potential effect on ground water. It is my understanding that KDHE has already permitted the facility, which must be constructed within twelve months. Abilene Area Chamber of Commerce Sign Request. This item has been scheduled for discussion by the City Commission for the January 3 Study Session. Staff will provide an overview of the issue as well as a status update. Representatives from the Abilene Area Chamber of Commerce Board of Directors will be present to address any questions the City Commission may have concerning this item. For clarification, the City Commission is deciding on whether to amend the Zoning Code to provide an exception to the Chamber of Commerce for off-premise advertising. Should the City Commission elect to grant this text amendment, the Chamber will still be required to obtain a sign permit. The Heritage Commission will then have to review the sign permit within the criteria of the Historic Overlay District. GIS Integration. I met with Brad Homman and Sherry Massey of Dickinson County to discuss the best way to integrate the City with the Countys GIS services. The Community Development Department has been setup to use the system via the Internet. This has generated questions as to why the City needs to continue to maintain the existing fiber optic line between the City Hall and the Dickinson County Administration Building when information may be shared via the Internet. The fiber line was installed by Eagle Communications in 2010 and costs the City $3,240 per year to maintain. Staff is reviewing the need for this connection and options for its continued use. MHS Hospital Construction. Staff has been meeting with MHS staff and contractors to address progress, concerns and the project schedule. Bi-weekly meetings have been scheduled and will allow frequent opportunities for those involved in the project to coordinate. Improving Transparency. In an effort to continue to improve the amount of information available to the public, the City Manager's Report and monthly financial reports will soon be posted to the City's website for public review. Staff has been asked to consider additional information that could be published to the Citys website to allow easy access for the public. 2011 Employee Survey. I believe that the Citys most important asset is the people who serve the public as employees. I have been implementing several initiatives that I hope will help open the organization to more dialogue and engagement. Beginning yesterday, employees will have the ability to participate in the 2011 Employee Survey. This survey will help management better understand the organization from the employees perspective and allow them to anonymously provide input and comments to help us identify areas where improvement may be needed. The deadline for employees to participate is 5:00 pm on January 31, 2012. SurveyMonkey Tool. To facilitate the Employee Survey, the City has purchased a $300 subscription to SurveyMonkey. This is an online survey tool that allows organizations to create surveys with unlimited questions and easily distribute for participation. I am encouraging staff to think of ways to use the Citys SurveyMonkey account to learn more about the community and the Citys services. Surveys could be done to collect information on specific programs and projects to help staff understand how well the public enjoys these services. Ultimately, surveys will only raise more questions that

answers in many cases, but they will help us understand the publics perception of municipal services and help us learn how to be better. I am planning to implement a community-wide survey next year to engage the public on City services. Employee Health Insurance. The Insurance Committee is meeting early next month to review a handful of possible options for our employee health insurance. The Committee will review the options and possibly prepare a recommendation for the City Commissions consideration. This item is tentatively scheduled for the January 17 Study Session. Commissioner Lunches. I have not yet developed a schedule for the Commissioner Lunches for 2012, but will have this prepared and distributed by the end of the year. Abilene Area Chamber of Commerce Annual Banquet. The 83rd Annual Abilene Area Chamber of Commerce Banquet is scheduled for January 12 at the Eisenhower Presidential Library Courtyard. Doors open at 6:00 pm and buffet dinner to begin at 6:30 pm. Please RSVP to Darlene by January 5 if you plan to attend this event. REMINDER: Joint City Commission/CVB Meeting. The City Commission and Convention and Visitors Bureau will conduct a joint meeting on December 27 at 2:00 pm at the Civic Center. Topics on the agenda include the FY 2012 Plan of Action and a proposed increase to the transient guest tax. MAJOR CITY PROJECTS City Facility Roof Repairs. Shingles and Tiles Library (south end, Carnegie side) shingled roof has been completed. Pool complex (pump house and concession stand) shingled roof and new guttering has been completed. Library stucco repairs (south side) has been completed. Civic Center Spanish S title repair has been completed. Metal Roofs Community Center facade has been replaced. Public Works Salt Storage Shed roof has been replaced. Public Works Shop and Office roof is currently being removed and replaced. All structures at Ted Power Field except concession stand and storage building roofs have been replaced. Siding replaced on Senior Center. Greenhouse roof has been completed. ECS Construction is planning to continue metal roof repairs at City Yard and then move to ball fields and City Park. The current schedule is to complete all metal roof work by the second week of January. Elastomeric Coating Community Center, Recycling Center, Park Shop, and Senior Center roofs completed. Wray Roofing indicated to staff that City Hall complex will be started week of December 19, but it will more than likely not begin until after the holiday. KLINK Buckeye Avenue Project, Phase III. KDOT has informed the City that FY2013 KLINK funds have been approved for Buckeye Avenue from SE 5th Street to the south City limits.The City/State agreement for this project will be based on the total estimated of $392,966. KDOTs participation will be 75% of the construction costs, including construction engineering, up to a maximum of $200,000. Additional work, such as curb and guttering, may be included in the project but will be non-participating costs. This means the City will be responsible for all of these additional costs. E. First Street Rehabilitation Project. Staff continues to work on obtaining the easements for the project. So far, the City has obtained 40% of the easements for the project. Public Works Director Lon Schrader has been attempting to obtain easements by going door-to-door, primarily in the evening. This has greatly improved our ability to obtain

easements since people know Lon and are more likely to be home in the evenings. Lon has been able to address most questions the property owners may have concerning their property, which has helped property owners feel more comfortable with the project and the easements. Staff is currently pursuing an option to use the front yards of property owners for access in the area between Bonebrake Street and Brady Street. This is the preferred option of most property owners affected by the access issue within this block. Buckeye Avenue and First Street Geometric Improvements Project. The City received notice on November 2 that KDOT has approved funds for the project based on an estimated total project cost of $768,200. KDOTs participation will be 90% of the actual total participating project costs up to maximum of $800,000. The City is working with KDOT to expedite this project as much as possible, but it is currently not slated to begin construction until 2013. Airport: South Parallel Taxiway Grading and Paving Project. There are still several outstanding issues on this project. The Project Engineer and City Engineer are working with the Contractor to address questions of material quantities. There are also a very items that need repaired including some damaged concrete near the T-Hangars and a section of Washington Street. The Contractor must also remove a culvert to provide better drainage. Airport: Taxiway Lights, Wind Cone and Electrical Vault Building Project. The pre-construction meeting will be scheduled for February or March with construction beginning in March or April. The project will take about sixty days for construction. Airport: T-Hangar Structure. The City will need to determine the next steps to take concerning this project. Grant funds are not available to repair the structural issues or construct a new hangar structure; the City will have to fund these repairs locally. In my estimation there are a few options that may be considered: 1) engineer plans and hire a contractor to repair the structure as provided in the report prepared by the Ebert Mayo Design Group (April 2011) at an estimated cost of $160,000 to $210,000; 2) prepare a Request for Proposals using information contained in the report and contract with a contractor to provide a repair in compliance with the 2006 International Building Code; or 3) construct and finance a new 10-bay T-Hangar structure at an preliminary cost of $500,000 to $600,000. The second option would require a structural inspection to ensure that the repairs met existing code. In the meantime, repairs to the roof are being done to prevent continued weather problems. Doug Smart of Smart Insurance has informed me that the City is not required to have an engineered solution in order for the structure to be insured. As such, I do not know why the City would engineer a solution when the structure itself was not engineered to begin with. It is my understanding that the Citys only requirement is to comply with the applicable building code. This item will be prepared for discussion by the Airport Advisory Committee so a recommendation may be prepared for the City Commissions review. Airport: Runway Marking. KDOT, through the Kansas Airport Improvement Program, has awarded funds to the City to repaint the runway markings. KDOT will reimburse the City 75% of eligible project costs, up to a maximum of $15,000; the City requested $37,500 for this project. Eligible costs include construction and construction engineering. The City is responsible for all additional construction costs, preliminary engineering and any other associated costs. KDOT received 109 applications for program funds. The City will need to determine the painting option and the procurement method. Staff will review the budget and provide information to the Airport Advisory Committee so a recommendation may be formulated for the City Commissions consideration. ITEMS WITH NO SIGNIFICANT CHANGES SINCE LAST REPORT Storm Shelter Needs SE Drainage Project Public Infrastructure Standards and Specifications Technology Plan Stout Manufactured Home Park Utility Billing FY 2012 Budget Document and Budget Brief Russell Stover Wastewater Coordination Water Tower Elevation Issues Facilities Maintenance Position

PERSONNEL NOTES None at this time. BUDGETARY AND FINANCIAL NOTES The projected cash balance for the General Fund as of November 30, 2011 is $4,082,336, which is about $3.1 million in excess of the target balance of $1 million. The adjusted projected cash balance is $3,182,336, which accounts for: 1) a $300,000 transfer to the Bond and Interest Fund; 2) a $200,000 reserve contingency for special projects; and 3) a $400,000 set-aside for potential First Street Project expenses. The projected cash balance is 88% of projected annual expenditures for fiscal year 2011. The projected cash balance for the Water Fund as of November 30, 2011 is $150,221, which is $449,779 below the target balance of $600,000. The projected cash balance is 9.2% of projected annual expenditures for fiscal year 2011. The projected cash balance for the Sewer Fund as of November 30, 2011 is $1,914,126, which is over $1.3 million in excess of the target balance of $600,000. The projected cash balance is 134% of projected annual expenditures for fiscal year 2011. As of November 30, 2011, five funds are projected to end the year below their target balances. Per established policy, the City Manager and Finance Director will monitor these funds. If the year-end balance is below target balances, management will develop a plan to return these funds to their target balances for the City Commissions review and consideration. The funds that are projected to end below their target balances are: Water Fund: Projected Balance of $150,221 with Target Balance of $600,000; Airport Fund: Projected Balance of $13,934 with Target Balance of $30,000; Bond and Interest Fund: Projected Balance of $30,003 with Target Balance of $350,000; Convention and Tourism Fund: Projected Balance of ($1,823) with Target Balance of $10,000; and Special Street Fund: Projected Balance of $132,223 with Target Balance of $150,000. The following funds were amended to have minimum balances rather than target balances and are projected to not have the minimum balance as required. Purchases from either of the funds will be postponed until sufficient funds are available to meet the minimum balance and the amount of any proposed purchase except in the case of an emergency. Water Equipment Reserve: Projected Balance of $492,080 with Minimum Balance of $500,000; and Sewer Equipment Reserve: Projected Balance of $228,353 with Minimum Balance of $600,000. The City received $139,202 in total sales tax revenue for the month of December. Of this, the General Funds portion is $101,157 and the Library/Pool Project portion is $38,044. Sales tax collections will finish the year 0.7% higher than last year. Sales tax collections will exceed the FY 2011 budgeted amount by $61,960, or about 5.4%. This is a good indicator that the retail environment in Abilene remains stable even amid the economic downturn. The Library/Pool Project performed above the monthly budgeted collection for the sixth consecutive month. The City collected $38,044 in December compared to the $35,000 budgeted. The overall year finished 3.5% above last year and 8.2% above the budgeted amount. The G.O. Bonds for the project will be repaid in seven years. The American City and County Municipal Cost Index decreased in December from 224.2 to 223.7, which represents a 0.2% decrease for the month and a 4.2% increase year-to-date. The Municipal Cost Index, developed exclusively by American City & County in 1978, is specifically designed to show the effects of inflation on the cost of providing municipal services. City staff will soon begin using the Municipal Cost Index to prepare better figures for budget planning, especially with regards to the Capital Improvement Program. Figures that we determined a year or more ago that have not been adjusted will not be accurate when let to bid. This year, the City has had several instances where equipment in the CIP has come in higher than budgeted because the figure was never adjusted based on price fluctuations. This practice, once implemented, will help the City become more accurate in budget forecasting.

MANAGEMENT THOUGHTS (topics/issues the City Manager is currently thinking about) Marketing of Community for NBAF, Fort Riley, etc. Need to coordinate between CVB, Chamber, Community Development, etc. Emerging Leaders Program Team Building with Department Directors Incentives to support Business Growth Organizational Ethics Training Sustainable Community Practices Residential Street Rehabilitation Program Health Insurance Costs GIS Integration Board and Committee Recruitment JANUARY 9 CITY COMMISSION MEETING (subject to change) Memorandum of Understanding for State Historic Preservation Office for HOME Rehabilitation Projects HOME Housing Committee Project Recommendation FY 2013 KDOT Public Transportation Grant Application K-State Parachute Club Lease Agreement Amendment (fuel provision) FY 2012 City Commission Meeting Calendar UPCOMING STUDY SESSION TOPICS (subject to change) January 3 Text Amendment for Chamber Exception to Off-Premise Advertising Transient Guest Tax Proposal January 17 State Legislative Platform Employee Health Insurance Airport Runway Markings Eagle Communications Fiber Optic Agreement February 7 Federal Legislative Platform Personnel Policy Annual Tax Exemptions State of the City Report Conditional Use Permit Request (409 NW 3rd Street for cellular antennas and equipment shed) Rezoning Request (1001 N. Mulberry Street from R-1 to R-2 zoning) UPCOMING MEETINGS/EVENTS (next two weeks) City Offices Closed, December 23 and 26 (Christmas holiday) Joint City Commission/Convention and Visitors Bureau meeting, December 27 at 2:00 pm City Commission meeting, December 27 at 4:00 pm City Offices Closed, January 2 (New Years Day) Commission Study Session, January 3 at 7:00 am Airport Advisory Committee, January 3 at 5:00 pm Commissioner Lunch, January 4 at 12:00 pm NOTE: There will not be a Study Session prior to the City Commission meeting scheduled for December 27.