The city council met in adjourned session from the meeting of December 10, 2007 with the following present: Mayor Jack E. Rowden; Councilmen Mike Eshbaugh, Greg Gill, and Kim Harper. Absent: Councilmen Gary Baughman and Bob Mason.

Others present were City Clerk Thomas G. Hicks and Chief of Police Steve Lewis.

A quorum was seated at 5:18 p.m., and Mayor Jack E. Rowden presided.

The city council met as a budget hearing body to consider amending the 2007 budget. No one appeared in connection with the budget amendment hearing. Motion by Councilman Mike Eshbaugh, seconded by Councilman Kim Harper, to approve the 2007 amended budget, for the general operations fund from $1,560,000.00 to $1,662,200.00 and for the sanitation fund from $196,500.00 to $225,000.00, as published. Motion carried. The amended budget does not change the amount of property taxes levied.

The minutes of the meeting of December 10, 2007 were approved as mailed.

Motion by Kim Harper, seconded by Mike Eshbaugh, that uncollectible utility accounts in the amount of $3,853.22 be charged off with every effort made to collect the accounts. Motion carried.

Motion by Harper, seconded by Eshbaugh, that a cereal malt beverage license for calendar year 2008 be approved for Dominoe’s Bar & Grill at 506 South Main for consumption on the premises. In favor of the motion: Councilmen Harper and Eshbaugh. Opposed: Councilman Gill. Motion carried.

Claims against the city were presented and audited. Motion by Harper, seconded by Eshbaugh, that Appropriation Ordinance No. 1853 be passed. Motion carried.

Motion by Harper, seconded by Gill, to pay $25,000.00 to EMC Insurance Companies, Inc. toward the settlement of the lawsuit with Cassie Hagman over the city’s employment process, subject to the city attorney and Mrs. Hagman’s attorney agreeing on the details of an employment agreement. Motion carried.

Motion by Eshbaugh, seconded by Gill, that the meeting be adjourned to January 7, 2008 at 5:15 p.m. Motion carried.

The city council met in adjourned session from the meeting of November 5, 2007 with the following present: Mayor Jack E. Rowden; Councilmen Gary Baughman, Mike Eshbaugh, Greg Gill, Kim Harper, and Bob Mason.

Others present were Outside Utilities Supervisor Dean Banker, City Clerk Thomas G. Hicks, Chief of Police Steve Lewis, City Inspector Tony Martin, Electric System Supervisor Gary Rowden, City Attorney Wayne R. Tate, Henry Hale, Nathan Holman, Bob Johnson, Roger Lynch, Martin Phillips, Ed Wiltse, and Ruthie Winget.

Mayor Jack E. Rowden presided.

The minutes of the meeting of November 5, 2007 were approved as mailed.

Each member of the governing body was provided a copy of Municipal Judge Sherri Leonard’s report for the month of November, showing 31 new cases brought before the court and $3,885.00 remitted to the city.

City Inspector Tony Martin provided a monthly activities report

Bob Johnson, with Sunflower Electric Power Corporation, reviewed the various pricing sections of the city’s Electric Interconnection and Power Supply Agreement. Schedule B of the agreement is adjusted annually. Should the city choose not to accept the revised Schedule B, the city would have to either generate or purchase electricity off the spot market. Either of those alternatives would be considerably more expensive than purchasing excess energy from Sunflower’s coal-fired generation. Motion by Councilman Kim Harper, seconded by Councilman Greg Gill, to authorize the mayor to execute the agreement for the Schedule B price adjustments. Motion carried.

Councilman Gary Baughman arrived at 5:50 p.m.

Henry Hale, with Cimarron Valley Railroad, and Nathan Holman and Martin Phillips with United Prairie Ag, appeared before the governing body to discuss the bids to concrete two sections of Public Road where railroad tracks are being abandoned that currently serve the Halliburton plant and the United Prairie Ag elevators. Mr. Hale reported the following costs for improvements already being borne by the participants in the project are as follows: Cimarron Valley Railroad-$65,000.00, Halliburton-$28,800.00, and United Prairie Ag-$29,300.00. Motion by Kim Harper, seconded by Bob Mason, to accept the bid of McBride Construction, Inc. of $8,270.00 to concrete the area where tracks are being removed to United Prairie Ag and $$9,620.00 to concrete the area where tracks are being removed to Halliburton, with the city bearing 100 percent of the cost, subject to the bids being good until February 15, 2008. If the bids will not be good until that date, the projects will be re-bid next year. Motion carried.

Roger Lynch asked the city to pass an ordinance prohibiting the parking of vehicles on unimproved portions of yards. City Attorney Wayne R. Tate stated he would review a sample ordinance from the City of Liberal, dealing with this issue.

Lynch also expressed his opinion the city should significantly stiffen the penalties in municipal court for the operation of motor vehicles by individuals without driver’s licenses and/or insurance.

Motion by Harper, seconded by Mason, that cereal malt beverage licenses for calendar year 2008 be approved for Frontier Fuel LP at 520 E. Eleventh, Presto Convenience Store #3 at 1000 S. Main, and White’s King Co., Inc. at 113 West Sixth, all for sale in original and unopened containers and not for consumption on the premises. In favor of the motion: Councilmen Baughman, Eshbaugh, Harper, and Mason. Opposed: Councilman Gill. Motion carried.

A lease agreement, between the city and the recreation commission for the use of Lots 9 and 10, in Block 18, was presented for consideration. The city purchased the property and was reimbursed by the recreation commission. The deed to the property is in the city’s name. The agreement is necessary as a part of the lease purchase agreement between the recreation commission and the bank on the construction of a building on that property. The city attorney reported he had been asked to check on whether the recreation commission could now own property. He had not had an opportunity to research the question. Motion by Baughman to table action on the agreement. After further discussion, the motion was withdrawn.

Motion by Harper, seconded by Gill, to authorized the mayor to execute the agreement between the city and the recreation commission. In favor of the motion: Baughman, Gill, Harper, and Mason. Abstained: Eshbaugh. Motion carried.

Motion by Harper, seconded by Gill, that Resolution No. 2007-5, A RESOLUTION FINDING THAT GAAP-PRESCRIBED FINANCIAL STATEMENTS ARE NOT RELEVANT TO REQUIREMENTS OF THE CASH BASIS AND BUDGET LAWS OF KANSAS AND ARE OF NO SIGNIFICANT VALUE TO THE GOVERNING BODY OR THE GENERAL PUBLIC OF THE CITY OF HUGOTON, KANSAS, be passed. Motion carried.

City Clerk Thomas G. Hicks presented the city group’s 2008 Blue Cross and Blue Shield renewal. Rates are going to increase by 13% for single employees, employee and spouse, employee and children, and employee and dependents and increase by 3.4% for retirees and their spouses on Medicare. Motion by Harper, seconded by Gill, to accept the proposal as presented. In favor of the motion: Eshbaugh, Gill, Harper, and Mason. Opposed: Baughman. Motion carried.

Claims against the city were presented and audited. Motion by Harper, seconded by Baughman, that Appropriation Ordinances No. 1851 and 1852 be passed. Motion carried.

Bids were opened for a new pickup for the outside utilities supervisor.

Don Trentham Ford, Inc. 2008 Ford F150 $17,689.00

Riley Chevrolet-Buick, Inc. 2008 Chevrolet Silverado 1500 18,586.73

Motion by Harper, seconded by Baughman, to accept the bid of Don Trentham Ford, Inc. Motion carried.

Outside Utilities Supervisor Dean Banker reported the Prairie Addition lift station is worn out. He presented a quotation of $33,381.00 from Smith and Loveless, Inc. for a new lift station. Motion carried.

Motion by Gill, seconded by Baughman, that the meeting go into executive session in regard to personnel matters. Motion carried. Mayor Rowden called the meeting into executive session at 7:35 p.m. with the meeting to reconvene in open session at 8:05 p.m.

The meeting reconvened in open session at 8:00 p.m.

Motion by Harper, seconded by Gill, that the meeting be adjourned to December 26, 2007 at 5:15 p.m. Motion carried.