The Missouri Municipal
Review
The Official Publication of The Missouri Municipal League
May 2012
Joplin, One Year Later
2012 Public Works Issue
Missouri Securities Investment Program A Cash Management Program for School Districts, Municipalities and Other Political Subdivisions
The Missouri Securities Investment Program (“MOSIP”) is a comprehensive cash management program for school districts, municipalities, and other political subdivisions. MOSIP was created in 1991 by the Missouri School Boards Association. MOSIP offers its participants a professionally managed portfolio with competitive money market rates. MOSIP stresses “safety of principal” as the number one objective and is rated AAAm by Standard and Poor’s. Registered Representatives
William T. Sullivan, Jr. Managing Director 1-800-891-7910 x225 sullivanw@pfm.com
Maria Altomare Managing Director 1-800-891-7910 x222 altomarem@pfm.com
P.O. Box 11760 • Harrisburg, PA 17108-1760 1-877-MY-MOSIP 77 Port2012 Plaza Drive • Suite 220 • St. Louis, MO 63146 2 /West May 1-800-891-7910
Administered by: PFM Asset Management LLC Sponsored by: Missouri School Boards Association • Missouri Association of School Business Officials Missouri Association of School Administrators
This information does not represent an offer to sell or a solicitation of an offer to buy or sell any fund or other security. Investors should consider the investment objectives, risks, charges and expenses before investing in any of the Missouri Securities Investment Program’s portfolios. This and other information about the Program’s portfolios is available in the Program’s current Information Statement, which should be read carefully before investing. A copy of the Information Statement may be obtained by calling 1-877-MY-MOSIP or is available on the Program’s website at www.mosip.org. While the MOSIP Money Market Series seeks to maintain a stable net asset value of $1.00 per share and the MOSIP Term portfolio seeks to achieve a net asset value of $1.00 per share at the stated maturity, it is possible to lose money investing in the Program. An investment in the Program is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Shares of the Program’s portfolios are distributed by PFM Fund Distributors, Inc., member Financial Industry Regulatory Authority (FINRA) (www.finra.org). PFM Fund Distributors, Inc. is a wholly owned subsidiary of PFM Asset Management LLC. Member SIPC. Standard & Poor's fund ratings are based on analysis of credit quality, market price exposure, and management. According to Standard & Poor's rating criteria, the AAAm rating signifies excellent safety of invested principal and a superior capacity to maintain a $1.00 per share net asset value. should beReview understood that the rating is not a "market" www.mocities.com rating nor a recommendation to TheHowever, Missouri itMunicipal buy, hold or sell the securities.
The Missouri Municipal
Review
May 2012
VOLUME 77, NO. 3
The Official Publication of The Missouri Municipal League President
Mayor Norman McCourt Black Jack
Vice President
Councilmember Susan McVey Poplar Bluff
Immediate Past President Mayor Carson Ross Blue Springs
e MISSOURI MUNICIPAL LEAGUE BOARD OF DIRECTORS Donna Baringer, Alderman, St. Louis; Conrad Bowers, Mayor, Bridgeton; Denise Chisum, City Clerk, Lee’s Summit; Roger Haynes, Deputy City Manager, Mexico; Bill Johnson, Director of Administration, Fulton; David Kater, Mayor, Desloge; Bill Kolas, Mayor, Higginsville; Allison Light, Alderman, Harrisonville; Jan Marcason, Councilmember, Kansas City; *Ron Monnig, Councilmember, Slater; Reanne Presley, Mayor, Branson; Don Reimal, Mayor, Independence; John “Rocky” Reitmeyer, Alderman, St. Peters; Lisa Robertson, City Attorney, St. Joseph; Arthur Sharpe, Jr., Councilmember, University City; Tom Short, City Administrator, Carthage; Paul Ward, Councilmember, Kirkwood; *Gerry Welch, Mayor, Wesbster Groves; Terry Wilson, Mayor, Pleasant Hill; *Kevin Wood, Mayor, Harrisonville. *Past President
e
AFFILIATE GROUPS: Missouri City Management Association; City Clerks and Finance Officers Association; Government Finance Officers Association of Missouri; Missouri Municipal Attorneys Association; Missouri Park and Recreation Association; Missouri Chapter of the National Association of Telecommunications Officers and Advisors; Missouri Chapter of the American Public Works Association; Missouri Association of Fire Chiefs. www.mocities.com
contents 4 / Power of Partnership: Missouri's Linked Deposit Program by Missouri State Treasurer Clint Zweifel 6/ Joplin Recovering - With Help From Our Friends by Lynn Iliff Onstot 9/ Cape Girardeau Public Works: A 360-Degree Approach by Jessica Sexton 13/ School Safety Study Program: Lee's Summit by Michael Park and John Herrman 15/ City Of Peculiar Is Poised For Growth by Dawn M. O'Malley 17/ City of Sedalia: a Distinctive Economic Position by Gary Edwards 20/ Setting The Theme In Grandview by Dennis A. Randolph 22/ Meeting New Compliance Requirements And Addressing Bad Debt Effectively by John Guy Barwick 24/ Missouri's Local Technical Assistance Program
departments 28/ Professional Directory 31/ News From The Bench 32/ FAQ: Prevailing Wage 34/ Job Opportunities / 2012 Calendar of Events Laura Holloway, Editor Contributing Editors: Dan Ross and Richard Sheets Missouri Municipal Review (ISSN 0026-6647) is the official publication of the Missouri Municipal League state association of cities, towns and villages, and other municipal corporations of Missouri. Publication office is maintained at 1727 Southridge Drive, Jefferson City, MO 65109. Subscriptions: $30 per year. Single copies: $5 prepaid. Advertising rates on request. Published bi-monthly. Periodicals postage paid at Jefferson City, Missouri. Postmaster: Send form 3579 to 1727 Southridge Drive, Jefferson City, MO 65109. To contact the League Office call 573-635-9134, fax 573-635-9009 or email the League at info@mocities.com. The League’s Website address is: www.mocities.com. The Missouri Municipal Review
May 2012 / 3
The Power of partnership:
CITIES HAVE ACCESS TO LOW-INTEREST LOANS WHEN THEY PARTNER WITH LOCAL LENDERS
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s I stop and visit with community leaders throughout Missouri, we often discuss the visions they have for their towns. These conversations inevitably turn to how to finance these visions and the key is often access to capital. Sometimes that access comes through the bond market and sometimes cities just need a loan. When they need a loan, I can save them money by providing low-interest loans through the Missouri Linked Deposit Program. The Missouri Linked Deposit Program is a partnership between Missouri’s community lenders and my administration. The lender determines if you, the city, is creditworthy and takes all of the credit risk. Then I lower the loan’s interest rate – up to 30 percent. In the end, taxpayers and local communities win through interest savings. The loan program has been around since 1985, and municipalities have been eligible since I expanded the program in 2009. The response has been great. Cities have taken advantage by buying new ambulances and upgrading local sports fields. All told, we have seen nearly $2 million in loans for local municipal projects. T h e good news for local officials looking to make investments is the Missouri Linked Deposit Program is flexible. Loans may be used for a variety of reasons, including significant public projects such as sewer upgrades, road enhancements and public safety technology improvements. If you are interested in a Missouri Linked Deposit Program loan for your community project, all you need to do is get in touch with a participating lender who can help walk you through the process. I have worked hard to develop a network of 350 lender branches 4 / May 2012
by State Treasurer Clint Zweifel throughout the state, so chances are you can find a local lender easily at www. treasurer.mo.gov/LinkedDeposit. I am always excited to talk about projects, new businesses and farm expansion made possible by the Missouri Linked Deposit Program. These loans are exactly why I sought changes to the program in 2009. Communities are helping young people, protecting their citizens, and saving their taxpayers money. I encourage all cities to consider the Missouri Linked Deposit Program when they are looking at new projects. A great example is the city of Strafford. In March 2011, Strafford used a Missouri Linked Deposit Program loan to purchase a youth sport complex. The complex included four baseball fields and the City plans to make improvements over time. They will be able to hold youth league events there such as softball and baseball tournaments, bringing in visitors to the City. With this loan, Strafford is estimated to save nearly $20,000 over five years if they choose to participate in the program the full time allowed. The Missouri Linked Deposit Program also is here to help communities impacted by storms and their aftermath
in the past year. In April of 2011, I created the Harmed-Area Emergency Loan Priority (HELP) system to assist community rebuilding. HELP ensures farmers, local governments and small business owners 24-hour approvals of completed Missouri Linked Deposit Program applications. Normal loan approval time is 10 days. I determine HELP eligible coun-
The Missouri Municipal Review
State Treasurer Clint Zweifel
ties using executive orders, disaster requests, State Emergency Management Agency and Federal Emergency Management Agency information, and Agricultural Disaster Designations and Declarations. A list of HELP eligible counties is on the website. I n the end, this is an effort to save taxpayers money. I have issued $983 million in loans, impacting 16,600 farmers and jobs since January 2009. It is my sincere hope that more cities and towns in our state will take advantage of this money saving loan program as soon as possible. It is a good deal for government, Missouri’s economy and for taxpayers. It is important to remember the Missouri Linked Deposit Program is not a grant or loan guarantee program.
www.mocities.com
Since the state takes on no default risk for the underlying loan, the applicant must still qualify for the loan under the lender’s credit criteria. The maximum term for a Missouri Linked Deposit Program loan is five years, and the loan must be from a qualifying Missouri financial institution such as a bank, credit union or farm credit services office with a branch in Missouri. Municipalities, businesses, farms and individuals interested in the Missouri Linked Deposit Program can go online to www.treasurer.mo.gov/ LinkedDeposit or call 573-751-2372. A list of participating lenders also is available.
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Clint Zweifel was sworn in as Missouri’s 45th State Treasurer on Jan. 12, 2009. For more information, contact the office at 573-751-8333 or visit www.treasurer.mo.gov.
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May 2012 / 5
JOPLIN RECOVERING – WITH HELP FROM OUR FRIENDS by Lynn Iliff Onstot
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traveler pulling off the interstate at Joplin for gas, food or lodging will not immediately see evidence of the enormous destruction caused by an EF5 tornado May 22, 2011. The commercial district is lined with chain hotels, restaurants and convenience stores, as well as a sprinkle of local eateries, shops and hangouts. However, curious visitors can venture north on Range Line to 20th Street or Main to 26th and see that evidence of the storm’s destructive power is still visible. Looking east and west, open lots scattered with houses, businesses and taller structures in all stages of construction dot the bare landscape. Most years, May in Joplin is fragrant with beautiful irises, the city flower, as well as tulips, daffodils and hundreds of budding trees. This month, one year after the EF-5 tornado that stripped nearly an eight-mile long, three-quarter mile-wide swath out of the middle of the City – starting on the western boundary and moving past Joplin’s city limits into the city of Duquesne and even further into Jasper County – the City is seeing new growth, but it’s a different kind. This year, Joplin’s spring season is budding new homes, new businesses and new trees with resilience and determination serving as the nourishment to keep the growth going along the path of the 2011 tornado. In less than one year, Joplin citizens are replanting their roots with new homes where their previous one stood or possibly settling into a new area of Joplin. At the end of March, the City’s building department had issued 4,102 building permits. City officials have been watching that number closely looking for evidence of the community’s rebirth. “Following the tornado and realizing the incredible amount of damage our City sustained, we were concerned,” said City Manager Mark Rohr. “Our community and our residents had endured a horrible tragedy and we knew we needed to be a large part of the 6 / May 2012
At Cunningham Park, a large-scale bracelet imprinted with The Miracle of the Human Spirit serves as a centerpiece of the area recognizing the volunteers who have been instrumental in the cleanup and recovery efforts of Joplin.
process to help them heal, recover and rebuild in their hometown. And we’ve been working very hard to do that.” More than 500 agencies assisted Joplin’s fire and police departments in the search and rescue efforts. The City executed six full sweeps of the disaster area; the last three were executed with search animals. Sadly, 161 lives were lost due to the storm. Immediately following the tornado, the City opened its Emergency Operations Center with all departments represented, working together to serve the residents and manage the incredible outpouring of donations, volunteers and assistance. With the assistance of AmeriCorps St. Louis to manage the volunteer efforts, more than 126,000 persons have come to Joplin and Duquesne to work, clean, cook and provide help; serving in numerous roles for any was identified need within the community. “We have wit nessed a surg e of kindness and giving from people throughout the United States, as well as other countries,” said Rohr. “Our residents and their family and friends, our faith communities – all have responded to this disaster. It is something we’ve The Missouri Municipal Review
entitled ‘The Miracle of the Human Spirit’.” With the amount of destruction estimated at 3 million cubic yards of debris, clean-up and debris management were the first priorities. To help support a faster community recovery in the hardest – hit areas, President Barack Obama authorized a special initiative known as Expedited Debris Removal, (E.D.R.). This initiative allowed government-funded contractors to remove debris from private property that had sustained extensive or catastrophic damage, and offered a 90 percent federal match to a 10 percent local and state match for costs incurred. The Federal Emergency Management Agency (FEMA) assigned the U.S. Army Corps of Engineers to execute the debris removal operations. The Missouri National Guard provided state oversight to the process. In addition, Missouri Governor Nixon announced that the state would pick up the 10 percent match. Thus, the three levels of government partnered in working toward an efficient operation of clearing the disaster area and rebuilding Joplin. With assistance from FEMA and the State Emergency Management www.mocities.com
Agency (SEMA), along with receiving credit for donated resources, including the thousands of hours worked by volunteers, the City will not face a financial disaster as first anticipated. “The coverage of our debris costs, along with the offset credit from donated resources will help ensure little or no cost to the City after all of the accounting for this disaster is complete,” said City Manager Mark Rohr. “This is beneficial to the City and our citizens, when the entire cost of this disaster could have dealt a serious blow to the financial well-being of the City. We again thank the volunteers, and our federal and state partners in this disaster recovery.” As residents continue putting their lives back together, the businesses and commercial industry have persevered with the same strength and determination. Approximately 530 businesses were affected by the tornado, including large retailers such as Wal-Mart, Home Depot, Payless Shoes, Dillon’s Groceries; national restaurant franchises such as Chick-Fil-A, Pizza Hut, McDonald’s, Taco Bell; and many local businesses. In only 10 months’ time, the Joplin Area Chamber of Commerce has received notification from nearly all businesses that they will be reopening or relocating their business. Many retailers had stores rebuilt and open prior to the holiday season, while
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others are taking the opportunity to develop larger stores, parking lots and/ or realign their services to better fit the community’s needs. St. John’s Regional Medical Center (now Mercy Joplin) took a direct hit in the storm and has purchased a 100-acre site along Joplin’s southern boundary to rebuild their medical community. “Some footprints were rebuilt as they were,” said Troy Bolander, planning and community development manager for the City. “Others have relocated, such as Mercy. With this relocation to a lesser-developed area, it would not be unusual for other businesses to open in the area and create another commercial district for Joplin.” As the community faces redevelopment of literally one-third of their city, leaders and citizens have joined together to form the Community Advisory Recovery Team (CART) to provide all a voice and opportunity to share their ideas for Joplin’s future. “CART was developed to get input from our citizens and to put ideas into action,” said Jane Cage, Joplin business leader and CART chairperson. “With their ideas, a plan for recovery has been developed. We will continue to engage our citizens throughout this process. This is their community plan.” Citizens’ participation in the CART process has already been recog-
nized during the City’s recent review of its Comprehensive Plan. In the CART process, citizens indicated their hopes to see more mixed-use, multi-function neighborhoods built in the disaster area. On March 19, the Joplin City Council passed new overlay districts that will allow Joplin to build these requested neighborhoods. “From the onset of the storm and continuing through our rebuilding, the City has been blessed with the generosity of tens of thousands of strangers, the strong support of our state and nation, and the resilient and determined character of our people,” said Rohr. “Despite tremendous loss, we also have found tremendous faith and deep and abiding gratitude to the whole community of volunteers, professionals and agencies that have come to our assistance from the first moments after the tornado. And we will continue to work together and stay the course to rebuild Joplin.”
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May 2012 / 7
Lynn Iliff Onstot has served as the Public Information Officer for the city of Joplin since 2003. She has worked in marketing and public relations departments at Freeman Health Services and Mercy Joplin (formerly St. John’s Regional Medical Center). For more informatio on the city of Joplin, visit www.joplinmo.org.
One-Year Anniversary: A Day of Unity An invitation from Joplin City Manager Mark Rohr Planning continues for the one-year anniversary of the May 22, 2011, tornado, entitled “A Day of Unity.” All affected by the storm and those who have played a part in Joplin and Duquesne’s recovery are invited to participate.
Joplin City Manager Mark Rohr
“We know there are many who have memories from this day, as well as the months following as we began putting our lives and our community back together,” said City Manager Mark Rohr. “That is why we’re planning a day with numerous activities in various locations. Residents, volunteers, business community members and our faith-based organizations all have been extremely important from the moments following the storm throughout today in our recovery efforts. We encourage all to participate in the Day of Unity activities in the manner they find most appropriate for them. Staying together as one has been significant in our success in recovery efforts, and it will continue to provide benefits as we work together and finish the rebuilding process for a stronger and better community.” www.joplintornadoanniversary.com.
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Many events and activities are taking place in Joplin throughout the month of May to honor all in the community who have persevered in the rebuilding and recovery process. Visit the Day of Unity website at www.joplintornadoanniversary.com to learn more.
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Cape Girardeau Public Works: A 360-Degree Approach by Jessica Sexton
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unning in the background of Cape Girardeau resident’s daily lives is a 360-degree approach to improving the quality of services offered by the city of Cape Girardeau Public Works Department through recycling efforts, green initiatives and sustainability. Reusing motor oil from fleet vehicles, recent upgrades to outdoor lighting, solid waste improvements, and the city water treatment system restructuring have offered unique opportunities to lead by example through innovative technologies. Cape Girardeau is conserving energy, the environment and city funds in the process.
Recycling
The City expanded solid waste services to automated single-stream recycling and trash pickup in May 2010. Single-stream recycling is a sortfree system, allowing residents to recycle more quickly. In the program’s beginning, residents were given a 64-gallon trash cart and a larger, 96-gallon recycling cart to encourage participation. Citywide recycling nearly doubled using the single-stream system. “When we went to the single stream, we really saw the numbers jump,” said Solid Waste Superintendent Michael Tripp. In 2009, solid waste crews averaged 2,760 household stops weekly. Once automated trash and recycling services were introduced, the average stops jumped to more than 4,200 the following year. Recycling is consistently up 55 percent in Cape Girardeau. In addition to recycling, crews pick up more than 269,000 pounds of solid waste per week that is sent to a landfill. “The biggest thing is to take trash out of the landfill,” Tripp said. “Just think of how many tons we’ve already kept out of the landfill.”
As participation increases citywide, so does the tons of waste public works can ship out for recycling. More than 1,700 tons of recyclables were sent out in 2010. In 2011, nearly 2,200 tons were sent out for recycling. “Tossing materials in landfills is no longer cheaper because of fuel prices, landfill regulations and shortage of space,” said Pam Sander, recently retired public works administrative officer. With the single-stream system, residents place the following items directly in the recycling cart: magazines, corrugated cardboard, chip boards, soda bottles, cereal boxes, frozen pizza boxes, newspapers, catalogs, junk mail, paper, aluminum, steel cans, tin cans, household plastic containers, plastic shopping bags and newspaper sleeves. Styrofoam and paper food boxes are not accepted. Styrofoam and some paper food containers not properly cleaned can pose potential contamination problems when recycled. “It’s not something that is on the list of acceptables because
the majority of people don’t check them close enough to realize there is food contamination,” said Sander. Glass food or beverage containers can be dropped off at several citywide locations including the public work's recycling drop off, any of the four fire stations, Osage Centre and A.C. Brase Arena. As the recycling numbers increase, public works continues to further automate the solid waste system. With nearly 170 tons of recyclables collected every month, a new baler machine was added. The baler crushes multiple items into large rectangles and binds them with wire. Finished bales are shipped to St. Louis for processing. In addition to weekly recycling pick up, citizen customers receive one, free yearly “special items” pickup from public works. The special pickup helps remove bulky items, like leftover appliances and basement items.
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success in Cape Girardeau spotlighted the additional needs of electronics recycling and household hazardous waste collection. In November 2010, the city of Cape Girardeau partnered with Midwest Recycling Center (MRC) to provide electronics recycling at the recycling center. In the first week of this program, MRC took in 1,600 pounds of miscellaneous electronics, 500 pounds of dehumidifiers, microwaves, minirefrigerators, televisions and computer monitors. Most electronics can be recycled free of charge. Older tube and projection televisions, and computer monitors require a small handling fee. These items contain harmful compounds such as lead, mercury and phosphorus dust making the older TVs and monitors more costly to recycle.
Hazardous Waste Collection
Leftover electronics are not the only common household clutter being addressed by public works. The City sponsors a household hazardous waste collection day for all solid waste and recycling customers every few years as grant funding allows. The most recent hazardous waste collection took place in October 2011. In one day, more than 360 vehicles brought in 42,625 pounds of hazardous waste to the collection site. Motor oil was collected only during the hazardous waste collection day. However, residents can now drop off used motor oil at public works where it will be used along with used fleet vehicle oil for other purposes.
Oil For Heating Buildings
A routine oil change on the City’s fleet vehicles or in resident’s driveways
Cape Girardeau’s wastewater treatment plant is located next to the Mississippi River. The City recently passed a pair of ballot issues to fund a new plant in order to keep pace with the Missouri Department of Natural Resources' regulations.
now enables Cape Girardeau to make a smaller environmental impact. Oil is collected and burned for heating fuel at the public works and recycling center buildings. “For smaller [fleet] vehicles such as pickup trucks we can collect as much as five quarts per vehicle, or up to 30 quarts for larger vehicles such as dump trucks,” says Public Works Fleet Coordinator Mike Schott. Public works staff collects used motor oil from every city department that is stored in two, 500 and 1,000-gallon storage tanks. A fuel line runs from the tanks to a nearby furnace, filtering the oil before it is burned and converted to energy. Waste oil furnaces have been added to the public works department over the last five years. The first furnace, located in the recycling center, has been used since December 2007. Two furnaces were added to the fleet shop in December 2009.
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The City has burned nearly 7,000 gallons of waste oil for heating, all of which came from fleet vehicle maintenance, according to Schott. In February 2012, the City began collecting used motor oil from citizens in addition to oil collected from more than 1,000 city-owned vehicles. “So far we have collected about 40 gallons from the general public,” said Schott. “We expect this number to increase as the public becomes more educated and aware of this opportunity to dispose of used motor oil.”
River To Well Water
It’s big, it’s muddy, and until recently, the Mississippi River had been used as Cape Girardeau’s primary drinking water source. The City is completing the change from river drinking water to well water. “People go down to the river and say, ‘Ew, we drink that’?” said Kevin Priester, water systems manager for Al-
As water and wastewater problems grow, more and more of our local communities are realizing that they may be up that famous creek: capital improvement projects technical challenges shortages of licensed personnel government regulations revenue shortfalls.
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liance Water Resources, the City’s water system operations contractor. River water has long been treated in Cape Girardeau for drinking use with more than a dozen chemicals to remove silt, bacteria and other environmental toxins. The City will save several hundred thousand dollars yearly on chemicals no longer needed for treating drinking water from the mighty Mississippi. More than 700,000 pounds of polyaluminum chloride were used to remove silt, alone costing more than $150,000 per year. Changing water sources also provides softer water for residents with fewer calcium deposits, saving on potential line break maintenance costs. “This is a major step in the right direction for the future of the city of Cape,” said Public Works Director Tim Gramling. “By the time we’re through, people are really going to notice.” Switching from river to well water in Cape Girardeau is not a new concept. In 1996, voters approved a bond issue and sales tax to fund watertreatment facility upgrades, and sourcing 10 alluvial wells to boost capacity. The expansion was needed to meet
increasing demands, raising average capacity from 4.5 million gallons to the current 7.6 million gallons per day. Adding wells was the first step towards changing the City’s drinking water source. Once facility upgrades were complete in 2004 and the wells began to operate, they never quite produced enough water to provide all of Cape Girardeau’s water supply. Public works and utility contractor Alliance Water Resources say the river to well water ratio at the time was never better than 50-50. Other well options were explored, and four new alluvial well locations were found. Ground water in a new spot near the Mississippi River Diversion Channel comes from the river, but an abundance of sand and gravel provides a natural filter as opposed to chemical treatment. Well testing found a more than adequate safe water yield of nearly 250 million gallons daily. The new wells took three years to complete. In 2010, nearly seven miles of new pipeline was built to bring water from the newest alluvial wells to the City’s treatment facility, allowing Cape Girardeau to begin fully tran-
sitioning its drinking water source. The public works department and Alliance Water Resources’ staff has tested one of the four wells at any given time over the last year. The new wells each pump 1,800 gallons per minute and can withstand high pumping rates of 2,700 gallons per minute. Approximately 70 percent of Cape Girardeau’s drinking water was well water during testing stages. “That’s pretty good with just one well,” said Gramling. “The most we were at with 10 wells was 50 percent and we’re at 70 percent with just one well.” Cape Girardeau has more than 17,000 residential water customers. An event on April 5 marked the official change from river to well water. Coupled with plans to build a new wastewater treatment plant by 2014 meeting Missouri Department of Natural Resources’ standards, residents will begin seeing big changes coming to fruition. “We’re not looking to stop here,” said Gramling. “When talking about the future of Cape’s water supply, we’re set with these new wells well into the future.”
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From water wells to street lights, sustainability is forefront in the City’s planning. In 2011, 104 new energy-efficient LED streetlights were installed in Cape Girardeau along North Kingshighway and Highway 74 near the Bill Emerson Memorial Bridge, replacing the existing high-pressure sodium streetlights. The upgrade was made possible by the U.S. Department of Energy’s Energy Efficiency and Conservation Block Grant of $190,000. The new LED streetlights need only to be changed every 15 years, saving time and money. High-pressure sodium light changes previously kept maintenance crews busy, accruing overtime while searching for burnedout bulbs. Public works staff routinely receives calls when the high-pressure lights expire in neighborhoods across the City. Using longer-lasting LED lights also reduces potential safety hazards when frequently changing bulbs near busy roadways.
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The City chose Dialight StreetSense LED streetlights. Previously, Dialight LEDs had been used for traffic signals in 21 Cape Girardeau intersections. “The change out to the Dialight units was extremely fast and easy for our crews,” said Geoff Dial, special projects coordinator with public works. “I personally witnessed them replace one in less than 10 minutes from the time they stepped into the bucket truck to getting back onto the ground.” The newly-installed streetlight units represent 25 percent of Cape Girardeau’s total street lighting. Dial estimates that the new LED units will reduce the City’s energy consumption from 160,000 kilowatt hours to less than 90,000 kilowatt hours, which could help offset future energy cost increases. “We are continually reviewing ways to conserve energy and resources throughout the City,” said Dial. “The LED streetlights offered us the energy savings and long life we require to ensure a safer and more hospitable en-
vironment for residents and visitors.” Jessica Sexton is the public information specialist for the city of Cape Girardeau. Sexton is the promotions committee chairperson for Old Town Cape, supporting Cape Girardeau’s historic downtown district. She also volunteers with the Alzheimer’s Association and United Way. For more information visit cityofcape.org, facebook. com/cityofcape, and follow us @cityofcape on Twitter.
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School Safety Study Program: Lee's Summit by Michael Park and John Herrman
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he federal Safe Routes to School (SRTS) Program intends to promote the welfare of America’s youth by “empowering communities to make walking and biking to school a safe and routine activity.” SRTS federal funding is available for various programs and projects that promote safer and healthier accommodations for schoolchildren. The city of Lee’s Summit, Mo., made several applications for SRTS funding to address traffic, pedestrian and bike issues related to school areas. While unsuccessful in receiving SRTS funds, the City's public works department proceeded with its own initiative, a School Safety Study Program, to address similar goals. The School Safety Study Program was developed by Lee’s Summit Public Works to systematically review and update school-area traffic control for each public and private elementary and middle school throughout the City. The purpose of this program is to improve traffic operations, pedestrian/bicycle safety, and foster non-motorized schoolchild activity to and from school and within the school campus itself. A comprehensive evaluation of all signals, signs, pavement markings, bus and vehicle operations were conducted by staff to provide consistent and appropriate traffic controls in conformance with adopted standards. In addition, safe routes to/from school were identified for schoolchildren that walk or bike. During program implementation, the citizens of Lee’s Summit passed a $2.5 million bond issue for sidewalk improvements. Sidewalk gap and repair improvements funded by this bond issue were strategically prioritized around the needs of schoolchildren. School studies were critical in identifying and prioritizing necessary sidewalk improvements. The studies also help identify improvement needs for future federal grant/SRTS applications. Twenty-two school safety studies were conducted over a four-year period with recommendations applied shortly after the completion of each study. The www.mocities.com
proper way to evaluate school area traffic control and establish safe routes to school is to perform a professional engineering study as described in the Manual on Uniform Traffic Control Devices (MUTCD). The MUTCD is federal law. It is accepted nationally as the manual that provides standards, guidance, uniformity, safety, options and support provisions for all traffic control devices. As such, it has been adopted by the state of Missouri and the city of Lee’s Summit.
Establish Existing Conditions
City Staff collected social, environmental and traffic data for each site considering not only compliance with the MUTCD, but other school operations and accessibility. For each study, observations were made on multiple school days representing typical conditions when weather was favorable for walking and biking. Operational observations included parent/child drop-off and pick-up, bus routing, sight distance, circulation, congestion, on-street and off-street parking activity, crossing guard presence and performance, and schoolchild walking/ biking routes. Other data collected included: • Roadway Characteristics • Street Connectivity • Street Classification/Function (e.g. Arterial, Collector, Local) • Adjacent Land Use • Sidewalks/Trails • Obstacles/Barriers/Hazards Existing traffic control devices (signs, traffic/pedestrian signals and pavement markings) were inventoried surrounding each school and within the school campus. Traffic volume and speed were measured along streets in the school vicinity. Data was collected to ascertain average daily traffic conditions before, during and after school. The traffic volume and travel speed on each street were especially important to determine if any safety measures were necessary where schoolchildren likely crossed the street.
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This data was also used to review the impact and need of reduced school speed zones. Pedestrian and bicycle counts were collected and routes mapped. In addition to current conditions, all reported crashes near the school were analyzed to determine if any pattern and/ or safety concerns exist that could be mitigated or improved. Staff worked with principals and faculty from each school as well as district administrators and transportation officials to identify unique conditions, policies, planned improvements/site changes, events, etc.
Transportation Analysis
School walking/biking routes should consider existing traffic control devices, the surrounding area, existing travel patterns, and sidewalks/trails near the school. School walking/biking routes were identified in the area around each school connecting to the City’s larger sidewalk and trail network within residential areas. Recommendations were provided regarding the location, equipment and training of crossing guards as required by the MUTCD. Traffic controls for intersections, vehicle speed and pedestrian crossings were evaluated surrounding each school and along bike/ walk routes. Most walking/biking routes require schoolchildren to cross an intersection(s) to get to/from their destination/origin. As a result, it is imperative that the form of intersection control be proper for each location. The school safety studies addressed intersection control compliance for intersections near the vicinity of the schools for all modes and abilities of transportation; pedestrian, bicycle, bus and vehicular traffic. All reduced school speed zones, where necessary to protect schoolchild street crossings at an uncontrolled location, were posted at 20 mph. Reduced school speed zones were previously set at 25, 30 and 35 mph. Studies have shown the relationship between vehicle speed and resulting pedestrian injury are inversely related, with a significant benefit realized
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at 20 mph as opposed to 25 mph and higher. The most effective way to deploy a reduced school speed zone is with signage and flashing beacons that operate during school arrival and dismissal. The recommended minimum and maximum length of a reduced school speed zone is defined in the MUTCD. Focusing the speed zone near the street crossing location and/ or the school grounds will be perceived by drivers as more reasonable that should encourage voluntary compliance. Several reduced school speed zones were installed, updated or eliminated. The establishment and presence of reduced school speed zones are now consistent throughout the City. All reduced school speed zones in Lee’s Summit now conform to these safety conditions and have solar-powered flashing lights. Signal control may be needed where there are not enough adequate gaps in the vehicular traffic stream for schoolchildren to safely cross the street. In addition, there must be a substantial presence of schoolchild crossings that exist with no convenient alternative, and other measures have failed to adequately address the issue. In addition to regulatory traffic controls, school advance warning signs are permitted in accordance with the MUTCD. These signs alert drivers that they are approaching a school area. While optional, city policy requires such signing adjacent to all elementary and middle schools. All signs and markings were provided and updated to meet current standards with uniform and consistent application throughout the City. Operational deficiencies were noted regarding on-street parking activity. Drivers were observed stopping within or adjacent to crosswalks. Posted parking restrictions were not obeyed by all drivers, as some stopped in areas designated for vans and busses. These restrictions were clarified and signed appropriately. Safe visibility of pedestrians and crosswalks can be improved through maintenance and enforcement of parking restrictions. School campus bus/parent routing procedures were reviewed. Recommendations to improve these procedures included staggered bus schedules, double stacked bus/parent lineups, and optimization of school parking lots to increase efficiency, safety and minimize vehicle queuing on adjacent streets.
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Study Documentation
Due to the variable nature of traffic, pedestrians and campus conditions, each school study was unique and individually documented. However, several common recommendations and comments were made for each school to implement. Adult crossing guards should be present at arrival and dismissal to help schoolchildren at adjacent crosswalks. According to the MUTCD, adult crossing guards should wear retroreflective clothing and be equipped with a stop paddle. Each school needs to educate parents about proper pick-up and drop-off procedures. Specifically, parents need to be directed not to stop within or adjacent to crosswalks. It should also be stressed that parents should not stop in traffic to drop-off students, but rather pull over to the right-hand side of the street. In order for any school traffic safety plan to work, it requires the cooperation of school staff, students, parents and law enforcement personnel. Students and parents should be educated and reminded about proper operations and recommended safe school walking/ biking routes. Periodic enforcement is also recommended to promote regulation compliance. More detailed recommendations specific to each school, such as sidewalk construction, fence installation, parking restriction and signing were reported to the school principal, public works department, and administrative divisions of the City and applicable school district for implementation in a written report. The City provided all of the recommended improvements that lie within the City right-of-way. Any suggested improvements to the school campus remain available for the schools to consider. These studies were completed as part of a cyclical program and will be subject to review in future cycles of implementation.
Keys To Success: • •
• • • •
Open communication between city staff and school personnel. Have personal knowledge of existing conditions surrounding each school and recognize the schools unique environment. Apply consistent traffic controls in conformance with accepted standards. Establish safe routes to school and maps of safe walk/bike routes for schools to use. Use safe routes to school to prioritize safety improvements and education. Clearly document and report the analysis and improvement recommendations.
Summary Of Benefits: • •
•
•
A guide for a typical school safety study. School safety study improvements can result in safer, more efficient school operations. School safety studies help prioritize pedestrian and bicycle needs and better position a community to compete for federal SRTS funding. Safe Routes to School maps can foster schoolchild walking/ biking activity.
Michael Park, PE, PTOE, is the city traffic engineer for the City of Lee’s Summit, MO. John (Phil) Herrman is a staff engineer for the city of Lee’s Summit, MO. For more information, contact the office of the City Traffic Engineer at 816969-1800 or visit www.cityofls.net, Public Works.
Helpful resources: • • •
http://www.modot.org/safety/SafeRoutestoSchool.htm (Missouri Safe Routes to School Program) http://cityofls.net/Public-Works/Traffic-Transit/General-Information.aspx (LSMO Public Works Traffic Info.) http://mutcd.fhwa.dot.gov/htm/2009/part7/part7_toc.htm (MUTCD Traffic Control for School Areas)
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CITY of Peculiar is poised for Growth by Dawn M. O'Malley
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onveniently located 25 the City’s sanitary sewer system and to miles south of the hustle provide continued maintenance. and bustle of urban The Midwestern engineering firm living, offering the quiet George Butler Associates, Inc., (GBA) and relaxed atmosphere of a small was chosen through a qualificationstown environment, sits the city of based selection process to assist the Peculiar. Founded in 1868, Peculiar city of Peculiar with the design and was incorporated in 1953 to become implementation of capacity improvements a Fourth Class city that is governed to the sanitary sewer system and to by a mayor and board of aldermen. conduct a more comprehensive sanitary Bolstered by visionary leadership and sewer evaluation study (SSES). a proactive operations and maintenance staff, the City recently undertook a About The City’s Collections comprehensive study of its sanitary System sewer collection system in order to Approximately 173,600 feet of be poised to capitalize on the next gravity sewer, 856 manholes, and 22,951 development wave. With easy access linear feet of force main serve as the from U.S. Highway 71 and with an sanitary collection system. A total of 13 abundance of undeveloped land, this pump stations flow from their respective valuable city resource will entice service areas to the City’s 1.5 millions future generations of commercial and of gallons a day (MGD) wastewater residential developers. treatment plant (WWTP). The WWTP is T h e c o n v e r s a t i o n t o b e t t e r located along U.S. 71 Highway and on the understand the City’s wastewater southeast corner of the City. The WWTP infrastructure assets, and to prepare for future population expansion began during a routine municipal sanitary sewer overflow (SSO) compliance inspection performed by the Missouri Department of Natural Resources (DNR). Although no major flaws were identified, Peculiar recognized the importance of promoting long-term planning and ongoing management of its sanitary sewer system to encourage optimal performance and to minimize the potential for SSO events making development more attractive. In 2011, during the depths of the Great Recession and after years spent wrestling with the sewer issue, Peculiar increased each sewer customer’s bill an additional $12 per month in order to fund the $3.125 million Flow meter installation. project improvements for www.mocities.com
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discharges to the east branch of the Grand River. Peculiar is in the Grand River’s watershed. This plant has a reported hydraulic capacity of 3.0 MGD and treats an average of 0.40 MGD. Interestingly, much of the system is less than 15 years old and was constructed using modern materials such as PVC pipe and precast manholes. However, according to City Engineer Carl Brooks, although the system is tight and the lines were designed to meet DNR’s minimum specifications, a small percentage of the lines were not designed large enough to handle the maximum flow, which could eventually cause problems when the City begins to grow again. In order for GBA to fully understand the City’s project goals, a team met with city officials to kickoff the project. The City expressed that the goals of the study were to: • Provide the City a map of the sanitary system with the structures numbered in a GIS ARC/view format. • Gather and populate data for critical main interceptors in the City’s GIS system. • Conduct rainfall and flow monitoring to identify areas in the sewer collection with excessive inflow and infiltration (I/I). • Conduct a capacity analysis for the existing system’s interceptors, and provide recommendations for capacity improvements. • D e t e r m i n e t h e a b i l i t y of the existing main interceptors to carry future flows from growth and development, and make recommendations for capacity improvements. • Develop a recommendation for repairs to the system that would reduce I/I from the public and private sectors, and renew the collection system’s overall condition.
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The GIS map shows 856 sanitary manholes; 173,000 linear feet of 8-inch diameter to 18-inch diameter gravity sewers; 22,951 linear feet of 4-inch diameter to 12-inch diameter force mains; and 13 sewage pumping stations.
GBA determined the following strategies should be implemented to accomplish those goals:
Flow And Rainfall Monitoring And Data Analysis
A total of five monitoring sites and a single rain gauge site were positioned to capture flow rates from the main interceptors and the majority of flow to the WWTP during dry and wet weather conditions. The results of the flow monitoring revealed that only portions of the collection system had an excessive leakage rate.
GIS Sewer Mapping
An interesting outcome from the GIS mapping was the discovery that the City’s sanitary sewer system was significantly larger than the 500 manholes and 116,160 linear feet that was initially anticipated. It also was discovered that record drawings were not available for the entire sanitary system, and that only 23 percent of the gravity sewers were made of vitrified clay pipe. Due to the rapid system expansion, a large majority of the system is made with PVC pipe and precast concrete manholes. The GIS map shows 856 sanitary manholes; 173,000 linear feet of 8-inch diameter to 18-inch diameter gravity sewers; 22,951 linear feet of 4-inch diameter to 12-inch diameter force mains; and 13 sewage pumping stations.
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Field And Office Investigations
In 2011, GBA performed numerous types of field investigations of the City’s sanitary sewer system, and analyzed the as-built sewer records to determine the hydraulic capacity of the main interceptors. The investigations identified actual and potential inflow and infiltration (I/I) sources in the public and the private sector’s sewer systems. The field work included: surface manhole inspections, smoke testing, dyed-water testing, internal and external building inspections, and closed circuit television inspection. The work was wellpublicized to those affected by the testing. The citizens received an informational door hanger that detailed the type of work with dates and times the GBA team would be in the neighborhood. Also, Mayor Ernie Jungmeyer promoted the work in the City’s newsletter. Emergency responders were notified daily during smoke testing. The most common source for I/I on the public system was a defective seal between the cast iron frame, cover and manhole. The most common source for I/I on the private system was uncapped cleanouts.
Improvement Recommendations
Based upon the flow and rain monitoring data, the GIS sewer mapping and field investigations and prioritization list of capacity improvements was developed. Those upgrades ranged
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from public and private sector system improvements to improving capacity in the interceptor sewer system. Other suggested improvements included: increasing maintenance staffing, development of a long-term cleaning and inspection program, and educating the citizens about the importance of keeping ground and rainwater out of the sanitary sewer system.
Where We Are Today
In early 2012, construction began on improvements to Peculiar’s two major pumping stations, and peak flow capacity enhancements to the wastewater treatment facility. Later this summer, 6,400 feet of 18-inch diameter force main will be added to the City’s east lift station, greatly enhancing its ability to handle peak flows. In addition, a mile of new gravity sewer will be built. This project will remove from service a small neighborhood lift station. By being proactive in understanding and tackling phased upgrades to its sanitary sewer system, the city of peculiar has established itself as progressive and responsive to the needs of its current and future citizens, as well as good stewards of the taxpayers’ money.
With more than 20 years of professional experience, Dawn M. O’Malley is an accomplished marketing and communications professional with GBA. She works with the firm’s Water Environment group and is based in the Lenexa, Kansas corporate headquarters.
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City Profile
City of SEDALIA: A DISTINCTIVE ECONOMIC POSITION
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by Gary Edwards
edalia, a municipality of 21,387, is a unique city. While many other cities across the United States are seeing declining or static sales tax growth, Sedalia will end the fiscal year with an approximately 11 percent increase over the previous year. Last year, Sedalia saw approximately a 6 percent increase over the year prior. Sales tax revenues are one of the indicators of how the local economy is performing. An analysis of why this important revenue source continues to be strong reveals Sedalia’s distinctive economic position.
actually increasing its retail pull numbers in the past five years. Sedalia’s central location between the Kansas City and Columbia/Jefferson City markets helps contribute to the strong pull numbers. Unfortunately, the high fuel prices also are a factor. People will tend to stay in town and the region when it becomes too expensive to travel long distances. Dave Phillips, president of the Sedalia Chamber of Commerce, was recently quoted as saying that Pettis County and Sedalia have a unique position in Missouri in that both are somewhat isolated, requiring regional residents to shop locally.
Retail Pull Factors
Effective Developers
First, let’s look at the Countyby-County Retail Pull Factor numbers recently released by the Missouri Economic Research and Information Center (MERIC). Pettis County, the county in which Sedalia is located, has a retail trade pull factor of 1.13. That is the highest number in the region. That means not only are the County and Sedalia residents shopping locally, but we are pulling retail customers from a large portion of the surrounding area. Also, Pettis, with a population of 42,201, was one of only 23 counties across the state
Sedalia has done an effective job of providing many retail opportunities to local and regional shoppers. In addition to a high number of locally owned stores, there also are many retail chains and big box stores that have located in town. New Panera Bread and Freddy’s restaurants are under construction. A large Dairy Queen Grill and Chill should open in several weeks. Remarking on local retail efforts, Dianne Simon, property manager for Thompson Hills Investment Corp., commented to the local newspaper that
one of the biggest reasons Panera Bread and Freddy’s decided to build in Sedalia is because of our retail growth. Sedalia is home to some very astute retail and real estate developers who have brought numerous successful establishments into the community. Additionally, the City recently met with these various organizations and individuals to explain that because Sedalia frequently is required to be involved in different aspects of the retail process, the City will begin playing a more active partnership role. We have made it clear we will not compete against local developers. Our goal is to make sure anyone showing an interest in setting up a retail shop in Sedalia, will be given the opportunity to hear the City’s economic story.
The Missouri State Fair
Sedalia is home to the Missouri State Fair. This institution has had a significant impact on our economy for the past 111 years. The annual August event brings in hundreds of thousands of visitors to the community. The attendance high water mark had been set in 2009, with 340,000 visitors. But that record was broken in the summer of 2011 with 343,397 attendees. Additionally, within the past 10 to 20 years, the State Fairgrounds have started
Ohio Street in Sedalia under construction (left) and after completion (right). This improvement was part of the Downtown Streetscape project, intended to strengthen Sedalia's downtown as an ecomomic base.
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May 2012 / 17
The Missouri State Fair has been an important and stable economic source for Sedalia for more than 100 years. During the past several years, it has become an even stronger sales tax generator by holding events throughout the year.
attracting events, such as livestock shows and other activities throughout the year. No longer does the Fairgrounds remain vacant for 354 days out of the year. For example, Gov. Jay Nixon announced in 2011 that the Missouri State Fairgrounds has been selected to host the 40th Annual BMW Motorcycle Owners of America Rally in July 2012. It is expected to draw nearly 10,000 motorcycle enthusiasts. The visitors from these events will shop locally and contribute to the sales tax income.
Sales Tax and Retail Succeed When There Are Local Jobs
There cannot be a strong retail and sales tax base without the local jobs to support them. In a recent Standard and Poor’s credit rating analysis of Sedalia, it was pointed out that the City’s unemployment rate is generally lower than the state of Missouri’s rate. It is estimated that about 25 percent of the local economy is the result of manufacturing jobs. Importantly, the local industries are numerous and quite diverse, providing a level of protection to the local economy that you wouldn’t find in a “one- or twoindustry city.” In Sedalia, many of the jobs often are created by a very effective economic development office. Its Executive Director Linda Christle, was the recipient of the Director’s Career Service in Economic Development Award during the 2011 Governor’s Conference on Economic Development. Her organization is not a part of city government, but frequently partners with us on various projects. Although new industries are aggressively
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pursued when the opportunities present themselves, Ms. Christle’s philosophy is to place a significant amount of emphasis on servicing Sedalia’s existing manufacturing companies. Probably as a result, several of these firms have expanded their local operations creating a large number of new jobs. For example, on March 5, GardnerDenver Machinery, Inc., announced the closure of IPGA operations at the company’s Quincy, Ill., facility and the addition of those operations in Sedalia. Another expansion example occurred last November when the WireCo WorldGroup, Inc., the world’s leading producer of wire products and electromechanical cable, announced a large expansion of their Sedalia distribution center. Between January 2006 and June 30 of last year, there have been 27 expansions, new divisions and/or new companies with 1,062 new jobs created with an average wage of $39,827.29 and cumulative total wages of $42,296,578.12. Investments by these companies total $133,784,949.94. Some of the larger companies include: • Pro-Energy Services, producing power plants for worldwide customers on a 97-acre campus. • Interstate Studios, producing printed materials nationally, including yearbooks for hundreds of high schools. • Waterloo Industrie,s producing toolboxes for major national department stores. • The 124-acre Hayes-Lemmerz International Sedalia facility, the world’s largest producer The Missouri Municipal Review
of automotive and commercial highway steel and aluminum wheels. These are just a handful of companies, with employee numbers ranging in size from more than 1,000 to several hundred that have expanded or are in the process of expanding and providing jobs for the community that in turn contribute to the sales tax base. As part of the strategic effort to provide exceptional service to existing companies, Ms. Christle created three events to thank local manufacturers and recognize individuals. One is the Economic Development Works For You Banquet, another is the Manufacturers Milestone Anniversary Recognition Banquet, and the third is the Sedalia Showcase, an event that takes place during the State Fair. Business, community and state leaders are given the opportunity to tour a select number of local companies. Sedalia was hit by a tornado last May causing extensive commercial damage on south Highway 65. In order to assist some of these businesses and keep them in the Sedalia area, Ms. Christle, in cooperation with Pettis County and state officials, created an enhanced enterprise zone that helped rebuild six companies. The anticipated investment by these companies is $2,604,000. Thirty-one jobs were retained, with another 15 created. Agriculture-related jobs remain an important part of the local economy. In addition to farming, the Sedalia region is the site of a major Tyson Food processing plant. More than 1,000 persons are employed there.
Construction Values And Downtown
Citywide construction valuations are a good indicator of growth occurring in a community and consequently, another contributor to the sales tax base. According to the Sedalia Community Development Department, from 20012005 the construction valuation was $89,470,824; however, from 2006-2011 that figure soared to $208,826,850. Sedalia has found it beneficial to invest in its downtown. Public investment since 2006 in the downtown area has been $6,382,507.23. These public funds assisted in spurring $18,510,422.87 in private-sector reinvestments. These downtown efforts have resulted in a net of 162 new jobs. All of these new positions were within the current downtown tax increment financing (TIF) district.
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Whiteman Air Force Base
Whiteman Air Force Base, the only permanent home for the B-2 Stealth Bomber, is located approximately halfway between Sedalia and Warrensburg, or approximately 14 miles from Sedalia. Whiteman, which is critical to the nation’s defense system, is an important part of the local economy and has been since World War II. The number of active duty personnel is currently between 3,500 and 4,000. This does not include family members, retirees and civilian employees.
An Extraordinarily Strong General Fund Balance
A solid sales tax base and healthy retail will eventually be reflected in the municipal operating budget. For many years, Sedalia has had an extraordinarily strong general fund (GF) balance. For the Fiscal Year 2013 budget we have a general fund total of approximately $16 million. It is common to have a GF balance (reserve) of somewhere between 10 percent and 20 percent of the general fund total. That means our balance should be in the area of $1.6 Million to $3.2 Million. In reality, for FY13 we anticipate the general fund balance to be more than $9 million. That figure would even give coverage to the FY13 all funds budget total of $26 million. Those very strong GF balance numbers have been in the budget for approximately 10 years. Having an exceptionally strong general fund balance can be a double edged sword. It provides a good safety net in times of economic challenges (not a bad position to be in during these uncertain times). On the other hand, if the fund balance is too high it could be an indicator that not enough resources are going toward services and infrastructure. A high general-fund balance can also help sustain a stable S&P credit rating.
Summary
Sedalia’s very attractive sales tax revenue and retail base are the result of several factors. For different reasons, we are a retail draw for the entire region. This is supported by the most recent MERIC study. We are fortunate to have successful local retail developers and real estate professionals who are working toward building a stronger retail community and providing a wide selection of retail opportunities. By bringing visitors to Sedalia, the Missouri State Fair is a significant year-round contributor to our sales tax figures. Sales tax revenue and retail will only succeed if there are jobs in the City, county and region. The local economic development office is recognized statewide for its effectiveness www.mocities.com
in expanding the local job base with a diversified manufacturing foundation. Commercial expansion is both a result of and the cause of stable and developing retail. A strong military presence adds to our diverse job base. This growth is documented in construction values and downtown investment. Within the environment of weakened state and national economies, Sedalia’s challenge for the next several years will be to accurately project its sales tax revenue and other revenue sources while adjusting expenditures for services The Missouri Municipal Review
and infrastructure accordingly. Although Sedalia has many elements working in its favor, they would come to naught if these sometimes diverse parts of the community did not have a willingness to partner to reach common goals. The spirit of partnership in Sedalia is not only strong, it is successful. Gary Edwards is the city administrator for the city of Sedalia. Find more information about Sedalia at www.cityofsedalia.com.
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Setting the Theme IN GRANDVIEW by Dennis A. Randolph
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elling a positive story about a community and its people is one way to gain and keep interest in the community. Gaining interest can in turn result in economic development and growth. Over time, positive stories can morph into themes that help define a community. Themes can be represented not only by words and ideas, but in physical “things.” For example, many communities pride themselves in their connections to natural water features – rivers, lakes or oceans. Using a water “theme” becomes a natural starting place for community pride and promotion. Likewise, features created by people can be significant theme points helping to define a community. Many people automatically think of New York City when they see a silhouette of the Empire State Building; similarly, the Golden Gate Bridge is associated to San Francisco.
Infrastructure Projects
Transportation infrastructure projects also can introduce people to the collective values of a community. One valuable, yet often under-stated benefit of infrastructure projects is that they can make big statements about a community. Thus, designing infrastructure to tell a positive story can be
an important tool for community and economic development. For example, people like to shop and live in communities that appear inviting. Unadorned, utilitarian infrastructure can lack the spark that invites people to linger and stay in a community. On the other hand, carefully planned and designed infrastructure helps make a community appear inviting. It also can act as a focal point for community activities. Town squares are one recurring element that has created traditional themes for hundreds of communities over the years. Town squares are “spot” themes and mark a special place in a community. While making a comeback in some new communities, the linear, street-centric layouts of many communities make it difficult to develop new town squares. However, street-centric layouts provide new opportunities to develop themes that conform to and take advantage of “stretched-out” features. Linear themes can journey through a community, taking on subtle changes that reflect the characteristics of different neighborhoods. Most significantly, linear theme elements can link parts of a community previously separated by highways or other physical obstacles. Finally, linear themes provide connections between “spot” themes and lead people from point-to-point.
Grandview Themes
For the city of Grandview, the expansion of US 71 (now I-49) has resulted in a physical separation of the community. However the City is now planning to extend linear theme elements across and along the highway to
Sweeping curves of patterned and colored concrete representing rails travel along each side of Main Street in the City of Grandview.
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Grandview logo.
take advantage of its linearity and overcome the separation. As Grandview works over the years to rebuild itself for the future, the idea of setting both linear and spot themes has been a part of continued planning discussions. One theme in particular that the landscape architects have picked up is railroads and Grandview’s tie to them. In last year’s Main Street Phase 1 project, designers incorporated a rail and tie motif into the new sidewalks built in historic downtown. Sweeping curves of patterned and colored concrete representing rails travel along each side of Main Street. While adding a unique decorative flair to the streetscape, we also have found the patterns are directly affecting pedestrians. Casual observations have noted many people following along the curved “rail” part of the sidewalk, rather than simply walking in a straight line. While a small result, the “wandering pedestrians” testify to the success of the landscape architect’s design influencing the streetscape. It also shows the subtle way in which people casually interact with something as mundane as a sidewalk and highlights the importance of thinking about sidewalk designs rather than simply building a standard walkway.
The Truss
Another theme that will take shape this year in our Main Street Phase 2 project and our Farmer’s Market Place project is the truss. Long associated with railroad bridges, truss forms come in various materials and types. Different truss types from Pratt to Warren www.mocities.com
to several dozen more provide a variety that designers can tailor to every situation. Trusses are the epitome of railroad architecture – a reminder of Grandview’s history along railroads. This year on Main Street Phase 2, the City will place a truss over Main Street in front of City Hall. Designed to be both functional and decorative, the truss will include programmable lighting for use on special occasions. Engineers also designed the truss to carry the load of temporary banners for special events. Finally, the truss will support traffic signals for a school crossing. Carrying the truss theme a bit further down Main Street to the west, Grandview will place a truss as part of the new gateway to the City’s Farmers’ Market Place. Besides marking the entrance, the truss and its supports will provide a framing element for a new water feature in the center of the space. The truss and water feature together make an interesting play on the common use of truss bridges to cross rivers and streams. In the Farmers’ Market Place, the railroad theme will continue with further use of curved sidewalk elements, in this case representing a railroad siding.
New Clock
A third item playing on the railroad theme is a new clock in front of City Hall just to the east of the Main Street truss. In this case, our landscape architects have picked up the importance of timekeeping to railroad schedules by integrating a timepiece into Grandview’s streetscape. This spring we will place a classical, four-face clock on a brick pedestal along Main Street. The clock pedestal carries the theme of the streetlight pedestals used along Main Street Phases I and 2, and ties all the improvements together. The same brick used to face the clock pedestal is on the Main Street truss supports, walls and fountain in the Farmers’ Market Place.
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City Logo
As a final theme and place-marking feature, designers have incorporated the City’s logo into several of these features, including the brick pedestals and the Main Street Truss. While these features have resulted in some extra project costs, the costs are minor compared to the overall outlay. Superbly detailed plans and the competitive nature of contract bidding over the past several years have meant the projects as a whole have come well within budget estimates. On the other hand, these small features provide an accent to what could otherwise be a sterile concrete and asphalt fix-up. The value of these themes and the community energy they help generate has clear benefits. Not only is it important to remember a community’s heritage, it is critical to show continuity over time. Because 2012 is the city of Grandview’s Centennial, construction of theme pieces is especially important since it allows us to forge that important linage between the future and the past.
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Truman’s Home
One important aspect in the City’s past is its claim as President Harry Truman’s boyhood home. In part, this link has given rise to a strong patriotic theme. As a result, plans for decorating blank storefront windows with patriotic themes are underway this spring. This same theme also has resulted in current fundraising efforts for a Veteran’s Memorial to celebrate all of our service veterans. While infrast ruct ure suc h a s streets and sidewalks, utilitarian structures, we should not forget they influence the aesthetics of a community even when they are simple and plain. In Grandview, we move taking a step past the mundane and using new infrastructure to prepare for a vibrant future.
Dennis A. Randolph, P.E., is the public works director for the city of Grandview.
May 2012 / 21
MEETING NEW COMPLIANCE REQUIREMENTS AND ADDRESSING BAD DEBT EFFECTIVELY by John Guy Barwick
O
ver the last few years, utility service providers have been faced with a number of challenges, most notably increased compliance requirements and declining revenues and budgets. Many organizations have seen their write-offs soar during the economic recession while being asked to do more with fewer resources. Fortunately, with a little knowledge, the proper tools and adherence to best practices, utilities can overcome these challenges without straining their budgets or adding staff. The following article discusses what your organization should be doing to meet your compliance responsibilities and offers some tips on how you can control your write-offs effectively.
Recent Compliance And Policy Changes Red Flag Rules
In response to the growing concern over identity theft, the federal government amended the Fair Credit and Reporting Act (FCRA) to require creditors to develop and implement an Identity Theft Prevention Program by December 31, 2010. This regulation, referred to as the Red Flags Rule, requires all organizations that extend credit to consumers, including utility service providers, to create and implement programs to identify, mitigate and prevent identity theft. Although the final ruling from the Federal Trade Commission (FTC) offers some vague language regarding implementation of the program, for most utilities, this means verifying applicant identity during the application process and periodically screening existing accounts for Red Flags over the life of the relationship. In short, you must be reasonably sure that the person applying for service is who he or she says. Regardless of whether your organization created its own program or utilizes a third-party solution, the program has to be board-approved and included in your organization’s policies and procedures.
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Dodd-Frank
The financial crisis that began in 2008 and marked the beginning of the current economic recession prompted U.S. lawmakers to introduce several initiatives aimed at reducing the instability of our financial system. This culminated in the passing of the DoddFrank Wall Street Reform and Consumer Protection Act. Although many of its provisions focus on the financial system as a whole, the Act also introduced measures to protect and educate consumers that directly impact utility providers. Chief among these are the new requirements regarding Risk-Based Pricing and Score Disclosures that went into effect on January 1, 2011. If your organization charges security deposits based on the applicant’s credit worthiness, typically determined by using a credit score, you must disclose this fact and what scoring method you used to arrive at your decision to the consumer whenever you charge a higher than normal deposit. The requisite language should be added to your existing Adverse Action notice to ensure your organization’s compliance.
Social Security Number (SSN) Randomization
Although not regulatory in nature, SSN Randomization will have a dramatic impact on applicant screening and identity verification for utilities in the future. On June 25, 2011, the Social Security Administration (SSA) implemented this new SSN assignment method to help protect the integrity of the SSN and prevent identity theft. Prior to June 25, 2011, newly issued SSNs were divided into three distinct sections, consisting of the area, group, and serial numbers. From this information, it can be determined if a specific SSN assigned before June 25, 2011 has been issued. With SSN Randomization, the significance of the first five digits is eliminated, resulting in a completely random nine-digit number. Determining if a SSN has been issued and which state a SSN was assigned in will not be possible for SSNs issued after June The Missouri Municipal Review
25, 2011. Only those SSNs that consist of sequential numbers (123456789) or those beginning with 000, 666, and 900-999 can be identified as invalid/ non-issued under this new assignment method. This means that more stringent SSN screening methods will be required to accurately verify applicant identity.
Tips For Addressing Bad Debt Effectively
In addition to these compliance challenges, many utilities have seen a dramatic increase in their write-offs over the past few years. While writing off delinquent accounts has traditionally been viewed as “just a part of doing business,” many utilities now realize that they have to do a better job of managing their bad debt in order to be successful. The difficulty in achieving this is that most utilities don’t do enough during the application process to mitigate risk, and lack the knowledge and resources to effectively recover delinquent accounts that have entered the collections process. The good news is that by following a few simple best practices you can help your organization significantly reduce its bad debt. The best way to eliminate bad debt is to prevent it before it starts, with your best chance of doing so during the application process. This is your opportunity to record good information on the applicant (SSN, full name, phone number, previous address), which makes your Red Flag compliance easier and increases the likelihood of recovering the account if it becomes delinquent. It is also important to evaluate the applicant’s creditworthiness using their consumer credit file (letters of credit don’t count!) and charge an appropriate deposit based on the credit risk he or she poses. If the account becomes delinquent, this deposit can be used to offset losses or zero out the account. The challenges many utilities face with this process lies in bringing together disparate sources of information, synthesizing that information, and arriving at consistent deposit decisions throughwww.mocities.com
out the organization that mitigate risk effectively. If an account does become delinquent, the quality of the information you gathered during the application process will largely determine how successful collection efforts will be, regardless of whether you pursue the debt yourself or use a third-party agency. By validating the applicant’s identity and collecting comprehensive demographic information, you provide your staff/ agency with the resources that can help in recovering your bad debt quickly and efficiently. When using a third-party, it also is important to submit delinquent account information as quickly as possible and be responsive to requests for information from your agency. Little can frustrate a collection agency more than not being able to recover an account because it has aged out or because the creditor fails to respond to a request for information, giving the agency no choice but to remove the debt from the customer’s file. Collections agencies rely on timely information from and open communication with clients to be successful.
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Cleco: A Case Study In Reducing Bad Debt
Although some utilities prefer to manage their bad debt in-house, consider the following example of Cleco: an ONLINE Utility Exchange client located in central Louisiana. With write-offs totaling more than $4.6 million in 2008, Cleco made a commitment to control their bad debt by partnering with the ONLINE Utility Exchange. First, the organization deployed ONLINE’s industry-specific screening methodology to identify higher-risk applicants and implemented a tiered-deposit policy in which medium- and high-risk applicants were charged a security deposit based on average monthly usage. Second, Cleco actively participated in ONLINE’s Exchange network, sharing customer payment history with ONLINE, and using real-time data from other Exchange members to predict customers’ ability to pay their bill on time. Third, Cleco began using the ONLINE Utility Exchange report to verify applicant identity. By 2010, Cleco’s write-offs had decreased by more than $2.3 million
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or 44 percent. By verifying applicant identity at the point of application, they also saw a dramatic drop in application fraud and have noted that customers move around less in the hopes of avoiding paying their outstanding balances to Cleco. John Guy Barwick has been employed with ONLINE Information Services since 2007, serving as the company's marketing coordinator and technical writer. The ONLINE Utility Exchange offers applicant-screening tools and collection services, in addition to integrated, easy-to-use compliance solutions. For more information, visit www.ONLINEUtilityExchange.com or contact ONLINE Sales at 866-630-6400 or sales@onlineis.com.
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T
he Missouri Local Technical Assistance Program is located at Missouri University of Science and Technology (Missouri S&T) and operates on funding provided by the Missouri Department of Transportation (MoDOT) and the Federal Highway Administration (FHWA). Missouri S&T is a leading technology institution and currently has one of 10 National University Transportation Centers in the country that supports the efforts of the Missouri LTAP by providing 1:1 matching funds to aid in LTAP’s services and deliverables. Missouri LTAP at Missouri S&T has developed partnerships and processes that deliver the highest quality training and technology transfer to local agencies throughout the state. Missouri LTAP is recognized throughout the state for its training, resources and programs that it provides to local agencies. These agencies include county road and bridge departments, city public works departments, and various other local agencies tasked with constructing and maintaining infrastructure. Over the past five years, the Missouri LTAP program has experienced remarkable growth in the number of agencies served, the number of classes conducted and the variety of training classes offered. Missouri LTAP’s goal is to continue to reach a much broader audience.
Missouri LTAP’s main focus is on providing quality training to local government agencies and their employees throughout the state. Missouri LTAP develops a training calendar to make it easy for agencies to plan ahead. Locations are identified to provide a variety of classes throughout the state on a consistent basis as well as in response to requests from agencies. Classes are offered at various locations that usually allow agencies to travel less than one hour. All of the classes are taught by qualified instructors who have years of experience in the topics they teach. The list of instructors includes retired MoDOT employees, American Traffic Safety Services Association (ATSSA), and National Safety Council certified trainers. In addition, many of the instructors have advanced degrees, but most importantly, they all have courserelated experience. Missouri LTAP classes are organized around the Missouri “Show-Me” Road Scholar Program. The primary purpose is to promote a skilled workforce for local public works departments. The program provides recognition for the completion of training focused on increasing the knowledge of road maintenance procedures and improved technical, supervisory and managerial skills. It is intended to enhance the skills and knowledge of technicians as well as those who supervise others or aspire to manage others in public works operations.
Road Scholar classes are organized in two levels of training. Level I includes road maintenance procedures, equipment operating skills and technical skills, and Level II focuses on management and supervisory skills. Each level requires three core courses and five elective courses. A certificate and a coat are awarded for the completion of Level I and must be earned in order to obtain recognition in Level II. Level I classes are offered at the low cost of $30/person and Level II classes are offered at $60/person for all government agencies; however, there is no program registration fee to become a road scholar. The program is open to all individuals who work for local government agencies. The required courses, along with course content, have been determined by participating partners in the program. Missouri LTAP is proud to have the Missouri Municipal League as one of these partners. For more information on Missouri LTAP, the Missouri “ShowMe” Road Scholar Program, or to view a schedule of upcoming classes, please visit the LTAP website at www.moltap.org.
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MISSOURI MUNICIPAL LEAGUE ELECTED OFFICIALS TRAINING CONFERENCE Capitol Plaza Hotel, Jefferson City June 14-15, 2012 The Missouri Municipal League will be conducting the Elected Officials Training Conference June 14-15 in Jefferson City. The Conference emphasizes the knowledge base all newly elected officials will need to govern effectively. The changes that continually occur in the municipal arena make this a Conference that all officials (not only newly elected) should consider attending.
TENTATIVE PROGRAM
THURSDAY, June 14, 2012 9:00 a.m. Registration 10:00 a.m. Conference Start/History and Structure of Missouri Municipal Government – Kevin O’Keefe 11:00 a.m. Conflict Resolution – Sarah Reed 12:00 noon Lunch 1:00 p.m. Budgets – Mark Levin 2:30 p.m. Ethics – Nancy Thompson 3:30 p.m. Liability and Risk – Christine Bushyhead 4:15 p.m. Q & A – Nancy Thompson & Christine Bushyhead (DINNER ON YOUR OWN) FRIDAY, June 15, 2012 7:30 a.m. Breakfast/MML Services and Website 8:15 a.m. The Missouri Open Meetings and Records Law – Tom Durkin 9:45 a.m. Public Works Contracts – Joe Lauber 10:30 a.m. Economic Development Tools and Due Diligence – Tom Kaleko 11:15 a.m. Taxation and Revenue – Joseph Lauber 12:00 noon Q & A – Tom Kaleko and Joseph Lauber 12:15 p.m. Adjourn
Plan To Attend!
This year’s Conference will be held at the Jefferson City Capitol Plaza Hotel. Please make room reservations directly with the hotel: Capitol Plaza Hotel, 415 West McCarty Street, Jefferson City (800-338-8088). Please keep in mind that room check in is not available until after 3:00 p.m. on June 14 (although early check in may be available for an extra fee). When making reservations, let the hotel know that you are with the Missouri Municipal League in order to receive the special conference rate ($99). The registration fee for the Conference is $130. The cost includes the lunch on Thursday and breakfast on Friday as well as conference materials. If you have special needs, please attach a separate sheet describing your requirements. The League requests a two-week notification in order to make these arrangements. Reservations should be received by June 8. CANCELLATIONS must be received at League headquarters by 5:00 p.m., June 11, or it will be necessary to bill you for the registration fee. DETACH AND RETURN THIS SECTION TO: (Or register online www.mocities.com)
Missouri Municipal League 1727 Southridge Drive Jefferson City, MO 65109 573-635-9134; Fax 573-635-9009
2012 Elected Officials Training Conference
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May 2012 / 25
www.mmlonlinelearning.com
MML Online Learning Courses Online Learning Courses: Anger and Stress Management
MML Local Government Online Learning Courses Missouri Municipal League is committed to producing excellent online learning experiences for the public sector. The MML training site currently has twelve local government courses available, with a new course being added, on average, every six weeks. MML can meet your online training needs on a pay per view basis at the very low participant cost of $39.00 per course. This price includes: • Local Government Specific Content and Downloadable Handouts • Access to the Course Content for 30 Days • CEU Credit • Certificate of Completion after passing quiz To register, please visit our website at: mmlonlinelearning.com
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With the pace of life so fast, it seems as if anger and stress can control our lives. It has been estimated that more than half of all doctor visits are due to anger or stress-related illnesses. When we do not have a healthy mechanism to deal with the frustrations in our lives, it can lead to serious health problems. If we take the time for purposeful and constructive action, the path that we take to deal with our anger and stress can actually be a positive one. Anger and Stress Management helps participants communicate anger in healthy ways and implement effective stress management techniques.
Embracing Diversity in the Workplace
The U.S. workplace is more diverse than ever before. Diversity brings many benefits, but it also creates a responsibility for supervisors and employees to learn how to nurture and encourage healthy and vibrant interactions and teamwork in such a diverse environment. Embracing Diversity in the Workplace trains participants how to create a productive, synergistic environment.
Ethics: The Heart of Public Service
Ethical behavior is the foundation of a successful organization. Ethics: The Heart of Public Service is an ethics overview that can be used for new employee orientation and an ethics refresher for tenured public sector employees. In this class, participants review the basic rules of ethical conduct in the public sector and learn how to utilize the HEART Ethical Decision Making Process. The class also includes many practical applications
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and several worksheets, including Unethical Behaviors Public Sector Employees Should Avoid.
Sexual Harassment Prevention: No Room for Doubt
Sexual harassment and discrimination in the workplace are issues that cannot be ignored. Not only is there a considerable amount of liability for an organization, but there can be personal liability for a public employee as well. Sexual Harassment Prevention provides a comprehensive overview of sexual harassment prevention for public sector employees and includes a test to recognize harassment, principles to create a safe environment and mitigate risk, and discussion of actual workplace scenarios.
Extraordinary Customer Service
As the pressure increases to keep citizens happy and local business growing and thriving, it is more important than ever that local government employees know how to deliver customer service at the highest level. Extraordinary Customer Service is designed to give the participants a broad overview of customer service and addresses dealing with both internal and external customers. This class instructs participants on topics including making great first impressions, professional phone etiquette, using email professionally, being respectful and responsive to customers' needs, and interacting with difficult customers.
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MML Online Learning Courses Online Learning Courses, Continued: Learning the Language of Multiple Generations
Now, more than any time in history, different generations with diverse outlooks are being asked to work together. Learning the Language of Multiple Generations helps employees understand the confusing differences between generations. In this class, participants overcome generational misconceptions and employ effective techniques for communicating with people of all ages, whether citizens or co-workers.
Local Government 101
Substantial differences exist between operating in a private company and in the very high visibility and accountability of local government. Local Government 101 assists new employees in understanding the legal, cultural, and political environments of local government. This course provides an overview of the types of local governments and discusses forms of municipal government, specifically focusing on the city manager-council form of government. Participants will also learn about municipal revenue sources, the annual budget process, and strategies for a successful career in local government.
Introduction to LEAN Management in Local Government
Doing more with less has become a way of life for many local governments. However, using traditional techniques of simply working harder offers limited opportunity for substantial improvements. Traditional approaches often result in declines in service levels and employee morale. Introduction to LEAN Management in Government
introduces principles that help organizations increase productivity by working smarter, not harder.
FMLA Guideline for Supervisors
FMLA Compliance Guidelines for Supervisors provides a comprehensive overview of the Family and Medical Leave Act for employees at the supervisory level. In addition, the class familiarizes supervisors with the history of FMLA, reviews FMLA notice requirements, reviews the supervisor's role in FMLA compliance, and reviews multiple FMLA frequently asked questions and clarifies answers.
HIPAA Compliance Training for Supervisors
HIPAA Compliance for Supervisors reviews federal compliance guidelines for local government supervisors responsible for Health Insurance Portability and Accountability Act employee awareness, pattern, and practice.
Red Flags Rule – Federally Mandated Identity Theft Prevention
Identity Theft is the fastest growing crime in the United States, and the second most common form of identity theft is utilities fraud. Under the Identity Theft Red Flags Rule, which are part of the FACT Act of 2003, organizations are required to implement an Identity Theft Prevention Program. Red Flags Rule provides front line employees with an understanding of the requirements of the Red Flags Rule and their organization's Identity Theft Prevention Program. This class, combined with an internal review of any organization-specific procedures,
will meet the employee training requirement of the Red Flags Rule. Participants receive hands-on training regarding the types and categories of Red Flags in order to assist employees in identifying and detecting Red Flags, as well as how to prevent and mitigate identity theft by protecting sensitive customer information.
Crafting a Winning Transmittal Letter
Designed to walk local government job seekers through the first stage of the application submission process, this course reviews, "stand out from the crowd" email submission techniques, a successful transmittal letter crafting process, and transmittal letter spoilers that must be avoided. This course is a must for the first time public sector job seeker or the seasoned local government professional seeking to transition to a new job or advance his/her career.
Continuing (CEU’s)
Education
Units
Completion of an MML online course is defined when a student has viewed all course content, completed all course interactions, and achieved 80% or higher on the course comprehension quiz. Upon course completion, the student emails their Certificate of Completion to CEUcredit@GovernmentResource.com. An SGR administrator then forwards a course completion record to Rose State College who issues the CEU certificate to the student and records the CEUs earned by the student on Rose State College academic records. There are no additional fees necessary to process your submission for CEU credit.
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May 2012 / 27
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30 / May 2012
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News From the Bench by W. Dudley McCarter
STORM WATER CHARGE BASED ON SQUARE FOOTAGE OF IMPERVIOUS AREA WAS AN UNCONSTITUTIONAL TAX AND NOT A “USER-FEE”
I
n 2007, the Metropolitan St. Louis Sewer District (MSD) adopted a new storm water “user charge,” without voter approval. The charge was assessed on every property within the sewer district with an impervious area, at a rate of 12¢ per 100 square feet of impervious area. In 2008, a class action suit was filed against MSD seeking a declaration that the new charge was not a user fee, but was an unconstitutional tax. The trial court found that it was an unconstitutional tax. The Court of Appeals affirmed in Zweig v. The Metropolitan St. Louis Sewer District, No. ED 96110 (Mo.App. E.D. 2012). To determine whether a charge is a tax or a user fee, this Court must consider the five factors set out in Keller v. Marion County Ambulance District, 820 S.W.2d 301 (Mo.banc 1991). Arbor Inv. Co., LLC v. City of Hermann, 341 S.W.3d 673, 683 (Mo.banc 2001). But, as Justice Holstein so astutely points out in his concurrence in Beatty v. Metropolitan St. Louis Sewer District, analysis under Keller is fraught with difficulty, because the factors developed in that opinion are so vague and manipulatable that they necessarily result in repetitive litigation and are ultimately unworkable. 867 S.W.2d 217, 222 (Mo.banc 1993). Unfortunately, as Justice Holstein also recognized, the Keller analysis is the current state of the law and this Court is bound to abide by it. Id. The first factor in the Keller analysis examines when the fee is paid. To the extent that there exists any principle way
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to approach this factor, the storm water charge appears to be more like a tax than a fee. Without any additional evidence supporting MSD’s position, the fact that the fee is charged periodically tips the scales in favor of taxpayers under this factor. There was no evidence from MSD that the taxpayers in this case used the storm water service on a monthly basis. The second Keller factor looks at who pays the fee. Because there is no connection between the sewer services and the charge of the fee, we resolve this factor in favor of the taxpayers. The third Keller factor looks for a relationship between the amount of the charge and the level of services being provided. Given the trial court’s factual finding that there was no relationship between the method used by MSD to calculate the charge and an individual property owner’s storm water system usage, this factor is resolved in favor of the taxpayers. The fourth factor focuses on whether the government is providing a service. This factor is resolved in favor of MSD. The final Keller factor is concerned with who has been the historic provider of the service. The fifth Keller factor turns on whether the government is or is not the ‘exclusive’ provider of services. MullinexSt. Charles Properties, L.P. v. City of St. Charles, 983 S.W.2d 550, 562 (Mo.App. E.D. 1998). The overwhelming evidence supports the trial court’s conclusion that MSD is the exclusive provider of the services. This factor is resolved in favor
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of the taxpayer’s position. In this case, the Keller factors are dispositive of the issue. MSD argues that under the trial court’s analysis, it is impossible to institute this much-needed storm water charge in any way that would satisfy the Keller elements. This may indeed be the case. But, that does not mean that MSD cannot impose this charge; it only requires that it submits the proposed change to a vote. If this change in fee structure is as vital as MSD claims it is, MSD should take its case to the voters, not to the courts. This Court holds that the storm water charge challenged in this case is an unconstitutional “tax.” The trial court did not err in finding that the taxpayers were precluded from obtaining a refund due to their failure to follow the requirements of Section 139.031. The taxpayers’ failure to timely protest the charge was fatal to their refund claim, even based on a Hancock challenge. W. Dudley McCarter is with the law firm of Behr, McCarter and Potter, P.C., St. Louis.
May 2012 / 31
Frequently Asked Questions Each day your Missouri Municipal League staff answers dozens of questions on municipal issues. This column will discusses some of the most common questions the League staff receives. With this issue of The Review being devoted to Public Works, this column will focus on prevailing wage questions. Many of the answers in this month’s column stem directly from information available on the Missouri Department of Labor’s website. As with all legal matters, municipal officials are urged to consult their city attorney for guidance in the specific problems faced by their municipality. Answers provided in this column should serve only as a general reference.
Q. What Is The Prevailing Wage?
The prevailing wage is the minimum wage amount that workers on Missouri public work construction projects must be paid. It is required by law and determined through surveys conducted by the Division of Labor Standards. The Prevailing Wage law applies to all public works projects that include fixed works constructed for public use or benefit, or paid for wholly or in part out of public funds.
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Prevailing Wage It also includes work done directly by any public utility company performed under the order of the public service commission or other public authority.
Q. How Are Prevailing Wage Rates Set?
Each year the Missouri Department of Labor conducts surveys on the wage rates paid on construction projects. Contractors, public bodies and others submit wage information to the Department. The information includes actual hours worked on construction projects. The Department of Labor then tabulates the prevailing wage based on the highest number of hours received for a rate paid that becomes the prevailing wage rate (per individual county). This statistical methodology is called the mode method and can produce significantly different results from the more customary average method. Typically not enough contractors will supply wage rate information for particular counties. In this situation, the Department will substitute the prevailing wage determinations from other counties for use in counties that did not supply enough wage rate information.
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Q. What Are The Basic Prevailing Wage Law Procedures And Steps For Public Entities To Follow For Compliance?
(1) Submit a request form (PW-3) to the Division of Labor Standards to receive the Annual Wage Order. (2) Incorporate a complete copy of the most current Annual Wage Order in all bid specs. (3) After awarding the contract, submit a project notification form (PW2) to the Division of Labor Standards. (4) During the course of the project, review all payroll records to ensure Prevailing Wage law requirements are being met. (5) At the completion of a project, acquire a completed Affidavit of Compliance form from the contractor(s) before making final payment. (6) Send a copy to the Division of Labor Standards.
Q. Where Can I Get Detailed Information Regarding The Prevailing Wage Law?
City staff and legal counsel may be excellent sources for information regarding the Missouri Prevailing Wage law. The Missouri Department of Labor provides a very detailed guide to complying with the Law. This guide is
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MIRMA
Missouri Intergovernmental Risk Management Association Phone: 573.817.2554 Web: www.mirma.org
Missouri’s First Municipal Self Insurance Pool
online at http://labor.mo.gov/DLS/ Forms/LS-62-AI.pdf.
Q. Is There A Minimum Dollar Amount Or Square Footage Before A Project Is Considered A Public Works Project?
No, the Law has no dollar or size threshold. Essentially any public works project that entails construction, reconstruction or major repair is subject to prevailing wage.
Q. What If City Employees Do The Work, Are They Still Subject To The Prevailing Wage?
No, the prevailing wage requirement only applies to private employers doing public works projects on behalf of a public body.
Q. What If Individuals Volunteer To Do The Work, Would They Be Subject To Prevailing Wage Requirements?
As long as the individuals receive no compensation for their work, the Prevailing Wage law would not apply.
Q. What If A Contractor Offers To Build A Project Prior To The City Taking Ownership, Wouldn’t This Be A Way Around The Law?
No. In the 2001 Missouri Supreme Court Case, DOL vs. Friends of the Zoo of Springfield (SC82858), the Court found that a public body constructing public works may not circumvent the Prevailing Wage law by a legal façade. Where a private entity and a public body create a façade behind which the public body engages in public works, the workers are employed on behalf of the city.
Q. What About An Owner/ Operator Contractor Where The Business Owner Will Actually Do The Work, Aren’t They Exempt From Prevailing Wage?
No. An owner/operator business must still be paid the prevailing wage and must comply with all the standard documentation.
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Q. What Is The Difference Between Major Repair And Maintenance?
RSMo 290.210 defines “Construction” to include “construction, reconstruction, improvement, enlargement, alteration, painting and decorating, or major repair.” The statute further defines “Maintenance Work” as “the repair, but not the replacement, of existing facilities when the size, type or extent of the existing facilities is not thereby changed or increased.” RSMo 290.230 requires the prevailing wage be paid on all “construction” work but exempts “maintenance work.” The Missouri Department of Labor (DOL) applies a very strict interpretation of what qualifies as maintenance. For instance, changing out the bulbs in a fluorescent light fixture may be considered maintenance. However, changing out a broken ballast on the light fixture itself would be considered a major repair by Missouri DOL and subject to the prevailing wage.
Q. What About Painting? Isn’t Painting Just Maintenance Work?
No. Painting is subject to the Prevailing Wage law. In a recent Missouri Supreme Court case involving the repainting of a water tower in Monroe City, the Court ruled that workers doing the painting must be paid the prevailing wage rate. Part of the case hinged on the language used in the definition of “construction” as defined in the Prevailing Wage law. This definition includes the word painting.
Q. Have There Been Any Legislative Attempts To Lessen The Application Of The Prevailing Wage Law?
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Q. What Is The Annual Wage Order?
The Division of Labor Standards issues the Annual Wage Order each year. It contains the proper hourly wage rates, overtime and holiday wage rates, and creates schedules for workers on prevailing wage projects.
Q. As A Public Body, How Do I Obtain A Copy Of The Annual Wage Order?
Submit a request form (PW-3) to the Division of Labor Standards to receive the Annual Wage Order. This form can be found online at: http:// labor.mo.gov/DLS/Forms/PW-3-AI. pdf. Or, send your request in writing to the Division of Labor Standards, PO Box 449, Jefferson City, MO 65102.
Q. Are Foremen, Superintendents Or Salaried Employees Subject To Prevailing Wage Rates?
Employees performing construction on public works projects are required to receive at least the prevailing rate of pay for the type of work they performed. This is regardless of their title or salary status. Employees who only perform supervisory tasks are not covered by prevailing wage. As with all legal matters, municipal officials are urged to consult their city attorney for guidance in the specific problems faced by their municipality. Answers provided in this column should serve only as a general reference. More information about public works projects can be found on the MML website in the “One Stop Shop,” under Public Works. Municipal officials needing guidance about specific situations in their communities should consult their staff or city attorney.
Numerous bills have been filed over the years to either set a minimum threshold for the application of prevailing wage or to modify the circumstances under which the Law is applied. None of these legislative attempts have passed.
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City Job Opportunities CITY ADMINISTRATOR. The city of Crane, Mo, (1,462 pop.), is accepting applications for the position of city administrator. The city administrator will be responsible for carrying out those duties described by the mayor and fourmember, non-partisan board of aldermen. The ideal candidate will have a bachelor’s degree in public administration or in a related field or equivalent, and at least three years of municipal-government experience. Public-sector work experience may serve as an education substitute. The successful candidate will have meaningful municipal government and finance experience and the ability to develop and oversee the $2.2M budget; must be an experienced professional with demonstrated communication, interpersonal and networking skills, as well as provide outstanding leadership; proven work ethic; excellent decisionmaking aptitude; the ability to maintain the fiscal integrity of the organization; demonstrated management and financial capabilities; familiarity with economic development tools; and at least five years progressively responsible positions in city administration. The starting salary will be market competitive, depending on the qualifications and experience of the selected candidate. Residency is a requirement. Position will remain open until filled. Application review will begin immediately. All applications will be treated as confidential. Send cover letter, resume, references and salary history to: City of Crane, City Administrator Position, PO Box 17, Crane, MO 65633 or email to Collin Brannan, Mayor at Mayor@CraneMO.com. EOE. ASSOCIATE CITY COUNSELOR. The city of Jefferson City, Mo., seeks an associate city counselor to provide legal advice to city officials, boards, commissions and staff. Duties include: handling claims of property damage, personal injury and Workers’ Compensation; conducting litigation of all types both for and against the City; performing legal research on issues affecting local government; critiquing and drafting ordinances, agreements and other legal documents; and appearing before the City Council, boards, commissions and administrative agencies. Requires a Juris Doctor degree; State of Missouri License to practice law within three months of employment; and Missouri driver’s license. Experience and/or academic emphasis in public sector law or workers’ compensation practice preferred. Monthly salary range $4,430-$6,645, plus excellent benefits. Application deadline is May 31, 34 / May 2012
2012 CALENDAR OF EVENTS May 18 20-24 24 21-25
General Assembly Adjourns International Institute of Municipal Clerks Annual Conference, Portland, OR MOREnet Meeting Columbia, MO National Public Works Week
June 13 14-15
Missouri Digital Goverment Summit Jefferson City, MO MML Newly Elected Officials Conference, Capitol Plaza Hotel, Jefferson City, MO
July 13-15 September 16-19 15 29-Oct 3 October 1-3
Missouri Municipal Attorneys Association Summer Seminar, Tan-Tar-A, Osage Beach, MO MML Annual Conference, Tan-Tar-A Resort, Lake of the Ozarks, MO Financial Disclosure Ordinance Deadline ICMA Annual Conference, Denver, CO
International Assn. of Chiefs of Police Annual Conference, San Diego, CA
November 6 Election Day 27-Dec 1 NLC Congress of Cities, Boston, MA
2012. Full-time personnel must reside within 25 miles and 30 minutes of the city limits within six months of hire. Interested applicants may print an application from our website www.jeffcitymo.org, or complete an application in person at the City of Jefferson, Human Resources Department, 320 E. McCarty, Jefferson City, MO. Employment Hotline: 573-6369900. EEO/M/F/D/V. DIRECTOR OF FINANCE. The city of Jefferson City, Mo., seeks a finance director to plan, organize and supervise the fiscal management of the City; advise staff and City Council on financial matters; assist with the preparation of departmental budgets; evaluate financial procedures and processes; supervise accounting staff and functions; and help develop solutions for financial issues. Requires an accredited bachelors’ degree in finance, accounting, public or business administration or related field and five The Missouri Municipal Review
years’ experience in accounting, budgeting and finance administration. An accredited master's degree is preferred. Also requires management and leadership experience; the ability to maintain effective working relationships with government officials, employees and the community; excellent public speaking skills; and the ability to plan, organize, direct and evaluate the sound financial systems, procedures and programs of a municipal finance department. Monthly salary $6,486-$9,729 DOQ, plus an excellent employee benefits package. Application deadline is May 25, 2012. Candidate must reside within the Jefferson City, city limits within six months of hire. Interested applicants may print an application from our website www. jeffcitymo.org or complete an application in person at the City of Jefferson, Human Resources Department, 320 E. McCarty, Jefferson City. Employment Hotline: 573636-9900. EEO/M/F/D/V.
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