Council reviews audit report

"We didn't find any evidence of wrongdoing," Cindy Bias told the city council in response to a question from city attorney, Bill McCaffree, during Tuesday night's City Council meeting.

She said that there were about $88,000 in unidentified reconciliation problems that could hide something, but that she thought the issue was due to accounting errors that were not caught because the city's accounts were not reconciled in a timely manner during 2007. B.G. Wolfe told the council that he felt a lot of the problem was due to the finance department being understaffed after the city fired employees in the summer of 2006.

"We thought the finance department was understaffed in 2005," he said.

"It is adequate now," he said.

Bias told the council that in the future they may need to cross people from other department to do some finance department duties to maintain adequate segregation of funds.

In other business, the council:

* Voted 5-0 to pass on first reading a special ordinance approving a lease agreement with Air Methods Corporations hangar space for their air ambulance and space to construct a office at the Nevada Municipal Airport.

"They called us. They were looking for a home," Monte Curtis, airport board chairman, told the council.

He told the council that this is the worlds largest air ambulance service, with operations in 42 states, 312 ambulances and 254 fixed wing aircraft, and over $500,000 in revenues in 2007.

Curtis said that the company will purchase most of their fuel from the airport.

"This will be a good deal," he said.

Prior to the council's consideration of this matter, Vernon County Ambulance District Director James McKenzie addressed the council with concerns that additional air ambulance service in the area could have a negative impact on the district's finances.

* Voted 5-0 to accept the low bid of $12,000 from Guthrie Motors for a 2008 Chevrolet pick up truck for the code enforcement officer. Interim City Manager Harlan Moore told the council that Guthrie's only had one 2008 Chevrolet Colorado truck and that the 2009 models would cost more money. Moore said that he had discussed the matter with Mayor Mike Hutchens who felt that savings was in the best interest of the city and that the city manager should go ahead and purchase the truck.

* Voted 5-0 to accept the low bid of $7,467 from CESI, Neosho, for a FSM-18S Fusion Splicer to splice fiber optic cables in the city's fiber network that links the various city facilities.

* Voted 5-0 to approve the appointment of Mike Turnbull to the Nevada Housing Authority.

* Voted 5-0 to approve the re-appointment of Bob Ebert to the Nevada Housing Authority.

* Voted 5-0 to pass on first reading a general ordinance changing the status of the city building inspector or city engineer and the council representative on the planning commission from full voting members to ex-officio members. Nevada Mayor Mike Hutchens said that this is the only city board where the council or city staff representative are voting members and there is a possible conflict of interest for them to vote on issues that will be considered by the city council. Hutchens said that Interim City Manager Harlan Moore has researched the matter and can find no reason for these positions to be voting members.

* Voted 5-0 to permit the Missouri Osage Territory Muzzleloaders to hold their annual black powder shooting competition in Marmaduke Park, Sept. 10 through 13 and to waive the section of the city code prohibiting the discharging of firearms in the city limits for this activity.

* Voted 5-0 to pass on second reading a special ordinance authorizing the payment of $2,451.65 to Ensz & Jester P.C., for performing special legal services for a matter that cannot be discussed at this time due to possible litigation. Ensz & Jester P.C. is a Kansas City law firm retained by MARCIT, the city's insurance carrier.

* Voted 5-0 to pass on second reading a special ordinance authorizing the payment of $8,954 to McCaffree & Landoll, Attorneys at Law for special legal services that cannot be discussed at this time due to possible litigation. William McCaffree is the city attorney, however, the scope of work performed by McCaffree & Landoll exceeded the normal services provided by McCaffree as city attorney.

* Voted 5-0 to pass on second reading a special ordinance approving the payment of $2,375 to the Schemerhorn Law Firm, Kansas City, for special legal services that cannot be discussed at this time due to possible litigation.

* Voted 4-1, with Tim Wells voting no, to give final approval to an increase in the cost of taxi coupons. The coupons will increase from $2.50 to $3 each for elderly and handicapped and from $3.50 to $4 for the general public. Starting with the city's 2010 budget the taxi coupon rates are to be set and approved with each annual budget.

* Voted 4-1, with Tim Wells voting no, to pass on second reading a special ordinance increasing non-coupon taxi rides from $5 per one-way trip to $6 per one-way trip. The $6 rate includes one adult passenger and one child, age six and under. Additional children traveling an adult is charged $1 each. In addition to the $6 fee, if the taxi is requested to wait while for the passenger, there is a 50-cent charge for each five minutes.

* Voted 5-0 to pass on second reading a special ordinance approving the bid of $6,802.66 for 2009 trash services for the city from Waste Corporation of America.

* Voted 4-1, with Bill Gillette voting no, to increase the street construction budget by $73,668.48 for completed street construction.

* Voted 5-0 to pass on second reading increase the amount to be paid to Rosetta Construction LLC from $909,427.88 to $1,368,096.44. The additional $458,668.56 is to cover the cost of replacing the existing 24-inch south interceptor line from the wastewater treatment plant to an area south of the railroad tracks and to install a fiber optic control line from the wastewater treatment plant to the north pump station.

* Voted 5-0 to give final approval to a special ordinance authorizing the city manager to issue a request for qualifications for a project to install a light at the interchange of U.S. Highway 71 and Austin Blvd. The project is to paid for with an 80-20 percent matching grant.

* Voted 3-2, with Mike Hutchens, Tim Wells and Bill Gillette voting yes and Jayne Novak and Joyce Wilson voting no, to give final approval to a special ordinance approving an annual agreement with M-NOD Taxi Service to provide subsidized transportation through the city's taxi coupon program.