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02-06-2023 Agenda and PacketCITY COMMISSION INFORMATION MEMORANDUM February 6, 2023 ADMINISTRATIVE BRIEF From Debbie Pack, Director of Finance & Administration STAR Bond Fundin Sales tax collections in the Downtown STAR Bond district in 2022 have been strong. The following tables show the collections from January through December. Jan -21 Feb -12 Mar -22 Aft -22 May -?2 Jun -22 Jul -22 Aug -22 Sep -22 Oct -12 Nov -22 Deo -12 Stale Tax 235,913 254,162 171,034 218,319 242,131 225,014 251,339 271,974 269,703 213,018 259,702 240,421 2,85$731 Local Tax 78,696 84,187 64,693 69,138 17,787 69,602 11,124 83,241 85,475 64,036 78,323 72,681 904,982 Transient Guest Tax 12,281 97,477 89,679 - - 97,599 - 357,035 4,120,748 % of Base Collected to Date Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec State 2021 14% 28% 40Yo 50% 65% 19% 92% Iwo 125% 138Yo 148% 169% State 2022 11% 34% 41% 62% 79% 95% 112% 132% 150% 165% 184% 200% local 2021 11% 34% 41% 12% 90% 101% 135% 156% 116% 214% 226% 253% local 2022 43% 67% 86% 134% 156% 176% 224% 248% 212% 319% 26OYo 362% Vollected vs. Projection Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec State 2021 6.96% 13.93% 19,491A 24.551A 31.871A 38.651A 45.49% 53.83% 61.51% 6&01% 72.801A 83.05% State 2022 7.85% 16.32% 22.21% 29.48% 37.54% 45.03% 53.40'% 62.451A 71.43% 7&52% 87.17% 95.17% Local 2021 7.09% 14.161A 19.73% 24.868A 32.40'A 39.66% 47.04% 56.02% 64.38% 71.451A 76.91% 88.071A Local 2022 919% 19.03% 2658% 34.661A 43.741A 51,871A 60.88% 70.6016 80.59% 88.OT6 97.22% 105.71% TGT 2021 0.00°% 10.441A 10.49°A 27AT% 27.41°% VAN 41.00'% 41.00°% 41.00% 68VA 68.401A 68.4016 TGT 2022 26.71% 26,71% 26.71% 62.73% 62.73% 62.73% 95.86% 95.86% 95.86% 131.92% 131.92% 131.92% Per the STAR Bond financing agreement: (c) Remaining Moneys. Any moneys remaining in any account of the City Downtown Development Fund on December 1, 2022 shall be withdrawn and paid to the City to be applied to pay or as reimbursement for payment made for capital expenditures within the STAR Bond District. As of December 1, 2022, the remaining funds of approximately $421,000 was transferred to the City of Salina. For complete details as of Nov. 30, 2022, the monthly update can be found on the City's website Departments/Finance & Administration/Financial Reports/Monthly Reports/August STAR Bond District. City Sales Tax The City's sales tax collection in 2022 continue to be very strong. Collections through Feb, 2022, came in 15.63% above collections at this time last year. While March - December, 2022 collections are still very strong, the 2022 annual collections through December, 2022 are 8.26% higher than collections through December, 2021. Transient Guest Tax Since the implementation of the increased transient guest tax on October 1, 2021, the City has collected approximately $315,977 in three quarters to set aside for the field improvement projects. Audits After completion of the 2021 audit, the City's auditors informed staff that they would not be able to audit the City's books going forward. Staff put together a request for proposal and selected a new auditing firm that will be meeting with staff in the near future to map out the process. Other The request for proposals for Banking Services and Agenda Management Software were both put out in the 4t" quarter of 2022. Staff is making a recommendation for banking services to City Commission on Feb. 6, 2023, and have made a selection to recommend for Agenda Management Software which will be forthcoming to City Commission. Finance staff is testing and will be going live with a major upgrade in the City's finance system. Go live date is set for February 23, 2023. The next few months will be very busy implementing all of these new agreements. City Clerk Staff continues to track Expressions of Interest for the various Boards and Commissions of the City and has completed year end license renewals. Water Customer Accounting Staff is continuing to have regular implementation/training sessions with Tyler Technologies for the replacement of the water billing software. Data conversion is expected in early 2nd quarter of 2023, with go live date anticipated in the 3rd quarter of 2023. City ®f SALINA CITY COMMISSION REGULAR MEETING AGENDA CITY -COUNTY BUILDING, 300 W. ASH, ROOM 107 SALINA, KANSAS Salina FEBRUARY 6, 2023 4:00 P.M. CALL TO ORDER a. Mayor request staff confirmation that the Kansas Open Meeting Act required notice has been properly provided. b. Roll call. 2. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE 3. AWARDS AND PROCLAMATIONS 4. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME 5. CONSENT AGENDA (5.1) Approve the minutes of January 23, 2023. (5.2) Authorize the City Manager to execute an Amended and Restated Public/Private Partnership Agreement for the Smoky Hill River Greenway Trail from the YMCA to Ohio Street. 6. ADMINISTRATION (6.1) Approve Ordinance No. 22-11122, on second reading, changing the zoning district classification from A-1 (Agricultural) to R-1 (Single -Family Residential) and R-2 (Multi -Family Residential) on a 46.84 acre unplatted tract of land located on the west side of Holmes Road north of Magnolia Road. (6.2) Approve Ordinance No. 22-11120, on second reading, changing the zoning district classification from A-1 (Agricultural) to R-2 (Multi -Family Residential) on a 52 acre unplatted tract of land located east and south of the Stone Lake sandpit lake at the northeast corner of South Ohio Street and Schilling Road. (6.3) Banking Services (6.3a) Approve Resolution No. 23-8106 designating official depositories for city funds, providing authority to wire transfers, providing for authorization of check signers, and authorizing securities purchases and sales. (6.3b) Authorize the City Manager to execute an agreement with Equity Bank to provide banking services for the City of Salina. (6.4) Approve Resolution No. 23-8103 adopting the 2023-2027 Capital Improvement Program. (6.5) Superior Contracting and Manufacturing Services Company Industrial Revenue Bond Request. (6.6) Consider Salina Community Economic Development Organization Board of Directors' recommendation regarding the City of Salina's participation in the funding of a proposed agreement with SkyWest Airlines/SkyWest Charter for use of the Salina Regional Airport as an overnight maintenance base. 7. DEVELOPMENT BUSINESS S. OTHER BUSINESS 9. CITIZENS FORUM 10. ADJOURNMENT Citv0f CITY COMMISSION AGENDA GENERAL ORDER OF BUSINESS AND PUBLIC PARTICIPATION POLICY 1. CALL TO ORDER/ROLL CALL 6. ADMINISTRATION 2. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE 7. DEVELOPMENT BUSINESS 3. AWARDS — PROCLAMATIONS 8. OTHER BUSINESS 4. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME 9. CITIZENS FORUM 5. CONSENT AGENDA 10. ADJOURNMENT Study Sessions and City Commission meetings will take place in—person at the City/County Building in Room 107 and via Zoom until further notice. Meetings can be viewed at the City of Salina YouTube channel, https://www.youtube.com/cityofSaIinaKansas. To participate via Zoom, citizens will need to use the following link: https://us02web.zoom. ush/89275984587 The meeting can also be accessed by phone at 1-346-248-7799. Enter Meeting ID: 892 7598 4587 when prompted. If citizens wish to speak, either during the public forum or when the Mayor requests public comment on an item, citizens attending via Zoom must raise their hand so that the meeting host can allow them to speak. Those who attend the in-person meeting will have the opportunity to speak at the podium. Citizens can also send written comments or questions to City Commissioners by visiting the City of Salina's website at www.salina-ks.gov and using the "Email City Commission" icon on the home page. In order for the commissioners to have an opportunity to review comments in advance of the meeting, please email your comments or questions by 5:00 p.m. the Sunday prior to the Monday meetings. Introduction Under the Kansas Open Meetings Act (KOMA), the public has the right to observe the meetings of the Salina City Commission, unless the City Commission has recessed into a lawfully conducted executive session. The KOMA does not require the opportunity for public comment — that opportunity is provided at the discretion of the City Commission, except as required by State law or City ordinance in certain specific circumstances. This policy outlines the various circumstances under which the City Commission meets and elaborates on the City Commission's Rules of Procedure by addressing the rules regarding the time, place, and manner of public participation in the City Commission meetings from the standpoint of the participating member of the public. This policy is intended to strike a lawful balance between First Amendment protections and the substantial public interests of (1) assuring that meetings of the City Commission can occur in an efficient, orderly, and safe manner and (2) promoting productive public discourse regarding the governance and administration of the City while maintaining decorum in an environment free from interference, distraction, or intimidation, whether real or perceived, by any person present in the meeting room toward Commissioners or members of the public. Submission of Written Information Written information may be submitted to the City Clerk prior to a City Commission meeting for distribution to Commissioners and key staff members or may be presented during the meeting upon recognition by the Mayor as a speaker in the manner described below. Ten (10) copies should be provided to insure that all applicable parties are able to receive and review the information provided. Citizen Forum Citizen Forum provides an opportunity for Salina citizens to address the City Commission on a topic which is not on the meeting agenda. After the Mayor announces Citizen Forum, any citizen wishing to address the City Commission should, in turn, approach the podium to be recognized by the Mayor. Upon recognition by the Mayor, the speaker must indicate his or her name and city of residence and may address the City Commission for no longer than the allowed time period which is typically three (3) minutes but may be altered and announced by the Mayor based upon the number of persons expected to speak during the Citizen Forum. While addressing the City Commission, the speaker may request permission from the Mayor to distribute any written information to Commissioners, the City Manager, and the City Clerk. The City Commission is not expected to take immediate action in response to the presentation. At the discretion of the City Commission, subjects introduced under Citizen Forum may be referred to City staff for follow-up or may become an agenda item for a future meeting. A speaker should not expect to engage in two-way dialogue with the City Commission. A speaker should provide his or her comments for commissioners' consideration at their discretion. Consent Agenda The Consent Agenda assembles routine action items for collective approval in the interest of efficiency of the meeting. Any item may be removed from the Consent Agenda for separate consideration either (a) at the request of a Commissioner or City staff, or (b) by majority vote of the City Commission upon request by a Salina resident directed to City staff or a Commissioner either prior to the start of the meeting or during Citizen Forum without discussion. Public Hearings and Regular Agenda Items Following introduction of any public hearing or regular agenda item, consideration of the item will ordinarily begin with a staff report followed by Commissioners' questions of staff. If the matter involves an applicant, the applicant or the applicant's representative will be given the opportunity to address the City Commission. In the case of a public hearing, the public hearing shall be conducted in the manner required by State law or Salina ordinance and any person entitled to address the City Commission shall be provided that opportunity, regardless of his or her viewpoint on the matter, subject to the allowed time period. In the case of a regular agenda item, subject to the discretion of the City Commission, any interested persons wishing to address the City Commission regarding the subject of the agenda item, regardless of his or her viewpoint on the matter, may be given the opportunity do so, subject to the allowed time period. In the case of either a public hearing or regular agenda item, those allowed to address the City Commission may do so by, in turn, approaching the podium to be recognized by the mayor. Upon recognition by the Mayor, the speaker must indicate his or her name and city of residence and may address the subject of the agenda item for no longer than the allowed time period which is typically three (3) minutes but may be altered and announced by the Mayor based upon the number of persons expected to speak during the public hearing or regular agenda item. While addressing the City Commission, the speaker may request permission from the Mayor to distribute any written information regarding the subject of the agenda item to City Commissioners, the City Manager, and the City Clerk. The speaker should avoid repeating what has already been said and should feel free to simply state whether he or she is or is not in support of the matter being discussed. A speaker should not expect to engage in two-way dialogue with the City Commission. A speaker should provide his or her comments for commissioners' consideration at their discretion. Executive Session The Kansas Open Meetings Act allows the City Commission to recess into an executive session based upon certain justifications outlined in the act. The City Commission may recess into executive session based upon a motion that includes (1) a statement describing the subjects to be discussed during the executive session, (2) the statutory justification for the executive session, and (3) the time and place at which the open meeting shall resume. Executive sessions are closed to the public, however, when conducting an executive session, the City Commission will recess to another location so that members of the public attending the open meeting will be allowed to remain in the meeting room. Study Session The City Commission may meet in study session on topics determined by the City Manager or the City Commission on a specific date and time. As the name suggests, the study session is intended to provide a less formal opportunity for the City Commission to study, discuss, and provide direction to City staff regarding the subject under study. Study sessions are open to the public, however, the extent of public participation is subject to the discretion of the City Commission based upon available time during the study session and the need for public input in order to accomplish the objectives of the City Commission in studying the subject of the study session. Special Limited Public Forum A special limited public forum may be called by the City Commission for the purposes of (a) conducting public discussion and (b) seeking public comment and/or the submission of written information regarding a particular subject matter. A special limited public forum may be convened in the City Commission's regular meeting room or at an alternative, publicly accessible site suitable for the anticipated number of participants in the forum. At the appointed time on the agenda, any persons wishing to address the City Commission regarding the subject of the special limited public forum, regardless of their viewpoint on the matter, may do so by, in turn, approaching the podium or microphone to be recognized by the Mayor. Upon recognition by the Mayor, the speaker must indicate his or her name and city of residence and may address the subject of the special limited public forum for no longer than the allowed time period determined and announced by the mayor based upon the number of persons expected to speak during the forum. While addressing the City Commission, the speaker may request permission from the Mayor to distribute any written information regarding the subject of the special limited public forum to City Commissioners, the City Manager, and the City Clerk. Forms of Communication or Expression Not Allowed in the Meeting Room To assure fulfillment of the substantial public interests outlined above, no member of the public attending the City Commission meeting shall in the meeting room engage in the following forms of communication or expression found by the City Commission to be in conflict with the substantial public interests outlined above and, therefore, not allowed in the meeting room (the "disallowed conduct"): Before, during, or after the meeting: (1) Possessing, placing, or displaying a sign, placard, flag, or banner, regardless of its size, the material of which it is made, or its written, graphic, or symbolic content; During the meeting: (2) Audibly speaking, or making any sound or noise other than while speaking as a speaker recognized by the mayor; (3) Applauding, whistling, cheering, clapping or otherwise expressing agreement with a speaker recognized by the mayor; (4) Booing, jeering, taunting, ridiculing, mocking or otherwise expressing disagreement with a speaker recognized by the mayor; (5) Inaudibly mouthing or gesturing messages deemed to be distracting to other persons in the meeting room; (6) Making available or distributing written materials to those in attendance. Persons attending a City Commission meeting must turn off or set on vibrate all cellular telephones. Any person exhibiting any form of the disallowed conduct will first be warned by the Mayor to cease. If the person continues the disallowed conduct, the Mayor may ask the person to leave the meeting room. If the person does not promptly leave the meeting room, the Mayor may direct that the person be escorted from the meeting room. Agenda Information Copies of the agenda are available in the Office of the City Clerk on Thursday afternoon preceding the regular meetings. Items for the agenda should be submitted to this office prior to noon the Wednesday preceding a regularly scheduled Monday meeting. Information regarding the agenda may be obtained from Room 206 in the City -County Building, located at 300 W. Ash, Salina, KS or visiting our website at www.salina-ks.gov. "CITIZEN PARTICIPATION IS THE CORNERSTONE OF DEMOCRACY" CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS January 23, 2023 4:00 p.m. Mayor Hoppocic asked the Clerk for verification that notice had been sent for today's City Commission meeting. The Clerk replied yes. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City -County Building. A roll call was taken followed by the Pledge of Allegiance and a moment of silence. Those present and comprising a quorum: Mayor Michael L. Hoppock (presiding), Trent W. Davis, M.D., Greg Lenkiewicz, Bill Longbine andrI�arl Ryan. F Also present: Mike Schrage, City Manager, Jacob Wood, Deputy City Manager; Shawn Henessee, Assistant City Manager, on,City Attorney; and JoVonna A. Rutherford, City Clerk. AWARDS AND PROCLAMATIONS (3.1) Recognition of the month of Januaryf National §t6ery and Human Trafficking Prevention; mlinth in the city: Qf .S`alina. Angie White, Sexual Assault Advocate at DVACK, readlhe proclamation ., (3.2) Recognition of the month,,`of, January, 2023, as "National Stalking Awareness Month in the city Qf Salina. ary Cookson",,,,,,Victim Advocate at DVACK, read the proclamatzoi PUBLIC HEAR&d$,AND ITEMS!;SCHEDUL D FOR A CERTAIN TIME None. CONSENT AGENDA ` Approve'the.specral rriinutes of January 6, 2023. �5 2) Approve t14,minutes of "Sanuary 9, 2023. (5 3)onsider concurrence with ;a grant application to the State of Kansas Waste Tire Grant Program Wand autho riz6 the expenditure of matching funds if the grant is awarded for the purehase of recycled rubber tire mulch for the replenishing of rubber mulch surfacing at curtain city park playgrounds. (5.4) Award the�rbid for ' ect number 23005, 2023 Pavement Sealing to Circle C Paving & Construction,;TI C of Goddard, Kansas, in the amount of $490,871.23 with a 5% ($24,543.56) construction contingency for a total project authorization not to exceed $515,414.79 and authorize the City Manager to execute a contract with Circle C Paving & Construction, LLC of Goddard, Kansas, upon fulfillment of all prerequisites under the bid documents. (5.5) Authorize staff to collaborate with Saline County for the submission of BASE 2.0 grant applications for Magnolia Road and Holmes Road upgrade projects and commit $1.5 million as cash match for each application. Mayor Hoppocic requested Item 5.5 be removed from the consent agenda. Page 1 23-0016 Moved by Commissioner Longbine, seconded by Commissioner Lenkiewicz, to approve Items 5.1 through 5.4 of the consent agenda. Aye: (5). Nay (0). Motion carried. Jacob Wood, Deputy City Manager, explained the request, fiscal impact and action options of Item 5.5. A brief discussion followed related to priority order of projects, road locations, status of study on Magnolia Road, scope of projects and total cost. 23-0017 Moved by Commissioner Ryan, seconded by Commissioner Davis, to approve Item 5.5 of the consent agenda authorizing staff to collaborate with Saline County for the submission of BASE 2.0 grant applications for Magnolia Road and Holmes Road upgradeprojects and commit $1.5 million as cash match for each application. Aye: (5). Nay (0). Motro4,'carried. ADMINISTRATION (6.1) Approve Ordinance No. 23-11142 classification of property located ,n Claflin Avenue from R-2 (Multi'r (Multiple — Family Residential) development plan for Phase I and l student housing village) Mayor Hoppock stated that Ordinance No 9, 2023. No comments have been received 23-0018 Moved by Commissioner1lJongbme; seconded by No. 23-11142, on seconds eading Atoll call vote (6.2) Consider in donat na funds for "econd readir g changing the zoning district he southwest corner sof Highland Avenue and — Family Residential):` district to PDD (R-2) krict approvalof a preliminary/final se IA of the proposed Coyote' -Row (tiny home 11142' passed on first reading on January rr, ssioner LeAiewicz, to approve Ordinance taken. Aye`: (5). Nay (0). Motion carried. of a Lenco Bearcat G3 Armored Rescue for the police department. 'olic Doartment, opened with recognition of members of Salina and expressed appreciation for their assistance Gary Hanus, Captain, Sahri'a Police Department, (via Zoom) explained the request, fiscal impact and acttpnoptions A discussion developedrdgarding the tires being run -flat tires but not bullet proof tires, the absence of an operational vehicle since June of 2022, origin of the Wilson Foundation from which funds are being received, comparability to peer cities and generosity of the citizens of Salina. Richard Humphrey, Salina, Kansas, shared his thoughts on the matter. Jon Blanchard, Salina, Kansas, commented on funding sources to include possible liquidation of the I-70 Drug Task Force account and usage of payroll savings. Page 2 A brief discussion developed related to usage of a portion of the forfeiture funds from the I- 70 Drug Task Force and a portion of payroll savings to help fund the item, source of training for employees, and city budget. Norman Mannel, Salina, Kansas, inquired about operation of the vehicle if the operator became incapacitated to which Captain Hanus indicated there would be multiple people in the vehicle trained to operate it in case of an emergency. Brad Nelson, former Chief of the Salina Police Department, (via telephone) provided his thoughts on and support of the item and requested the Governing Body approve the purchase. Mayor Hoppock expressed appreciation to the Poli 23-0019 Moved by Commissioner Longbine, seconded by Cominission6i I Manager to purchase a Lenco Bearcat G3 ARV Ayes (5). Nay (0). (6.3) Approve Resolution No. 23=8141 appointing commissions and committees. "', Foundation for all they do. ;z, to authorize the City carried. Mayor Hoppock explained the'request, fiscal impact, and action options. to citizen boards, 23-0020 Moved by Commissioner Ryan, second4,by Cojnmissioner Davis, to approve Resolution No. 23- 8 101 3-8101 appointing members to citizen boards, commissions and,,,,"committees. Aye: (5). Nay (0). Motion carried. (6.4) Announcement of Mayor's appoinf hent of City;'Commissioners to various boards, commissions tand committees. "51 23-0021 Movedb ,Commissioner Ryan, seconded by"`Commissioner Davis, to approve the Mayor's appointments,; Aye: (5). Nay (O,J. Motion, carried. (6.5) Award the bid f6fl'project"'number 20029, Project Rise Centennial Road Channel Improvements for $x,354,499.25 with a 5% ($67,724.96) construction contingency for a totalproject authorization not to exceed $1,422,224.21 and authorizing the City Manager ;to execute a contract with T&R Construction, Inc. of Salina upon fulfillment of 411�prerequisites under the bid documents. Dan Stack, City Engineer, explained the request, fiscal impact and action options. 23-0022 Moved by Commissioner Lenkiewicz, seconded by Commissioner Ryan, to award the bid for project number 20029, Project Rise Centennial Road Channel Improvements for $1,354,499.25 with a 5% ($67,724.96) construction contingency for a total project authorization not to exceed $1,422,224.21 and authorizing the City Manager to execute a contract with T&R Construction, Inc. of Salina upon fulfillment of all prerequisites under the bid documents. Aye: (5). Nay (0). Motion carried. Page 3 (6.6) Authorize the City Manager to execute a contract for professional services (engineering and architectural design and inspection) with M2 (M Squared) Architects for design and inspection services for a new sanitation and equipment storage building. Jim Kowach, Public Works Operations Manager, explained the request, fiscal impact and action options. A momentary discussion arose related to the contingency percentage and proposed timeline of the project. 23-0023 Moved by Commissioner Ryan, seconded by Commi: Architects and authorize the City Manager to e), (engineering and architectural design and inspection) and inspection services for a new sanitation and eqU Motion carried. (6.7) Authorize the City Manager to execu FORVIS, LLP, Certified Public Aecc ending December 31, 2122, 2023 and Debbie Pack, Director of and action options. 23-0024 Moved by Commissi execute the agreeme 2022, 2023 and 2024 (6.8) Authorize tl for Phase 2 20028 Marthayasker, Dir, A discussion involvement i] project, maxin and budgeting. :(5) nce ' d Admini sioner DaA"' to approve the selection of M2 scute a , contract for professional services wth.IVI2 (M Squared) Architects for design pinent storage building. Aye: (5). Nay (0). an agreement between.the City of Salina and itant for:'an: audit of city" ,records for the years )24, witl%.2 one-year possible extensions. explained the request, fiscal impact ithorize the City Manager to years ending December 31, agreement with Overland Contracting, Inc. I Plant Improvement Project, Project No. explained the request, fiscal impact and action options. resulted pertaining'''to standard process, Overland Contracting, Inc.'s the process; as a subsidiary of Black &Veatch, expanded scope of the zed use of 6cility, age of oldest structure, preserving useful life, planning Norman Mannel, Saliria, Kansas, questioned the viability of the proposed contractor. Jon Blanchard, Salina, Kansas, requested an expected total cost of the project as well as an anticipated impact on citizen water bills. Ms. Tasker indicated she should receive a detailed list from KDHE which would show principal and interest for the entire 20 -year period. Debbie Pack, Director of Finance and Administration, provided information on the projected water rate increases. Page 4 23-0025 Moved by Commissioner Davis, seconded by Commissioner Longbine, to authorize the City Manager to execute an agreement with Overland Contracting, Inc. for Phase 2 of the Wastewater Treatment Plant Improvement Project, Project No. 20028, with a Guaranteed Maximum Price of $37,075,533.00. Aye: (5). Nay (0). Motion carried. (6.9) Authorize the City Manager to approve a change order for Project #22031, Bill Burke Turf Improvements, to Nemaha Sports Construction for certain fencing improvements in the amount of $52,791.00. Jeff Hammond, Director of Parks and Recreation, explained the request, fiscal impact and action options. A discussion ensued which included project of fencing. 23-0026 Moved by Commissioner Longbine, seconded Manager to approve a change order for Projec Sports Construction for certain fencing impro) (0). Motion carried. very of restrooms and completion hinissioner L -:, i 1, Bill Burke Turd in the amount of to authorize the City ivements, to Nemaha 1.00. Aye: (5). Nay DEVELOPMENT BUSINESS�f (7.1) Authorize the City Manager to execute a License, (Right -of -Way User's) Agreement with Delta Communications;., LT,6ba, Clearwaue Fiber to allow the installation of fiber optic and related facilities within the public rights-of-way in the city of Salina for both commercial=and residential services Dean Andrew, Director of Planning, explairnd the request, fiscal impact and action options. Kala ,Maxfield, Clearuvve Ftber, provided` an,,overview of the company and its proposed scope'6f,work hi'lhe cifv' of.Salma. A sliozrt discussion followed'vvhich related to residential areas serviced, completion time of 18 24 months, costs, fights 'o'' way, liability for damage and company representation in Salina <. H Ben Windholi Salina, Kansas, provided his thoughts on the fiber optic network, its location and utility marking, 23-0027 Moved by Commissioner Ryai`seconded by Commissioner Davis, to authorize the City Manager to execute a License (Right -of -Way User's) Agreement with Delta Communications, LLC dba Clearwave Fiber to allow the installation of fiber optic and related facilities within the public rights- of-way in the city of Salina for both commercial and residential services. Aye: (4). Nay (1- Longbine). Motion carried. OTHER BUSINESS Mayor Hoppock inquired about the status of the Schilling groundwater contamination project and asked that an update be provided at a future meeting. Page 5 Mayor Hoppock also requested an update on the availability of the new tennis courts managed by Salina Tennis Alliance. Mike Schrage, City Manager, indicated a Certificate of Occupancy had not yet been issued for the building housing the restrooms but that a temporary Certificate of Occupancy was being prepared. CITIZENs FORUM Mayor Hoppock stated his expectations for Citizen Forum during his term as Mayor. Ben Windholz, Salina, Kansas, thanked Mr. Schrage for his response to his tennis court inquiry and explained the basis of his previous questions related thereto. Mr. Windholz also mentioned water standing on the concrete surrounding the tennis courts which could cause damage to the concrete. Norman Mannel, Salina, Kansas, prov. meetings, citizen forum and a future reces Jon Blanchard, Salina, Kansas, comm investors and landlords, and a change in ADJOURNMENT 23-0028 Moved by Commissioner Ryan, secor Board of City Commissioners be adj adjourned at 6:34 p.m. [SEAL] ATTES JoVonn fish & game department on housing, providihgx,�assistance to existing .t of the City Commission, lssioner;Davis, that the regular meeting of the (5). Nay.(Q). Motion carried. The meeting Michael L. Hoppock, Mayor Page 6 CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 2/6/2023 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL (APPROVAL NO: 5 BY: 1 BVI -�--� ITEM PUBLIC WORKS FINAL AP ROVAL: NO: 2 G Page 1 I BY: DANIEL R. STACK, P.E. I BY ITEM: Authorize the City Manager to execute an Amended and Restated Public/Private Partnership Agreement for the Smoky Hill River Greenway Trail from the YMCA to Ohio Street. BACKGROUND: On July 12, 2021, the City Commission authorized the City Manager to enter into a public/private partnership agreement ('Agreement") with the Friends of the River Foundation (Foundation) for the Smoky Hill River Greenway Trail from Ohio Street to the YMCA (Project). The two-phase Project is planned to provide a shared -use linear park trail connecting Ohio Street and Kenwood Park. The original Agreement anticipated construction of an eastern segment of the Project as Phase 1 and a western segment of the Project as Phase 2. Since that time, the combination of the donation of property by the YMCA of Salina, the City's ownership of a segment of the Project known as Lincal Park (river property adjacent and south of the YMCA soccer fields), and the completion of tree removal from portions of those areas has prompted a re-evaluation of the dimensions and preferred order of phases of construction. This has resulted in a plan to first construct a Western Segment (approximately 2,575 linear feet) as amended Phase 1 followed by construction of an Eastern Segment (approximately 1,275 linear feet) as amended Phase 2 further depicted on the attached Exhibit A. Staff has finalized design for the approximately 2,575 feet of trail around the YMCA (amended Phase Western Segment) and plans to advertise this segment for bidding on February 16, 2023. Staff is still in the process of pursuing property acquisition for portions of the original phase 1 (Eastern Segment). The attached Agreement addresses the basis upon which the City and the Foundation intend to provide for bidding, financing, contract award, and construction of the Project. The Friends of the River Foundation have raised more than the estimated funds needed for the amended Phase 1 Western Portion and they're finalizing pledges for their share of Phase 2. The key aspects of the Agreement are unchanged from the previous agreement except for the elimination of the letter of credit requirement along with phasing edits as further referenced above. The Foundation has dedicated funds in the bank for phase 1 with grants/commitments for phase 2 after phase 1 is constructed. Also, per the amended agreement, phase 2 bidding will not move forward until the Foundation provides "...written confirmation of the availability of its funds on hand in the amount of $208,000 for use in payment of its share of the Phase 2 total project cost. FISCAL NOTE: The currently estimated total project costs for both Phase 1 and Phase 2 are updated as follows. Project Cost Previous Cost Phase 1 Phase 2 Design $61,190 $ 0 $ 0 Tree removal (paid by City) $ 37,000 Tree removal $ 48,000 AGENDA SECTION NO: CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION Construction Real Estate/Easements Estimated Total Project Cost Approximate Trail Length ORIGINATING DEPARTMENT: PUBLIC WORKS BY: DANIEL R. STACK, P.E. $411,000 $ 448,000 2,575 L.F. DATE TIME 2/6/2023 4:00 P.M. FISCAL APPROVAL: BY: FINAL APPROVAL: BY: $360,000 10,000 $418,000 1,275 L.F. The Phase 2 segment cost is estimated higher due to the proximity to the adjacent properties which will require steeper slope cuts and fills with trail base work near the river bottom. Based upon the currently estimated total project costs for both Phase 1 and Phase 2 of the Project, the City and the Foundation anticipate the following allocation of funding for both Phase 1 and Phase 2 of the Project: Funding Source Phase 1 Phase 2 City $240,000* $210,000 Foundation/YMCA Donors $208,000 $208,000 $448,000 $418,000 The City's portion of each phase as amended will be funded by the City of Salina Federal Exchange Fund Receipts. A total of $580,000 was received in 2022 so a similar amount is expected for 2023. It is anticipated that the remaining funds will be utilized for miscellaneous street and trail projects. COMMISSION ACTION OR RECOMMENDED ACTION: Staff has identified the following options for the City Commission's consideration: 1.) Authorize the City Manager to execute the amended and restated Public/Private Partnership Agreement for the Smoky Hill River Greenway Trail from the YMCA to Ohio Street. 2.) Authorize the City Manager to execute the amended and restated Public/Private Partnership Agreement for the Smoky Hill River Greenway Trail from the YMCA to Ohio Street, with amendments as the City Commission deems appropriate. 3.) Postpone consideration of the amended and restated Public/Private Partnership Agreement to a specified date and time, and provide staff direction regarding additional information or amendments the City Commission would like to request for their further consideration. 4.) Do not authorize the City Manager to execute the amended and restated Public/Private Partnership Agreement, and provide staff further direction. Staff recommends Option #1. Attachments: Amended and Restated Agreement Smoky Hill Trail Exhibit A 7/12/2021 Staff Report with Agreement CC: Jane Anderson, Friends of the River Foundation Executive Director AMENDED AND FULLY RESTATED PUBLIC/PRIVATE PARTNERSHIP AGREEMENT for the SMOKY HILL RIVER GREENWAY TRAIL FROM OHIO STREET TO THE YMCA This Amended and Fully Restated Public/Private Partnership Agreement (the "Restated Agreement") is entered into this day of 2023 between the CITY OF SALINA, KANSAS, a Kansas municipal corporation, ("City") and the FRIENDS OF THE RIVER FOUNDATION, a Kansas not-for-profit corporation, ("Foundation"). Recitals A. The City and the Foundation are parties to a Public/Private Partnership Agreement dated July 15, 2021 (the "Original Agreement") for construction of the two-phase Greenway Trail project (the "Project"), which will provide a shared -use linear park trail connecting Bill Burke Park and Kenwood Cove Aquatic Park. B. The Original Agreement anticipated construction of an eastern segment of the Project as Phase 1 and a western segment of the Project as Phase 2. The combination of the donation of property by the YMCA of Salina, Kansas; the City's ownership of a segment of the Project known as Lincal Park; and the completion of tree removal from portions of those areas has prompted a re-evaluation of the dimensions and preferred order of phases of construction of the Project resulting in a plan to first construct a Western Segment (approximately 2,575 L.F.) as Phase 1 followed by construction of an Eastern Segment (approximately 1,275 L.F.) as Phase 2, as depicted on the attached and incorporated Exhibit A. C. The currently estimated total project costs for both Phase 1 and Phase 2, referred to as the "Phase 1 — Currently Estimated Total Project Cost" and the "Phase 2 — Currently Estimated Total Project Cost" are: Proiect Cost Design Tree removal (paid by City) Tree removal Construction Real Estate/Easements Estimated Total Project Cost Approximate Trail Length Previous Cost Phase I Phase 2 $61,190 $ 0 $ 0 $ 37,000 $ 48,000 $ 411,000 $360,000 $ 0 $ 10,000 $ 448,000 $418,000 2,575 L.F. 1,275 L.F. D. Based upon the currently estimated total project costs for both Phase 1 and Phase 2 of the Project, the City and the Foundation anticipate the following allocation of funding for both Phase 1 and Phase 2 of the Project: Funding Source Phase I Phase 2 City $240,000* $210,000 Foundation/YMCA Donors $208,000 $208,000 $448,000 $418,000 *The City's share for Phase 1 of $240,000 includes $37,000 previously paid for tree removal and $203,000 toward the contract for construction of Phase 1. E. The City and the Foundation desire by this Replacement Agreement to amend and fully restate the Original Agreement by addressing the basis upon which the City and the Foundation intend to provide for bidding, financing, contract award, and construction of both Phase 1 and Phase 2 of the Project. THE PARTIES agree and covenant: 1. Amendment and Restatement. The Original Agreement is amended and frilly restated pursuant to the terms of this Restated Agreement. PHASE I — WESTERN SEGMENT 2. Property acquisition. The City has completed acquisition of the real estate interests necessary to construct Phase 1 of the Project ("Phase 1 Property Acquisition") through donation by the YMCA of Salina, Kansas. 3. Design, cost estimate, and bidding. Based upon the current design and cost estimate for Phase 1 of the Project prepared by the City and HDR, Inc., city engineering staff will advertise and obtain bids for Phase 1 of the Project in accordance with the City's sealed bid practices. 4. Identification of lowest responsible bidder and Bid -based Estimated Total Proiect Cost. Subject to the City's right to reject any and all bids as reserved in its bid documents, within 60 days of the bid opening the city engineer will determine and advise the Foundation's executive director, by email, of: (a) The City's recommended lowest responsible bidder; (b) The anticipated Phase I construction cost based upon the bid of the recommended lowest responsible bidder plus a contingency of ten percent ("Phase 1 Bid -based Estimated Cost of Construction"); and (c) The "Phase 1 — Bid -based Estimated Total Project Cost" consisting of total of: (i) The Phase 1 cost of tree removal in the amount of $37,000 previously paid by the City, plus (ii) The Phase 1 Bid -based Estimated Cost of Construction. N 5. City's and Foundation's shares of Phase 1. The City represents that it has available funding on hand and agrees to contribute a total of $240,000 toward the Phase 1 total project cost, including $37,000 previously paid for Phase 1 tree removal, subject to the terms of Sections 6 and 8. The Foundation represents that it has $208,000 in available fiends on hand and agrees to contribute its share of the Phase 1 total project cost of not to exceed $208,000, subject to the terms of Sections 6 and 8. 6. Foundation's share of Phase 1. The Foundation's share of the Phase 1 total project cost will be a function of whether the Phase 1 — Bid -based Estimated Total Project Cost is (a) equal to or less than or (b) more than the Phase 1 — Currently Estimated Total Project Cost of $448,000, as follows: (a) If the Phase 1 — Bid -based Estimated Total Project Cost is equal to or less than the Phase 1— Currently Estimated Total Project Cost of $448,000, then within 14 days of the City's email notification to the Foundation of the Phase 1 — Bid -based Estimated Total Project Cost, the Foundation agrees to deliver to the City funds equal to the Phase 1 — Bid -based Estimated Total Project Cost less the City's $240,000 contribution toward Phase 1 total project costs as (a) the means of funding the Foundation's share of the Phase 1 — Bid -based Estimated Total Project Cost, (b) evidence of the Foundation's concurrence with the recommended lowest responsible bidder and (c) the means of assuring the City's compliance with the Kansas cash basis law in anticipation of entering into the contract for construction of Phase 1 of the Project. The funds delivered by the Foundation to the City will be held on account and administered by the City's Department of Finance and Administration. (b) If the Phase 1 — Bid -based Estimated Total Project Cost is greater than the Phase 1 — Currently Estimated Total Project Cost for Phase 1 of $448,000, the City and the Foundation shall each have the opportunity, but not the obligation, to negotiate an allocation of responsibility for the difference within a timeframe that does not jeopardize the City's ability to award the contract to the lowest responsible bidder. If a negotiated allocation of responsibility for the difference cannot be achieved within that timeframe, the City will not award the contract for construction of Phase 1 of the Project and this Agreement shall terminate and be of no further force and effect. 7. Contract award. Following receipt of the Foundation's share of the Phase 1 — Bid - based Estimated Total Project Cost, the city engineer will present for consideration by the City's governing body (a) the acknowledgement of receipt by the City of the Foundation's share of the Phase 1 — Bid -based Estimated Total Project Cost and (b) the recommended award of the contract for Phase 1 of the Project to the lowest responsible bidder. If for any reason the contract for construction of Phase 1 of the Project is not awarded, the fiends contributed by the Foundation as its share of the Phase 1 — Bid -based Estimated Total Project Cost will be refunded to the Foundation. 8. Contract management, final allocation of cost. City engineering staff will be responsible for (a) administration of the contract for construction of Phase 1 of the Project, subject to all City requirements for public improvements to be constructed on the City's property; (b) inspection of the work performed under the contract; and (c) administration of payments to the 3 contractor. If the actual total cost of Phase 1 of the Project ("Phase 1 — Actual Total Project Cost') is ultimately less than the Phase 1 — Bid -based Estimated Total Project Cost, the City will refund to the Foundation an amount equal to the Phase 1 — Bid -based Estimated Total Project Cost less the Phase 1 — Actual Total Project Cost as soon as reasonably possible following project close-out. If circumstances develop during Phase 1 of the Project resulting in cost overruns such that the Phase 1 — Actual Total Project Cost is ultimately greater than the Phase 1 — Bid -based Estimated Total Project Cost, the City and the Foundation agree to negotiate a reasonable allocation of responsibility for the unanticipated cost in excess of the Phase 1 — Bid -based Estimated Total Project Cost prior to the City's approval of any change orders resulting in project costs in excess of the Phase 1 — Bid -based Estimated Total Project Cost. PHASE 2 — EASTERN SEGMENT 9. Property acquisition. The City agrees to continue to diligently pursue completion of the process to acquire the real estate interests and temporary easements necessary to construct Phase 2 of the Project ("Phase 2 Property Acquisition") and to document amounts actually paid to property owners in the course of completion of Phase 2 Property Acquisition ("Phase 2 — Cost of Property Acquisition"). 10. Design, cost estimate, and bidding. Upon fulfillment of the preconditions of (a) completion of the Phase 2 Property Acquisition and (b) receipt by the City of the Foundation's written confirination of the availability of its funds on hand in the amount of $208,000 for use in payment of its share of the Phase 2 total project cost, and based upon the current design and cost estimate for Phase 2 of the Project prepared by HDR, Inc., city engineering staff will advertise and obtain bids for Phase 2 of the Project in accordance with the City's sealed bid practices. 11. Identification of lowest responsible bidder and Bid -based Estimated Total Project Cost. Subject to the City's right to reject any and all bids as reserved in its bid documents, within 60 days of the bid opening the city engineer will determine and advise the Foundation's executive director, by email, of- (a) £ (a) The City's recommended lowest responsible bidder; (b) The anticipated Phase 2 construction cost based upon the bid of the recommended lowest responsible bidder plus a contingency of ten percent ("Phase 2 — Bid -Based Estimated Cost of Construction"); and (c) The "Phase 2 — Bid -based Estimated Total Project Cost" consisting of the total of: (i) The Phase 2 — Cost of Property Acquisition, plus (ii) The Phase 2 — Bid -based Estimated Cost of Construction, plus (iii) The Phase 2 — Bid -based Cost of Tree Removal. 12. City's and Foundation's shares of Phase 1. The City represents that it has available funding on hand and agrees to contribute a total of $210,000 toward the Phase 2 total project cost, subject to the terms of Sections 13 and 15. The Foundation represents that after paying its share of the Phase 1 project costs, it anticipates having $208,000 in available funds on hand and agrees to contribute its share of the Phase 2 project costs of not to exceed $208,000, subject to the terms of Sections 13 and 15. 4 13. Foundation's share of Phase 1. The Foundation's share of the Phase 2 total project cost will be a function of whether the Phase 2 — Bid -based Estimated Total Project Cost is (a) equal to or less than or (b) more than the Phase 2 — Currently Estimated Total Project Cost of $418,000, as follows: (a) If the Phase 2 — Bid -based Estimated Total Project Cost is equal to or less than the Phase 2 — Currently Estimated Total Project Cost of $418,000, then within 14 days of the City's email notification to the Foundation of the Phase 2 — Bid -based Estimated Total Project Cost, the Foundation agrees to deliver to the City funds equal to the Phase 2 — Bid -based Estimated Total Project Cost less the City's $210,000 contribution toward Phase 2 total project costs as (a) the means of funding the Foundation's share of the Phase 2 — Bid -based Estimated Total Project Cost, (b) evidence of the Foundation's concurrence with the recommended lowest responsible bidder and (c) the means of assuring the City's compliance with the Kansas cash basis law in anticipation of entering into the contract for construction of Phase 2 of the Project. The funds delivered by the Foundation to the City will be held on account and administered by the City's Department of Finance and Administration. (b) If the Phase 2 — Bid -based Estimated Total Project Cost is greater than the Phase 2 — Currently Estimated Total Project Cost for Phase 2 of $418,000, the City and the Foundation shall each have the opportunity, but not the obligation, to negotiate an allocation of responsibility for the difference within a timeframe that does not jeopardize the City's ability to award the contract to the lowest responsible bidder. If a negotiated allocation of responsibility for the difference cannot be achieved within that timeframe, the City will not award the contract for construction of Phase 2 of the Project and this Agreement shall terminate and be of no further force and effect. 14. Contract award. Following receipt of the Foundation's share of the Phase 2 — Bid - based Estimated Total Project Cost, the city engineer will present for consideration by the City's governing body (a) the acknowledgement of receipt by the City of the Foundation's share of the Phase 2 — Bid -based Estimated Total Project Cost and (b) the recommended award of the contract for Phase 2 of the Project to the lowest responsible bidder. If for any reason the contract for construction of Phase 2 of the Project is not awarded, the funds contributed by the Foundation as its share of the Phase 2 — Bid -based Estimated Total Project Cost will be refunded to the Foundation. 15. Contract management, final allocation of cost. City engineering staff will be responsible for (a) administration of the contract for construction of Phase 2 of the Project, subject to all City requirements for public improvements to be constructed on the City's property; (b) inspection of the work performed under the contract; and (c) administration of payments to the contractor. If the actual total cost of Phase 2 of the Project ("Phase 2 — Actual Total Project Cost') is ultimately less than the Phase 2 — Bid -based Estimated Total Project Cost, the City will refi►nd to the Foundation an amount equal to the Phase 2 — Bid -based Estimated Total Project Cost less the Phase 2 — Actual Total Project Cost as soon as reasonably possible following project close-out. If circumstances develop during Phase 2 of the Project resulting in cost overruns such that the Phase 2 — Actual Total Project Cost is ultimately greater than the Phase 2 — Bid -based Estimated 5 Total Project Cost, the City and the Foundation agree to negotiate a reasonable allocation of responsibility for the unanticipated cost in excess of the Phase 2 — Bid -based Estimated Total Project Cost prior to the City's approval of any change orders resulting in project costs in excess of the Phase 2 — Bid -based Estimated Total Project Cost. GENERAL TERM 16. Time of the essence. Time is of the essence in relation to the obligations of the parties under this Restated Agreement. 17. Not Assi ng able. This Restated Agreement is unique to the role and circumstances of each of the parties such that the respective rights and obligations of the parties pursuant to this Restated Agreement shall not be assignable, in whole or in part, by either party. 18. Amendments. Neither this Restated Agreement nor any of its terms may be changed or modified, waived, or terminated except by an instrument in writing signed by an authorized representative of the party against whom the enforcement of the change, waiver, or termination is sought. 19. Binding Effect. This Restated Agreement shall be binding upon the parties and their successors. 20. Merger Clause. These terms are intended by the parties as a complete, conclusive, and final expression of all the conditions of their Restated Agreement. The duly authorized officers of each of the parties have executed this Restated Agreement effective as of the day and year first written above. CITY OF SALINA, KANSAS ATTEST: Michael D. Schrage, City Manager JoVonna A. Rutherford, City Clerk FRIENDS OF THE RIVER FOUNDATION ATTEST: IIn Dr. Brad Stuewe, President Brigid Hall, Board Secretary 0 11 MwflNM' 12 wy�Fq !r > ,}� i � 1 {�' Y' t.. Z F 4 • ` t. 6 q•, I y " �• , oil Ya LL• f V to Koo Ott U �( o Haag lyy v y: `� •s: 3i :iK �[ k s ,� 1 �7 F �. = a v o . 1 iiittt��� c N E /k[kl�kyw P F m aaplad t.:l 1. MA lsl � N �kN _.; �i •It 4 r ti OF fu Mil u4 W p N 4 �iMEW 1i d N , a LnE CD= CU 1 sur: 0 ell i i1 E � I I � �' •'' ^ 1 ,'ia r e f CITY OF SAUNA REQUEST FOR CITY COMMISSION ACTION DATE TIME 07/12/2021 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: =APP NO: 6 UTILITIES DEPARTMENT ITEM Page 1 5 BY: Martha Tasker `J/f f BY: ITEM: Authorize the City Manager to execute the Public/Private Partnership Agreement for t e Smoky Hill River Greenway Trail from Ohio Street to the YMCA. BACKGROUND: Refer to the attached staff report dated March 22, 2021 where the City Commission approved a proposal from the Friends of the River Foundation (Foundation) for a Public/Private Partnership for the Smoky Hill River Greenway Trail from Ohio Street to the YMCA (Project). The two-phase Project will provide a shared -use linear park trail connecting Bill Burke Park and Kenwood Cove Aquatic Park. The currently estimated total project cost for both Phase 1 and Phase 2 of the Project are as follows: Project Cost Previous Cost Phase 1 Phase 2 Design $ 61,190 $ 0 $ 48,000 Construction $448,000 $360,000 Real Estate/Easements 10,000 $ 0 Estimated Total Project Cost $458,000 $408,000 Trail Length 2,350 L.F. 1,500 L.F. Exhibit A of the attached Agreement depicts Phase 1 and Phase 2 of the Project. Based upon the currently estimated total project costs, the City and Foundation anticipate the following allocations of funding for both Phase 1 and Phase 2: Funding Source City Foundation/YMCA Donors Phase 1 Phase 2 $250,000 $200,000 $208,0000) $208,000 $458,000 $408,000 (1) A pledge of $100,000 in 2021, a pledge of $100,000 to be received in April 2022 (Irrevocable Standby Letter of Credit), and remaining $8,000 from Friends of the River Foundation The attached Agreement addresses the basis upon which the City and the Foundation intend to provide for bidding, financing, contract award, and construction of Phase 1 of the Project prior to the Friends of the River Foundation receiving the second pledge of $100,000 in April 2022. The key aspects of the Agreement are as follows: 1. Property acquisition. The City will acquire the real estate interests and temporary easements necessary to construct Phase 1 of the Project. AGENDA SECTION NO: ITEM NO: Page 2 CITY OF S LINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 07/12/2021 4:00 P.M. ORIGINATING DEPARTMENT: UTILITIES DEPARTMENT BY: Martha Tasker FISCAL APPROVAL: BY: FINAL APPROVAL: 2. Design cost estimate and bidding. Upon completion of the Phase 1 Property Acquisition, the City will advertise and obtain bids for Phase 1 of the Project. 3. Identification of lowest responsible bidder. The City will determine and advise the Foundation's executive director, by email, of the following: ® Lowest responsible bidder ® Phase 1 — Bid -based Estimated Cost of Construction, includes a 10% contingency ® Phase 1 — Bid -based Estimated Total Project Cost, includes property acquisition and construction cost with contingency 4. City share of Phase 1. The City agrees to contribute $250,000 toward the Phase 1 — Estimated Total Project Cost, subject to the terms of Section 5. 5. Foundation's share of Phase 1. The Foundation's share of the cost of Phase 1 of the Project will be a function of whether the Phase 1 — Bid -based Estimated Total Project cost is (a) equal to or less than or (b) more than the Phase 1 — Currently Estimated Total Project Cost of $458,000, as follows: (a) If the Phase 1 — Bid -based Estimated Total Project Cost is equal to or less than the Phase 1 — Currently Estimated Total Project Cost for Phase 1 of $458,000, within 14 days of the City's email notification to the Foundation of the Phase 1 — Bid -based Estimated Total Project Cost, the Foundation agrees to deliver to the City, funds equal to the Phase 1 — Bid -based Estimated Total Project Cost less the City's $250,000 contribution. The funds delivered by the Foundation to the City will be held on account and administered by the City's Department of Finance and Administration. (b) If the Phase 1 — Bid -based Estimated Total Project Cost is greater than the Phase 1 — Currently Estimated Total Project Cost for Phase 1 of $458,000, the City and the Foundation shall each have the opportunity, but not the obligation, to negotiate an allocation of responsibility for the difference within a timeframe that does not jeopardize the City's ability to award the contract to the lowest responsible bidder. If a negotiated allocation of responsibility for the difference cannot be achieved within that timeframe, the City will not award the contract for the construction of Phase 1 of the Project and this Agreement shall terminate and be of no further force and effect. 6. Foundation's share secured by letter of credit. The Foundation's obligation to deliver to the City its share of the Phase 1 — Bid -based Estimated Total Project Cost as described in Section 5 above is secured by Irrevocable Standby Letter of Credit in the amount of $100,000. Refer to Exhibit B of the Agreement for a copy of the Letter of Credit. AGENDA SECTION NO: ITEM NO: Page 3 CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 07/12/2021 4:00 P.M. ORIGINATING DEPARTMENT UTILITIES DEPARTMENT BY: Martha Tasker FISCAL APPROVAL: BY: FINAL APPROVAL: L3'0 7. Contract award. Following receipt of the Foundation's share of the Phase 1 — Bid -based Estimated Total Project Cost, the City's governing body will award the construction contract for Phase 1 of the Project to the lowest responsible bidder. If for any reason the contract for construction of the Project is not awarded, the funds contributed by the Foundation will be refunded to the Foundation. 8. Contract management, final allocation of cost. The City will be responsible for the following: • Administration of the contract for construction • Inspection of the work performed under the construction contract • Administration of payments to the contractor If the Phase 1 — Actual Total Project Cost is ultimately less than the Phase 1 — Bid -based Estimated Total Project Cost, the City will refund the difference to the Foundation upon close-out. If circumstances develop during Phase 1 of the Project resulting in cost overruns such that the Phase 1 — Actual Total Project Cost is ultimately greater than the Phase 1 — Bid -based Estimated Total Project Cost, the City and the Foundation agree to negotiate a reasonable allocation of responsibility for the unanticipated cost prior to the City's approval of any change orders resulting in project costs in excess of the Phase 1 — Bid -based Estimated Total Project Cost. FISCAL NOTE: The City's portion of the Phase 1 Project is $250,000 and will be funded by the City of Salina Federal Exchange Fund Receipts. A total of $580,000 will be received in 2021. It is anticipated that the remaining funds will be utilized for miscellaneous street and trail projects. COMMISSION ACTION OR RECOMMENDED ACTION: Staff has identified the following options for the City Commission's consideration: 1.) Authorize the City Manager to execute the Public/Private Partnership Agreement for the Smoky Hill River Greenway Trail Project from Ohio Street to the YMCA. 2.) Authorize the execution of the Agreement with amendments, as the City Commission deems appropriate. 3.) Postpone authorizing execution of the Agreement to a specified date and time and provide staff direction regarding additional information or amendments the City Commission would like to request for their further consideration. 4.) Vote to deny execution of the Agreement resulting in Phase 1 of the Smoky Hill River Greenway Trail Project being delayed to mid -year 2022. Staff recommends Option #1. Attachments: 3/12/2021 Staff Report Public/Private Partnership Agreement for Smoky Hill River Greenway Trail from Ohio Street to the YMCA PUBLIC/PRIVATE PARTNERSHIP AGREEMENT for the SMOKY HILL RIVER GREENWAY TRAIL FROM OHIO STREET TO THE YMCA This Public/Private Partnership Agreement ("Agreement') is entered into this Whday of July 2021 between the CITY OF SALINA, KANSAS, a Kansas municipal corporation, ("City") and the FRIENDS OF THE RIVER FOUNDATION, a Kansas not-for-profit corporation, ("Foundation"). Recitals A. The two-phase Greenway Trail project (the "Project') will provide a shared -use linear park trail connecting Bill Burke Park and Kenwood Cove Aquatic Park. B. The currently estimated total project costs for both Phase 1 and Phase 2 of the Project are: Proiect Cost Previous Cost Phase 1 Phase 2 Design $61,190 $ 0 $ 48,000 Construction $ 448,000 $360,000 Real Estate/Easements $ 10.000 $ 0 Estimated Total Project Cost $ 458,000 $408,000 Trail Length 2,350 L.F. 1,500 L.F. C. The attached and incorporated Exhibit A depicts Phase 1 and Phase 2 of the Project. D. Based upon the currently estimated total project costs for both Phase 1 and Phase 2 of the Project, the City and the Foundation anticipate the following allocation of funding for both Phase 1 and Phase 2 of the Project: Funding Source Phase 1 Phase 2 City $250,000 $200,000 Foundation/YMCA Donors $208,000 $208,000 $458,000 $408,000 E. This Agreement addresses the basis upon which the City and the Foundation intend to provide for bidding, financing, contract award, and construction of Phase 1 of the Project based upon the currently estimated total project cost for Phase 1 of the Project in the amount of $458,000 (Phase 1 — Currently Estimated Total Project Cost of $458,000"). THE PARTIES agree and covenant: 1. Prope acquisition. The City agrees to diligently pursue completion of the process to acquire the real estate interests and temporary easements necessary to construct Phase I of the Project ("Phase 1 Property Acquisition") and to document amounts actually paid to property a '� owners in the course of completion of Phase 1 Property Acquisition ("Phase l — Cost of Property Acquisition"). 2. Design, cost estimate, and bidding. Upon completion of the Phase I Property Acquisition and based upon the current design and cost estimate for Phase I of the Project prepared by HDR, Inc., city engineering staff will advertise and obtain bids for Phase l of the Project in accordance with the City's sealed bid practices. 3. Identification of lowest responsible bidder. Subject to the City's right to reject any and all bids as reserved in its bid documents, within 60 days of the bid opening the city engineer will determine and advise the Foundation's executive director, by email, of (a) the City's recommended lowest responsible bidder; (b) the anticipated Phase 1 construction cost based upon the bid of the recommended lowest responsible bidder plus a contingency of ten percent ("Phase 1— Bid -Based Estimated Cost of Construction"); and (c) the total of the Phase l — Cost of Property Acquisition plus the Phase I — Bid -Based Estimated Cost of Construction ("Phase 1 — Bid -based Estimated Total Project Cost"). 4. City's share of Phase 1. The City agrees to contribute $250,000 toward the Phase I — Bid -based Estimated Total Project Cost, subject to the terms of Section 5. 5. Foundation's share of Phase 1. The Foundation's share of the cost of Phase 1 of the Project will be a function of whether the Phase I — Bid -based Estimated Total Project Cost is (a) equal to or less than or (b) more than the Phase 1 — Currently Estimated Total Project Cost of $458,000, as follows: (a) If the Phase I — Bid -based Estimated Total Project Cost is equal to or less than the Phase 1 — Currently Estimated Total Project Cost for Phase I of $458,000, within 14 days of the City's email notification to the Foundation of the Phase I — Bid -based Estimated Total Project Cost, the Foundation agrees to deliver to the city engineer funds equal to the Phase I — Bid -based Estimated Total Project Cost less the City's $250,000 contribution as (a) the means of funding the Foundation's share of the Phase 1 — Bid -based Estimated Total Project Cost, (b) evidence of the Foundation's concurrence with the recommended lowest responsible bidder and (c) the means of assuring the City's compliance with the Kansas cash basis law in anticipation of entering into the contract for construction of Phase 1 of the Project. The funds delivered by the Foundation to the city engineer will be held on account and administered by the City's Department of Finance and Administration. (b) If the Phase 1 — Bid -based Estimated Total Project Cost is greater than the Phase 1 — Currently Estimated Total Project Cost for Phase 1 of $458,000, the City and the Foundation shall each have the opportunity, but not the obligation, to negotiate an allocation of responsibility for the difference within a timeframe that does not jeopardize the City's ability to award the contract to the lowest responsible bidder. If a negotiated allocation of responsibility for the difference cannot be achieved within that timeframe, the City will not award the contract for construction of Phase I of the Project and this Agreement shall terminate and be of no further force and effect. 19 6. Foundation's share secured by letter of credit. The Foundation's obligation to deliver to the City its share of the Phase I — Bid -based Estimated Total Project Cost as described in Section 5 above is secured by Irrevocable Standby Letter of Credit No. 105665 dated June 2, 2021, issued by First Bank Kansas as "Advising Bank" in favor of the City as "Beneficiary" for the account of the Foundation as "Applicant" in the amount of $100,000, a copy of which is attached and incorporated as Exhibit B (the "Letter of Credit"). The original of the Letter of Credit shall be delivered to the city clerk for safekeeping as a precondition of the City's execution of this Agreement. 7. Contract award. Following receipt of the Foundation's share of the Phase I — Bid - based Estimated Total Project Cost, the city engineer will present for consideration by the City's governing body (a) the acknowledgement of receipt by the City of the Foundation's share of the Phase 1 — Bid -based Estimated Total Project Cost and (b) the recommended award of the contract for Phase 1 of the Project to the lowest responsible bidder. If for any reason the contract for construction of Phase I of the Project is not awarded, the funds contributed by the Foundation as its share of the Phase I — Bid -based Estimated Total Project Cost will be refunded to the Foundation. 8. Contract management, final allocation of cost. City engineering staff will be responsible for (a) administration of the contract for construction of Phase 1 of the Project, subject to all City requirements for public improvements to be constructed on the City's property; (b) inspection of the work performed under the contract; and (c) administration of payments to the contractor. If the actual total cost of Phase 1 of the Project ("Phase 1 — Actual Total Project Cost') is ultimately less than the Phase 1 — Bid -based Estimated Total Project Cost, the City will refund to the Foundation an amount equal to the Phase 1 — Bid -based Estimated Total Project Cost less the Phase I — Actual Total Project Cost as soon as reasonably possible following project close-out. If circumstances develop during Phase 1 of the Project resulting in cost overruns such that the Phase I — Actual Total Project Cost is ultimately greater than the Phase I — Bid -based Estimated Total Project Cost, the City and the Foundation agree to negotiate a reasonable allocation of responsibility for the unanticipated cost in excess of the Phase I — Bid -based Estimated Total Project Cost prior to the City's approval of any change orders resulting in project costs in excess of the Phase 1 — Bid -based Estimated Total Project Cost. 9. Time of the essence. Time is of the essence in relation to the obligations of the parties under this Agreement. 10. Not Assignable. This Agreement is unique to the role and circumstances of each of the parties such that the respective rights and obligations of the parties pursuant to this Agreement shall not be assignable, in whole or in part, by either party. 11. Amendments. Neither this Agreement nor any of its terms may be changed or modified, waived, or terminated except by an instrument in writing signed by an authorized representative of the party against whom the enforcement of the change, waiver, or termination is sought. 12. Binding Effect. This Agreement shall be binding upon the parties and their successors. 13. Merger Clause. These terms are intended by the parties as a complete, conclusive, and final expression of all the conditions of their Agreement. The duly authorized officers of each of the parties have executed this Agreement effective as of the day and year first written above. CITY OF SALINA, KANSAS Cc - By: AA: -6:: chae . Schrage, City Manager FRIENDS OF THE RIVER FOUNDATION By: D Guy D. Walker, President A 9rrno-r. 4 ATTEST: By: Brigid Hall, Board Secretary CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 02/06/2023 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPRO AL: NO: 6 BY: ITEM City Clerk's Office FINAL APPROVAL: NO: � Page 1 BY: JoVonna A. Rutherford, City BY: Clerk ITEM: Ordinance No. 22-11122 Second reading Ordinance No. 22-11122 changing the zoning district classification from A-1 (Agricultural) to R-1 (Single -Family Residential) and R-2 (Multi -Family Residential) on a 46.84 acre unplatted tract of land located on the west side of Holmes Road north of Magnolia Road. BACKGROUND: Ordinance No. 22-11122 was passed on first reading on June 27, 2022 with second reading held in abeyance until the property was final platted. Since that time Magnolia Hills, Inc. has completed the final platting of this property. FISCAL NOTE: There is no fiscal impact associated with the rezoning of this property. COMMISSION ACTION OR RECOMMENDED ACTION: Staff has identified the following options for the City Commission's consideration: 1.) Approve Ordinance No. 22-11122 on second reading. 2.) Approve Ordinance No. 22-11122 on second reading with amendments as the City Commission deems appropriate. 3.) Postpone consideration of Ordinance No. 22-11122 on second reading to a specified date and time and provide staff direction regarding additional information or amendments the City Commission would like to request for their further consideration. 4.) Vote to deny Ordinance No. 22-11122 on second reading. If the City Commission declines to approve the ordinance, this property would retain its Agricultural zoning and could not be developed for commercial purposes. Staff recommends Option #1 Attachments: Ordinance No. 22-11122 Summary published in The Salina Journal on February , 2023 Posted on the City of Salina website from February to February , 2023 ORDINANCE NUMBER 22-11122 AN ORDINANCE AMENDING ORDINANCE NUMBER 8526, CODIFIED AS CHAPTER 42 OF THE SALINA CODE, AND THE ZONING DISTRICT MAP OF THE CITY OF SALINA, KANSAS BY REZONING AND PRESCRIBING THE PROPER USES OF CERTAIN PROPERTY WITHIN THE CITY. BE IT ORDAINED by the Governing Body of the City of Salina, Kansas: Section 1. Findings. In relation to the following described real estate: Magnolia Hills Estates Addition No. 3 to the City of Salina, Saline County, Kansas (the "Property") The Governing Body makes the following findings: 1. All conditions precedent for the amendment of the City's Zoning District Map and the rezoning of the Property have been timely met; 2. The Property lies within a Primary Service Area on the Urban Service Area Map where the City has already made investments in its public utility network. 3. The Property is not suitable for development of single-family housing under the existing Agricultural zoning. The location and physical attributes of this property and the availability of public utilities make it suitable for urban density residential development, provided that adequate legal and financial assurances are in place to ensure that Holmes Road is improved to City street standards abutting this property. 4. The Property is a logical extension of an existing residential subdivision and the requested R-1 and R-2 zoning would be compatible with the zoning and land use of nearby properties. 5. The development of townhomes in the peninsula area would serve as a buffer and transition area between the First Covenant Church and Holmes Road. 6. Needed public utilities can be readily extended to serve the entire 46 acres. 7. The requested zoning change from A-1 to R-1 and R-2 and the densities proposed would be consistent with the city's Comprehensive Plan which shows this property as being located within the city's Urban Service Area and calls for future suburban residential development in this area. Section 2. Amendment. DISTRICT "R-1". SINGLE FAMILY RESIDENTIAL DISTRICT. The Zoning District Map of the City of Salina, Kansas is amended to rezone the following lots located within the Property: Lots One (1) through Ten (10), Block One (1), Lots One (1) through Nine (9), Block Two (2), Lots One (1) through Eight (8), Block Three (3), Lots One (1) through Eleven (11), Block Four (4), Lots One (1) through Sixteen (16), Block Five (5), and Lots One (1) through Nine (9), Block Six (6); as part of DISTRICT "R-1" SINGLE FAMILY RESIDENTIAL DISTRICT. Section 3. Amendment. DISTRICT "11-211. MULTIPLE FAMILY RESIDENTIAL DISTRICT. The Zoning District Map of the City of Salina, Kansas is amended to rezone the following lots located within the Property: Lots One (1) through Sixteen (16), Block Seven (7), Lots One (1) through Eighteen (18), Block Eight (8) and Lots One (1) through Sixteen (16), Block Nine (9); as part of DISTRICT "R-2" MULTIPL FAMILY RESIDENTIAL DISTRICT. Section 4. Repealer. All prior ordinances relating to the Property are repealed to the extent they are in conflict with this ordinance. Section 5. Summary of ordinance for publication. This ordinance shall be in full force and effect from and after its adoption and publication once by summary in the official city newspaper Ordinance No. 21-11122 Summary On February 6, 2023 the City Commission passed Ordinance No. 22-11122. The ordinance changes the zoning district classification of property located on the west side of Holmes Road north of Magnolia Road to R-1 (Single -Family Residential) and R-2 (Multiple Family Residential) to allow development of a residential subdivision with single-family detached and single-family attached dwellings and outlines the findings of the City Commission in support of the change in zoning. A complete copy of the Ordinance can be found at www.salina- ks.gov or in the office of the City Clerk, 300 W. Ash, free of charge. This summary is certified by the City's legal counsel. Introduced: June 27, 2022 Passed: February 6, 2023 Michael L. Hoppock, Mayor [SEAL] ATTEST: JoVonna Rutherford, City Clerk The publication summary set forth above is certified this _ day of February, 2023. Greg A. Bengtson, City Attorney CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 02/06/2023 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: 6 BY: div ITEM City Clerk's Office FINAL APPR VAL: NO: 2 Page 1 BY: JoVonna A. Rutherford, City BY: Clerk ITEM: Ordinance No. 22-11 IZU Second reading Ordinance No. 22-11120 changing the zoning district classification from A-1 (Agricultural) to R-2 (Multi -Family Residential) on a 52 acre unplatted tract of land located east and south of the Stone Lake sandpit lake at the northeast corner of South Ohio Street and Schilling Road. BACKGROUND: Ordinance No. 22-11120 was passed on first reading on June 27, 2022 with second reading held in abeyance until the property was final platted. Since that time Stone Lake Development, LLC has completed final platting of the property. FISCAL NOTE: There is no fiscal impact associated with the rezoning of this property. COMMISSION ACTION OR RECOMMENDED ACTION: Staff has identified the following options for the City Commission's consideration: 1.) Approve Ordinance No. 22-11120 on second reading. 2.) Approve Ordinance No. 22-11120 on second reading with amendments as the City Commission deems appropriate. 3.) Postpone consideration of Ordinance No. 22-11120 on second reading to a specified date and time and provide staff direction regarding additional information or amendments the City Commission would like to request for their further consideration. 4.) Vote to deny Ordinance No. 22-11120 on second reading. If the City Commission declines to approve the ordinance, this property would retain its Agricultural zoning and could not be developed for commercial purposes. Staff recommends Option #1 Attachments: Ordinance No. 22-11120 Summary published in The Salina Journal on February , 2023 Posted on the City of Salina website from February to February , 2023 ORDINANCE NUMBER 22-11120 AN ORDINANCE AMENDING ORDINANCE NUMBER 8526, CODIFIED AS CHAPTER 42 OF THE SALINA CODE, AND THE ZONING DISTRICT MAP OF THE CITY OF SALINA, KANSAS BY REZONING AND PRESCRIBING THE PROPER USES OF CERTAIN PROPERTY WITHIN THE CITY. BE IT ORDAINED by the Governing Body of the City of Salina, Kansas: Section 1. Findings. In relation to the following described real estate: Stone Lake Addition No. 2 to the City of Salina, Saline County, Kansas (the "Property"). the Governing Body makes the following findings: 1. All conditions precedent for the amendment of the City's Zoning District Map and the rezoning of the Property have been timely met; 2. The Property lies within a Primary Service Area on the Urban Services Area map where the City has already made public utility investments. 3. The location and physical attributes of the Property and the availability of public utilities make it suitable for residential development with the extension of internal streets and water and sewer lines. 4. Rezoning of the Property for residential development could be viewed as a logical extension of the existing residential development pattern in the Stone Lake Addition. 5. ` The Property is adjacent to existing R-2.5 zoning on the west and a change to R-2 zoning would be compatible with the existing zoning pattern along the north side of Schilling Road. The Property is buffered by sandpit lakes on the west and east. 6. The requested zoning change and proposed residential density would be consistent with the city's Comprehensive Plan, which identified the Stone Lake property as suitable for Suburban Residential -type development. Section 2. Amendment. DISTRICT "R". SINGLE FAMILY RESIDENTIAL DISTRICT. The Zoning District Map of the City of Salina, Kansas is amended to rezone the following lots located within the Property: Lots One (1) through Twenty-four (24), Block One (1) in Stone Lake Addition No. 2 to the City of Salina, Saline County, Kansas; as part of DISTRICT "R" SINGLE FAMILY RESIDENTIAL DISTRICT. Section 3. Amendment. DISTRICT "R-1" SINGLE FAMILY RESIDENTIAL DISTRICT. The Zoning District Map of the City of Salina, Kansas is amended to rezone the following lots located within the Property: Lots One (1) through Seven (7), Block Four (4) in Stone Lake Addition No. 2 to the City of Salina, Saline County, Kansas; as part of DISTRICT "R-1" SINGLE FAMILY RESIDENTIAL DISTRICT. Section 4. Amendment. DISTRICT "R-2" MULTIPLE FAMILY RESIDENTIAL DISTRICT. The Zoning District Map of the City of Salina, Kansas is amended to rezone the following lots located within the Property: Lots One (1) through Ten (10), Block Two (2) and Lots One (1) through Seven (7), Block Three (3) in Stone Lake Addition No. 2 to the City of Salina, Saline County, Kansas; as part of DISTRICT 11R-2" MULTIPLE FAMILY RESIDENTIAL DISTRICT. Section 5. Repealer. All prior ordinances relating to the Property are repealed to the extent they are in conflict with this ordinance. Section 6. Summary of ordinance for publication. This ordinance shall be in full force and effect from and after its adoption and publication once by summary in the official city newspaper. Ordinance No. 22-11120 Summary On February 6, 2023 the City Commission passed Ordinance No. 22-11120. The ordinance changes the zoning district classification of property located at the northeast corner of South Ohio Street and Schilling Road south and east of the sandpit lake to R (Single -Family Residential), R-1 (Single -Family Residential) and R-2 (Multiple -Family Residential) to allow development of a residential subdivision with single-family detached and single-family attached dwellings and outlines the findings of the City Commission in support of the change in zoning.. A complete copy of the Ordinance can be found at www.salina-ks.gov or in the office of the City Clerk, 300 W. Ash, free of charge. This summary is certified by the City's legal counsel. Introduced: June 27, 2022 Passed: February 6, 2023 Michael L. Hoppock, Mayor [SEAL] ATTEST: JoVonna Rutherford, City Clerk The publication summary set forth above is certified this Greg A. Bengtson, City Attorney day of February, 2023. AGENDA SECTION NO: ITEM NO: Page I ITEM: Resolution 23-8106 CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 02/06/2023 4:00 P.M. ORIGINATING DEPARTMENT: I FISCAL APPROVAL: A 3 Finance/Administration BY: Debbie Pack, Director BY: IAQj/t1�_ IkJOI%LSI BY: Resolution Number 23-8106, designating official depositories for city funds, providing authority for wire transfers, providing for authorization of check signers, and authorizing securities purchases and sales. Authorize the City Manager to execute an agreement with Equity Bank to provide banking services for the City of Salina. BACKGROUND: Resolution No. 23-8106 K.S.A. 9-1401 directs the governing body of any municipality to designate by official action the banks, savings and loan associations and savings banks which shall serve as depositories of the governing body's funds and the officer and official having the custody of such funds shall not deposit such funds other than at such designated banks, savings and loan associations and savings banks. The banks, savings and loan associations and savings banks which have main or branch offices in the county in which all or part of the municipality is located shall be designated as such official depositories if the municipality can obtain satisfactory security.. This action is required for all funds of the City, including operating accounts and investments. The last time the City adopted a designation resolution was on November 25, 2019 under Resolution 19-7773 (attached). On May 17, 2021 Equity Bank merged with American State Bank. In order to update the designation of depositories for the City, staff is recommending the adoption of Resolution 23-8107 which replaces American State Bank with Equity Bank as an official depository for the City. Banking Services Agreement In October, 2022, the City of Salina sent out a Request for Proposal (RFP) for Banking Services (attached) which included, but was not limited to, operating accounts, subsidiary accounts, on-line banking, lock box services, and purchasing card services. The RFP was sent to all local financial institutions, was posted on the City's website and a notice was published in the Salina Journal. The City received proposals from four (4) institutions. An evaluation team consisting of the City Manager, Deputy City Manager, Assistant City Manager, Director of Finance, Deputy Director of Finance and Director of Continuous Process Improvement evaluated the proposals based on the proposed scope of services, the experience, expertise and qualifications of key banking personnel, and financial strength and stability of the bank. With the assistance of the City's financial advisor, the team also evaluated the financial structure of the proposals. The team found that all proposals met the specifications and all respondents were highly qualified institutions that could meet the needs of the City. The RFP itemized the banking services the City was requesting and the banks provided their ability to perform these services, as well as, the fees associated with each service. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 02/06/2023 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: BY: ITEM Finance/Administration FINAL APPROVAL: NO: Page 2 BY: Debbie Pack, Director BY: In order to achieve a waiver of banking service fees, some banks proposed a minimum balance be held that was either non-interest bearing or would receive a 1 % credit to offset fees. In addition, banks provided a proposed rate of return on the City's deposits. Each rate of return was expressed relative to an index or flat rate proposed by the bank. The indexes varied between the Kansas Municipal Investment Pool rate and the Federal Funds rate. The banks proposed varying discount rates relative to their proposed index for example, index less 20 basis points, index less 80 basis points, etc. Staff consulted with our financial advisor about the various proposed indexes, the past performance of those indexes and whether it was likely that there would be significant deviations in the performance of one index relative to another. Staff concluded that the indexes being utilized were standard in the banking world and that as one index fluctuated, the others would fluctuate similarly. In order to develop an objective comparison of the various proposals, staff developed a standard scenario to quantify the anticipated interest earnings and deduct service charges (when applicable) to arrive at a net annual financial value for each proposal based on the predetermined standardized assumptions. The attached Analysis of Banking Proposals table provides a side-by-side comparison of the proposals received noting the deposit amount and earnings conditions proposed, calculating the annual interest that would be earned, deducting annual fees incurred and providing a final net value of each proposal based upon their proposed index on 11/21/22. As staff is being more aggressive with investment of idle funds, an overnight balance of $25,000,000 was utilized for this comparison. From their extensive review of the proposals and comprehensive financial impact analysis, the evaluation team is recommending that the City of Salina enter into a three year banking services agreement with Equity Bank FISCAL NOTE: The financial impact of this action will be the cost of banking fees, as well as, the earnings on the City's idle funds as estimated in the attached spreadsheet. Actual performance will vary based upon applicable bank fees, based on usage, and interest earned on the actual amount of funds on deposit and applicable interest rate which will be calculated monthly. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 02/06/2023 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: BY: ITEM Finance/Administration FINAL APPROVAL: NO: Page 3 BY: Debbie Pack, Director BY: COMMISSION ACTION OR RECOMMENDED ACTION: Staff has identified the following options for the City Commission's consideration: Resolution 23-8106 1.) Approve Resolution No. 23-8106 designating official depositories for city funds, providing authority for wire transfers, providing for authorization of check signers, and authorizing securities purchases and sales and repealing Resolution No. 19-7773. 2.) Approve Resolution No. 23-8106 with amendments as the City Commission deems appropriate. 3.) Postpone consideration of Resolution No. 23-8106 to a specified date and time and provide staff direction regarding additional information or amendments the City Commission would like to request for their further consideration. 4.) Vote to deny Resolution 23-8106 resulting in the City not being able to contract with Equity Bank for banking services. Staff recommends Option #1. Authorization for City Manager to execute banking services agreement with Equity Bank 1.) Authorize the City Manager to execute a banking services agreement with Equity Bank. 2.) Authorize the City Manager to execute a banking services agreement with Equity Bank with amendments as the City Commission deems appropriate. 3.) Postpone consideration to a specified date and time and provide staff direction regarding additional information or amendments the City Commission would like to request for their further consideration. 4.) Vote to deny Authorization for City Manager to execute agreement with Equity Bank which will result in staff having to either republish a banking services RFP, select another respondent or leave our services with our current bank. Staff recommends Option #1. Attachments: Resolution No. 19-7773 Banking Services Request for Proposal Analysis of Banking Proposals Resolution No. 23-8106 Repeals Resolution No. 04-6072 RESOLUTION NUMBER 19-7773 A RESOLU>eION DESIGNATING THE OFFICIAL DEPOSITORIES FOR ALL MONEYS OF THE CITY OF SALINA, KANSAS, PROVIDING AUTHORIZATION FOR WIRE TRANSFERS, DESIGNATING AUTHORIZED CHECK SIGNERS, AUTHORIZING SECURITIES PURCHASES AND/OR SELL AND REPEALING RESOLUTION NUMBER 04- 6072. WHEREAS, K.S.A. 9-1401 requires that all municipalities designate by official action, all eligible depositories of the governing body's funds, WHEREAS, K.S.A. 9-1401 also states that banks, savings and loan associations and savings banks which have main or branch offices in the colony in which all or part of the municipality is located shall be designated as such official depositories, and WHEREAS, Bennington State Bank, UMB Bank, Sunflower Bank, The Bank of Tescott, Central National Bank, Solomon State Bank, Capitol Federal Savings, Bank VI, American State Bank, First Bank Kansas, and Exchange Bank are all authorized depositories for municipal funds, and WHEREAS, the City Manager, Deputy City Manager, Finance Director and Deputy Finance Director are responsible for the daily fmancial operations of the City of Salina; SO NOW, THEREFORE BE IT RESOLVED by the Governing Body of the City of Salina, Kansas: Section 1. That all public moneys received by the City of Salina be deposited in Bennington State Bank, UMB Bank, Sunflower Bank, The Bank of Tescott, Central National Bank, Solomon State Bank, Capitol Federal Savings, Bank VI, American State Bank, First Bank Kansas, or Exchange Bank, all of which are authorized depositories of municipal funds, located in the City of Salina, Saline County, Kansas. Section 2. That the City Manager, Deputy City Manager, Finance Director, Deputy Finance Director and Human Resource Director are authorized to approve ACII and wire transfer payments on behalf of the City of Salina. Section 3. That the City Manager, Deputy City Manager, Finance Director and Deputy Finance Director may authorize check signers and access to the various accounts required by the City of Salina. Section 4. That the City Manager, Deputy City Manager, Finance Director and Deputy Finance Director are authorized to approve the purchase and/or sell of securities for the account of the City of Salina. Section 5. That Resolution Number 046072 is hereby repealed. Adopted by the Board of Commissioners and signed by the Mayor this 25"1 day of November, 2019. �E (SEAL) Trent W. Davis, M.D., Mayor ATTEST: Wile Shandi Wicks, CMC, City Clerk DATE: October 26, 2022 TO: Prospective Financial Institutions The City of Salina is requesting competitive proposals from firms qualified to provide BANKING SERVICES. Proposals must be received no later than 4:00 PM, TUESDAY, NOVEMBER 22, 2022 Submit one (1) original signed proposal to: City of Salina Request for Proposal — Banking Services Attn: Debbie Pack 300 West Ash Street, Suite 206 Salina, KS 67402-0736 Submit one (1) electronic proposal to: Debbie. pack(a salina.org Said proposals must be clearly labeled — RFP — BANKING SERVICES Questions concerning this RFP should be directed to Debbie Pack, 785-309-5735 or Debbie. pack( salina.org. Late proposals will be rejected and returned unopened. Sincerely, Debbie Pack Director of Finance and Administration Cityof ti CONTENTS AFFIDAVIT I. GENERAL BACKGROUND II. MINIMUM QUALIFICATIONS III. SCOPE OF SERVICES IV. REQUIRED BANKING SERVICES V. OPTIONAL BANKING SERVICES VI. OTHER VALUE-ADDED BANKING SERVICES VII. PROPOSAL SUBMISSION PROCESS AND DEADLINES VIII. PROPOSAL REQUIREMENTS IX. FORMAT FOR SUBMISSION OF PROPOSAL X. REQUESTS FOR INFORMATION XI. EVALUATION OF PROPOSALS XII. PROPOSAL SCHEDULE XIII. CONTRACT REQUIREMENTS EXHIBIT A: APPLICATION TO ACT AS DEPOSITORY EXHIBIT B: REQUIRED SERVICES EXHIBIT C: OPTIONAL SERVICES EXHIBIT D: OTHER VALUE-ADDED SERVICES AFFIDAVIT I, ________ (Name of Individual) of the City of County of State of _------ , being duly sworn on her or his oath, deposes and says: That I am the — (Title) of (Firm Name), and have been authorized by said firm to make this affidavit on its behalf; 2. No officer, agent or employee of the City of Salina, Kansas is financially interested, directly or indirectly, in what firm is offering to sell to the City pursuant to the Request for Proposals; or The following officer(s), agent(s), or employee(s) of the City of Salina would be financially interested in or receive a benefit from the profit or payments of any contract, job work, or service provided to the City of Salina: (list all such officers, agents, or City employees on a separate sheet); (Affiant shall line through the statement which does not apply; failure to line through one statement shall disqualify the proposal). 3. If firm were awarded any contract, job work, or service for the City of Salina, Kansas, no officer, agent or employee of the City would be financially interested in or receive any benefit from the profit or payments of such; or The following officer(s), agent(s), or employee(s) of the City of Salina would be financially interested in or receive a benefit from the profit or payments of any contract, job work, or service provided to the City of Salina: (list all such officers, agents, or City employees on a separate sheet); (Affiant shall line through the statement which does not apply; failure to line through one statement shall disqualify the proposal). 4. Firm has not participated in collusion or committed any act in restraint of trade, directly or indirectly, which bears upon anyone's response or lack of response to this Request for Proposals. (Firm Name) By: (Signature) --------------------------------- (Printed Name) ------------------------------------- (Title) ---------------------------------- Mailing Address ----------------------------------- City, State, Zip Code Phone Fax Email Address: Federal Tax I. D. # IH city of Salina I. GENERAL BACKGROUND The City of Salina (the City) is requesting competitive proposals from eligible financial institutions to act as the City's depository institution for the period of three years, effective on March 1, 2023, or other date as determined between the City and financial institution, with additional one-year renewal options. Eligible institutions must meet the requirements of K.S.A. 12-1675 and meet the minimum qualifications as stated within this Request for Proposals. Banking services and charges will be reviewed on an annual basis to ensure the equity of the agreement for both parties. It is the intent of the City to have one financial institution provide the banking needs for the City's main operating account, and other minor City accounts and other banking services described. The intent of this Request for Proposal is to provide qualified financial institutions an equal opportunity to submit proposals to handle the City's bank accounts and services. Banking services not requested in this proposal will be negotiated between the City and the selected bank if required at a later date. MINIMUM QUALIFICATIONS The following indicates the minimum qualifications and criteria for a bank's proposal to be eligible for consideration and evaluation. Specific responses to each requirement must be provided in your proposal. • Be insured by the Federal Deposit Insurance Corporation (FDIC). • Be eligible to be a depository of City funds pursuant to K.S.A. 9-1401 and 9- 1408, et seq., as amended with full-service branch in or near Salina. All responding banks must complete Exhibit A. • Be an online cash and securities member of the Federal Reserve. • Be able to provide 100% collateralization of all City deposits with collateral in compliance with the City Investment Policy. 5 City of Salina Provide credit information from a nationally recognized rating organization such as Moody's, Standard & Poor's, etc. Have the capacity of providing all Required Banking Services internally. The City prefers that the responding bank provide services without the use of joint ventures, consortiums, or contract service providers because of control issues. The City will determine the acceptability of any arrangements with the objective of the RFP being the total solution. • Maintain a financial institution bond, Form 24 or equivalent, with a limit of not less than $3,000,000 banker's professional liability in the amount of $2,000,000 per occurrence/annual aggregate and valuable paper coverage. • Branch locations within the City limits of Salina, Kansas. III. SCOPE OF SERVICES Details of the services to be provided to the City are separated into three categories. 1. Required Banking Services These services are listed in Section IV and in Exhibit B and must be provided by the selected bank. 2. Optional Banking Services These services are listed in Section V and in Exhibit C, and the City may desire to use them depending on the availability and price of the services offered. However, the City may award a contract for these services to a separate bank(s) besides the main depository that is awarded the contract for required services in Section IV above. Proposals are not required to address any optional services in order to be considered an acceptable proposal. City & J Salina 3. Other Value -Added Banking Services These are services not otherwise identified in this RFP that the proposing bank may offer to the City. Please submit your proposal on Exhibit D for any additional services that you wish the City to consider. Include all necessary attachments, fees and discussion materials to clarify the services being offered. IV. REQUIRED BANKING SERVICES All proposals must include the following services, which will be required in the City's Banking Services agreement. Proposing Banks must submit a completed Exhibit A and Exhibit B with the proposal. 1. Account Structure The City will require this to be an interest-bearing checking account. All of the City's operations will flow through this account, including the deposit of revenues, accounts payable payments, payroll and investment purchases and maturities. The City will send and receive wire transfers and ACH transfers, write checks, and make deposits to this account. The City requires the ability to access real time detailed information of all incoming ACHs and wires for this account at no cost to the City. The following chart describes the frequency of various activities that will be processed in this account. Item Frequency Accounts Payable Checks Weekly Deposits Daily Payroll Every two weeks Investment Purchases As Needed Investment Maturities As Needed ACH Debits/Credits As Needed Cityof Salina 2. Access to Records The depository bank shall allow reasonable access to the Finance Director, Finance staff, the City's independent auditors and federal auditors to examine records relating to the use of City funds. In the response, please provide information about this service, including all costs. 3. On -Line Treasury Management Describe in detail your online communication capabilities for balance inquiry including immediate and delayed clearing balances, item image retrieval, wire and ACH transfer initiation, stale dated check management, stop pay management, exception item review using positive pay, safekeeping data and investment performance reporting, and any other online information that will be available to the City. In addition, please describe the training available and appropriate controls regarding the City's accounts using online access. Finally, indicate the hardware/software requirements necessary to run the access program. 4. Deposit Slips Two-part, pre -numbered deposit slips will be required, as well as self -inking endorsement stamps for the following departments: Municipal Court, Water Customer Accounting, Planning and Development Services, Fire, Finance, Police, Parks and Recreation, Landfill, Arts and Humanities. 5. Locked Bank Bags Provide locked bank bags to be placed in a night drop or used by a courier. The bank will open these bags, verify the amount(s), make the deposit(s), and send a copy of the deposit slip to the City. 6. Lockbox Services The City of Salina does not currently have a lockbox account, but wishes to add one for the Utility Billing. The successful vendor will perform the following processes for items sent to the lockbox location: a. Collect and open mail from lockbox location at various times each business day. b. Compare remittance documents to the accompanying check for amount verification. c. Endorse all checks contained therein. W City of Salina d. Deposit such checks into the account in one lump sum for the day. e. Email the deposit information to the City's designee. f. Processed documents, deposit slips and other mail not containing checks will be delivered to City designee each business day. g. Provide online access to imaged lockbox documents (statement stubs and checks) allowing immediate access to processed items. 7. ACH Collections The City operates a water and sewer utility with approximately 21,000 customers. Customers shall have the opportunity to make direct payments by ACH for their monthly fees. Please describe your services in this area. 8. Remote ACH Check Deposit Service The City currently receives a substantial volume of check payments over the counter at cashier operations in City Hall, Municipal Court, the Police Department, and Parks & Recreation offices, and in other areas. With the implementation of Remote ACH Check Deposit Service, it is anticipated that the operating bank can accept quality images of checks in file format over the internet and collect payment of these checks via image presentment as an alternative to receiving the checks via armored car. Please describe the service that is available to the City and clearly define costs and implementation procedures including equipment requirements. Also, describe the latest deposit time for the file to be transmitted to the bank and what checks if any that cannot be converted to the image deposit format. 9. Availability of Funds Deposited What is the collected funds availability schedule for the City's deposits? These deposits include checks, credit cards, money orders, cash, ACH credits and wires from local, regional, and out of state banks. The City requires updates as the schedule changes. Also, describe the latest daily deposit time for fastest availability on deposits including deposits made using file transmissions of check images. 9 City of Salina 10. Returned Checks All deposited checks that are returned will be sent back to the City and processed against the City's account. The City desires to have a second presentment of the check for any NSF checks that are deposited. As an option, the NSF check can be converted to ACH and presented for payment rather than a second presentment of the check. Please provide information about this service, including all costs. 11. Payee Positive Pay and Automated Account Reconciliation The City requires the use of a payee positive pay account reconciliation and fraud prevention program. As checks are disbursed, the City will provide the bank with computer readable record file detailing the payee, check number, date and dollar amount of each item. Only those items reported by the City will be allowed to clear the account. The bank shall provide the City a daily list of exception items for payment approval or rejection. The City requires that the exception items not be paid as the automatic default. Describe your system and how stale checks will be handled, and include information regarding the requirements for the electronic file, such as format, etc. Please also describe any ACH Positive Pay services or other fraud prevention options your offer. At the end of each month, the Positive Pay account reconciliation shall consist of outstanding items. The City requires information be provided electronically to reconcile its accounts. The electronic file shall be in the standard CSC (comma delimited) format for interfacing with the City's financial system. Information is expected to be received within three business days of month-end and shall contain the date, bank account number, check number and amount. Responding banks should describe their systems and how stale dated checks will be handled. The City requires that the payee positive pay program be integrated with the bank teller operations to maximize controls. In the response, please describe the status of the online teller access. 12. Check Clearing Account In the past, the City has not utilized a zero -balance check clearing account. If proposing the City of Salina to utilize such an account, detail benefits, costs 10 City of Salina associated with the account and the cost savings the City could realize from using such an account. 13. Cancelled Check Safekeeping Please describe your cancelled check safekeeping to include image recovery for processed checks. The bank shall provide a monthly electronic data set containing information of all checks cleared by the bank. These data sets shall be furnished for dates from the first day of the month through the last day of each month and shall include the following information: check #'s paid; date cleared; and amount. The cancelled checks or check images shall be returned monthly in numerical sequence by check number on or before the fifth working day of the following month. 14. Electronic Vendor Payments (ACH or VISA Network) The City currently pays some of its vendors electronically and desires to expand its use of this form of payment. Please describe any electronic payment system, with cost structure, your bank provides and the bank plans for expanding the service. 15. Debit Blocks and Filters The City requires the ability to place Debit filters and blocks on all accounts to minimize the potential of fraudulent withdrawals. Please describe your program and all costs associated with implementing filters and blocks. 16. Employee Pay The bank must have the ability to provide direct deposit employee payroll using ACH payments. Please describe your ACH services. What is the deadline to receive direct deposit payroll (ACH) information to ensure that it will be credited to the employees account first thing Friday morning? For those employees that do not utilize direct deposit, the bank must be capable of providing pay cards 11 Cityof Salina that can be used by the employee to access their pay. Please provide details on this program's cost and transaction limits. An optional use for these cards may be for emergency travel and cash advances. 17. Purchasing Cards In 2022, the City had roughly 120 purchasing cards outstanding with a transaction volume of approximately $1.0 million. The City will need to receive transaction data in a format that can be sent to the purchaser for review and approval. Please describe your program, including all costs, fraud management, rebate matrix, accounting information to be provided to the City, reporting capabilities, Internet capabilities, card formats, controls for the use of the cards, reconciliation process, etc. Attach a copy of your bank's contract for this service. 18. Collateral Pursuant to K.S.A. 9-1402, as amended, the bank is required to collateralize City deposits. The City Investment Policy requires that pledged securities have a market value equal to at least 100% of the amount of the total deposits of public funds, including accrued interest earned. Under the City's investment policy, the following items are considered acceptable collateral: 1. Direct obligations of, or obligations insured as to principal and interest by, the United States Government or an AAA rated agency thereof, and obligations and securities of United States sponsored AAA rated corporations, which under federal law may be accepted as security for public funds. 2. Surety bonds, issued by a AAA rated insurance company as determined by a nationally recognized insurance rating agency, licensed to do business in the State of Kansas. Surety bonds are subject to review and approval by the City's Finance Director. 3. Letters of Credit issued by the Federal Home Loan Bank. 4. Bonds of the State of Kansas. If the bank chooses to pledge securities as collateral, the bank will be required to pledge the securities at the Federal Reserve Bank or at the Federal Home 12 City of Salina Loan Bank and execute a Security Agreement with the City giving control of the securities to the City. 19.Other Required Information a. Daylight Overdrafts Please provide details on any daylight overdraft issues that may concern your bank. It is possible that in managing the investment program of the City that payment for an investment purchase may occur before the receipt of funds from an investment sold or matured or from other sources. This could cause an occasional daylight overdraft that will be resolved before the end of the banking day. b. Designated Account Liaison The City will require the selected bank to designate a senior officer as a liaison. This officer must be capable of coordination of all City activities with the bank and be able to resolve any problems or issues that may arise. Biographical information must be included on all key bank personnel that will be assigned to service the City. c. Record Retention The bank should maintain records for the City for the term of seven years after the completion of the contract. d. Disaster and Back-up Plans Describe your bank disaster and back-up plans and capabilities. The City must have access to cash, securities, and information always. e. Statements The City requires monthly statements on all its accounts. The cut-off for these statements will be the last day of each month. These statements shall be readily available no later than the 3rd business day after the end of the month. f. Wire Transfer of Funds The City wire transfers funds to other banks. This service will be provided on the request of any approved City bank account designee (using electronic, telephonic, email, and/or written requests). Online submission is preferred — all other methods exist for backup. In order to maintain audit controls, the bank will provide written instructions to follow when wire transfers are requested by telephone. What is the cut-off time for the City to submit wire transfer information and have it 13 cityof Salina processed on the same day? Any money received directly at the financial institution by wire transfer of US Treasury, State of Kansas funds, or other financial institutions will be reported to the City's Finance Division immediately by telephone or email. The financial institution will then provide the City with a deposit slip or credit advice of the transaction. g. Bank Charges Charges for services and supplies provided by the bank will be directly deducted from the City's bank account. The bank will provide a detailed invoice to the City prior to deduction. h. Investments The City reserves the right to invest in time deposits, demand accounts (money market), US Treasury bills or notes, government agencies or repurchase agreements through other financial institutions if such action is to the benefit of the City. L Interest Income All account(s) will be interest bearing accounts and are not to go below the bank's normal savings account rate. Financial institutions are required to state in the proposal the interest rate offered, including the index used and the index's effective interest rate, specifically, the rate given to the City based on the number of basis points above or below the index. If an interest-bearing account is proposed for the automatic sweep product for the investment of end -of -day balances, please provide information on any FDIC charges on the bank account and describe the current FDIC charges. The proposal should also include all options available to public entities under Kansas statutes considering the City has expanded investment authority. Include your bank's earnings history for July 1, 2021 — June 30, 2022, earnings benchmark and all costs. Indicate which sweep investments option the bank recommends for the City and why it should be selected. j. Additional Services The City may request additional services not specifically mentioned in this RFP with a mutually agreeable fee to be charged by the bank. If the bank wishes to offer the City additional services not otherwise specified in 14 City of Salina this request for RFP, a description of these services, including unit costs, if any, should be included in the proposal. V. OPTIONAL BANKING SERVICES The City requests the proposing banks offer any optional services or make any recommendations it believes would enhance the cash management capabilities of the City. All proposing banks are encouraged to make suggestions or provide additional information not requested in this proposal. Banks are encouraged to describe factors that distinguish their institution from potential competitors. However, all respondents must submit a proposal on all required services in the proposal format provided. Optional services should be summarized on an attached Exhibit C, but can be accompanied and supported by other material. The City may elect to use some or all of the optional services, but not necessarily with the primary operating bank. The City may elect not to award a contract for any or all of the optional services to any banks. 1. Courier and Armored Car Services The City deposits cash and checks daily. At the present time, the City has a contract with an armored car service to pick up the daily deposit from City Hall, and other City facilities and deliver it to the bank. Please describe if you bank provides a service to include pick-up and subsequent deposit times for best funds availability and define the costs. The City is evaluating whether to have its own contract with an armored car service or to have the bank plan for delivery and would like the opinion of the responding banks. 2. Check Issuance The City currently processes vendor checks weekly. Please describe if you bank has the ability to issue checks on behalf of the City for payments made to vendors and suppliers, what this process looks like and include any applicable fees. VI. OTHER VALUE-ADDED BANKING SERVICES Please describe any other banking services that your bank would be willing to offer by summarizing and including attachments for review by the City. 15 City of Salina VII. PROPOSAL SUBMISSION PROCESS AND DEADLINES One original signed proposal from interested banks must be received on or before 4:00pm on Tuesday, November 22, 2022 and addressed to: City of Salina Request for Proposal — Banking Services Attn: Debbie Pack 300 West Ash Street, Suite 206 Salina, KS 67402-0736 One (1) electronic signed proposal must be received by debbie.pack(c salina.orq_on or before 4:00 PM, November 22, 2022. Any proposal that is not received before the deadline date and time will not be considered. The City reserves the right to accept or reject any and all proposals, to waive technicalities or irregularities involving any proposal. Proposals will be time -stamped upon receipt and held in a secure place until the established due date. A record of proposals will be established, which will include for all proposals, the following information: the name of the entity submitting the proposal; a description sufficient to identify the services offered; and, the date and time the proposals were opened. All proposals and related reference information submitted in response to this RFP will become the property of the City and will not be returned to the respondent. Each entity submitting a proposal waives any right of confidentiality as to the proposal documents. If an entity submitting a proposal considers certain material in the proposal proprietary information, it shall clearly designate those portions of the proposal it wishes to remain confidential. As a public entity, the City is subject to making records available for public disclosure. The City will attempt to maintain the confidentiality of material marked proprietary; however, it cannot guarantee that information will not be made public. Under no circumstances will any portion of a bidder's price proposal be considered confidential. The City reserves the right to (1) accept or reject any and all proposals and to waive any technicalities or irregularities involving any proposal and to cancel the RFP process at any time prior to entering into a formal contract for banking services, (2) not award a contract for any or all of the banking services that are the subject of this RFP process, (3) award contracts for banking services to separate banks, (4) negotiate contract terms acceptable to the City with the successful bank(s), (5) disregard all 16 city of Salina nonconforming, nonresponsive or conditional proposals and (6) reject the response of any bank which does not submit a proposal to the City's satisfaction. All proposals must be signed by a duly authorized individual, and the affidavit completed, signed and notarized (Page 3-4). During the evaluation process, the City reserves the right to request additional information or clarifications from those banks submitting proposals and to allow corrections of errors and/or omissions. Oral presentation may be required prior to selection; notification will be given if such meetings are required. Submission of a proposal indicates acceptance by the company submitting the proposal of terms, conditions and specifications contained in this RFP and to include the contract requirements set forth herein. The City will not pay for any information herein requested, nor is it liable for any costs incurred by those banks submitting proposals. The City reserves the right to select the proposal that will best meet the needs of the City. Proposals that do not meet the stated requirements will be considered in non-compliance and will be disqualified unless the City waives such non-compliance. All proposals must remain in effect for 120 days after the proposal due date. By submission of a proposal, each entity submitting a proposal certifies that: 1. It has not paid nor agreed to pay any person(s), other than a bona fide employee, a fee or a brokerage fee resulting from award of the contract. 2. The City may, by written notice to the entity submitting the proposal, reject the RFP or cancel any award under this RFP if it is found by the City that gratuities, in the form of entertainment, gifts or otherwise were offered or given to any representative of the City with a view toward securing an order or other favorable treatment with respect to this RFP or the entity submitting the proposal participated in collusion with another entity to restrain or eliminate competition. 3. The contents of this RFP and any clarifications distributed or issued by the City shall become part of the contractual obligation and incorporated by reference into the ensuing contracts as the City deems appropriate. All proposals must be submitted in a sealed envelope or box on or before the time specified herein. No proposals shall be opened until after the time specified for proposal submission. No proposal will be opened if submitted after the time specified 17 city of Salina herein for submittal of proposals. No public proposal opening will be held. All proposals will remain confidential until a selection is made or until all proposals are rejected. Those entities whose proposals meet the requirements of this RFP may be interviewed. VIII. PROPOSAL REQUIRMENTS 1. Proposals must include all required services as set forth in Section IV herein. 2. Proposals must be submitted in the format provided in this RFP, including the use of appropriate exhibits. 3. An individual having full authority to execute the proposal and to execute any resulting contract for services must sign each proposal, including Exhibit A. 4. The following bank profile data is required in each proposal: ■ The year 2021 financial statement or most recent 12 -month ending period must be included. ■ Identification of the three largest owners of the bank. ■ Description of how the City would rank relative to other customers of the bank in relationship to size and complexity of service. 5. Each proposal shall include resumes of key management and staff members that would be assigned to the account. 6. Each proposal shall include an organizational chart depicting the various departments, including contacts that would be involved in the City relationship. 7. Each proposal shall provide information regarding the proposing entity's community involvement within the City of Salina. 8. Each proposal shall include a list of names, addresses, phone numbers and email addresses for three customers of similar size and complexity to the City's requirements, including the name of a contact person. 9. Each proposal shall address the method of compensation to include the following: ■ The City requires that a monthly account analysis be presented within ten days from the cut-off date. The account analysis must show a minimum of the following information: o Account number o Period covered o Average ledger balance o Average collected balance o Services rendered to include type of service and quantity o Per unit charge for each service per the banking agreement IN city of Salina o Extended charges of each type of service provided o Total monthly charges of all services provided The City will make payment for bank services as follows: o By withdrawal from operating account All charges shall be in conformity with those specified in the Banking Service Quotation Forms Exhibit B, C and D. 10. Each proposal shall include the statement and contract drafts required by Section XIII of this RFP. Additionally, please address the following with your proposal: 1. Is the financial institution a member of the Federal Reserve System and insured by the FDIC? 2. State how and where the bank/local branch is chartered (federal or state). If chartered by a state, identify the state the bank/local branch is chartered under. Provide list of locations available to the City. 3. Provide credit information from a nationally recognized rating organization such as Moody's, Standard & Poor's, etc. Discuss current FedFis (or equivalent service) rating published effective for the most recent quarter available and provide the pertinent information regarding financial strength and stability expected during the term of this proposed banking services contract. 4. Is the financial institution audited by an independent CPA firm? Please provide a copy of the most recent audit report. 5. Please submit your bank's most recent Call Report. 6. Provide your bank's Capital Ratio and Risk Based Capital Ratio for the past three (3) years. 7. Provide a summary of any significant changes in management during the past five (5) years. Include any recent or anticipated mergers or acquisitions. 8. Indicate whether your institution will provide the following services and at which location these services will be handled: a. Daily deposit of City funds b. Processing of federal withholding of tax deposits c. Coin counting services as needed d. Receiving of customer utility payments (lockbox) e. Certification of availability of funds for bond and interest payments to the State Treasurer's Office as requested by the City. 19 cityof Salina 9. Provide interest rate history on your institution for both interest-bearing checking accounts and public fund money market accounts for the last two (2) years. How often are these rates reviewed for changes? 10. Completion of the charges for banking services listed on Exhibit B. 11. Will the fees quoted in the proposal remain firm during the entire contract period? If no, for what period will your fees remain firm? What are the criteria and frequency for adjusting your fees? 12. State that the proposal submitted shall be binding upon the financial institution for 120 days from the submission date and that the individual signing proposal is authorized to make such a commitment. IX. FORMAT FOR SUBMISSION OF PROPOSAL In order to simplify the review process and obtain the maximum degree of comparison, proposals must be organized in a standard format. The following outline indicates organization which will provide information necessary for the processing of the proposal. 1. Title Page: Indicate the name of the institution, local address, telephone number, name of the contact person, and the date. 2. Table of Contents: Include a clear identification of the material by section and page number. 3. Letter of Transmittal: Limit the letter of transmittal to one or two pages. Briefly state the institution's understanding of the services to be performed and state the names of the persons who will be authorized to make representations for the institution. Also, state the person signing the letter is authorized to bind the institution. 4. Profile and Qualifications of the Institution: Include responses to all required and additional services as described with the Request for Proposal. State the location of the office (or offices) from which the various services are to be performed, identify the personnel who will work on the City's activity, and give the names and telephone numbers of client references for which similar services are provided. 5. Fees: Complete Exhibit B for calculating fees. Alternate fee proposals may be provided for the City's consideration. This should contain the estimated annual fee based on the projected activity shown. The City has the option of choosing the method most advantageous to them. 6. Additional Section: Since the preceding sections are to contain only data that is specifically required, any additional or supplemental information considered all City of Salina essential to the proposal shall be included in this section. If there is no additional data or information to present, state, "There is not additional data to be presented." X. REQUESTS FOR INFORMATION All request for information and questions regarding this RFP must be forwarded in writing or via email (Debbie.packaa salina.org) no later than 1:00 pm on Friday, November 11, 2022 to: City of Salina Request for Proposal — Banking Services Attn: Debbie Pack 300 West Ash Street, Suite 206 Salina, KS 67402-0736 By 5:00 pm on Tuesday, November 15, 2022 responses to questions will be provided to entities requesting responses and to all known proposers. The responses will also be posted as an addendum to the RFP on the City's Website at this time or available upon request. XI. EVALUATION OF PROPOSALS Proposals will be evaluated by the City of Salina utilizing the criteria set forth below. The City staff will make a recommendation to the entire Governing Body based upon this analysis. All proposals submitted will be the primary document upon which each proposal will be evaluated. All proposals will first be screened to determine minimum institution qualifications as outlined in this RFP. Proposals that do not meet these minimum requirements will automatically be rejected and shall not undergo further evaluation. Submitted proposals will be judged on the following evaluation criteria: 1. Scope of proposed services. 2. Cost of services and effectiveness of total services performed. 3. Experience, expertise and qualifications of key bank personnel assigned to the City. 4. Financial strength and stability of the bank. 5. Value of any new products or services suggested. 6. Quality level of services to be performed and proposed approach to cost control, service level monitoring and administration. 7. Clarity, completeness and timeliness of information provided for evaluation to the City. 21 XII. K/ 111 8. Quality of any in-person interview with the City's selection committee. City of Salina 9. Responses to reference checks. 10. Distance from City locations needing to make deposits to depository locations. 11. Number and locations of branches and services provided at each branch. In addition to the banking institutions' services, please provide the following: ■ A list, including address and zip code, of all banking locations, including affiliates and/or subsidiaries, located within the city limits of Salina, Kansas, and the services provided at each location. Are there any other reports the Respondent bank routinely prepares and distributes that provide information regarding any such programs as listed directly above that would be available to the City? The City reserves the right to utilize other appropriate selection and evaluation criteria as it deems necessary. PROPOSALSCHEDULE Event Deadline Distribution of Requests and Publication October 26, 2022 Questions Regarding Proposal Due 1:00 pm November 11, 2022 Responses to Questions Distributed and Posted by 5:00 pm November 15, 2022 Proposals Due 4:00 pm November 22, 2022 Evaluation/Interview/Facility Visitation Period December, 2022 Contract Signed by January 15, 2022 Expected Implementation Date March 1, 2023 Please note that these dates are anticipated and are subject to change. CONTRACT REQUIREMENTS All banks submitting proposals in response to this RFP must include in their proposal drafts of contracts for those banking services included in each proposal: 1. Security Agreement 2. Pledge and Custodial Agreement 3. Treasury Management Services Agreement 4. Wire and ACH Transfer Agreement 5. Other Agreements that the City will be required to execute 22 City of Salina The award of any contract for banking services pursuant to this RFP process is contingent upon the bank(s) receiving the award and successfully negotiating a contract for those banking services with the City. In the event the selected bank(s) will not execute an agreement that satisfies the contract terms required by this Section, or the City is unable to negotiate a contract it deems acceptable with the selected banks(s), the City may withdraw its award for banking services with the selected bank(s) and award its banking services to the next most qualified bank, or the City may call for new proposals at its option. The following contract terms must be included in all contracts for banking services. The City reserves the right to modify these contract terms by amendment, addition or deletion as it deems appropriate. RIGHT OF THE CITY TO TERMINATE AGREEMENT a. Termination for Cause. Without in any manner limiting the right of the City to terminate this Agreement or declare the BANK in default thereof for any reason set forth herein or in the Request for Proposal documents, if the work to be done under this contract shall be abandoned by BANK; or if this Agreement shall be assigned by BANK otherwise than as herein provided; or if the BANK should be judged as bankrupt; or if a general assignment of its assets should be made for the benefit of its creditors; or if a receiver should be appointed for the BANK or any of its property; or if at any time the City determines that the performance of the work under this contract is being unnecessarily delayed, that the BANK is violating any of the conditions or covenants of this Agreement, that it is executing the same in bad faith or otherwise not in accordance with the terms of said Agreement; then, in addition to other rights the City may choose to exercise, the city may, at its option, serve written notice upon the BANK of the City's intention to terminate this Agreement, and, unless within ten (10) days after the serving of such notice upon the BANK a satisfactory arrangement be made for the continuance thereof, this Agreement shall cease and terminate unless the City otherwise agrees to continue the Agreement. In the event of such termination, the City shall immediately serve notice thereof upon the BANK, and the City may take over the work and prosecute same to completion by contract with another banking institution or otherwise and in such event the City may take possession of and utilize in completing the work any and all documents and other materials as may be necessary therefore. When 23 city of Salina BANK's services have been so terminated, such termination shall not affect any rights or remedies of the City against BANK then existing or which may later accrue. Similarly, any retention or payment of monies due BANK shall not release BANK from liability. b. Termination for Convenience. City reserves the right, in its sole discretion and or its convenience and without cause or default on the part of the BANK, to terminate this Agreement by providing sixty (60) days prior written notice of such termination to BANK. Upon receipt of such notice from City, BANK shall: (1) immediately cease all work or (2) meet with City and, subject to City's approval, determine what work shall be required of BANK in order to bring the Project to a reasonable termination in accordance with the request of the City. If City shall terminate for its convenience as herein provided, City shall compensate BANK for all work completed to date of termination. Compensation shall not include anticipatory profit or consequential damages, neither of which will be allowed. Any termination of the Agreement for alleged default by BANK that is ultimately determined to be unjustified shall automatically be deemed a termination for convenience of the City. 2. INDEMNITY a. Definitions For purposes of indemnification requirements, the following terms shall have the meanings set forth below: i. The "BANK" means and includes BANK, all its employees, agents and assignees, and all its affiliates and subsidiaries, its subcontractors and/or assignees and their respective servants, agents and employees; and ii. "Loss" means any and all loss, damage, liability or expense of any nature whatsoever, whether incurred as a judgment, settlement, penalty, fine or otherwise (including attorney's fees and the cost of defense). b. Indemnity For purposes of this Agreement, BANK hereby agrees to indemnify, defend and hold harmless the City, its employees and agents from any and all "Loss" where "Loss" is caused or incurred or alleged to be caused or incurred in whole or in part as a result of the negligence of other actionable fault of the BANK. It is agreed as a specific element of consideration of this Agreement that this indemnity shall apply notwithstanding the joint, concurring or contributory or comparative fault or negligence of the City or any third party and, further notwithstanding any theory of law including, but not limited to, a characterization of the 24 city of Salina City's or any third party's joint, concurring or contributory or comparative fault or negligence as either passive or active in nature; provided; however, that the BANK's obligation hereunder shall not include amounts attributable to the fault of negligence of the City. Nothing in this section shall be deemed to impose liability on the BANK to indemnify the City for loss when the City's negligence or other actionable fault is the sole cause of loss. 3. INSURANCE During the performance of this contract, the BANK agrees to maintain for the duration of the contract, insurance coverage of the types and minimum liability as set forth below. Before entering into a contract, the successful bank shall furnish to the City a Certificate of Insurance verifying such coverage and identifying the City as a loss payee on the valuable paper's coverage. The certificate holder on the Certificate of Insurance shall be as follows: City of Salina, Kansas c/o City Clerk 300 West Ash Street, Room 206 Salina, KS 67402-0736 Prior to any material change or cancellation, the City will be given thirty (30) days advanced written notice, by registered mail, to the stated address of the certificate holder. a. Banker's Professional Liability: $2,000,000 per occurrence and as an annual aggregate. b. Banker's Blanket Bond: Coverage must be provided on Banker's Blanket Bond Standard Form 24 with a minimum limit of $3,000,000 per loss under Insuring Agreements A -Fidelity, B -On Premises and C -In Transit. A minimum limit of $2,000,000 shall be provided under Insuring Agreements E -Securities. Computer Crime coverage, in an amount not less than $2,000,000, is to be provided either by endorsement to the Banker's Blanket Bond or by separate bond. If courier/messenger services is to be utilized for pickup and delivery of receipts, this service must also be covered under the Banker's Blanket Bond. c. Cyber Liability: Vendor shall maintain cyber liability insurance covering acts arising out of their operations or services, including data and network liability/privacy and security liability; data breach response expense and notification. The policy limits shall not be less than the following: 1. Each wrongful act $1,000,000 25 city of Salina d. Workers' Compensation and Employer's Liability i. Workers' Compensation: Statutory ii. Employer's Liability: 1. Bodily Injury by Accident $100,000 each accident 2. Bodily Injury by Disease $500,000 policy limit 3. Bodily Injury by Disease $100,000 each employee e. Industry Ratings: The City will only accept coverage from an insurance carrier which offers proof that the carrier: i. Is licensed to do business in the state of Kansas ii. Carries a Best's Policyholders rating of A or better; and iii. Carries at least a Class X financial rating; or iv. Is a company mutually agreed upon by the City and the BANK A statement to the effect that the institution meets the insurance requirements must be contained in the response to the proposal. A certificate of insurance, naming the City as additional insured, shall be provided to the City by the successful institution within fifteen (15) days after notification of award. 4. COMPLIANCE WITH EQUAL OPPORTUNITY LAWS, REGULATIONS, RULES AND LAWS The BANK shall remain informed of, and shall comply with, all applicable laws, ordinances, rules, regulations, and orders of the City, County, State, Federal, or any other public bodies, which apply to work performed under this agreement. The BANK shall provide all necessary safeguards and protections as set forth by the United States Department of Labor, Occupational Safety, and Health Administration. The BANK agrees that: a. The BANK shall observe the provisions of the Kansas Act Against Discrimination (K.S.A. 44-1001 et seq.) and shall not discriminate against any person in the performance of work under the present Agreement because of race, religion, color, sex, national origin, ancestry or age; b. In all solicitations or advertisements for employees the BANK shall include the phrase "equal opportunity employer" or a similar phrase to be approved by the Kansas Human Rights Commission ("Commission"); a City of Salina c. If the BANK fails to comply with the manner in which the BANK reports to the Commission in accordance with the provisions of K.S.A. 44-1031 and amendments thereto, the BANK shall be deemed to have breached the present Agreement, and it may be canceled, terminated or suspended, in whole or in part, by the contracting agency; d. If the BANK is found guilty of a violation of the Kansas Act Against Discrimination under a decision or order of the Commission which has become final, the BANK shall be deemed to have breached the present Agreement, and it may be canceled, terminated or suspended, in whole or in part, by the contracting agency; and e. The BANK shall include the provisions of paragraphs 1. Through 4. above in every subcontract or purchase order so that such provisions will be binding upon such subcontractor or vendor. The BANK further agrees that the BANK shall abide by the Kansas Age Discrimination In Employment Act (K.S.A. 44-111 et seq.) and the applicable provision of the Americans with Disabilities Act (42 U.S.C. 1201 et seq.) as well as all other federal, state and local laws, ordinances and regulations applicable to this project and shall furnish any certification required by any federal, state or local laws, ordinances and regulations applicable to this project and shall furnish any certification required by any federal, state or local government agency in connection therewith. 5. GOVERNING LAW All contractual agreements shall be subject to, governed by, and construed according to the laws of the State of Kansas. 6. NEGOTIATION The City reserves the right to negotiate any and all elements of this proposal. 27 EXHIBIT A: APPLICATION TO ACT AS DEPOSITORY CITY OF SALINA, KANSAS REQUEST FOR PROPOSAL FOR BANKING SERVICES BANK NAME To: City of Salina Request for Proposal — Banking Services Attn: Debbie Pack 300 West Ash Street, Suite 206 Salina, KS 67402-0736 DATE The undersigned certifies that the bank submitting this proposal is an institution eligible to be a depository of public funds pursuant to K.S.A. 9-1401, et seq., as amended. Please answer the following question: Does the Bank have a main office or a branch office in the City of Salina, Kansas? Yes No If no, please indicate nearest location to Salina, Kansas: The undersigned hereby proposes, if selected by the City of Salina, to furnish the following services at the prices and terms stated, subject to all instructions, hereto. By submitting this signed proposal, the bank officially agrees to provide the services requested. This agreement covers all the terms, conditions and specifications of this proposal. The prices shall remain fixed for the term of the contract. Proposing Bank: By: Title: W., City of J Salina EXHIBIT B: REQUIRED SERVICES CITY OF SALINA, KANSAS REQUEST FOR PROPOSAL FOR BANKING SERVICES Financial Information: As of Qtr. End Date: FDIC Insurance Coverage: Yes No CRA Rating: Total Assets: Total Equity: Ratio — Equity divided by the Assets in % form: Current Net Profit Loss of Qtr.: Profit (Loss) as a percent of Equity: Total Deposits: Total Time Deposits of $100,000 or more: Total Loans: Total Loans 90 Days or More Past Due: Loan Loss Reserve as % of Total Loan: Total Troubled Debt: Total Renegotiated Amount of Troubled Debt: Allowance for Losses on Non -Real Estate Loans: Capital Ratio (Tier 1 and Tier 2; three most recent years): Risk Based on Capital Ratio (three most recent years): DBE Financial Institution: Yes No Enclose a copy of the most recent audited financial statement 29 City of J Interest Calculation: The financial institution will pay the City interest on daily collected balance in the City's account at the rate named below. The rate may be a fixed or variable rate. If the rate is variable, state the index used and the number of basis points above or below the index. Provide a one-year history of the index. General Operating Account: Fixed %: % Variable: Tied to T-bill rate Basis Points Above Other Index* Basis Points Below % Rate Only *State index to be used All Other Accounts: Fixed %: % Variable: Tied to T-bill rate Basis Points Above Other Index* Basis Points Below % Rate Only *State index to be used 30 The City currently maintains a $10,000,000 operating account balance with a nightly sweep. SWEEP ACCOUNT BALANCES BY MONTH FOR 2021-2022 MONTH ACCOUNT BALANCE January -21 99,237,745 February -21 62,158,726 March -21 60,598,547 April -21 70,620,221 May -21 78698,146 June -21 73,048,136 July -21 75,406,230 August -21 74,537,086 September -21 68,161,173 October -21 68,227,236 November -21 69,331,261 December -21 69,126,048 January -22 78,768,655 February -22 78,748,357 March -22 79,602,367 April -22 82,679,598 May -22 80,631,882 June -22 90,300,791 July -22 90,554,975 August -22 86,122,359 September -22 80,693,942 31 City of J salillllck PRICING WORKSHEET Account Services Per Item Monthly Fee Charge Please provide list all costs that apply to services offered. 32 City of J Salina EXHIBIT C: OPTIONAL SERVICES CITY OF SALINA, KANSAS REQUEST FOR PROPOSAL FOR BANKING SERVICES Use Exhibit C to submit your proposal for the optional services specified in Section V of this RFP. This includes: 1. Courier and Armored Car Services 2. Check Issuance 33 City of J saliva EXHIBIT D: OTHER VALUE-ADDED SERVICES CITY OF SALINA, KANSAS REQUEST FOR PROPOSAL FOR BANKING SERVICES Use Exhibit D to submit your proposal for other services not specified by this RFP. 34 Analysis of Banking Proposals Assumptions: Earnings • Monthly rate of proposed index rate +/- adjustment • Date of rate 11/21/2022 • Funds on Deposit - $25,000,000 average monthly balance • Annual Earnings calculated + Minimum Balance and alternative rate + Remaining Balance on proposed discounted rate X 12 months = Total Annual Earnings Expenses • Average service usage by the City per month • Cost of each service per proposal Q per month :. Acct Maint 1 ACH Edit Stmt fee 1 ACH File 23 ACH Notification of 3 ACH originated items 5467 ACH Origination Maint 1 ACH Positive Pay Maint 1 ACH return debits 8 ACH positive pay 4 Credits 156 Deposited items 6530 Checks/ACH Debits/Other 693 On-line banking per acct 1 Incoming domestic wire 1 EDI remittance report 1 Online banking per acct 1 Positive pay no recon 1 P ositive pay no recon 553 Check positive pay 2 returned deposited items 5 service chargeable debits 5 lockbox monthly maint 1 image transmission main 1 lockbox online access 1 Monthly Maint 1 lockbox deposits 22 lockbox deposited items 6530 Multiple item processing 6530 Lockbox online viewing> 1 image capture checks 6530 electronic credits 543 Investment/ICS Sweep 1 Garda 1 Itemized Earnings Proposals: *Credit to offset fees only Annual Fees: Bennington Equity #1 Equity #2 Sunflower UMB Total Annual Fees $118,740* 62,849.16 62,849.16 0** 55,420.74 Minimum Balance $5,000,000 $1-$4.99M N/A $6,500,000 N/A Rate on Min Bal 0% 1.25% 1%* >$5,M 2.5% Remaining Funds $20,000,000 525,000,000 $18,500,000 $25,000,000 Index 3 month MIP less 20 bps (.20%) Fixed Rate Lower end Fed Funds less 10 bps (.10%) Upper Fed Funds less 2.35% Upper Fed Funds less 80 bps (.8%) Index on 11/21/22 3.97% 3.75%-4.0% 3.75%-4.0% 3.75%-4.0% Discounted Rate 3.77% 3.65% 1.65% 3.2% Floor Rate .20% .25% .25% Annual Earnings on Min Bal 0 N/A N/A 0 N/A Annual Earnings on Remaining Funds 754,000 625,000 912,500 305,250 800,000 Total Annual Earnings $754,000 $625,000 $912,500 $305,250 $800,000 *Credit to offset fees only Annual Fees: *Fees waived with exception of Lock Box, Credit Cards and Treasury &Wealth Management **Fees covered with credit on minimum balance Net Proceeds: Bennington Equity #1Equity #2 Sunflower UMB Total Annual Fees $118,740* 62,849.16 62,849.16 0** 55,420.74 *Fees waived with exception of Lock Box, Credit Cards and Treasury &Wealth Management **Fees covered with credit on minimum balance Net Proceeds: Bennington Equity #1 Equity #2 Sunflower UMB Net Annual Proceeds $635,260.00 $562,150.84 $849,650.84 $305,250 $744,579.26 RESOLUTION NUMBER 23-8106 A RESOLUTION DESIGNATING THE OFFICIAL DEPOSITORIES FOR ALL MONEYS OF THE CITY OF SALINA, KANSAS, PROVIDING AUTHORIZATION FOR WIRE TRANSFERS, DESIGNATING AUTHORIZED CHECK SIGNERS, AUTHORIZING SECURITIES PURCHASES AND/OR SELL AND REPEALING RESOLUTION NUMBER 19- 7773. WHEREAS, K.S.A. 9-1401 requires that all municipalities depositories of the governing body's funds, WHEREAS, K.S.A. 9-1401 also states that banks, savin$`s'ai which have main or branch offices in the county in which atl or K be designated as such official depositories, and by official action, all eligible associations and savings banks the municipality is located shall WHEREAS, Bennington State Bank, Equity Bank, TTMB Bank, Sunflower Bail,, The Bank of Tescott, Central National Bank, Solomon State Bank, Capi b "Pedeial SiYJngs, Bank VI (a Division of Plains State Bank), First Bank Kansas, and Exchange Bank are autNi"i ed depositories'fo municipal funds, and � .. WHEREAS, the City Manager, Deputy City. Manager, Finance,"Dtfector and Deputy Finance Director are responsible for the daily;finapcial operations of the Ctyyof Sa1ma:SO NOW, THEREFORE BE IT RESOLVED by the Goverriing Bodyo'the`Czt of Section 1. That all public moneys :,received bythe City of Salina be deposited in Bennington State Bank, Equity Bank, UMB'�Bankr .Sunhower Bank, The Bank of Tescott, Central National Bank, Solomon State Bank;:Capitol Federal Savings, Bank VI, First Bank Kansas, or Exchange Bank, all of which are authoriied,deposil les of municipal funds, located in the City of Salina, Saline Countv'Kansas. Section 2. `,Thathe City Manager, Deputy City Manager, Finance Director, Deputy Finance Director and Human Resource Director are authorized to approve ACH and wire transfer payments on behalf of the Citvof Salina Section 3. That the City',IVaager, Deputy City Manager, Finance Director and Deputy Finance Director may authorize check signers and access to the various accounts required by the City of Salina. Section 4. That the City Manager, Deputy City Manager, Finance Director and Deputy Finance Director are authorized to approve the purchase and/or sell of securities for the account of the City of Salina. Section 5. That Resolution Number 19-7773 is hereby repealed. Adopted by the Board of Commissioners and signed by the Mayor this 6t" day of February, 2023. (SEAL) ATTEST: JoVonna Rutherford, City Clerk Michael L. Hoppock., Mayor CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 01/23/2023 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: 6 FINANCE & ADMINISTRATION BY: ITEM FINAL APP OVAL: NO: 4 4��7 Page 1 BY: Debbie Pack BY: ITEM: Resolution No. 23 -8% - Resolution No. 23-8103 Adopting the 2023-2027 Capital Improvement Program. BACKGROUND: The Capital Improvement Program includes two distinct categories. The first is the 5 Year Capital Improvement Program, which is typically large dollar projects with long life cycles that may be funded with current cash, but are often funded with debt financing. The second category is the Sub-CIP which is a mechanism to provide preapproval by the City Commission for larger (over $20,000) cash supported items broken out into six categories: CIP Planning, Building & Facilities, Parks, Streets, Vehicles & Equipment and Water/Wastewater Enhancements. 2023-2027 Capital Improvement Program The proposed 2023-2027 Capital Improvement Program (CIP) is attached for review. The CIP provides the anticipated schedule of Capital projects and Capital outlay for the next five years along with anticipated funding sources. Also included are projects that have been identified but are not programmed into specific years because further work is needed to define scope and/or funding source(s). The proposed CIP was presented to the City Commission during study sessions dated June 28 and July 6, 2022. The proposed CIP has been reviewed by the Planning Commission at their meeting on January 31, 2023. Resolution No. 23-1 from that body is attached and finds that the proposed 2023 CIP projects are consistent with the goals and policies set forth in the Comprehensive Plan. Changes to the CIP as it was presented to City Commission on June 28th include on September 19, 2022 the City Commision approved adding the Sanitation Truck Building project and staff identified the need to add the design of Land Fill Cell 21 to 2023 at a cost of $100,000 to be paid from the Solid Waste Fund and construction of Cell 21 to 2024 to be debt financed. 2023 Sub-CIP During the annual budget process, the City Commission approves the level of spending allocation from each fund that supports Sub-CIP purchases and staff brings back the detailed proposed spending of those allocations at a later date. As a result of historical under spending of the annual allocations, on October 25, 2021, the City Commission approved Ordinance 21-11091 establishing Reserve funds to be used for the on-going purchase of Sub-CIP items, funded by a transfer of the annual allocation, in the Building & Facilities, Parks, Streets and Vehicle & Equipment categories in addition to a Fleet Management Reserve Fund to fund the newly entered into Lease agreement with Enterprise. On October 25, 2021, the City Commission also approved Resolution No. 21-7996 authorizing the transfer of funds to be transferred into these funds based on the historical underspending in each category. Because this process was CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 01/23/2023 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: FINANCE & ADMINISTRATION BY: ITEM FINAL APPROVAL: NO: Page 2 BY: Debbie Pack BY: done mid -year in 2021, there were funds remaining from 2021 allocations that have been budgeted to be transferred to the reserve funds in 2023. The table below shows those amounts: Fund 2021 Unspent to be Transferred in 2023 Park Maintenance Fund $390,900 Building and Facilities Fund 127,800 Vehicle &Equipment Fund 70,900 As part of the annual budget process, departments submit requests for Sub-CIP purchases. Requests for Buildings & Facilities requests are reviewed by the Building Maintenance Supervisor. Requests for Vehicles & Equipment are reviewed by the Central Garage Supervisor. The City Manager then reviews and recommends the items to be included in the annual detail. Any item not recommended by the City Manager is returned to the department for future request or purchase from the department's operating budget. The detail of the six categories, as recommended by the City Manager, is attached for review and approval. Each item over $30,000 or part of a scope of work that will exceed $30,000 will come back to the City Commission for authorization to purchase after bids are received. FISCAL NOTE: Many items included in the CIP will be funded with available cash resources while other larger projects will require the issuance of temporary notes and/or general obligation or revenue bonds. Although it is not possible to know the financing terms of these instruments at this time, staff will work closely with bond counsel and our muncipal advisors to ensure issuances are structured in accordance with state and federal laws as well as City of Salina policies. Anticipated funding sources for each project are provided in the attached "2023-2027 CIP by Funding Source" table. All cash -funded projects exceeding $30,000 and any debt issuance will be presented to the City Commission for approval prior to expenditure commitment or debt obligation. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 01/23/2023 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: FINANCE & ADMINISTRATION BY: ITEM FINAL APPROVAL: NO: Page 3 BY: Debbie Pack BY: COMMISSION ACTION: A. Approve Resolution No 23-8103 adopting the 2023-2027 Capital Improvement Program B. Approve Resolution No. 23-8103 with amendments the City Commission deems appropriate. C. Postpone consideration of Resolution No. 23-8103 to a specific date giving staff direction on additional information requested. D. Do not approve Resolution No. 23-8103 giving staff further direction. If resolution is not approved, staff does not have the authority to proceed with the procurement of these items. Attached: Resolution 23-8103 2023-2027 Capital Improvement Program 2023-2027 CIP by Funding Source 2023 Sub-CIP Resolution 23-1 (from Planning Commission) RESOLUTION NUMBER 23-8103 A RESOLUTION ADOPTING THE 2023-2027 CAPITAL IMPROVEMENT PROGRAM FOR THE CITY OF SALINA, KANSAS. WHEREAS, the City of Salina has established a Capital Improvement Program Policy as a component of its Financial Policies Document; and WHEREAS, the Policy includes establishment of a five-year Capital Improvement Program (C.I.P.) to guide decision making on public improvements° and expenditures; and WHEREAS, the City Commission has cornpletd its annual review of capital improvement planning. SO NOW THEREFORE BE IT RESOLVED by the Governing` Body of the City of Salina, Kansas: Section 1. That the 2023-2027 Capitat Improveme=nt, Program is hereby adopted. Section 2. That no project shall be initiated unless said project is contained in the adopted Capital Improvement Program or otherwise authorized by the Governing Body. Section 3. That the Capital Im"'br hent Prograwthis resolution may be amended from time to time as deem6d appropriate by the Governing Bpdy Section 4 That this iesglution shall be;,n full force'and effect from and after its adoption. Adopted by "the Board of Commissioners and signed by the Mayor this 6th day of Februai (SEAL ATTEST: JoVonna Rutherford, City Clerk Michael A. Hoppock, Mayor DEPARTMENT OF FINANCE AND ADMINISTRATION Debbie Pack, Director 300 West Ash, P.O. Box 736 Salina, KS 67402-0736 February 6, 2023 To: Salina City Commission TELEPHONE (785) 309-5735 FAX (785) 309-5738 TDD (785) 309-5747 E-MAIL debbie.pack@salina.org Website: www.salina-ks.gov Attached please find a draft of the 2023 through 2027 Capital Improvements Program (CIP) Projects are either scheduled into a specific year or placed in a category for "further review". Projects scheduled into a specific year have a defined scope and cost estimate as well as being associated with a specific funding source, and are grouped into years. The first year of a project is indicated by a (New project) after the title. Projects for further review are those projects that have been identified as potential needs, but which do not yet have a well-defined scope, cost estimate, or financing sources identified. These projects are not considered in the financial projections. Each project is identified by a title and a brief description of the project. Following that, a cost estimate is provided and source of funding is identified. The 2023 "Sub-CIP" (annual cash financed acquisitions and projects) is included at the back of the document. The sub-CIP for 2023 includes the following categories: Sub-CIP Class Budget (all funds) CIP Planning $ 100,000 Buildings and Facilities $ 320,500 Special Parks $ 192,500 Neighborhood Parks $ 40,000 Parks Maintenance $ 500,000 Streets, Traffic and Sidewalks $ 5,916,000 Vehicles and Equipment $ 2,538,000 System Enhancements $ 1,560,000 Sales Tax Support CIP Projects $ 3,750,000 __ _1 I Page 2023 Projects Sales Tax Projects: Hike Bike Trail Complete annual segments of the trail improvement. Completion of all trail segments is anticipated by 2025 at current rates of improvement. Project cost: $50,000 Source of funding: Sales Tax Parks Capital Improvements Plan, Phase Four Projects to be identified through Parks Master Plan. Project cost: $500,000 Funding source: Sales Tax Street Surface Improvements Projects listed in Sub-CIP Project cost: $3,200,000 Funding source: Sales Tax Special Gas Tax Projects: North 9th Street Pedestrian Signal (HAWK) North Salina Community Development requested a pedestrian signal between Hamilton Avenue and Anterim Avenue on 9th Street to assist pedestrians access to the convenience store, bus stop and little library (at the bus stop). Project Cost: Funding Source Property Tax Projects: $50,000 Special Gas Tax Relocation of Fire Station #4 — Construction Relocation of Fire Station #4 from NE corner of Crawford and Marymount to the SE corner of Crawford and Markley. Building was built in 1968. Living quarters and apparatus bay are inadequate for modern technology, as well as, apparatus size. Total Cost: $4,500,000 Funding Source: Temporary Notes issued in 2023 with General Obligation Bonds supported by Property Tax issued in 2024 or after completion of project. (Annual debt payment $330,000 for 20 years 2025-2044) 21 Page Enterprise Fund Protects: Waterline Improvements The water distribution system engineering analysis identified a significant portion of the system in need of replacement due to aging condition and occlusion. Approximately 228 miles of line are cast iron over 40 years old. This project will replace approximately 8 miles of waterline per year with PVC pipe. Project cost: $2,000,000 annually Source of funding: Cash from Water/Wastewater Fund Sanitation Building Building to house, wash and repair new automated Sanitation Trucks. Project cost: $435,000 Source of Funding: Debt Financing, 20 years, supported by Sanitation Fees Land Fill Cell #21 Design Cell 21 Construction Design and Bidding Assistance: The Landfill engineering consultant will provide professional engineering services required to prepare for constructing the cell in 2024. Services include: pre -design planning and borrow source testing; cell design and construction document preparation and approval; bidding assistance and contract addenda. Project cost: $100,000 Source of funding: Solid Waste Fund Total Cost 2023 Projects: $ 10,735,000 2023 Projects cont. 2023 Funding Summary Sales Tax Fund Cash $ 3,750,000 Special Gas Tax Fund Cash 50,000 Property Tax Debt Financed 2025-2044 $303,000/ r) 4,500,000 Enterprise Fund Cash 2,100,000 Enterprise Fund Debt 2025-2044 ($32,000/yr) 435,000 Total 2023 Projects $ 10,835,000 31 Page 2024 Proiects Sales Tax Proiects: Hike Bike Trail Complete annual segments of the trail improvement. Completion of all trail segments is anticipated by 2025 at current rates of improvement. Project cost: $50,000 Source of funding: Sales Tax Street Surface Improvements Projects listed in Sub-CIP Project cost: $3,200,000 Funding source: Sales Tax Parks Capital Improvements Plan, Phase Four Projects to be identified through Parks Master Plan. Project cost: $500,000 Funding source: Sales Tax Total Sales Tax Cash Protects: $ 3,750,000 Enterprise Fund Protects: Waterline Improvements The water distribution system engineering analysis identified a significant portion of the system in need of replacement due to aging condition and occlusion. Approximately 228 miles of line are cast iron over 40 years old. This project will replace approximately 8 miles of waterline per year with PVC pipe. (annual debt payment $295,000 for 20 yrs 2023-2042) Project cost: $2,000,000 annually Source of funding: Cash from Water/Wastewater Fund Land Fill Cell 21 Construction Cell 21 Construction in accordance with the Landfill Master Plan. Project cost: $3,250,000 Source of funding: GO Bond and/or Solid Waste Fund Total Cost 2024 Proiects: $ 9,000,000 41 Page 2024 Funding Summary Sales Tax Fund Cash $ 3,750,000 Enterprise Fund Cash 2,000,000 Enterprise Fund Debt 2026-2030 ($730,000/yr) 3,250,000 Total 2024 Projects $ 5,750,000 51 Page 2025 Projects Sales Tax Protects: Hike Bike Trail Complete annual segments of the trail improvement. Completion of all trail segments is anticipated by 2025 at current rates of improvement. Project cost: $50,000 Source of funding: Sales Tax Street Surface Improvements Projects listed in Sub-CIP Project cost: $3,200,000 Funding source: Sales Tax Parks Capital Improvements Plan, Phase Four Projects to be identified through Parks Master Plan. Project cost: $500,000 Funding source: Sales Tax Enterprise Fund Protects: Waterline Improvements The water distribution system engineering analysis identified a significant portion of the system in need of replacement due to aging condition and occlusion. Approximately 228 miles of line are cast iron over 40 years old. This project will replace approximately 8 miles of waterline per year with PVC pipe. (annual debt payment $295,000 for 20 yrs 2024-2043) Project cost: $2,000,000 annually Source of funding: Cash from Water/Wastewater Fund Total Cost 2025 Projects: $ 5,750,000 2025 Funding Summary Sales Tax Fund Cash $ 3,750,000 Enterprise Fund Cash 2,000,000 Total 2025 Projects $ 5,750,000 61 Page 2026 Protects Sales Tax Proiects: Hike Bike Trail Complete annual segments of the trail improvement. Completion of all trail segments is anticipated by 2025 at current rates of improvement. Project cost: $50,000 Source of funding: Sales Tax Street Surface Improvements Projects listed in Sub-CIP Project cost: $3,200,000 Funding source: Sales Tax Parks Capital Improvements Plan, Phase Four Projects to be identified through Parks Master Plan. Project cost: $500,000 Funding source: Sales Tax Enterprise Fund Protects: Waterline Improvements The water distribution system engineering analysis identified a significant portion of the system in need of replacement due to aging condition and occlusion. Approximately 228 miles of line are cast iron over 40 years old. This project will replace approximately 8 miles of waterline per year with PVC pipe. (annual debt payment $295,000 for 20 yrs 2024-2043) Project cost: $2,000,000 annually Source of funding: Cash from Water/Wastewater Fund Total Cost 2026 Protects: $ 5,750,000 2026 Funding Summary Sales Tax Fund Cash $ 3,750,000 Enterprise Fund Cash 2,000,000 Total 2026 Projects $ 5,750,000 71 Page 2027 Projects Sales Tax Proiects: Hike Bike Trail Complete annual segments of the trail improvement. Completion of all trail segments is anticipated by 2025 at current rates of improvement. Project cost: $50,000 Source of funding: Sales Tax Street Surface Improvements Projects listed in Sub-CIP Project cost: $3,200,000 Funding source: Sales Tax Parks Capital Improvements Plan, Phase Four Projects to be identified through Parks Master Plan. Project cost: $500,000 Funding source: Sales Tax Enterprise Fund Projects: Waterline Improvements The water distribution system engineering analysis identified a significant portion of the system in need of replacement due to aging condition and occlusion. Approximately 228 miles of line are cast iron over 40 years old. This project will replace approximately 8 miles of waterline per year with PVC pipe. (annual debt payment $295,000 for 20 yrs 2024-2043) Project cost: $2,000,000 annually Source of funding: Cash from Water/Wastewater Fund Total Cost 2027 Projects: $ 5,750,000 2027 Funding Summary Sales Tax Fund Cash $ 3,750,000 Enterprise Fund Cash 2,000,000 Total 2026 Projects $ 5,750,000 81 Page Identified but Unfunded Partnership Protects Former Schilling Airforce Base Cleanup — City of Salina's portion of the Dept of Justice settlement for contamination at the former Schiling AFB. Total project costs and period of payment are unknown at this time. Cost Est. $5 to $12 million 91 Page Proiects for Further Review Projects for further review are those projects that have been identified as potential needs, but which do not yet have a well-defined scope, cost estimate, or financing sources identified. Facility's Maintenance Building The main office of the Facility Maintenance department, currently located at 420 East Ash is a 27'x48' building. This barely gives staff enough space for accommodations. The balance of the operations is spread out throughout the City in various locations. The primary function of the FM Department is to fulfill the custodial and facility needs of others. A larger location would allow for consolidation of staff and equipment into one centralized facility that would allow senior staff the ability to monitor, organize and manage all facets of the department, increasing efficiency and capacity. Project Cost: $455,000 Funding Source: Unknown Public Works Campus Design and Master Plan Currently located at 412 East Ash Street and corresponding Utilities and Parks and Recreation building and storage sites. Current location is undersized and conflicts with the development of the downtown River Renewal project. Project Cost: $ 1,200,000 — Design $12,000,000 - Construction Funding Source: Unknown Comprehensive Planning and Zoning Code Update The City's current comprehensive plan is over 12 years old. This document needs to be updated to reflect the more current direction of the City and is a foundational document to the community's decision making process. In addition, the zoning code has not been updated in a comprehensive manner for more than 30 years and is in desperate need of modernizing. It is common to do both a comprehensive plan and zoning code update in tandem when both are needed in order to assure that zoning code reflects changes set by the revised comprehensive plan. Project Cost: $500,000 Funding Source: Unknown Police Department Expansion/Remodel The current police department facility was constructed in 1967. This project would provide for the expansion of the Salina Police Department into the space being vacated by the Saline County Sheriff's Office, once the new jail is complete. Includes remodel and improved workspace efficiency for both the police department and sheriff's department sides of the law enforcement center, creating a modern police facility. The police department space needs assessment has been conducted and concludes that the current police facility is lacking adequate square footage for effective and efficient operations of what would be considered a modern police facility. Project Cost: $ 600,000 — Design $7,046,660 — Construction Funding Source: Unknown West Magnolia Improvements Magnolia Road from Centennial Road to Interstate 135 is designated as an impact street in the City's 2010 Comprehensive Plan and is also classified as an arterial street. A traffic study is currently being performed that will determine the traffic counts and incorporate some of the planned and future development opportunities along the project extents from 1-135 west to 101 Page Centennial Road. This route services shopping, hotels, K -State Salina, and the industrial airport complex from a central point in the City. This has and will continue to result in higher traffic volumes and continued pavement deterioration. Project Cost: $ 1,400,000 — Design $10,500,000 — Construction Funding Source: Unknown 11 1 Page 2023-2027 CIP - DRAFT Requested and Recommended Projects Year Project Cost Annual cost if debt financed Funding Term Paymentsource 2023 Relocation of Fire Station #4 $4,500,000 330,000 GO Bonds 20 Property Tax Hike Bike Trail $50,000 Sales Tax Cash Parks Capital Improvement Plan $500,000 Sales Tax Cash Street Improvements North 9th Street Pedestrian Signal (HAWK) Subtotal Sales Tax Waterline Improvements Sanitation Truck Building Landfill Cell 21 Design Subtotal Enterprise Funds Total 2023 Projects $3,700,000 $50,0001 $8,800,000 $2,000,0001 $435,000 $100,000 $2,535,000 $11,335,000 Sales Tax Special Gas Tax $330,000 Utility Fund GO Bonds Solid Waste Fund $0 Cash Cash Cash 20 Sanitation Fees 2024 lSales �C.pital Tax Cash Pamprovement Plan 1 $500,0001 Sales Tax Cash Streetlmprovements Subtotal Sales Tax Waterline Improvements Landfill Cell 21 Construction Subtotal Enterprise Funds Total 2024 Projects 2025 1 $3,200,000 $3,750,000 $2,000,0001 $3,250,000 $2,000,000 $5,750,000 Sales Tax $0 Utility Fund GO Bonds $0 Cash Cash Solid Waste Fees Hike Bike Trail $50,000 Sales Tax Cash Parks Capital Improvement Plan $500,0001 Sales Tax Cash Street Improvements Subtotal Sales Tax Waterline Improvements Subtotal Enterprise Funds Total 2025 Projects 1 $3,200,0001 $3,750,000 $2,000,0001 $2,000,000 $5,750,000 Sales Tax $0 Utility Fund $0 Cash Cash Hike Bike Trail $50,000 1Sales Tax Cash Parks Capital Improvement Plan $500,0001 Sales Tax Cash Street Improvements Subtotal Sales Tax Waterline Improvements Subtotal Enterprise Funds Total 2026 Projects 1 $3,200,0001 $3,750,000 $2,000,0001 $2,000,000 $5,750,000 Sales Tax $0 Utility Fund $0 Cash Cash 2027 I Hike Bike Trail $50,000 Sales Tax Cash Parks Capital Improvement Plan $500,000 Sales Tax Cash Street Improvements Subtotal Sales Tax Waterline Improvements Subtotal Enterprise Funds Total 2027 Projects $3,200,000 $3,750,000 $2,000,0001 $2,000,000 $5,750,000 Sales Tax $0 Utility Fund $0 Cash Cash Requested but Unfunded Projects Year CIP Requests 2023 Comprehensive Planning and Zoning Code Update $ 500,000 2023 Police Dept. Expansion/Remodel - Design $ 600,000 2023 Public Works Campus Design and Master Plan $ 1,200,000 2023 W. Magnolia Improvements - Design $ 1,400,000 2025 W. Magnolia Improvements - Construction $ 10,500,000 TBD Police Dept. Expansion/Remodel - Design $ 7,046,660 TBD I Public Works Campus Design and Master Plan $ 12,000,000 Q 0 0 C) 0 CD C� C� CD 0 Q 0 0 to 44 (0 6r* 40 0 0 0 0 0 0 0 W N 00 ' h. O co r NO N - O N M N r M M M M M Iq W w Q Q W in O O o D F F- m W J N N Z Z Z FQ-U U Z F-ujm O a oLU LuU) U) w U 0 0 0 0- 0 v> .- en m W OMO M V N r W IA /fl F- in J .J F- U O IQ- FQ- U 1.- O O m Z H H M U W UO O Z a F CO) W V 0 0 C 0 0 CL C, C) C LL LL 0 0 C� Cl0 .0 ,f0 LO C) c0 LO C) C) C 0 0 C 0 0 CL C, C) C C) C) C 0 0 C� Cl0 .0 LO C) U) co LO W U w mu cc u o (D 0 o . 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WHEREAS, pursuant to K.S.A. 12-747, the Salina City Planning Commission is authorized to formulate a comprehensive plan for the City and the unincorporated area lying outside the city which forms the total community; and WHEREAS, on March 2, 2010, the Salina Planning Commission recommended approval of an updated Comprehensive Plan and the Salina City Commission adopted a Comprehensive Plan document for the City of Salina,and surrounding unincorporated area on September 20, 2010; and WHEREAS, the City annually prepares and adopts a Capital Improvement Program which establishes projects to be undertaken during the next fiscal year and proposes projects for the balance of a five-year period; and WHEREAS, the Capital Improvement Program is an integral portion of implementing the goals and policies contained in the Comprehensive Plan; and WHEREAS, a Capital Improvement Program for 2023 and future years has been prepared for submission to the City Commission; and WHEREAS, pursuant to K.S.A. 12-748(d), Planning Commissions are required to review major transportation and utility projects proposed to be undertaken by a city under its Capital Improvement Program for consistency with the intent of the comprehensive plan of the city; and WHEREAS, a hearing was held by the Salina City Planning Commission to review the proposed 2023 Capital Improvement Program for the City of Salina and receive comments from Planning Commissioners and interested citizens on January 31, 2023. NOW THEREFORE BE IT RESOLVED by the Planning Commission of the City of Salina, Kansas: 1. That the Commission finds that the major projects proposed as part of the 2023 Capital Improvement Program (CIP) for the city lie within the Existing Service Area and Primary Growth Area of the city as depicted on the Urban Service Area and Area of Change maps. 2. That the Commission finds that the major projects proposed as part of the 2023 Capital Improvement Program such as street resurfacing, water line replacements, design and construction of a new, relocated Fire Station No. 4, and hike and bike trail network extensions are consistent with the Future Land Use Map, the Urban Service Area Map and the goals and policies in the Salina Comprehensive Plan and that Smoky Hill River renewal and planned park improvements are important to support the continued growth and development of the community. 3. ADOPTED by the Planning Commission of the City of Salina, Kansas on this 31st day of January 2023. 177 trick Mikesell, Ch Salina-CityP anning Commission ATTEST: Dean And ew, Secretary CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 02/06/2023 4:00 P.M. AGENDA SECTION ORIGINATING ORGANIZATION: FISCAL APPROVAL: NO: 6 Salina Community Economic BY: ITEM Development Organization FINAL A ROYAL: NO: 5 Page 1 BY: Mitch Robinson, Exec Dir. BY: ITEM: Superior Contracting and Manufacturing Services Company Industrial Revenue Bond Request BACKGROUND: In late November of 2022 Executive Director Mitch Robinson was contacted by Stephanie Klingzell Carlin of C5 Advisors concerning a possible warehouse/distribution center project for Superior Contracting and Manufacturing Services Co. They discussed the basic project over the telephone and agreed to a meeting date set for Friday, December 2nd. At the meeting on the 2nd, Tim Zimmerman, Kansas Department of Commerce field representative for north central Kansas attended the meeting with Mr. Robinson. Also in attendance was Tim Rogers of the Salina Airport Authority. Company representatives included CEO Chris Harapat, CFO Mark Millard, Chief Development Officer Trevor Franzen and Stephanie Carlin of C5 Advisors. During the discussion, the company discussed their interest in developing a 243,000 square foot distribution center facility that would be made available to area companies to help with warehousing needs of finished products or raw materials for the tenants' production needs. Superior felt this was a needed service that would fit well into their business plan as well as meeting the needs of companies in the community. Superior had been working with developer Tylan Dyer of the Wichita based Petra Investment Partners, whose company has a broad range of experience in building and leasing of warehouse and distribution center properties. Superior had Petra draw up a set of plans for a structure that could be located on 13 acres of undeveloped property along the southern part of their property. The site was purchased by Superior from the former EI Dorado bus operation owners after their closure of the facility. During this meeting we also talked about possible local companies that are potentially in need of warehouse space within the community. Several companies were identified as potential tenants. During this meeting Mr. Robinson and Mr. Zimmerman discussed potential incentive programs available at the local and state levels. At the local levels the use of Industrial Revenue Bonds were discussed including the 10 -year tax abatement and the sale tax abatement for the materials used in the construction of the building. The company had estimates of approximately $21,000,000 in costs for the building. The company would be requesting a 10 -year, 100% abatement for the property taxes as well as abatement on sales taxes for materials used in the construction of the building. A future meeting was planned for late December or early January to meet with Tylan Dyer for more discussions. The meeting was held on Wednesday, January 4t" again at the offices of Superior with the same group attending plus Tylan Dyer and a representative of a local company who was interested in the project. Mr. Dyer provided an overview of the building including tilt -up concrete design, dimensions, eave height, parking, dock doors and other critical details. The interested company official talked about his company's warehousing needs currently, as well as projected future demands. He agreed to have his company's real estate team review the site and make recommendations on their needs and on the proposal. This company's use of the warehouse would be considered interstate commerce since their finished products would be shipped across the United State from this facility. This facility would also bring together all their finished goods into one building which would make this a much more efficient distribution network for the company. A follow up CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 02/06/2023 4:00 P.M. AGENDA SECTION ORIGINATING ORGANIZATION: FISCAL APPROVAL: NO: Salina Community Economic BY: ITEM Development Organization FINAL APPROVAL: NO: Page 2 BY: Mitch Robinson, Exec Dir. BY: meeting was planned to meet with other interested companies who might have additional warehousing needs. On January 10th Robinson, Rogers, Carlin and Dyer met with representatives of four local companies to discuss current and/or future warehousing needs for their operations. Several have current needs and were interested in learning more about potential leasing arrangements. Additional follow-up will take place as details are firmed up for the project. No contracts have been signed. Discussions were held about a possible timeline for the project. Due to the travel schedule of Tylan Dyer a special called SCEDO Board of Directors meeting was scheduled for January 26th at 12:00 noon. CFO Mark Millard completed the City of Salina IRB application as well as the Wichita State University's Center for Economic Development Research's Cost Benefit Analysis form. This was sent to WSU for their review and processing. These were completed for review by the SCEDO Board of Directors as part of the review process. The SCEDO Board would also be using the new Abatement Percentage Guidelines. For several months the SCEDO Board have been reviewing Industrial Bond Revenue procedures from communities across the State of Kansas. On December 15th the Board approved a format using a combination of project investment, new job projections including wage levels and several other factors that will be used to determine the recommended abatement amount for each project. The SCEDO will present this information to the City Commission on February 6th in the study session for that evening's meeting. FUTURE GROWTH / JOB ESTIMATES / WAGE ESTIMATES: Warehouse projects are not large job generating projects. Superior has committed to hiring 3 labor positions that would be working with the potential first tenant. As additional tenants locate in the building Superior, or their tenants, will be adding needed staff to meet the needs of each tenants. Superior will be paying their employees in the $22 - $25 per hour range for any hires. The current Salina County average wage is $17.67 per hour. Similar numbers are estimated to be paid by any tenants. Mr. Dyer has estimated the warehouse might have eight to ten workers employed but will really depend on the product mix stored within the facility. Their intent is to target local companies rather than seeking all outside companies. On January 26th the SCEDO Board of Directors meeting was held with Superior Contracting & Manufacturing Services Co. representatives CFO Mark Millard, C5's Stephanie Carlin and Petra's Tylan Dyer. CEO Chris Harapat and CDO Trevor Franzen took part via a GoToMeetings feed. Eight of the nine SCEDO Board of Directors attended the meeting. In addition SAA Executive Director Tim Rogers, City Manager Mike Schrage and Chamber Interim President Renee Duxler were in attendance as well as two other guests. Mr. Dyer provided an overview of the warehouse project answering several questions of board members. The Industrial Revenue Bonds and interest would be a limited obligation of the City of Salina payable from proceeds from the Company in the form of lease payments. The Bonds are not a general obligation of the City of Salina. They will be purchased by the Company, having the net effect of the Company retaining both the credit and liability for the bonds. The structure of IRB financing affords the AGENDA SECTION NO: ITEM NO: Page 3 CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 02/06/2023 4:00 P.M. ORIGINATING ORGANIZATION Salina Community Economic Development Organization BY: Mitch Robinson, Exec Dir FISCAL APPROVAL: BY: FINAL APPROVAL: BY: Company sales tax exemptions on initial purchases and property tax exemptions for up to 10 years. Again, the City of Salina has no obligation for any payments related to this project. SCEDO BOARD ACTION: Following the Superior / Petra presentation the SCEDO went into closed executive session concerning the possible recommendation. Following a 15 -minute discussion the board followed by an additional 8 - minute closed session, the Board of Directors went back into regular session. On a motion by Rob Exline and seconded by Pete Brungardt, the SCEDO Board of Directors voted to recommend to the City of Salina that Superior Contracting & Manufacturing Co. be granted a 100% abatement for 10 years on property tax and sales tax related to the construction materials. Aye: (8), Nay: (0). One issue that was discussed with the company is their current 30% abatement on their entire property. The entire property was purchased by Superior following the closing of EI Dorado Bus. At that time the company was granted a 30% abatement on the existing buildings and the entire property. The 100% abatement will be less the partial property tax abatement already provided. The SCEDO Board did not want to provide another abatement on the 13 acres that will be used for the warehouse. The company was agreeable to this requirement and will work with the City of Salina via Sarah Steele of Gilmore & Bell to meet this requirement. FISCAL NOTE: There is not direct financial cost to the City associated. The financial impact of authorizing Industrial Revenue Bond financing is the sales and tax exemptions that they afford to the project which are typically considered in light of the overall financial impacts to the economy associated with a project. The Wichita State University's Center for Economic Development and Business Research (CEDBR) completed an economic impact analysis for the industrial revenue bond process. Attached are the CEDBR Impact Studies for an estimated $21,300,000 million bond project The project is expected to be completed in late 2023. Page 2 and 3 of the WSU Cost Benefit Analysis provides the best overview of the impact of the abatement to all the taxing entities. The graphs that are included in the package provide a visible way to see the benefits of the project. COMMISSION ACTION OR RECOMMENDED ACTION: Proceeding with authorization of Industrial Revenue Bonds involves publication of a notice of a public hearing, preparation of a resolution of intent/advisability and providing notice to the County and School District amount other applicable processes and procedures. Staff is prepared to proceed as directed by the City Commission. AGENDA SECTION NO: ITEM NO: Page 4 CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 02/06/2023 4:00 P.M. ORIGINATING ORGANIZATION Salina Community Economic Development Organization BY: Mitch Robinson, Exec Dir FISCAL APPROVAL: BY: FINAL APPROVAL: BY: At this time, staff has identified the following options for the City Commission's consideration: 1.) Approve a motion to instruct staff to proceed with the necessary preparations for the City Commission to initiate Industrial Revenue Bond financing for Superior Contracting and Manufacturing Services Company structured to provide for property tax abatement equivalent to a percentage to be specified by the City Commission. 2.) Postpone consideration of this matter to a specified date and time and provide staff direction regarding additional information or amendments the City Commission would like to request for their further consideration. 3.) Vote to deny Industrial Revenue Bond financing for Superior Contracting and Manufacturing Services Company. Attachments: Impact Study Project DORI Abatement Percentage Guidelines IRB Application Project DORI O N a- . 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QJ U x LU 0 � p a N N r-1 (6 l6 C N O t C N a--+ ru U O T N m .N LO LA LAC Cf) 0 u U O N A C 7 E E O U C: O U ro Q. 0 O N N O 0 4. N (0 a) M U N u U (0 c O QJ C O U 4J ..O N C: O U. QJ U x LU 0 � p a N N r-1 (6 l6 C N O t C N a--+ ru U O T N m .N LO LA LAC Cf) 0 u U O N A C 7 E E O U C: O U ro Q. O N M O 0 4. u Q) .O a N (0 a) M U N u U (0 c O QJ C O U 4J ..O N C: O U. QJ U x LU 0 � p a N N r-1 (6 l6 C N O t C N a--+ ru U O T N m .N LO LA LAC Cf) 0 u U O N A C 7 E E O U C: O U ro Q. I. APPLICATION FOR INDUSTRIAL REVENUE BONDS GENERAL INFORMATION I Superior Contracting & Manufacturing Services Co. 01-19-2023 Name of Applicant Finn Date of Request 2. 1655 Wall St., Bldg B Salina, KS 67401 785-827-5611 N/A Finn Address Phone Number Fax Number Mark Millard, CFO 785-827-5611 N/A Contact person/title Phone Number Fax Number 4. Names and Addresses of other contacts: Chris Harapat 1655 Wall St., Bldg B Salina, KS 67401 785-827-5611 Name Address Phone/Fax Name Address Phone/Fax Name Address Phone/Fax Names and address of the principal owners, officers and directors of the firm requesting the Industrial Revenue Bonds: Name Title Address Mark Millard, CFO Board Member 1655 Wall St., Bldg B Salina, KS 67401 6. Matthew Jensen, Lewis & Brisbois Applicant's Attorney 7. i7(? r{gni IIE:I'C" Applicant's Undenvriter (or Purchaser) Contact Person Address 816-819-5284 N/A Phone Number Fax Number Phone Number Fax Number II. NATURE OF PROJECT FINANCING (if refunding/refinancing, skip to section III) 1. Briefly describe the proposed financing: N/A 2. Is the proposed project a new facility, expansion, or replacement of another existing facility? A New Industrial Warehouse Facility Please state the reason for the establishment of the new facility, expansion or replacement of the existing facility: Salina, KS has a shortage of industrial warhouse space which is a significant factor limiting existing businesses ability to grow. Superior Contracting & Manufacturing Services owns 13 acres of undeveloped land which can be developed into a much needed warehouse and support local business & interstate commerce. 3. Is the applicant's understanding that the interest on the proposed issue is tax-exempt or taxable? (Consult Bond Counsel). 4. Proposed number of years to amortize the bond issue: Ice 5. Describe proposed call features: Unknown 6. Describe the proposed security for the bonds (i.e., pledge of collateral, corporate/personal guarantees, debt service reserve fund, credit enhancements, etc.). VA .o Proposed date of issue: Spring 2023 2 8. Will the bonds be rates? TBD By whom? TBD 9. Interest rate to be fixed or variable rate TBD If variable, please describe: 10. Please attach proposed debt service schedule, if available. N/A 11. Anticipated source and use of project financing. Sources: Uses: Bond proceeds $ Cash Other Interest on Bond Proceeds during construction TOTAL = $ Land cost $ Construction Costs Machinery/Equipment Cost of Issuance (specify) Capitalized Interest Debt Service Reserve Fund Underwriting Fee Other TOTAL = $ 10. Please indicate proposed Trustee. III. REFUNDING/REFINANCING (fill out this section if transaction is refunding of an existing bond issue) N/A 1. Which form of refunding is proposed? N/A a. Advance Refunding b. Current Refunding 2. Current Principal Outstanding $ 3. Purpose of Refunding: Interest savings (attach proposed savings schedule) Extend or shorten repayment (attach debt service schedule) Change indenture covenants (specify) Other (specify) 4. Was the City of Salina the original Issuer? Yes No Original date of issue: 5. If an advance refunding is proposed: Who is the proposed Escrow Trustee? Who is proposed to provide escrow verification? What is the length of escrow account? 6. When are the refunding bonds callable? 7. Is there a call premium? Yes (if so, %) No 8. List estimated sources and uses of refunding bond proceeds: Sources: 1655 Wall St. Buil UsVM, KS 67401 TOTAL = $ TOTAL=$ 4 9. Please list the proposed security of the refunding issue: 10. Proposed offering date of the bond issue: 11. Please describe any material changes that have occurred to the company since the original bond issue, (i.e., new products or services, increase or decrease in employment, changes in sales revenue, net worth, profitability, new locations, etc.). IV. PROPOSED USE 1 Location of the proposed facility. 1655 Wall St. Salina, KS 67401 2. Size of the proposed facility (include size of building and amount of real property): Approximately 243,000 square foot building on approximately 13 acres of land 3. Name of the Architect and Contractor, if designated: Not yet designated Name Address Phone/Fax Name Address Phone/Fax 4. What business is proposed by the applicant at this location? Industrial Warehousing for interstate commerce 5 5. List the products or services to be rendered. (Include details of the nature and scope of the operation of the business): Industrial Warehousing for interstate commerce 6. What percentage of the facility will be occupied by the Applicant? (If less than 100%, please specify other occupants): prospective Tentant have been identified, but no leases have been signed. 7. Describe type of building construction proposed: Concrete Tilt up, pending final design 8. Current zoning: Commercial & Industrial 9. Anticipated date of completion: 3-31-2024 V. ORGANIZATIONAL 1. Describe the organizational structure of the firm (proprietorship, partnership, subsidiary, corporation, not-for-profit, etc.) Corporation 2. Is the Applicant's stock publicly held? No If so, which stock exchange? N/A 3. In what state is the Applicant incorporated? Kansas 4. Date of incorporation. 1979 5. Indicate Applicant's principal bank. Bennington State Bank 6 6. Which CPA firm does the accounting/audit? Joel Benson, Benson Accounting 1911 S. Ohio St., Salina, KS 67401 785-827-3157 Contact person Address Phone/Fax 7. Please indicate what company will be performing the environmental audit: N/A Contact person Address Phone/Fax 8. Describe and pending or threatened litigation: N/A 9. Total employment of Applicant. 120 10. How many locations does applicant currently have? List locations: 1655 Wall St. Salina, KS 67401 430 N. Santa Fe Ave., Salina, KS 67401 - Unoccupied 1645 Copper Court, Salina, KS 67401 - Leased 1650 Wall St., Salina, KS 67401 - Unoccupied VII. MARKETING OF THE BONDS 1. Has the applicant retained a financial advisor, instead of or in addition to an underwriter? N/A Company name Contact person Address Phone/Fax 2. Please indicate the proposed marketing arrangement: N/A Retail public offering Institutional offering 7 Private Placement Applicant purchases issue (indicate %) Other (please describe) 3. Proposed date of issue: 4. Proposed date of offering: 5. Proposed date of closing: 6. Is the issue to be sold interstate or intrastate? 7. If other underwriters are going to participate in the offering please list: Company Principal location VIII. MEASURE OF ECONOMIC GROWTH AND BENEFIT I . Number of expected new additional employees to be hired at this site: Year 1 Year 2 Year 3 Professional _ Technical _ Clerical _ Laborers 3 2. Please indicate any notable characteristics of the employees for this facility: These will be inventory management and transportation specialist jobs 3. Describe the economic benefits to the City's economy if the transaction is completed: The current shortage of warehouse space in Salina, KS is a significant issue impacting recruiting new business to our community as well limiting existing businesses to grow. Superior Contracting & Manufacturing Services Co can address this need by developing our proposed 243,000 square foot warehouse space. E:3 IX. POTENTIAL CONFLICTS Is any City Commissioner an officer, director or employee of the Applicant or hold an ownership interest in Applicant's firm? If so, please identify the individual and the nature of the relationship. No 2. Please describe any other known circumstances that would create a conflict of interest: N/A PLEASE NOTE: Any potential conflicts as disclosed above do not necessarily negate the approval of the Issue, but are pertinent for determining those conflicts for the purpose of public disclosure. X. OTHER INFORMATION Specify below any other data or information you deem pertinent for the City's consideration in passing upon the approval of the proposed project for financing: We have had conversations with several prospective tennants regarding their immediate need for long-term warehouse space. Local needs range from 20,000 square feet to 120,000 square feet. The current lack of warehouse space is inhibiting currect economic development & Salina's ability to attract new business to our community. Superior Contracting & Manufacturing Services Co. owns 13 acres of undeveloped land in the Salina Airport Industrial Center that would be a prime location to develop a warehouse to meet the needs of our community. XI. ATTACHMENTS To facilitate the processing of the application, please attach the following items to the application. 1. Certified copies of applicant's financial audits for the past three (3) years. 2. Applicant's most recent annual or quarterly financial report. 3. Financial Statement, current to date, for each personal guarantor. 4. Pro forma statements for the first five (5) years of operation after issuance of Bonds, including revenue projections, operating expense projections and a debt amortization schedule. 5. Interim financial statements to date, for the current fiscal year. XII. APPLICANT'S AGREEMENT In consideration for the City's acceptance, processing and consideration of this application, Applicant agrees, represents and warrants as follows: Applicant acknowledges that City of Salina policy requires a full payment in lieu of ad valorem property taxes otherwise exempt under Kansas law as a result of the industrial revenue bond financing. Applicant acknowledges having read the City's tax abatement policy set forth in the attached City of Salina Resolution Number 91-4265, including the conditions upon which Applicants project may qualify for partial property tax abatement. Is the applicant requesting partial property tax abatement pursuant to the City's policy? Applicant agrees and understands that Applicant shall be responsible for payingall ll expenses incurred by the Cit,} for professional services pertaining to this application and Applicants project regardless of whether or not the project is approved or a closing on the sale of the contemplated bonds takes place. Applicant represents and warrants that all statements of fact contained in this application are true to the Applicants best knowledge and belief. Partial completion of this application is permitted, however, prior to the adoption of the bond ordinance, the remaining supplementary information to complete this application must be furnished. Additional information may be required by Bond Counsel and the Financial Advisor. It is understood and agreed the information required in Section XI or any other information will be disclosed to the financial team and may be disclosed to the public. DATED this 19th day of January 2023 Applicant's signature Chief Financial Officer Title Return this application to: Shandi Wicks City Clerk City of Salina P.O. Box 736 Salina, ICs. 67402-0736 10 AGENDA SECTION NO: ITEM NO: Page 1 CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION C-9 N ORIGINATING ORGANIZATION Salina Community Economic Development Organization BY: Mitch Robinson, Exec Dir DATE TIME 2/6/2022 4:00 P.M. FISCAL APPROVAL: BY: FINAL AP ROVAL: BY: ITEM: Consideration of Salina Co:,;; r,inity Economic Development Organization Board of (rectors recommendation regarding the Ciiy or Salina's participation in the funding of a proposed agreement with SkyWest Airlines/SkyWest Charter for use of the Salina Regional Airport as an overnight maintenance base. BACKGROUND: The community economic development team meets each month to discuss current and potential economic development projects and related planning efforts for the community. For the past year SAA Executive Director Tim Rogers has been providing updates relating to SkyWest's potential changes to air service for Salina. These updates have changed over time relating to the U.S. DOT EAS Program that provides financial assistance to SkyWest Airlines for air service to both Denver and Chicago operating as United Express. Over the past few months flight service to Houston has resurfaced as a possible option, providing a third hub for area residents to access via United Express. This option had been discussed prior to COVID 19, but further discussions stopped at that time. Access to Houston would provide connections to the southern United States, Mexico, South America, and the Caribbean. Numerous Salina businesses have customers, clients, and suppliers in the Houston area with many of them working in the oil and gas industry. The Houston connection has been a top priority based on surveys of area residents and businesses and the high numbers of area residents currently flying to Houston via other routes. As this discussion advanced locally the possible use of Salina Regional Airport as an overnight maintenance base for SkyWest was considered. This would allow SkyWest's aircraft to receive FAA required overnight maintenance and safety checks. Aircraft would flow through Salina Regional Airport on scheduled passenger flights to/from United's Denver, Chicago and Houston hubs. Mr. Rogers provided additional information concerning the needs for maintenance checks every three days as required by the FAA regulations. These checks would be provided overnight, requiring early morning departures and late evening arrivals of the multiple flights. Service on the aircraft would be completed during the overnight hours by 1 Vision Aviation employees per a contract with SkyWest Airlines/SkyWest Charter. Just within the past few weeks the discussion shifted to the need for an incentive to finalize the SkyWest Airline/SkyWest Charter decision. Mr. Rogers presented the need for $900,000 for the airline to start a new Salina Regional Airport maintenance base. The cash donation would cover the airline's costs associated with the startup of the Salina maintenance base and would come from the City ($400,000), County ($400,000) and Airport Authority ($100,000). Based on past history, maintenance hubs cost approximately $15 million. A hangar that would meet the needs of this size project would cost $25 million today. FUTURE GROWTH / JOB ESTIMATES / WAGE ESTIMATES: The job numbers for this project to start will be six employees for 1 Vision Aviation, or two per aircraft each evening they are checked. As the number of planes increase, more staff will have to be available CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 2/6/2022 4:00 P.M. AGENDA SECTION ORIGINATING ORGANIZATION: FISCAL APPROVAL: NO: Salina Community Economic BY: ITEM Development Organization FINAL APPROVAL: NO: Page 2 BY: Mitch Robinson, Exec Dir. BY: for the maintenance activities. No timetable for growth has been established at this time. Each maintenance hub has expenses related to the startup that can be broken down into four areas: 1. Administrative costs related to FAA paperwork as well as airline requirements. 2. Training of both airline staff and contractor staff to know both company and FAA requirements and guidelines for repairs. 3. Parts that are needed to keep aircraft flying based on the inspections performed by the maintenance crew. 4. Equipment which can range from basic luggage related equipment, and items needed for maintenance of the aircraft. SCEDO ACTION: Daran Neuschafer made a motion: I move that the Salina Community Economic Development Organization board of directors recommend to the Salina City Commission that the City provide a cash donation $400,000 for the proposed $900,000 agreement with SkyWest Airlines/SkyWest Charter contingent upon the City's cash donation would be matched by $400,000 from Saline County and $100,000 from the Salina Airport Authority. The motion was seconded by Max Wellbrock-Talley. The motion carried 8 — 0. FISCAL NOTE / WSU IMPACT STUDY: The City of Salina allocates 3.9% of the special sales tax proceeds to economic development and maintains an economic development fund balance. There are currently on-going annual commitments of $275,000 to the SCEDO, $60,000 to Salina Downtown Inc and additional $60,000 to the SDI fagade grant program which totals $395,000 of annual expenses in comparison to $423,000 or proceeds realized in 2022 for a net fund balance increase of $28,000 in 2022. In 2022, the City Commission authorized a fund transfer of $750,000 to replenish the fund balance after providing cash incentives to SFC Global. Based upon the original balance, the fund transfer, and the net proceeds from 2022, the current economic development fund balance is approximately $898,000. As noted above, the current request is $400,000 of funding from the City in coordination with an additional $400,000 from Saline County and $100,000 from the Salina Airport Authority. The Wichita State University's Center for Economic Development and Business Research (CEDBR) completed an economic impact analysis for this project. Attached is the CEDBR Impact Study. Comparing this project to previous Industrial Revenue Bond projects is not an apples -to -apples comparison. This is not a manufacturing project. At this point the contractor will only be providing 6 positions to service the three incoming aircraft. We have limited amount of information to do a full impact study. The results show a 0.97 Benefit -Cost Ratio (bottom of page 2) for the first 10 years. The Salina Community Economic Development Board of Directors did not have this impact study as part of their review process when the board met for the January 26th meeting. The Executive Director will be advising board members of this study and its results. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 2/6/2022 4:00 P.M. AGENDA SECTION ORIGINATING ORGANIZATION: FISCAL APPROVAL: NO: Salina Community Economic BY: ITEM Development Organization FINAL APPROVAL: NO: Page 3 BY: Mitch Robinson, Exec Dir, BY: COMMENTS RECEIVED FROM SALINA AIRPORT AUTHORITY EXECUTIVE DIRECTOR The following comments were received from Salina Airport Authority Executive Director, Tim Rogers: An air service development incentive is different from a manufacturing expansion project incentive. I believe that it is important note that the WSU analysis is geared to new and expanding manufacturing projects. A small detail is that the WSU report used a conservative, average wage of $25 per hour for the overnight maintenance crew. The wage rate range provided by 1 Vision for overnight maintenance checks and maintenance is $27 to $32 per hour. The long term impact of an airline, overnight maintenance base exceeds an analysis for a business expansion. There are ancillary benefits of better air service. Much like adding a new highway interchange, adding the capability to schedule new flights to/from Salina and multiple United Airlines hubs leads to business retention, business recruitment, worker/talent recruitment and quality of live. These benefits are difficult to measure by means of a benefit cost analysis. I can offer the example of a New Mexico community that is putting up $7M for a minimum revenue guarantee (MRG) for 2 daily flights to/from DEN. I firmly believe that Salina/Saline County in partnership with the Airport Authority is using available capabilities and resources to make a low risk (as compared to a MRG) decision on how to improve scheduled air service by means of an incentive to start up a SLN overnight maintenance base. Another important consideration is that the establishment of an overnight maintenance base and the resulting passenger growth moves Salina away from the need to rely on an EAS Program subsidy. Passenger growth is the key to a lower subsidy. An example is Garden City (GCK). GCK's 2021 passengers' enplanements was 28,525. The current GCK EAS subsidy is $1,220,724 per year. By comparison, SLN's 2021 passengers' enplanements was 19,407. The current SLN is $3,310,166 per year. More flights, more passengers offers Salina the opportunity for greater air service stability in the long term. COMMISSION ACTION OR RECOMMENDED ACTION: Staff has identified the following options for the City Commission's consideration: Approve a motion: (a) accepting and concurring with the SCEDO recommendation; (b) Authorizing the reallocation of $400,000 of Economic Development Funds to provide the City's portion of the contribution to the project as recommended and (c) Authorizing the City Manager to execute an agreement for the use such funds. 2.) Approve the motion with amendments as the City Commission deems appropriate. 3.) Postpone consideration of the recommendation to a specified date and time and provide staff direction regarding additional information or amendments the City Commission would like to request for their further consideration. AGENDA SECTION NO: ITEM NO: Page 4 Staff recommends Option #1. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 2/6/2022 4:00 P.M. 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