Rural Renaissance Project
DEPARTMENT OF FINANCE
AND ADMINISTRATION
Rodney Franz, Director
300 West Ash, P.O. Box 736
Salina, Kansas 67402-0736
City of
!:i
Salina
TELEPHONE (785) 309-5735
FAX (785) 309-5738
TOO (785) 309-5747
E-MAIL rodJranz@salina.org
Website: www.salina-ks.gov
Service Agreement
This agreement entered into on the 1st. day of January, 2006 is made by and between the City of Salina,
Kansas, whose address is 300 West Ash Street, Salina, Kansas, referred to as "City", AND North Central Regional
Planning Commission, whose address is 109 N. Mill Street, Beloit, Kansas, referred to as "Provider."
Section 1, Services. The company hereby employs the provider to perform the following services in accordance with the
terms and conditions set forth in this agreement:
Provide a "Rural Renaissance Project" for North Central KAnsas pursuant to the proposal presented to
and approved by theSalina City Commission on October 11, 2004. The specific proposal material is
attached hereto and made a part of this agreement.
Section 2, Term of Agreement. This agreement will begin on the 1st day of January, 2005 and will end on the
_31st_ day of December, 2007 . Either party may cancel this agreement upon thirty (30) days notice to the other
party in writing, by certified mail or personal delivery.
Section 3, Amount of Agreement: The amount of the agreement is: $60,000.00 to be distributed $20,000 each year
for three years.
Section 4, Payment to Provider. The provider will be paid pursuant to the following terms and conditions:
Payment will be issued annually upon written request from the providert
Section 5, Status of provider: The provider is a: Not for profit organization
Section 6, Performance Reporting. The provider shall file performance reports as noted:
Annual Report within 90 Days On or before May 30, 2006, and March 31, 2007, a report
shall be filed with the Salina City Manager's office outlining progress and achievements of the program. A
final report will be due March 31, 2008.
Section 7, Financial Reporting. The provider shall file financial reports as noted::
Unaudited Financial Report
report.
To be submited on the same schedule as the performance
Section 8, Nonperformance. In the event of provider non-performance or non-compliance with any section in this
agreement, this agreement may be cancelled with 30 days written notice, or in lieu thereof the City may elect to reduce
payments to provider.
Section 9, Compliance with applicable law. Provider shall comply all applicable Federal, State, and Local law and
regulation.
Section 10, City indemnified. Provider shall indemnify and save harmless the City, its officials, agents, servants, officers,
directors and employees from and against all claims, expenses, demands, judgments and causes of action for personal
injury, death, and/or damage to property where and to the extent to which such claims, expenses, demands, judgments
and causes of action arise from the Provider's negligent acts. Provider shall notify the City upon the receipt of any claim in
excess of $1 ,000 in connection with this contract. Provider shall file with City, prior to any payment being made, proof of
insurance as follows:
o No proof of insurance required
[8J Commercial General Liability
[8J Automobile Liability
[8J Professional Liability-Errors and Omissions
[8J Workers Compensation Insurance
(statutory) .
[8J City if Salina required as additional named
insured on policy
o Other (Please specify):
Comments:
All insurance is to provide a minimum of $500,000 single
limit coverage.
Section 11: Equal Opportunity/Affirmative Action. For agreements in which the value exceeds $20,000, provider shall
City of Salina Standard Contract for Service; Page 10f 2
comply with the Equal Opportunity/Affirmative Guidelines attached.
Section 12. Independent Contractor. Both the City and the provider agree that the provider will act as an independent
contractor in the performance of its duties under this contract. Accordingly, the provider shall be responsible for payment of
all taxes including Federal, State and local taxes arising out of the provider's activities in accordance with this contract,
including by way of illustration but not limitation, Federal and State income tax, Social Security tax, Unemployment
Insurance taxes, and any other taxes or business license fees as required.
Section 13. Attachments incorporated. The following attachments and supplemental documents are incorporated herein
and made an integral part of this agreement.:
[gj Equal Opportunity/Affirmative Action Requirements D Other. Please Specify
[gj Provider Proposal
[gj Certificates of Insurance
D W-9 Form
[gj Proof of Non-profit status
Section 14: Official contacts for the City and the provider are:
City:
Name:
Title:
Address:
City, State, Zip
Telephone:
E-mail
Lieu Ann Elsey
City Clerk
300 West Ash, P. O. Box 736
Salina, KS 67401
V. 785-309-5735
Fax: 785-309-5738
LieuAnn. Elsey@salina.org
Provider:
Name: John R. Cyr
Title Executive Director
Address: -1e9-f+MiH-Bff"eefu
City, State, Zip Beloit, KS 67420
Telephone:
E-mail:
P.O. Box 565
Section 15. Executed on the ~ day of January, 2006
For the City of Salina:
....,/1
'I ...
, ,;.
l.~ ~j~kI_
4ason Gage, City anager
i/
cutive Director
City of Salina Standard Contract for Service; Page 20f 2
North Central
Regional Planning Commission
109 N. Mill St., P.O. Box 565 · Beloit, Kansas 67420 · (785) 738-2218
April 28, 2006
Lieu Ann Elsey, City Clerk
City of Salina
300 West Ash, P.O. Box 736
Salina, KS 67402-0736
Re: Letter Dated March 24, 2006 from Rod Franz, Director of Finance
Rural Renaissance Project Agreement
Dear Ms. Elsey:
Enclosed is a signed copy of the proposed agreement. I didn't find anything to be of concern
although I did have the few questions Rod and I discussed via telephone two weeks ago.
As for Section 10 and the insurance requirements, by now the city should have received copies
of all insurance binders identified in the agreement with the City now being additionally named.
If not please let me know and we will call our broker again. Just for your information, the agent
we use is Sunflower Insurance Group there in Salina.
As for the stipulations listed in Section 13, I'm assuming the following will address the points
raised. If not, please let me know.
. Enclosed is a copy of that section of the NCRPC Personnel Policies which addresses the
Equal Opportunity / Affirmative Action agenda of the organization.
. Provider proposal is already on file with the City of Salina.
. Certificate( s) of insurance have been submitted by Sunflower Insurance Group
additionally naming the City of Salina.
. The NCRPC is not organized under state corporate law, but it is organized under K.S.A.
12-744 et seq. and is further defined by K.S.A. 12-2901 et seq., which authorize any
group of contiguous counties to establish a regional planning organization and then
assign it whatever duties and responsibilities the membership so choose. Thus, the North
Central Regional Planning Commission is a function of local government by definition
and carries the status of a "non-profit" organization for tax purposes.
Again, on behalf of the North Central Regional Planning Commission, I would like to thank the
city for the positive consideration it has given our proposal.
John . Cyr
Execu . ve Director
Enclosure
BASIC PRINCIPLES
OF THE
NORTH CENTRAL REGIONAL PLANNING COMMISSION
1. Equal Opportunity / Affirmative Action Policy: The North Central Regional Planning
Commission is an equal opportunity/affirmative action organization. It is committed to a
policy of nondiscrimination on the bases of race, sex, age, religion, color, national origin,
ancestry, disability, marital status, arrest and court record, sexual orientation, and status as a
covered veteran.
The long term aim of the North Central Regional Planning Commission is to have the
composition of its staff and those engaged by its programs to reflect the composition of the
region's population.
This policy covers admission and access to, and participation, treatment and employment in
the organization's programs, activities, and services.
2. Merit System: The employment of personnel and all actions affecting employees shall be
based on performance and equality.
3. Political Activity: In accordance with the provisions or purposes of the Hatch Act (Public
Law 252, 76th Congress, as amended) employees shall not:
a. Use their office or position to influence elections or nominations, or for other political
purposes;
b. Solicit or receive political contributions;
c. Require or advise other employees to make political contributions;
d. Be candidate for election to public office or take an active part in political campaigns
(except in non-partisan elections), or be active in political management; or;
e. Use political influence in connection with their employment status.
Employees shall be free to vote as they choose and to express their opinions on all political
subjects and candidates.
5
ACORQM CERTIFICATE OF LIABILITY INSURANCE I DATE (MM/DDIYYYY)
04/12/2006
PRODUCER (800)563-1871 FAX (785)825-5098 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
Sunflower Insurance Group, Inc. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
217 S. Santa Fe ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
P.O. Box 1213
Salina, KS 67402-1213 INSURERS AFFORDING COVERAGE NAIC#
INSURED North Central Regional Planning Commission INSURER A: Hudson Insurance
PO Box 565 INSURER B: Nationwide Mutual Insurance Co
Beloit, KS 67420 INSURER c: Twin City Fire Insurance Co. 29459
INSURER D:
INSURER E:
COVERAGES
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR
MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
II~fl: ~~~l TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE P~~!fJ EXPIRATION LIMITS
GENERAL LIABILITY FEC6102265 OS/21/2005 OS/21/2006 EACH OCCURRENCE $ 1,000,00C
X COMMERCIAL GENERAL LIABILITY DAMAGE TO RENTED $ 50,00C
I CLAIMS MADE [K] OCCUR MED EXP (Anyone person) $ 5,00(J
A PERSONAL & ADV INJURY $ 1,000,00(J
-
GENERAL AGGREGATE $ 2,000,00C
- 2,000,00C
GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $
I nPRO- n
POLICY JECT LOC
AUTOMOBILE LIABILITY ACP7280122072 11/03/2005 11/03/2006 COMBINED SINGLE LIMIT
- (Ea accident) $ 500,000
X ANY AUTO
-
ALL OWNED AUTOS BODILY INJURY
>-- $
SCHEDULED AUTOS (Per person)
B ~
HIRED AUTOS BODILY INJURY
>-- $
X NON-OWNED AUTOS (Per accident)
f--
PROPERTY DAMAGE $
(Per accident)
GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $
R ANY AUTO OTHER THAN EA ACC $
AUTO ONLY: AGG $
EXCESS/UMBRELLA LIABILITY EACH OCCURRENCE $
tJ OCCUR D CLAIMS MADE AGGREGATE $
$
R DEDUCTIBLE $
RETENTION $ $
WORKERS COMPENSATION AND 37WECBD1137 11/03/2005 11/03/2006 I TVXgJT~I,~;, I IOJ~-
EMPLOYERS' LIABILITY
C ANY PROPRIETOR/PARTNER/EXECUTIVE E.L EACH ACCIDENT $
--
OFFICERlMEMBER EXCLUDED? E.L DISEASE - EA EMPLOYEE $
If yes, describe under
SPECIAL PROVISIONS beiow E.L. DISEASE - POLICY LIMIT $
p~TH1!: . Liability FEC6102265 OS/21/2005 OS/21/2006 $1,000,000 Occurrence
ro esslonal
A !claims-Made $2,000,000 Aggregate
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS
~ity of Salina is named as additional insured in respects to General L iabil ity.
CER
City of Salina
Rod Franz
300 W. Ash
PO Box 736
Salina, KS 67402-0736
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL
~ DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,
BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY
OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES.
AUTHORIZED RE!RESENTAT~
ACORD 25 (2001/08) FAX: (785)309-5738
@ACORD CORPORATION 1988
IMPORTANT
If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement
on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may
require an endorsement. A statement on this certificate does not confer rights to the certificate
holder in lieu of such endorsement(s).
DISCLAIMER
The Certificate of Insurance on the reverse side of this form does not constitute a contract between
the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it
affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon.
ACORD 25 (2001/08)
~~~IIIISA."~_
Submitted to:
Salina City Commission
300 W. Ash Street
Salina, KS 67401
Submitted by:
North Central Regional Planning Commission
109 N. Mill Street
Beloit, KS 67420
September 27,2004
NCK RURAL RENAISSANCE PROJECT
Introduction
The North Central Regional Planning Commission (NCRPC) seeks to build upon the economic
development activities already underway in North Central Kansas by advancing a concept it
introduced in 2004. The concept, entitled "NCK Rural Renaissance", promotes greater exchange
of ideas and resourCes between neighboring cities and counties. It defmes "commuiiity" not in
terms of individual corporate place, but in terms of city clusters whose residents determine the
boundaries of community through their daily pursuit of jobs, goods and services, and education
for their children. The ultimate goal is to better amass and refme resources that can produce a
platform for regional economic growth and development not otherwise possible given existing
political and administrative boundaries in our rural area
Our first objective is to identify and integrate those resources already resident in North Central
Kansas. Towards that end, we began employing use of the Home TownCompetitiveness (HTC)
model to better organize and develop the economic capital present within our membership.
HTC, created by the Center for Rural Entrepreneurship in Lincoln, Nebraska, supports this
activity by providing tools that help foster Leadership Development, Wealth Retention, Youth
Attraction and Entrepreneurship Development, common elements of interest and importance to
all members. Furthermore, the model is readily customized to interface with any existing local
development program, for HTC explains how local effort can be augmented to achieve greater
success.
Proposal to the City of Salina
The NCRPC requests the City of Salina consider funding, in part, the NCK Rural Renaissance
effort at the rate of $20,000 per year for each of the next three (3) years. Such funding will be
used to underwrite deployment of the HTCmodel in all eleven (11) of our counties during that
period. The NCRPC will match that amount $1.00 for $1.00, either in cash or in kind. The
intent of this request is not to place the NCRPC in competition with any other organization
operating inside Salina. Rather, we ask the city to extend its view beyond the confines of its
corporate boundaries and to consider expanding the role Salina plays in the socioeconomic fabric
of North Central Kansas.
Justification
Through its work the NCRPC has come to know North Central Kansas as a single community
whose economic future is inextricably tied to how well each individual place performs when
contributing to the larger whole. That suggests we must pay attention to even the smallest of
places, helping them acquire the tools necessary to enhance or expand their capabilities.
But what does that mean to Salina?
As defined by the NCRPC, North Central Kansas is home to approximately 130,000 residents,
roughly 50,000 of whom live in Salina. We have traced the comings and goings of these
residents for the past 20 years and it is readily obvio~ Salina is the regional center, as the
attached map, "NCK Trading Clusters", illustrates.
Like many other trade center communities, Salina, given its size, plays a major socioeconomic
role within the region of which it is a part. Equally true is the fact a strong inter-relationship
exists between Salina and all other North Central Kansas locales. Key examples of that inter-
relationship are:
o Salina provides employment opportunities for North Central Kansas. The region provides
workers that fill those employment opportunities, thereby meeting Salina's need for
workers. ".
o Salina provides a wide range of retail products and services for the region's population.
The region provides patrons who consume Salina's goods and services.
o Salina provides a larger community for those residents looking to move to a more
urbanized environment. The region supplies new residents that fuel Salina's population
growth.
Over the past 50 years, Salina has done better economically than other locales within North
Central Kansas, but in the next 50 years Salina's ability to sustain its growth and prosperity will
depend, in part, on how well the region does. Subsequently, the future of Salina and rural NCK
has greater promise if both are prosperous and growing.
Salina is not alone in that sense, for an increasing number of regional trade center communities
from the arid west Texas plains to the prairie providences of Canada are realizing this. They too
see their future growth potentially eroded by declining regional fortunes. The search is on for a
means of halting that trend.
The NCK Rural Renaissance effort seeks to address this issue partly by building upon those
things individual locations already possess. The Home Town Competitiveness (HTC) model
provides us with the mechanism to engage even the smallest of citi"es and to show them how they
can effect positive local change that not only meets local needs, but also contributes to regional
growth and stability.
HTC does this by emphasizing research underwritten by the Kauffman Foundation, the Aspen
Institute, and the Kellogg Foundation which embraces four core strategies:
o Mobilize Local Leaders & Build Community Civic Capacity.
o Attract Young People to Strengthen Community Demographics.
o Capture Wealth Transfer to Raise Development Dollars.
o Energize Local Entrepreneurs to Build a Stronger Economy.
A simple overview of each subject area is as follows.
Leadership Development
For small towns to complete in the 2151 century they must tap into everyone's potential
knowledge, talent and aspirations. The Heartland Center for Leadership Development rejects the
outdated notion of relying on ''the usual suspects" to get things done. Rural communities must
be intentional about recruiting and nurturing an increasing number of women, minorities and
young people into decision-making roles. They need continuing leadership training programs,
because today's leadership must constantly reinvent itself to reflect the challenges of a changing
global environment.
Youth Attraction
It is not just the call of the city that pushes them away; it is also the lack of opportunity and
encouragement to "come back" that drives young people from their hometowns. HTC has
developed a means small towns can use in their efforts to halt this trend. Using existing data on
population change, the easily understood formula provides small towns with realistic goals for
youth attraction. In come cases, the attraction of one additional high school student per year,
who returns with a young family, can stabilize the population. HTC teaches people how to target
youths for attraction, create career opportunities through business transfer and entrepreneurial
support, and nurture a sense of ownership and vested interest in the community as future leaders.
Note the emphasis is on "attraction", not "retention". We need our young people to learn skills
and gain knowledge they cannot access here, but we'also need them to know it is "O.K." to
return to their home turf and still be seen as a success.
Wealth Retention
The urbanization of capital, both [mancial and human, is plaguing rural places. It has been
estimated billions of dollars will leave rural Kansas within the next 10 years as one generation
passes its wealth on to another now resident in urban America. Techniques do exist that enable
local economic development programs to measure the value of that impending loss. Others exist
that further show the directors of those programs what steps can be taken to retain a portion of
that value for purposes of bettering the local economy. However, both the power and the will to
use these assets will no longer be tied to the community unless planned gifts are cultivated now.
HTC sets a reasonable target of converting at least 5% of the local wealth transfer into charitable
assets endowed in community foundations to fund future economic development efforts.
Entrepreneurial Development
Since 1985 only 4.0% of businesses nationally have produced 60.0% of the primary sector jobs
and 80.0% of those jobs had their origins in the secondary sector. And since the analog to that is
equally true, it is vitally important for rural economic development officials with limited
resources to learn how they can identify potential "high performance" entrepreneurs within their
community. Such businesses have the capacity to make the transition from the secondary to
primary sector, thereby creating economic opportunity. The HTC program will help local
officials to better identify these businesses so greater attention can be given to their needs.
Proposed Budget
Funding at the $20,000 per year level over three years would be invested as follows:
a Two-thirds of the funds would be used to provide direct technical assistance to 4-5 pilot
demonstration communities.
a One-third of the funds would be used to provide direct technical assistance to other
communities in one of the four HTC subject areas.
The program will be matched $1.00 to $1.00 each year by funding sources within the region or
by clearly documented in-kind effort undertaken in support of program delivery.
Expected Outcomes
The HTC element of the Renaissance project will mobilize a rural base from which the following
can be expected.
1. Residents interested in taking ownership and responsibility for furthering local and
regional growth will be identified and provided those tools needed to achieve given goals.
That's not to say all things will be successful, but it does mean people will be activated
and motivated with a clear set of goals in hand.
2. Individual places will be given a clear understanding of how many young people must be
attracted back to their jurisdiction to create a self-sustaining population number.
Likewise, they will be presented with some ideas on how to create pathways that enable
young people to return if they so choose.
3. Individual places will be shown how to measure resident wealth in their community and
then how to tap into that wealth such that a portion of it remains with the community to
support its growth and development. Ifbut a mere fraction of the wealth about to be
transferred can be retained locally, that may result in the community having $1.0 Million
or more to further local development.
4. Finally, people will begin to understand why "entrepreneurship" is so important to rural
Kansas, especially North Central Kansas. Our communities were founded by the
"industrial development" model, but times have changes and so have the engines of
economic growth.
Successful use ofthe'HTC model will set the tone for many things to come, since it will not only
be able to accomplish the above, it will also begin the process of building a greater sense of
community and place. Our office will be better informed as to what resources do exist in the
region and which of those resources can be made available to whomever needs the support. The
greatest outcome of this effort will be a diminishment of competition within the region and the
creation of a competitive region.
About us
The North Central Regional Planning Commission (NCRPC) is a 32-year old organization
predicated on K.S.A. 12-744 et seq. During its history, the NCRPC has evolved from a purely
planning and research operation to that of a planning and development organization, playing a
major role in accessing over $200.0 Million for infrastructure, $60.0 Million for business
finance, and $18.0 Million to improve the energy efficiency of the region's housing., Today, the
NCRPC serves eleven (11) counties and seventy-four (74) cities across North Central Kansas.
Smith
.
NCK TRADING CLUSTERS
Patterns of Regional Activity .
.
Jewell
. Republic
,,/' .
. ~ ---.
.
.
Cloud
Osborne
Ie
Lincoln
Dickinson
line
.
Ellsworth
McPherson
.
Layers
D COUNTY:Counties
o COUNTY:States
o Regional Center
* County Seat
. Small City
Trade Route
JI Major Trade Route
Miles
- I
o 10 20
October 7, 2004
ALLOCATION OPTION A
ECONOMIC DEVELOPMENT FUND
(12.50/0 of total generated by Y4~)
. .
Economic ChamberlSAA 5.0.1. NCRPC Proposed
Development Available for Primary Downtown Regional Undesignatedl YearEnd
Budget Year Sales Tax Allocation Business Initiative Initiative Contingency Balance 1
Revenue Initiative
2004 $100,000 $ 0 $ 0 $ 0 $ 0 $ 0 $100,000
(partial year)
2005 $287,000 $337,000 $275,000 $ 10,000 $ 20,000 $ 0 $ 72,000
2006 $293,000 $315,000 $275,000 $ 10,000 $ 20,000 $ 0 $ 60,000
2007 $298,000 $309,000 $275,000 $10,000 $ 20,000 $ 4,000 $50,000
2008 $304,000 $304,000 $275,000 ------- ---- $29,000 $50,000
2009 $311,000 $311,000 $275,000 ------- ---- $36,000 $50,000
,
2010 $244,000 $294,000 $275,000 $19,000 $ 0
(partial year) ---.-- ........
Column "A" Column "B"
Column "C"
Column "0" Column "E" Column "F" Column "G"
1. Assumes "target" fund balance minimum of $50,000 for cash flow and reserve purposes until 2010, when it becomes available for allocation.
October 7, 2004
ALLOCATION OPTION 8
ECONOMIC DEVELOPMENT FUND
(12.50/0 of total generated by %~)
Economic Chamber/SAA 5.0.1. NCRPC Proposed
Development Available for Primary Downtown Regional Undesignated/ Year End
Budget Year Sales Tax Allocation Business Initiative Initiative Contingency Balance 1
Revenue Initiative
2004 $100,000 $ 0 $ 0 $ 0 $ 0 $ 0 $100,000
(partial year)
2005 $287,000 $337,000 $ $ $ $ $
2006 $293,000 $315,000 $ $ $ $ $
2007 $298,000 $309,000 $ $ $ $ $
2008 $304,000 $304,000 $ $ $ $ $
2009 $311,000 $311,000 $ $ $ $ $
;
2010 $244,000 $294,000 $ $ $ $ $
(partial year)
Column "A" Column "B"
Column "C"
Column "0" Column "E" Column "F" Column "G"
1. Assumes "target" fund balance minimum of $50, 000 for cash flow and reserve purposes until 2010, when it becomes available for allocation.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
10/11/04
TIME
4:00 P.M.
AGENDA SECTION
NO:
8
ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
CITY MANAGER
ITEM
NO.
9
BY: Dennis M. Kissinger
BY:
ITEM:
Commission discussion and possible decision on allocation of restricted sales tax funds for one or
more economic development initiatives.
BACKGROUND:
The special sales tax approved by Salina voters in 2004 restricted 12.5% of the revenues for
"establishment of an economic development fund managed by the City of Salina." The City's
Finance Director has established this fund within the City's accounting system. The first revenues
from the tax were received in late September. The City Commission has recently received three
proposals for allocation of dollars from the Economic Development Fund, beginning in January 2005
for certain specific multi-year economic development initiatives.
Initiative #1: The Salina Area Chamber of Commerce and the Salina Airport Authority have proposed
an initiative to provide incentives to new and existing manufacturing and primary businesses.
Funding Request: $275,000 per year for six years (2005-2010).
Initiative #2: Salina Downtown, Inc. has proposed an allocation of special sales tax funds to help
underwrite a local exterior fac;ade improvement matching grant program, replacing a former Main
Street program previously available here.
Funding Request: $10,000 per year for three years (2005-2007).
ffiitiatl;m"'3~fi~~1,~ft'!t~''ht{alReglonal.Pla'n'r1ing.Commission. has.proposed.,funding"be'aI.lQcateQ
for a North Central Kansas (NCK) Rural Renaissance effort, involving a Home Town
Competitiveness (HTC) model in eleven counties in the region.
Funding Request: $20.000 per year for three years (2005-2007).
STAFF NOTES:
City staff has determined that all three of the suggested initiatives could be accommodated within
the projected sales tax funding stream, if the City Commission believes funding at the requested
level is in the public interest. Two "Allocation Option" worksheets are provided for Commission use.
The sheet for Allocation Option "A" shows how all three initiatives could be fully funded, while
providing for appropriate year-end fund balances (Column "G"). If this allocation plan were
approved, most of the available funds would be obligated through 2007. Beginning in 2008, there
would be contingency funds available for new initiatives or special projects (Column "F").
A second Allocation Option worksheet is also provided for Commission use. If you wish to consider
a different allocation plan than in Allocation Option "A", the blank spaces could be completed with
different amounts (higher or lower) than requested, or for different years. Any remaining unallocated
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
10/11/04
TIME
4:00 P.M.
AGENDA SECTION
NO:
8
ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
CITY MANAGER
ITEM
NO.
9
BY: Dennis M. Kissinger
BY:
Page 2
funds would either be put in Column "F" and budgeted annually for undesignated future projects or
contingencies, or be shown in Column "G" as higher year-end balances, with amounts over $50,000
available for future budgeting.
At its meeting on September 29, 2004, the Chamber of Commerce Board voted to support all three
economic development initiatives.
Details of programs, monitoring, etc. would be subject to City Commission approval and would be
determined prior to year-end 2004, based on Commission decisions on allocation of funds by year.
The funding allocation plan is the only item before the Commission at this time.
OPTIONS:
A. Approve the funding allocation plan for three economic development initiatives as requested.
This funding plan is shown as Allocation Option "A" in an enclosed worksheet.
B. Approve an alternative allocation of funds by using the Allocation Option "B" worksheet. Dollar
amounts could be higher or lower for individual program initiatives or years. More funds could
be shown as undesignated or contingency funds by year.
C. Defer consideration of an allocation plan and provide direction to staff as to what further
information the Commission would like prior to making a decision.
Attachments
Commission
Action #
Commissioner Divine expressed concerns of the funding level, the board arrangement and
matching investment of the Chamber's request.
Commissioner Marrs expressed his support of all three initiatives. .-
A discussion followed between Tom Bell, Salina Chamber of Commerce board president,
City Manager Dennis Kissinger, Commissioner Divine and Commissioner Jilka regarding the
requested amount, funding participation, amount already contributed to the Chamber by the City, and
how the funds are spent.
Commissioner Divine commented that she supported all three initiatives, but not
comfortable with the funding level.
Commissioner Jilka expressed the same concerns of Commissioner Divine.
Mayor Shadwick commented on his support of all three initiatives.
Commissioner Webb expressed his support of the three initiatives and funding level.
04-6611 Moved by Commissioner Marrs, seconded by Commissioner Webb, to approve the funding
allocation plan for three economic development initiatives as requested and shown as Allocation
Option "A". Aye: (5). Nay: (0). Motion carried.
(8.10)
Award of contract for the Ohio/Schilling Waterline Improvements, Project No. 04-1450.
Brad Johnson, City Engineer, explained the project, bids received, and project funding.
04-6612 Moved by Commissioner Webb, seconded by Commissioner Jilka, to award the contract
for the Ohio/Schilling Waterline Improvements, Project No. 04-1450 to Stevens Contractors, L.L.c.
in the amount of$265,982.50. Aye: (5). Nay: (0). Motion carried.
(8.11) Consider recommendation and public comment regarding proposed use of 2004 Local Law
Enforcement Block Grant Program funds.
Police Chief James Hill explained the grant and the total award of $8,021. Chief Hill
continued to explain the LLEBG Advisory Board's recommendation to purchase a forensic mapping
system. He then responded to Commissioner Divine's question pertaining to the cost of the system.
04-6613 Moved by Commissioner Webb, seconded by Commissioner Marrs, to authorize staff to
draw down federal funds and accepting the grant award and adopt the advisory board
recommendation, designating the procurement of equipment of the LLEBG purpose area, and approve
the use of grant funds to purchase a forensic mapping system. Aye: (5). Nay: (0). Motion carried.
(8.12)
Authorize an engineering agreement for design services to relocate city utilities for the
Page 6
Commission
Action #
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consideration of the agreement until October 25, 2004.
04-6608 Moved by Commissioner Webb, seconded by Commissioner Divine, to postpone the
consideration of Resolution No. 04-6122 until October 25, 2004.. Aye: (5). Nay: (0). Motion
carried.
(8.7) Authorize purchase of audio/video interactive conferencing system.
Fire Chief Darrell Eastin explained the purchase. Chief Eastin also noted the training
enhancements the equipment would provide to the city. He also responded to Commissioner Divine's
question on whether other departments would be able to utilize the equipment.
04-6609 Moved by Commissioner Webb, seconded by Commissioner Jilka, to authorize the
purchase of an audio/video interactive conferencing system from Web Creations and Consultants in
the amount of$61,703. Aye: (5). Nay: (0). Motion carried.
(8.8) Consideration of adding soccer complex and fire station expansion projects to the 2005
Capital Improvement Plan.
Dennis Kissinger, City Manager, summarized the projects and financing.
A discussion followed between Mr. Kissinger, Deputy City Manager Michael Morgan and
the Commission regarding soccer field amenities, allocation of funding, amendment to the c.I.P. plan,
and agreement with Saline County on land use for the soccer complex.
04-6610 Moved by Commissioner Divine, seconded by Commissioner Jilka, to add the soccer
complex and fire station expansion projects to the 2005 Capital Improvement Plan. Aye: (5). Nay:
(0). Motion carried.
Mayor Shadwick thanked the Soccer Club and Mr. Morgan for their work on the soccer
complex project.
(8.9)
funds.
City Commission discussion and possible decision on allocation of restricted sales tax
Dennis Kissinger, City Manager, explained the fund and the three proposals received for
funding. Mr. Kissinger continued to explain the proposals as follows:
Initiative #1: The Salina Chamber of Commerce and the Salina Airport Authority
proposals of an initiative to provide incentives to new and existing manufacturing and
primary businesses with a funding request of $275,000 per year for six years (2005-2010).
Initiative #2: Salina Downtown, Inc. proposed an allocation of special sales tax funds to
help underwrite a local exterior fayade improvement matching grant program, replacing
a former Main Street program with a funding request of $1 0,000 per year for three years
(2005-2007).
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Page 5
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This is a request for the first $20,000 of the $60,000 committed by the City of Salina to
the North Central Regional Planning Commission over the next three years. My
Executive Board has authorized expenditure of an additional $20,000 as matching funds
for the current period. Collectively, the funds will be used to enhance the economic
development process in North Central Kansas through use and implementation of the
Home Town Competitiveness (HTC) model as was explained in our proposal to the
Salina Commission.
North
Regior.
109 N. Mill St.,
June 7, 2005
Dennis Kissinger, City ManagE
City - County Building
300 W. Ash
Salina, Kansas 67401
Re:
City Sales Tax Funds
Dear Dennis:
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Our work program for this year includes the formation of four task forces, one devoted to
each of the model's four pillars: Leadership, Youth Attraction, Wealth Retention and
Entrepreneurship Development. Each task force will be charged with compiling
information on the strengths and weaknesses of the region as they relate to the objectives
of each subject area.
For example, the Leadership Task Force will focus on board development needs of
various organizations. While there are a number of leadership programs operating in the
region, all are focused on individual leadership development, none concern themselves
with organizational development. With the rise ofNGO's and their importance to
economic development, it is our belief more consideration should be given to their needs.
As for the Entrepreneurship Development Task Force, it will concentrate its attention on
learning more about the region's resources and stakeholders, sources of business
financing, business support needs, and separate those needs by entrepreneur type (i.e.,
potential entrepreneurs, as in youth, aspiring and startups; existing business owners,
classed by survival, transitional, lifestyle and re-starts; and true entrepreneurs, those
growth-oriented or serial). Most attention will be placed on identifying those businesses
in the "transitional" phase, for these are so very important to small towns, as well as those
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that are "growth-oriented" and "serial", since they pose the greatest return to the region
on time and resources invested.
In the Youth category, the task force will work with the schools to learn of any interest in
expanding entrepreneurship curricula and what resources they need to do so. Those
involved will also explore the possibility of establishing a Fall Business Fair to better
expose what opportunities exist in the region for qualified youth.
Those involved with Wealth Retention will devote themselves to learning more about
fund raising and creating endowment funding programs in support of economic
development. One aspect of this not adequately understood at the time of our original
approach to the Salina Commission was how the Kansas Rural Business Tax Credit
program promoted by the Kansas Department of Commerce to be made to playa role in
this endeavor. The region now has $1.0 Million in Tax Credits it can use to begin raising
money in support of implementing the information gleaned from all efforts made this
year.
I hope the above is sufficient enough in detail to warrant release of the funds requested.
If more information is needed, please do not hesitate to call.
Thank you again for your personal interest in and support of this endeavor.
North Central
Regional Planning Commission
109 N. Mill St., PO. Box 565 · Beloit, Kansas 67420 . (785) 738-2218
May 30, 2006
Jason Gage, City Manager
City of Salina
300 W. Ash
Salina, KS 67401
Re: NCK Rural Renaissance Project
Annual Report - 2006
Dear Jason:
Enclosed please find the report described in our recently signed agreement. I have based its
contents on conversation with Rod Franz, so hopefully it meets with your approval. While I
have gone into some detail to relay what has been done, I have not delved into the underlying
nitty-gritty of the work performed. Ifmore is needed, please let me know.
As for the unaudited financial report noted in Section 7 of the agreement, I have provided a
simple accounting of the sources and uses of funds. Again, if greater detail than this is required,
please let me know.
Finally, if either you or any member of the City Commission wishes me to come to Salina to
discuss details of this report or the work it describes, I would welcome the opportunity.
,/
Enclosure
, .
Subject:
NCK Rural Renaissance Project
Annual Report - 2006
To:
Jason Gage, City Manager
City of Salina, Kansas
This constitutes the first annual report describing how the $20,000 investment made by the City
of Salina was used in activities undertaken by the North Central Regional Planning Commission
(NCRPC) to introduce and implement facets of the Home Town Competitiveness (HTC) model
on a regional scale.
Background
Representatives of the NCRPC were first introduced to Don Macke, Co-Director of the Center
for Rural Entrepreneurship (CRE), and the HTC model in May 2003 while attending a
conference convened by the Center for the Study of Rural America housed in the Federal
Reserve Bank of Kansas City. They were impressed with the model's holistic approach and the
relative ease by which any of its components could be integrated into existing programs. It was
subsequently decided to develop a working relationship with CRE and to bring the HTC model
to North Central Kansas.
Since that introduction, there have been six (6) day-long workshops sponsored by the NCRPC,
four (4) dedicated to explaining each of four (4) HTC "pillars", these being Leadership
Development, Youth Attraction, Wealth Retention, and Entrepreneurship Development, with two
(2) other sessions providing initial overview and that of wrap-up. An average of 47 people
attended each session with all eleven (11) member NCRPC counties being represented at some
point.
Activities Pursuant to Proiect
The NCRPC defines economic development first and foremost as a process whose outcome
produces wealth within a defined geography. The process fundamentally requires continuous
growth in leadership and variety in business service offerings. Growth in leadership is needed to
set forth a believable vision of the future; to establish achievable goals that bring focus to
everyone's efforts; and to direct available energy and resources to ensure the goals can be
attained. Variety in business services is needed to address ever-evolving business needs, both
vertically and horizontally. Once successful the process becomes a conduit by which outside
ideas and capital flow into the local economy, thereby leading to increased business growth, job
opportunities, influx of young talent, and higher per capita incomes for all residents within the
defined geography. The concept behind HTC marries well with that definition.
Activities directly related to the HTC model that were undertaken from October 2004, the point
at which the City of Salina first became involved, until March 2006, the end of the NCRPC fiscal
year, are as follows.
JR Cyr, Executive Director
May 2006
\ ,
Wealth Retention
HTC Instruction: Jeff Yost, President of the Nebraska Community Foundation and one
principal associated with the creation ofHTC, followed up his initial day-long workshop on
"wealth retention" and how it relates to overall community development by providing two (2)
additional day-long workshops on February 9,2005 in Lincoln and February 10,2005 in
Minneapolis devoted to how non-profit foundations operate and how they can raise and invest
funds in projects deemed worthy of such consideration. He strongly encouraged those involved
to identify and invest in projects that form the basis of future growth rather than become
involved in those that promise limited impact. Economic development is one area Yost believes
local foundations often overlook even while nationals like Ford, Kauffmann and Kellogg become
even more involved in that subject area. The average attendance at these workshops was 16
persons with seven (7) different local-level foundations being represented.
Yost further described the amount of wealth that is about to transfer from one generation to
another during the present decade, suggesting local foundations should develop a strategy that
targets retaining 5.0% of that wealth in their communities. Any such success in North Central
Kansas would result in an average of $34.0 Million per county being made available to NGOs
operating within their jurisdictions.
Outgrowths of Model: Discussions have encouraged foundations in four (4) counties to
rethink existing strategies or form new ones using the Nebraska model and its practices as a basis
for rethinking their structure and purpose.
In a related matter, as recipient of$1.0 Million in state tax credits, the NCRPC and its 501(c)3,
the North Central Kansas Community Network (NCKCN), has been able to raise $180,000 to
further economic development in the nineteen (19) county area defined by the Kansas
Department of Commerce as North Central Kansas. It has further established dialog with
potential donors who are awaiting state legislative action concerning the value of the credits. We
firmly believe the entire tax credit allotment assigned to North Central Kansas will be sold in
2006.
Leadership Development
HTC Instruction: On March 16,2005 the NCRPC played host to Milan Wall, Co-Director of
the Heartland Center for Leadership Development at Lincoln, Nebraska, who delivered an eight
(8) hour program centered on the importance leadership plays in the HTC model. Most of the
day's focus was on the role of the individual and the responsibilities they carry in pursuing
community and economic development.
Outgrowths of Discussions: While leadership programs directed at the growth and development
of the individual abound throughout the region, there are few now in operation that focus on
organizational improvement. Such circumstance is troublesome, especially given the growing
national and state emphasis on the non-governmental organization (NGO) model as a mechanism
for community and economic development. Subsequently, the NCRPC took steps this past year
JR Cyr, Executive Director
May 2006
to create a program which focuses on the improvement of certain aspects of organizational
function.
On Friday, October 28,2005, the NCRPC hosted Michael Daigneault (see attached bio) of
BoardSource, Inc., a Washington D.C. based organization dedicated to the improvement of non-
profit organizations. This day-long workshop was devoted to the key components of non-profit
board function and was attended by NCRPC board and staff as well as invited others. This was
the second time the NCRPC Chair and Executive Director had seen Daigneault in action. The
result of this workshop was passage of a $25,000 line item in the NCRPC FY07 budget to help
underwrite a series of such workshops this coming year. Four (4) such events are anticipated
with the targeted subjects being: Partnership between Board and Executive Director; Mission
Development and Strategic Thinking; Financial Resource Development and Transparency; and
Continuous Learning and Revitalization. The goal is to establish an annual repeating series of
such workshops with the objectives being to attract the interest and participation of all NGOs
operations within North Central Kansas and to provide them with the means of improving their
internal operations through leadership development.
Youth Attraction
Youth Attraction was described by Craig Schroeder, who is with the Center for Rural
Entrepreneurship, earlier in 2004 and thus falls outside the time line of this report. However, it
remains one of the four HTC pillars and must be addressed when implementing the model.
HTC does not define "youth" in real terms, only in an abstract way. While it does suggest 20%
of all graduating high school seniors will definitely return to their home area and that another
20% express the desire to return if opportunity presents itself, generally the model is focused on
making sure there is a means of informing anyone who is less than 50 years old of economic
opportunities or "pathways" leading to rural locations. That requires first hand knowledge of
just what opportunities do exist in hometowns and rural areas in general.
Outgrowths of Discussions: Members of the NCRPC staff have internally discussed the issues
related to this "pillar" and have concluded this particular HTC section may require the most
long-term commitment since it is going to be the most difficult to quantify or address. However,
public information must definitely be a part of the solution, so attention this year has been given
to fleshing out www.ruraloasis.org with specific attention going to its sister sites,
www.eveonkansas.org and www.oirro.org.
To do this, the NCRPC contracted interns and personnel associated with the former Kansas
Center for Rural Initiatives at Kansas State University to develop the sites with content coming
from the NCRPC as well as other quarters interested in the rural environment. The goal is to
create a portal to life in various rural parts of Kansas as well as a source of explanation as to why
such life exists. Ultimately, the goal is provide intimate understanding of just what those seeking
a rural lifestyle can find and expect in North Central Kansas and its sister regions.
JR Cyr, Executive Director
May 2006
Entrepreneurship Development
HTC Instruction: Don Macke, Co-Director of the Center for Rural Entrepreneurship, spent
four (4) days in North Central Kansas and multiple hours on the telephone working with NCRPC
staff during the period. On October 19, 2004 Don delivered one (1) detailed workshop focused
on the keys to entrepreneurship, discussing what it is and isn't, and what communities need to do
to support local entrepreneurship growth, as well as one (1) wrap-up workshop on May 19,2005
at which time he again related the importance of all four "pillars" to economic development.
Outgrowths of Discussion: The national agenda has changed from one of industrial
recruitment to that of entrepreneurship development over the past decade. While businesses do
move from place to place, rural locations are more apt to find local business people as being the
producers of local growth and development. And while the HTC model focuses on
entrepreneurship development, it largely relies on the entrepreneur to be self-motivated and to
produce his/her own ideas. Subsequently, the NCRPC concentrated on addressing one ofthe
main inhibitors of rural development, that being rural isolation and the resulting absence of
stimulation. This has been a proven deterrent to rural economic development, although it is not
an insurmountable barrier. One key to implementing growth is an exchange of ideas and energy,
giving local entrepreneurs the impetus to produce.
Working with Kent Glasscock, President of the National Institute of Strategic Technology
Acquisition and Commercialization (NIST AC) located in Manhattan, Kansas, the NCRPC
developed a proposal whereby patents overseen by NIST AC could be made available to proven
business and industry operating in the region. That proposal has been accepted and is currently
being implemented. It basically involves the following steps.
· Informed local leaders identify businesses possessing the capacity and capability to
undertake additional challenges.
· The NCRPC develops a short profile on each business, passing these on to NIST AC.
· Once NISTAC has the opportunity to review the profiles, the NCRPC arranges face-to-
face meetings.
· If all parties remain interested following the meetings, NCRPC personnel develop a much
more in-depth profile of the business, detailing just what products it makes, the processes
it uses and the goals it has in mind.
· This information is passed on to NISTAC at which time it then matches the details
presented against the database of patents it manages or has access to.
· Whichever patents show potential linkage to any particular business operation are then
profiled and explained. This information is given over to the business for review and
consideration.
· If the business believes it has an interest in pursuing commercialization of the patent,
then it develops a business plan explaining how it plans to do just that.
Entrepreneurs accepting this challenge will be awarded business service support funded via the
Rural Business Tax Credit program administered by the NCRPC. Other organizations will
become involved during the process as entrepreneurship need demands.
JR Cyr, Executive Director
May 2006
Summary
As noted earlier, economic development is a process that requires piecing together a variety of
initiatives that when aggregated produce resulting economic opportunity. The HTC model can
be connected to all such activity undertaken by the NCRPC to either get the word out or initiate
programs that support local operations. We believe efforts begun in 2005 and 2006 with the help
of the City of Salina will continue to grow this coming year and will result in North Central
Kansas being more regionally competitive in the arena of economic development.
JR Cyr, Executive Director
May 2006
\ . , .
NCK Rural Renaissance Project
October 2004 to March 2006
Un-Audited Financial Review
Source of Funds
Cash
City of Salina
NCRPC Match (Cash & In-Kind)
Total Sources of Funds
$ 20,000.00
$ 23,097.68
$ 43,097.68
Use of Funds
Cash Expenditures
Center for Rural Entrepreneurship
Nebraska Community Foundation
BoardSource, Inc.
KCRI Interns
Sara (Jan-May 2005)
Tulora (Jan-Mar 2006)
Subtotal: Cash Expenditures
$ 13,234.55
$ 2,929.32
$ 5,429.65
$ 890.00
$ 675.00
$ 23,158.52
In-Kind Expenditures (Time commitments to meetings, writings and phone conversations by
staff specific to the HTC model for 18 month period)
NCRPC Staff
John C.
DebO.
Doug M.
Lori T.
Subtotal: In-Kind Expenditures
$ 8,095.42
$ 4,248.30
$ 2,665.60
$ 4,929.84
$ 19,939.16
Total Use of Funds
$ 43,097.68
JR Cyr, Executive Director
May 2006