03-04-1991 MinutesCITY OF SALINA, KANSAS
REGULAR MEETING OF THE BOARD OF COMMISSIONERS
MARCH 4, 1991
4:00 p.m.
The Regular Meeting of the Board of. Commissioners met in the Commission
Meeting Room, City -County Building, on Monday, March 4, 1991, at 4:00 p.m.
There were present:
Mayor Robert E. Frank, Chairman presiding
Commissioner Carol E. Beggs
Commissioner John Divine
Commissioner Stephen C. Ryan
Commissioner Joseph A. Warner
comprising a quorum of the Board, also present:
Greg Bengtson, City Attorney
Dennis M. Kissinger, City Manager
Jacqueline Shiever, City Clerk
Absent:
None
None
CITIZEN FORUM
AWARDS - PROCLAMATIONS
(4.1) The Mayor proclaimed the Week of March 10 through 16, 1991 as
"GIRL SCOUT WEEK IN SALINA." The proclamation was read by Janice
Peterson, Field Director of Public Relations with the Girl Scout Council.
(4.2) The Mayor proclaimed the Week of March 10 through 16, 1991 as
"EMPLOY THE OLDER WORKER WEEK." The proclamation was read by Pat
Kinnaird, Coordinator of the Older Kansas Employment Program.
PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME
None
CONSENT AGENDA
(6.1 ) Approve the Minutes of the Regular Meeting February 25, 1991.
(6.2) Petition Number 4006, filed by Howard Warren, for the installation of
traffic control signal lights at the intersection of Crawford Street and Hancock
and Montrose Streets. (Refer to the City Engineer for a recommendation.)
(6.3) Petition Number 4007, filed by Rhonda Plante, for the correction of
the excessive noise, speed and trash along Hancock Street from Ashton's West
to Sunset Park. People use this street as a short cut from Crawford to the
Park. The petition suggests closing Hancock Street running north and south,
also installing stop signs on Wilson Street from Hancock to 9th Street. (Refer
to the City Engineer for a recommendation . )
(6.4) Set the date of March 26, 1991 to receive bids for Engineering
Project 91-825, 1991 Latex Modified Slurry Seal.
(6.5) Set the date of March 26, 1991 to receive bids for Engineering
Project 91-826, 1991 Joint and Crack Sealing Project.
91-072 Moved by Commissioner Warner, seconded by Commissioner Ryan
that all items on the Consent Agenda be approved. Aye: (5). Nay: (0).
Motion adopted .
91-073
91-074
91-075
91-076
DEVELOPMENT BUSINESS
(7.1) Recommendation from the Heritage Commission that Heritage
Conservation Application 91-01, filed by Merle A. and Nancy H. Hodges et al,
for historic district designation of an area of property consisting of
approximately 10 acres located in the 800 block of South Santa Fe, be
approved. (Introduce Ordinance Number 91-9427 for first reading.)
Roy Dudark, Director of Planning and Community Development,
reviewed the first application for an historic district and the recommendation
of the Heritage Commission.
Dr. Merle Hodges, applicant, thanked the City Planner and City
Commission for their consideration of the application for an historic district.
He reviewed the neighborhood interest in the historic preservation of the block
and asked the City Commission to approve the ordinance.
Moved by Commissioner Divine, seconded by Commissioner Warner
that the recommendation of the Heritage Commission be accepted, that Heritage
Conservation Application 91-01 be approved, and that Ordinance Number
91-9427, designating an area of property consisting of approximately 10 acres
located in the 800 block of South Santa Fe Avenue for historic district
designation, be introduced for first reading. Aye: (5). Nay: (0). Motion
adopted.
(7.2) 1991 Community Development Block Grant Program.
Roy Dudark, Director of Planning and Community Development,
reviewed the Community Development Block Grant Program for the
Commissioners and asked for their direction.
Moved by Commissioner Warner, seconded by Commissioner Divine
that staff be instructed to proceed with the 1991 Community Development Block
Grant Program and that March 18 and April 15, 1991 be set for the required
public hearings. Aye: (5). Nay: (0). Motion adopted.
ADMINISTRATION
(8.1) Possible reconsideration of property tax status (payment in lieu of
taxes) decision of February 25, 1991 for KASA Industrial Controls $400,00
Industrial Revenue Bonds.
Moved by Commissioner Beggs, seconded by Commissioner Divine
that the City Commission reconsider the property tax exemption decision of
February 25, 1991. Aye: Beggs, Divine, Frank (3) . Nay: Ryan, Warner
(2) . Motion adopted.
The Commissioners discussed the tax exemption matter and reviewed
the City Commission policy and decision of February 25, 1991.
Dean Owens, Attorney for the applicant, reviewed State authorized
IRB exemption for Commissioner Divine and stated the City Commissioners may
restrict the exemption for a specific number of years.
Karl Stutterheim, President of KASA Industrial Controls gave a brief
background on the company. He said the company started in 1974 and the
first IRB's were issued in 1978. They have added 6 employees in 1991 and
are not a struggling company. He said the company has a $2 million payroll
and use $1 million of goods and services in Salina and that ninety-eight
percent of KASA income is from outside the city and state.
Ernest Cole, 153 S. Front, said several factors were not discussed.
The County will increase the mill levy 25% because there has been no growth
in appraised value of property in Saline County. He said tax exemption for
one causes increased taxes for others.
Moved by Commissioner Beggs, seconded by Commissioner Divine
that a three year, 100% exemption on the issue with no subsequent exemption
for the remainder of the 10 year period, be granted. Aye: Beggs, Divine,
Frank (3) . Nay: Ryan, Warner (2) . Motion adopted.
_ (~nmmiooinn
Kuhn-Cox�Prin�i a Salina, Kansas
91-077
r 1
(8.2) Second Reading Ordinance Number 91-9426, authorizing the City of
Salina, Kansas to issue its Industrial Revenue Bonds, Series 1991 (KASA
Industrial Controls, Inc.) in the aggregate principal amount of $400,000 for
the purposes of acquiring, constructing and equipping an industrial project;
authorizing execution of a trust indenture by and between the City and First
National Bank and Trust, in the City of Salina, Kansas, as Trustee (the
"Trustee"); authorizing execution of a lease between the City and KASA
Industrial Controls, Inc. (the "Tenant"); approving the form of a guaranty
agreement by and among the tenant, Karl R. Stutterheim and Connie L.
Stutterheim and Sam C. Sheppard and Patricia A. Sheppard as guarantors and
the trustee; and authorizing the execution of a bond purchase agreement by
and among the City, the Tenant and J.O. Davidson & Associates, Inc., as
purchaser of the bonds.
Moved by Commissioner Divine, seconded by Commissioner Beggs
that Ordinance Number 91-9426, authorizing the City of Salina, Kansas to
issue its Industrial Revenue Bonds, Series 1991 (KASA Industrial Controls,
Inc.) in the aggregate principal amount of $400,000 for the purposes of
acquiring, constructing and equipping an industrial project; authorizing
execution of a trust indenture by and between the City and First National
Bank and Trust, in the City of Salina, Kansas, as Trustee (the "Trustee");
authorizing execution of a lease between the City and KASA Industrial
Controls, Inc. (the "Tenant"); approving the form of a guaranty agreement by
and among the tenant, Karl R. Stutterheim and Connie L. Stutterheim and Sam
C. Sheppard and Patricia A. Sheppard as guarantors and the trustee; and
authorizing the execution of a bond purchase agreement by and among the
City, the Tenant and J.O. Davidson & Associates, Inc., as purchaser of the
bonds, be adopted. Aye: Beggs, Divine, Ryan, Warner, Frank (5). Nay:
(0) . Motion adopted.
Greg Bengston, City Attorney, said the record should reflect that
an agreement will be included in the bond documents which will reflect the
current tax status.
(8.3) Report on bids received at 2:00 p.m. for General Obligation Bonds,
Series P-237, in the amount of $1,300,000.
Robert K. Biles, Director of Finance and Administration, reviewed
the eleven bids received and recommended the City Commission accept the low
bid of Commerce Bank of Kansas City with a net interest cost to the City of
$451,002.50 and an average annual net interest rate of 5.782083%.
Chuck Booley, George K. Baum & Co., the City's financial advisor,
said the City received excellent bids because of the level principal payment
schedule and it's Al rating on the bonds.
Moved by Commissioner Warner, seconded by Commissioner Ryan that
the recommendation of the Finance Director be accepted and that the bonds be
sold to Commerce Bank of Kansas City for a net interest cost of $451,002.50
and an average annual net interest rate of 5.782083%. Aye: (5) . Nay: (0) .
Motion adopted.
(8.4) First Reading Ordinance Number 91-9428, authorizing and directing
the issuance, sale and delivery of $1,300,000 principal amount of General
Obligation Internal Improvement Bonds, Series P-237, of the City of Salina,
Kansas, for the purpose of providing funds to pay the cost of the
construction of storm water drains and sewers in the city and the cost of
construction of improvements to the Ninth Street and Crawford Street
intersection within the City of Salina, Kansas; prescribing the form and details
of said bonds; providing for the levy and collection of the necessary taxes for
the purpose of paying the principal of and interest on said bonds as they
become due; authorizing an agreement between the city and the bond
registrar; approving the preliminary and final official statements and
redeeming outstanding temporary notes.
91-079
• 1:1
91-081
91-082
91-083
Moved by Commissioner Warner, seconded by Commissioner Divine
that Ordinance Number 91-9428, authorizing and directing the issuance, sale
and delivery of $1,300,000 principal amount of General Obligation Internal
Improvement Bonds, Series P-237, of the City of Salina, Kansas, for the
purpose of providing funds to pay the cost of the construction of storm water
drains and sewers in the city and the cost of construction of improvements to
the Ninth Street and Crawford Street intersection within the City of Salina,
Kansas; prescribing the form and details of said bonds; providing for the levy
and collection of the necessary taxes for the purpose of paying the principal
of and interest on said bonds as they become due; authorizing an agreement
between the city and the bond registrar; approving the preliminary and final
official statements and redeeming outstanding temporary notes, be introduced
for first reading. Aye: (5). Nay: (0). Motion adopted.
(8.5) First Reading Ordinance Number 91-9429, amending Section 41-4 of
the Salina Code to allow the sum of money in the Water and Sewerage Petty
Cash Fund to be established by Resolution and repealing the existing section.
Robert K. Biles, Director of Finance and Administration, reviewed
the necessity to increase the Water & Sewerage Petty Cash fund from time to
time and asked the City Commission to amend the Salina Code section to allow
the amount to be established by resolution.
Moved by Commissioner Divine, seconded by Commissioner Ryan that
Ordinance Number 91-9429, amending Section 41-4 of the Salina Code to allow
the sum of money in the Water and Sewerage Petty Cash Fund to be
established by Resolution and repealing the existing section, be introduced for
first reading. Aye: (5). Nay: (0). Motion adopted.
(8.6) Report on bids received Tuesday, February 26, 1991 for Engineering
Project 91-822 for the demolition of four structures. (Reject all bids and set
the date of March 19, 1991 to receive bids.)
Roy Dudark, Director of Planning and Community Development,
reported on the bids received and that the bids were well above the Engineer
estimate.
Moved by Commissioner Warner, seconded by Commissioner Beggs
that all bids be rejected and that March 19, 1991 be set to receive bids. Aye:
Beggs, Divine, Ryan, Warner (4). Nay: (0). Mayor Frank abstained.
Motion adopted.
(8.7) Report on bids received Tuesday, February 26, 1991 for the
construction of a Solid Waste Maintenance Building. (Award the contract to
Mark Industries, Inc., Hutchinson, Kansas in the amount of $81,305.00.)
Frank Weinhold, Director of General Services, reported on the bids
received and recommended the contract be awarded to Mark Industries, Inc. of
Hutchinson, Kansas.
Moved by Commissioner Divine, seconded by Commissioner Beggs
that the staff recommendations be accepted and that the contract be awarded
to Mark Industries, Inc. in the amount of $81,305.00. Aye: (5). Nay: (0).
Motion adopted.
(8.8) Resolution Number 91-4280, directing public notice of application for
exclusion of Lots 1, 3, 5, 7, 9, 11, 13, 15, 17 and 19, West of the present
Dry Creek Channel in Block 1, North Park Addition from the City Limits, and
for the vacation of the South 20' of street right-of-way of Grand Avenue,
adjacent to Lot 1, Block 1, North Park Addition. (This Resolution sets
March 18, 1991 for a public hearing.)
Moved by Commissioner Warner, seconded by Commissioner Beggs
that Resolution Number 91-4280, directing public notice of application for
exclusion of Lots 1, 3, 5, 7, 9, 11, 13, 15, 17 and 19, West of the present
Dry Creek Channel in Block 1, North Park Addition from the City Limits, and.
for the vacation of the South 20' of street right-of-way of Grand Avenue,
adjacent to Lot 1, Block 1, North Park Addition, be adopted and that March
18, 1991 be set for a public hearing. Aye: (5). Nay: (0). Motion adopted.
91-084
91-085
91-087
(8.9) Resolution Number 91-4281, directing public notice of application or
vacation of the South 120' of a North-South alley between Santa Fe Avenue
and Fourth Street, from the north line of Claflin Street to a point 120' North,
Grounds of KWU Addition. (This Resolution sets March 18, 1991 for a public
hearing. )
Moved by Commissioner Ryan, seconded by Commissioner Beggs that
Resolution Number 91-4281, directing public notice of application or vacation of
the South 120' of a North-South alley between Santa Fe Avenue and Fourth
Street, from the north line of Claflin Street to a point 120' North, Grounds of
KWU Addition, be adopted and that March 18, 1991 be set for a public
hearing. Aye: (5) . Nay: (0) . Motion adopted.
(8.10) Consideration of General Policy regarding indemnification of public
officials and employees for legal defense costs; specific consideration of a
request from Police Patrol Officer Donald E. Poore.
Dennis M. Kissinger, City Manager, reviewed the request for the
City Commission to adopt a policy in accordance with the Attorney General
Opinion 85-42, which would establish that the City will not normally provide
legal counsel in advance for city officials or employees charged in criminal
cases, and the second part of the policy would state the City's willingness to
indemnify a city official or employee for attorney's fees incurred in defending
a criminal action where the defendant is acquitted, and if the City Commission
finds that the underlying criminal actions arose from the discharge of an
official duty in which the City had an interest, and that the official or
employee acted in good faith.
Moved
the staff report
(5). Nay: (0).
by Commissioner
be accepted and
Motion adopted.
Ryan, seconded by Commissioner Beggs that
that the recommendations be adopted. Aye:
The Commissioners and staff discussed the ramifications of the policy.
Moved by Commissioner Ryan, seconded by Commissioner Divine that
the Commission reconsider the previous motion. Aye: (5) . Nay: (0) . Motion
adopted.
The Commissioners asked that the policy be developed outlining the
future liability of the city, and that it be precisely set out in a Resolution.
The Commissioners considered the specific request for payment of
attorney fees incurred by Officer Donald Poore, in the amount of $13,500.
Jim Hill, Police Chief, explained that the officer was in hot pursuit
of a fleeing subject.
Keith Rawlings, Risk Manager, explained the City has a general
liability policy covering city employees except police, and a police liability
policy which is being pursued at this time.
Moved by Commissioner Divine, seconded by Commissioner Ryan that
the City Commission authorize the reimbursement of legal fees to Officer
Donald Poore, not to exceed $13,500, because the underlying criminal action
arose from discharge of an official duty in which the City had an interest and
that the officer acted in good faith, and that staff pursue the insurance
question. Aye: (5) . Nay: (0) . Motion adopted.
(8.11) Call a special meeting of the Board of Commissioners for 8:00 a.m. ,
Tuesday, March 5, 1991.
Moved by Commissioner Beggs, seconded by Commissioner Ryan that
a special meeting of the Board of Commissioners be set for 8:00 a.m. Tuesday,
March 5, 1991. Aye: (5). Nay: (0). Motion adopted.
91-089
91-090
(8.12) Possible Executive Session to discuss personnel matter. (City
Manager Annual Evaluation.)
Moved by Commissioner Divine, seconded by Commissioner Warner
that the Board of Commissioners recess into executive session for 20 minutes
for the purpose of discussing a personnel matter involving non -elected
personnel for the reason that public discussion of the matter would invade the
privacy of the non -elected personnel involved. Aye: (5). Nay: (0).
The Board of Commissioners recessed at 6:11 p.m. and reconvened
at 6:30 p.m.
The City Commission took no action.
OTHER BUSINESS
ADJOURNMENT
Moved by Commissioner Ryan, seconded by Commissioner Beggs that
the Regular Meeting of the Board of Commissioners be adjourned. Aye: (5) .
Nay: (0) . Motion adopted. The meeting adjourned at 6:31 p.m.
Robert E. Frank,May
(SEAT,)
ATTEST:
Jacqueline Shiever, City Clerk
Kinn -Co Printing — S.11— Kansas
WAIVER AND CONSENT TO HOLD
A SPECIAL MEETING OF THE BOARD OF COMMISSIONERS
We, the undersigned, being duly elected, qualified and acting City
Commissioners of the City of Salina, Kansas, do hereby request a special meeting
of the Board of Commissioners of the City of Salina, Kansas, on the 5th day of
March, 1991, at 8:00 a.m. for the purpose of considering the following:
1. Adopting Ordinance Number 91-9428, authorizing and directing the
issuance, sale and delivery of $1,300,000 principal amount of General
Obligation Internal Improvement Bonds, Series P-237, of the City of
Salina, Kansas, for the purpose of providing funds to pay the cost of
the construction of storm water drains and sewers in the City and the
cost of construction of improvements to the Ninth Street and Crawford
Street intersection within the City of Salina, Kansas; prescribing the
form and details of said bonds; providing for the levy and collection of
the necessary taxes for the purpose of paying the principal of and
interest on said bonds as they become due; authorizing an agreement
between the City and the Bond Registrar; approving the preliminary
and final official statements and redeeming outstanding temporary
notes.
Dated this 4th day of March, 1991.
Carol E. Beggs, C ssioner
':�) W-v�
John Divine, ommissioner
Stephen y n, Commissioner
OV010- FIAPO"AdF I
-V,'-- •h A.-Wbrnerr Cdmmi§sioner