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08-26-2013 MinutesJ CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS August 26, 2013 4:00 p.m. The City Commission convened at 3:00 p.m. in a Study Session for a Community Access Television budget update. 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 Barbara V. Shirley (presiding), Commissioners Jon R. Blanchard, Kaye J. Crawford, Randall R. Hardy, and Aaron Householter Also present: Jason A. Gage, City Manager; Michael D. Schrage, Deputy City Manager; Greg Bengtson, City Attorney; and Lieu Ann Elsey, City Clerk AWARDS AND PROCLAMATIONS (3.1) Shirley Jacques with the Salina Area Workers' Coalition read the Labor Day proclamation and announced upcoming events. CITIZEN FORUM Tracey Sin, 340 1/2 S. Connecticut, commented on his recent experience when stopped by a police officer on Sunday. Jason Gage, City Manager, responded to Mr. Siris concern. HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME (5.1) Public hearing on the 2014 budget. (5.1a) Second reading Ordinance No. 13-10708 adopting 2014 budget. (5.1b) Second reading Ordinance No. 13-10709 declaring the necessity for a tax increase. (5.1c) Resolution No. 13-7033 establishing various fees for services in the Comprehensive Fee Schedule. Rod Franz, Director of Finance and Administration, outlined the proposed budget, challenges, and mill levy options. A discussion followed between Commissioner Crawford, Mr. Franz, Commissioner Hardy, City Manager Jason Gage, and Commissioner Householter regarding reserve levels, bond ratings, and natural disaster costs. Mr. Franz then responded to Commissioner Blanchard's question regarding the county -wide equalization, county mill levy, and break-even point. Mr. Gage and Mr. Franz commented on the past mill levy rates. A discussion followed between Commissioner Blanchard and Mr. Franz regarding interest income. Mr. Gage and Commissioner Blanchard commented on the mill levy affect on the sales tax. Commissioner Blanchard spoke about pavement management challenges and expressed concerns with the use of the stabilization fund. Mayor Shirley opened the public hearing. Dennis Lauver, Salina Chamber of Commerce, expressed the importance of community support from local businesses and the concerns with online purchases and not generating sales tax. Steven Howe, 2202 Melrose Lane, explained he had obtained about 150 signatures on the online petition on the proposed mill levy increase; he urged the Commission to maintain the current mill levy. Page 1 Commissioner Householter urged the Chamber of Commerce to get online businesses involved; he then expressed the need for the mill levy increase for road 13-0311 II Moved by Commissioner Householter, seconded by Commissioner Hardy, to adopt Ordinance No. 13-10709 on second reading. A roll call vote was taken. Aye: (5) Blanchard, Crawford, Hardy, Householter, Shirley. Nay: (0). Motion carried. 13-0312 II Moved by Commissioner Householter, seconded by Commissioner Blanchard, to adopt Resolution No. 13-7033 as amended. Aye: (5). Nay: (0). Motion carried. Mayor Shirley requested a five minutes break. (5.2) Appeal hearing of the denial of an application by Roy Palmer to be included on the City of Salina's vehicle towing rotation list. Jason Gage, City Manager, explained the process. Mr. Gage continued to summarize the request and denial of the application. A discussion followed between Commissioner Blanchard, Mr. Gage, and Commission Hardy regarding the rotation list, handling process, and response ' times. Carson Mansfield, Deputy Police Chief, noted that he had not received any complaints from police officers or the general public. A discussion followed between Commissioner Hardy, Deputy Chief Mansfield, Commissioner Householter, Mr. Gage, Commissioner Blanchard, and City Attorney Greg Bengtson regarding the process, bonding and insurance requirements, and denial of the request. Roy Palmer, Palmer Trucking, commented on the appeal and that they are reputable business. Mr. Palmer provided the Commission with references and explained the process of disposal of vehicles and the violations he was charged with. Mr. Palmer then responded to Commissioner Blanchard, Commissioner Page 2 maintenance and reserve funds. A discussion followed between Mr. Howe, Commissioner Householter, and Mr. a w Gage regarding the latest bond rating. I Judy Larson, 1715 N. 9f, commented that she tries to purchase locally, but sometimes cannot due to cost. ' Commissioner Householter commented on the affect population density has on tax U revenues. Commissioner Blanchard thanked everyone that provided input. He continued to express the importance of investing in employees, responsible spending, maintaining infrastructure and services, and not straddling the future generations. Commissioner Hardy commented on the City of Salina's action in reducing staff through attrition. Gary Swartzendruber, 528 S. College, spoke on balancing the federal budget and expressed his support for the increase. There being no further comments, the hearing was closed. Dialogue continued between Commissioner Hardy, Commissioner Householter, Mr. Franz, Commissioner Blanchard, Commissioner Crawford, and Mr. Gage regarding use of the funds, replenishing the reserve funds, and what level to increase the levy. 13-0309 Moved by Commissioner Hardy, seconded by Commissioner Crawford, to set the mill levy at 26.94 mills with $440,000 to go toward street repairs in 2014. Aye: (5). Nay: (0). Motion carried. ' 13-0310 Moved by Commissioner Blanchard, seconded by Commissioner Householter, to adopt Ordinance No. 13-10708 on second reading. A roll call vote was taken. Aye: (5) Blanchard, Crawford, Hardy, Householter, Shirley. Nay: (0). Motion carried. 13-0311 II Moved by Commissioner Householter, seconded by Commissioner Hardy, to adopt Ordinance No. 13-10709 on second reading. A roll call vote was taken. Aye: (5) Blanchard, Crawford, Hardy, Householter, Shirley. Nay: (0). Motion carried. 13-0312 II Moved by Commissioner Householter, seconded by Commissioner Blanchard, to adopt Resolution No. 13-7033 as amended. Aye: (5). Nay: (0). Motion carried. Mayor Shirley requested a five minutes break. (5.2) Appeal hearing of the denial of an application by Roy Palmer to be included on the City of Salina's vehicle towing rotation list. Jason Gage, City Manager, explained the process. Mr. Gage continued to summarize the request and denial of the application. A discussion followed between Commissioner Blanchard, Mr. Gage, and Commission Hardy regarding the rotation list, handling process, and response ' times. Carson Mansfield, Deputy Police Chief, noted that he had not received any complaints from police officers or the general public. A discussion followed between Commissioner Hardy, Deputy Chief Mansfield, Commissioner Householter, Mr. Gage, Commissioner Blanchard, and City Attorney Greg Bengtson regarding the process, bonding and insurance requirements, and denial of the request. Roy Palmer, Palmer Trucking, commented on the appeal and that they are reputable business. Mr. Palmer provided the Commission with references and explained the process of disposal of vehicles and the violations he was charged with. Mr. Palmer then responded to Commissioner Blanchard, Commissioner Page 2 Hardy, and Commissioner Crawford's questions regarding towing response time, pricing, complaints received, corrective action taken, and percentage of his business is from the list rotation. Mr. Gage commented the plea bargains from the original felony charges. Z w Dialogue continued between Commissioner Householter, Mr. Gage, Commissioner N Blanchard, and Mr. Palmer regarding reapplying for the rotation list and how long before they could reapply. Joyce Palmer, Palmer Trucking, commented on the charges, towing practices, and U company response time. Mr. Gage noted that the denial is based on the court's ruling. Mr. Palmer felt that the Police Department does not enforce the towing and rotation regulations. Larry Brindle, 132 S. Chicago, commented that Palmer Towing is their preferred towing company and that many commercial businesses utilize them. He felt that the towing regulations needed to be reviewed and to allow Palmer Towing on the rotation list. Mr. Gage spoke on the timeframe to reconsider new requests. Mr. Palmer stated that some of the City of Salina departments do business with them, but would not provide a reference for the fear of retaliation. Mr. Bengtson explained the appeal process, affidavit and amended complaint. Mr. Palmer requested that a timeframe of forgiveness be acknowledged that would allow them to reapply. A discussion followed between Commissioner Householter, Commissioner Hardy, and Mr. Gage regarding reapplying. Mr. Palmer questioned what would happen if neither of the two companies under contract were able to respond. Commissioner Blanchard responded noting the regulations and guidelines. Commissioner Crawford asked if the item could be postponed for two weeks to allow time to review the information. Commissioner Hardy had difficulties of postponing the item, due to the convictions and would be in favor of upholding the denial and to allow the company to reapply in the next company selection. Commissioner Householter concurred with Commissioner Hardy and the city manager's decision, Commissioner Householter encouraged Mr. Palmer to reapply when the opportunity arises. A discussion followed between Mr. Gage, Mr. Bengtson, and Mr. Palmer regarding when the company could reapply. Mr. Gage noted that the company could reapply in the future. 13-0313 Moved by Commissioner Blanchard, seconded by Commissioner Hardy, to uphold the denial of the application. Aye: (5). Nay: (0). Motion carried. ' CONSENT AGENDA 11 (6.1) Approve the minutes of August 19, 2013. (6.2) Resolution No. 13-7036 appointing members to various boards and commissions. 13-0314 II Moved by Commissioner Crawford, seconded by Commissioner Householter, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS fQC}i-3 Page 3 ADMINISTRATION (8.1) Second reading Ordinance No. 13-10714 changing the zoning district classification from unzoned railroad right-of-way to PDD I-2 (Light Industrial) in the Foxboro Addition. z w Mayor Shirley noted that Ordinance No. 13-10714 was passed on first reading on q N August 19, 2013 and since that time no comments have been received. ' 13-0315 Moved by Commissioner Crawford, seconded by Commissioner Householter, to adopt Ordinance No. 13-10714 on second reading. A roll call vote was taken. Aye: (3) Crawford, Householter, Shirley. Nay: (2) Blanchard, Hardy. Motion carried. (8.2) Resolution No. 13-7032 authorizing the sale and conveyance of certain property to KASA Industrial Controls, Inc. Greg Bengtson, City Attorney, explained the issuance of industrial revenue bonds, improvements, and transfer of real estate. 13-0316 11 Moved by Commissioner Householter, seconded by Commissioner Blanchard, to adopt Resolution No. 13-7032. Aye: (5). Nay: (0). Motion carried. (8.3) Resolution No. 13-7034 asking our federal congressional leadership and Kansas congressional delegation to preserve the tax-exempt status of municipal bonds as they consider the 2014 Concurrent Budget Resolution. Jason Gage, City Manager, use of municipal bonds, proposed legislation, and proposed resolution. Mr. Gage then responded to Commissioner Blanchard's question regarding the types of bonds that would be affected. 13-0317 Moved by Commissioner Householter, seconded by Commissioner Blanchard, to adopt Resolution No. 13-7034. Aye: (5). Nay: (0). Motion carried. ' (8.4) Resolution No. 13-7035 asking the Kansas Corporation Commission to deny Westar Energy's application for electricity rate increase for 2014. Jason Gage, City Manager, summarized the proposed increase, affect on the community, and proposed resolution. Commissioner Blanchard noted a correction to the resolution. 13-0318 II Moved by Commissioner Householter, seconded by Commissioner Hardy, to adopt Resolution No. 13-7035 as amended. Aye: (5). Nay: (0). Motion carried. (8.5) Resolution No. 13-7030 responding both to Saline County's rejection of the City's "Salina -Saline County Building Proposal" and their respective counterproposal. 13-0319 Moved by Commissioner Blanchard, seconded by Commissioner Householter, to recess into executive session for 10 minutes to discuss with legal counsel matters subject to the attorney-client privilege for the reason that public discussion of those matters would waive the privilege and adversely affect the City's interest in the matters and reconvene at 7:05 p.m. Aye: (5). Nay: (0). Motion carried. The City Commission recessed at 6:55 p.m. and reconvened at 7:08 p.m. Jason Gage, City Manager, and Greg Bengtson, City Attorney, explained the proposals submitted and received and settlement agreement. A discussion followed between Commissioner Householter, Mr. Gage, and Mr. Bengtson regarding the latest proposal for an interlocal agreement. Mr. Bengtson clarified that they had not received any formal communications, but have articulated the rejection of the interlocal agreement due to the failed motion by the County Commissioners. 13-0320 IlMoved by Commissioner Hardy, seconded by Commissioner Householter, to adopt Resolution No. 13-7030. Aye: (5). Nay: (0). Motion carried. Page 4 Commissioner Crawford commented that she has always been in favor of a joint relationship, but is appalled by the refusal of Saline County. She felt that if an agreement had been met, the County would not have to increase their mill levy. Mayor Shirley concurred with Commissioner Crawford, stating that she was w embarrassed for the County Commission. N Commissioner Hardy expressed his concerns with the County's decision of not N increasing the Health Department mill levy by more than two mills, where it could have been protested by the Saline County residents, and overall funding of the health department in the future. Commissioner Blanchard commented that Saline County has vowed to fully fund the health department and not cut staff or services. He expressed concerns on whether that will happen. OTHER BUSINESS Commissioner Householter acknowledged along with himself, Gary Hobbie, Darrin Write, Commissioner Blanchard, and North Salina Community Development volunteers participated in a landscaping improvement project at the intersection of North 96, and Broadway. ADJOURNMENT 13-0321 Moved by Commissioner Blanchard, seconded by Commissioner Hardy, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 7:21 p.m. ' [SEAL] Aaron Householter, Vice -mayor ATTEST: Lieu Ann Elsey, CMC, AyClerk Page 5