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12-15-2014 MinutesCITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS December 15, 2014 4:00 P.M. The City Commission convened at 2:30 p.m. for Iron Avenue Gateway Design Question and Answer Forum and at 3:45 p.m. for Citizens Forum. The Regular Meeting of the Board of Commissioners was called to order at 4:07 p.m. in Room 107, City -County Building. Roll call was taken followed by the Pledge of Allegiance and a moment of silence. Those present and comprising a quorum: Mayor Aaron Householter (presiding), Commissioners Jon R. Blanchard, Kaye J. Crawford, Trent Davis, and Randall R. Hardy. Also present: Jason A. Gage, City Manager; Michael D. Schrage, Deputy City Manager; Greg Bengtson, City Attorney; and Shandi Wicks, City Clerk. AWARDS AND PROCLAMATIONS None. 4FORUM None. HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. CONSENT AGENDA (6.1) Approve minutes of December 8, 2014. (6.2) Resolution No. 14-7164 reaffirming the Solid Waste Management Plan for Saline County. Commissioner Hardy requested that Item 6.1 be removed from the consent agenda. 14-0382 Moved by Commissioner Blanchard, seconded by Commissioner Davis, to approve item 6.2 of the consent agenda. Aye: (5). Nay: (0). Motion carried. (6.1) Approve minutes of December 8, 2014. Commissioner Hardy noted minor changes to the minutes. 14-0383 Moved by Commissioner Blanchard, seconded by Commissioner Hardy, to approve the December 8, 2014 amended minutes. Aye: (5). Nay: (0). Motion carried. .1) Second reading Ordinance No. 14-10759 amending Salina Code Section 31.6, definition of "Perennial Violator", within the Property Maintenance Code. Mayor Householter noted that Ordinance No. 14-10759 was passed on first reading on December 8, 2014 and since that time no comments have been received. Page 1 14-0384 Moved by Commissioner Davis, seconded by Commissioner Blanchard, to adopt Ordinance No. 14-10759 on second reading. A roll call vote was taken. Aye: (5) Blanchard, Crawford, Davis, Hardy, Householter. Nay: (0). Motion carried. (7.2) Receive and review the 2013 Audit Report from Mize Houser and Company. Rod Franz, Director of Finance and Administration, summarized the audit. Abram Chrislop, Mize Houser & Company, explained the requirements of internal controls S U and the federal fund audit guidelines. E Commissioner Blanchard asked about the new Kansas Public Employees Retirement System (KPERS) requirements. Mr. Chrislop responded by stating that the new requirements have not gone into effect yet and they were waiting on more information from KPERS. Commissioner Hardy asked about the restatement of the equity in the audit and asked if there were changes in the process. Mr. Chrislop responded by stating the process did not change and that a capital asset adjustment was made for the capital projects that were completed for an adjustment of the final project costs. Mr. Chrislop also stated that the accounts receivable adjustment valuation was changed from the previous year to allow for doubtful accounts and the bond payable adjustment was moved from a governmental fund to an enterprise fund, shifting the liability from one fund to another. Commissioner Hardy asked about the compliance and other matters that were reported to management of the City in a separate letter. Mr. Chrislop responded by stating that the firm recommended minor control regulations and provide the City information on upcoming legislation. Commissioner Blanchard asked about new legislation pertaining to tax abatements and if the incentives and reporting of value of abatements and other incentives would be part of an audit. Jason Gage, City Manager, responded by stating that he did not recommend changing the structure of what was contained in an audit unless there would be a change to federal or state law but that a simple report containing the information should suffice. Mr. Chrislop responded by stating that he was not aware of the requirement to include the reporting of the value of abatements or other incentives within the audit. Commissioner Hardy asked about the Bicentennial Center expenses and lack of revenue on the Combined Statement of Revenues and Expenditures. Mr. Franz responded by stating that a portion of the Transient Guest Tax is used for the Bicentennial Center and had been supplemented by the General fund and it may not show as revenue but may show as an interfund transfer. Commssioner Hardy noted a modification to Schedule 6 of the audit pertaining to the fiscal (budget) year designation. Commissioner Blanchard noted that the document was provided by the County Clerk. Commissioner Hardy noted that he thought the Ratio of the Net General Bonded Debt Outstanding Per Capita Schedule was high but after looking at the amount Junction City owes, thought the City was doing well. Mr. Franz noted that the primary reason for the increase was the aquatic center which was paid for out of the dedicated sales tax. 14-0385 Moved by Commissioner Hardy, seconded by Commissioner Davis, to receive the 2013 audit report. Aye: (5). Nay: (0). Motion carried. Page 2 7.3) First reading Ordinance No. 14-10760 authorizing the City Manager to execute rural fire protection contracts. Chief Larry Mullikin explained the current contracts, changes to the services and new contract form. Commissioner Hardy asked for additional information on the rates charged for fire protection. Chief Mullikin responded by stating that the rate cap was by an executed ordinance. f L Commissioner Hardy asked if the rate cap was adequate for the service provided. Chief L Mullikin responded by stating that the rate cap was adequate for the service that has been provided in the past, but if there was a catastrophic event at one of the facilities, the services provided will consume the $25,000 amount plus. Commissioner Hardy asked if $25,000 was adequate for some of the larger employers. Chief Mullikin responded by stating that history has shown that the amount was adequate and staff normally responds a couple times a year for smaller incidents. Commissioner Hardy asked if the City was self insured on the contracts. Chief Mullikin responded yes, it was a service the City provides and cities handle in various different ways. The customer base has remained the same over the past seven years that he has been with the City. Commissioner Blanchard asked if the contracts address commercial properties and how the existing residential properties were affected. Chief Mullikin responded by stating the contract was for commercial properties but that the existing residential properties would be able to obtain protection for 2015 and also noted that the majority of the owners for the residential properties did not plan to obtain protection. Chief Mullikin also stated that staff sent two additional letters to property owners prior to the mailing of the contract. Commissioner Blanchard asked if there was opportunity for feedback on the changes and if the feedback had been positive. Chief Mullikin responded by stating yes there was �r opportunity for feedback and the feedback received had been positive. f Greg Bengtson, City Attorney, noted that there was a statutory requirement requiring Lapproval of the rural fire protection contract by ordinance. 14-0386 Moved by Commissioner Blanchard, seconded by Commissioner Crawford, to pass Ordinance No. 14-10760 on first reading authorizing the City Manager to execute rural fire protection contracts. Aye: (5). Nay: (0). Motion carried. (7.4) Accept settlement of final City -County Health Department residual balance. Rod Franz, Director of Finance and Administration, explained the settlement. Commissioner Blanchard asked what the animal shelter donation fund was used for. Mr. Franz responded by stating that the donation fund was primarily used for spay and neuter services and the funds were slated for the benefit of the animal shelter. Jason Gage, City Manager, also responded by stating that the donation funds can be used for other animal shelter purposes. Commissioner Crawford asked if the City pays local veterinarians the same rate for spay and neuter services as the public. Commissioner Davis responded by stating that the Page 3 veterinarians do offer reduced cost services for the City. Mr. Franz noted a slight variation to the settlement amount due to transactions that came in after the December 311 audited balance. Commissioner Blanchard asked about the distribution of funds to the Special Sales Tax Fund and General Fund. Mr. Franz responded by stating that the special sales tax distribution was a reimbursement for the advance to the City -County Health Department earlier in the year and the amount to the general fund was the residual balance. Commissioner Hardy asked if the donation funds can be used for the potential new dog park in town. Mr. Gage responded that staff would need to look at the donations received and how they were directed to answer that, but if there was not a specific earmark use listed, the funds may be able to be used for that. Staff would need to see if the use of the funds were limited to the function of the animal shelter. 14-0387 Moved by Commissioner Blanchard, seconded by Commissioner Davis, to accept the final settlement of the City -County Health Department residual balance. Aye: (5). Nay: (0). Motion BUSINESS None. OTHER BUSINESS Mayor Householter provided his thoughts on the Salina Symphony show that took place in Salina fast weekend. Greg Bengtson, City Attorney, requested a short executive session. 14-0388 Moved by Commissioner Crawford, seconded by Commissioner Davis, 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 4:50 p.m. The City Commission recessed for a 2 minute break at 4:38 p.m. then recessed into executive session at 4:40 p.m. and reconvened at 4:53 p.m. No action was taken. 14-0389 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 4:53 p.m. [SEAL] Aaron K. Householter, Mayor Wicks, CMC, City Clerk Page 4