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01-12-2015 MinutesLJ [1 CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS January 12, 2015 4:00 p.m. W The City Commission convened at 3:45 p.m. for Citizens Forum. U) The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City -County Building. Roll call was taken followed by the Pledge of Allegiance and a moment of silence. N C O 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 (3.1) The day of January 19, 2015 as "Dr. Martin Luther King, Jr. Commemoration Day' in the city of Salina. Darrion and DeKeysha Cooper read the proclamation and announced upcoming events. (3.2) The week of January 11-17,2015 as "Good Government Week" in the city of Salina. Mayor Householter read the proclamation. CITIZEN FORUM Mayor Householter read the meeting protocol for the Salina City Commission meetings. Norman Mannel, 7532 Pleasant Hill Road, Salina, Kansas, provided thoughts on the economic development of Salina and Saline County. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. CONSENT AGENDA (6.1) Approve minutes of January 5, 2015. Commissioner Davis asked a question regarding the minutes. 15-0008 Moved by Commissioner Davis, seconded by Commissioner Hardy, to approve the minutes of January 5, 2015. Aye: (5). Nay: (0). Motion carried. ADMINISTRATION (7.1) Resolution No. 15-7170 setting the date for a public hearing to consider whether certain structures shall be condemned and ordered demolished or repaired. Jim Brown, Building Official, explained the dangerous structures procedure and the locations of each of the structures. Commissioner Hardy asked if the action should not come as a surprise to the property owner. Mr. Brown responded by stating it should not be a surprise. Page 1 1 15-0010 15-0011 Commissioner Blanchard asked what portion of the 500 E. Pacific building would be demolished and noted the excess junk sitting on the lot. Mr. Brown responded by stating all structures except the center portion and Mr. Gage responded by stating when you deal with the structure you are dealing with the impact of the site as a result of the structure. Moved by Commissioner Hardy, seconded by Commissioner Crawford, to adopt Resolution No. 15-7170 setting February 23, 2015 as the public hearing date for dangerous structures located at 234 S. Phillips, 627 S. 5th Street and 500 E. Pacific (U-shaped structure). Aye: (5). Nay: (0). Motion carried. (7.2) Approve Change Order No. 1 and Supplemental Agreement No. 4 for the Downtown Wellfield Improvements, Contract 2 - Air Strippers, Project No. 10-2840. Martha Tasker, Director of Utilities, explained the project, change order and supplemental agreement. Commissioner Hardy asked if 3-D modeling would take place after the job was complete. Ms. Tasker responded that there would not be additional modeling to take place after the job was complete. Commissioner Davis asked since the contractor was paying for part of the repairs if that meant the repairs could have been predictable. Ms. Tasker responded by stating that the engineer would share the cost with the City because the City could not pinpoint it as the engineers fault but they felt compelled to help with the cost. Commissioner Blanchard asked if there was another use for the unused materials. Ms. Tasker responded by stating that staff kept the materials for a short time but does not have a need for the materials in other work. Normal Mannel, 7532 Pleasant Hill Road, Salina, Kansas, stated that the unused metal could be given to Arts & Humanties to create art with. Moved by Commissioner Blanchard, seconded by Commissioner Davis, to approve Change Order No. 1 for the Downtown Wellfield Improvements, Contract 2 - Air Strippers, Project No;10-2840 to Walters -Morgan Construction, Inc., Manhattan, Kansas in the amount of $138,448 (Revised Total Contract $1,054,448). Aye: (5). Nay: (0). Motion carried Moved by Commissioner Blanchard, seconded by Commissioner Crawford, to approve Supplemental Agreement No. 4 with HDR Engineering, Inc of Kansas City, Missouri for Computational Fluid Dynamics Modeling and Engineering Services for Phase I - Downtown Wellfield Improvements, Project No. 10-2840 in the amount of $31,495. The Total Fee is $62,900; the City share is $31,495, and the remaining fee of $31,495 will be absorbed by HDR and is not included in the Supplemental Fee. (Revised Estimated Fee $459,728.). Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS (8.1) Citizen request for Affirmation of Low Income Housing Tax Credits. Gary Hobbie, Director of Development Services, explained the process and condition of the structures. Michael Schrage, Deputy City Manager, explained the Kansas Housing Resource Corporation application process, the information received from Mr. Fred Bentley, Director Page 2 of Rental Housing Tax Credits, and the information needed from the City of Salina to be submitted for the development of the building. Mike Forristal, Lee Building, 254 N. Santa Fe, provided information regarding the Low Income Housing Tax Credits, potential developers, and the need for an affirmation of the Z Low Income Housing Tax Credits. a w Commissioner Davis asked Mr. Forristal if it was his understanding that the application could be filed without the affirmation. Mr. Forristal responded by stating that the 0 developer needs the affirmation not the Kansas Housing Resource Corporation. N Commissioner Blanchard asked if Salina Downtown, Inc. had someone at the meeting to speak or if Mr. Forristal had a letter from Salina Downtown, Inc. showing their support. Mr. Forristal responded by stating that Salina Downtown, Inc. supported the idea in the past. Commissioner Blanchard provided his thoughts on the need for additional information regarding the project. Mr. Schrage responded by stating that the developer would be the person that would drive the decisions on redevelopment, financing, and a lot of the key decisions. Mr. Forristal stated that the developer would need to come to him to purchase the property to develop it. Commissioner Davis asked what the difference was in the .percentage of financing. Mr. Forristal responded by stating that the percentage was 60%/40% and the developer would break even at 70%/30% but the developer would prefer 80%/20%. Commissioner Davis asked what Mr. Forristal's timeline was with the developers. Mr. Forristal responded by stating that he needed to get with the potential developer but the developer was putting together some information to possibly present at the next Monday's City Commission meeting. He also stated that the potential developer had created a plan and submitted it to the City two years ago. Mr. Gage responded by stating that a pre - conceptual meeting took place with the potential developer in the past and information was relayed to the developer at that time, after that point, staff did not hear back from the developer. Commissioner Davis asked if the January 26, 2015 City Commission meeting would work for Mr. Forristal. Mr. Forristal responded by stating that he was not sure if the date would work for the developer but it would work for him. Commissioner Crawford stated that the application must be submitted by February 6, 2015. Mr. Forristal stated yes, but submittal of applications was part of what developers do. Commissioner Crawford asked if the submittal of the application to the Kansas Housing Resource Commission could be done without the resolution of support. Mr. Forristal responded by stating that the resolution could be submitted after the application deadline. Mr. Forristal stated what he needed from the City Commission regarding the development of the building. Mayor Householter asked if it was staff's recommendation to wait to see what the plan would be. Mr. Schrage responded by stating that waiting would give staff time to put together additional information. Commissioner Davis asked if staff would have enough time to obtain the information needed for the City Commission to give affirmation of the project. Mr. Schrage responded Page 3 1 by stating there would be enough information to determine the percentage but would not have the financial and development plans. Commissioner Blanchard provided his thoughts on approving the affirmation of the Low Income Housing Tax Credits. Commissioner Davis asked if the property owner would need to have a single developer W for the project. Mr. Forristal responded by stating that he would attend the conference call but was not sure if a developer would be present. Mr. Schrage responded by stating that the information submitted was worded by staff and the developer would need to be present for the conference call since conversation would take place regarding the next steps in the application process. Commissioner Blanchard provided information regarding the need for the conference call and additional information prior to approval of a resolution of support or affirmation of the Low Income Housing Tax Credits. Jason Gage, City Manager, provided information regarding the ability to recess into executive session for trade secrets for discussion of the project and clarified that Mr. Forristal would just like the City Commission to provide guidance on their intention for approval of the project. Commissioner Blanchard asked if Mr. Forristal was looking at a rent subsidized housing or loft style housing. Mr. Forristal responded by stating rent subsidized housing. Commissioner Blanchard provided his thoughts on the type of housing currently in downtown Salina and the housing needed in downtown Salina. Mr. Forristal responded by stating that he would need to talk to the developer regarding his concerns. Commissioner Blanchard continued to provide his thoughts on the type of housing and the economic impact in downtown Salina. Commissioner Hardy asked if the vacant lot across from the post office would be used for parking for the Lee Building residents. Mr. Forristal responded by stating no, that is not the intended use of the vacant lot. Mayor Householter provided his thoughts on the development of the property and asked if Mr. Forristal had considered ownership model type housing. Mr. Forristal responded by stating that ownership model type housing may not be the way to go. Commissioner Davis provided his thoughts on the development of the property and the need for additional people in downtown Salina. Mr. Forristal stated that the type of housing was for working class families. Commissioner Blanchard provided information needed to submit the application to the Kansas Housing Resource Commission. Commissioner Blanchard asked when Mr. Forristal purchased the building and if his intentions were to develop the property for Low Income Housing Tax Credits. Mr. Forristal responded by stating that he did not have intentions in the beginning for use of Low Income Housing Tax Credits. Commissioner Blanchard asked if a continuance of the item was needed or if there would be a different item before them in the future on the development. Mr. Gage responded that a different item would be submitted in the future. Page 4 L—J E'i E;� Commissioner Davis stated that the details of the conference call and any other additional information would be helpful in two weeks. Commissioner Crawford and Mayor Householter agreed. Commissioner Blanchard asked for the amount of time needed by staff to put together the Z additional information. Mr. Schrage responded by stating that the conference call should w not take long but it would mostly depend on the amount of information submitted by the developer for staff to review. Commissioner Crawford asked if the matter was in the hands of Mr. Forristal and his developer at this point. Mr. Schrage responded by stating yes. 0 U Commissioner Blanchard provided his thoughts on the potential development. Mr. Gage asked what information would be needed for the January 26, 2015 meeting. Mr. Schrage responded by stating that Kansas Housing Resource Commission would need a completed application from the owner and developer. Mr. Gage asked what information would need to be submitted to the Kansas Housing Resource Commission by the City Commission. Mr. Schrage said nothing would need to be submitted prior to the Resolution of Support by April 1, 2015. Commissioner Hardy asked if the City Commission was asked to do something today that they would not have been asked if the discussion was started at an earlier date. Mr. Schrage responded by stating that there would be time for a preliminary conversation before the developer had to invest the time and money into level of detail and staff could come to the City Commission with a plan and recommendation for the Resolution of Support prior to the developer finalizing the application prior to the deadline. Commissioner Blanchard provided his thoughts on the potential development and the commitment of the City Commission. Mr. Forristal provided information regarding a potential developers attempt to develop the building in the past. Mr. Gage asked if the City Commission would be willing to take an objective look at a plan once it was developed. A conversation ensued between the Commission regarding the development of the building. Commissioner Crawford stated that the City Commission would look at a development plan once it was completed by Mr. Forristal and his developer. The Commission agreed. Mr. Gage stated that there was a consensus for an owner -occupied development if a plan was submitted to the City Commission for review in the future. The Commission agreed. Mr. Gage asked if that consensus was what Mr. Forristal needed today. Mr. Forristal responded by stating that he would not be the person making the final decision, it would be the developers. OTHER BUSINESS Jason Gage, City Manager, provided information regarding the past commission discussion pertaining to the potential decrease in City Commission salary and the action options. Mayor Householter asked if the sixty day waiting period was for potential public comment. Mr. Gage responded by stating yes. Page 5 Commissioner Hardy asked how much the publication of an ordinance or charter ordinance would cost and if it would eat up the savings of the decrease in salaries. Mr. Gage responded by stating that he was unsure of the cost to publish the documents. Greg N Bengtson, City Attorney, noted that an entire charter ordinance would have to be published in the newspaper. Z a Commissioner Davis provided his thoughts on the decrease in City Commission salaries and asked for the reason of the recommended decrease. Commissioner Blanchard responded by stating that it was symbolic and to show appreciation of the City employees. D O 0 Commissioner Davis asked if there would be an option for each Commissioner to voluntarily decide to deduct the money from their check or deduct the salary enough that the money goes into a special fund specifically for the Employee Breakfast. Commissioner Blanchard asked if deducting the money out of the Commissioner's check to be placed into a fund set up for the Employee Breakfast would be easier and a Commissioner could voluntarily decide to make the deduction. Mr. Gage responded by stating that the City has the ability to take deductions out of a paycheck. Commissioner Davis asked if a deduction from a paycheck would be easier than adopting an ordinance or charter ordinance. Mayor Householter noted the need to manage a fund every year. Mr. Gage responded by stating that the deductions are not too big of a deal and it would be simpler to handle it by deducting the money from a check instead of by ordinance or charter ordinance. (9.1) Request for executive session (legal). 15-0012 Moved by Commissioner Crawford, seconded by Commissioner Hardy, 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 5:51 p.m. The City Commission recessed into executive session at 5:41 p.m. and reconvened at 5:51 p.m. No action was taken. 15-0013 Moved by Commissioner Blanchard, seconded by Commissioner Hardy, to extend the current executive session for an additional 9 minutes. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 5:51 p.m. and reconvened at 6:00 p.m. No action was taken. Greg Bengtson, City Attorney, stated that the matter dealt with the earlier recommendation and action taken last week with regard to the petition that Mr. Ray Hruska was pursuing. Since that earlier discussion last week, Legal Counsel consulted with Bond Counsel regarding the petition and Bond Counsel felt that the approval of the resolution was administrative in nature. With that assurance and further consultation from Bond Counsel, Mr. Bengtson's recommendation to the City Commission would be to not go forward at this time with submittal of the petition to the Saline County District Court seeking the determination. Mr. Bengtson went on to talk about the steps needed if a petition was presented with signatures and indicated that the petition would not have the effect on the initiative and referendum as per K.S.A. 12-3013 and would not compel action on the City Commissions part. Mr. Bengtson recommended to the City Commission, if they concur, at Page 6 15-0014 15-0015 15-0016 their direction to defer any action on this matter until further consultation and that there would be no filing of the petition to Saline County District Court, as Legal Counsel was authorized to file last week. Mr. Bengtson stated that the recommendation does not anticipate that the City would ever file a petition initiated by the City, if there were to be a petition presented. Mr. Bengtson recommended at that time the City Commission would acknowledge that it has no effect as an initiative and referendum petition and at that point would be depended upon others to initiate any judicial determination of that status. Jason Gage, City Manager, stated that if a citizen would like to obtain the signatures needed for an initiative and referendum petition, the petition would simply be advisory only. Commissioner Blanchard asked if the item would need to be added to the agenda prior to making a motion. Mr. Bengtson responded by stating the item would need to be added to the agenda. Moved by Commissioner Blanchard, seconded by Commissioner Hardy, to reconsider the motion of item 7.1 of the January 5, 2015 meeting which authorized staff to prepare submittal of a petition to the Saline County District Court relating to the Resolution No. 14-7152 as it amended Section 2 of Resolution No. 13-6988. Aye: (5). Nay: (0). Motion carried. Commissioner Blanchard asked if no action constituted the action would it go back to the original motion. Mr. Bengtson responded by stating that it would be best for a new motion. Mr. Bengtson stated that with the additional information received by Bond Counsel he would recommend that the City Commission not go forward with the submittal of an initiative and referendum petition to Saline County District Court. A conversation ensued between the Commission and Mr. Bengtson regarding the recommended action and the appropriate action. Mr. Gage stated that the reconsideration of the motion would require the Commissioners to vote no if they would like to go back to the original motion made. Mayor Householter called the question to authorize Legal Counsel to prepare a petition to file in Saline County District Court naming Mr. Ray Hruska seeking judgement regarding proposed initiative and referendum petition relating to Resolution No. 14-7152 as it amended Section 2 of Resolution No. 13-6988 Aye: (0). Nay: (5). Motion carried. Moved by Commissioner Crawford, seconded by Commissioner Hardy, 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 6:30 p.m. The City Commission recessed into executive session at 6:20 p.m. and reconvened at 6:30 p.m. No action was taken. ADJOURNMENT Moved by Commissioner Davis, seconded by Commissioner Crawford, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 6:30 p.m. Page 7 11 N LI [SEAL] ATTEST: i Sha di Wicks, CMC, City Clerk e Aaron . Householter, Mayor I Page 8