01-26-2004 MinutesCommission
CITY OF SALINA, KANSAS
REGULAR MEETING OF THE BOARD OF COMMISSIONERS
January 26, 2004
4:00 p.m.
The City Commission convened at 2:30 p.m. in a Study Session for a North Ohio Overpass Major
Project Report. 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.
There were present:
Mayor Alan E. Jilka, Chairman presiding
Commissioner Deborah P. Divine
Commissioner Donnie D. Marrs
Commissioner Monte D. Shadwick
Commissioner Paul G. Webb
comprising a quorum of the Board, also present:
Dennis M. Kissinger, City Manager
Greg Bengtson, City Attorney
Lieu Ann Elsey, City Clerk
Absent: None
CITIZEN FORUM
None.
AWARDS - PROCLAMATIONS
None.
PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME
(5.1) Public hearing on the consideration of application for tax exemption submitted by Turbine
Specialties.
(5.1 a) Resolution No. 04-6035 exempting certain property owned by Cooper Cameron
Corporation, dba Turbine Specialties, located at 1648 W. Magnolia Road from ad valorem
taxation and providing certain terms and conditions.
Commissioner Marrs excused himself from the quorum due to conflict of interest.
Mayor Jilka opened the public hearing.
Dean Andrew, Director of Planning and Community Development, explained that Turbine
Specialties is requesting tax exemption for building additions and improvements in machinery and
equipment for a relocation and expansion of their operation located at 1648 W. Magnolia Road. He
continued to explain that assuming an estimated $2.7 million of capital improvements and the creation
of five new jobs, the applicant would be eligible for a tax exemption of approximately 67 percent
during years one through five and approximately 32 percent for six to ten years. Although the exact
exemption would be determined upon actual capital expenditures and jobs added prior to project
completion. Mr. Andrew then responded to Commissioner Divine regarding the application and the
tax analysis.
Roger Rochel, Manager of Turbine Specialties, commented on the request and that the
exemption would give the company an opportunity to consolidate facilities and give them
opportunities to grow.
There being no further comments, the public hearing was closed.
Commission
Action #
04-6263
04-6264
04-62
Moved by Commissioner Divine, seconded by Commissioner Shadwick, to adopt
Resolution No. 04-6035. Aye: (4). Nay: (0). Abstain: (1) Marrs. Motion carried.
Commissioner Marrs returned.
CONSENT AGENDA
(6.1) Approve the minutes of January 12, 2004.
(6.2) Approve the minutes of January 22, 2004.
Moved by Commissioner Marrs, seconded by Commissioner Webb, tc) approve the consent
agenda as presented. Aye: (5). Nay: (0). Motion carried.
DEVELOPMENT BUSINESS
(7.1) Consider expressions of support for three Housing Credit Tax application being submitted
to the Kansas Housing Resources Corporation.
(7.1a) Resolution No. 04-6036 expressing support for an affordable multi -family
senior housing project to located in the former Roosevelt -Lincoln :Middle School.
Commissioner Shadwick excused himself from the quorum due to conflict of interest.
Dean Andrew, Director of Planning and Community Development, explained that the
Pioneer Group, Inc. has been selected by the USD #305 Board of Education as the redeveloper for the
former Roosevelt -Lincoln Middle School. He continued to explain that it is the developer's plan to
convert the school buildings into affordable independent living apartments for seniors. To assist with
the financing of the building rehabilitation and conversion, the developer plans to submit an
application to KHRC for housing tax credits. Mr. Andrew then noted that staff is recommending that
a Planned Development District be created for the site that would address building setbacks and
parking issues and require final site plan approval by the City Commission.
A discussion followed between the City Commission, City Manager Dennis Kissinger, and
Mr. Andrew pertaining to the necessary infrastructure and prioritizing the importance of the three
applications.
Moved by Commissioner Marrs, seconded by Commissioner Webb, to adopt Resolution
No. 04-6036. Aye: (4). Nay: (0). Abstain: (1) Shadwick. Motion carried.
Commissioner Shadwick returned.
(7.1b) Resolution No. 04-6037 expressing support for additional affordable multi-
family apartment units to be located on a 7.47 acre site of South Ohio Street.
Dean Andrew, Director of Planning and Community Development, explained that
Overland Ventures, L.L.C. is planning on submitting an application to KHRC for housing tax credits
for Phase II of their housing project. Mr. Andrew continued to explain that: Phase H of the project
would consist of the new construction of 48 rent assisted two and three bedroom apartments on the
southern portion of the vacant tract directly south of the First Southern Baptist Church on South Ohio
Street. Mr. Andrew also noted that any award of tax credits would be contingent on the construction
and lease up of the 48 units in Phase I.
Brett Johnson, representing Overland Ventures, L.L.C., commented on the project and the
conditions of the award of tax credits. Mr. Johnson also commented on the competition that would
be faced between his application and the application that would be submitted for the development of
Magnolia Commons, he also noted that their application would not be in competition with the
Roosevelt -Lincoln project because it was for senior housing.
Mr. Johnson then responded to Commissioner Divine and Commissioner Marrs regarding
the tax credit competition and building plans in Phase I and 11.
Commission
Action #i
04-6266
04-6267
04-62
Moved by Commissioner Divine, seconded by Commissioner Webb., to adopt Resolution
No. 04-6037. Aye: (5). Nay: (0). Motion carried.
(7.1 c) Consider approval of a resolution expressing support for the development of
Magnolia Commons, a proposed multi -family housing project to be; located on the west
side of I-135, south of Magnolia Road (Resolution to be numbered 04-6038).
Dean Andrew, Director of Planning and Community Development, explained that the Nye
Development, L.L.C. has submitted a 2004 application to the State of Kansas for housing tax credits
for an affordable housing project. This project would consist of construction of 100 units of
affordable tax credit housing for individuals and families, and 100 market rate apartments. Mr.
Andrew continued to explain that although staff is supportive of efforts to develop additional good
quality affordable multi -family housing, there are serious reservations about the; selection of the site,
noting the lack of water and sanitary sewer infrastructure to serve the development. If the 15 -acres
were the only tract developed initially, the remaining large portion of the utility infrastructure cost
would have to be paid for and financed by the City for an unknown period of time until further
development occurs. It has been the City's position since completion of the Magnolia/I-135
interchange that any development west of the interstate in the proposed area must have significant
"critical mass" to justify the City's upfront infrastructure investment.
City Manager Dennis Kissinger, Director of Public Works Shawn O'Leary, and Mr.
Andrew then responded to questions from the City Commission regarding infrastructure, the
resolution of conditional support, and the land use plan for the area.
Gus Bogina, representing Nye Development, L.L.C., commented on their request,
expressing the need of the infrastructure for development, and meeting the "critical mass".
Moved by Commissioner Divine, seconded by Commissioner Shadwick, to adopt
Resolution No. 04-6038 expressing conditional support for an affordable multi -family housing project
to be located south of Magnolia Road on the west side of Interstate 135. Aye: (4). Nay: (1) Marrs.
Motion carried.
Moved by Commissioner Divine, seconded by Commissioner Webb, that the application
submitted by Nye Development be prioritized second to the applications submitted by Overland
Ventures, L.L.C., due to the City Commission expressing their conditional support for the project.
Mr. Kissinger noted that staff would send a cover letter to the State of Kansas stating their
position and express the importance of the senior housing project. Mr. Kissinger clarified that no
motion was necessary.
Motion withdrawn.
ADMINISTRATION
(8.1) Approval of the 2004 Special Parks and Recreation Fund Capital Improvement Program.
Steve Snyder, Director of Parks and Recreation, explained that the Special Parks and
Recreation Fund is generated from taxes collected on sales of alcohol at the local level. He then
summarized the projects and purchases to include athletic field improvements, Lakewood Discovery
Center projects, Centennial and Hawthorne Spray Ground improvements, improve playground
surfacing, and additional building projects and equipment purchases. Mr. Snyder also responded to
Mayor Jilka and Commissioner Webb pertaining to the Memorial Hall wall repairs and replacement
of panic door hardware at the Friendship Center.
Moved by Commissioner Shadwick, seconded by Commissioner Webb, to approve the
2004 Special Parks and Recreation Capital Improvement Program. Aye: (5). Nay: (0). Motion
carried.
(8.2) Approval of Supplemental Agreement No. 3 for final design services for the North Ninth
Street Bridge Project No. 01-1323.
Brad Johnson, City Engineer, explained the project, project funding, and the agreement.
Commission
Action #
�o�=o�da�ea5a��a
04-6269
04-6270
A discussion followed between Commissioner Marrs, Director of Public Works Shawn
O'Leary, and Mr. Johnson regarding aesthetic enhancements design costs.
Troy Eisenbraun, Wilson & Company, responded to Commissioner Marrs' concerns
regarding aesthetic enhancement design costs and previous agreements that included some of these
costs.
Moved by Commissioner Divine, seconded by Commissioner Shadwick, to approve
Supplemental Agreement No. 3 for final design services for the North Ninth Street Bridge Project No.
01-1323 with Wilson & Company in the amount of $27,420. Aye: (4). Nay: (1) Marrs. Motion
carried.
(8.3) Resolution No. 04-6034 setting March 15, 2003 as a date for a public hearing to consider
whether certain structures shall be condemned and ordered repaired or demolished.
Michael Morgan, Deputy City Manager, outlined the process and read the properties listed.
Mr. Morgan then responded to Commissioner Divine on the amount of time staff works with the
property owners prior to being placed on this list.
Moved by Commissioner Shadwick, seconded by Commissioner Divine, to adopt
Resolution No. 04-6034. Aye: (5). Nay: (0). Motion carried.
(8.4) Discussion by City Commission on potential sales tax renewal/extension issues.
All Commissioners had a consensus pertaining to the special election on the election date
of March 16, 2004, the rate of a quarter cent, and the rate imposed starting on July 1, 2004 through
June 30, 2010.
Mayor Jilka commented that it would be irresponsible not to request an extension of the
sales tax, due to state cuts. Also to resist the urge to expand the responsibility of local government
where not already involved. Mayor Jilka proposed revenue from the tax be divided with five percent
going to the Smart Start Program, ten percent to economic development, 15 percent to debt service
on the North Ohio Overpass project, and the remaining 70 percent to capital improvement projects.
Commissioner Shadwick noted his concerns on funding ongoing programs and favors
funding capital improvement projects.
Dennis Kissinger, City Manager, then clarified at the request of Commissioner Shadwick
that the Smart Start program would need approximately $85,000 annually for three years, with
matching funds from the state.
Commissioner Webb noted the City has postponed some capital improvement projects due
to lack of state funds and the revenues should not fund ongoing programs. He does not wish to
obligate future commissions.
Commissioner Marrs concurred with Commissioners Shadwick and Webb on the ongoing
program issue and felt that 87.5% should fund capital improvement projects and 12.5% to fund
economic development.
A discussion followed between Commissioner Shadwick and Commissioner Marrs
regarding agencies approaching the Commission for funding.
Commissioner Divine commented that there is a need for the majority of the revenue
generated to go to capital improvement projects. She noted that the City needs a better way of
handling program requests and setting up a formalized process. She also expressed hesitancy in
provide funding for ongoing programs and suggested that 75 percent of the revenue would go to
capital improvement projects and the other 25 percent would help fund worthy projects, including
economic development.
A discussion followed between Commissioner Marrs, Commissioner Divine, and Mayor
Jilka regarding the percentage breakdown proposed by each and funding of other projects, setting up
a reserve, requirements of spending funds, and allowance of Commission flexibility.
Commission
Action #
04-627
Dennis Kissinger, City Manager, commented on different models used by other cites to
determine the use of the funds, that would allow flexibility and annual decision making.
A discussion followed between Commissioner Marrs and Mr. Kissinger regarding the
reduction of the mill levy, property tax stabilization, and debt service to the North Ohio Overpass
prod ect.
Commissioner Webb noted that needs have been identified and the public needs to be
aware of what the revenue is going to fund. Commissioner Webb suggested that 87.5% of the revenue
be used for capital improvement projects and 12.5% for economic development.
Commissioner Divine commented on the need for economic development, and also the
need for more flexibility on an annual basis to determine the non -capital improvement portion.
Mr. Kissinger stated that other cities have a sales tax fund for a variety of uses such as
capital improvement projects, human services, economic development, and parks and recreation.
These funds are not necessarily locked into specific projects and issues.
A discussion followed between members of the Commission regarding economic
development and setting up an advisory committee.
A discussion then followed between Mayor Jilka, Commissioner Divine, Commissioner
Shadwick, and Mr. Kissinger regarding funding of the Smart Start program, and the possibility of
creating an advisory committee to hear requests.
Mr. Kissinger gave suggestions on the wording of the ballot.
Commissioner Shadwick voiced his concerns regarding the use of the percentages and
would like to see funds to be used by the City Commissions discretion.
Mr. Kissinger suggested that staff could draft ordinances with the C'ommission's concerns
and proposed breakdowns and give the Commission the opportunity to decide next week.
(8.5) Request for Executive Session (personnel).
Moved by Commissioner Shadwick, seconded by Commissioner Webb, to recess into
executive session for 15 minutes to discuss a matter pertaining to non -elected city personnel for the
reason that public discussion of the matter would violate the privacy rights of the non -elected city
personnel involved; and reconvene at 6:04 p.m.
taken.
The City Commission recessed at 5:49 p.m. and reconvened at 6:04 p.m. No action was
None.
OTHER BUSINESS
ADJOURNMENT
04-627 Moved by Commissioner Divine, seconded by Commissioner Webb, that the Regular
Meeting of the Board of Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The
meeting adjourned at 6:04 p.m.
(IL
Alan E. Jilka, Ma; r
[SEAL]
qATEST:
u Ann Elsey, City C rk