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01-11-2016 Minutes0 U 16-0004 CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS January 11, 2016 4:00 p.m. The City Commission convened at 3:45 p.m. for Citizens Forum. 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. Those present and comprising a quorum: Mayor Jon R. Blanchard (presiding), Commissioners Kaye Crawford, Trent Davis, Randall Hardy, and Karl Ryan. Also present: Jason Gage, City Manager; Michael Schrage, Deputy City Manager; Greg Bengtson, City Attorney; and Shandi Wicks, City Clerk. AWARDS AND PROCLAMATIONS (3.1) The day of January 18, 2016 as "Dr. Martin Luther King, Jr. Commemoration Day' in the city of Salina. Cash Hollistah read the proclamation and announced upcoming events. (3.2) The day of January 14, 2016 as "Salina Day for Kansas Wesleyan Basketball" in the city of Salina. Chris Fear, Men's Basketball Coach, read the proclamation and announced upcoming events. CITIZEN FORUM Karen Shade, 111 Wisconsin, provided the Commission and staff with a National Citizen Survey and provided information on the survey. Calvin Kelsey, Fire Chief, provided information on achievement of the new ISO rating the Salina Fire Department received (Rating 2) that will take effect in 2016. Jason Gage, City Manager, stated the worst rating was a 10 and the best rating was a 1 and stated a 2 was a top notch rating. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. CONSENT AGENDA (6.1) Approve the minutes of January 4, 2016. (6.2) Approve Resolution No. 16-7311 authorizing the Mayor to execute an acceptance of a Trustee's Deed by John K. Vanier II as Trustee of the John K. Vanier II Trust, donating a tract of real estate to the City as part of the proposed downtown field house project. Moved by Conunissioner Hardy, seconded by Commissioner Davis, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. Commissioner Davis thanked John K. Vanier and the John K. Vanier family for the donation. Page 1 16-0005 16-0006 ADMINISTRATION (7.1) First reading Ordinance No. 16-10818 amending Section 5-25 of the Salina Code to permit consumption of alcoholic liquor at Dean Evans Stadium. Steve Hardesty, Deputy Director of Parks and Recreation, explained the amendment. Commissioner Davis asked which entity would be selling the alcoholic beverage. Mr. Hardesty stated the determination of who would sell the alcoholic beverage had not been determined. Mayor Blanchard asked if special controls would need to be put into place to allow alcoholic beverage. Mr. Hardesty stated Dean Evans Stadium was completely fenced. Mike Schrage, Deputy City Manager, stated staff would establish protocols for the sale of alcoholic beverage if the league decided to come to Salina. Judy Larson, 2201 Ray Avenue, asked where Dean Evans Stadium was located. Mayor Blanchard stated it was located across from the golf Course on Markley Road. Moved by Commissioner Crawford, seconded by Commissioner Ryan, to pass Ordinance No. 16- 10818 amending Section 5-25 of the Salina Code to permit consumption of alcoholic liquor at Dean Evans Stadium on first reading. Aye: (5). Nay: (0). Motion carried. (7.2) Consider accepting the offer to purchase the vacant lot located at 2626 Quail Hollow Drive. Gary Hobbie, Director of Development Services, explained the offer received in the amount of $22,000, the repurposing use of the parcel and action options. Commissioner Hardy asked how the offer compared to surrounding properties. Mr. Hobbie stated the offer was $3,000 to $5,000 lower than the properties in a near subdivision. Mayor Blanchard stated the other lots would have special assessments. Mr. Hobbie stated the other lots would include special assessments and without the special assessments, the lot would be $25,000. Mayor Blanchard asked how the sale of the lot was advertised. Mr. Hobbie stated the ad was posted on the website, department website, newspaper and an email was sent to the developers. Commissioner Davis asked why the $30,000 offer was refused. Mr. Hobbie stated the proposal was refused at the time due to market value. Commissioner Crawford stated if the City of Salina continues to keep the lot, the expenses would continue to grow. Mayor Blanchard stated the other option would be to list the property with a realtor. Mr. Gage stated if the City Commission would decline the offer, the best option would be to list the property through a realtor or broker agency. Moved by Commissioner Hardy, seconded by Commissioner Davis, to decline to accept the offer for 2626 Quail Hollow Drive from Stan Byquist at this time and offer the property for sale through the local realtors association. Page 2 Mayor Blanchard asked what the next step would be to list the property through a realtor. Mr. Gage stated a broker agency would need to be chosen and a list price for the lot would need to be determined. Aye: (4). Nay: (1) Crawford. Motion carried. Mr. Gage stated if the Commission had a preferred realtor agency and a list price, staff would need that information provided to them. Mr. Gage asked if the Commission would like staff to work with a realtor agency and get comparable information and return the item back to the Commission for further action. The Commission concurred. (7.3) Consider accepting a proposal to purchase a vacant lot located at 234 South Phillips Avenue. Gary Hobbie, Director of Development Services, explained the offers received, money invested and action options. Commissioner Davis asked if another individual would have purchased the property would they have to pay for the demolition costs. Mr. Hobbie stated anyone else that would purchase the property would either have to demolish or repair the structures. Commissioner Hardy asked if there were comparable lots for sale in the area. Mr. Hobbie stated the closest comparable was 12 blocks away. Commissioner Ryan asked how large of a house could be put on the lot if Habitat for Humanity got the property. Mr. Hobbie stated the largest house would be approximately 1200 square feet. Mayor Blanchard asked how soon Habitat for Humanity would build on the lot if they were awarded the sale. Mr. Hobbie stated Habitat for Humanity has a shortage of lots and the lot would be built on soon. Commissioner Crawford stated she would like to see the lot go to Habitat for Humanity. A conversation ensued between the Commissioners regarding the sale of the lot to Habitat for Humanity. Jason Gage, City Manager, asked staff for the current value of properties in the area. Mr. Hobbie stated roughly $75,000. Commissioner Davis asked if the Commission had a prerogative to accept the lower bid price. Greg Bengtson, City Attorney, stated the commission could accept the lower bid price. Abner Perney, 101 Overhill Road, stated Habitat for Humanity was currently building the 38th property in Salina and stated the price paid for lots in the past were between $1,000 and $5,000. Mr. Perney stated Habitat for Humanity currently had one lot left to build on. He also stated a house located 4 houses down from this lot was sold at a tax sale a couple years ago for $500.00. Mayor Blanchard stated it was much more advantageous to have a home built on a lot than to have a storage unit or something on it. Mr. Hobbie stated the bid price from Habitat for Humanity was $2,000 not $2,200 as the Page 3 report indicated. Mr. Hobbie stated the item could be postponed to the January 25, 2016 meeting to allow the bidders to provide information on the uses of the lot. Moved by Commissioner Crawford, seconded by Commissioner Hardy, to award the sale of the lot addressed as 234 South Phillips Avenue to Habitat for Humanity in the amount of $2,000 for the repurposing into a residential dwelling and forgiving the demolition costs incurred previously. Aye: (4). Nay: (1) Blanchard. Motion carried. (7.4) Continued discussion of future capital improvements and sales tax. Jason Gage, City Manager, provided additional information pertaining to the future capital improvements, sales tax and election. Commissioner Crawford stated the sales tax in Wichita was lower but the property taxes were higher. Commissioner Crawford asked for clarification on the summary of capital uses and commitments (to date) on streets, bridges, sidewalks and trails. Mr. Gage stated the amount listed was the total amount spent on streets, bridges, sidewalks and trails from 2009 to current. Commissioner Crawford asked if park facility rehab/ replacement could be used for park restrooms. Mr. Gage stated yes. Commissioner Davis asked for clarification on the tax increments. Mr. Gage stated if the increment of .35% was chosen, the total sales tax would be 8.75%. Mayor Blanchard provided his thoughts on the election results. A conversation ensued between the Commission and Mr. Gage regarding the tax increments and future use considerations and assumptions. Mayor Blanchard asked how many communities on the list did not have a special sales tax. Mr. Gage stated there was a cap on the general sales tax and most communities probably had a special sales tax. Jane Anderson, 636 E. Iron Avenue, thanked the Commission for considering the river in the mix and thought the Commission should be cautious on the increase of the sales tax. The Commissioners provided their thoughts on the timing of the election. The Commissioners reached a consensus of a mail -in ballot. Mr. Gage stated the importance of the question may have a lot to do with the turn out of the election. Commissioner Davis asked if the City Commission and the City were limited as to how it advocated for the sale tax. Mr. Gage stated the ability to educate would be rather broad but limited. A conversation ensued between the Commission and Mr. Gage regarding the increments of the tax. Mr. Gage stated staff could draft the ordinance language leaving the tax increment blank and the tax increment could be filled in at the meeting. Page 4 (7.5) Resolution 16-7312 authorizing the Mayor to execute a real estate contract with Charles Monroe Arnold III, in order to acquire property as part of the proposed downtown field house project. Steve Hardesty, Deputy Director of Parks and Recreation, explained the purchase and z contract. a w Commissioner Hardy asked if the site was a gas station in the past. Mr. Hardesty stated it was believed the site was a gas station in the past and the phase I site assessment was L complete. Jason Gage, City Manager, stated that KDHE indicated the tanks were previously removed. U Mayor Blanchard asked if all of the property needed for the field house was now acquired. Mr. Gage stated yes. 16-0008 Moved by Commissioner Davis, seconded by Commissioner Ryan, to adopt Resolution No. 16- 7312 authorizing the Mayor to execute a real estate contract with Charles Monroe Arnold III, in order to acquire property as part of the proposed downtown field house project. Aye: (5). Nay: (0). Motion carried. Greg Bengtson, City Attorney, stated the resolution did not include the lease agreement so a motion authorizing the Mayor to execute the lease agreement would be needed. 16-0009 Moved by Commissioner Davis, seconded by Commissioner Ryan, to authorize the Mayor to execute the lease agreement with Charles Monroe Arnold III. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS None. OTHER BUSINESS 16-0010 Moved by Commissioner Ryan, seconded by Commissioner Hardy, to recess into executive session for 30 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 for the purpose of discussing matters pertaining to non-elected City personnel for the reason that public discussion of the matter would violate the privacy rights of the non-elected personnel involved and reconvene at 6:35 p.m. The City Commission recessed into executive session at 6:05 p.m. and reconvened at 6:35 p.m. No action was taken. 16-0011 Moved by Commissioner Ryan, seconded by Commissioner Davis, to extend the current executive session for an additional 15 minutes. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 6:30 p.m. and reconvened at 6:45 p.m. No action was taken. 16-0012 Moved by Commissioner Ryan, seconded by Commissioner Davis, to extend the current executive session for an additional 15 minutes. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 6:45 p.m. and reconvened at 7:00 p.m. No action was taken. Page 5 16-0013 16-0015 Moved by Commissioner Ryan, seconded by Commissioner Davis, to extend the current executive session for an additional 10 minutes. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 7:00 p.m. and reconvened at 7:10 p.m. No action was taken. Moved by Commissioner Ryan, seconded by Commissioner Davis, to extend the current executive session for an additional 10 minutes. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 7:10 p.m. and reconvened at 7:20 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 7:20 p.m. [SEAL] 0on lanchard, Mayor ATTEST: &PQC Shandi Wicks, CMC, City Clerk Page 6