Loading...
02-16-2016 MinutesCITY OF SALINA, KANSAS SPECIAL MEETING OF THE BOARD OF COMMISSIONERS February 16, 2016 8:30 a.m. N N W The Special Meeting of the Board of Commissioners was called to order at 8:30 a.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, N Kaye J. Crawford, Trent Davis, Randall R. Hardy and Karl Ryan. Also present: Jason A. Gage, City Manager; Michael D. Schrage, Deputy City Manager; Greg Bengtson, City Attorney; and Shandi Wicks, City Clerk. ADMINISTRATION (3.1) Second reading Charter Ordinance No. 39 a charter ordinance exempting the City of Salina, Kansas from the provisions of K.S.A. 13-1024a and providing substitute and additional provisions on the same subject relating to general improvements and the issuance of bonds for the purpose of paying for said improvements; and repealing Charter Ordinance Number 38. Jason Gage, City Manager, stated John Frew, FREW Development, would introduce a project theme and a presentation for the field house project. John Frew, FREW Development, stated the company was the owner's representative for the City of Salina and continued to provide information on the various projects Frew Development has built in various cities across the United States. Mr. Frew provided a brief overview of the project scope. Kerry Newman, SFS Architecture, provided a presentation on the options of the layout for the project. John Frew, FREW Development and Chris Stanton, McCown Gordon Construction, explained the budget for the layout options. Mayor Blanchard asked if the time to convert the court surface for the two (2) options were comparable. Mr. Gage stated the conversion time would vary depending on the layout and court types. Mayor Blanchard requested a 5 minute break at 9:20 a.m. The meeting reconvened at 9:25 a.m. Mayor Blanchard asked for the commissioners' thoughts on the design direction and project funding. A conversation ensued between the Commission and Mr. Gage regarding the layout and the budget. Commissioner Hardy asked who was involved in the initial design. Mr. Gage stated Parks and Recreation staff, SFS Architecture, FREW Development and McCown Gordon Construction. Mayor Blanchard asked if the commissioners were all in favor of the 3 x 3 B option. Commissioner Davis asked if the two (2) plastic courts would have turf on them unless they are needed for basketball. Mr. Gage stated there would be four (4) hardwood courts Page 1 1 and two (2) synthetic courts with the ability to install the turf over the top of the synthetic courts. Commissioner Davis asked if there was a separation between the courts and asked how N much time it would take to convert the court to turf. Mr. Gage stated there would be a Z curtain separating each of the courts and utilizing 4 to 5 people the court could be W converted in a couple hours. Mayor Blanchard asked who the members of the private group were. Mr. Gage stated Brian Richardson was a good part of the group and there were 70 to 80 private stakeholders. 0 Mayor Blanchard stated if there was a gap, it would be helpful to determine the private group in order to have an agreement in the future. Commissioner Ryan asked how much longer it would take to develop the budget. Mr. Newman stated it would take an additional 4 weeks. Commissioner Davis asked if the purchase of the property and the fire lane were included in the 12.5 million dollar project. Mr. Newman stated the property acquisition and the fire lane were included in the project total. Mayor Blanchard asked if the outside of the building would look similar to the Assurance Partners building. Mr. Newman stated the outside of the building had been approved by the Design Review Board and had stone on the lower portion of the building with a metal design on the upper portion of the building. Commissioner Hardy asked about the lighting for the building. Mr. Newman stated there would be natural lighting with panels to reduce the glare of the natural light. Commissioner Davis asked if there was a solid wall between the lobby and the courts. Mr. Newman stated the wall was a combination of both wall and glass. Commissioner Crawford asked why there was a need for 3 courts on the north and why there was a need for the turf. Mr. Gage stated the idea for the turf was a practice space for soccer, baseball and softball. Mayor Blanchard asked about the mezzanine and the enhanced option. Mr. Gage stated he felt the mezzanine should be eliminated and stated there would need to be a closer look at the storage of the materials. Commissioner Crawford stated she was in favor of the larger lobby. Mr. Gage stated there was not a perfect formula to determine the number of people that would be inside the lobby at any given time but felt the expanded lobby would be a benefit. Mayor Blanchard stated the next step was the cost reduction and value engineering. Mr. Gage stated there were a lot of small things that need to be evaluated. Mayor Blanchard stated the project was currently at 12.5 million. Mr. Gage stated yes with contingencies and there could be a consideration of a competitive bid process. Mayor Blanchard asked if the contract with McCown Gordon Construction would determine the guaranteed maximum price. Mr. Gage stated yes but if the commission would like to consider the competitive bid process, the decision would need to be made today. Mayor Blanchard asked if there was a recommendation from staff and the construction manager at risk to go with the competitive bid process versus the guaranteed maximum Page 2 1 price and if the specifications would be the same for either process. Mr. Gage stated the specifications would be the same for both processes. Todd Knight, McCown Gordon Construction, stated McCown Gordon Construction was part of an interview process for N the competitive process of the construction manager at risk process. Mr. Knight stated the N project would be competitively bid and there would be the ability to reduce the cost by the W 50 cost reduction options. Mr. Knight stated McCown Gordon Construction had obtained budget numbers from approximately 20 sub -contractors to help determine the budget for the layout options. Mr. Knight provided information on the differences on the bidding 0 processes. N C Commissioner Davis asked if the construction manager at risk would acquire any of the cost savings. Mr. Knight stated the savings would go to the City. Commissioner Hardy asked if McCown Gordon Construction worked directly with FREW Development on the bid process. Mr. Knight stated FREW Development would be at the bid opening of all of the sub -contractors for the project. Mr. Frew stated FREW Development would not have a role in determining the sub -contractors. Commissioner Davis asked if there was a preference in local contractors. Mr. Knight stated the decision for hiring local contractors would be up to city staff and the Commission. He continued to state the sub -contractors would be determined by the cost they submitted and the types of work they have done in the past. Mr. Gage stated to determine the most competitive process, the use of the competitive bid process would be best. Mayor Blanchard asked if a formal motion would need to be made on the use of the competitive bid process. Mr. Gage stated a consensus on the use of the competitive bid process would be needed today and staff would bring back a formal request at the next meeting. The Commission determined in a consensus to use the competitive bid process. Mr. Gage stated staff would bring back a formal request at the next meeting. Mr. Gage stated the charter ordinance does not in any way determine the budget of the project; staff was trying to avoid encumbering the general fund by allowing the charter ordinance to cover the gap. Mr. Gage also stated information on the availability for the New Market Tax Credits and the STAR Bond District would probably be available at the time of the approval of the project. Commissioner Davis asked if the gap would need to be funded by the private donors and the City of Salina, what type of agreement would need to be developed for the private donors. Mr. Gage stated there would not be a formal agreement for the private donors, and he did not think it was unreasonable to request the private donors to provide additional funding. Commissioner Ryan stated he did not think the private donors would need to be asked to provide additional funding. Commissioner Ryan asked where the charter ordinance amount would need to be if the project was at the budget amount today. Mr. Gage stated $8 million. Mayor Blanchard called for a 5 minute recess at 10:24 a.m. The meeting reconvened at 10:30 a.m. Jim Vint, 1115 Andrew Avenue, provided his thoughts on the field house and urged the Commission to vote no on the second reading of the ordinance. Norman Mannel, 7532 W. Pleasant Hill Road, stated the private funding money needed to Page 3 be acquired first. Mr. Gage stated there was commitment for the private funding. Pat Beatty, 14 Crestview, provided his thoughts on the competitive bid process, New Market Tax Credits and urged the Commission to move to the next step. Ray Hruska, 235 N. Santa Fe, stated there was concern about the donor list. He asked Brian Richardson to provide the donor list and stated the list should be subject to open public records. Mr. Hruska provided his thoughts on the project and the funding. Mayor Blanchard asked if the donor list was available. Mr. Gage stated he did not know if a list was available but reiterated that he stated there were 70 or so stakeholders. Judy Larson, 2801 Ray Avenue, stated she was asked to ask how many cars could be parked at the location. Mr. Gage stated depending on the option chosen, there could be anywhere from 20 to approximately 70 spaces and Assurance Partners has offered their parking lot through an agreement for use for the facility along with additional parking in approximately a block radius. Mayor Blanchard asked how many parking spaces would be needed. Michael Schrage, Deputy City Manager, stated there was not a requirement for parking in the C-4 District. Mr. Gage stated staff felt there was an ability to distribute the cars in a close proximity of the field house. Brian Richardson, 519 S. Santa Fe, thanked the developing team for their time yesterday and felt the stakeholders were in favor of the option chosen today. Mayor Blanchard asked Mr. Richardson if there was a willingness of the stakeholders to provide additional funding. Mr. Richardson stated once the gap was determined, he could take the request to the stakeholders. Commissioner Davis asked if the commission would like to change to a lower amount, could it be approved on second reading today. Greg Bengtson, City Attorney, stated if the amount was equal or a lesser amount, it could be approved on second reading today. Commissioner Ryan stated he would be in favor of approving the ordinance on second reading at $7.5 million. Mr. Bengtson stated the main motion of the second reading should include the section and number for the amount. A conversation ensued between Mayor Blanchard and Mr. Gage regarding the funding of the project and the. gap. Mayor Blanchard asked for a status on the STAR Bond District. Mr. Gage stated the STAR Bond District for Salina would be allowed as long as the budget bill was passed by both chambers and the governor signed the bill. He continued to explain the current issues regarding the STAR Bond Districts and the Kansas Legislature. Monte Shadwick, Saline County Commission Chair, announced the County Commission would have their formal meeting at 11:00 a.m. in the City -County Building, Room 209. Commissioner Davis asked for a status on the New Market Tax Credits. Mr. Schrage stated staff, upon request, provided additional information and would know more in a couple weeks. Mayor Blanchard asked how much money could come out of the New Market Tax Credits. Mr. Schrage stated the top end would be in the $2 million dollar range and if the budget Page 4 N Z W N C U 16-0055 16-0056 k", would remain at $12 million, there would still be a $1 million dollar gap. Commissioner Davis asked if there was a way to prioritize the primary use of the STAR Bond District for the field house. Mr. Gage stated there was flexibility and it would fall to the Commission for administration of the plan. Mayor Blanchard asked if the utility relocation could be recouped through the STAR Bond District. Mr. Gage stated it would be an eligible cost but would be part of the final priorities of the plan. Mayor Blanchard provided his thoughts on the project and stated there was a need for clear leadership for a private partnership to help fund the gap. Mayor Blanchard asked for a status on the downtown development. Mr. Gage stated there would be development agreements attached to the various downtown developments. Trace Walker, 1608 Reece Road, Brookville, Kansas, stated with the action by the Kansas Legislature, it was important to submit the plan to the Kansas Department of Commerce for the STAR Bond District and the legal fees up to today were paid by Salina 2020, Inc. Mr. Walker stated the field house was a big piece of the STAR Bond District and we would not know an answer if it was accepted until the plan was submitted. Mayor Blanchard asked when the application would be submitted for the STAR Bond District. Mr. Gage stated the application was ready to be submitted and an answer would hopefully be received soon. Moved by Commissioner Ryan, seconded by Commissioner Davis, to approve second reading Charter Ordinance No. 39 a charter ordinance exempting the City of Salina, Kansas from the provisions of K.S.A. 13-1024a and providing substitute and additional provisions on the same subject relating to general improvements and the issuance of bonds for the purpose of paying for said improvements; and repealing Charter Ordinance Number 38, and amending Section 2 (4) a maximum of $7,500,000 under project category H. Commissioner Hardy stated he was not comfortable with the $7.5 million but would consider $7 million and would like to amend the motion. Moved by Commissioner Hardy, seconded by Commissioner Davis, to amend the motion to reflect a reduction of the amount of $9,500,000 to $7,000,000. Aye: (5). Nay: (0). Motion carried. Mayor Blanchard restated the motion to approve second reading Charter Ordinance No. 39 a charter ordinance exempting the City of Salina, Kansas from the provisions of K.S.A. 13-1024a and providing substitute and additional provisions on the same subject relating to general improvements and the issuance of bonds for the purpose of paying for said improvements; and repealing Charter Ordinance Number 38, and amending Section 2. (4) a maximum of $7,000,000 under project category H. Commissioner Davis stated he was hoping the discussion would allow the local sub -contractors to bid on the project and stated the gap would be funded by the City of Salina. Mayor Blanchard stated this project was one step of a very publicized and very ambitious plan. He stated he was a strong proponent of downtown and felt the only way downtown was successful was housing in the core and health in the core. He went on to say there was a need to get the Page 5 D 16-0057 16-0058 16-0059 k ages up in the community and the creation of the economic development organization was a mefit to the community. runissioner Crawford stated she hoped the citizens would get on board with the project once building started going up. IAye: (5) Crawford, Davis, Hardy, Ryan, Blanchard. Nay: (0). Motion carried. Mayor Blanchard noted there was a petition period available for a charter ordinance. Greg Bengtson, City Attorney, stated the petition process was a process to conduct an election through the County Election Office upon review by the County Counselor. Mayor Blanchard asked if a packet of information could be put together on the petition process. Mr. Gage stated the County Election Office would be the appropriate office to provide information. Mr. Bengtson stated the sixty days would start after the second publication of the ordinance. Moved by Commissioner Hardy, seconded by Commissioner Davis, to direct staff to work with the design team to move towards the 3 x 3 B option for the Salina Field House. Aye: (5). Nay: (0). Motion carried. Moved by Commissioner Crawford, seconded by Commissioner Davis, to direct staff to work to with the project team to value engineer for the project budget cost and focus on options such as New Market Tax Credits and STAR Bond Districts or any other options. Aye: (5). Nay: (0). Motion carried. Mr. Gage stated if the Commission would like to go through the complete independent sealed bid approach, the Commission could make a motion to direct staff to bring back the approach at a later meeting. A conversation ensued between the Commission, Mr. Gage and Mr. Frew regarding the bid processes. Mr. Knight stated there were benefits to both processes and stated McCown Gordon Construction provided a discount of $75,000 for the overlap of the Bicentennial Center project and the Salina Field House project. Bob Miller, 500 Country Club Road, stated in our market area, there were only a third of the sub- contractors that would bid the CMAR process but more contractors would bid the design, bid, build process. Commissioner Davis asked why the local sub -contractors would not bid the CMAR process. Mr. Miller stated it was a new process that not a lot of contractors were familiar with. Mayor Blanchard thanked everyone who worked on the Bicentennial Center project and the Fire Station No. 1 project and would like to stay with the process that was currently under way. Moved by Commissioner Hardy, seconded by Commissioner Ryan, to direct staff to make provisions to provide for a design, bid, build process approach for the Salina Field House at a future meeting. Aye: (5). Nay: (0). Motion carried. ADJOURNMENT Page 6 ived by Commissioner Davis, seconded by Commissioner Hardy, that the regular meeting of the ird of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting ourned at 12:09 p.m. [SEAL] TTEST: NWO Wicks, CMC, City Clerk ►A dl7f r� Page 7