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06-20-2016 Minutes16-0241 16-0242 CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS June 20, 2016 4:02 p.m. The Study Session of the Board of Commissioners was called to order at 2:30 p.m. in Room 107B, City -County Building. Roll call was taken in anticipation of an executive session to be held during study session. Those present and comprising a quorum: Mayor Kaye J. Crawford (presiding), Commissioners Jon Blanchard, 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. Moved by Commissioner Davis, 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 reconvene at 3:05 p.m. The City Commission recessed into executive session at 2:35 p.m. and reconvened at 3:05 p.m. No action was taken. Moved by Commissioner Hardy, seconded by Commissioner Davis, to extend the current executive session for an additional 35 minutes. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 3:05 p.m. and reconvened at 3:40 p.m. No action was taken. The City Commission convened at 3:45 p.m. for Citizens Forum. Commissioner Hardy left the meeting at 3:45 p.m. The Regular meeting of the Board of Commissioners was called to order at 4:02 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 Kaye J. Crawford (presiding), Commissioners Jon Blanchard, Trent Davis and Karl Ryan. Also present: Jason Gage, City Manager; Michael Schrage, Deputy City Manager; Greg Bengtson, City Attorney; and Shandi Wicks, City Clerk. Absent: Commissioner Randall Hardy. AWARDS AND PROCLAMATIONS None. CITIZENS FORUM None. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME Page 1 16-0243 16-0244 (5.1) Public hearing regarding the intent of the City of Salina to issue its Industrial Revenue Bonds to finance the costs of acquiring, constructing and equipping a recreational facility for the benefit of Salina Field House Qualified Low -Income Community Business, Inc., or its Successors and Assigns. (5.1a) Resolution No. 16-7369 a resolution declaring the intent of the City of Salina, Kansas, to issue its Industrial Revenue Bonds in the aggregate amount not to exceed $11,500,000 to finance the costs of acquiring, constructing and equipping a recreational facility for the benefit of Salina Field House Qualified Low -Income Community Business, Inc., or its Successors and Assigns. (5.1b) First reading Ordinance No. 16-10841 authorizing the issuance by the City of Salina, Kansas of not to exceed $11,500,000 aggregate principal amount of Taxable Industrial Revenue Bonds (Salina Field House Qualified Active Low -Income Community Business, Inc. Project), Series 2016, to provide funds to acquire, construct and equip a project for Salina Field House Qualified Active Low -Income Community Business, Inc. and authorizing and approving certain documents and actions in connection with the issuance of said bonds. Mayor Crawford opened the public hearing. Michael Schrage, Deputy City Manager, explained the funding, bonding process, fiscal impact and action options. Commissioner Blanchard asked what the benefit of the Industrial Revenue Bond was. Mr. Schrage stated without the Industrial Revenue Bond, the costs of property tax and sales tax would be significant. Commissioner Blanchard asked if the bids included sales tax. Mr. Schrage stated the bids were conducted with the assumption there would not be sales tax. There being no further comments the public hearing was closed. Moved by Commissioner Ryan, seconded by Commissioner Davis, to adopt Resolution No. 16- 7369 a resolution declaring the intent of the City of Salina, Kansas, to issue its Industrial Revenue Bonds in the aggregate amount not to exceed $11,500,000 to finance the costs of acquiring, constructing and equipping a recreational facility for the benefit of Salina Field House Qualified Low -Income Community Business, Inc., or its Successors and Assigns.. Aye: (4). Nay: (0). Motion carried. Moved by Commissioner Ryan, seconded by Commissioner Davis, to pass Ordinance No. 16-10841 authorizing the issuance by the City of Salina, Kansas of not to exceed $11,500,000 aggregate principal amount of Taxable Industrial Revenue Bonds (Salina Field House Qualified Active Low - Income Community Business, Inc. Project), Series 2016, to provide funds to acquire, construct and equip a project for Salina Field House Qualified Active Low -Income Community Business, Inc. and authorizing and approving certain documents and actions in connection with the issuance of said bonds on first reading. Aye: (4). Nay: (0). Motion carried. (5.2) Public hearing followed by consideration of Resolution Number 16-7370 authorizing the Mayor to execute a certificate authorizing the use of an amount not to exceed $5,500,000 of proceeds of tax-exempt revenue bonds issued by the Page 2 16-0245 16-0246 City of Wichita, Kansas (the "Issuer"), under the authority of K.S.A. 12-1740 et seq., all or a portion of the proceeds of which will be used for the purpose of financing and reimbursing the costs of buildings, building improvements, equipment, furnishings and various other capital expenditures at the existing facilities owned, leased and operated by Presbyterian Manors, Inc. ("PMI") in the State of Kansas, including, roof replacement, renovations of independent living, assistant living, and nursing units, and miscellaneous capital improvements at the campus of PMI located in the City, at 2601 E. Crawford, Salina, Kansas 67401. Mayor Crawford opened the public hearing. Greg Bengtson, City Attorney, explained the bonds, certificate and recommended action. Commissioner Davis asked if there were other cities that PMI facilities were located that would not approve this. Mr. Bengtson stated he did not think a city would not approve the item. There being no further comments the public hearing was closed. Moved by Commissioner Davis, seconded by Commissioner Ryan, to adopt Resolution No. 16- 7370 authorizing the Mayor to execute a certificate authorizing the use of an amount not to exceed $5,500,000 of proceeds of tax-exempt revenue bonds issued by the City of Wichita, Kansas (the "Issuer"), under the authority of K.S.A. 12-1740 et seq., all or a portion of the proceeds of which will be used for the purpose of financing and reimbursing the costs of buildings, building improvements, equipment, furnishings and various other capital expenditures at the existing facilities owned, leased and operated by Presbyterian Manors, Inc. ("PMI") in the State of Kansas, including, roof replacement, renovations of independent living, assistant living, and nursing units, and miscellaneous capital improvements at the campus of PMI located in the City, at 2601 E. Crawford, Salina, Kansas 67401. Aye: (4). Nay: (0). Motion carried. I CONSENT AGENDA (6.1) Approve the minutes of June 13, 2016. Moved by Commissioner Blanchard, seconded by Commissioner Ryan, to approve the consent agenda as presented. Aye: (4). Nay: (0). Motion carried. ADMINISTRATION (7.1) Resolution No. 16-7349 authorizing the Mayor to enter into an agreement with HDR Engineering, Inc. to provide Owner's Representative Services for the South Wellfield and Water Treatment Plant, Project No. 63152. Martha Tasker, Director of Utilities, explained the project, agreement and funding. Commissioner Ryan asked when the decision would be made on whether to use the conventional lime treatment versus the membrane softening. Lorrie Hill, HDR Engineering, stated the decision would be made during the first part of the design phase in the first half of 2017. Commissioner Blanchard asked if the hiring of a private inspector was included in the project cost. Ms. Tasker stated the difference in the project cost and the project budget Page 3 N Z W 0 U 16-0247 16-0248 16-0249 would allow the payment of the private inspector. Commissioner Blanchard asked if the costs for the electrical work would be included in the project amount. Ms. Hill stated a portion of the electrical work would be performed by the city electrical engineer along with HDR Engineering staff. Commissioner Blanchard asked for additional information on the hiring of the contractors. Stan Christopher, HDR Engineering, stated the owner's representative would work with city staff in the hiring of contractors. Jason Gage, City Manager, asked if the design -builder would be chosen based on experience. Mr. Christopher stated yes. Moved by Commissioner Blanchard, seconded by Commissioner Davis, to adopt Resolution No. 16-7349 authorizing the Mayor to enter into an agreement with HDR Engineering, Inc. to provide Owner's Representative Services for the South Wellfield and Water Treatment Plant, Project No. 63152, with a not -to -exceed amount of $1,704,330. Aye: (4). Nay: (0). Motion carried. (7.2) Award of contract for the 2016 Water Main Replacement Project, Project No. 63150. Martha Tasker, Director of Utilities, explained the project, bids received and funding Commissioner Blanchard asked how the budget was established for this project. Ms. Tasker stated the labor costs and piping costs were increasing to cause the project amounts to increase. Commissioner Blanchard asked who the contractor was that performed the work in phase 6 and 7. Ms. Tasker stated Stevens Contractors performed the work in phase 6 and BRB Contractors performed the work in phase 7. Commissioner Blanchard asked if all phases had multiple sites. Ms. Tasker stated yes with the exception of phase 3. Moved by Commissioner Ryan, seconded by Commissioner Davis, to award the contract for the 2016 Water Main Replacements Project, Project No. 63150 to Stevens Contractors, Inc. of Salina, Kansas in the amount of $1,900,220. (Authorized amount with 5% Construction Contingency, $1,995,235). Aye: (4). Nay: (0). Motion carried. (7.3) Consideration of bids for the 2016 Storm Sewer Repair Project, Project No. 63147. Dan Stack, City Engineer, explained the project, bids received and staff recommendation. Commissioner Davis asked if there were any dangers of the high power gas line running through the storm drain. Mr. Stack stated there was some concern but the gas line was incased and had remained within the gas line for many years. Commissioner Blanchard asked if the project was rebid, would everything be bid together. Mr. Stack stated the project would be bid separately in the future. Moved by Commissioner Ryan, seconded by Commissioner Davis, to reject all bids for the 2016 Storm Sewer Repair Project, Project No. 63147and re -bid the project later in 2016. Aye: (4). Nay: (0). Motion carried. Page 4 16-0251 (7.4) Resolution No. 1677367 appointing members to the Salina Fieldhouse Qualified Active Low -Income Community Business. Michael Schrage, Deputy City Manager, explained the appointment of members, the required next steps of the board and action options. Commissioner Hardy joined the meeting at 4:56 p.m. Commissioner Davis asked how there would not be a perception of a conflict of interest. Greg Bengtson, City Attorney, stated the duality of office or role comes up with a board that provides a recommendation to the City Commission. A conversation ensued between Commissioner Davis, Mr. Bengtson and Jason Gage, City Manager, regarding the duality of roles and perception of a conflict of interest. Mr. Schrage stated there was a very strategic discussion on the City Commission serving as the members of the Salina Fieldhouse Qualified Active Low -Income Community Business (QALICB). Commissioner Blanchard asked if the QALICB board would be hearing recommendations from city boards. Gary Anderson, Gilmore & Bell, stated the QALICB structure was drawn by the New Market Tax Credits (NMTC). He continued to state the structure of the NMTC would be owned by the QALICB and rent it back to the City of Salina. Mayor Crawford asked if the city commissioners would change, how would that be handled. Mr. Schrage stated it would be up to the individual members discretion to resign the position on the board for the new commissioner. Moved by Commissioner Blanchard, seconded by Commissioner Hardy, to adopt Resolution No. 16-7367 appointing members to the Salina Fieldhouse Qualified Active Low -Income Community Business. Aye: (5). Nay: (0). Motion carried. (7.5) Resolution No. 16-7368 appointing members to the Salina Fieldhouse Leverage Lender. Michael Schrage, Deputy City Manager, explained the appointment of members, the required next steps of the board and action options. Commissioner Blanchard asked what the board would do. Mr. Schrage stated the board would meet annually and would receive the funds from the New Market Tax Credits. Commissioner Davis asked if the board specified the names of the current Mayor and Vice - Mayor would serve on the board. Mr. Schrage stated the appointment would appoint Mayor Crawford and Vice -Mayor Ryan to the board for a four (4) year term. Moved by Commissioner Davis, seconded by Commissioner Hardy, to adopt Resolution No. 16- 7368 appointing members to the Salina Fieldhouse Leverage Lender. Aye: (5). Nay: (0). Motion carried. Commissioner Blanchard asked when the Greater Salina Community Foundation would appoint members to the board. Mr. Schrage stated he would need to follow-up with the Greater Salina Community Foundation on the date the appointments would be made. (7.6) Home Rule Ordinance to authorize general obligation bonds to construct a Salina Fieldhouse project. (7.6a) First reading Ordinance No. 16-10840. Page 55 (7.6b) Declare an emergency exists to allow first and second reading on the same day. (7.6c) Second reading Ordinance No. 16-10840. N N Z Michael Schrage, Deputy City Manager, explained the bonds, ordinance and action options. LUa Commissioner Blanchard asked if the action was tied to the $7 million dollar amount. Mr. M Schrage stated the approval of the Home Rule Ordinance would need to happen regardless of the number. Gary Anderson, Gilmore & Bell, stated the home rule ordinance would D allow authority of up to $7 million dollars in temporary notes or bonds for the financing of the field house and would give the City the authority to give the bond proceeds to Salina Leverage Lender. A conversation ensued between the Commission, Mr. Anderson and Jason Gage, City Manager regarding the home rule ordinance and the financing amount. 16-0252 Moved by Commissioner Ryan, seconded by Commissioner Davis, to pass Ordinance No. 16-10840 an ordinance of the City of Salina, Kansas, authorizing the construction of a multi -sport athletic complex and the issuance of general obligations bonds of the City to fund a portion of the costs thereof, all pursuant to charter ordinance number 39 of the City and Article 12, Section 5 of the Constitution of the State of Kansas on first reading. Aye: (5). Nay: (0). Motion carried. 16-0253 Moved by Commissioner Ryan, seconded by Commissioner Davis, that the Fieldhouse project schedule is the basis for the compelling public purpose to consider second reading approval of Ordinance No. 16-10840 on the same day as the first reading. Aye: (5). Nay: (0). Motion carried. 116-0254 Moved by Commissioner Ryan, seconded by Commissioner Davis, to adopt Ordinance No. 16- 10840 an ordinance of the City of Salina, Kansas, authorizing the construction of a multi -sport athletic complex and the issuance of general obligations bonds of the City to fund a portion of the costs thereof, all pursuant to charter ordinance number 39 of the City and Article 12, Section 5 of the Constitution of the State of Kansas on second reading. Commissioner Blanchard stated it was a tough vote for him and asked when the private funds would be received. Mr. Gage stated the original project was a $9 million dollar project, the project now was approximately $10.5 million dollars and the remaining private funds would be received prior to the awarding of the bid. He continued to state it would be important to have the financing in place prior to awarding the bid. A roll call vote was taken. Aye: (5) Blanchard, Davis, Hardy, Ryan, Crawford. Nay: (0). Motion carried. (7.7) General Obligation Notes and Bonds, Series 2016-A, 2016-B and 2016-2. (7.7a) Resolution No. 16-7366 authorizing the offering for sale of General Obligation Internal Improvement Bonds, Series 2016-A, General Obligation Refunding Bonds, Series 2016-B, and General Obligation Temporary Notes, Series 2016-2. (7.7b) First reading Ordinance No. 16-10838 authorizing and providing for the issuance of General Obligation Internal Improvement Bonds, Series 2016- A. Page 6 N N Z LUQ. 0 16-0235 U 16-0256 16-0257 16-0258 16-0259 (7.7c) First Reading Ordinance No. 16-10839 authorizing and providing for the issuance of General Obligation Refunding Bonds, Series 2016-B. Michelle Meyer, Director of Finance and Administration, explained the issuances and projects to be funded. Jason Gage, City Manager, asked for clarification on the amount of the 2016-A bonds. Ms. Meyer stated the remaining amount would cover the interest costs and cost of issuance on the temporary notes. Moved by Commissioner Ryan, seconded by Commissioner Davis, to adopt Resolution No. 16- 7366 authorizing the offering for sale of General Obligation Internal Improvement Bonds, Series 2016-A, General Obligation Refunding Bonds, Series 2016-B, and General Obligation Temporary Notes, Series 2016-2. Aye: (5). Nay: (0). Motion carried. Moved by Commissioner Hardy, seconded by Commissioner Davis, to pass Ordinance No. 16- 10838 on first reading. Aye: (5). Nay: (0). Motion carried. Moved by Commissioner Hardy, seconded by Commissioner Davis, to pass Ordinance No. 16- 10839 on first reading. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS None. OTHER BUSINESS Commissioner Blanchard stated he had a conversation with Jason Gage, City Manager, regarding the river renewal project. He would like the City Commission to make a formal request for staff to contact Dana Crawford and Jeff Schumaker to assist with the river renewal project. Jason Gage, City Manager, stated both individuals were very intelligent. Mayor Crawford stated the coordination with the river foundation would be a good idea. The commission reached a consensus for staff to contact Dana Crawford and Jeff Schumaker. (9.1) Request for executive session (real estate/legal). Moved by Commissioner Davis, seconded by Commissioner Ryan, to recess into executive session for 20 minutes to discuss matters pertaining to the acquisition of real estate for the reason that public discussion of the matter would adversely affect the City's position in relation to acquisition of the real estate and reconvene at 6:05 p.m. The City Commission recessed into executive session at 5:45 p.m. and reconvened at 6:05 p.m. No action was taken. ADJOURNMENT Moved by Commissioner Ryan, seconded by Commissioner Davis, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 6:05 p.m. Page 7 [SEAL] ATTEST: D)�� WIQa Shandi Wicks, CMC, City Clerk a e J. aw ord, Mayor Page 8