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06-27-2016 Minutes16-0260 16-0261 CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS June 27, 2016 4:02 p.m. IThe City Commission convened at 2:30 for Streets and Special Assessments and at 3:45 p.m. for Citizens Forum. 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, 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 None. CITIZENS FORUM None. I PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. I CONSENT AGENDA (6.1) Approve the minutes of June 20, 2016. Moved by Commissioner Blanchard, seconded by Commissioner Davis, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. I ADMINISTRATION (7.0) Resolution No. 16-7376 acknowledging receipt by the City of the private support toward the cost of the Downtown Field House project. Jason Gage, City Manager, provided a brief explanation of the project and the funding. He continued to explain the receipt of funds for the private support. Pat Beatty, 204 S. Santa Fe, provided his thoughts on the project and funding and presented the Mayor with checks of the private funds collected for the project. Mayor Crawford thanked the citizens of Salina for the support. Mr. Gage stated in order to have a successful project it was best to have a public/private partnership. Greg Bengtson, City Attorney, explained the resolution. Moved by Commissioner Ryan, seconded by Commissioner Davis, to adopt Resolution No. 16- 7376 acknowledging receipt by the city of a combination of contributed funds received from the Greater Salina Community Foundation (GSCF) and an advance of pledged contributions equal in Page 1 N Z W 0 16-0262 16-0263 total to the 4.5 million dollar ($4.5m) commitment of private support toward the cost of the downtown fieldhouse project and the city's commitment to reimburse the advance of pledged contributions to the extent future payments of pledged contributions are received by the GSCF and remitted to the city, not to exceed in total the amount of the advance of pledged contributions. Commissioner Blanchard asked if there was a list of additional expenses incurred to this point. Michael Schrage, Deputy City Manager, stated the expenses were listed in great detail and were paid for by the City of Salina. Mayor Crawford called the question to approve Resolution No. 16-7376. Aye: (5). Nay: (0). Motion carried. (7.1) Resolution No. 16-7375 authorizing the Mayor to enter in to a contract with Crossland Construction Company, Inc. to construct the Salina Field House. Michael Schrage, Deputy City Manager, explained the project, bids received, add alternates and staff recommendation. Commissioner Davis asked if the divider curtains and netting would be included in the bid. Mr. Schrage stated yes it was included in the bid. Commissioner Blanchard asked for additional information on insulation. Mr. Schrage stated the original insulation that was designed would be the insulation that would be installed in the building. Commissioner Ryan asked how the contractor would complete the project in 250 days when the other contractor's completion time was significantly longer. Ivan Crossland, Crossland Construction CEO, explained the company had a lot of steel crews that could get the building up before winter arrived so the sub -contractors could begin working on the inside. Moved by Commissioner Hardy, seconded by Commissioner Ryan, to adopt Resolution No. 16- 7375 authorizing the Mayor to enter into a contract with Crossland Construction Company, Inc. to construct the Salina Field House facility in the amount of $6,894,000.00 and authorize a 5% construction contingency in the amount of $344,700.00. Aye: (5). Nay: (0). Motion carried. (7.2) Resolution No. 16-7374 authorizing the Mayor to sign a real estate purchase agreement with James J. Brown, in order to acquire the property located at 301 North Tenth Street, Salina, Kansas. Chief Brad Nelson explained the purchase. Commissioner Hardy asked if the building would be razed. Mr. Nelson stated yes. Moved by Commissioner Ryan, seconded by Commissioner Blanchard, to adopt Resolution No. 16-7374 authorizing the Mayor to sign a real estate purchase agreement with James J. Brown, in order to acquire the property located at 301 North Tenth Street, Salina, Kansas. Aye: (5). Nay: (0). Motion carried. (7.3) Resolutions calling for STAR Bond and Tax Increment Financing (TIF) Hearings: (7.3a) Resolution No. 16-7371 establishing the date and time providing for a public hearing to consider adoption of a STAR Bond Project Plan pursuant to K.S.A. 12-17,160 et seq. Page 2 16-0264 16-0265 (7.3b) Resolution No. 16-7372 establishing the date and time of a public hearing to consider adoption of a tax increment project plan pursuant to K.S.A. 12-1770 et seq. Michael Schrage, Deputy City Manager, explained the project plans, district boundaries and action alternatives. Commissioner Blanchard asked if the project plans were the final submitted plans to the State of Kansas. Mr. Schrage stated the project plans had been submitted and the plan would be discussed at the August 22, 2016 public hearing. Jason Gage, City Manager, stated there would be conversations with Oschner, Hare & Hare in the future regarding the plan. Moved by Commissioner Davis, seconded by Commissioner Blanchard, to adopt Resolution No. 16-7371 setting August 22, 2016 as the public hearing date to consider adoption of a STAR Bond Project Plan pursuant to K.S.A. 12-17,160 et seq. Aye: (5). Nay: (0). Motion carried. Moved by Commissioner Davis, seconded by Commissioner Blanchard, to adopt Resolution No. 16-7372 setting August 22, 2016 as the public hearing date to consider adoption of a tax increment Project Plan pursuant to K.S.A. 12-1770 et seq. Aye: (5). Nay: (0). Motion carried. Mr. Gage stated there were additional items that would be ready by the August 22, 2016 hearing date to include the community improvement district and development agreement. Commissioner Ryan recused himself due to a conflict of interest. (7.4) Resolution No. 16-7365 providing for the advisability and authorization related to establishing special improvement district for water, sanitary sewer, street and drainage improvements in River Trail 2nd Addition and authorizing the Mayor to execute an Improvement District Development Agreement between the City of Salina and KC Development, LLC. Dan Stack, City Engineer, explained the district, improvements and agreement. Commissioner Blanchard stated he prided himself on being prepared for items and asked if there was anything new or different regarding the price point of the homes that brought the special assessments from 100% to 75%. Mr. Stack stated the developer had paid costs to improve drainage in the area. Commissioner Blanchard asked if there was a price point for the homes. Mr. Stack stated the homes were close to the levy and would require additional requirements on the basements. Commissioner Blanchard asked if the other portions of the development had special assessments. Mr. Stack stated there was a combination of properties with special assessments and without. Commissioner Davis asked if the special assessments were tax deductible. Mr. Stack stated he was not sure. Page 3 16-0266 116-0267 Commissioner Blanchard asked what the number of vacant lots were currently available. Jason Gage, City Manager, stated the price point would be quite a bit less than the other subdivisions. A conversation ensued between the Commission, Michael Schrage, Deputy City Manager, Mr. Gage and Mr. Stack regarding the price point and special assessments. Kelly Dunn, KC Development, LLC, explained the price point and size of the homes and stated the special assessments could be a tax write off similar to loan payments. Commissioner Hardy asked when the properties would be developed. Mr. Dunn stated three (3) to five (5) years. Greg Bengtson, City Attorney, provided an explanation of the ability to deduct the tax on the special assessments. Moved by Commissioner Davis, seconded by Commissioner Hardy, to adopt Resolution No. 16- 7365 relating to the establishment of a special improvement district for water, sanitary sewer, street and drainage improvements in River Trail 2nd Addition and authorization of the Mayor to execute an Improvement District Development Agreement between the City of Salina and KC Development, LLC. Commissioner Hardy stated he felt the project was somewhat of an infill project and the project deserved special attention. Commissioner Blanchard stated the need to look for affordability and uniqueness in homes and continued to provide his thoughts on the project and the community need. Mayor Crawford called the question. Aye: (3). Nay: (1) Blanchard. Motion carried. Commissioner Ryan returned. (7.5) Resolution No. 16-7377 authorizing the offering for sale of General Obligation Temporary Notes, Series 2016-2, of the City of Salina, Kansas. Michelle Meyer, Director of Finance & Administration, explained the issuances and projects to be funded. Commissioner Blanchard asked for further explanation of the item. Jason Gage, City Manager, stated the temporary notes would bridge the financing during the construction before the bonds are issued. He continued to state there was an opportunity to have a private placement of the temporary notes. Commissioner Blanchard asked if there was zero risk. Mr. Gage stated the risk would be lower because the interest rate would be lower than during an open market rate calling. Michael Schrage, Deputy City Manager, stated the parameters of the agreement were outlined in the item which would keep the risk lower. Moved by Commissioner Ryan, seconded by Commissioner Hardy, to adopt Resolution No. 16- 7377 authorizing the offering for sale of General Obligation Temporary Notes, Series 2016-2, of the Page 4 16-0268 16-0269 City of Salina, Kansas and establish the parameters within which the Mayor is authorized to execute a Note Purchase Agreement subject to said parameters. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS (8.1) Resolution No. 16-7373 authorizing the Mayor to execute a license agreement with USD No. 305 authorizing the placement and construction of a new loading/ unloading space in the Jewell Avenue right-of-way abutting Heusner Elementary School at 1300 Norton Street. Dean Andrew, Director of Planning, explained the request, license agreement and affected utilities. Moved by Commissioner Davis, seconded by Commissioner Ryan, to adopt Resolution No. 16- 7373 authorizing the Mayor to execute a license agreement with USD No. 305 authorizing the placement and construction of a new loading/ unloading space in the Jewell Avenue right-of-way abutting Heusner Elementary School at 1300 Norton Street. Aye: (5). Nay: (0). Motion carried. (8.2) Consider dedication of a public utility easement across a strip of park land connecting Wildcat Circle to the Golden Eagle neighborhood park. Dean Andrew, Director of Planning, explained the easement, affected utilities and action options. Commissioner Hardy asked if the request would obligate the city to provide for any public utility. Mr. Andrew stated yes as it was currently constructed it would be available for any public utility. Moved by Commissioner Davis, seconded by Commissioner Ryan, to authorize the Mayor to execute a public utility easement granting a 10 foot utility easement across the west 10 feet of the park land corridor. Aye: (5). Nay: (0). Motion carried. (8.3) Application No. Z16-3, (filed by the Salina Planning Commission) requesting approval of a text amendment to Section 42-302(40) of the C-4 (Central Business District) regulations to modify the off-street parking requirements for hotels located in the C-4 district. (8.3a) First reading Ordinance No. 16-10842. Dean Andrew, Director of Planning, explained the text amendment and action options. Commissioner Davis asked if the same type of hotel with a restaurant and meeting rooms would be built downtown, how many parking spaces would be required. Mr. Andrew stated the hotel developers would still have to provide a parking plan. Commissioner Hardy asked if the hotel developers had provided comments on the agenda item. Mr. Andrew stated the comments received by staff were in favor of the text amendment. Commissioner Hardy asked if the hotel developer of the Hilton Garden Inn had any comments relating to the parking requirements. Mr. Andrew stated no but the developer had their own number of parking spaces determined. Commissioner Blanchard asked where the remaining people would park. Mr. Andrew Page 5 16-0270 16-0271 stated the text amendment would just be a baseline for the number of parking spaces needed. Commissioner Davis stated his concern for the parking of the vehicles in proximity of the hotel. Mr. Andrew stated the parking could be adjacent to the hotel and under the control of the hotel. A conversation ensued between the Commission and Mr. Andrew regarding the parking. Jason Gage, City Manager, asked if the application was initiated by the Planning Commission. Mr. Andrew stated yes. Mr. Gage stated since the application was initiated by the Planning Commission, the City Commission could postpone the action allowing staff to work with the future hotel developer on the parking. Commissioner Blanchard asked if the city owned a parking lot in close proximity of the hotel, could the parking lot be leased to the hotel owner. Mr. Gage stated a permit could be created for the hotel to allow overnight parking in a city owned lot. A conversation ensued between Mr. Gage, Mr. Andrew and the Commission regarding the text amendment. Michael Schrage, Deputy City Manager, stated the hotel developer was working to acquire additional lots to help with the parking of the proposed hotel. Mr. Gage stated there was a city lot in close proximity of the proposed hotel location. Moved by Commissioner Hardy, seconded by Commissioner Davis, to pass Ordinance No. 16- 10842 requesting approval of a text amendment to Section 42-302(40) of the C-4 (Central Business District) regulations to modify the off-street parking requirements for hotels located in the C-4 district on first reading. Aye: (5). Nay: (0). Motion carried. OTHER BUSINESS Mayor Crawford asked citizens to be careful and be respectful of their neighbors for the 4th of July. Jason Gage, City Manager, stated the level of enforcement would be the same as last year. 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 5:55 p.m. J -7,-U, q., - [SEAL] Karl F: Ryan,Vice-Mayor ATTEST: a ow Shandi Wicks, CMC, City Clerk Page 6