06-27-2016 Minutes16-0260
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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
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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.
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(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.
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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
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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
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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,
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[SEAL] Karl F: Ryan,Vice-Mayor
ATTEST:
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Shandi Wicks, CMC, City Clerk
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