08-01-2016 Minutesu
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16-0302
V OF SALINA, KANSAS
PULAR MEETING OF THE BOARD OF COMMISSIONERS
ust 1, 2016
p.m.
.ie City Commission convened at 2:30 for Budget (Pay Plan, Fees & CIP) and at 3:45 p.m. for
itizens Forum.
Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107,
-County Building. Roll call was taken followed by the Pledge of Allegiance and a moment of
present and comprising a quorum: Mayor Kaye J. Crawford (presiding), Commissioners Jon
hard, Trent Davis, Randall Hardy, and Karl Ryan.
present: Jason Gage, City Manager; Greg Bengtson, City Attorney; and Shandi.Wicks, City
IAWARDS AND PROCLAMATIONS
None.
ICITIZENS FORUM
Patrick Herrington, 100 S. College, provided comments on the use of special assessments
for residential development.
(PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME
(5.1) Comments on the proposed 2017 Budget.
Mayor Crawford announced that this was an opportunity for citizens to provide comments
on the proposed 2017 Budget.
No comments received.
I CONSENT AGENDA
(6.1) Approve the minutes of July 25, 2016.
Moved by Commissioner Ryan, seconded by Commissioner Davis, to approve the consent agenda
as presented. Aye: (5). Nay: (0). Motion carried.
I ADMINISTRATION
(7.1) First reading Ordinance No. 16-10845 unconditionally approving the issuance of
general obligation bonds by the Salina Airport Authority for the purpose of
financing the cost of certain capital improvements located at the Salina Regional
Airport and Airport Industrial Center.
Greg Bengtson, City Attorney, explained the bond issuance.
Tim Rogers, Salina Airport Authority Executive Director, explained the projects to be
funded by the bonds.
.Commissioner Hardy asked if the north half of Runway 35 was in better condition than the
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south portion. Mr. Rogers stated the south half was slurry sealed six (6) or 7 (seven) years
ago and the slurry seal of the north portion would last approximately three (3) to four (4)
years.
Moved by Commissioner Ryan, seconded by Commissioner Hardy, to pass Ordinance No. 16-
10845 unconditionally approving the issuance of the Authority's general obligation bonds in a
principal amount not to exceed $657,000, excluding costs of issuance and temporary financing
costs, to pay the costs of the project on first reading. Aye: (5). Nay: (0). Motion carried.
(7.2) Consider authorizing the city manager to engage Stifel as the bond underwriter for
STAR Bonds associated with the downtown redevelopment STAR Bond project.
Jason Gage, City Manager, explained the request, qualifications received, interview process
and fiscal impact.
Commissioner Blanchard asked for information on the G-17 rule and for additional
information on the bonds purchased by the developer at (.8%). Mr. Gage stated the
disclosure was to eliminate any future conflicts and stated there was a lot less work on
private bond issuances than investment grade rated bonds.
Commissioner Blanchard asked for additional information on the conflicts of interest
disclosures and if there were any active conflicts of interest at this time. Mr. Gage stated in
bond underwriting there was always an opportunity for bond underwriters to benefit
themselves on the writing of bonds and stated he was not aware of any conflicts of interest.
Commissioner Blanchard also asked when bonds would be taken to public placement
versus private placement. Mr. Gage stated the private placement bonds would not be
backed by the government and the government would have the choice to walk away if the
bonds were not backed by the full faith credit of the City. He continued to state the impact
would be on how much you buy, payment issuance and risk.
A conversation ensued between Commissioner Blanchard and Mr. Gage regarding the
bond placement.
Commissioner Davis asked if there was a binding development agreement with Sahna202O,
Inc. and what the connection was with them on this request. Mr. Gage stated there was not
a binding development agreement with Salina202O, Inc. and it was a courtesy to provide
the information to Salina202O, Inc.
Moved by Commissioner Hardy, seconded by Commissioner Blanchard, to authorize the city
manager to engage Stifel, Nicolaus & Company, Incorporated as the underwriter for the
downtown redevelopment project. Aye: (5). Nay: (0). Motion carried.
DEVELOPMENT BUSINESS
None.
OTHER BUSINESS
Jason Gage, City Manager, provided an update on the request from Bill Fekas. Mr. Gage
stated Saline County approved $750 which was the amount requested by Bill Fekas. He
continued to state he was asked to provide an update to the City Commission on the status
of the Saline County Commission action on the request.
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A conversation ensued between Mr. Gage and the Commission on the request amount,
funding for the current year and last year's dinner.
Mr. Gage stated Rachel Hinde, Community Engagement Coordinator provided Mr. Fekas
with additional options for obtaining funding for the dinner.
Commissioner Blanchard thanked staff and fellow commissioners for considering the
request. He continued to state that he would be in favor of the City of Salina matching the
$750 approved from Saline County.
A conversation ensued between the Commissioners and Mr. Gage on the fund matching.
Mr. Gage stated he could develop an informal letter to Bill Fekas regarding the funding
request and approved amount.
Commissioner Ryan stated he would like for the letter to include that the funding would
not be ongoing.
ADJOURNMENT
Moved by Commissioner Hardy, seconded by Commissioner Ryan, that the regular meeting of the
Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting
adjourned at 4:45 p.m. r, n
[SEAL]
I ATTEST:
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Shan i Wicks, CMC, City Clerk
aye J Cr
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