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02-12-2018 Minutes CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS February 12,2018 4:00 p.m. The City Commission convened at 2:30 p.m. for the Sanitation Automation and Recycling and at 3:45 p.m. for Citizens Forum. a The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City-County Building. Roll call was taken followed by the Pledge of Allegiance and a moment of gsilence. Those present and comprising a quorum: Mayor Karl F. Ryan (presiding), Commissioners Trent Davis,Joe Hay,Jr., Melissa Rose Hodges, and Mike Hoppock. Also present: Jason Gage, City Manager; Michael Schrage, Deputy City Manager; Greg Bengtson, City Attorney; and Shandi Wicks, City Clerk. AWARDS AND PROCLAMATIONS (3.1) The week of February 18 through February 24, 2018 as "Engineers Week" in the city of Salina. Karla Waters, P.E., President of Smoky Valley Chapter of Kansas Society of Professional Engineers and Civil Engineer for Schwab Eaton, read the proclamation and announced associated events. (3.2) The month of February, 2018 as "Teen Dating Violence Awareness Month" in the city of Salina. Courtney Train, DVACK Youth Advocate Mentor, read the proclamation and announced associated events. CITIZENS FORUM Patrick Harrington, 730 Manchester, provided his thoughts on housing, special assessments and the future of the community. Tyler Paulson,837 S. Santa Fe, member of the Board of Directors for Salina Downtown, Inc., thanked the City Commission for the support of downtown Salina and expressed some concern on the events held at the Salina Fieldhouse and the affect the streetscape project would have on the businesses downtown. He continued by asking that there be strong plans for the merchants downtown during the downtown streetscape project. Jason Gage, City Manager, stated the Fifth Street parking was included as part of the development agreement and it would be some time in the future before the parking lot could be constructed. He continued by stating that the property would have to be acquired by the City of Salina after the asbestos removal report was completed. He stated the parking lot could probably not be constructed prior to commencement of the downtown streetscape project. Jim Kowach, Director of Public Works, stated bids for the downtown streetscape project and downtown waterline project would be opened on Thursday, February 22, 2018 and it would be the first part of April before the project would begin. A conversation ensued between Mr. Gage and Mr. Kowach regarding the phasing of the downtown streetscape and downtown waterline projects and the impact the projects would have on the businesses in downtown Salina. Page I Commissioner Davis asked if the Fifth Street parking lot would be available for purchase by the City of Salina prior to the start of the downtown streetscape project. Mr. Gage stated the City of Salina would be able to acquire the parking lot but the construction of the parking lot would probably not begin before the downtown streetscape project would commence. z Judy Larson, Salina, Kansas, stated her concern of the animals outside during the cold Ts weather days and asked the citizens to provide shelter to the animals that were outside. Doug McKinney, North Central Regional Planning Commission, stated the Community Development Block Grant funding was approved for the Salina Depot Building located at 356 North Santa Fe. He continued by stating that a planning and design project application was approved by the U.S. Department of Commerce for the Kansas State University- Polytechnic unmanned aircraft program. Jon Blanchard, 1117 State Street, provided his thoughts on the special assessment policy and allowing individuals in the community with experience to participate in the discussion. He also provided his thoughts on the seating arrangement of the City Commissioners. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME (5.1) HPSA, LLC. North Ninth Community Improvement District(CID). (5.1a) Public Hearing to consider application for Industrial Revenue Bonds. (5.1b) Second reading Ordinance No. 17-10911 establishing the HPSA North Ninth Street Community Improvement District. (5.1c) Resolution No. 18-7527 authorizing the mayor to execute a Community Improvement District Development Agreement with HPSA, LLC. (5.1d) Resolution No. 18-7528 Resolution of Intent to issue Industrial Revenue Bonds to finance the costs of acquiring, constructing and equipping a commercial hotel project for the benefit of HPSA, LLC. (5.1e) First reading Ordinance No. 18-10924 authorizing the issuance of Industrial Revenue Bonds for the purpose of providing funds to pay the cost of acquiring, purchasing, constructing, installing, furnishing and equipping commercial hotel facilities for the benefit of HPSA, LLC. Mayor Ryan opened the public hearing. Michael Schrage, Deputy City Manager, explained the district, eligible use of funds, funding sources, financing alternatives, development agreement, Industrial Revenue Bond (IRB) financing request, fiscal impact and action options. Commissioner Davis asked if there was precedence for the use of Industrial Revenue Bonds (IRS's) for hotels. Mr. Schrage stated community improvement districts were used in the past for hotels but he was not aware of the history in using IRB's for hotels. He continued to state the location was blighted which was a code enforcement issue. Jason Gage, City Manager, stated the property was located within the floodway and would be a large challenge for development. He continued by stating the property was an uneven playing field due to the property being in the floodway. Page 2 Commissioner Davis asked if there was an estimate of sales tax revenue the City of Salina would lose on the project. Mr. Schrage stated the sales tax numbers would not go up from this project but it would not go down either. A conversation ensued between Commissioner Davis, Mr. Schrage and Mr. Gage regarding sales tax revenue lost from the project. E w Greg Bengtson, City Attorney, explained the State of Kansas Industrial Revenue Bond policy and the ownership listing of the property. N - Commissioner Hoppock provided his thoughts on the project and property tax generated 0 for the property. U Commissioner Hodges asked how long the property tax exemption would be in place. Mr. Schrage stated ten (10) years, 50% for the first five (5) years and 25% for the last five (5) years. Commissioner Hodges asked what the City of Salina portion of the property taxes would be. Mr. Schrage stated the City of Salina portion would be roughly $156,300. A conversation continued to ensue between the Commission and Mr. Schrage regarding the sales tax exemption and property tax exemption. Commissioner Hodges asked if a study session could be done for review of economic incentives and provided her thoughts on IRB's for sales tax exemptions. Mr. Gage provided information on the creation of a policy relating to economic incentives. Commissioner Hodges provided her thoughts on the request. Mr. Gage provided his 1 thoughts on future requests similar to this request. Commissioner Hoppock provided his thoughts on the request and the need for a future study session. Commissioner Hodges asked if the comprehensive plan would be amended to include the area of change for the property. Mr. Schrage stated the property was on the list of amendments to the comprehensive plan to be completed in the future. Commissioner Hodges asked for a list of economic incentives that have been used in the past to include community improvement districts, industrial revenue bonds, tax increment financing and neighborhood revitalization plan properties. Mr. Gage stated staff could put together a list for the city commissioners. A conversation ensued between the Commission, Mr. Schrage and Mr. Gage regarding the economic impact of the project in the community. Lois Christensen, 2317 Belmont, provided her thoughts on the project and asked why an entity would want to purchase a property within the floodway. Mr. Gage stated there was no control of the water flow and stated the property owner had contacted a highly qualified engineer that assisted the owner in developing a plan to redevelop the property. Dave Bieberly, Bierberly Architects, stated the property owner was concerned that without the IRB's he would be required to have additional financing. There being no further comments the public hearing was closed. 18-0041 Moved by Commissioner Davis, seconded by Commissioner Hodges, to adopt Ordinance No. 17- 10911 establishing the HPSA North Ninth Street Community Improvement District on second Page 3 reading. A roll call vote was taken. Aye: (5) Davis, Hay, Hodges, Hoppock, Ryan. Nay: (0). Motion carried. 18-0042 Moved by Commissioner Hodges, seconded by Commissioner Hay, to adopt Resolution No. 18- 7527 authorizing the mayor to execute a Community Improvement District Development Agreement with HPSA, LLC. Aye: (5). Nay: (0). Motion carried. 18-0043 Moved by Commissioner Hoppock, seconded by Commissioner Hay, to adopt Resolution No. 18- 1'1 7528 Resolution of Intent to issue Industrial Revenue Bonds to finance the costs of acquiring, constructing and equipping a commercial hotel project for the benefit of HPSA, LLC. Aye: (4). Nay: (1) Hodges. Motion carried. 18-0044 Moved by Commissioner Hay, seconded by Commissioner Hoppock, to pass Ordinance No. 18- 10924 authorizing the issuance of Industrial Revenue Bonds for the purpose of providing funds to pay the cost of acquiring, purchasing, constructing, installing, furnishing and equipping commercial hotel facilities for the benefit of HPSA, LLC on first reading. Commissioner Davis asked for clarification on the funding of the industrial revenue bonds. Mr. Schrage stated the language in the resolution and ordinance were prepared by bond counsel and the IRB's would be to finance the cost of acquiring, constructing and equipping the project. Mayor Ryan called the question to pass Ordinance No. 18-10924 authorizing the issuance of Industrial Revenue Bonds for the purpose of providing funds to pay the cost of acquiring, purchasing, constructing, installing, furnishing and equipping commercial hotel facilities for the benefit of HPSA, LLC on first reading. Aye: (4). Nay: (1) Hodges. Motion carried. (5.2) Redevelopment of Downtown. (5.2a) Public Hearing to consider applications for Industrial Revenue Bonds for the Homewood Suites Hotel, The Alley family entertainment complex and Old Chicago Restaurant. (5.2b) First reading Ordinance No. 18-10921 authorizing the issuance of Industrial Revenue Bonds for the purpose of providing funds to pay the cost of acquiring, purchasing, constructing, installing and equipping commercial hotel facilities for the benefit of Lighthouse Properties, III, Inc. (5.2c) First reading Ordinance No. 18-10922 authorizing the issuance of Industrial Revenue Bonds for the purpose of providing funds to pay the cost of acquiring, purchasing, constructing, installing, furnishing and equipping a commercial facility for the benefit of FIB, Inc. (5.2d) First reading Ordinance No. 18-10923 authorizing the issuance of Industrial Revenue Bonds for the purpose of providing funds to pay the cost of acquiring, purchasing, constructing, installing, furnishing and equipping a commercial facility for the benefit of Samys OC, LLC. Michael Schrage, Deputy City Manager, explained the request, Industrial Revenue Bond (IRB) financing, IRB procedural steps, fiscal impact and action options. Commissioner Hoppock asked that the public hearings be separated due to a conflict of interest for the Lighthouse Properties, III, Inc. Homewood Suites Hotel agenda item. Page 4 Commissioner Davis asked for the but/for on the project. Jason Gage, City Manager, stated the concepts of the project had always been included in the development agreement and were there from the beginning of the redevelopment of downtown Salina. A conversation ensued between the Commission, Mr. Gage and Mr. Schrage regarding the past actions on the resolution of intent for industrial revenue bonds and the approved W development agreement. Ta Commissioner Davis asked if the sales tax savings would be recorded so in the future it ig 1-6 would be known as a city municipality contribution. Mr. Gage stated yes, staff could visit 79, with bond counsel to get the needed information to keep as a record. 8 Commissioner Hodges provided her thoughts on the redevelopment of downtown Salina, the development agreement and the industrial revenue bonds for the downtown projects. Commissioner Davis asked if the revenue projections were made for the future years to consider the issuance of industrial revenue bonds. Mr. Gage stated the revenue projections were based on the income projections based on retail activity with the industrial revenue bonds being issued. Commissioner Hoppock provided information he received from the Ethics Commission on conflicts of interest regarding past clients he has served at his business. Commissioner Hoppock recused himself due to a conflict of interest for the Lighthouse Properties, III, Inc., Homewood Suites Hotel project. Mayor Ryan opened the public hearing for the Lighthouse Properties, III, Inc., Homewood Suites Hotel. There being no further comments the public hearing was closed. 18-0045 Moved by Commissioner Hay, seconded by Commissioner Davis, to pass Ordinance No. 18-10921 authorizing the issuance of Industrial Revenue Bonds for the purpose of providing funds to pay the cost of acquiring, purchasing, constructing, installing and equipping commercial hotel facilities for the benefit of Lighthouse Properties, III, Inc. on first reading. Aye: (3). Nay: (1) Hodges. Motion carried. Commissioner Hoppock returned to the meeting. Mayor Ryan opened the public hearing for FIB, LLC, The Alley Family Entertainment Complex. There being no further comments the public hearing was closed. 18-0046 Moved by Commissioner Hay, seconded by Commissioner Davis, to pass Ordinance No. 18-10922 authorizing the issuance of Industrial Revenue Bonds for the purpose of providing funds to pay the cost of acquiring, purchasing, constructing, installing, furnishing and equipping a commercial facility for the benefit of FIB, Inc. on first reading. Aye: (4). Nay: (1) Hodges. Motion carried. Mayor Ryan opened the public hearing for the Samys OC, LLC,Old Chicago. There being no further comments the public hearing was closed. 18-0047 Moved by Commissioner Hoppock, seconded by Commissioner Hay, to pass Ordinance No. 18- 10923 authorizing the issuance of Industrial Revenue Bonds for the purpose of providing funds to pay the cost of acquiring, purchasing, constructing, installing, furnishing and equipping a Page 5 commercial facility for the benefit of Samys OC, LLC. on first reading. Aye: (4). Nay: (1) Hodges. Motion carried. The City Commission recessed at 6:05 p.m. for a 5 minute break. The meeting resumed at 6:10 p.m. E CONSENT AGENDA a °__ (6.1) Approve the minutes of February 5, 2018. y B (6.2) Approve Resolution No. 18-7526 appointing members to the Library Board and Salina Airport Authority. a U (6.3)' Award contract for the 2018 Bituminous Seal, Project No. 80006, to Circle C Paving and Construction, LLC, of Goddard in the amount of $175,000, with no additional construction contingency. (6.4) Approve Resolution No. 18-7521 authorizing the city manager to enter into an agreement with IXP Corporation for crime analyst services. (6.5) Authorize the Mayor to execute a public utility easement granting a 20 foot utility easement across the north 20 foot of a public parking lot located on Lot 148 on Fifth Street in the Original Town of Salina. Commissioner Hodges requested that Item 6.1 and 6.4 be removed from the consent agenda. Commissioner Hoppock requested that Item 6.5 be removed from the consent agenda. Commissioner Davis stated that Lisa Mahler and Judy Arpin were appointed to the Library Board and Troy Vancil and Kristin Gunn were appointed to the Salina Airport Authority Board. (6.1) Approve the minutes of February 5, 2018. Commissioner Hodges requested that comments made by Mayor Ryan during citizen's forum at the February 5, 2018 meeting be read into the record of the February 5, 2018 minutes. Mayor Ryan asked how that would be handled. Jason Gage, City Manager, stated he would have to ask the city attorney for the protocol to add the comments. Greg Bengtson, City Attorney, stated it would be the choice of the commission to include the comments and that it would be best to have staff verify the record. Mr. Gage stated the City Clerk's office could verify the comments provided by Commissioner Hodges to include in the record. Commissioner Hoppock and Commissioner Hay stated they would leave it up to Mayor Ryan if the comments should be included. Mayor Ryan stated he was in favor of including the comments within the minutes of February 5, 2018. 18-0048 Moved by Commissioner Hodges, seconded by Commissioner Davis, to approve the minutes of February 5, 2018 including the comments of Mayor Ryan. Aye: (5). Nay: (0). Motion carried. (6.2) Approve Resolution No. 18-7526 appointing members to the Library Board and Salina Airport Authority. 18-0049 Moved by Commissioner Hoppock, seconded by Commissioner Hay, to approve Resolution No. 18-7526 appointing members to the Library Board and Salina Airport Authority. Aye: (5). Nay: (0). Motion carried. Page 6 (6.3) Award contract for the 2018 Bituminous Seal, Project No. 80006, to Circle C Paving and Construction, LLC, of Goddard in the amount of $175,000, with no additional construction contingency. 18-0050 Moved by Commissioner Davis, seconded by Commissioner Hoppock, to award contract for the 2018 Bituminous Seal, Project No. 80006, to Circle C Paving and Construction, LLC, of Goddard in the amount of $175,000, with no additional construction contingency. Aye: (5). Nay: (0). Motion z carried. (6.4) Approve Resolution No. 18-7521 authorizing the city manager to enter into an agreement with IXP Corporation for crime analyst services. Commissioner Hodges asked how long it had been since the position was filled. Sean Morton, Deputy Police Chief, stated it had been a couple years since the position was filled. Commissioner Hodges asked if IPX Corporation would have an employee in town. Mr. Morton stated the employee would be working from Salina. Commissioner Hay asked if the Saline County Sheriff's office had a crime analyst on staff. Deputy Chief Morton stated he was not aware if the Saline County Sheriff's office had a crime analyst on staff. 18-0051 Moved by Commissioner Hodges, seconded by Commissioner Hay, to adopt Resolution No. 18- 7521 authorizing the city manager to enter into an agreement with IXP Corporation for crime analyst services. Aye: (5). Nay: (0). Motion carried. (6.5) Authorize the Mayor to execute a public utility easement granting a 20 foot utility easement across the north 20 foot of a public parking lot located on Lot 148 on Fifth Street in the Original Town of Salina. Commissioner Hoppock stated he asked for the item to be removed from the consent agenda due to a conflict of interest. Commissioner Hoppock recused himself due to a conflict of interest. 18-0052 Moved by Commissioner Hay, seconded by Commissioner Hodges, to authorize the Mayor to execute a public utility easement granting a 20 foot utility easement across the north 20 foot of a public parking lot located on Lot 148 on Fifth Street in the Original Town of Salina. Aye: (4). Nay: (0). Motion carried. Commissioner Hoppock returned to the meeting. ADMINISTRATION (7.1) Second reading Ordinance No. 18-10917 approving an amendment to an existing Planned Development District to allow a duplex to be converted into three (3) living units on property legally described as Lot 3, Block 1 in the Tolle Subdivision in the city of Salina, Saline County, Kansas and is addressed as 2097-2099 Hageman Avenue. Mayor Ryan noted that Ordinance No. 18-10917 was passed on first reading on January 22, 2018 and since that time no comments have been received. 18-0053 Moved by Commissioner Hodges, seconded by Commissioner Hay, to adopt Ordinance No. 18- 10917 approving an amendment to an existing Planned Development District to allow a duplex to Pace 7 be converted into three (3) living units on property legally described as Lot 3, Block 1 in the Tolle Subdivision in the city of Salina, Saline County, Kansas and is addressed as 2097-2099 Hageman Avenue on second reading. A roll call vote was taken. Aye: (5), Davis, Hay, Hodges, Hoppock, Ryan. Nay: (0). Motion carried (7.2) First reading Ordinance No. 18-10920 condemning land for the location and construction of a water treatment plant at South Ohio Street and East Water Well BRoad, Saline County, Kansas, and directing the city manager to cause the initiation of an eminent domain proceeding as provided by applicable law to acquire the 0 tracts and parcels of land described in the ordinance. Greg Bengtson, City Attorney, requested the item be postponed to the February 26, 2018 City Commission meeting. 18-0054 Moved by Commissioner Hoppock, seconded by Commissioner Davis, to postpone Ordinance No. 18-10920 condemning land for the location and construction of a water treatment plant at South Ohio Street and East Water Well Road, Saline County, Kansas, and directing the city manager to cause the initiation of an eminent domain proceeding as provided by applicable law to acquire the tracts and parcels of land described in the ordinance on first reading to the February 26, 2018 City Commission meeting. Aye: (5). Nay: (0). Motion carried. (7.3) Direct staff in response to pending open records requests based on statutory authority and discretion provided to municipal organizations as contained within the Kansas Open Records Act(KORA). Jason Gage,City Manager, explained the request submitted and action options. Greg Bengtson, City Attorney, explained the review of the records by a third party attorney and his role in the request. Commissioner Hodges asked if the recommendation by the third party attorney would be considered an open record. Mr. Bengtson stated the document would be considered as a privileged communication and the waiver of releasing the document would be a determination of the City Commission. Commissioner Hodges provided her thoughts on the matter and asked for clarification on the timeline and lengthy delay in responding to the request. Mr. Bengtson stated there was no opportunity at the last meeting for action on the item. Commissioner Hodges asked if there was communication that needed to take place after the executive session last week. Mr. Gage stated he could not answer that question. 18-0055 Moved by Commissioner Davis, seconded by Commissioner Hay, to release letters 1 and 4 in their un-redacted state and letter 5 in the redacted state as recommended by legal counsel. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS (8.1) Consider approval of the creation of a residential building lot at 1645 East Cloud Street. (8.1a) Resolution No. 18-7525 approving a license agreement with Theodore and Geraldine Long, to allow for the construction and maintenance of a private Page 8 sanitary sewer service line to serve the property located at 1645 E. Cloud Street in the Cloud Street right-of-way. (8.1b) Consider acceptance of proposed public right-of-way and easement dedications in the Bixby-Long Addition. w (8.1c) First reading Ordinance No. 18-10918 (Application No. Z17-10, filed by Daryl Bixby on behalf of Ted Long), requesting approval of a change in g zoning district classification from A-1 (Agricultural) to R-1 (Single-Family Residential) on an unplatted tract of land to allow creation of a residential 1 building lot for a new single-family dwelling. Dean Andrew, Director of Planning, explained the license agreement and action options. 18-0056 Moved by Commissioner Davis, seconded by Commissioner Hodges, to adopt Resolution No. 18- 7525 approving a license agreement with Theodore and Geraldine Long, to allow for the construction and maintenance of a private sanitary sewer service line to serve the property located at 1645 E. Cloud Street in the Cloud Street right-of-way. Aye: (5). Nay: (0). Motion carried. Dean Andrew, Director of Planning, explained the final plat and action options. Commissioner Hoppock asked what the technical corrections were to the plat. Mr. Andrew stated there was an easement that the surveyor sited on the plat that listed the incorrect . book and page and the references to Ludes Lane were removed since it was not an actual street name. 18-0057 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to accept the offered public right-of-way and easement dedications and authorize the Mayor to sign the final plat of the proposed Bixby-Long Addition. Aye: (5). Nay: (0). Motion carried. Dean Andrew, Director of Planning, explained the request for changing in zoning district classification and action options. • 18-0058 Moved by Commissioner Hodges, seconded by Commissioner Hay, to pass Ordinance No. 18- 10918 approving a change in zoning district classification from A-1 (Agricultural) to R-1 (Single- Family Residential) on an unplatted tract of land to allow creation of a residential building lot for a new single-family dwelling on first reading. Aye: (5). Nay: (0). Motion carried. OTHER BUSINESS None. ADJOURNMENT 18-0059 Moved by Commissioner Hay, 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 6:52 p.m. J [SEAL] Trent W. Davis, M.D., Mayor Page 9 Shandi Wicks,CMC, City Clerk w 9 O0 O U 1 1 Page 10