11-19-2018 Minutes CITY OF SALINA, KANSAS
REGULAR MEETING OF THE BOARD OF COMMISSIONERS
November 19, 2018
4:00 p.m.
The City Commission convened at 2:30 p.m. for Recycling Update and at 3:45 p.m. for Citizens
Forum at City-County Building, Room 107B.
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: Michael Schrage, Interim City Manager; Greg Bengtson, City Attorney; and Shandi
Wicks, City Clerk.
AWARDS AND PROCLAMATIONS
(3.1) The day of November 24, 2018 as "Small Business Saturday" in the city of Salina.
Valerie Linenberger, True Betty Boutique, read the proclamation and announced
associated events.
CITIZENS FORUM
1 . Daniel Eckhoff, 2664 Highland Avenue, provided his thoughts on current closing time of
liquor stores and asked the City Commission to consider expanding the closing time from
10:00 p.m. to 11:00 p.m.
Norman Marine', Salina, asked if the law enforcement training center was going forward.
Michael Schrage, Interim City Manager, provided an update on the project.
PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME
None.
CONSENT AGENDA
(6.1) Approve the minutes of November 5, 2018.
(6.2) Approve the minutes of November 13, 2018.
(6.3) Approve Resolution No. 18-7631 authorizing the Mayor to execute an agreement
between the City of Salina and Mize Houser & Company, Certified Public
Accountants for an audit of City records for the year ending December 31,2018.
(6.4) Approve Resolution No. 18-7627 authorizing the Mayor to execute an agreement
with Sunflower Bank, National Association, for construction of site improvements
and temporary construction easement.
I18-0475 Moved by Commissioner Davis, seconded by Commissioner Hodges, to approve the consent
agenda as presented. Aye: (4). Nay: (0). Motion carried.
ADMINISTRATION
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(7.1) Second reading Ordinance No. 18-10984 authorizing the issuance of Senior Special
Obligation Revenue Bonds (downtown project) Series 2018A and Subordinate
Special Obligation Revenue Bonds (downtown project) Series 2018B.
Michael Schrage, Interim City Manager, stated there was an inter-relationship with Agenda
2 Item 7.5 and asked if the item could be moved following that item.
18-0416 Moved by Commissioner Davis, seconded by Commissioner Hodges, to postpone Item 7.1 until ,
after Item 7.5 Aye: (5). Nay: (0). Motion carried.
° (7.2) Second reading Ordinance No. 18-10985 vacating a portion of a 10 ft. wide north-
south platted alley located south of Elm Street between North Santa Fe Avenue and
North Fifth Street in the Original Town (now City) of Salina, Saline County, Kansas.
Mayor Ryan noted that Ordinance No. 18-10985 was passed on first reading on November
5, 2018 and since that time no comments have been received.
18-0477 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to adopt Ordinance No.
18-10985 vacating a portion of a 10 ft. wide north-south platted alley located south of Elm Street
between North Santa Fe Avenue and North Fifth Street in the Original Town (now City) of Salina,
Saline County, Kansas on second reading. A roll call vote was taken. Aye: (5) Davis, Hay, Hodges,
Hoppock, Ryan. Nay: (0). Motion carried.
(7.3) Second reading Ordinance No. 1840986 vacating a 20 ft. wide east-west alley
extending between North Santa Fe Avenue and North Fifth Street in the Original
Town (now City) of Salina, Saline County, Kansas.
Mayor Ryan noted that Ordinance No. 18-10986 was passed on first reading on November
5, 2018 and since that time no comments have been received.
18-0478 Moved by Commissioner Hodges, seconded by Commissioner Hay, to adopt Ordinance No. 18-
10986 vacating a 20 ft. wide east-west alley extending between North Santa Fe Avenue and North
Fifth Street in the Original Town (now City) of Salina, Saline County, Kansas on second reading. A
roll call vote was taken. Aye: (5) Davis, Hay, Hodges, Hoppock, Ryan. Nay: (0). Motion carried.
(7.4) Second reading Ordinance No. 18-10987 changing the zoning district classification
from R-3 (Multiple Family Residential District) to PDD (Planned Development
District) on property addressed as 148 North Oakdale Avenue.
Mayor Ryan noted that Ordinance No. 18-10986 was passed on first reading on November
5, 2018 and since that time no comments have been received.
18-0479 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to adopt Ordinance No.
18-10987 changing the zoning district classification from R-3 (Multiple Family Residential District)
to PDD (Planned Development District) on property addressed as 148 North Oakdale Avenue on
second reading. A roll call vote was taken. Aye: (5) Davis, Hay, Hodges, Hoppock, Ryan. Nay:
(0). Motion carried.
(7.5) Authorize Mayor to execute the following Transferee Agreements:
(a) Resolution No. 18-7628 authorizing the Mayor to execute the Transferee
Agreement with Salina2020, Inc. and the Stiefel Theatre for the Performing
Arts Foundation.
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(b) Resolution No. 18-7629 authorizing the Mayor to execute the Transferee
Agreement with Salina2020, Inc. and the Salina Education Automotive
Museum of America, Inc.
(c) Resolution No. 18-7630 authorizing the Mayor to execute the Transferee
Agreement with Salina2020, Inc. and the Barollo Grille/JKSK Corp.
Michael Schrage, Interim City Manager, explained the agreements, fiscal impact and action
options.
Commissioner Davis asked if the Stiefel Theatre was not able to come up with creative
ways to us the entire amount of money what would happen to the remaining money. Mr.
Schrage stated there was recognition that a bulk of the money would be used for the project
and the funds would be released as the invoices were submitted.
Commissioner Hodges asked if the remaining money would continue to be held by the City
of Salina. Mr. Schrage stated the money could be used for something else.
18-0480 Moved by Commissioner Davis, seconded by Commissioner Hay, to adopt Resolution No. 18-7628
authorizing the Mayor to execute the Transferee Agreement with Salina2020, Inc. and the Stiefel
Theatre for the Performing Arts Foundation. Aye: (3). Nay: (0). Motion carried.
18-0481 Moved by Commissioner Davis, seconded by Commissioner Hay, to adopt Resolution No. 18-7629
authorizing the Mayor to execute the Transferee Agreement with Salina2020, Inc. and the Salina
Education Automotive Museum of America, Inc. Aye: (5). Nay: (0). Motion carried.
Commissioner Hoppock asked for clarification on the CID money and the TIF money.
Aaron Martin, Clark, Mize & Linville, stated in the event the apartment TIF Fund was not
used, the money would be redirected to the new business TIF fund.
A conversation continued to ensue between the Commission, Mr. Schrage and Mr. Martin
regarding the CID funding and the TIF funding.
Commissioner Hodges as if the projects were more successful than what the estimates were
anticipated to be would the re-payment have to follow the set schedule. Mr. Martin stated
depending on the agreement, the payment could have an annual cap or the payment could
be escalated.
Mr. Schrage continued to provide information on the CID and TIF funding.
Commissioner Hodges asked if there was a specified amount of time the money for the
market rate apartments would need to be held before moving to another fund. Mr. Martin
stated there was not a date certain listed it was based on the mutual agreement between the
City of Salina and the master developer.
Commissioner Hodges asked if there was a rubric set for the split out of the funding for the
CID and TIF. Mr. Schrage stated based on the development agreement and the
supplemental agreement there were goals listed for downtown but nothing set in stone.
Commissioner Hodges asked in the instance that a business fails or gets sold what happens.
Mr. Schrage stated the transferee agreement included a specific section of assignment and
transfer of the agreement was included in the development agreement. Mr. Martin
provided additional information on the assignment and transfer of the agreement.
Commissioner Hodges asked if there was a financial requirement for the Barollo Grille. Mr.
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Schrage stated that staff looked at the financial ability of the organization and the ability to
meet the commencement requirements.
Commissioner Hoppock asked if the transferee agreement needed to be updated to show
the correct entity. Gary Anderson, Gilmore Sr Bell, stated that as of this afternoon there was
one (1) entity that would own the property and another entity that would operate the
property. Jeff Maes, ComPro Realty, stated there was conversation on whether the property
would be changing the property ownership to the JKSK Corporation or if a lease agreement
y
would be completed.
Commissioner Hodges asked who the payments would be made to. Mr. Schrage stated the
payments would be made to JKSK Corporation.
Mr. Maes provided additional information pertaining to the ownership of the property for
the Barollo Grill.
Commissioner Hoppock provided his thoughts on the Barollo Grill project.
18-0482 Moved by Commissioner Hoppock, seconded by Commissioner Hay, to adopt Resolution No. 18-
7630 authorizing the Mayor to execute the Transferee Agreement with Salina2020, Inc. and the
Barollo Grille/JKSK Corp. Aye: (4). Nay: ( 1) Hodges. Motion carried.
(7.1) Second reading Ordinance No. 18-10984 authorizing the issuance of Senior Special
Obligation Revenue Bonds (downtown project) Series 2018A and Subordinate
Special Obligation Revenue Bonds (downtown project) Series 2018B.
Mayor Ryan noted that Ordinance No. 18-10986 was passed on first reading on November
5, 2018 and since that time no comments have been received.
Michael Schrage, Interim City Manager, provided an update on the issuance of the bonds.
Commissioner Davis asked if staff could provide the latest dates and amounts that would
be filled in the documents. Gary Anderson, Gilmore & Bell, stated the current schedule was
for the preliminary paperwork would to be done on November 20, 2018 and approximately
two (2) weeks after that Stifel, Nicolaus & Company, Incorporated would price the bonds
and the dates and amounts would be inserted into the documents to be signed by the City
of Salina and closing would take place around December 20, 2018.
Commissioner Hodges asked what the debt service reserve fund was for. Mr. Schrage
stated there were additional costs included in the bond sizing. Mr. Anderson stated it was
customary to have a debt reserve fund that was about 10% of the bond issue and in
addition there would be another fund that would be called the capitalized interest fund to
pay the investors until the funds were available. He continued to state the debt service
reserve fund would be used to cover unexpected events.
Commissioner Hodges asked if the fund was replenished and if City funds would be used
for that. Mr. Anderson stated the only source for replenishment was from STAR revenues.
Commissioner Hodges stated the City of Salina had never defaulted on general obligation
bonds,correct. Mr. Anderson stated that was correct.
Commissioner Hodges asked in the event payments could not be made, what would
happen. Mr. Anderson stated in the unlikely event, there was no source of revenue, there
was no legal obligation of the City of Salina to pay the bonds. He continued to state the
bond rating companies may ask questions regarding the default of the bonds to find out the
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history of the default.
A conversation ensued between the Commission, Mr. Anderson and Mr. Schrage regarding
the bond sizing and financing of the bonds.
Rodger Edgar, George K. Baum & Company, provided information on the obligation or
commitment of the City of Salina on the bonds.
Mr. Schrage stated Blue Beacon recognized the finances and stepped up to back the
subordinate bonds.
18-043 Moved by Commissioner Hay, seconded by Commissioner Hoppock, to adopt Ordinance No. 18-
o 10984 authorizing the issuance of Senior Special Obligation Revenue Bonds (downtown project)
Series 2018A and Subordinate Special Obligation Revenue Bonds (downtown project) Series 2018B
on second reading. A roll call vote was taken. Aye: (5) Davis, Hay, Hodges, Hoppock, Ryan. Nay:
(0). Motion carried.
(7.6) Receive and review the 2016 and 2017 Audit Reports from Mize Houser and
Company.
Debbie Pack, Director of Finance &Administration, summarized the audits.
Audrey Odermann, Mize Houser & Company, provided additional information on the 2016
and 2017 audits.
Commissioner Hoppock asked if the healthcare disclosure had an effect on the funds. Ms.
Odermann stated it would calculate the liability differently but not affect the general funds.
Mr. Schrage asked if Mr. Odermann could explain the enclosure of the post-employment
healthcare liability.
Commissioner Hay asked for the future plans for completion of the audits. Ms. Odermann
stated the current plan was to begin prep work in January, 2019 and the goal was to have
the audit complete by April, 2019.
Commissioner Hodges asked where in the statistical section would it show the percentage
of debt. Ms. Odermann provided the information within the audits.
Commissioner Hoppock asked if the issues with municipal court were due to shortness in
staff or software issues. Ms. Pack stated there were some updates to the software and the
relationship to the software of the police department and the municipal court and shortness
of staff. She continued to state there was work being done to address both issues at this
time.
18-0484 Moved by Commissioner Hoppock, seconded by Commissioner Davis, to approve the 2016 audit
report from Mize Houser and Company. Aye: (5). Nay: (0). Motion carried.
18-0485 Moved by Commissioner Hodges, seconded by Commissioner Hay, to accept the 2017 audit report
from Mize Houser and Company. Aye: (5). Nay: (0). Motion carried.
(7.7) Resolution No. 18-7634 authorizing the Mayor to execute Addendum No. 2 to the
License Agreement for Sculpture Display in the public right-of-way with the Salina
Area Chamber of Commerce.
Brad Anderson, Director of Arts & Humanities, explained the addendum, fiscal impact and
action options.
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Norman Mannel, Salina, provided his thoughts on the addendum allowing the public to
display art in the right-of-way. Michael Schrage, Interim City Manager, stated the
agreement was with the Salina Area Chamber of Commerce.
18-0486 Moved by Commissioner Hodges, seconded by Commissioner Davis, to adopt Resolution No. 18-
7634 authorizing the Mayor to execute Addendum No. 2 to the License Agreement for Sculpture
Display in the public right-of-way with the Salina Area Chamber of Commerce. Aye: (5). Nay: (0).
Motion carried.
= DEVELOPMENT BUSINESS
(8.1) Resolution No. 18-7626 authorizing the Mayor to execute a license agreement with
Overland Property Group.
Dean Andrew, Director of Planning, explained the request, agreement and action options.
Conunissioner Hay asked if the action was to approve the license agreement with Lee
Development LLC and if it could be transferable. Greg Bengtson, City Attorney, stated that
it was simply a matter of determining who the entity was that would hold the property. He
continued to state the resolution could be amended to list the owner of the Lee Building
Redevelopment project.
Jeff Gillam, Jones, Gillam, Renz, stated Overland Property Group and Flint Hills Holdings
Group were the owners and they were working on developing the property development
name.
Commissioner Hodges asked if there was a timeframe on when the name would be
determined. Mr. Gillam stated it was a complicated closing due to the number of entities
involved but the hope is for closing to be in approximately one month.
Commissioner Hoppock asked if the agreement could list Overland Property Group and its
successors. Mr. Bengtson stated the agreement would need to be approved by the City of
Salina it the agreement would be assigned to the successors.
A conversation ensued between the Commission, Mr. Andrew and Michael Schrage,
Interim City Manager, regarding the ownership of the property and the listing on the
license agreement.
Commissioner Hoppock asked if the parking spaces were of the request of the City of
Salina. Mr. Gillam stated it was of the request of the developer for the license agreement.
18-0487 Moved by Commissioner Hodges, seconded by Commissioner Davis, to adopt Resolution No. 18-
7626 authorizing the Mayor to execute a license agreement with the developer of the Lee Building
Lofts. Aye: (5). Nay: (0). Motion carried.
(8.2) Request to authorize staff preparation of Special Assessment Engineering Feasibility
Report for Phase I of Magnolia Hills Estates Addition No. 2.
Dean Andrew, Director of Planning, explained the request, review factors, required public
improvements, fiscal impact, and action options.
Commissioner Davis asked if the proposed phase would not be part of a future benefit
district. Mr. Andrew stated it was determined that the area would not be subject to or part
of any of the specials for Holmes Road.
Michael Schrage, Interim City Manager, provided additional information on the
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determination of the benefit district.
A conversation ensued between the Commission, Mr. Andrew and Mr. Schrage regarding
the benefit district.
Mayor Ryan asked when the sidewalks would go in. Mr. Andrew stated it was anticipated
that it would be done as part of Phase I. Dan Stack, City Engineer, stated city staff was
preparing to start grading for the hike/bike trail and the sidewalk would be done as part of
H Phase I.
Commissioner Hoppock asked where the trail started and ended. Mr. Stack stated from
g Stonepost to the corner of Magnolia and Markley. A conversation ensued between the
Commission and Mr. Stack regarding the hike/bike trail.
Stan Byquist, 2601 S. Ohio, Magnolia Hills Estates, Inc., provided information on the
development and thanked the commission for considering the item.
Bryan Frazier, 512 S. Eighth, asked if the developer would have to pay 100% for the
sidewalk. Mr. Andrew stated the City was partnering with the developer on the sidewalks
and the hike/bike trail.
Mr. Frazier continued to provide his thoughts on the number of vacant lots available and
asked for commissioners with relationships with realtors to recuse themselves.
Commissioner Hoppock asked if the neighborhood would have sidewalks. Mr. Andrew
stated the developer would be responsible for covering the costs for the typical sidewalk
and the City of Salina would cover the cost to extend the sidewalk to a hike/bike frail.
Commissioner Hodges asked if we have any information on the number of buildable lots in
the City of Salina. Mr. Andrew stated the number of lots that had water and sewer hookups
were less than 100 buildable lots available in town.
Commissioner Hodges provided her thoughts on the request and the number of available
lots in the community.
A conversation ensued between the Commission, Mr. Stack and Mr. Schrage regarding the
estimated life cycle maintenance costs of the special assessments.
Commissioner Hodges provided her thoughts on the estimated life cycle maintenance
• costs.
Daniel Eckhoff, 2664 Highland, asked if the costs could be broken out for the sidewalks and
the hike/bike trail listing the costs of the developer and the City of Salina.
Commissioner Davis asked how the 100 available lots were characterized. Mr. Andrew
stated it included lots in the residential growth area in Pheasant Ridge, River Trail and
Grand Prairie.
Mr. Frazier asked how many lots were approved in the last 3 years. Mr. Andrew stated in 3
years there was assessment financing approved for 73 lots in Pheasant Ridge, River Trail
and Grand Prairie.
Mr. Frazier provided his thoughts on the request and the need for improvements in the rest
of the city.
Commissioner Davis asked if the developer has access to the 72 other lots available. Kelly
Dunn, Magnolia Hills Estates, Inc., stated they sold over 30% of the lots in River Trail, 12
lots per year at Magnolia Hills, 6 lots left in Stone Lake, and he was not aware of any other
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lots available.
Mr. Andrew stated there were lots available in the Cedar Ridge Addition but were not
available for these developers and continued to provide information on the lots available.
A conversation ensued between the Commission, Mr. Andrew and Mr. Dunn regarding the
number of available residential lots.
Commissioner Hoppock asked if staff could provide a list of available lots by subdivision
to the commission. Mr. Andrew stated he could provide a list and provided additional
information on the history of the available lots.
18-0488 Moved by Commissioner Hay, seconded by Commissioner Hoppock, to authorize staff to prepare
an engineering feasibility report and Resolution of Advisability for Phase I of Magnolia Hills
Estates Addition No. 2 for future consideration by the City Commission. Aye: (4). Nay: (1)
Hodges. Motion carried.
OTHER BUSINESS
Michael Schrage, Interim City Manager, stated the Salina Area Chamber of Commerce was
working on their legislative policy and would like to have the updated information by new
week. He continued to provide information on clarifications to the Statement of Legislative
Policy.
A conversation ensued between the Commission and Mr. Schrage regarding the policy
clarifications and changes.
The commission provided their thoughts on the policy revisions and reached a consensus
to have staff send the information to the chamber.
Commissioner Hay thanked Martha Tasker and HDR for their work on the river renewal
project.
ADJOURNMENT
18-0489 Moved by Commissioner Davis, seconded by Commissioner Hoppock, that the regular meeting of
the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting
adjourned at 6:54 p.m.
[SEAL] Karl F. Ryan, Mayor
ATTEST::
CilltOk Waal
Shandi Wicks,CMC,City Clerk
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