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Trancript of ProceedingsCITY OF SALINA, KANSAS GENERAL OBLIGATION TEMPORARY NOTES SERIES 2018-1 DATED JULY 30, 2018 CLOSING LIST Copies of the transcript of proceedings for the above referenced issue (the ''Notes"), will be prepared and distributed as follows: 1. City of Salina, Kansas (the "Issuer") 2. Attorney General of the State of Kansas 3. The Bennington State Bank, Salina, Kansas (the "Original Purchaser") 4. George K. Baum & Company, Kansas City, Missouri (the "Municipal Advisor") 5. Gilmore & Bell, P.C., Kansas City, Missouri ("Bond Counsel") Document Number PROCEEDINGS AUTHORIZING THE IMPROVEMENTS I . Downtown Streetscape 2. Police Training Center 3. Grand Prairie Addition, Phase II Benefit District 4. River Trail Second Addition PROCEEDINGS AUTHORIZING THE SALE AND ISSUANCE OF THE NOTES 5. Not~ Purchase Agreement 6. Excerpt of Minutes of the governing body meeting evidencing adoption of Resolution No. 18-7563 7. Resolution No. 18-7563 authorizing the issuance of the Notes and prescribing the form and details of the Notes CLOSING DOCUMENTS 8. Transcript Certificate Exhibit A -Schedule of Outstanding General Obligation Indebtedness 9. Uniform Facsimile of Signature Certificate 10. Specimen Note 11. Agreement Between Issuer and Agent 12. Underwriting Safekeeping Agreement 13. Closing Certificate 14. Federal Tax Certificate with attachments as follows: A. IRS Form 8038-G Evidence of filing B. Receipt for Purchase Price C. Purchaser's Receipt for Notes and Issue Price Certificate D. Description of Property Comprising the Financed Improvements and List of Reimbursements E. Form of Final Written Allocation F. Sample Annual Compliance Checklist Schedule 1-Debt Service Schedule and Proof of Yield LEGAL OPINIONS 15. Approving legal opinion of Gilmore & Bell, P.C. 16. Approval letter of Attorney General MISCELLANEOUS DOCUMENTS 17. Closing Letter 18. Letter from State Treasurer Confirming Registration Number 19. Representation Letter -The Bennington State Bank 20. EMMA Filing -Voluntary Event Notice of Direct Placement 2 Commission Action# CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS February 11, 2002 4:00p.m. The City Commission convened at 3:30 p.m. for a Citizen Open Forum. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City-County Building. A roll call was taken followed by the Pledge of Allegiance and a moment of silence. There were present: Mayor Kristin M. Seaton, Chairman presiding Commissioner Deborah P. Divine Commissioner Don Heath Commissioner Alan E. Jilka Commissioner Monte D. Shadwick comprising a quorum of the Board, also present: Absent: Greg Bengtson, City Attorney Dennis M. Kissinger, City Manager Lieu Ann Nicola, City Clerk None. CITIZEN FORUM None. AW ARDS -PROCLAMATIONS (4.1) The week of February 1-r" through the 23n1 as ''National Engineers Week" in the City of Salina. The proclamation was read by Rob Mahan, President of the Smoky Valley Chapter of Kansas Society of Professional Engineers and civil engineer with Bucher, Willis and Ratliff Corporation. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME (5.1) Public hearing on Application #CUOl-11, filed by Rusty Leister, requesting a Conditional Use Permit to allow a drinking establishment in the C-4 District on property addressed as 117 N. Santa Fe, legally described as the South half of Lot 100 on Santa Fe Avenue in the Original Town of Salina. The public hearing was opened. Commissioner Shadwick excused himself from the meeting due to conflict of interest. Dean Andrew, Director of Planning and Community Development, explained the request, City Commission alternatives, events taken place to date, and the Planning Commission's recommendation. A discussion followed with Commissioner Divine, City Manager Dennis Kissinger, and Mr. Andrew regarding conditions placed on the property and safety concerns. Ken Wasserman, 213 S. Santa Fe, explained modifications made to the plans and requested the application be returned to the Planning Commission for further consideration. 02-3181 Moved by Commissioner Divine, seconded by Commissioner Heath, to return Application #CUOl-11 to the Planning Commission for further consideration and to be more specific on conditions placed. Aye: (4). Nay: (0). Abstained: (1) Shadwick. Motioncanied. Commission Action# Mr. Kissinger responded to Commissioner Jilka's question regarding the Conditional Use Permit process. Commissioner Shadwick returned to the meeting. CONSENT AGENDA (6.1) Approve the minutes of February 4, 2002. ( 6.2) Resolution No. 02-5812 authorizing the public sale of approximately $4,865,000 principal amount General Obligation Temporary Notes, Series 2002-1. (6.3) Approval of the 2002 Parks and Recreation Capital Improvement Program. Steve Snyder, Director of Parks and Recreation, summarized the Capital Improvement Program. 02-3182 Moved by Commissioner Divine, seconded by Commissioner Shadwick, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS None. ADMINISTRATION (8.1) Second reading Ordinance No. 02-10072 vacating Reserve "A" in the Riffel Addition. Mayor Seaton clarified that Ordinance No. 02-10072 was passed on first reading on February 4, 2002, no comments have been received, and the property owner signed and recorded an affidavit with the Register of Deeds acknowledging and consenting to the loss of the public street access. 02-3183 Moved by Commissioner Jilka, seconded by Commissioner Shadwick, to adopt Ordinance No. 02-10072 on second reading. A roll call vote was taken. Aye: (5) Divine, Heath, Jilka, Shadwick, Seaton. Nay: (0). Motion carried. (8.2) First reading Ordinance No. 02-10071 designating certain streets as main trafficways and designating certain additional streets as trafficway connections. Dennis Kissinger, City Manager, summarized the ordinance and changes. Mr. Kissinger also responded to Commissioner Divine's question regarding the removal of Bishop and College Streets. 02-3184 Moved by Commissioner Shadwick, seconded by Commissioner Divine, to pass Ordinance No. 01-10071 on first reading. Aye: (5). Nay: (0). Motion carried. (8.3) Resolution No. 02-5811 initiating proceedings for main trafficway and main trafficway connection improvements involving North Ohio Street and related streets. Rodney Franz, Director of Finance and Administration, explained the proceedings. -02-3185 Moved by Commissioner Heath, seconded by Commissioner Jilka, to adopt Resolution No. 02-5811. Aye: (5). Nay: (0). Motion carried. (8.4) City Commission direction to staff regarding the restaurant smoking ban issue. Dennis Kissinger, City Manager, summarized the request and City Commission options. He also responded to Commissioner Shadwick's question regarding smoking on public property. Commission Action# Commissioner Shadwick thanked the coalition for their work, but expressed opposition toward considering a smoke-free ordinance. Also thanking the coalition, each remaining Commissioner gave their reasons for staff's continued work on the matter. 02-3186 Moved by Commissioner Divine, seconded by Commissioner Heath, to direct City Staff to complete the legal and management research necessary to prepare an issues and options report and draft a smoke-free restaurant ordinance for further discussion and consideration. Aye: ( 4). Nay: (1) Shadwick. Motion carried. (8.5) Preliminary consideration of two separate property transactions involving surplus city property at Belmont and Ohio, and a parking lot property at Santa Fe and Ash in downtown Salina. Dennis Kissinger, City Manager, explained the transactions. Mr. Kissinger and Shawn O'Leary, Director of Engineering and General Services, responded to Commissioner Heath's and Commissioner Divine's questions regarding property ownership and estimated cost of lighting. 02-3187 Moved by Commissioner Divine, seconded by Commissioner Jilka, to approve both transactions in concept, and authorize the City Manager and City Attorney to negotiate appropriate agreements with Sunflower Bank and the Chamber of Commerce. (8.6) Approve the remaining 2002 Vehicle and Equipment, Phase 1 purchases. Jason Gage, Assistant City Manager, explained the purchases. 02-3188 Moved by Commissioner Shadwick, seconded by Commissioner Divine, to approve the purchase of the remaining 2002 Vehicle and Equipment, Phase 1 purchases. Aye: (5). Nay: (0). Motion carried. 02-3189 (8.7) Moved by Commissioner Heath, seconded by Commissioner Jilka, to recess into executive session for 30 minutes for preliminary discussion relating to the acquisition of real estate for the reason that public discussion of the matter could jeopardize the ability of the City to acquire the real estate; and reconvene at 5:32 p.m. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 5:02 p.m. and reconvened at 5:32 p.m. 02-3190 Moved by Commissioner Jilka, seconded by Commissioner Divine, that the City Commission reconvene into the current executive session for an additional 15 minutes. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 5:32 p.m. and reconvened at 5:47 p.m. No action was taken. OTHER BUSINESS None. ADJOURNMENT 02-3191 Moved by Commissioner Shadwick, seconded by Commissioner Heath, that the Regular Meeting of the Board of Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 5:47 p.m. [SEAL] ATTEST: Lieu Ann Nicola, City Clerk Commission Action# CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS February 25, 2002 4:00p.m. The City Commission convened at 3:30 p.m. for a Citizen Open Forum. The City Commission also met in a Study Session after the regular meeting for a City/USD 305 Programs Briefing. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City-County Building. A roll call was taken followed by the Pledge of Allegiance and a moment of silence. There were present: Mayor Kristin M. Seaton, Chairman presiding Commissioner Deborah P. Divine Commissioner Don Heath Commissioner Alan E. Jilka Commissioner Monte D. Shadwick comprising a quorum of the Board, also present: Absent: Greg Bengtson, City Attorney Dennis M. Kissinger, City Manager Lieu Ann Nicola, City Clerk None. CITIZEN FORUM None. AWARDS-PROCLAMATIONS (4.1) The day of March 1, 2002 as "Read Across America" day in the City of Salina. The proclamation was read by Pat Breckunitch, Principal of Sacred Heart Grade School. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. CONSENT AGENDA (6.1) Approve the minutes ofFebruary 11, 2002. (6.2) Resolution No. 02-5813 authorizing a license agreement with DVACK for construction and maintenance improvements in the public right--0f-way on Walnut and Santa Fe Avenue, allowing the covered walkway and a sign to be mounted to the walkway structure. 02-3192 Moved by Commissioner Jilka, seconded by Commissioner Divine, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS None. ADMINISTRATION (8.1) Second reading Ordinance No. 02-10071 designating certain streets as main trafficways and designating certain additional streets as trafficway connections. Commission Action# Mayor Seaton clarified that Ordinance No. 02-10071 was passed on first reading on February 11, 2002 and no comments have been received. 02-3193 Moved by Commissioner Shadwick, seconded by Commissioner Jilka, to adopt Ordiance No. 02-10071 on second reading. A roll call vote was taken. Aye: (5) Divine, Heath, Jilka, Shadwick, Seaton. Nay: (0). Motion carried. (8.2) First reading Ordinance No. 02-10070 amending Chapter 39, Article IV and V of the Salina Code pertaining to trees and shrubs. Steve Snyder, Director of Parks and Recreation, explained the proposed changes. He also responded to Mayor Seaton's question regarding public education. A discussion followed with Commissioner Heath, Mayor Seaton, City Manager Dennis Kissinger, and Mr. Snyder regarding required permits and employee staffing. 02-319 Moved by Commissioner Divine, seconded by Commissioner Heath. to pass Ordinance No. 02-10070 on first reading. Aye: (5). Nay: (0). Motion carried. (8.3) Resolution No. 02-5810 authorizing an Extension Agreement and Amendment No. Three to a contract with Salina Community Access Television extending the agreement until February 3, 2007. Dennis Kissinger, City Manager, explained the existing agreement and prior amendments. Commissioner Divine complimented Salina Community Access on their efforts. 02-3195 Moved by Commissioner Heath, seconded by Commissioner Divine, to adopt Resolution No. 02-5810. Aye: (5). Nay: (0). Motion carried. (8.4) Resolution No. 02-5814 appointing members to various boards and commissions. Mayor Seaton read the appointments. 02-3196 Moved by Commissioner Shadwick, seconded by Commissioner Jilka, to adopt Resolution No. 02-5814. Aye: (5). Nay: (0). Motion carried. (8.5) Request from the North Salina Pastors Association (N.S.P.A.) for a waiver of the regular rental charges at the Bicentennial Center for a 24-hour Prayer Vigil sponsored by the N.S.P.A. Dennis Kissinger, City Manager, explained the request, the Bicentennial Center's intended use, and the rental agreement charge. Greg Bengtson, City Attorney, explained the legal issue raised by the request. Mr. Kissinger responded to Mayor Seaton's question regarding communications with the requestor. Jeanette Curtis, North Salina Pastors Association, explained reasons to grant the request. A discussion followed between Commissioner Shadwick and Mr. Kissinger regarding the waiver of fees for the city-wide event for honoring police officers and fire fighters. 02-319 Moved by Commissioner Shadwick, seconded by Commissioner Jilka, to deny the fee waiver request for legal reasons. Aye: (5). Nay: (0). Motion carried. OTHER BUSINESS None. Commission Action# ADJOURNMENT 02-319 Moved by Commissioner Jilka, seconded by Commissioner Divine, that the Regular Meeting of the Board of Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 4:32 p.m. [SEAL) ATTEST: Lieu Ann Nicola, City Clerk (Published in the Salina Journal on February , 2002) ORDINANCE NUMBER 02-10071 AN ORDINANCE DESIGNATING CERTAIN STREETS AS MAIN TRAFFICWAYS PURSUANT TO K.S.A. 12-685 AND DESIGNATING CERTAIN ADDmONAL STREETS AS TRAFFICWAY CONNECTIONS PURSUANT TO K.S.A. 12-686, AND REPEALING ORDINANCE NUMBER 93-9562. BE IT ORDAINED by the Governing Body of the City of Salina, Kansas: Section 1. The primary function of the streets described in this section is hereby found to be the movement of through traffic between areas of concentrated activity within the city or between such areas within the city and traffic facilities outside the city performing the function of a major trafficway, based upon the following: A. ASH STREET is a major collector street running east from Broadway Boulevard to Ohio Street and is a principal street carrying east/west traffic through the center portion of the City. B. BELMONT BOULEY ARD is a major arterial street running southwest from Ohio Street to Ninth Street and is a principal street carrying southwest/northeast traffic through the southeast portion of the City. C. BROADWAY BOULEY ARD is a major arterial street running west and south from North Ninth Street and Pacific Avenue and is a principal street carrying north/south traffic on the west side of the City. D. CENTENNIAL ROAD is a major arterial street running north from Waterwell Road to West Crawford Avenue and is a principal street carrying north/south traffic through the west portion of the City. E. CLOUD STREET is a major collector street running east from Centennial Road to the flood levee system east of Ohio Street and is a principal street carrying east/west traffic through the south-central portion of the City. F. COUNTRY CLUB ROAD is a major arterial street running west from the east city limit line to Marymount Road and is a principal street carrying east/west traffic through the east-central portion of the City. G. CRAWFORD A VENUE is a major arterial street running east from one of the 1-135 interchanges into the City, to the east City limits and is a principal street carrying east/west traffic through the central portion of the City. H. IRON A VENUE is a major arterial street carrying traffic between the City's central and eastern commercial districts and is a principal street carrying east/west traffic through the north-central portion of the City. I. MAGNOLIA ROAD is a major arterial street running east from the west city limits to the east city limits and is a principal street carrying east/west traffic through the south portion of the City. J. MARKLEY ROAD is a major collector street running south from Crawford to Magnolia Road and is a principal street carrying north/south traffic through the east portion of the City. K. MARYMOUNT ROAD is a major arterial street running north from Cloud Street to Country Club Road and is a principal street carrying north/south traffic through the east portion of the City. L. NINTH STREET is a major arterial street from the north city limits, north of Interstate 70 to the south city limits near Waterwell Road carrying traffic between the City's north central and southern commercial districts and is a principal street carrying north/south traffic through the central portion of the City. M. NORTII STREET is a major arterial street running from the west city limits to the east city limits and is a principal street carrying east/west traffic through the north portion of the City. N. OIIlO STREET is a major arterial street running south from one of the Interstate 70 interchanges to the south city limits and is the principal street carrying north/south traffic on the east-central side of the City. 0. PACIFIC A VENUE is a major arterial street running east from Ninth Street to the east city limits and is a principal street carrying east/west traffic through the north portion of the City. P. REPUBLIC A VENUE is a major collector street running east from Centennial Road to the east city limit near the flood levee system and is a principal street carrying east/west traffic through the south portion of the City. Q. SANTA FE AVENUE is a major arterial street running north from Claflin to Otis and is a principal street carrying north/south traffic through the central portion of the City. R. SCIIlLLING ROAD is a major arterial street running west from Ohio Street to Arnold Avenue in the Airport Industrial Area and is a principal street carrying east/west traffic through the south portion of the City. S. SOUTH STREET is a major collector street running east from Broadway Boulevard to Fourth Street and is a principal street carrying east/west traffic through the central portion of the City. T. STATE STREET is a major arterial street running east from Interstate 135 to the central business district and is a principal street carrying east/west traffic through the north portion of the City. U. WATER WELL ROAD is a major arterial street running west from Ninth Street through the south end of a major industrial area to Airport Road, and is a principal street carrying east and west traffic between major industrial commercial and Interstate 135 interchanges. Section 2. That Ash Street, Belmont Boulevard, Broadway Boulevard, Centennial Road, Cloud Street, Country Club Road, Crawford Avenue, Iron Avenue, Magnolia Road, Markley Road, Marymount Road, Ninth Street, North Street, Ohio Street, Pacific Avenue, Republic Avenue, Santa Fe Avenue, Schilling Road, South Street, State Street, and Water Well Road are hereby designated and established as "main trafficways" pursuant to K.S.A. 12-685. Section 3. To provide adequate connections with the Ohio Street main trafficway in order to relieve traffic congestion and mitigate traffic safety issues related to the construction of the North Ohio Railroad Overpass and related improvements it is necessary to establish the following as trafficway connections. A. VAN HORNE STREET -At and near its connection with North Ohio Street. B. YORK STREET -At and near its connection with North Ohio Street. C. UNNAMED FRONTAGE ROAD -To be established on former North Ohio Street right-of-way to connect area streets with realigned North Ohio Street. Section 4. That Ordinance Number 93-9562 is hereby repealed. Section 5. That this ordinance shall be in full force and effect from and after its adoption and publication once in the official city newspaper. [SEAL] ATTEST: Lieu Ann Nicola, City Clerk Introduced: February 11, 2002 Passed: February 25, 2002 Affidavit of. Publication F;'ollowing is a true and correct copy of _________ Ord. __ N_o_._02_-1_0071 _____________ _ together with proof of publication of the same. AFFIDAVIT I Kim Norwood , -----~=~=z:.=.;;:;..=;.=.. ___ , being duly sworn, declare that I am the Advertising Manager of THE SALINA JOURNAL, a daily newspaper published at Salina, Saline County; Kansas, and of general clrculatlon In said county, which newspaper has been continuously and unln· terruptedly published for five consecutive years prior to first publication of attached notice, and that the attached __ ·_. Ord. No. 02-10071 has been correctly published in said newspaper __ 1 __ times, ________ the first publication being given lnthelssueof~~ ,19 ~ ~~uM?cJ Subscribed and sworn to before me, this I ~-1- ....._~f'-(.,""'h;.....:....._...__ A.D.~!i.WZ.. Krlstll 11. 5"tcn. Mayor ISEAll ATTEST: /f/lJeuAnnNICOla City~ "' "' z ll.. w CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS May 22,2017 4:00 p.m. The City Commission convened at 2:30 for Discussion on Ethics Policy and at 3:45 p.m. for Citizens Forum. 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 silence. Those present and comprising a quorum: Mayor Kaye J. Crawford (presiding}, Commissioners Jon Blanchard, Trent Davis, Melissa Rose Hodges, and Karl Ryan. Also present Jason Gage, City Manager; Greg Bengtson, City Attorney; and Shandi Wicks, City Clerk. AWARDS AND PROCLAMATIONS (3.1) The week of May 21-27, 2017 as "National Public Works Week" in the city of Salina. John Harvey with the Public Works Deparbnent read the proclamation and announced associated events. Mayor Crawford stated public works was very important and thanked l\1r. Harvey and all public works employees for all of their hard work. (3.2) Mayor Crawford recognized outgoing Master Police Officer Rande Repp. Mayor Crawford read a short biography on Officer Repp and thanked him for his years of service to the City of Salina and the community. Officer Repp thanked the city of Salina for allowing him to serve the citizens of Salina. CmZENS FORUM Judy Larson, 2130 E. Crawford, provided an update on the infestation of mice in her apartment and read a portion of the state law pertaining to the duties of landlords and felt the city ordinances should mirror the state statute. Mayor Crawford asked Ms. Larson if she had put her information in writing. Ms. Larson stated she had stacks of letters she had written to the landlord. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN nME None. CONSENT ACENDA {6.1) Approve the minutes of May 15, 2017. (6.2) Accept a proposed permanent easement from the Salina Airport Authority for the purpose of installing and maintaining an emergency siren in the parcel located southeast of the intersection of Tony's Road and Hein Avenue. 17-0138 Moved by Commissioner Davis, seconded by Commissioner Ryan, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. ADMINISTRATION Page 1 z c. "' .. c ~ Ill i l (7.1) Resolution No. 1?-7456 authorizing the Mayor to sign Supplemental Agreement No. 1 for the Downtown Streetscape Improvements Agreement with HOR, Inc., City Project No. 70012. Jim Kowach, Director of Public Works, explained the supplemental agreement, project, fiscal impact and action options. Commissioner Davis asked if the site plans for The Alley and the hotel would be submitted by the deadline. Mr. Kowach stated staff felt they would get the information needed to keep the design phase on track. Commissioner Hodges thanked staff and HDR, Inc. for coming in under budget on the original agreement for services. She also asked if elecbical access would be available in the landscaping areas. Mr. Kowach stated there would be electrical access in the landscaping areas. Commissioner Blanchard asked when during the phasing would the access plans for merchant and tenant access occur. Rob Krewson, Project Manager with HDR, Inc., stated the maintenance of traffic and pedestrian access design was part of the construction phasing under Task 7 on Page 7 of the Supplemental Agreement. Commissioner Blanchard asked for staff thoughts on the bonding and financing of the project. Jason Gage, City Manager, stated it would be best for the bonds and financing to occur when the construction contract, insurance and bonds for the Downtown Streetscape project would be completed. He continued to state the private projects would be started at different times based on each project's timeline so all projects would be completed around the same time. He continued to state the bonding and financing would probably occur in mid to late spring of 2018. A conversation ensued between Commissioner Blanchard anc:I Mr. Gage regarding the bonding and financing of the project and the timeline of the private projects. Commissioner Blanchard asked if there would be a public education process to inform citizens and downtown owners and merchants of the project timeline. Mr. Kowach stated there would be public meetings and meetings with property owners during the summer. He continued by stating staff would have a better idea of how the phasing of the project would work in conjunction with the water line replacement project. Mr. Gage stated staff would be working on transferee agreements with property owners for incentives to work on building projects in conjunction vdth the streetscape project for completion at the same time. Mr. Krewson stated there would be a communication plan developed within the project and provided to the contractor to utilize during the construction of the project. 17-0139 Moved by Commissioner Davis, seconded by Commissioner Hodges, to adopt Resolution No. 17- 7456 authorizing the Mayor to sign Supplemental Agreement No. 1 for the Downtown Streetscape Improvements Agreement with HDR, Inc., City Project No. 70012 for an amount not to exceed $800,000. Aye: (5). Nay: (0). Motion carried. (7.2) First reading Ordinance No. 17-10883 designating certain streets as main trafficways. Jim Kowach, Director of Public Works, explained the state statute and trafficway designations. Page 2 z c.. w ~ ~ "' t ~ 11 17-01!0 Commissioner Davis stated he assumed Mulberry Street qualified because it '"'as a main street to the Tony's Pizza Event Center. Mr. Kowach stated Mulberry Street would be considered a main traffiC\-vay due to the inclusion in the Downtown Streetscape project. Commissioner Blanchard asked if the street designation would change any functions or operations by staff. Mr. Kowach stated the only change that would occur would be how the streets would be plowed for snow. Judy Larson, 2130 E. Crawford, asked if there would be any changes to the 4th Street railroad tracks. Mr. Kowach stated no. Moved by Commissioner Hodges, seconded by Commissioner Ryan, to pass Ordinance No. 17- 10883 designating certain streets as main ttafficways pursuant to KS.A. 12-685 on first reading. Aye: (5). Nay: (0). Motion carried DEVELOPMENT BUSINESS None. OmER BUSINESS Commissioner Davis asked if staff could look at the local code compared to state statute pertaining to elimination of rodents. Gary Hobbie, Director of Development Services, stated the local code included requirements for pest elimination and staff had been in contact with the landlord and the maintenance crew of the aparbnent complex. He also stated staff had taken pictures of the facility. Commissioner Blanchard stated he was appreciative of the Public Works Deparbnent for their work after the storms and thanked the staff that was available for the Pedal Power Festival. He continued to state he was thankful for staff working with the tenants that were displaced at the Byron Aparbnents. Commissioner Hodges mentioned the creation of entertainment districts for outdoor alcohol consumption by the State of Kansas and asked if it could be incorporated into the future plans for downtown. Jason Gage, City Manager, stated staff could look at the new law and put information together to bring it back to the City Commission in the near future. Commissioner Hodges stated a citizen had asked at a past meeting if the City Commissioners' personal email addresses and contact information could be put on the city's website. Commissioner Blanchard asked i1 there would be any issues for commissioners receiving emails individually. Greg Bengtson, City Attorney, stated commissioners would have to be aware of quasi-judicial and ex parte matters. A conversation ensued between the Commission and Mr. Gage regarding the accessibility of the commissioners' email adciiesses. ADJOURNMENT 17-0141 Moved by Commissioner Davis, 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 4:52 p.m. Page 3 [SEAL) ATIEST: !:JIL~U). Shandi Wicks, CM~c·tt. C ' 1·/ lerk Page4 z n. w i CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS JuneS,2017 4:00p.m. The City Commission convened at 2:00 for Budget: Prior Year & Year to Date Performance; Budget Process & Calendar Overview and Budget Goals; Continuation Discussion on Ethics Policy and at 3:45 p.m. for Citizens Forum. 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 silence. Those present and comprising a quorum: Mayor Kaye j. Crawford (presiding), Commissioners Jon Blanchard, Trent Davis, Melissa Rose Hodges, and Karl Ryan. Also present: Jason Gage, City MfU1ager; Michael Schrage, Deputy City Manager; Greg Bengtson, City Attorney; and Shandi Wicks, City Oerk. AWARDS AND PROCLAMATIONS (3.1) The month of June, 2017 as "LGBT Pride Month" in the city of Salina. Clinton Walker, North Central Chapter of Equality Kansas Chair, read the proclamation and highlighted activities for the event. CmZENS FORUM Jonathan Dong, 352 W. Beloit, asked how the food service for the Salina Fieldhouse would be handled and provided information on the services he could provide. Jason Gage, Oty Manager, stated the initial plan was to keep the concession stand in house and encourage citizens to visit the local restaurants dov.rntown. Commissioner Blanchard provided his thoughts on the proposal received via email from Mr. Dong on behaH of Bowhead Operations and Maintenance Solutions, LLC . . Mr. Gage asked if the Commission would wish to have the topic placed on a future agenda for discussion. He continued to state that there could be regulations on how the operation of the concession stand could occur through the New Market Tax Credits and ST AR Bond financing, staff would need to look into that information before bringing it back to the Commission for discussion. Commissioner Blanchard asked if there was a full service prep kitchen in the facility. Michael Schrage, Deputy City Manager, stated there was not a full use prep kitchen in the facility just warming facilities. Commissioner Blanchard asked if there would be a possibility of using the facility for the summer lunch program. Mr. Schrage stated the facility could be used for the summer lunch program but stated the food was typically prepared off site and delivered to the facility. PuBLJC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN nME None. CONSENT AGENDA Page I (6.1) Approve the minutes of May 22, 2017. (6.2) (6.3) Approve the purchase of a MotoShot Elite AP-R robotic moving target system for use at the Salina Police Range in the amount of $12,226.87 utilizing The Salina Police Department Excellence Fund money. Authorize the Mayor to approve the Supplemental Agreement No. 5 for Consulting Services amending the Dragun Corporation costs from $7,023,000 to $7,073,000 and Specialty Contractors costs from 52,248,000 to $2,292,000 and Change Order No. 1 for Laboratory Services amending the AL.5 Environmental cost from $5,670 to $48,930. 17-0142 Moved by Commissioner Ryan, seconded by Commissioner Davis, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. ADMINISTRATION (7.1) Second reading Ordinance No. 17-10883 designating certain streets as main traf ficways. Mayor Crawford noted that Ordinance No. 17-10883 was passed on first reading on May 22, 2017 and since that time no comments have been received. 17-0143 Moved by Commissioner Hodges, seconded by Commissioner Ryan, to adopt Ordinance No. 17- 10883 on second reading. A roll call vote was taken. Aye: (5) Blanchard, Davis, Hodges, Ryan, Crawford. Nay: (0). Motion carried. (7.2) Resolution No. 17-7458 authorizing and providing for the design and construction of a Police Training Center/Range in the city of Salina, Kansas and providing for the payment of the costs thereof.. Chief Brad Nelson explained the request, the project, fiscal impact and action options. Jason Gage, City Manager, stated the item was to request pre-authorization of the funding for the project. Commissioner Blanchard asked if the project funding would be reclassified in the Capital Improvements Program (CIP). Mr. Gage stated the project was currently listed as a funded project in the CIP. 17-0144 Moved by Commissioner Blanchard, s~onded by Conunissioner Hodges, to adopt Resolution No. 17-7458 authorizing and providing for the design and construction of a Police Training Center/Range in the city of Salina, Kansas and providing for the payment of the costs thereof. Aye: (5). Nay: (0). Motion carried. (7.3) Resolution No. 17-7459 initiating proceedings by the Governing Body for street improvements in the Oty of Salina, Kansas. Dan Stack, City Engineer, explained the request, project, fiscal impact and action options. Commissioner Blanchard asked if the Federal Fund Exchange funds came through the Kansas Department of Transportation (KDOT). Jason Gage, City Manager, stated the Federal Fund Exchange funds were federal funds but were distributed through KDOT. He continued to state the continuation of the program and amount of money received would Page2 depend on the outcome of the future federal budget. 17-0145 Moved by Commissioner Hodges, seconded by Commissioner Davis, to adopt Resolution No. 17- 7459 initiating proceedings by the Governing Body for street improvements in the City of Salina, ; Kansas. Aye: (5). Nay: (0). Motion carried. (7.4) First reading Ordinance No. 17-10888 authorizing and providing for the construction of certain street, waterline, and storm sewer improvements related to the Dovmtown Street project in the city; and authorizing the issuance of General Obligation Bonds and Utility System Revenue Bonds of the city to pay the costs thereof. Jim Kowach, Director of Public Works, explained the request, project, fiscal impact and action options. Jason Gage, City Manager, stated the request was a pre-authorization for the project and there would be a later agenda item today that would authorize the debt for all of the ~ec~ . Commissioner Blanchard stated he felt the City of Salina was ahead of the Salina 2020, Inc. group on the project. Mr. Gage stated the item was just for pre-authorization of the project allowing for the future funding of the project. Commissioner Blanchard asked for additional information on the Utility System Revenue bonds. Mr. Gage stated there was some utility work that was included in the project and the action would be for a pre-authorization to allow for future funding for the project in the future. Commissioner Blanchard asked when the clock would start ticking for the notice period for the Utility System Revenue Bonds. Mr. Gage stated the clock would begin when the notice was published. 17-0146 Moved by Commissioner Hodges, seconded by Commissioner Ryan, to pass Ordinance No. 17- 10888 authorizing and providing for the construction of certain street, waterline, and storm sewer improvements related to the Downtown Streetscape project in the city; and authorizing the issuance of General Obligation Bonds and Utility System Revenue Bonds of the city to pay the costs thereof on first reading. Aye: (5). Nay: (0). Motion carried. (7.5) First reading Ordinance No. 17-10885 authorizing and providing for the construction of certain improvements relating to the Smoky Hill River Renewal Project in the city and authorizing the issuance of General Obligation Bonds of the City to pay the costs thereof. Martha Tasker, Director of Utilities, explained the request, the project, fiscal impact and action options. Commissioner Hodges asked if the concrete channel would be included in the project. Ms. Tasker stated yes, there would still be a concrete channel. 17-0147 Moved by Commissioner Ryan, seconded by Commissioner Davis, to pass Ordinance No. 17-10885 authorizing and providing for the construction of certain improvements relating to the Smoky Hill River Renewal Project in the city and authorizing the issuance of General Obligation Bonds of the City to pay the costs thereof on first reading. Aye: (5). Nay: (0). Motion carried. Page 3 ~ w ~ 1 i 17-0148 17-0149 (7.6) General Obligation Notes and Bonds, Series 2017-A and 2017-1. (7.6a) Resolution No. 17-7457 authorizing the offering for public sale of general obligation temporary notes and bonds. (7.6b) First reading Ordinance No. 17-10886, authorizing the issuance and delivery of general obligation internal improvement bonds. Ben Hart, Interim Director of Finance & Ad.ministration, explained the issuances and projects to be funded. Moved by Commissioner Ryan, seconded by Commissioner Hodges, to adopt Resolution No. 17- 7457 authorizing the offering for public sale of general obligation temporary notes and bonds. Aye: (5). Nay: (0). Motion carried. Moved by Commissioner Ryan, seconded by Commissioner Davis, to pass Ordinance No. 17- 10886, authorizing the issuance and delivery of approximately $6,900,000 principal amount of general obligation internal improvement bonds, Series 2017-A on first reading. Commissioner Blanchard asked for the difference between temporary notes and general obligation bonds. Mr. Hart stated when a project began the City of Salina would issue a temporary note or loan and then the temporary note or loan would become general obligation bonds. A conversation ensued between Commissioner Blanchard, Mr. Hart and Jason Gage, City Manager, regarding the difference between temporary notes and general obligation bonds. Mayor Crawford restated the motion to pass Ordinance No. 17-10886, authorizing lhe issuance and delivery of approximately $6,900,000 principal amount of general obligation internal improvement bonds, Series 2017-A on first reading. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS (8.1) First reading Ordinance No. 17-10884 changing the zoning district classification from R (Single-Family Residential) to 1-2 (Light Industrial) on property addressed as 1123--1127 Van Home. Dean Andrew, Director of Planning, explained the request, affected utilities, Planning Commission recommendation and action options. Commissioner Blanchard asked if there was any thought to rezoning all of the area to I-2. Mr. Andrew stated there had been past discussions of that option but would have to be initiated by either the Planning Commission or the City Conunission. He continued to state that if all of the lots were rezoned to 1-2 the action could cause the residential lots to later request for rezoning if the property owner would need to apply for a home mortgage or Joan as the property would then become non-conforming and loan institutions typically would not loan money on properties that were non-conforming. 17-0150 Moved by Commissioner Hodges, seconded by Commissioner Blanchard, to pass Ordinance No. 17-10884 changing the zoning district classification from R (Single-Family Residential) to 1·2 (Light Industrial) on property addressed as 1123-1127 Van Home on first reading. Aye: (5). Nay: (0). Motion carried. Page4 17-0151 (8.2) First reading Ordinance No. 17-10887 amending the Future Land Use Map (Figure 2.1) of the Salina, Kansas Comprehensive Plan to change the future land use designation of the northwest comer of South Fifth Street and Prescott A venue from future Urban Residential to future Hospital-Medical. Dean Andrew, Director of Planning, explained the request, Planning Commission recommendation and action options. Mayor Crawford asked if the neighbor was in favor of the change. Mr. Andrew stated the fence and trees between the parking lot and the house would remain as was and the request would not affect the property the house was located on. Moved by Commissioner Davis, seconded by Commissioner Hodges, to pass Ordinance No. 17- 10887 amending the Future Land Use Map (Figure 2.1) of the Salina, Kansas Comprehensive Plan to change the future land use designation of the northwest comer of South Fifth Street and Prescott Avenue from future Urban Residential to future Hospital-Medical on first reading. Aye: (5). Nay: (0). Motion carried. QrnER BUSINESS 17-0152 Moved by Commissioner Blanchard, seconded by Davis, to add Item 7.7 to the agenda for continuation of discussion of ethics policy. Aye: (5). Nay: (0). Motion carried. (7.7) Continuation Discussion of Ethics Policy. Greg Bengtson, City Attorney, stated there could be multiple topics to discuss regarding the policy and continued to explain the policy. Commissioner Davis asked if the Special Ethics CoWlSel had a final say or could the decision be further discussed. Mayor Crawford asked if there would be a need to appoint a Special Ethics Counsel. Mr. Bengtson stated an entity could be established ahead of time or could be established at the time a situation arrived and would be needed. A conversation ensued between the Commission, Mr. Bengtson, and Jason Gage, City Manager, regarding the establishment of a Special Ethics Counsel. Commissioner Blanchard asked when the item could be on the agenda for approval. Mr. Gage stated the item could be added to an agenda in the next couple weeks. Commissioner Davis asked when the entrance for the Salina Community Economic Development Organization, Inc. office would be marked. Mr. Gage stated the organization was currently working on their branding and webpage but he would get with the organization on the question. Commissioner Hodges also asked about the requirement for the organization to have a separate entrance. Mr. Gage stated he would refresh himself on the agreement for the organization and contact the organization director to review the requirements. Commissioner Blanchard provided a shout out to Chief Nelson and his staff for their work putting together the Fishing with a Cop event and thanked the Parks & Recreation staff for their work on the event. Commissioner Blanchard also mentioned the 7th Annual North Salina Hog Roast and thanked Steve Rivers and the Community Relations staff for manning a booth for the event, thanked City Manager Jason Gage and his wife for attending and Commissioner Hodges for helping serve food for the event. Pages 17.0153 17-0154 (9.1) Request for executi\'e session (legal). Moved by Commissioner Davis, seconded by Commissioner Blanchard, to recess into executive session for 45 minutes to discuss with legal counsel matters subject to the attorney-client privilege for the reason that public discussion of those matters would waive the privilege and adversely affect the City's interest in the matters and reconvene at 6:15 p.m. Aye: (5). Nay: (0). Motion carried. Commissioner Hodges stated she read in the Kansas Government Journal regarding executive sessions and if a separate motion would be needed for each topic discussed. Greg Bengtson, City Attorney, stated if the topics were related in the same category one (1) motion would only be required. The City Commission recessed into executive session at 5:30 p.m. and reconvened at 6:15 p.m. No action was taken. Moved by Commissioner Blanchard, seconded by Commissioner Hodges, to extend the current executive session for an additional 60 minutes. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 6:15 p.m. and reconvened at 7:15 p.m. No action was taken. ADJOURNMENT 17-0155 Moved by Commissioner Blanchard, seconded by Commissioner Hodges, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 7:15 p.m. [SEAL] AITEST: ~·IJJtj_a Shandi Wicks, CMC, City Clerk Page6 Summary published in The Salina Journal on June~. 2017. Posted on the City of Salina website from June lo to June '2-0 , 2017. ORDINANCE NUMBER 17-10883 AN ORDINANCE DESIGNATING CERTAIN STREETS WITHIN THE CITY OF SALINA, KANSAS, AS MAIN TRAFFICWA YS. WHEREAS, K.S.A. 12-685 er seq. (the "Act") provides that the governing body of any city is authorized and empowered to designate and establish, by ordinance, as a main trafficway, any existing or proposed street, boulevard, avenue or part thereof, within such city, the primary function of which is, or shall be, the movement of through traffic between areas of concentrated activity within the city or between such areas within the city and traffic facilities outside the city performing the function of a major trafficway; and such designation by the governing body shall be final and conclusive; and WHEREAS, Ordinance No. 02-10071 and Ordinance No. 13-10679 designated certain streets as main trafficways pursuant to the Act; and WHEREAS, the Governing Body of the City of Salina, Kansas (the "City"), hereby finds and detennines that cenain additional streets within the City should be designated and established as main trafficways as provided by and under the authority of the Act. SO NOW THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: Section 1. Designation. It is hereby authorized, ordered and directed, under the authority of the Act, that the streets hereinafter set forth located within the limits of the City are hereby designated and established as main trafficways: Mulberry Street Walnut Street Elm Street 4t11 Street 5cti Street 7lll Street Section 2. Summary of ordinance for publication. That this ordinance shall be in full force and effect from and after its adoption and publication once of a summary thereofin the official city newspaper. Ordinance No. 17-10883 Summary On June 5, 2017, the City of Salina, Kansas, passed Ordinance No. 17-10883. The ordinance designates Mulbeny, Walnut, Elm. 41h, 5th, and 7lh Streets as main trafficways within the city limits. A complete copy of the ordinance is available at www.salina-ks.gov for not less than 7 days following publicatipn date of this summary or in the office of the city clerk, 300 W. Ash Street, free of charge. This summary is certified to be legally accurate and sufficient pursuant to the laws of the State of Kansas by the city attorney. Introduced: Passed: [SEAL] '\TIEST: ~ it.. t/) tUrf-" icks, CMC, City Clerk 2 Publisher's Affidavit I, __ _,R,...,o""'xy.y .... B ..... c ..... ld.,.c~n...__ ___ , being duly sworn declare that I am a I cgal Coordinator of THE SALINA JOURNAL, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, which newspaper has been admitted to the mails as second class matter in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice, and that the Ordinance 17-10883 Notice has been correctly published in the entire issue of said newspaper one time, publication being given in the issue of June 9, 2017 -. Subscribed and sworn to before me, this A.D.20 I 7 Primer's Fee 552.50 -·-·-- 1111 EXCERPT OF MINUTES OF A MEETING OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS HELD ON JUNES, 2017 The governing body met in regular session at the usual meeting place in the City, at 4:00 p.m., the following members being present and participating, to-wit: Present: Mayor Kaye J. Crawford (presiding). Commissioners Jon Blanchard, Trent Davis. Melissa Rose Hodges. and Karl Ryan. The Mayor declared that a quorum was present and called the meeting to order. ************** (Other Proceedings) Thereupon, there was presented for first reading an Ordinance entitled: AN ORDINANCE OF THE CITY OF SALINA, KANSAS, AUTHORIZING AND PROVIDING FOR THE CONSTRUCTION OF CERTAIN STREET AND STORMWATER IMPROVEMENTS RELATING TO THE DOWNTOWN STREETSCAPE PROJECT IN THE CITY; AND AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS AND UTILITY SYSTEM REVENUE BONDS OF THE CITY TO PAY THE COSTS THEREOF. Thereupon, Commissioner Hodges moved that said Ordinance be approved on first reading. The motion was seconded by Commissioner Ryan. Said Ordin?Jlce was duly read and considered, and upon being put, the motion for approval was canied by the vote of the governing body, the vote being as follows: Yea: Mayor Kaye J. Crawford. Commissioners Jon Blanchard. Trent Davis, Melissa Rose Hodges, and Karl Ryan. • ••••••••••••• (Other Proceedings) [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] CERTIFICATE I hereby certify that the foregoing Excerpt of Minutes is a true and correct excerpt of the proceedings of the governing body of the City of Salina, Kansas held on the date stated therein, and that the officia · utes of such proceedings are on file in my office. (Signature page to Excerpt of Minutes) EXCERPT OF l\fiNUTES OF A MEETING OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS HELD ON JUNE 12, 2017 The governing body met in regular session at the usual meeting place in the City, at 4:00 p.m., the following members being present and participating, to-wit: Present: Mayor Kaye J. Crawford (presiding). Commissioners Jon Blanchard, Trent Davis. Melissa Rose Hodges, and Karl Ryan. ************** (Other Proceedings) Thereupon, there was presented an Ordinance entitled: AN ORDINANCE OF THE CITY OF SALINA, KANSAS, AUTHORIZING AND PROVIDING FOR THE CONSTRUCTION OF CERTAIN STREET, STORMWATER AND WATER SYSTEM IMPROVEMENTS RELATING TO THE DOWNTOWN STREETSCAPE PROJECT IN THE CITY; AND AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS AND UTILITY SYSTEM REVENUE BONDS OF THE CITY TO PAY THE COSTS THEREOF. Thereupon, Commissioner Hodges moved that said Ordinance be passed. The motion was seconded by Commissioner Ryan. Said Ordinance, having been approved by a first reading on June 5, 2017, was duly read and considered, and upon being put, the motion for the passage of said Ordinance was carried by the vote of the governing body, the vote being as follows: Yea: Mayor Kaye J. Crawford. Commissioners Jon Blanchard, Trent Davis. Melissa Rose Hodges, and Karl Ryan. Thereupon, the Mayor declared said Ordinance duly passed and the Ordinance was then duly numbered Ordinance No. 17-10888, was signed and approved by the Mayor and attested by the Clerk and was directed to be published one time in the official newspaper of the City. ************** (Other Proceedings) [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] On motion duly made, seconded and carried, the meeting thereupon adjourned. CERTIFICATE Summary published in The Salina Journal on June JS._, 20 J 7. Pasted ea fhn c;W gfSaliea website fwm lune j:h ta hme 21 2017 ORDINANCE NO. 17-10888 AN ORDINANCE OF THE CITY OF SALINA, KANSAS, AUTHORIZING AND PROVIDING FOR THE CONSTRUCTION OF CERTAIN STREET, STOR.MWATER AND WATER SYSTEM IMPROVEMENTS RELATING TO THE DOWNTOWN STR.EETSCAPE PROJECT IN THE CITY; AND AUTHORIZING THE ISSUANCE OF GENER.AL OBLIGATION B01''DS AND UTILITY SYSTEM REVENUE BONDS OF THE CITY TO PAY THE COSTS THEREOF. WHEREAS, K.S.A. 12·687 provides that the governing body of any city shall have the power to improve or reimprove or cause to be improved or reimproved, any main trafficway or trafficway connection designated and established under the provisions of K.S.A. 12-685 et seq. (the "Main Trafficway Act"), and such improvement or reimprovement may include grading, regrading, curbing, recurbing, guttering, reguttering, paving, repaving, macadamizing, remacadamizing, constructing, reconstructing, opening, widening, extending, rounding comers, straightening, relocating, building any necessary bridges and approaches thereto, viaducts, overpasses, underpasses, culverts and drainage, trafficway illumination, traffic control devices, pedestrian ways, or other improvements or any cwo or more of such improvements or reimprovements and the acquisition of right-of-way by purchase or condemnation when necessary for any of such purposes; and WHEREAS, the Main Trafficway Act provides that all costS of improvements or reimpro\'ements authorized thereunder, including acquisition of right-of-way, engineering costs, and all other costs properly attributable to such projects, shall be paid by the city at large and may be funded, among others, by the issuance of general obligation bonds; and WHEREAS, the governing body of the City of Salina, Kansas (the "City''), has previously designated certain streets within the City as main trafficways, as provided by and under the authority of the Main Trafficway Act; and WHEREAS, said governing body hereby finds and detennines that it is necessary to improve or re improve said main trafficways, and to provide for the payment of the costs thereof, all as provided by and under the authority of the Main Trafficway Act; and WHEREAS, K.S.A. 12-631 r(a) er seq. (the "Stonnwater Act") provides. in part, that whenever the governing body of any city determines it is necessary to construct storm sewers, channels, retention basins or drains for the purpose of managing the stonn drainage areas of all or any ponion of such city and in the unincorporated areas outside of but within three miles of the corporate limits of such city, the governing body may authorize the construction of such storm sewers, channels, retention basins or drains, such construction shall be authorized by ordinance; such ordinance shall designate where such storm sewers, channels, retention basins or drains shall be located; and WHEREAS, the City is a municipality and operates a public water supply system (the "System"); and WHEREAS, K.S.A. 65-163d through 65-163u, as amended, authorizes any municipality to acquire, construct, reconstruct, improve, equip, rehabilitate or extend all or any part of a public water supply system and to issue general obligation bonds to pay all or part of any costS thereof; and i w " ~ • fl) i 1 0 WHEREAS, K.S.A. 10-1201 et seq., as amended and supplemented authorizes the governing body of the City to repair, alter, extend, reconstruct, enlarge or imprO\'e the System, and further authorizes the costs thereof to be financed by the issuance of utility system revenue bonds of the City; and WHEREAS, the governing body of the City hereby finds and detennines that it is necessary and advisable to improve the System and to provide for the payment of the costs thereof b)' the issuance of general obligation bonds, utility system revenue bonds, a loan from the Kansas State Revolving Fund, and/or other available City funds; WHEREAS, in order to provide for the general health, safety and welfare of the City and its citizens, the governing body of the City has considered the need to construct certain water, stonn sewer, street and related improvements within the City described as follows (the "Project"): ; and ; and Downtown Streetscape. The improvement of Santa Fe Avenue (Elm to Mulberry), and segments of Mulberry Street (711i to 2nd). Ash Street (Santa Fe to 4th), 5th Street (Elm to Mulbeny), Iron Avenue (Santa Fe to 4th) and 4th Street (Iron to Mulberry), including all costs related to the design, engineering and construction of a 3-lane roadway on Santa Fe Avenue, curbing, pedestrian crossings, signage, traffic signalization, sidewalks, landscaping and related irrigation. monuments, lighting, guttering, relocation of water lines and utilities in conjunction therewith, culverts and drainage improvements, improvements to the storm sewer system in such areas, and all other related and necessary improvements WHEREAS, the water system ponion of the Project is more specifically described as: Replacement of water lines, fire hydrants, \'alves, water meter pits, water ser\'ice lines, fire service lines and appurtenances thereto including construction, engineering fees. contingencies and administrative expenses all within an area bound generally by Elm Street on the north, and Mulberry Street on the south and adjacent to Santa Fe A venue WHEREAS, the governing body of the City hereby further finds and detennines that it is necessary and advisable and in the interest of the public health, safety and welfare of the City to authorize the issuance of bonds of the City to provide funds to finance the Project. NOW, THEREFORE, BE IT ORDAL~ED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: Section I. Public Benefit. The gO\•erning body of the City hereby finds and detennines that construction of the Project is in the interest of the public health, safety and welfare of the City and its citizens. The water system ponion of the Project will not cause duplication of any existing water utility service fumished by a private utility in the boundaries of the City. Section 2. fjnancing Authoriiation; Reimbursement. The costs of the Project, interest on interim financing and associated financing costs are hereby authorized to be paid, in whole or in part, from the proceeds of general obligation bonds of the City (the "Bonds"), which are hereby authorized to be issued for such purposes pursuant to the collective authority of the Main Trafficway Act, the Storrnwater Act and K.S.A. 65·163d through 65·163u. The total estimated costs of the Project are $14,650,000, plus interest on any temporary financing and costs of issuance. 2 I f w I l The estimated costs of the water system portion of the Project is $2,500,000. In lieu of issuing general obligation bonds to finance the water system portion of the Project, all or a portion of the costs of the water system ponion of the Project, interest on interim financing and associated financing costs and required debt service reserve funds, may be pennanently financed with the proceeds of utility system revenue bonds of the City issued under authority of K.S.A. JO-I 201 et seq. in an amount notto exceed $3,125,000. The City expects to make expendirures related to the Project prior to the date of issuance of the bonds, and hereby declares its intenl to use proceeds of such bonds to reimburse expenditures made on or after the date which is 60 days before the date orthis Resolution, pursuant to Treasury Regulation § 1.150-2. Section 3. Further Authority. The officials of the City, the City's attorney, Gilmore & Bell, P.C., as bond counsel, and other consultants are authorized lo proceed with such planning and document preparation as necessary in order to comply with the intent of this ordinance, subject to final approval ofsuch documents by the governing body. Section 4. Notice. Before issuing any utility system revenue bonds authorized pursuant to this Ordinance, there shall be published one (1) time in the official newspaper of the City, a notice of the intention of the governing body to undenake the water system portion of the Project and to issue the utility system revenue bonds in substantially the form attached hereto as Exhibit A (the "Notice"). If within fifteen ( 15) days after the publication of the Notice there shall be filed with the Clerk a \\Titten protest against the water system portion of the Project or the issuance of the utility system revenue bonds, signed by not Jess than twenty per cent {20%) of the qualified electors of the City, the governing body shall submit such proposed water system ponion of the Project and the issuance of utility system revenue bonds to the electors of the City at a special election to be called for that purpose as provided by K.S.A. I 0-120 I e1 seq.. If no sufficient protest is filed with the Clerk within the period of time hereinbefore stated, then the governing body of 1he Issuer shall proceed to authorize the water system portion of the Project and to issue the utility system revenue bonds. Section 5. Effecti\'e Date. This Ordinance shall be effective from and after final passage by the go\'eming body. approval and signature by the Mayor and publication once in the official City newspaper by the following summary: Ordinance No. 17-10888 Summary On June 12, 2017, the Go\'eming Body of the City of Salina, Kansas, adopted Ordinance No. 17-10888, aulhorizing and providing for certain improvements related ro lhe Downtown Streetscape Project and authorizing the issuance of general obligation bonds and utility system revenue bonds to pay the costs thereof. The complete text of this ordinance may be obtained or viewed free of charge at the office of the City Clerk, 300 West Ash Street, Salina, Kansas, or on the City•s official website address, www.salina-ks.gov, where a reproduction of the original ordinance will be available for a minimum of one week following this summary publication. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 3 "' ~ ~ ~ .. ~ ~ ii :ii ~ 8 PASSED by a 2/3 vote of the governing body of the City of Salina, Kansas, on June 12! 2017 and APPROVED AND SIGNED by the Mayor. (SEAL) AITEST: I ~di.11Ud (Signature page to Resolution) I PUBLICATION SUMMARY OF ORDINANCE NO. 17-10888, PASSED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS ON THE 12™ DAY OF JUNE, 2017 SUMMARY On June 12, 2017, the Governing Body of the City of Salina, Kansas, adopted Ordinance No. 17-10888, authorizing and providing for the construction of certain street, stonnwater and water system improvements relating to the Downtown Streetscape Project in the City. The complete text of this ordinance may be obtained or viewed free of charge at the office of the City Clerk, 300 West Ash Street, Salina, Kansas, or on the City's official website address, \\'ww.salina-ks.gov, where a reproduction of the original ordinance will be available for a minimum of one week following this summary publication. certified this 12th day of June, 2017. Publish one time and return one Proof of Publication 10 the City Clerk and one to the City Attorney i w {Published in the Salina Jouma/ on June 12_, 20 I 7) EXHIBIT A NOTICE TO: THE RESIDENTS OF THE CITY OF SALINA, KANSAS You are hereby notified that the governing body of the City of Salina, Kansas (the "lssuer") intends to repair, alter, extend, reconstruct, enlarge or improve the City's public water supply system (the "System") by Replacement of water lines, fire hydrants, valves, water meter pits, water service lines, fire service lines and appurtenances thereto including construction, engineering fees: contingencies and administrati\•e expenses aJJ within an area bound generally by Elm Street on the nonh, and Mulberry Street on the south and adjacent to Santa Fe A venue (the "Project") at an estimated cost of $2,500,000. In order to finance costs of the Project and related bond reserves and financing costs, the governing body of the Issuer further intends to issue Utility System Revenue Bonds, in an amount not to exceed $3,125,000 (the "Bonds") in one or more series, under the authority of K.S.A. 10-1201 et seq. (the "Act"). The Bonds will not be general obligations of the Issuer payable from taxation, but shall be payable only from net revenues of the System. The proceeds of the Bonds will be used to pay the costs of the Project and related bond reserves and financing costs. This Notice shall be published one time in the official newspaper of the Issuer, and if within fifteen (15) days after the date of said publication, there shall be filed with the Clerk, a written protest against the Project or the issuance of the Bonds, signed by not less than twenty per cent (20%) of the qualified electors of the City, then the governing body shall submit such proposed Project and the Bonds to the electors of the Issuer at a special election 10 be called for that purpose as provided by the Act. If no sufficient protest is filed within said period of time, the governing body shall proceed with the Project and the issuance of the Bonds. DATED: June 12, 2017. ATIEST: Isl Kaye Crawford, Mayor Isl Shandi Wicks, Clerk Publisher's Affidavit l, Christ)' fink , being duly !>Worn declare that I am a t egaJ Coordinator of lliE SAUNA JOURNAL, a daily newspaper puhlished at Salina, Saline County, Kansas, and of general circulation in said county. which newspaper has been admitted to the mails as second class matter in ~id C'ountr. and rnntinuously and uninterruptedly publishc•d for fo•c COI\SN"Uti\'C )'Cars prior to first publkation ·of attached notice, and that the Ordinance 17·10888 Notice has been correctly pubJishro in thl' entirt> issue of said ncwsilapcr one time, publication being gi\•en in the issue of June15, l ~ Sul~cdl~d .end sworn to llt."f(lrC' mc, this / {p dayof ~ A.0.20 i_2_ .... '--~rn_,~~.Wr /./~ Printer's rec S61.50 Publisher's Affidavit I, __ _..C ... hu..ri..,.s~l)i;_' fu·iwnLDk.._ ___ , being duly sworn declare that I am a I egal Coordinator of Tl IE SALINA JOURNAL, a daily newspaper published at Salina, Saline County, Kansas. and of general circulation in said county, which newspaper has hc.-cn admitted to the mails as second class matter in said county, and continuously and uninterruptedly published for li\·e conscc-utivc years prior to first . ' ... '/ : pubJieatirin; of altached notice, and that the Exhibit A Notice has been correctly published in the entire issue of said newspaper one time, publication being given in the issue of June 15, 2017 C. 9' u~lu ~iJ c -/.. SubcrilX!d and sworn to lX"forc me, this / ~ L A.D.20 /7 Printer's fee S133.50 EXCERPT OF MINUTES OF A MEETING OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS HELD ON JUNE 5, 2017 The governing body met in regular session at the usual meeting place in the City, at 4:00 p.m., the following members being present and participating, to-wit: Present: Mayor Kaye J. Crawford (presiding), Commissioners Jon Blanchard, Trent Davis. Melissa Rose Hodges, and Karl Ryan. Absent: The Mayor declared that a quorum was present and called the meeting to order. * * * * * * * • * * * * • • (Other Proceedings) Thereupon, there was presented a Resolution entitled: A RESOLUTION AUTIIORIZING AND PROVIDING FOR mE DESIGN, CONSTRUCTION AND IMPROVEMENT OF A PUBLIC BUILDING IN THE CITY OF SALINA, KANSAS AND PROVIDING FOR THE PAYMENT OF THE COSTS THEREOF. Thereupon, Commissioner Blanchard moved that said Resolution be adopted. The motion was seconded by Commissioner Hodges. Said Resolution was duly read and considered, and upon being put, the motion for the adoption of said Resolution was carried by the vote of the governing body, the vote being as follows: Yea: Mayor Kaye J. Crawford. Commissioners Jon Blanchard, Trent Davis. Melissa Rose Hodges, and Karl Ryan. Thereupon, the Mayor declared said Resolution duly adopted and the Resolution was then duly numbered Resolution No. 17-7458 and was signed by the Mayor and attested by the Clerk. (Other Proceedings) [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] CERTIFICATE I hereby certify that the foregoing Excerpt of Minutes is a true and correct excerpt of the proceedings of the governing body of the City of Salina, Kansas held on the date stated therein, and that the official minutes of such proceedings are on file in my office. (S Shantli Wicks, CMC, City Clerk 2 I RESOLUTION NO. 17· 7458 A RESOLUTION AUTHORIZING AND PROVIDING FOR THE DESIGN, CONSTRUCTION AND L\1PROVEMENT OF A PUBLIC BUILDING IN THE CITY OF SALINA, KANSAS Al\'D PROVIDING FOR THE PAYMENT OF THE COSTS THEREOF. WHEREAS, the City of Salina (the "City") is authorized and empo~\·ered pursuant to K.S.A. 12· 1736 et seq. (the "Act") to erect or construct: acquire a public building or buildings and procure any necessary site therefore and may alter, repair, reconstruct, remodel, replace or make additions to, furnish and equip a public building or buildings; end WHEREAS, the City is authorized and empowered pursuant to the Act to issue general obligation bonds for the purpose of financing the costs associated with the foregoing; and WHEREAS, the governing body of the City hereby finds and determines that it is necessary to authorize and provide for the construction and improvement of certain public buildings in the City, as more fully described herein, and to provide for the payment of the costs thereof. NOW, THEREFORE, BE IT RESOLVED BY THE GOVER!~ING BODY OF THE CIT\' OF SALINA, KANSAS, AS FOLLOWS: Section l. Project Authorization. The governing body of the City hereby finds and detennines that it is necessary to make the following improvements: The design: construction and improvement of a new police training facility, including an approximately 18,000 square foot building, a garage, adjacent surface parking, various equipment and furnishings, and all other necessary impro\•ements related thereto (the 11Jmprovements"). Section 2. Project Financing. The estimated cost of the lmpro\•ements is $4,900,000. The cost of the Improvements and the associated financing costs shall be payable from the proceeds of general obligation bonds of the City issued under the authority of the Act. Section 3. Reimbursement. The City expects to make capital expenditures in connection with the Impro\'ements and intends to reimburse itself for such expenditures with the proceeds of general obligation bonds and/or temporary notes in an amount not to exceed $4,900,000, plus associated financing costs and costs of issuance. Any general obligation bonds and/or temporary notes issued under 1he authority of this Resolution may be used to reimburse cxpendimres made on or after the date that is 60 days before the date of adoption of this Resolution pursuant to U.S. Treasury Regulation§ I .I 50·2. Section 4. This Resolution shall take effect and be in full force immediately after its adoption by the governing body. ADOPTED Al\'D APPROVED by the governing body of the City of Salina, Kansas, on June 5, 2017. (SEAL) ATTEST: 2 PETITION 4385 TO THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: Cit~' Clerk's Office Flied We, the undersigned, owners of record of property located w.lthln the City of Salina, .Kansas (the "City") do hereby respectively request th&t the Governing Body of the City create and designate an improvement district for the purpose of making certain improvements in the ma.nner provided. by .K.S.A. J2-6a.01, et Self.. 1. The general nature of the proposed Improvement£ are as follows: The curb, gutter, pavement end grading for approximately 1,070 lineal feet of Bentgrass Drlve (the "Street Improvements"). The installation of approximately S6 lineal feet of st<>ml sewer pipe, inlets, and all appurtenances thereto (the "Drainage Improvements"). The installation of approximately 49 lineal feet of six-inch water main, fire hydrant$, valves, fittings, service connections for water lines and all uppurtenances thereto (the "Water System Improvements"). The installation of approximately J,165 lineal feet of eight-inch sanitary sewer ma.in, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sani1ary Sewer Improvements"). (collect:iveJy, the "Improvements"). 2. The atimr.ted or proba.ble cost of the Improvemena ii: Five Hundred Sixty-One Thousand Six Hundred Forty-Two Dollars and Nineteen Cents ($561,642.19) 3. The atent of the proposed improvement dllbict to be useued ii: Lots 7 through 17 and Lots 38 through 43t Block 2, all in the Grand Prairie Addition. City of Salim, Saline Coun1y, Kansas., (the "Improvement Dktrlct"). 4. The proposed' me1hod of assessment thaD be: Each lot in the Improvement District shall be as~cd equally per lot for costs of the various Improvements. 5. 'lbe proposed &pportiomnent of cost between the Improvement Dhttict and the City atLargch: One hundred percent (J 00%} of the total cost of the Improvements shall be asseaaed to the Improvement District and no portion of costs shall be paid by the City at Large. 1 The dgnen of this Petltion hereby request that the Improvements be made without notice and he&ring as required by K.S.A. 12-6a04(a). NAMES MAY NOT BE WITHDRAWN FROM IHE PETITION BY THE SIGNERS THEREOF AFTER THE GOVERNING BODY COMMENCES CONSIDERATION OF THE PETmON OR LATF.R THAN SEVEN (7) DAYS AFl'ER FJLING OF THE PETITION WITH THE CITY CLERK, WHICHEVER OCCURS FIRST. The petitioners certify, under oath. that they have no financial interest in any property with delinquent special assessment anywhere within the city of Salina. CORNERSTONE DEVLOPMENT GROUP, LLC LEGAL DFSCRIPTION OF PROPERTY OWNED W1TBlN THE PROPOSED IMPROVEMENT DISTRICT: Lots 7 through 10, Lots 14 through 17 and Lots 37 through 43, Block 2; Gnnd Prahie Addition, all in the Qty of Salina, Saline County, Kamat. STATE OF KANSAS ) ) SALINE COUNTY ) I, the undenlgned Notary Public, hereby caiffy that the algnatare appearing above t:}tulne and that tlW document Wat liped before me on this IS day of I t la 0 o~.L/.o· c~ '-/ /.3. // Notary Public ' My appointment expires: ~-'Z..a. 1.7 2 File No. 63156 Preliminary Engineering Report Petition No. 4385 ' ' ' //(' Grand Prairib Addition Phase II '-'' ";' ' I _,.,.;; • Utility, Street, and Drainage.lmR(gyernents ' ~ , ' . .. -',,. ~ . December 2016 Wayne E. Nelson, P.E. Petition 4382 Grand Prairie Addition Phase II SCOPE OF WORK The curb, gutter, pavement and grading for approximately 1,070 lineal feet of Bentgrass Drive (the "Street Improvements"). The installation of approximately 56 lineal feet of storm sewer pipe, inlets, and all appurtenances thereto (the "Drainage Improvements"). The installation of approximately 49 lineal feet of six-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1,165 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). BENEFIT DISTRICT Grand Prairie Addition Lots 7 through 17 and Lots 38 through 43, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas. (the "Imprm•ement District"). ADOPTION OF ASSESSMENT The assessment with accrued interest to be levied as a special assessment tax upon the property included with the benefit district concurrent with the general property tax and shall be payable in fifteen equal annual installments. Each parcel in the Improvement District shall be assessed equally per lot for costs of the various Improvements benefitting such lot as described under the heading Apportionment of Cost below. APPORTIONMENT OF COST Eighty percent (80%) of the total cost of improvements shall be assessed to the Improvement District, twenty percent (20%) shall be paid by the developer(s) and no portion of costs shall be paid by the City at Large. 3 Petition 4382 Grand Prairie Addition Phase Il Cost of Improvements Item# Item Quantity Unit Unit Cost Extension 1 Mobilization 1 LS 1,650.00 1,650.00 2 Clearing and Grubbing 1 LS 2,250.00 2,250.00 3 Street grading 5,858 SY 3.40 19,917.20 4 Backfill of Curb and Gutter 4,677 SY 1.00 4,677.00 5 Connect to Existing Inlet 0 Ea 950.00 0.00 6 Storm Pipe, 18" RCP 0 LF 60.00 0.00 7 Curb &Gutter, Sidewalks & 6 Ramps 1 LS 58,115.00 58,115.00 8 Soil stabilization, 8" fly ash (15%) 5,858 SY 6.50 38,077.00 9 Asphalt Pavement 8" 4,568 Tons 37.45 171,071.60 10 6" Water Main 0 LP 0.00 0.00 11 Fire hydrant & valve assembly 3 LF 5,000.00 15,000.00 12 Corporation stop, 1 " 9 LF 570.00 5,130.00 13 Curb shutoff valve & box, 1" 9 Ea 1,100.00 9,900.00 14 Water Service Line, l" 300 Ea 33.00 9,900.00 15 Corporation stop, 11h" 8 Ea 25.00 200.00 16 Wye, IW' 4 Ea 1,300.00 5,200.00 17 Water Service Line, 1 W' 122 LF 35.50 4,331.00 18 Sanitary Sewer Pipeline 8" 1,261 LF 42.00 52,962.00 19 Sanitary Sewer Pipeline 4" 475 LP 33.00 15,675.00 20 Sewer tees, 8" x 4" 17 Ea 96.00 1,632.00 21 Connect to Existing Sewer, 8" l Ea 265.00 265.00 22 Connect to Existing Manhole, 8" 0 Ea 300.00 0.00 23 Standard Sanitary Sewer Manhole 4 Ea 8,500.00 34,000.00 24 Extra Depth Manhole 0 LF 300.00 0.00 25 Trench & Backfill, 6-8 0 LF 2.00 0.00 26 Trench & Backfill, 8-10 0 LF 3.00 0.00 27 Trench & Backfill, 10-12 0 LF 6.00 0.00 28 Trench & Backfill, 12-14 0 LF 8.00 0.00 29 Trench & Backfill, 14-16 0 LF 10.00 0.00 30 Silt fence 2,000 LF 1.50 3,000.00 31 Inlet protection 4 Ea 150.00 600.00 32 Temporary construction entrance 1 LS 2,750.00 2,750.00 33 Temporary seeding 1 LS 2,600.00 2,600.00 34 Construction Staking 1 LS 7,450.00 7,450.00 Subtotal $466,352.80 Contingency (5%) 23,317.64 Developer's Interest 30,000.00 City Expenses 12-6a01 (d) (5%) 23,317.64 Interest, Bonding & Issue (4%) 18,654.11 TotaJ $561,642.19 4 Petition 4382 Grand Prairie Addition Phase II Cost of General Items Item# Item Quantity Unit Unit Cost Extension 1 Mobilization 1 LS 1,650.00 1,650.00 2 Clearing and Grubbing 1 LS 2,250.00 2,250.00 3 Street grading 5,858 SY 3.40 19,917.20 4 Backfill of Curb and Gutter 4,677 SY 1.00 4,677.00 Subtotal General Items $28,494.20 Contingency (5%) 1,424.71 Developer's Interest 3,750.00 City Expenses 12-6a01 (d) (5%) 1,424.71 Interest, Bonding & Issue 1,139.77 Total $36,233.39 Cost of Street and Storm Improvements Item# Item Quan tit~ Unit Unit Cost Extension 5 Connect to Existing Inlet 0 Ea 950.00 0.00 6 Storm Pipe, 18" RCP 0 LF 60.00 0.00 7 Curb and Gutter, Sidewalks & 6 Ramps 1 LS 58,115.00 58,115.00 8 Soil stabilization, 8" fly ash (15%) 5,858 SY 6.50 38,077.00 9 Asphalt Pavement 8" 4,568 Tons 37.45 171,071.60 Subtotal Street & Storm $267 ,263 .60 Contingency (5%) 13,363.18 Developer's Interest 7,500.00 City Expenses 12-6a01 (d) (5%) 13,363.18 Interest, Bonding & Issue 10,690.54 Total $312,180.50 5 Petition 4382 Grand Prairie Addition Phase II Cost of Water Improvements Item# Item Quantity Unit Unit Cost Extension 10 6" Water Main LF 0.00 $0.00 11 Fire hydrant & valve assembly 3 LF 5,000.00 15,000.00 12 Corporation stop, l" 9 LF 570.00 5,130.00 13 Curb shutoff valve & box, 1" 9 Ea 1,100.00 9,900.00 14 Water Service Line, l" 300 Ea 33.00 9,900.00 15 Corporation stop, 1 W' 8 Ea 25.00 200.00 16 Wye, IW' 4 Ea 1,300.00 5,200.00 17 Water Service Line, l 1h" 122 LF 35.50 4,331.00 Subtotal Water Main $49,661.00 Contingency (5%) 2,483.05 Developer's Interest 7,500.00 City Expenses 12-6a01 (d) (5%) 2,483.05 Interest, Bonding & Issue 1,986.44 Total $64,113.54 6 Petition 4382 Grand Prairie Addition Phase II Cost of Sanitary Sewer Improvements Item# Item Quan tit~ Unit Unit Cost Extension 18 Sanitary Sewer Pipeline 8" 1,261 LF 42.00 $52,962.00 19 Sanitary Sewer Pipeline 4" 475 LF 33.00 $15,675.00 20 Sewer tees, 8" x 4" 17 Ea 96.00 $1,632.00 21 Sewer wye, 8" x 4" 1 Ea 265.00 $265.00 22 Connect to Existing Manhole, 8" Ea 300.00 $0.00 23 Standard Sanitary Sewer Manhole 4 Ea 8,500.00 $34,000.00 24 Extra Depth Manhole LF 300.00 $0.00 25 Trench & Backfill, 6-8 LF 2.00 $0.00 26 Trench & Backfill, 8-10 LF 3.00 $0.00 27 Trench & Backfill, 10-12 LF 6.00 $0.00 28 Trench & Backfill, 12-14 LF 8.00 $0.00 29 Trench & Backfill, 14-16 LF 10.00 $0.00 Subtotal Sanitary Sewer $104,534.00 Contingency (5%) 5,226.70 Developer's Interest 7,500.00 City Expenses 12-6a01 (d) (5%) 5,226.70 Interest, Bonding & Issue 4,181.36 Total $126,668.76 Cost of Miscellaneous Items Unit Item# Item Quanti!}'. Unit Cost Extension 30 Silt fence 2000 LF 1.50 3,000.00 31 Inlet protection 4 Ea 150.00 600.00 32 Temporary construction entrance 1 LS 2,750.00 2,750.00 33 Temporary seeding LS 2,600.00 2,600.00 34 Construction Staking 1 LS 7,450.00 $7,450.00 Subtotal Miscellaneous $16,400.00 Contingency (5%) 820.00 Developer's Interest 3,750.00 City Expenses 12-6a01 (d) (5%) 820.00 Interest, Bonding & Issue 656.00 Total $22,446.00 7 Petition 4382 Grand Prairie Addition Phase II Property Ownership Grand Prairie Addition Property Owner Block2 Lot7 Cornerstone Development Group, LLC Lot8 · Cornerstone Development Group, LLC Lot9 Cornerstone Development Group, LLC Lot 10 Cornerstone Development Group, LLC Lot 11 Stephen E. Renich Trust Lot 12 Stephen E. Renich Trust Lot 13 Stephen E. Renich Trust Lot 14 Cornerstone Development Group, LLC Lot 15 Cornerstone Development Group, LLC Lot 16 Cornerstone Development Group, LLC Lot 17 Cornerstone Development Group, LLC Lot 37 Cornerstone Development Group, LLC Lot38 Cornerstone Development Group, LLC Lot 39 Cornerstone Development Group, LLC Lot40 Cornerstone Development Group, LLC Lot41 Cornerstone Development Group, LLC Lot42 Cornerstone Development Group, LLC Lot43 Cornerstone Development Group, LLC 8 Petition 4382 Grand Prairie Addition Phase II Distribution of Cost Block 2 Water SS Street Storm General Misc Total Lot 7 3,017.11 5,960.88 14,690.85 0.00 1,705.10 1,056.28 $26,430.22 Lot 8 3,017.11 5,960.88 14,690.85 0.00 1,705.10 1,056.28 $26,430.22 Lot9 3,017.11 5,960.88 14,690.85 0.00 1,705.10 1,056.28 $26,430.22 Lot 10 3,017.11 5,960.88 14,690.85 0.00 1,705.10 1,056.28 ~26,430.22 Lot 11 3,017.11 5,960.88 14,690.85 0.00 1,705.10 1,056.28 $26,430.22 Lot 12 3,017.11 5,960.88 14,690.85 0.00 1,705.10 1,056.28 $26,430.22 Lot 13 3,017.11 5,960.88 14,690.85 0.00 1,705.10 1,056.28 $26,430.22 Lot 14 3,017.11 5,960.88 14,690.85 0.00 1,705.10 1,056.28 $26,430.22 Lot 15 3,017.11 5,960.88 14,690.85 0.00 1,705.10 1,056.28 $26,430.22 Lotl6 3,017.11 5,960.88 14,690.85 0.00 1,705.10 1,056.28 $26,430.22 Lot 17 3,017.11 5,960.88 14,690.85 0.00 1,705.10 1,056.28 $26,430.22 Lot 37 Platted Open Space & D/U Easement Platted Open Space & D/U Easement Lot38 3,017.11 5,960.88 14,690.85 0.00 1,705.10 1,056.28 $26,430.22 Lot 39 3,017.11 5,960.88 14,690.85 0.00 1,705.10 1,056.28 $26,430.22 Lot40 3,017.11 5,960.88 14,690.85 0.00 1,705.10 1,056.28 $26,430.22 Lot41 3,017.11 5,960.88 14,690.85 0.00 1,705.10 1,056.28 $26,430.22 Lot42 3,017.11 5,960.88 14,690.85 0.00 1,705.10 1,056.28 $26,430.22 Lot43 3,017.11 5,960.88 14,690.85 0.00 1,705.10 1,056.28 $26,430.22 Total $51,290.83 $101,335.01 $249,744.40 $0.00 $28,986.71 $17,956.80 $449,313.75 tThe values in the table above reflects the 80% of the total value of the individual improvements divided by the number of buildable lots in the benefit district. 9 I I z c. w truo11snea m me ~auna Jouma1 on VC."-t.lTIYJt.• '-\Y • ~v 1 ~ J RESOLUTION NUMBER 16-739-l . RESOLUTION SETTING FORTH FINDINGS AND DETERMINA.TIONS OF THE OVERNING BOD\' OF THE CITY OF SALINA, KANSAS ON THE ADVISABfLITY F A.i'lD AUTHORIZING THI CONSTRUCTION OF CERTAIN IMPROVEMENTS URSUANT TO K.S.A.12·6a01 t.I seq. · WHEREAS, a perition was filed with the City Clerk for the City of Salina, Kansas (the City") on December 8, 2016, proposing cenain improvements pursuant to K.S.A. I 2-6a0 J et eq. (the "Petition"); and WHEREAS, the Petition sets fonh: (a) the general nature of the proposed improvements; b) the estimated or probable cost of the proposed impro\•ements; (c) the ex1ent of the proposed mpro\'ement district to be assessed for the cost of the proposed improvements; (d) the proposed ethod of assessment; (e) the proposed apponionment of the cost between the impro\'ement district d the City at large; and (f) a request that such improvements be made without notice and hearing required by K.S.A. l 2·6a04(a); and WHEREAS. the owners of record of 82% the property liable 10 be assessed under the etition ha\'e signed the Petition; and WHEREAS, no signatures ha\•e been withdrawn from the petition before the Governing ody began consideration of the Petition; and WHEREAS, K.S.A. 12·6a04 provides that the Governing Body may authorize and order ublic improvemems without notice and hearing after a sufficient petition has been filed; and WHEREAS, the go\•erning body has reviewed and considered the Preliminary ngineering Estimate and Feasibility Report prepared by the City Engineer and agrees with· the onclusions set fonh therein. NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THI Jn' OF SALINA, KANSAS, AS FOLLOWS: Section t. The Governing Body hereby finds that the Petition is sufficient, and nher finds and detennines that it is necessary and advisable to make the following impro\'emcnts: (a) The nature of the impro\'ements are as follows: The curb, guner, pa\•ement and grading for approximately 1,070 lineal feet of Bentgrass Dri\'C (the ;:Street Improvements"). The installation of approximately 56 lineal feet of stonn sewer pipe, inle1s, and all appurtenances thereto (the "Drainage Jmpro\'ements"). The installation of approximately 49 lineal feet of six-inch water main, fire hydrants, \'al\'es, ftnings, service connections fo_r water lines and all appunenances themo (the 11Water Sysrem Improvements"). ~11111111111 ir11111 m ~ 111111111111rn11 nm m m111nmn111111111 m1 11 ir .• ....-, ... , REBECCA SEEMAN (~t.·~~~-·.r .• )..REGISTER OF DEEDS SAUNE COUNTY KANSAS .. ,,,.•t1 •\•• .:i._;;;.·.,:;)Book:1323 Page: 464-466 ···~~~ •• ~:/Receipt#: 108230 r, l I Recording fee: $0.00 ._.. Pages Recorded: 3 vl'l Date Recorded: 12/30/2016 9:56:26 AM I I -.- (b) Book: 1323 Page: 4£5 The installation of approximately I. 165 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appunenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "lmprO\'ements"). The estimated cost of the Improvements is: Five Hundred Sixty-One Thousand Six Hundred Forty-Two Dollars and Nineteen Cents ($561,642.19). (c) The boundaries of the improvement district to be assessed are: (d) (e) Lots 7 through 17 and Lots 38 through 43, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas. (collectively, the "Improvement Districtn). The apportionment of cost between the Improvement District and the city at large is: Eighty percent (80%) of the total cost of improvements shall be assessed to the Improvement District, twenty percent {20%) shall be paid by the developer(s) prior to 1he City commencing construction of the Improvements and no ponion of costs shall be paid by the City at Large. The method of assessment against property within the Improvement District shall be equally per lot against all lots within the Improvement District. Section 2. The Governing Body hereby declares that the improvements described in his Resolution are necessary, and authorizes them to be made in accordance with the Petition and he findings set forth in this Resolution, and funher authorizes the levying of assessments and the ssuance of bonds therefo_re (upon the satisfaction of cenain conditions set forth in the De\•elopment greement described in Section 4 of this Resolution), all in accordance with K.S.A. 12~a0l er seq .. Section J. The City expects to make capital expendiNres from and after the date of is Resolution in connection with the lmpro\'ements described herein, and intends to reimburse tself for such expenditures with the proceeds of one or more series of general obligation bonds and emporary notes oFthe City in the ma~imum principal amount ofS561,642.19. Section 4. That cenain Development Agreement between Cornerstone evelopment Group, LLC and the City is hereby approved in substantially the form presented to he governing body on this date. The Mayor is authorized to execute the Development greement on behalf of the City, and the Mayor, Clerk and other City s1aff are authorized to take uch funher actions as necessary to carry out the transactions contemplated thereby. Section 5. The City Clerk shall file a certified copy of this Resolution with the egister of Deeds of Saline County, Kansas. 2 I Book: 1323 Page: 466 -· Section 6. This Resolution shall take effect after its passage and publication once in e official city newspaper. "' ~ -~ • j .. l i SEAL) 11,1 ADOPTED AND PASSED this I 9lh day of December, 2016. 3 I hereby cenif)• that the above and foregoing is a true and correct copy of Resolution No. 16-7394 that was adopted by the Governing Body of the City of Salina at their regular meeting on December 19, 2016. Allison Strait Administr.uh-c Assistant Ill Publisher's Affidavit I, ___ c._"hruii.;z.s~ty'-F&;Jiu.nLl!k~---' being duly sworn . declare that I am a I ega! Cnordjnator of THE SALINA JOURNAL, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, which newspaper has been admitted to the n:iails as second class matter in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice, and that the Resolution 16-7394 Notice has been correctly published in the entire issue of said newspaper one time, publication being given in the issue of December 26, Subscribed and S\·vorn to before me, this ;J 7 'tb- day of ~ A.D.20 & t.rn1M LJ, Notal')·P~ Printer's Fee $439.50 The ntda:ioo d l!liiroxil'.alef/56 hal~dst= '8Wflr~.­in!al~ ~llhe 'llrUiage llr{lo1a1•llf). ADOPltDAllD PASSEOll& t9:h&yo10ec:mei,20IS. (d)' The lj!llCll1iDmlen ~~ . hl:::/Can>ld· • t111tiec:IJ'1112tve k: ISU!1 'BltJiQalllOfol -. 1$f$1endi\'(ds, - ollbe mlcci;t ct..... tilC, QJOel\ ··~shal lie assessed IO lhil L~llislricl, twettJPen:ai (M) 1121 be piil llf lhe deft!o9t1{$) prio! ID -lbeCly~ llOllSO'llCti:lollbi! ~&rr:lno pol1ion 111 COll5 shal be pa1 bf Cle Cir II • 'U:ge. (eJ nu1e:tltld DI l$SeSSll81I a¢lS\ pnipet.yr.bh Ille •. ir.PMmell !Xslli:I l\U I I f w CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS December 19, 2016 4:00 p.m. ; The Study Session of the Board of Commissioners was called to order at 2:30 p.m. in Room 107B, City-County Building. Roll call was taken in anticipation of an executive session to be held during study session. Those present and comprising a quorum: Vice-Mayor Karl Ryan (presiding), Commissioners Jon Blanchard, Trent Davis, and Randall Hardy. Also present: Jason Gage, City Manager; Michael Schrage, Deputy City Manager; Greg Bengtson, City Attorney; and Aaron Martin, Oark, Mize & Linville. 16-0481 Moved by Commissioner Blanchard, seconded by Commissioner Hardy, to recess into executive session for 30 minutes to discuss with legal counsel matters subject to the attomey<lient privilege for the reason that public discussion of those matters would waive the privilege and adversely affect the City's interest in the matters and reconvene at 3:10 p.m. Aye: (4). Nay: (0). Motion carried. · Mayor Kaye J. Crawford arrived at 2:49 p.m. The City Commission recessed into executive session at 2:40 p.m. and reconvened at 3:10 p.m. No action was taken. The City Commission convened at 3:15 p.m. for Lower Smoky Hill Water Supply Access District Board Meeting and at 3:45 p.m. for Citizens Forum. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, Oty-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]. Crawford (presiding), Commissioners Jon Blanchard, Trent Davis, Randall Hardy, and Karl Ryan. Also present: Jason Gage, City Manager; lvlichael Schrage, Deputy City Manager; Greg Bengtson, City Attorney; and Shandi Wicks, City Oerk. AWARDS AND PROCLAMATIONS (3.1) Mayor Crawford to recognize outgoing Fire Battalion Chief Calvin Kelsey. Mayor Crawford provided a brief history of Chief Kelsey's employment tenure and thanked him for his service .. Mr. Kelsey expressed his appreciation for the City Manager trusting him as an interim fire chief. (3.2) Mayor Crawford to recognize outgoing Police Captain Chris Trocheck. Mayor Crawford thanked Mr. Trocheck for his years of service. Mr. Trocheck thanked the city of Salina for allowing him to serve the citizens of Salina. (3.3) Presentation.of Certificate of Commendation to Planet Fitness from the Salina Fire Department. Page 1 I I Otlef Royse provided information on Planet Fitness, the emergency incident and presented a Certificate of Commendation to Planet Fitness for the actions of their employees during a medical emergency at their facility a couple months ago. Will Jones, Planet Fitness General Manager, expressed appreciation for the award and stated Planet Fitness in Salina, Kansas would continue to operate with well trained employees aware of their environment. CmZENS FORUM Don Marrs, OMA Architects, provided information on Ordinance No. 16-10847 with an effective date of January 1, 2017 and asked what the effective date meant. He stated his company was hired as the architect for the KU School of Medicine, and explained the effective date of the ordinance could mean the project would fall under a different set of building codes. He continued to state that he had met with the city manager regarding the situation and thought it could be handled administratively. Michael Schrage, Deputy City Manager, stated upon approval of the building codes, staff had anticipated working with applicants beginning January 1, 2017 on the submittal of permits. A conversation ensued between Mr. Marrs, Mr. Schrage and the Commission regarding the implementation of the building codes. Jason Gage, City Manager, explained the Development Review Team was a review process but was not an approval process, he continued to explain the effective date could be controlled by passage of a new ordinance. A conversation ensued between Mr. Marrs, Mr. Gage and the Commission pertaining to the effective date of the building codes conflicting with currently open building permits and newly filed permits. Commissioner Blanchard asked how long the discussions had been going on for the new building codes. Gary Hobbie, Director of Community & Development Services, explained the discussions had begun approximately two (2) years ago. Commissioner Blanchard asked if there were other projects that fell in this category. A conversation ensued between Mr. Gage, Mr. Schrage, Mr. Marrs and the Commission regarding the options available. Jim Bmwn, Building Official, explained how multi-phase projects were handled in relation to the building codes. Mayor Crawford stated staff could work with Mr. Marrs regarding the implementation of the building codes. Commissioner Ryan asked if a special meeting would have to take place to make the change. Mr. Gage sta~ed since the building code was approved via orclinance, the item would have to be approved by the City Commission. A conversation ensued between the Conunission, Mr. Gage and Mr. Marrs on the implementation date. Mr. Gage asked if the Commission would like to 4iscuss the item now or under other business. Conunissioner Ryan stated he thought the item would need to come back to the Commission. Commissioner Davis stated as long as there was awareness given to all others Page2 I z A. w j ~ I 16-04'82 116-0483 who may have projects. The commission reached a consensus to bring the item back to the City Commission at a special meeting. PuBLJC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME (5.1) Public hearing on the 2016 budget amendment. .Michelle Meyer, Director of Finance, explained the amendments. Mayor Crawford opened the public hearing. There being no further comments the public hearing was dosed. Moved by Commissioner Blanchard, seconded by Commissioner Davis, to approve the amended 2016 budget. Aye: (5). Nay: (0). Motion carried. CONSENT AGENDA (6.1) Approve the minutes of December 12, 2016. (6.2) Authorize replacement of two (2) Make-Up Air Units at the Water Treatment Plant, Project No. 63141, in the amount of $20,105 and the Wastewater Treatment Plant (\<\1'\".'TP), Project No. 63139, in the amount of $26,170 to Comfort Heating & Air LLC, Salina, Kansas. (6.3) Authorize the replacement of two (2) roofs at the Wastewater Treatment Plant (\\1'\'\'TP); Gravity Belt Thickener Building No. 12 and Raw Sludge Pump Building No. 2, Project No. 63140, to Wray Roofing, Inc. of North Newton, Kansas, in the amount of $25,948 (Authorized Amount with 10% Construction Contingency, $28,550). (6.4) Award contract for the Sanitary Sewer System Rehabilitation, Project No. 63107 to Utility Solutions, LLC, in the amount of $865,451.64 (Authorized Amount with 10% Construction Contingency, $952,000). (6.5} Adopt Resolution No. 16-7424 authorizing the Mayor to enter into an interlocal cooperation agreement with Saline County, for Power8 {AS/400) computer usage and service, from January 1, 2017 through December 31, 2018. (6.6) Adopt Resolution No. 16-7422 authorizing the City Manager to execute an addendum to the Tria Health agreement with Tria Health for medication therapy management services for two (2) years. (6.7) Adopt Resolution No. 16-7426 approving the Tyler Technology /New World (SSMA) Software Support Maintenance Agreement. (6.8) Adopt Resolution No. 16-7425 concluding the 2016 evaluation of City Manager's performance and periodic review of City Manager's base salary. Commissioner Blanchard wanted to recognize Natalie Fischer, Director of Human Resources, and staff on their hard work on the medication therapy management services. Moved by Commissioner R)•an, seconded by Commissioner Davis, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. ADMJNISTRA TION Page 3 I z 16-otf84 e I ~ 16-0485 (7.1) Second reading Ordinance No. 16-10871 adopting Salina Code Section 20-20 pertaining to criminal history record information. Mayor Crawford noted that Ordinance No. 16-10871 was passed on first reading on December 12, 2016 and since that time no commen'ts have been received. Moved by Commissioner Hardy, seconded by Commissioner Blanchard, to adopt Ordinance No. 16-10871 on second reading. A roll call vote was taken. Aye: (5) Blanchard, Davis, Hardy, Ryan, Crawford. Nay: (0) . .Motion carried. (7.2) Resolution No. 16-7423 expressing support for a proposed Senior Housing Project using Low Income Housing Tax Credit program as offered by the Kansas Housing Resources Corporation for the structures located at 139 Penn Avenue in Salina, Kansas. Gary Hobbie, Director of Development Services, explained the proposed project, Low Income Housing Tax Credit program and action options. Commissioner Blanchard asked for clarification on the architectural aesthetics of the buildings. Mr. Hobbie stated the building was constructed in phases and portions of the building would be demolished but keeping the old historic building. Mayor Crawford stated she was happy to see this project. Moved by Commissioner Ryan, seconded by Commissioner Davis, to adopt Resolution No. 16- 7423 expressing support for a proposed Senior Housing Project using Low Income Housing Tax Credit program as offered by the Kansas Housing Resources Corporation for the structures located at 139 Penn Avenue in Salina, Kansas. Aye: (5). Nay: (0). Motion carried. (7.3) Resolution No. 16-7421 amending the 2017 Comprehensive Fee Schedule for the City of Salina, Kansas to include 2017 water and wastewater rates and Business Improvement District Fees. Michelle Meyer, Director of Finance, explained the rates. Commissioner Blanchard asked what the net effect was in the water meters. Jason Gage, City Manager, stated staff did expect more accurate readings but there could be an impact with the water conservation and excess water usage. Martha Tasker, Director of Utilities, explained there was improvement in the accuracy but also stated there was information coming from Siemens for staff to put into a report to provide to the Commission at a future study session. Commissioner Hardy asked how Jong the meters would last. Ms. Tasker stated approximately tv.•enty (20) years. 16-0486 Moved by Commissioner Blanchard, seconded by Commissioner Hardy, to adopt Resolution No. 16-7421 amending the 2017 Comprehensive Fee Schedule for the City of Salina, Kansas to include 2017 water and wastewater rates and Business Improvement District Fees. Aye: (5). Nay: (0). Motion carried. (7.4) Approval of Petition No. 4385; Resolution No. 16-7394 providing for the advisability and authorization and hnprovement District Development Agreement between the City of Salina and Cornerstone Development Group, LLC for a special improvement Page4 district for water, sanitary sewer, street, and drainage improvements in Grand Prairie Addition, Phase II. Dan Stack, Gty Engineer, explained the petition received; advisability and authorization; agreement and action options. Commissioner Blanchard asked if the soil test and geotechnica] report was part of this item. Mr. Stack stated yes, the contractor would be asked to perform a soil test as part of the projet. Moved by Commissioner Ryan, seconded by Commissioner Davis, to approve Petition No. 4385; adopt Resolution No. 16-7394 providing for the advisability and authorization and Improvement District Development Agreement between the City of Salina and Cornerstone Development Group, LLC for a special improvement district for water, sanitary sewer, street, and drainage improvements in Grand Prarrie Addition, Phase II. Aye: (4). Nay: (1) Blanchard. Motion carried. (7.5) Response to District Court Ruling in Board of County Commissioners of Saline County, Kansas v. City of Salina, Saline County District Court Case No. 2014-CV- 0391 (annexation case). Greg Bengtson, City Attorney, explained the ruling and action options. Commissioner Blanchard asked what a motion to appeal would provide the opportunity for. Mr. Bengtson stated the appeal would enable the court to address the ordinance in question and if either party would like to express an alternative agreement or outcome that opportunity would exist. Moved by Commissioner Blanchard, seconded by Commissioner Hardy, to direct the City's legal counsel to appeal the ruling. Aye: (5). Nay: (0). Motion carried. (i.6) Selection of a person to fill the soon to be vacated City Commission Seat. Jason Gage, City Manager, explained the statutory limitations and the process for selection. Conunissioner Hardy recused himself from the item. Mayor Crawford provided her thoughts on the selection of a new commissioner. Commissioner Ryan provided his thoughts regarding the partisan aspect and on the past election. Greg Bengtson, Cit}• Attorney, requested an executive session with the commission. 16-0489 Moved by Commissioner Blanchard, seconded by Commissioner Ryan, to recess into executive session for 5 minutes to discuss with legal counsel matters subject to the attorney-client privilege for the reason that public discussion of those matters would waive the privilege and adversely affect the Cit}•'s interest in the matters and reconvene at 5:15 p.m. Aye: (4). Nay: (0). Motion carried. The City Commission recessed into executive session at 5:10 p.m. and reconvened at 5:15p.m. Mr. Bengtson stated no names of candidates were discussed in the executive session. Page 5 I I 16-0490 Moved by Commissioner Ryan, seconded by Commissioner Crawford, to appoint Joe Hay Jr. to fill z ... UI .. ¥ ;;; I 16-0491 16-0492 the remaining city commission term of Randall Hardy. Mayor Crawford provided her thoughts on Joe Hay Jr. and his recent running for City Conunission. Commissioner Ryan provided his thoughts on Joe Hay Jr and the support from the community. Commissioner Blanchard thanked the fourteen (14) individuals that submitted their applications and provided his thoughts on the selection for the City Commission seat. Mayor Crawford stated all individuals who submitted an application were qualified and provided her thoughts. Aye: (2). Nay: (2} Blanchard, Davis. Motion failed. Commissioner Blanchard read the list of various characteristics and traits listed on the agenda item that were discussed during the study session and continued to provide his thoughts on the selection for the City Commission seat. Commissioner Davis provided his thoughts on the experience of the interested parties and the knowledge of an individual of city business. A conversation ensued between the commissioners regarding the individuals that submitted and the experience of the interested parties. Moved by Commissioner Davis, seconded by Commissioner Blanchard, to appoint Melissa Rose Hodges to fill the remaining city commission term of Randall Hardy. Aye: (3). Nay: (1) Ryan. Motion carried. Commissioner Ryan provided his thoughts on the selection and thanked all individuals for submitting applications. Commissioner Hardy returned. DEVELOPMENT BUSINESS None. OTHER BUSINESS Commissioner Hardy stated this was his last regularly scheduled commission meeting and provided his thoughts on his term as a City Commissioner. Conunissioner Blanchard provided his thoughts on Commissioner Hardy's term and future success as Senator. Commissioner Davis provided his thoughts and thanked Commissioner Hardy for his help when he first came on as city commissioner. (9.1) Request for executive session (legal). Moved by Conunissioner Davis, seconded by Commissioner Hardy, to recess into executive session for 30 minutes to discuss with legal counsel matters subject to the attorney-client privilege for the reason that public discussion of those matters would waive the privilege and adversely affect the City's interest in the matters and reconvene at 6:10 p.m. Aye: (5). Nay: (0). Motion carried. Page 6 I 16-0493 "' ~ The City Commission recessed into executive session at 5:35 p.m. and reconvened at 6:10 p.m. No action was taken. Moved by Commissioner Ryan, seconded by Commissioner Hardy, to extend the current executive session for an additional 30 minutes. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 6:10 p.m. and reconvened at 6:40 p.m. No action was taken. Moved by Commissioner Ryan, seconded by Commissioner Hardy, to extend the current executive session for an additional 130 minutes. Aye: (5). Nay: (0). Motion carried. The Gty Commission recessed into executive session at 6:40 p.m. and reconvened at 8:50 p.m. No action was taken. ADJOURNMENT 16-0495 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 8:50 p.m. [SEAL] ATTEST: ~lO~ Shandi Wicks, CMC, City Clerk Page 7 DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement'' dated as of December 19, 2016, by and between the City of Salina, Kansas (the "City"), and Cornerstone Development Group, L.LC., a Kansas limited liability company (the "Developer"). WHEREAS, on December 19, 2016, the Developec filed with 1he City Clerk Petition No. 4385 (the "Petition''), pursuant to K.S.A. 12-6a01 et seq. (the "Act"); and WHEREAS, the Petition requests that the City create the Improvement District, construct the Improvements, assess the ·costs thereof against the Improvement District (all as defined in the Petition), and issue the City's general obligation bonds to finance the costs of the Improvements; and WHEREAS, the City has prepared the Preliminaty Engineering and Feasibility Report (the "Feuibility Report") related to the Improvements; and WHEREAS, on December 19. 2016, the City's adopted Resolution No. 16-™ which created the Improvement District and authorized the Improvements to be constructed in accordance with the terms of 1he Petition and upon satisfaction of certain conditions set fonh in this Agreement (the "Advisability Resolution"); and WHEREAS, as a condition to the City constructing the Improvements, the Developer must furnish funding equal to 200.4 of the City's costs of engineering design, c.onstruction, inspectioni temporary note interest, and administration (the "Project Cort''), which shall be used by the City to reduce the amount of Project Cost covered by special assesmnent bond financing. NOW, THEREFORE, in consideration of the foregoing, and of the mutual covenantE and agreements herein contained, and other good and valuable ooosideration, the receipt and suffi.ciea.cy of which are hereby acknowledged, 1he City and the Developer hereby agree as follows: 1. Developer's Financial Contribution. 1.1. Amount md Timing of Contribution. Within 10 days of execution of this Agreement, the Developer shall provide the City with funding in the amount of $112,328.44, which equals 200,1, of the estimated Project Cost. 1.2. City'£ Use of Funds. The City shall apply the funds paid by Developer pursuant to Paragraph 1.1 toward the Project Cost, as a prepayment of special assessments to be levied against property in the Improvement District. 1.3. Addition.al Developer Contribution for my Excess Project Cort. If the total actual Project Cost exceeds $561,642.19, then the Developer shall pay to the City the amount of any such excess to the City within 20 de.ys of receipt of an invoice from the City for such excess Project Cost. The City shall apply such amount solely to payment of Project Costs so that the amount to be assessed to property in the Improvement District does not exceed the amount set forth in the Petition and Resolution creating the Improvement District. 1.4. True-Up of De"eloper Contribution Based on Final Project Cost. lf the total actual Project Cost is less than $561,642.19 (as determined by the Ordinance levying assessments against the Improvement District), then the City shall refund any of the Developer contnoution paid pursuant to Paragraph 1.1 above in excess of an amount that is equal to 20% of such total actual Project Cost, with such amounts refunded to the Developer withjn 20 days of the City's adoption of the Ordi~ce levying the assessments against the Improvement District. l. Constructing the Improvements. The City shall design, construct and install the Improvements, at its own expense, subject to the Developer's pa}ments as provided in Paragraph 1.1 above. The City shall solicit sealed bids and award a contract for construction of the Improvements, and thereafter complete the Improvements with reasonable diligence. The design, construction and installation of the Improvements shall be in accordance with all applicable laws including the City Code. 3. Developer's Contribution of Artistic Element. Prior to the City's completion of the Improvements, the Developer shall furnish and install an artistic element (the "Artistic Element'') within the Improvement District. The Artistic Element shall be furnished and installed at the Developer's sole cost and expense, and in a location subject to public view within the Improvement District. The Developer covenants and agrees to be responsible, at its sole cost and expense, for repairing and maintaining the Artistic Element, and shall take such actions as may be required to keep the Artistic Element in good order, condition, and repair. 4. Waiver. THE DEVELOPER HEREBY AGREES TO WAIVE ANY RIGHTS THAT IT MAY HA VE PURSUANT TO KANSAS STATLTES, THE KANSAS CONSTITUTION, THE UNITED STATES CONSTITUTION, OR AS OTHERWISE PROVIDED BYLAW TO OBJECT TO A.W SPECIAL ASSESSl\IL"ITS REQUESTED IN THE PETmON AND IMPOSED PlJRSUANT TO THE ACT. The Developer acknowledges and agrees that this waiver is freely given and with full knowledge of the extent of all statutory, constitutional or other legal rights being waived thereby, and is given in consideration of the City forming the Improvement District and assisting in providing for the financing and construction of the Improvements. 5, City Emenses; Deposit The Developer shall be responsible for the payment of all non·City employee legal, financial and planning consultants for direct out-of-pocket expenses and other reasonable costs resulting from services rendered to the City to review, evaluate, process and consider the Petition and this Agreement (the "City Expenses'~. Before this Agreement becomes effective, the Developer shall deposit with the City the sum of $2,SOO.OO to pay the City Expenses. If such deposit is insufficient to pay all City Expenses, the Developer shall pay all additional City Expenses within 10 days after presentation of an invoice from the City. If any funds are unused a.fter 120 days from the date the resolution authorizing the Improvement District is approved, then the City shall return such unused funds to the Developer. 2 6. Default and. Terminatfon. The Developer shall be in de:filult of this Agreement if the Developer fails to comply with any obligations set forth in this Agreement This Agreement may be terminated at the option of the City if written notice of event of default has been delivered to the Developer by the City and the Developer bas not cured such default or is not actively pursuing such cure within thirty (30) days after such notice is delivered. 7. Notices. All notices required or permitted to be given pursuant to this Agreement shall be in writing and delivered personally or sent by registered or certified mail, return receipt requested, or by generally recognized, prepaid, commercial oourier or overnight air courier service. Notice shall be considered given when received on the date appearing on the return receipt, but if the receipt is not returned witl:rin five (5) days, then three (3) days after mailed, if sent by registered or certified mail or commercial courier service; or the next business day, if sent by overnight air courier service. Notices shall be addressed as ~ below for each party, provided that if any party gives notice of a change of name or address, notices to the giver of that notice shall thereafter be given as demanded in that notice. CITY: DEVELOPER: 8. General Provi.donr. City Clerk AUn: Jason A. Gage, City Manager P.O. Box 736 Salina, KS 67402-0736 Cornerstone Development Group, L.L.C. Attn: William B. Sheppard, President P.O. Box 1481 Salina, KS 67402-1481 A. No waiver of any provision of this Agreement will be deemed or constitute a waiver of any other provision, nor will it be deemed or constitute a c.ontinuing waiver unless expressly provided for by a written amendment to tbis Agreement signed by both the City and the Developer; nor will the waiver of any defect llllder this Agreement be deemed a waiver of any subsequent default or defaults of the same type. The City's failure to exercise any right under this Agreement, will not constitute the approval of any wrongful act by the Developer or the acceptance of any Improvements. B. The parties to this Agreement may amend or modify this Agreement only by written instrument duly executed by the parties hereto. C. No person or entity who or which is not a party to this Agreement will have any right of action under this Agreement. 3 D. This Agreement constitutes the entire Agreement between the parties, and no statements, promises, or :induc.ements that are not contained in this Agreement will be binding on the parties. This Agreement may not be assigned to any other parties without the prior written consent of the City. E. If any part, term, or provision of this Agreement is held by a court to be illegal or otherwise unenforceable, such illegality or unenforceability will not affect the validity of any other part, tenn, or provision, and the rights of the parties will be construed as of the part, term, or provision was never part of this Agreement F. The City may file a copy of this Agreement in the office of the Register of Deeds for Saline County, Kansas. G. Nothing contained in this Agreement constitutes a ·waiver of the City's sovereign immunity under any applicable state law. H. This Agreement shall be oonstrued in accordance with and governed by the laws of the StateofKansas. [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 4 ~ IN WITNESS WHEREOF, the parties hereunto have executed this Agreement this ~day of Clmh?r , 2016. (Seal) ATTEST: ~ud..tll)tOU STATE OF KANSAS COUN1Y OF SALINE ) )SS. ) CITY OF SALINA, KANSAS On DlDlooarB_, 2016, before me, the undersi~ a Notary .l'ubJic in and for said state, personally appeared Kaye J. Crawford and Shandi Wicks, proved to me on the basis of satisfuctocy evidence to be the persons whose names me subscribed. to the within :instrument as Mayor and City Clerk, respectively, of the Cl1Y OF SALINA, KANSAS, and aclaiowledged to me that they executed the same in their authoriT.ed capacities, and that by their signatures on the inslrumcnt the emity upon behalf of which the persons acted, executed the in£ttumtnt. Wl'I'NFSS my hand and oflicial seal. A ~ ALLISON STRAIT ~ ,_ ~ .. Sl£t of Ke:aa My.c.ppt. Expm I0-2.S-2Q, My commission expires: /0-2-S-2.0 _____ _ NOfaIYPUbliC PrimedName: Al\i5c2'0 $\io.\'\- s {LIN ~S WHEREOF, the parties hereunto have executed this Agreement this ,;{ J day of ..R 4 016. CORNERSTONE DEVELOPME?\"T GROUP, L.L.C. By: STATE OF KANSAS ) ) SS. COUNIYOFSALINE ) On Ac.. ~/ 2016, betOre me, the undersigned, a Notmy Public in and fur said state, personally appeared William E. Sheppard, proved to me on the basis of satisfactory evidence to be the persons whose names are rubscribcd to the within instrument as President, of Cornerstone Development Group, LL.C., a Kansas limited. liability company, and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by he/her signature on the instrument the entity upon behalf of which the person acted, executed thC instrument. WITN"ESS my band and official seal. NotaiyPublic d /A /3 o I/ Printed Name: ________ :J._ _____ _ My commission ex:phes: ,..._., ..... ...,. • • ' ' ., • ' •• ...... ,, -·--.,,._. ... ..,,. L~ ~ 1 :,, .. , .. :· ~ :~,__,. : '.1, ~ ··t ~:·~;'i \:'; !,:, ,.~' ~· • 1 L •. ·: i '~ , ..... ·--.. y~-' . ·~ . ... ".... ., -' .. 6 File No. 63156 Final Engineering Report Petition No. 4385 Grand Prairie Addition Phase II Utility, Street, and Drainage Improvements March 2018 Wayne E. Nelson, P .E. Petition 4382 Grand Prairie Addition Phase II SCOPE OF WORK The curb, gutter, pavement and grading for approximately 1,070 lineal feet of Bentgrass Drive (the "Street Improvements"). The installation of approximately 56 lineal feet of storm sewer pipe, inlets, and all appurtenances thereto (the "Drainage Improvements"). The installation of approximately 49 lineal feet of six-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1, 165 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). BENEFIT DISTRICT Grand Prairie Addition Lots 7 through 17 and Lots 38 through 43, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas. (the "Improvement District"). ADOPTION OF ASSESSMENT The assessment with accrued interest to be levied as a special assessment tax upon the property included with the benefit district concurrent with the general property tax and shall be payable in fifteen equal annual installments. Each parcel in the Improvement District shall be assessed equally per lot for costs of the various Improvements benefitting such lot as described under the heading Apportionment of Cost below. APPORTIONMENT OF COST Eighty percent (80%) of the total cost of improvements shall be assessed to the Improvement District, twenty percent (20%) shall be paid by the developer(s) and no portion of costs shall be paid by the City at Large. 3 Petition 4382 Grand Prairie Addition Phase II This Page Intentionally Left Blank 4 Petition 4382 Grand Prairie Addition Phase II Cost of Improvements Item# Item Quantity Unit Unit Cost Extension 1 Mobilization 1 LS 10,240.90 10,240.90 2 Embankment 2,390 LS 3.30 7,887.00 3 Embankment Contractor furnished 2,488 SY 14.75 36,698.00 4 Clearing & Grubbing 1 SY 2,100.00 2,100.00 5 Geotechnical Report 1 LS 4,500.00 4,500.00 6 Asphalt Pavement, 8" 1,939 Ton 63.05 122,253.95 7 Subgrade modification 6,290 SY 4.50 28,305.00 8 Curb & gutter 2,936 LF 15.15 44,480.40 9 Sidewalk (4')(4") 51 SY 41.50 2,116.50 10 Sidewalk (4')(6") 19 SY 51.05 969.95 11 Sidewalk ramps, Type I 4 Ea 682.50 2,730.00 12 Sidewalk ramp, 8' 2 Ea 787.50 1,575.00 13 Brick stamped red concrete, 6" 79 SY 124.75 9,855.25 14 Water Pipeline, 6" 51 LF 38.10 1,924.05 15 Fire hydrant & valve assembly 3 LF 4,054.05 12,162.15 16 Long service, 1 Yi" 5 LF 1,003.80 5,019.00 17 Long service, 1" 1 Ea 825.30 825.30 18 Short service, 1" 6 Ea 401.10 2,406.60 19 Sewer Pipeline, 8" 1,023 LF 35.70 36,521.10 20 Sewer service pipeline, 4" 830 LF 27.30 22,645.35 21 Sewer tees, 8" x 4" 20 Ea 159.60 3,192.00 22 Connect to Existing Sewer, 8" 1 Ea 420.00 420.00 23 Connect to Existing Manhole 2 Ea 1,260.00 2,520.00 24 Standard Sanitary Sewer Manhole 3 Ea 4,095.00 12,285.00 25 Extra Depth Manhole 18 LF 308.70 5,556.60 26 Construction staking 1 LS 9,219.00 9,219.00 27 Seeding 1 LS 3,538.50 3,538.50 28 Temporary traffic control 1 LS 351.80 351.80 29 Temporary fertilizer, seed and mulch 0 Ac 3,013.50 0.00 30 Temporary slope barrier (silt fence) 697 LF 3.15 2,195.55 31 Temporary Slope Barrier (Biodegradable Log) 58 LF 6.30 365.40 32 Temporary inlet sediment barrier (gravel bags) 0 Lb 2.90 0.00 33 Temporary construction entrance 60 Ton 31.50 1,890.00 34 Erosion Control (Class 1) (Type C) 3,560 SY 1.10 3,915.56 co 1.1 Storm Inlet Modification 1 LS 1,743.90 1,743.90 L.D. Liquidated Damages 1 LS -17,100.00 -17,100.00 Subtotal $385,308.81 City Expenses 12-6a01 (d) (5%) 19,265.44 Interest, Bonding & Issue 17,734.60 Total $422,308.85 5 Petition 4382 Grand Prairie Addition Phase II Cost of General Items Item# Item Quantity 1 Mobilization 1 2 Embankment 2,390 3 Embankment Contractor furnished 2,488 4 Clearing & Grubbing 1 Subtotal General Items City Expenses 12-6a01 (d) (5%) Interest, Bonding & Issue Total Cost of Street and Storm Improvements Item# Item Quantity 5 Geotechnical Report 1 6 Asphalt Pavement, 8" 1,939 7 Subgrade modification 6,290 8 Curb & gutter 2,936 9 Sidewalk (4')(4") 51 10 Sidewalk (4')(6") 19 11 Sidewalk ramps, Type I 4 12 Sidewalk ramp, 8' 2 13 Brick stamped red concrete, 6" 79 Subtotal Street & Storm City Expenses 12-6a01 (d) (5%) Interest, Bonding & Issue Total Cost of Water Improvements Item# Item 14 Water Pipeline, 6" 15 Fire hydrant & valve assembly 16 Long service, 1 Yi" 17 Long service, 1" 18 Short service, 1" Subtotal Water Main City Expenses 12-6a01 (d) (5%) Interest, Bonding & Issue Total Quantity 50.5 3 5 1 6 6 Unit Unit Cost Extension LS 10,240.90 10,240.90 LS 3.30 7,887.00 SY 14.75 36,698.00 SY 2,100.00 2,100.00 $56,925.90 2,846.30 2,620.13 $62,392.32 Unit Unit Cost Extension LS 4,500.00 4,500.00 Ton 63.05 122,253.95 SY 4.50 28,305.00 LF 15.15 44,480.40 SY 41.50 2,116.50 SY 51.05 969.95 Ea 682.50 2,730.00 Ea 787.50 1,575.00 SY 124.75 9,855.25 $216,786.05 10,839.30 9,978.01 $237,603.36 Unit Unit Cost Extension LF 38.10 $1,924.05 LF 4,054.05 12,162.15 LF 1,003.80 5,019.00 Ea 825.30 825.30 Ea 401.10 2,406.60 $22,337.10 1,116.86 1,028.11 $24,482.06 Petition 4382 Grand Prairie Addition Phase II Cost of Sanitary Sewer Improvements Item# Item Quantity Unit 19 Sewer Pipeline, 8" 1,023 LF 20 Sewer service pipeline, 4" 829.5 LF 21 Sewer tees, 8" x 4" 20 Ea 22 Connect to Existing Sewer, 8" 1 Ea 23 Connect to Existing Manhole 2 Ea 24 Standard Sanitary Sewer Manhole 3 Ea 25 Extra Depth Manhole 18 LF Subtotal Sanitary Sewer City Expenses 12-6a01 (d) (5%) Interest, Bonding & Issue Total Cost of Miscellaneous Items Item# 26 Construction staking 27 Seeding Item 28 Temporary traffic control 29 Temporary fertilizer, seed and mulch 30 Temporary slope barrier (silt fence) 31 Temporary Slope Barrier (Biodegradable Log) 32 Temporary inlet sediment barrier (gravel bags) 33 Temporary construction entrance 34 Erosion Control (Class 1) (Type C) CO 1.1 Storm Inlet Modification L.D. Liquidated Damages Subtotal Miscellaneous City Expenses 12-6a01 (d) (5%) Interest, Bonding & Issue Total 7 Quantity Unit 1 LS 1 LS 1 LS 0 Ac 697 LF 58 LF 0 Lb 60 Ton 3559.6 SY 1 LS 1 LS Unit Cost Extension 35.70 $36,521.10 27.30 $22,645.35 159.60 $3,192.00 420.00 $420.00 1,260.00 $2,520.00 4,095.00 $12,285.00 308.70 $5,556.60 $83,140.05 4,157.00 3,826.69 $91,123.74 Unit Cost Extension 9,219.00 9,219.00 3,538.50 3,538.50 351.80 351.80 3,013.50 0.00 3.15 2,195.55 6.30 365.40 2.90 0.00 31.50 1,890.00 1.10 3,915.56 1,743.90 1,743.90 -17,100.00 -17,100.00 $6,119.71 305.99 281.67 $6,707.37 Grand Prairie Addition Block2 Lot 7 Lot 8 Lot 9 LotlO Lot 11 Lot 12 Lot 13 Lot 14 Lot 15 Lot 16 Lot17 Lot37 Lot38 Lot39 Lot40 Lot41 Lot 42 Lot43 Petition 4382 Grand Prairie Addition Phase II Property Ownership Property Owner Cornerstone Development Group, LLC Cornerstone Development Group, LLC Cornerstone Development Group, LLC Cornerstone Development Group, LLC Stephen E. Renich Trust Stephen E. Renich Trust Stephen E. Renich Trust Shawn L. and Kristi L. Carlson Cornerstone Development Group, LLC Cornerstone Development Group, LLC Cornerstone Development Group, LLC Cornerstone Development Group, LLC Cornerstone Development Group, LLC Jeremy B. and Jessica Ryan James D. Markle Revocable Inter Vivas Trust Cornerstone Development Group, LLC Cornerstone Development Group, LLC Cornerstone Development Group, LLC 8 Petition 4382 Grand Prairie Addition Phase II Distribution of Cost Block2 Water SS Street General Misc Total Lot7 1,152.10 4,288.18 11,181.33 2,936.11 315.64 $19,873.36 Lot 8 1,152.10 4,288.18 11,181.33 2,936.11 315.64 $19,873.36 Lot 9 1,152.10 4,288.18 11,181.33 2,936.11 315.64 $19,873.36 LotlO 1,152.10 4,288.18 11,181.33 2,936.11 315.64 $19,873.36 Lot 11 1,152.10 4,288.18 11,181.33 2,936.11 315.64 $19,873.36 Lot12 1,152.10 4,288.18 11,181.33 2,936.11 315.64 $19,873.36 Lot 13 1,152.10 4,288.18 11,181.33 2,936.11 315.64 $19,873.36 Lot 14 1,152.10 4,288.18 11,181.33 2,936.11 315.64 $19,873.36 Lot 15 1,152.10 4,288.18 11,181.33 2,936.11 315.64 $19,873.36 Lot16 1,152.10 4,288.18 11,181.33 2,936.11 315.64 $19,873.36 Lot17 1,152.10 4,288.18 11,181.33 2,936.11 315.64 $19,873.36 Lot37 Platted Open Space & DIU Easement Platted Open Space & D/U Easement Lot38 1,152.10 4,288.18 11,181.33 2,936.11 315.64 $19,873.36 Lot39 1,152.10 4,288.18 11,181.33 2,936.11 315.64 $19,873.36 Lot40 1,152.10 4,288.18 11,181.33 2,936.11 315.64 $19,873.36 Lot41 1,152.10 4,288.18 11,181.33 2,936.11 315.64 $19,873.36 Lot42 1,152.10 4,288.18 11,181.33 2,936.11 315.64 $19,873.36 Lot43 1,152.10 4,288.18 11,181.33 2,936.11 315.64 $19,873.36 Total $19,585.65 $72,898.99 $190,082.69 $49,913.86 $5,365.89 $337,847.08 tThe values in the table above reflects the 80% of the total value of the individual improvements divided by the number ofbuildable lots in the benefit district. 9 "' "' z .... w " ! i J CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS April 2, 2018 4:00p.m. The City Commission convened at 2:00 p.m. for the Police Department Training Center/Range Facility Tour and Presentation (1960 N. Old Highway 40} and at 3:45 p.m. for Citizens Forum. 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 folJowed by the Pledge of Allegiance and a moment of silence. 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 month of April, 2018 as "Fair Housing Month" in the city of Salina. Chris Cadle, Human Relations Commissioner, read the proclamation and announced associated events. (3.2) The month of April, 2018 as "Child Abuse Prevention Month" in the city of Salina. Lori Blake, Child Advocacy and Parenting Services (CAPS) Executive Director, read the proclamation and announced associated events. CmzENS FORUM Judy Larson, Salina, Kansas, provided her thoughts regarding the use of foul language in the community. She continued to provide information regarding a recent experience she was involved in with another individual on the CityGo bus. PuBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. CONSENT AGENDA (6.1) Approve the minutes of March 26, 2018. (6.2) Authorize Amendment No. 1 to the Loan Agreement between the Kansas Department of Health and Environment, acting on behalf of the State of Kansas, and Salina, Kansas for the purpose of financing improvements to the City's water supply and water distribution system. (6.3) Authorize the Mayor to enter into an agreement for eight (8) wastewater pumps with JCI Industries, Inc. of Lee's Summit, Missouri, in the amount of $113,478. (6.4) Award contract for Ninth Street Tree Removal, Project No. 80016B, to Arbors Masters Tree Service of Wichita, Kansas in the amount of $47,900 with a $2,100 (4.4 % ) construction contingency. Commissioner Hay requested that Item 6.4 be removed from the consent agenda. Page 1 18-0117 Moved by Commissioner Davis, seconded by Commissioner Hodges, to approve the consent agenda less item 6.4. Aye: (5). Nay: (0). Motion carried. 18-0118 (6.4) Award contract for Ninth Street Tree Removal, Project No. 800168, to Arbors Masters Tree Service of Wichita, Kansas in the amount of $47,900 with a $2,100 ( 4.4 % ) construction contingency. Commissioner Hay stated there was nearly a $30,000 difference in the engineers estimate and the low bid and asked if staff was comfortable with the low bid. Dan Stack, City Engineer, stated staff had contacted local tree contractors for an estimate of tree removal costs to base the engineers estimate from and stated staff had contacted references for Arbors Masters Tree Service and were happy with the information received. Moved by Commissioner Hay, seconded by Commissioner Davis, to award contract for Ninth Street Tree Removal, Project No. 800168, to Arbors Masters Tree Service of Wichita, Kansas in the amount of $47,900 with a 52,100 (4.4%) construction contingency. Aye: (5). Nay: (0). Motion carried. ADMINISTRATION (i.1) Second reading Ordinance No. 18-10931 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 Lighthouse Properties III, Inc. Com.missioner Hoppock recused himself due to a conflict of interest. Mayor Ryan noted that Ordinance No. 18-10931 was passed on first reading on March 26, 2018 and since that time no comments have been received. 18-0119 Moved by Commissioner Hay, seconded by Commissioner Davis, to adopt Ordinance No. 18- 10931 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 Lighthouse Properties III, Inc. on second reading. A roll call vote was taken. Aye: (3) Davis, Hay, Ryan. Nay: (1) Hodges. Motion carried. Commissioner Hoppock returned to the meeting. (7.2) 2017 Special Assessment Projects (7.2a) Certification of final costs for 2017 special assessment projects and set April 23, 2018 as the date of public hearing. (7.2b) First reading Ordinance No. 18-10932. Mayor Ryan stated that he had a statutory conflict of interest with Kelly Dunn Construction and due to the agenda item being an administrative item and did not involve a contract; he felt he could participate in the discussion and vote today. Greg Bengtson, City Attorney, explained the statutory conflict and stated Mayor Ryan could participate in the discussion if he wished. Dan Stack, City Engineer, explained the projects, assessment costs and action options. Mayor Ryan asked for clarification on the note at the bottom of the Statement of Final Costs pertaining to the actual costs for the River Trail Second Addition project. Mr. Stack stated Page2 I z IL "' .. ~ I the developer costs were higher than anticipated and the maximum amount in the development agreement was due to unforeseen improvements. He continued to state there were two (2) lots sold and the developer could get a waiver from the new property owners and ultimately request through the City Commission to ask for the maximum amount to be increased to cover the additional costs. Commissioner Hodges asked how many lots were still remaining in Phase 1 of Grand Prairie. Mr. Stack stated four (4) lots were remaining to be sold. Commissioner Hodges asked at what point did the land valuation move from an agricultural valuation to a residential lot valuation. Jason Gage, City Manager, stated the valuation change did not have a lot to do with the City of Salina's process but he thought once the property was developed on, the valuation would change to a residential lot valuation. Michael Schrage, Deputy City Manager, stated a change would be affective on January ]st of a given year, he continued to state that the Saline County Appraiser's office would check the stage of development of a property to determine the valuation change. Commissioner Hodges asked how many lots were in Phase 2 of Grand Prairie. Mr. Stack stated 17. Commissioner Hodges asked when street maintenance was performed last on Phase 1 of Grand Prairie. Mr. Stack stated the street was microsurfaced last year. Commissioner Hodges asked how old the first phase of River Trail development was. Wayne Nelson, Civil Engineer II, stated the River Trail development was developed in five (5) phases with the first phase in 1998. Commissioner Hodges asked if the condition of the streets in the River Trail development was in an expected condition based on when it was put in. Mr. Stack stated the street was on the list to be crack sealed and microsurfaced this year. A conversation ensued between Commissioner Hodges, Mr. Stack and Mr. Schrage regarding the valuation of properties. Commissioner Hodges provided her thoughts on the timing for the valuation change on newly developed properties. Mr. Gage stated staff could look at the timing for the valuation change and see if anything could be done. Commissioner Hodges asked if soil testing and construction audits were still taking place for new developments. Mr. Stack stated soil testing was still being completed and staff had looked at valuating asphalt versus concrete for streets. Commissioner Hodges provided her thoughts on the condition of the streets. 18-0120 Moved by Commissioner Hoppock, seconded by Commissioner Hay, to certify the final costs for the 2017 Special Assessment Projects and set the Special Assessment public hearing date for April 23, 2018. Aye: (5). Nay: (0). Motion carried. 18-0121 Moved by Commissioner Hoppock, seconded by Commissioner Hay, to pass Ordinance No. 18- 10932 on first reading. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS None. OTHER BUSINESS Page 3 :II ~ ~ • ~ 19 I ;R ~ 18-0122 Judy Larson, Salina, Kansas, provided additional thoughts on the use of foul language in the community. Commissioner Hodges thanked Jason Gage, City Manager, for sharing an article titled "The Abilene Paradox". She continued to thank Mr. Gage for encouraging the Commission to call a time out if they would need one on a specific agenda item. She continued to ask for guidance for the appropriate way to start the conversations for a time out process. Jason Gage, City Manager, stated it would depend on the topic and staff could assist the Commission in determining the steps to take. ADJOURNMENT 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 4:29 p.m. [SEAL] ATIFST: ~/)j~ Shandi Wicks, CMC, City Clerk Trent W. Davis, M.D., Vice·l\fayor Page4 CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS April 23, 2018 4:00p.m. The City Commission convened at 1:00 p.m. for the Karen M Graves Plaza Dedication at Tony's Pizza Event Center, 2:30 p.m. for Development Group: Special Assessments Discussion and at 3:45 p.m. for Citizens Forum. 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 silence. 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 Oerk. AWARDS AND PROCLAMATIONS Mayor Ryan noted that Item No. 3.3 would be added to the agenda for the Arbor Day proclama lion. 18-0140 Moved by Commissioner Davis, seconded by Commissioner Hay, to add Agenda Item 3.3 for the Arbor Day proclamation. Aye: (5). Nay: (0). Motion carried. (3.1) The day of April 28, 2018 as "Multiple Sclerosis Awareness Day" in the city of Salina. Dean Atteberry read the proclamation and announced associated events. (3.2) Presentation of the AAA Community Traffic Safety Award to the Salina Police Deparbnent by Shawn Steward with AAA Kansas. Shawn Steward provided information about the award and presented the award to Chief Brad Nelson and Sgt. Brent Rupert. (3.3) The day of April 27, 2018 as" Arbor Day" in the city of Salina. Chris Cotten, Director of Parks & Recreation, read the proclamation. CmZEs'lS FORUM None. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME (5.1) Public hearing on the 2017 special assessment projects. (5.la) Second reading Ordinance No. 18-10932 levying special assessments for infrastructure improvements. Mayor Ryan opened the public hearing. Dan Stack, City Engineer, explained the projects, total costs and funding. There being no further comments the public hearing was dosed. Page I 18-0141 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to adopt Ordinance No. 18-10932 levying special assessments for infrastructure improvements on second reading. A roll call vote was taken. Aye: (5) Davis, Hay, Hodges, Hoppock, Ryan. Nay: (0). Motion carried. CONSENT AGENDA (6.1) (6.2) Approve the minutes of April 16, 2018. Award contract for 9th Street Curb & Gutter Improvements, Project No. 80016, to Bryant and Bryant Construction, Inc. in the amount of $586,430 with a 5% construction contingency ($29,321.50). (6.3) Award contract for Parking Lot Entrance Repairs/Sidewalk Ramps, Project No. 80010, to Lancaster Construction of Salina in the amount of $31,770.22 with an $8,739.70 contingency. (6.4) Authorize the Mayor to execute a public utility easement granting a 10 foot utility easement across the south 10 feet of a public parking lot located on Lot 156 on Fifth Street in the Original Town of Salina and to accept the offered public utility easement dedications from Lighthouse Properties III, Inc. and Blue Beacon International, Inc. related to the downtown hotel project. 18-0142 Moved by Commissioner Hodges, seconded by Commissioner Hay, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. ADMINISTRATION (7.1) Resolution No. 18-7550 amending the City of Salina's Slrnred Vision Statement and Strategic Plan for 2018. Jason Gage, City Manager, explained the amendments and action options. Commissioner Davis suggested eliminating the wording "In addition, Salina will begin making efforts to be an environmentally friendly community" in Section 2 subsection (i). l\1r. Gage stated the wording was redundant to wording in another section. The Commission reached a consensus to remove the wording. Commissioner Hoppock asked if the Planning Commission had a chance to review the plan and when the annual meeting with Planning and Zoning Commission would occur. Dean Andrew, Director of Planning, stated a date had not been set but the Planning and Zoning Commission would be glad to work with the City Commission to get a joint time set up for the review of the Comprehensive Plan. The City Commission reached a consensus for Mr. Andrew to work with the Planning Commission to secure a date for the annual meeting. 18-0143 Moved by Commissioner Hoppock, seconded by Commissioner Hay, to adopt Resolution No. 18- 7550 amending the City of Salina's Slznred Vision Statement and Strategic Plan for 2018 with the deletion of the last sentence of Section 2 (i). Aye: (5). Nay: (0). Motion carried. (7.2) Discuss the continued inclusion of the Salina Police Department Training Center project in the 2018-2022 Capital Improvement Plan. Jason Gage, City Manager, explained the project. Chief Nelson showed and explained a presentation regarding the project. Page 2 I ~ z D.. ..., c .E ~ l a I Mr. Gage provided information on the project, project cost, 2018-2022 Capital Improvement Plan project funding and action options. Commissioner Hodges asked if unbacked bonds required the same reserve for deficit. Mr. Gage stated he would have to ask bond counsel for an answer. Commissioner Hodges asked for staff to explain the ORT process and how staff evaluates the process. Michael Schrage, Deputy City Manager, stated the process was optional but the applicant was asked to describe the project which could include site plans; staff would then review the planning and zoning requirements, describing any needed requirements and then would discuss the building and would wrap up with a submittals list of required documents to have a successful project. Commissioner Hodges provided information on the present location and the cost for utility hookups. Mr. Gage stated the cost estimate provided was for on-site utility hookups and all costs for the utility hookup were to be included in the project budget. Commissioner Hodges provided her thoughts on the timing of the project, the potential for collaboration and the project as a whole. Chief Nelson stated there had been work on the project for three (3) years and explained his conversations with the Kansas Highway Patrol on collaboration for the project. He continued to provide his thoughts on the project. Mr. Gage stated the former Saline County Sheriff took the item to the Saline County Commission in the past and they did not have an interest.in the project. Commissioner Hodges continued to provide her thoughts. Mr. Gage asked if the City Commission had interest in another entity controlling the facility but allowing the City of Salina to use at the same cost estimated today. Commissioner Davis stated no and provided his thoughts on the project. Commissioner Hay provided his thoughts on the current facility and the need for the project. Commissioner Hay stated there were projects (Former Schilling Air Force Base, County- Wide communications system, etc.) that the cost was unknown. Mr. Gage stated there were some projects with the costs unknown. He continued to state the Former Schilling Air Force Base cost should be received in a couple weeks, the County-Wide Communications System project cost should be submitted in 3 to 4 months. Commissioner Hay provided his thoughts on other project costs within the 2018-2022 Capital Improvement Plan. A conversation ensued between the Commissfoners, regarding the other projects within the 2018-2022 Capital Improvement Plan and the Salina Police Deparhnent Training Center project moving forward. Mayor Ryan provided his thoughts on the project moving forward and future collaboration for the facility. Commissioner Hoppock asked if a construction manager would still be looked at for the facility. Mr. Gage stated yes at approximately 5%. Commissioner Hoppock asked what the land acquisition would be. Mr. Gage stated until the decision was made to move forward, he did not want to state the amount. Commissioner Hoppock asked how the utilities would be handled. Mr. Gage stated the Page 3 utilities would be available to be hooked up at the location. Commissioner Hoppock asked how much the simulator would cost. Chief Nelson stated approximately $250,000. A conversation ensued between the Commission, Mr. Gage and Chief Nelson on the location of the simulator. Mr. Gage asked if the City Commission would like staff to create an agenda item to bring back to the Commission to allow for solicitation of private donations for the facility. Commissioner Hoppock asked how Chief Nelson would prioritize the two projects (Salina Police Department Training Center and the county-wide communication system). Chief Nelson stated it was a difficult question but he would have to say the Salina Police Department Training Center project. Darrell Wilson, 613 Oakdale Drive, provided his thoughts on the current facility and the need for a new facility. Mike Marshall, Salina, ·former employee of the Salina Police Department, provided his thoughts on the use of a public facility and the need for a new facility. Chris Trocheck, Salina, former employee of the Salina Police Department, provided information on his duty in training of officers as a firearms instructor and his thoughts on the need for a new facility. Ron Styles, retired Lieutenant of the Salina Police Department, provided his thoughts on the need for properly trained officers. Luci Larson, Salina, provided her thoughts on the current facility, the struggle to have a full staff at the police department, other important projects in the community and the need for a new facility to store vehicles and ammunition. Carolyn Peterson, Salina, provided her thoughts on the sense of urgency for the project and the need for the facility. Representative J.R. Oaeys, 69lh District, stated he supported the law enforcement training center, he continued to provide information on the process of the Kansas Highway Patrol budget and stated there was interest in a training facility and range with collaboration with the Salina Police Department. Commissioner Hay asked what type of timeframe would it be. Representative Claeys stated the project would need to be developed this summer with funding request to be reviewed for approval next year. Chief Nelson stated the need for the facility to be larger to accommodate both the Salina Police Department and the Kansas Highway Patrol. A conversation ensued between the Commission and Chief Nelson regarding the look of the new facility if a collaboration occurred with the Kansas Highway Patrol. Commissioner Hodges asked when the project appeared in the Capital Improvement Plan. Chief Nelson stated in 2016 as unfunded, then was added to the 5-year Capital Improvement Plan. Commissioner Hodges asked if the project wouJd be completed in the 5-year cycle or if the project would be completed in the next year. Mr. Gage stated if the project was on a certain year, there was expectation that the project occur in that year. Commissioner Hoppock asked how the project would be funded. Mr. Gage stated through Page4 general obligation bonds. Commissioner Hodges thanked Representative Claeys for his attendance at the meeting. Representative Oaeys provided additional information on options available in the future for collaborations on projects between the State of Kansas and the City of Salina. Commissioner Hay asked if there was a chance for the Kansas Highway Patrol to buy into the project. Mr. Gage stated there were several ways to partner on a project; interlocal agreements or user pay agreements. A conversation ensued between Com.missioner Hay and Mr. Gage regarding partnerships with other entities. Chief Nelson provided information on the reason why the range was designed with outside lanes. Jon Blanchard, 1117 State Street, stated how necessary the new facility was and thanked the commission for the full review of the project. He stated if the facility were to move to a location other than the current facility, it be in close proximity of the police station and asked how was the location logistically worth operationally and if there were any environmental needs for the possible new location. He continued to provide his thoughts on the project. Commissioner Davis provided his thoughts on the training center project and how collaborations with Saline County might occur. Com.missioner Hodges asked if productive conversations could happen between now and January, 2019. Representative Claeys stated yes, he thought a meeting could happen. Commissioner Davis asked if Chief Nelson's meetings with the Kansas Highway Patrol were in regards to collaboration and interest in a new facility. Chief Nelson stated he had two (2) meetings with the Kansas Highway Patrol regarding collaboration and was told the Kansas Highway Patrol was not interested in a new facility. A conversation ensued between the Com.mission and Chief Nelson regarding the project and possible collaboration on the training center. Commissioner Hay provided his thoughts on possible collaborations with the Kansas Highway Patrol. Mayor Ryan provided his thoughts on possible collaborations with other entities including the Kansas Highway Patrol and Saline County. Mr. Gage stated he had conversations with Cornell Weber with the Kansas Highway Patrol regarding a training center and Cornell Weber did not have any interest in a new training center. He continued to provide information on the delays of the project if there would be collaboration with other entities. A conversation continued to ensue between the Commission, Chief Nelson and Mr. Gage regarding possible collaborations with other entities. Commissioner Hoppock provided his thoughts on the project' and the funding of the project. Commissioner Hoppock asked if the count)rv.•ide communication system could be moved out a year. Mr. Gage stated he would have to check into that. Com.missioner Hoppock continued to provide his thoughts on collaboration with the Kansas Highway Patrol. Page S 118-0144 Commissioner Hoppock asked if there was a way to put a ceiling on the project when it went out to bid. Mr. Gage stated the budget could always be re-established and the project go back out for bid but it would probably be in the following year. Commissioner Hodges asked how the new location would affect the department's response time. Chief Nelson stated the current facility location was close in proximity to the department's offices. He continued to state the proposed facility would be in far south Salina but the employees would be in training and not on as active duty. Commissioner Hodges asked about potential environmental effects on the project located in south Salina. Mr. Gage stated that there was a potential for environmental effects but the effects would be reviewed by the designer. Mr. Schrage provided additional information regarding the possible environmental effects. Commissioner Hodges asked if the Commission was interested in looking at a collaboration with the Kansas Highway Patrol. Mayor Ryan stated yes. Commissioner Davis stated no and provided his thoughts. Commissioner Hay stated he would like to see a collaboration but did not want the project construction delayed. Chief Nelson stated there were some add alternates that could be added to the project at a later time. Commissioner Hoppock asked if the Commission took no action would that leave the project in the capital improvement plan as it was currently listed. Mr. Gage stated yes, but staff would need to know if the Commission would like staff to take a specific direction. Moved by Commissioner Davis, seconded by Commissioner Hoppock, to take no action. A conversation ensued between the Commission and Mr. Gage regarding the current project path and possible collaborations. Commissioner Hay asked if the construction cost could be trimmed down if the project was moving forward. Mr. Gage stated yes, the construction cost could be reduced and it would be best for staff to have the information tonight. He continued to state it would be helpful for staff and the bidders to know if the budget was adjusted. Commissioner Hay asked how the Commission would determine what the adjusted budget might be. Mr. Gage stated it ·was difficult and he would not go below $4 million. A conversation ensued between the Commission and Mr. Gage regarding the budget adjustment and the alternates of the project. Commissioner Hoppock asked if the motion would need to be amended. Mr. Gage stated there was not typically a motion to take no action and explained the action options. Greg Bengtson, City Attorney, stated the withdrawal might be the best way to clean the slate. Commissioner Davis withdrew his motion and Commissioner Hoppock withdrew his second. 18-0145 Moved by Commissioner Davis, seconded by Commissioner Hoppock, to preserve the current 5- year Capital Improvement Plan project status for the Police Department Training Center with all remaining project costs not to exceed $4.5 miHion dolJars and to ask staff to work with the designer to provide alternate bid items. Page6 Conunissioner Hodges provided her thoughts on the motion. Commissioner Hay provided his thoughts on the project waiting until 2020. Mayor Ryan called the question. Aye: (3). Nay: (2) Hodges, Ryan. Motion carried. Mayor Ryan called for a 10 minute break at 7:15 pm. The City Commission reconvened at 7:25 p.m. DEVELOPMENT BUSINESS (8.1) First reading Ordinance No. 18-10933 amending Chapter 351 Article XII, Sections 35- 261, 35-262, 35-264, 35-266 and 35-270 to clarify the rights and responsibilities under Sidewalk Caf~ License Agreements approved in the do\\rntovm area. Dean Andrew, Director of Planning, explained the amendments and action options. Commissioner Hoppock asked why the hours were 9pm and 10 pm for beverages to be served on the sidewalk. Mr. Andrew stated he thought it was the preference of the conunission at the time. Commissioner Hoppock provided his thoughts on the time and would be in favor of changing it. Commissioner Hoppock asked why the area was -limited to 200 square feet. Mr. Andrew stated the language allowed for a larger area to be approved by way of petition. Conunissioner Hoppock asked if the ordinance modification had to go to the Planning Commission first. Mr. Andrew stated any modification could be approved by the City Commission. Mr. Andrew stated he did not know if the city manager was aware why the time limit was established. Jason Gage, City Manager, stated he did not know if the time was limited due to the loft living. Michael Schrage1 Deputy City Manager, stated the retail sale of alcohol was allowed from 9:00 a.m. to 10:00 p.m. but the sale of alcohol at an establishment was allowed from 9 am to 2 am. Commissioner Davis asked how close the 200 square foot area was allowed to the curb. Mr. Andrew stated a minimum clear zone between the sidewalk and the curb of 8 foot must be maintained. Mayor Ryan asked what the fencing would look like. Mr. Andrew stated a wrought iron fence would be used for the area. Conunissioner Hodges asked that the time be changed to 12:00 a.m. instead of 2:00 a.m. Mr. Andrew asked if the commission wanted to change the limit of hours of sales in Section 35-268 (4) b to midnight. The consensus was yes. Commissioner Hodges asked if the ch"anges were made to the fac;ade program guidelines to include any non-permanent items only to be funded as part of a larger project and complimentary to primary, fixed improvements. Penny Bettles, Salina Downtown, Inc. Director explained that the guidelines were updated and provided to the City Oerk. 18-0146 Moved by Commissioner Hodges, seconded by Commissioner Hay, to pass Ordinance No. 18- 10933 amending Chapter 35, Article XII, Sections 35-261, 35-2621 35-264, 35-266, 35-268 and 35-270 · to clarify the rights and responsibilities under Sidewalk Cafl! License Agreements approved in the downtown area with the addition of a change to the language in Section 35-268 (4) to allow Page7 z ... w I l! l 0 alcoholic beverages to be served in sidewalk dining areas until midnight instead of 10:00 p.m., on first reading. Aye: (5). Nay: (0). Motion carried. OTHER BUSINESS Jason Gage, City Manager, stated Commissioner Hay asked for an update on the recycling center. Jim Kowach, Director of Public Works, stated the air, soil and water samplings were completed a couple weeks ago. He continued to state staff received the air and soil samples back, the air samples were okay but the soil samples had to be redone and staff was awaiting the results. He also stated staff was hoping for the results in a couple weeks. He additionally stated it looked like the facility would open in late May. Greg Bengtson, City Attorney, stated there was a prospect of action after the executive session. (9.1) Request for executive session (legal). I move the city commission recess into executive session for _ minutes to discuss with legal counsel the subject of the City's legal course of action in response to the decision of the Court of Appeals in the road annexation case based upon the need for consultation with an attorney for the public body which would be deemed privileged in the attorney-client relationship pursuant to KS.A. 45-7319(b)(2). The open meeting will resume in this room at p.m. 18-0147 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to recess into executive session for 10 minutes to discuss with legal counsel the subject of the City's legal course of action in response to the decision of the Court of Appeals in the road annexation case based upon the need for consultation with an attorney for the public body which would be deemed privileged in the attorney-client relationship, pursuant to K.S.A. 45-7319(b)(2). The open meeting will resume in this room at 7:58 p.m. Aye: (5). Nay: (0). Motion carried. 18-0148 The City Commission recessed into executive session at 7:48 p.m. and reconvened at 7:58 p.m. No action was taken. ADJOURNMENT Moved by Commissioner Hay, seconded by Commissioner Hodges, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 7:59 p.m. [SEAL] AITFST: ~·a]~ Shandi Wicks, CMC, City Clerk Karl F. Ryan, Mayor Page8 (Summary published in The Salina Journal on April 30: 2018) (Posted on the City of Salina website from April 24 to May 8, 2018) ORDINANCE NO. 18-10932 AN ORDINANCE LEVYING SPECIAL ASSESSMENTS ON CERTAIN PROPERTY TO PAY THE COSTS OF INTERNAL IMPROVEMENTS IN THE CITY OF SALINA, KANSAS; PROVIDING FOR THE COLLECTION OF SUCH SPECIAL ASSESSMENTS; AND TAKING OTHER RELATED ACTIONS IN CONNECTION WITH SUCH IMPROVEMENTS. WHEREAS, the governing body of the City of Salina, Kansas (the "City") has previously authorized certain internal improvements (the "Improvements") to be constructed pursuant to K.S.A. 12-6a0 I et seq. (the "Act"); and WHEREAS, the governing body on this date has conducted a public hearing in accordance with the Act related to the Grand Prairie Addition Phase II improvement district, as further described below, and desires to levy assessments on certain property benefited by the construction of such Improvements; and WHEREAS, on April 16, 2018, the governing body received a waiver of public hearing and right to protest the levy of special assessment from the owners of I 00% of the property liable for assessment for the cost of the Improvements related to River Trail Second Addition, as further described below, and desires t~ levy assessments on certain property benefited by the construction of such Improvements. NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY, OF SALINA, KANSAS: Section 1. Levy of Assessments. For the purpose of paying the costs of the following described Improvements: Grand Prairie Addition Phase II -Streets, Drainage, Water System, & Sanitary Sewer · Resolution No. 16-7394 The curb, gutter, pavement and grading for approximately 1,070 lineal feet of Bentgrass Drive (the "Street Improvements"); The installation of approximately 56 lineal feet of storm sewer pipe, inlets, and all appunenances thereto (the "Drainage Improvements"); The installation of approximately 49 lineal feet of six-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the ••water System Improvements"); The installation of approximately 1, 165 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"); Rinr Trail Second Addition -Streets, Drainage, Water System, & Sanitary Sewer Resolution No. 16-7365 The curb, gutter, pavement and grading for approximately 2,297 lineal feet of Saddlebrook Drive, Murray Lane, River Trail Road, Michael Circle, and Meredith Circle (the "Street Improvements"); The installation of approximately 345 lineal feet of stonn sewer pipe, inlets, and all appurtenances thereto (the "Drainage Improvements"); The installation of approximately 2,090 lineal feet of six·inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"); The installation of approximately 2, 171 lineal feet of eight·inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"); there are hereby levied and assessed the amounts (with such clerical or administrative amendments thereto as may be approved by the City Attorney) against the property described on Exltibit A attached hereto. Section 2. Payment of Assessments. The amounts so levied and assessed in Section 1 hereof shall be due and payable from and after the date of publication of this Ordinance. Such amounts may be paid in whole or in part within thirty (30) days from the date of publication of this Ordinance. Section 3. Notification. The City Clerk shall notify the' owners of the properties described in Ex/ti bit A attached hereto (insofar as known to the City Clerk) of the amounts of their respective assessments. The notice shall also state that unless such assessments are paid within thirty (30) days from the date of publication of this Ordinance, bonds will be issued therefor, and the amount of such assessment will be collected in installments with interest. Section 4. Certification. Any amount of special assessments not paid within the time prescribed in Section 2 hereof shall be certified by the City Clerk to the Clerk of Saline County, Kansas, in the same manner and at the same time as other taxes are certified and will be collected in annual installments over fifteen { 15) years, together with interest on such amounts at a rate not exceeding the ma-ximum rate therefor as prescribed by the Act. Interest on the assessed amount remaining unpaid between the effective date of this Ordinance and the date the first installment is payable, but not less than the amount of interest due during the corning year on any outstanding bonds issued to finance the Improvements, shall be added to the first installment. The interest for one year on all unpaid installments shall be added to each subsequent installment until paid. Section S. Reimbursement to Denloper for Ri\'er Trail Second Addition Improvements. Pursuant to Resolution No. 16-7365, the governing body approved and the Mayor executed that certain Improvement District Devel.opment Agreement dated as of August 29, 2016 (the "Development Agreement") between KC Development, LLC (the "Developer") and the City. Not\\•ithstanding the terms of the Development Agreement, the governing body hereby approves reimbursement to the Developer in the amount of $723,620.07, which amount represents the actual total eligible costs of the Improvements (as defined in the Development Agreement) less 25% of the City's actual expenses and bond issuance costs. 2 f w Section 6. Effecth·e Date. This Ordinance shall take effect and be in force from and after its passage, approval and publication of the Ordinance or a summary thereof once in the official City newspaper. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 3 PASSED by the governing body of the City on April 23: 2018 and signed and APPROVED A.t'\'D Sl~NED by the Mayor. (SEAL) ATTEST: Shandi Wicks, CMC, City Clerk (Signature Page to Assessment Ordinance) EXHIBIT A GRAND PRAIRIE ADDITION PHASE II ~ STREETS, DRAINAGE, WATER SYSTEM, & SANITARY SEWER RESOLUTION NO. 16-7394 z COLLECTED IN FIFTEEN (15) L.'\'ST ALLMENTS A. w ! Description of Property Amount of Proposed i Assessment la I Lot 7. Block 2, all in the Grand Prairie Addition, City of Salina, 8 Saline County, Kansas $19,873.36 Lot 8, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 9, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 10, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 11, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 12, Block 2, all in the Grand Prairie Addition, City of Salina, Saline Count\', Kansas $19,873.36 Lot 13, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 14, Block 2, all in the Grand Prairie Addition, City of Salina, Saline Countv, Kansas $19,873.36 Lot 15, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 16, Block 2, all in the Grand Prairie A.ddition, City of Salina, Saline Countv, Kansas $19,873.36 Lot 17, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 38, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 39, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 40, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 41, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 42, Block 2, all in the Grand Prairie Addition, City of Salina. Saline County, Kansas $19,873.36 Lot 43, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County. Kansas $19,873.36 TOTAL ASSESSMENTS= 5337,847.08 A-1 RIVER TRAIL SECOND ADDITION STREETS, DRAINAGE, WATER SYSTEM, & SANITARY SEWER RESOLUTION NO. 16-7365 COLLECTED IN FIFTEEN (15) L~STALLMENTS "' ~ z Description of Property Amount of Proposed a.. w Assessment .. . s Lot S, Block 1, all in the River Trail 2nd Addition, City of Salina, ~ I Saline Countv, Kansas $18,710.00 ;i Lot 6, Block I, all in the River Trail 2°d Addition, City of Salina, a c Saline Countv, Kansas $18.7!0.00 8 Lot 7, Block J, all in the River Trail 200 Addition, City of Salina, Saline Countv, Kansas $18,7l0.00 Lot 8, Block J, all in the River Trail 200 Addition, City of Salina, Saline Count\', Kansas $18,7l0.00 Lot 9, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 10, Block I, all in the River Trail 2'1d Addition, City of Salina, Saline County, Kansas $18,710.00 Lot J l, Block l, all in the River Trail 2'x1 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot J 2, Block I, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 13, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline Count\•. Kansas $18,710.00 Lot 14, Block 1, all in the River Trail 2nc1 Addition, City of Salina, Saline Countv, Kansas SI 8,7!0.00 Lot 15, Block I, all in the River Trail 2nd Addition, City of Salina, Saline Countv, Kansas $18.710.00 Lot 16, Block I, all in the River Trail 2nd Addition, City of Salina, Saline Countv, Kansas $18,710.00 Lot 17, Block I, all in the River Trail 2nc1 Addition, City of Salina, Saline Count\•, Kansas SI 8,710.00 Lot 18, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 19, Block l, all in the River Trail 2no Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 20, Block I, all in the River Trail 2no Addition, City of Salina, Saline Count\', Kansas $18,710.00 Lot 21, Block I, all in the River Trail 2n11 Addition, City of Salina, Saline Count\', Kansas $18,710.00 Lot 22, Block I, all in the River Trail 2ad Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 23, Block I, all in the River Trail 2no Addition, City of Salina, Saline County, Kansas $18.710.00 Lot 24, Block 1, all in the River Trail 2na Addition, City of Salina,· Saline Count\', Kansas $18.710.00 Lot 25, Block 1, all in the River Trail 2na Addition, City of Salina, Saline Countv, Kansas $18,710.00 Lot 26, Block 1, all in the River Trail 2n11 Addition, Citv of Salina, SI 8,710.00 A-2 Saline County, Kansas Lot 2, Block 2, all in the River Trail 200 Addition, City of Salina, Saline County, Kansas $18,710.00 :l! Lot 3, Block 2, all in the River Trail 2nc1 Addition, City of Salina, Saline County, Kansas $18,710.00 z Lot 4, Block 2, all in the River Trail 21111 Addition, City of Salina, 11. w Saline Countv, Kansas $18,710.00 .. "' Lot 5, Block 2, all in the River Trail 2PQ Addition, City of Salina, ~ i Saline Countv, Kansas $18,710.00 ~ ;g Lot 6, Block 2, all in the River Trail 200 Addition, City of Salina, a 8 Saline County, Kansas $18,710.00 Lot 7, Block 2, all in the River Trail 2nc1 Addition, City of Salina, Saline Countv, Kansas $18,710.00 Lot 8, Block 2, all in the River Trail 2nc1 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 9, Block 2, all in the River Trail 21111 Addition, City of Salina, Saline County, Kansas $18.710.00 Lot 10, Block 2, all in the River Trail 200 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot JI, Block 2, all in the River Trail 200 Addition, City of Salina, Saline Countv, Kansas $18,710.00 Lot 12, Block 2, all in the River Trail 2°0 Addition, City of Salina, Saline Count\', Kansas $18,710.00 Lot 13, Block 2, all in the River Trail 200 Addition, City of Salina, Saline Count)', Kansas $18,710.00 Lot 14, Block 2, all in the River Trail 200 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 15, Block 2, all in the River Trail 200 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 16, Block 2, all in the River Trail 200 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 17, Block 2, all in the River Trail 2no Addition, City of Salina, Saline Countv, Kansas $18,710.00 Lot 18, Block 2, all in the River Trail 200 Addition, City of Salina, Saline County, Kansas $18, 710.00 Lot 19, Block 2, all in the River Trail 200 Addition, City of Salina, Saline Countv, Kansas SI 8, 710.00 Lot 20, Block 2, all in the River Trail 200 Addition, City of Salina, Saline County, Kansas $18,710.00 TOTAL ASSESSMENTS= $767,110.15 A-3 (Published in the Solina Journal on April 30, 20 I 8) SUMMARY OF ORDINANCE NO. 18-10932 On April 23, 2018, the governing body of the City of Salina, Kansas, passed an ordinance entitled: AN ORDINANCE LEVYING SPECIAL ASSESSMENTS ON CERTAIN PROPERTI' TO PAY THE COSTS OF INTERJ"{AL IMPROVEMENTS L"{ THE CITY OF SALINA, KANSAS; AND PROVIDING FOR THE COLLECTION OF SUCH SPECIAL ASSESSMENTS. The Ordinance levies special assessments on certain property located in Grand Prairie Addition and River Trail Second Addition, which have been benefitted from certain internal improvements constructed pursuant to K.S.A. I 2-6a01 et seq. and provides an opportunity for prepayment, in whole or in part, of the special assessments. A schedule of the amounts of the special assessments and the property benefitted are attached to the Ordinance. Any amount of special assessments not paid within the time prescribed in the Ordinance shall be certified by the City Clerk to the Clerk of Saline County, Kansas, in the same manner and at the same time as other taxes are certified and will be collected in annual installments, together with interest on such amounts at a rate not exceeding the maximum rate therefor as prescribed by law. A complete text of the Ordinance may be obtained or viewed free of charge at the office of the City Clerk, 300 W. Ash Street, Room l 07, Salina, Kansas. A reproduction of the Ordinance is available for not less than 7 days following the publication date of this Summary at www.salina-ks.gov. This Summary is hereby certified to be legally accurate and sufficient pursuant to the laws of the State of Kansas. DA TED: April 21_, 2018. A-4 I Publisher's Affidavit I, __ .-Cb....,..n.,.·s ... ty.,_,.fi,..n..,k ____ , being duly sworn declare that I am a legal CooaUnator of THE SALINA JOURNAL, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, which newspaper has been admitted to the mails as second class matter in said county, and continuously and uninterruptedly published for fi\'e consecutive years prior to first publication of attached notice, and that the Ordinance 18-10932 Notice has been correctly published in the entire issue of said newspaper one time, publication being given in the issue of April 30, 2018 CJ:uu~~' ~ \ 30~ Subscribed and sworn to before me, this I~ dayof --~-------A.D.20 j_f_ Notary Public Printer's Fee S124.so . j CITY OF SALINA, KANSAS ***REVISED*** STATEMENT OF FINAL COSTS GRAND PRAIRIE ADDITION PHASE II STREETS, DRAINAGE, WATER SYSTEM, & SANITARY SEWER RESOLUTION N0.16-7394 CONSTRUCTION COST Construction Cost City Expenses (5%) Total Less Developer's Share (20%) Construction Costs to be Assessed ASSESSMENT AMOUNT Construction Costs to be Assessed Series 2017-I Temporary Notes Interest Series 2017-I Temporary Notes Costs oflssuance Series 2018 Bonds Costs of Issuance Total Project Costs to be Assessed RIVER TRAIL SECOND ADDITION STREETS, DRAINAGE, WATER SYSTEM, & SANITARY SEWER RESOLUTION N0.16-7365 ***REVISED*** CONSTRUCTION COST Construction Cost -Net Reimbursement to Developer after 25% cost share City Expenses (5% of total construction costs) Total Construction Costs to be Assessed Developer's Cost Share (25%) ASSESSMENT AMOUNT Construction Costs to be Assessed Series 2018 Bonds Costs of Issuance Total Project Costs to be Assessed $385,308.81 19,265.44 $404,574.25 ~80,914.85 $323,659.40 $323,659.40 4,810.89 3,665.93 5,710.86 $337,847.08 $723,620.07 32,390.08 $756,010.15 $255,602.28 $756,010.15 11,100.00 $767,110.15 ***REVISED*** ASSESSMENT ROLL CERTIFICATION The undersigned having been designated by the City of Salina, Kansas (the "City"), to detennine the amounts of the respective assessments and to prepare the proposed ***REVISED*** Assessment Roll therefor in connection with certain internal improvements previously authorized by the governing body hereby reports that each and all of the respective assessments have been detennined to be as shown on Scltedu/e I attached hereto and made a part hereof by reference as though fully set out herein. Dated:l\pf"\\ \~ ,2018. SCHEDULE I GRAND PRAIRIE ADDITION PHASE II STREETS, DRAINAGE, WATER SYSTEM, & SANITARY SEWER RESOLUTION NO. 16-7394 COLLECTED IN FIFTEEN (15) INSTALLMENTS Description of Property Amount of Proposed Assessment Lot 7, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 8, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 9, Block2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 10, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 11, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 12, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 13, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 14, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 15, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 16, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 17, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 38, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 39, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $] 9,873.36 Lot 40, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 41, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 42, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 43, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 TOTAL ASSESSMENTS= $337,847.08 RIVER TRAIL SECOND ADDITION STREETS, DRAINAGE, WATER SYSTEM, & SANITARY SEWER RESOLUTION NO. 16-7365 COLLECTED IN FIFI'EEN (15) INSTALLMENTS Description of Property Amount of Proposed Assessment Lot 5, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 6, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 7, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 8, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 9, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 10, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 11, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 12, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 13, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 14, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 15, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 16, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County. Kansas $18,710.00 Lot 17, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 18, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 19, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 20, Block 1, all in the River Trail 2"d Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 21, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline Countv, Kansas $18,710.00 Lot 22, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County. Kansas $18,710.00 Lot 23, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 24, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 25, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 26, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 2, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 3, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 4, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 5, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18.710.00 Lot 6, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 7, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County. Kansas $18,710.00 Lot 8, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 9, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 10, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 11, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 12, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 13, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 14, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 15, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County. Kansas $18,710.00 Lot 16, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 17, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 18, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 19, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 20, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18 710.00 TOTAL ASSESSMENTS= $767,110.15 Publisher's Affidavit 11 ---Cbo1.U<dws,..t)'1-F~i .... nu.ik~---, being duly sworn declare that I am a legal Coordinator \ Subscribed and sworn to before me, this dayof -~--------A.D.20 -1.%_ Printer's Fee $161.00 ! ,< < - > .- < « « • I CERTIFICATE OF MAILING STATE OF KANSAS ) ) ss: COUNTY OF SALINE ) The undersigned, City Treasurer of the City of Salina, Kansas (the "City"), does hereby certify that on April 9, 2018, I caused to be mailed to each and all of the owners of property affected thereby, at their last known post office address, a Notice of Public Hearing and Statement of the Cost Proposed to be Assessed in connection with certain improvements in the City. A sample copy of the form of such Notice of Hearing and Statement of Cost Proposed to be Assessed is attached hereto. SS my hand and seal as of / 2 ~J , 2018. Debbie Pack, City Treasurer {attach sample copy of fonn] NOTICE OF HEARING AND STATEMENT OF COST PROPOSED TO BE ASSESSED April 6, 2018 Shawn & Kristi Carlson 112 Stratford Ct Garden City, KS 67846-9682 Property Owner: You are hereby notified, as owner of record of a portion of the property described below, that there is proposed to be assessed against the property, certain amounts for the costs of the following internal improvements (the "Improvements") previously authorized by the governing body of the City of Salina, Kansas (the "City"): Grand Prairie Addition Phase Il-Streets, Drainage, Water System, & Sanitary Sewer Resolution No. 16-7394 The curb, gutter, pavement and grading for approximately 1,070 lineal feet of Bentgrass Drive (the "Street Improvements"); The installation of approximately 56 lineal feet of storm sewer pipe, inlets, and all appurtenances thereto (the "Drainage Improvements"); The installation of approximately 49 lineal feet of six-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"); and The installation of approximately 1,165 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). Property Description: Lots 7 through 17 and Lots 38 through 43, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas; and Cost of Improvements: After allocating 20% of the construction costs to be paid by the Developer, the total costs of the Improvements to be assessed against the property in the Improvement District is $337,847.08. The proposed amount of assessment against each lot in this improvement district is $19,873.36. You are hereby further notified that the governing body of the City will meet on April 23, 2018, at 4:00 p.m., in the City Commission chambers of the City-County Building, 300 W. Ash Street, Room 107, Salina, Kansas, for the purpose of considering the proposed assessments. The installation of approximately 2,090 lineal feet of six-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"); and The installation of approximately 2,171 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). Property Description: Lots 5 through 26, Block 1; Lots 2 through 20, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas. Cost of Improvements: After allocating 25% of the construction costs to be paid by the Developer, the total costs of the Improvements to be assessed against the property in the Improvement District is $718,885.58. An Assessment Roll prepared in accordance with the referenced Resolution(s) approved by the governing body is on file in the Office of the City Clerk and may be examined by any interested party. At the conclusion of the public hearing, the governing body will consider an Ordinance levying such special assessments. Debbie Pack City of Salina Director of Finance/ Administration CERTIFlCATE OF MAil,rnG STATE OF KANSAS ) ) ss: COUNlY OF SALlNE ) The undersigned, City Treasurer of the City of Salina, Kansas, does hereby certify that on April 30, 2018, the date on which Ordinance No. 18·10932 (the "Ordinance") of the City was published, I caused to be mailed to the owners of the properties liable for the assessments set out in the Ordinance, at their last known post office addresses, a Notice of Assessment showing the respective assessments levied against their properties and stating the manner in which the assessments will be collected. A sample copy of the fonn of such Notice of Assessment is attached hereto. WITNESS my hand and seal as of April 30, 2018. R dk-1 tilv& Debbie Pack, City Treasurer [attach sample copy of fonn] Department of Finance & Administration Debbie Pack, Director 300 West Ash Street, Suite 206 P.O. Box736 Salina, Kansas 67402-0736 TELEPHONE (785) 309-5735 FAX (785) 309-5738 TDD (785) 309-5747 E-mail: debbie.pack@salina.org Website: www.salina-ks.gov NOTICE OF ASSESSMENT April 30, 20 I 8 Cornerstone Development Group, LLC PO Box 1481 Salina, KS 67402-148 I Property Owner: You are hereby notified, as owner of record of the following property: Grand Prairie Addition Phase II Property Description: Lots 7 through 10, I 5 through I 7, Lots 37 through 38, and Lots 41 through 43, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas; and that according to the notice mailed to you on April 9, 20 I 8 concerning an assessment against the above-described property for the public improvements previously authorized by the governing body of the City and following the meeting held on April 23, 2018 to hear objections to the proposed assessment, the City Commission has adopted Ordinance No. 18-10932 levying assessments in the amount of$ 19,873.36 against this property. You may pay this assessment in whole or in part to the City Treasurer on or before May 30, 2018. If any amounts remain unpaid after May 30, 2018, the City will issue bonds to finance the assessments. The balance of any unpaid assessment will be collected as an assessment against the above-described property, in annual installments levied over fifteen years, together with interest on such amounts at a rate equal to the rate on bonds issued by the City to finance the assessments. Debbie Pack Department of Finance & Administration Debbie Pack, Director 300 West Ash Street, Suite 206 P.O. Box736 Salina, Kansas 67402-0736 TELEPHONE (785} 309-5735 FAX (785} 309-5738 TDD (785} 309-5747 E-mail: debbie.pack@salina.org Website: www.safina-ks.gov NOTICE OF ASSESSMENT April 30, 2018 Stephen Renich Trust 709 S Santa Fe Avenue Salina, KS 67401-4944 Property Owner: You are hereby notified, as owner of record of the following property: Grand Prairie Addition Phase II Property Description: Lots 11 through 13, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas; and that according to the notice mailed to you on April 9, 2018 concerning an assessment against the above-described property for the public improvements previously authorized by the governing body of the City and following the meeting held on April 23, 2018 to hear objections to the proposed assessment, the City Commission has adopted Ordinance No. 18-10932 levying assessments in the amount of$ 19,873.36 against this property. You may pay this assessment in whole or in part to the City Treasurer on or before May 30, 2018. If any amounts remain unpaid after May 30, 2018, the City will issue bonds to finance the assessments. The balance of any unpaid assessment will be collected as an assessment against the above-described property, in annual installments levied over fifteen years, together with interest on such amounts at a rate equal to the rate on bonds issued by the City to finance the assessments. Debbie Pack Department of Finance & Administration Debbie Pack, Director 300 West Ash Street, Suite 206 P.O. Box736 Salina, Kansas 67402-0736 City cf ~J ']\, "'~~:.tsJ:' Salina TELEPHONE (785) 309-5735 FAX (785) 309-5738 TDD (785) 309-5747 E-mail: debbie.pack@salina.org Website: www.salina-ks.gov NOTICE OF ASSESSMENT April 30, 2018 Shawn & Kristi Carlson 112 Stratford Court Garden City, KS 67846-9682 Property Owner: You are hereby notified, as owner of record of the following property: Grand Prairie Addition Phase II Property Description: Lots 14, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas; and that according to the notice mailed to you on April 9, 2018 concerning an assessment against the above-described property for the public improvements previously authorized by the governing body of the City and following the meeting held on April 23, 2018 to hear objections to the proposed assessment, the City Commission has adopted Ordinance No. I 8-10932 levying assessments in the amount of$ 19,873.36 against this property. You may pay this assessment in whole or in part to the City Treasurer on or before May 30, 2018. If any amounts remain unpaid after May 30, 2018, the City will issue bonds to finance the assessments. The balance of any unpaid assessment will be collected as an assessment against the above-described property, in annual installments levied over fifteen years, together with interest on such amounts at a rate equal to the rate on bonds issued by the City to finance the assessments. Debbie Pack Department of Finance & Administration Debbie Pack, Director 300 West Ash Street, Suite 206 P.O. Box736 Salina, Kansas 67402-0736 TELEPHONE (785) 309-5735 FAX (785) 309-5738 TDD (785) 309-5747 E-mail: debbie.pack@salina.org Website: www.salina-ks.gov NOTICE OF ASSESSMENT April 30, 2018 Jeremy & Jessica Ryan 414 Greystone Drive Salina, KS 67401 Property Owner: You are hereby notified, as owner ofrecord of the following property: Grand Prairie Addition Phase Il Property Description: Lots 39, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas; and that according to the notice mailed to you on April 9, 2018 concerning an assessment against the above-described property for the public improvements previously authorized by the governing body of the City and following the meeting held on April 23, 2018 to hear objections to the proposed assessment, the City Commission has adopted Ordinance No. 18-10932 levying assessments in the amount of$ 19,873.36 against this property. You may pay this assessment in whole or in part to the City Treasurer on or before May 30, 2018. If any amounts remain unpaid after May 30, 2018, the City will issue bonds to finance the assessments. The balance of any unpaid assessment will be collected as an assessment against the above-described property, in annual installments levied over fifteen years, together with interest on such amounts at a rate equal to the rate on bonds issued by the City to finance the assessments. Debbie Pack Department of Finance & Administration Debbie Pack, Director 300 West Ash Street, Suite 206 P.O. Box736 Salina, Kansas 67402-0736 TELEPHONE (785) 309-5735 FAX (785) 309-5738 TDD (785) 309-5747 E-mail: debbie.pack@salina.org Website: www.salina-ks.gov NOTICE OF ASSESSMENT April 30, 2018 James Markle 2546 Dundee Lane Salina, KS 67401 Property Owner: You are hereby notified, as owner of record of the following property: Grand Prairie Addition Phase II Property Description: Lot 40, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas; and that according to the notice mailed to you on April 9, 2018 concerning an assessment against the above-described property for the public improvements previously authorized by the governing body of the City and following the meeting held on April 23, 2018 to hear objections to the proposed assessment, the City Commission has adopted Ordinance No. 18-10932 levying assessments in the amount of$ 19,873.36 against this property. You may pay this assessment in whole or in part to the City Treasurer on or before May 30, 2018. If any amounts remain unpaid after May 30, 2018, the City will issue bonds to finance the assessments. The balance of any unpaid assessment will be collected as an assessment against the above-described property, in annual installments levied over fifteen years, together with interest on such amounts at a rate equal to the rate on bonds issued by the City to finance the assessments. Debbie Pack CERTIFICATE OF CITY TREASURER STATE OF KANSAS ) ) ss: COUNTY OF SALINE ) The undersigned, City Treasurer of the City of Salina, Kansas (the "City"), does hereby certify that within the time allowed by Ordinance No. 18-10932 of the City for the payment of special assessments in cash, property owners specially assessed for the costs of certain internal improvements previously authorized by the governing body of the City, paid in cash the amounts set forth below: Resolution No. Amount 16-7394 $30,000.00 16-7365 0 TOTAL .uo,000.00 WITNESS my hand on -f/~.)_...f#y__.~1---' 2018. CERTIFICATE OF NO PROTEST STATE OF KANSAS ) ) ss: COUNTY OF SALINE ) r, City Clerk of the City of Salina, Kansas, do hereby certify that no suit to set aside the assessments levied pursuant to Ordinance No. 18-10932 or to otherwise question the validity of the proceedings in connection with the Grand Prairie, Phase TI Improvement District was brought before the expiration of thirty (30) days from the publication of Ordinance No. 18-10932 fixing the assessments related to said Improvement PETITION 4380 TO THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: We, the undenigned, owners of record of property located within the City of Salina, Kansas (the "City") do hereby respectively request that the Governing Body of the City create and designate an improvement district for the purpose of making certain improvements in the manner provided by K.S.A. 12-6a01, et seq. I. The general nature of the proposed improvements are as follows: The curb, gutter, pavement and grading for approximately 2,297 lineal feet of Saddlebrook Drive, Murray Lane, River Trail Road, Michael Circle, and Meredith Circle (the "Street Improvements"). The installation of approximately 345 lineal feet of storm sewer pipe, inlets, and all appurtenances thereto (the "Drainage Improvements"). The installation of approximately 2,090 lineal feet of six-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 2,171 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). 2. The estimated or probable cost of the Improvements is: Nine Hundred Fifty-Six Thousand Seventy-Two Dollars and Twenty-Five Cents ($956,072.25). 3. The extent of the proposed improvement district to be assessed is: Lots S through 26, Block 1; Lots 2 through 20, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas. (the "Improvement District"). 4. The proposed method of assessment shall be: Each lot in the Improvement District shall be assessed equally per lot for costs of the various Improvements. S. The proposed apportionment of cost between the Improvement District and the City at Large is: Seventy-five percent (75%) of the total cost of improvements shall be assessed to the Improvement District, twenty-five percent (25%) shall be paid by the developer(s) and no portion of costs shall be paid by the City at Large. The signers of this Petition hereby request that the Improvements be made without notice and bearing as required by K.S.A. 12-6a04(a). NAMES MAY NOT BE WITHDRAWN FROM THE PETITION BY THE SIGNERS THEREOF AFfER THE GOVERNING BODY COMMENCES CONSIDERATION OF THE PETITION OR LATER THAN 1 ' . Kelly LEGAL DESCRIPTION OF PROPERTY OWNED WITHIN THE PROPOSED IMPROVEMENT DISTRICT: Lots 5 through 26, Block 1; Lots 2 through 20, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas. STATEOFKANSAS ) ) SALINE COUNTY ) I, the undersigned Notary Public, hereby certify that the signature appearing above is genuine and that this document was signed before me on this 2. fJ+h day of ~ W'\ e. , 2016. A. DAN STACK ~ Notary Public -State of Kansas My Appl. Expires Decemberll, 20lff My appointment expires: Notary Public 3 Preliminary Engineering Report Petition No. 4380 River Trail 2°d Addition Utility, Street, and Drainage Improvements File No. 63153 June 2016 Wayne E. W~rm~~ P.E. Petition 4380 River Trail 2nd Addition to the City of Salina SCOPE OF WORK The curb, gutter, pavement and grading for approximately 2,297 lineal feet of Saddlebrook Drive, Murray Lane, River Trail Road, Michael Circle, and Meredith Circle (the "Street Improvements"). The installation of approximately 345 lineal feet of stonn sewer pipe, inlets, and all appurtenances thereto (the "Drainage Improvements"). The installation of approximately 2,090 lineal feet of six-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 2,171 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). BENEFIT DISTRICT River Trail 2nd Addition Lots 5 through 26, Block I; Lots 2 through 20, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas. (the "Improvement District"). ADOPTION OF ASSESSMENT The assessment with accrued interest to be levied as a special assessment tax upon the property included with the benefit district concurrent with the general property tax and shall be payable in fifteen equal annual installments. Each parcel in the Improvement District shall be assessed equally per lot for costs of the various Improvements benefitting such lot as described under the heading Apportionment of Cost below. APPORTIONMENT OF COST Seventy-five percent (75%) of the total cost of improvements shall be assessed to the Improvement District, twenty-five percent (25%) shall be paid by the developer(s) and no portion of costs shall be paid by the City at Large. Petition 4380 River Trail 2nd Addition to the City of Salina Cost of Improvements Item# Item Quantit~ Unit Unit Cost Extension 1 Clearing and Grubbing I LS 3,000.00 3,000.00 2 Common Excavation 4,400 CY 6.00 26,400.00 3 Embankment 2,700 CY 6.00 16,200.00 4 Erosion Control 1 LS 5,000.00 5,000.00 5 Seeding LS 2,000.00 2,000.00 6 Temporary Construction Entrance Ton 55.00 55.00 7 Area Inlet Ea 5,500.00 5,500.00 8 Curb Inlet 4 Ea 5,500.00 22,000.00 9 Storm Pipe, 18" RCP 70 LF 40.00 2,800.00 10 Storm Pipe, 24" RCP 133 LF 45.00 5,985.00 11 Stonn Pipe, 42"x27" RCHEP 105 LF 100.00 10,500.00 12 Stonn Pipe, 30"x19" RCHEP 37 LF 60.00 2,220.00 13 End Section, 18" RC 1 Ea 250.00 250.00 14 End Section, 24" RC 2 Ea 300.00 600.00 15 End Section, 42"x27" RC 2 Ea 600.00 1,200.00 16 Curb and Gutter 4,565 LF 17.50 79,887.50 17 Asphalt Pavement 8" 7,330 SY 35.00 256,550.00 18 Subgrade Modification 6" 7,600 SY 2.75 20,900.00 19 Sidewalk Ramp Type I 8 Ea 600.00 4,800.00 20 611 Water Main 2,090 LF 25.00 52,250.00 21 l W' Water Service Line 1,189 LF 30.00 35,670.00 22 I" Water Service Line 1,230 LF 20.00 24,600.00 23 1 Yi" Water Service Assembly 9 Ea 750.00 6,750.00 24 l 11 Water Service Assembly 23 Ea 500.00 11,500.00 25 Curb Shutoff Valve and Box 41 Ea 350.00 14,350.00 26 Fire Hydrant and Valve Assembly 4 Ea 4,500.00 18,000.00 27 Fittings 1 LS 3,500.00 3,500.00 28 Sanitary Sewer Pipeline 8" 2,171 LF 45.00 97,695.00 29 4' Standard Sanitary Manhole Type 1 11 Ea 3,800.00 41,800.00 30 Sanitary Sewer 4" 1,230 LF 35.00 43,050.00 31 Sanitary Sewer Tees 41 Ea 150.00 6,150.00 32 Construction Staking 1 LS 8,000.00 8,000.00 Subtotal $829, 162.50 Developer's Engineering 35,500.00 Developer's Interest 41,660.00 City Expenses 12-6a01 (d) (5%) 41,458.13 Interest, Bonding & Issue ( 1 % ) 8,291.63 Total $956,072.25 2 Petition 4380 Iliver Trail 2nd Addition to the City of Salina Cost of General Items Item# Item Quantity Unit Unit Cost Extension ] Clearing and Grubbing 1 LS 3,000.00 3,000.00 2 Common Excavation 4,400 CY 6.00 26,400.00 3 Embankment 2,700 CY 6.00 16,200.00 4 Erosion Control 1 LS 5,000.00 5,000.00 5 Seeding 1 LS 2,000.00 2,000.00 6 Temporary Construction Entrance 1 Ton 55.00 55.00 Subtotal General Items $52,655.00 Developer's Engineering 4,437.50 Developer's Interest 5,207.50 City Expenses J2-6a01 (d) (5%) 2,632.75 Interest, Bonding & Issue 526.55 Total $65,459.30 Cost of Stonn Improvements Item# Item Quantity Unit Unit Cost Extension 7 Area Inlet 1 Ea 5,500.00 5,500.00 8 Curb Inlet 4 Ea 5,500.00 22,000.00 9 Stonn Pipe, 18" RCP 70 LF 40.00 2,800.00 10 Stonn Pipe, 24" RCP 133 LF 45.00 5,985.00 11 Stonn Pipe, 42"x27" RCHEP 105 LF 100.00 10,500.00 12 Stonn Pipe, 30"x19" RCHEP 37 LF 60.00 2,220.00 13 End Section, J 8" RC Ea 250.00 250.00 14 End Section, 24" RC 2 Ea 300.00 600.00 15 End Section, 42"x27" RC 2 Ea 600.00 1,200.00 Subtotal Stonn $51,055.00 Developer's Engineering 4,437.50 Developer's Interest 5,207.50 City Expenses 12-6a01 (d) (5%) 2,552.75 Interest, Bonding & Issue 510.55 Total $63,763.30 3 Petition 4380 River Trail 2"d Addition to the City of Salina Cost of Street Improvements Item# Item Quantity Unit Unit Cost Extension 16 Curb and Gutter 4,565 LF 17.50 $79,887.50 17 Asphalt Pavement 8" 7,330 SY 35.00 $256,550.00 18 Subgrade Modification 6" 7,600 SY 2.75 $20,900.00 19 Sidewalk Ramp TYPe I 8 Ea 600.00 $4,800.00 Subtotal Streets $362,137.50 Developer's Engineering 4,437.50 Developer's Interest 5,207.50 City Expenses 12-6a01 (d) (5%) 18,106.88 Interest, Bonding & Issue 3,621.38 Total $393,510.75 Cost of Water Improvements Item# Item Quantity Unit Unit Cost Extension 20 6" Water Main 2,090 LF 25.00 $52,250.00 21 l 'l2" Water Service Line 1,189 LF 30.00 35,670.00 22 1" Water Service Line 1,230 LF 20.00 24,600.00 23 l 'l2" Water Service Assembly 9 Ea 750.00 6,750.00 24 l" Water Service Assembly 23 Ea 500.00 11,500.00 25 Curb Shutoff Valve and Box 41 Ea 350.00 14,350.00 26 Fire Hydrant and Valve Assembly 4 Ea 4,500.00 18,000.00 27 Fittings 1 LS 3,500.00 3,500.00 Subtotal Water Main $166,620.00 Developer's Engineering 8,875.00 Developer's Interest 10,415.00 City Expenses 12-6a01 (d) (5%) 8,331.00 Interest, Bonding & Issue 1,666.20 Total $195,907.20 4 Petition 4380 River Trail 2nd Addition to the City of Salina Cost of Sanitary Sewer Improvements Item# Item Quantity Unit Unit Cost Extension 28 Sanitary Sewer Pipeline 8" 2,171 LF 45.00 $97,695.00 29 4' Standard Sanitary Manhole Type I 11 Ea 3,800.00 41,800.00 30 Sanitary Sewer 4" 1,230 LF 35.00 43,050.00 31 Sanitary Sewer Tees 41 Ea 150.00 6,150.00 Subtotal Sanitary Sewer $188,695.00 Developer's Engineering 8,875.00 Developer's Interest 10,415.00 City Expenses 12-6a01 (d)(5%) 9,434.75 Interest, Bonding & Issue 1,886.95 Total $219,306.70 Cost of Miscellaneous Items Unit Item# Item Quantity Unit Cost Extension 32 Construction Staking I LS 8,000.00 $8,000.00 Subtotal Miscellaneous Developer's Engineering Contingencies City Expenses 12-6a01 (d)(5%) Interest, Bonding & Issue Total 5 $8,000.00 4,437.50 5,207.50 400.00 80.00 $18,125.00 River Trail 2nd Addition Block 1 Lot I Lot 2 Lot 3 Lot4 Lot 5 Lot 6 Lot 7 Lot 8 Lot 9 Lot 10 Lot 11 Lot 12 Lot 13 Lot 14 Lot 15 Lot 16 Lot 17 Lot 18 Lot 19 Lot20 Lot 21 Lot 22 Lot23 Lot24 Lot 25 Lot26 Lot27 Block 2 Lot 1 Lot2 Lot 3 Lot4 Lots Lot 6 Lot 7 Lot 8 Lot9 Petition 4380 River Trail 2nd Addition to the City of Salina Property Ownership Property Owner David A. Tillberg & Michael P. Murray & Cheryl Tillberg Murray KC Development, LLC David A. Tillberg & Michael P. Murray & Cheryl Tillberg Murray City of Salina KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC Kelly Dunn Construction, Inc. David A. Tillberg & Michael P. Murray & Cheryl TilJberg Murray KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC 6 Lot 10 Lot 11 Lot 12 Lot 13 Lot 14 Lot 15 Lot 16 Lot 17 Lot 18 Lot 19 Lot 20 Petition 4380 River Trail 2°d Addition to the City of Salina KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC KC Development, LLC 7 Petition 4380 River Trail 2nd Addition to the City of Salina Distribution of Cost Block I Water SS Street Stonn General Misc Total Lot I Platted Drainage Easement/Common Area Platted Drainage Easement/Common Area Lot 2 Platted Drainage Easement/Common Area Platted Drainage Easement/Common Area Lot 3 Platted Drainage Easement/Common Area Platted Drainage Easement/Common Area Lot 4 City Park Land City Park Land City Park Land Lot 5 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 6 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot7 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot8 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 9 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 10 3,583.67 4,011.71 7,198.37 1,166.40 ] ,197.43 331.55 $17,489.13 Lot 11 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 12 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 13 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 14 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 15 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 16 3,583.67 4,0ll.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 17 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331 .55 $17,489.13 Lotl8 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lotl9 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 20 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot21 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot22 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot23 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 24 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot25 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot26 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Block 2 Lot 1 Platted Drainage Easement/Common Area Platted Drainage Easement/Common Area Lot 2 3,583.67 4,011.71 7,198.37 1,166.40 l,197.43 331.55 $17,489.13 Lot 3 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot4 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lots 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot6 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot7 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 8 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot9 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 10 3,583.67 4,011.7] 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 11 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 12 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 8 Petition 4380 River Trail 2nd Addition to the City of Salina Lot 13 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 14 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 15 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 16 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 17 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lotl8 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot 19 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Lot20 3,583.67 4,011.71 7,198.37 1,166.40 1,197.43 331.55 $17,489.13 Total $146,930.40 $164,480.03 $295,133.06 $47,822.48 $49,094.48 $13,593.75 $717,054.19 1The values in the table above reflects the 75% of the total value of the individual improvements divided by the number ofbuildable lots in the benefit district. 9 I I ~ z Q. w i 1! 1V J;l § CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS June 27, 2016 4:02p.m. The 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 Oerk. AWARDS AND PROCLAMATIONS None. CmZENS FORUM None. PuBUC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN nME None. CONSENT AGENDA (6.1) Approve the minutes of June 20, 2016. 16-0260 Moved by Commissioner Blanchard, seconded by Commissioner Davis, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. 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 ~ds 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 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 addition~! 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. 16-0262 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 ~,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. 16-0263 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 (TIP) Hearings; (7.3a) Resolution No. 16-7371 establishing the date and time providing for a public hearing to consider adoption of a ST AR Bond Project Plan pursuant to K.S.A. 12-17, 160 et seq. Page2 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 KS.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 KS.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 KS.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. Page3 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 Com.mission, 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. 16-0266 Moved by Cominissioner Davis, seconded by Com.missioner Hardy, to adopt Resolution No. 16- 7365 relating to the establishment of a special improvement district fo~ 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. Com.missioner 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 proj~cts to be funded. Commissioner Blanchard asked for further explanation of the item. Jason Gage, Gty 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 placemei:tt 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 ma.rket rate calling. ' Michael Schrage, Deputy City Manager, stated the parameters of the. agreement were outlined in the item which would keep the risk lower. 16-0267 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 Page4 16-0268 I 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 USO 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 Page5 116-0270 16-0271 stated the text amendment would just be a baseline for the number of parking spaces needed. · Com.missioner 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 Com.mission and Mr. Andrew regarding the parking. Jason Gage, City Manager, asked if the application was initiated by the Planning Com.mission. Mr. Andrew stated yes. Mr. Gage stated since the application was initiated by the Planning Commission, the City Com.mission could postpone the action allowing staff to work with the future hotel developer on the parking. Com.missioner 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 Ry'an, seconded by Com.missioner 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. [SEAL] ATIEST: ~vJlW Shandi Wicks, CMC, City Clerk Karl F: Ryan, Vice-Mayor Page 6 } ;• ... · 11111111n1111111rnr11111r111ir1111111111111111111r1111r1111r11111rr1m11n111 · .-·;.··---;·.. REBECCA SEEMAN (~>:~';·;~~>..REGISTER OF DEEDS SAUNE COUNTY KANSAS .... t ' , ... 1:l .. ;;;:.):}Book:1315 Page: 104-107 \~~•:;·;-:';../Receipt#: 104854 " t..\ Recording Fee: $0.00 ·~···-Pages Recorded: 4 ,__.,n Date Recorded: 7 /21/2016 3:47:02 PM Type of Document --~R=es=o~lu~ti'-"'--on,_,__ ________________ _ Total Recording Fees _ _.$~0~.0~0~------------------ Return Address CITY OF SALINA ROOM 206 CINDY L L l ... ... f w i -Book: 1315 Page: 185 {Published in the Salina Journal on J'Un e. "30. 2016) RESOLUTION NUMBER 16-7365 A RESOLUTION SETIING FORTH FINDINGS AND DETERMINATIONS OF 1HE GOVERNING BODY OF THE CITY OF SALINA, KANSAS ON THE ADVISABILITY OF AND AUTHORIZING THE CONSTRUCTION OF CERTAIN Thfi>ROVEMENTS PURSUANT TO K.S.A • 12-6a01 et seq. WHEREAS, a petition was filed with the City Clerk for the City of Salina, Kansas (the "City") on June 27, 2016, proposing certain improvements pursuant to K.S.A. 12-6a01 et seq. (the "Petition"); and WHEREAS, the Petition sets forth: (a) the general nature of the proposed improvements; (b) the estimated or probable cost of the proposed improvements; (c) the extent of.the proposed improvement district to be assessed for the cost of the proposed improvements; (rl) the propose1 method of assessment; (e) the proposed apportionment of the cost between the improvement district and the City at large; and (f) a request that such improvements be made without notice end hearing as required by K.S.A. 12-6a04(a); and WHEREAS, the owners of record of 100% the property liable to be assessed under the Petition have signed the Petition; and t WHEREAS, no signatures have been withdrawn from the petition before the Governing Body began consideration of the Petition; and WHEREAS, K.S.A. 12-6a04 provides that the Governing Body may authorize and order public improvements without notice and hearing after a sufficient petition has been filed; and WHEREAS, the governing body has reviewed and considered the Preliminary Engineering Estimate and Feasibility Report prepared by the City Engineer and agrees with the conclusions set forth therein. NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: Section 1. The Governing Body hereby finds that the Petition is sufficient, and further finds and detennines that it is necessary and advisable to make the following improvements: (a) The nature of the improvements are as follows: The curb, gutter, pavement and grading for approximately 2,297 lineal feet of Saddlebrook Drive, Murray Lane, River Trail Road, Michael Circle, and Meredith Circle (the "Street Improvements"). · The installation of approximately 345 lineal feet of storm sewer pipe, inlecs, and all appurtenances thereto (the "Drainage Improvements"). The installation of approximately 2,090 lineal feet of six-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenan~ thereto {the "Water System Improvements"). The installation of approximately 2, 171 lineal feet of eight-inch sani~ary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). {collectively, the "Improvements"). .. i' L l l (b) (c) Book: 1315 Page: 196 The ·estimated cost of the Improvements is: Nine Hundred Fifty-Six Thousand Seventy-Two Dollars and Twenty-Five Cents ($956,072.25). The boundaries of the improvement district to be assessed are: I Lots 5 through 26, Block I; Lots 2 through 20, Block 2;--;11 in the River Trail 2nd Addition, City of Salina, Saline County, Kansas. (collectively, the "Improvement District"). (d) The apportionment of cost between the Improvement District and the city at large is: Seventy-five percent (75%) of the total cost of improvements shall be assessed to the Improvement District, twenty-five percent (25%) shall be paid by the developer(s) and no portion of costs shall be paid by the City at Large. (e) The method of assessment against property within the Improvement District shall be equally per lot against all lots within the Improvement District. Section 2. The Governing Body hereby declares that the Improvements described in this Resolution are necessary, and authorizes them to be made in accordance with the Petition and the findings set forth in this Resolution, and further authorizes the levying of assessments and the issuance of bonds therefore (upon the satisfaction of certain conditions set forth in the Development Agreement described in Section 4 of this Resolution), all in accordance with K.S.A. 12-6a01 er seq .. Section 3. The City expects to make capital expenditures from and after the date of this Resolution in connection with the Improvements described herein, and intends to reimburse itself for such expenditures with the proceeds of one or more series of general obligation bonds and temporary notes of the City in the maximum principal amount of$956,072.2S. Section 4. That certain Improvement District Development Agreement between KC Development, LLC and the City (the "Development Agreement") is hereby approved in substantially the fonn presented to the governing body on this date. The Mayor is authorized to execute the Development Agreement on behalf of the City, and the Mayor, Clerk and other City staff are authorized to take such further actions as necessary to carry out the transactions contemplated thereby. Section 5. The City Clerk shall file a certified copy of this Resolution with the Register of Deeds of Saline County, Kansas. Section 6. This Resolution shall take effect after its passage and publication once in the official city newspaper and receipt by the City of a fully executed Development Agreement; provided, if a fully executed Development Agreement is not delivered to the City within 30 days of the date hereof, the City may tenninate the Improvement District. ADOPTED AND PASSED this 27th day of June, 2016. (SEAL) . ' \. ·l'" l "' ~ z "' IU • & r.l! i J l L . .. I hereby certify that the above and foregoing is a true and correct copy of Resolution No. 16-73 65 that was adopted by the Governing Body of the City of Salina at their regular meeting on June 27, 2016. Shandi Wicks City Clerk 3 Book: 1315 Page: 187 .j Publisher's Affidavit I, __ __.C-ih..,n ... ·~sty~FL1u"n.1.1k1o..... ___ , being duly sworn declare that I am a I egal Coordinator of THE SALINA JOURNAL, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, which newspaper has been admitted to the mails as second class matter in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice, and that the Resolution 16-7365 Notice has been correctly published in the entire issue of said newspaper one time, publication being given in the issue of June 30, 2016 0Sh&(&~\.l ~ Subscribed and sworn to before me, this 30 '-tf:. dayof ~ AD. 20 /~ Printer's Fee SSl7.SO (Published In 11\e 5allnii • ···T"tie lnstallatlon of I Agreement 11eSCnt>e0 m Joumal ,June 30, 2016) approximately 345 '.section 4 .ot this Resolu· _ N. URMEBSOERLUTl 1 6-o 73 N85 lineal feet of storm 1tion), all 1n accordance sewer pipe, inlets, wllh K.S.A. 12-6a01 et A RESOLUTION SET• and all nppurte· seq. TING FORTH FIND• nances thereto (the ' Section 3. Tiie ~ INGS AND DETERMI· "Drainage Improve· expactS to make c:ap1~I NATIONS OF THE men"'"' expenditures from and ... ,. after the date of this GOVERNING BODY OF The Installation of Resolution in connection THE CITY OF SAUNA, approximo.tely 2,090 'with the Improvements KANSAS ON THE AD-lineal feet of six-inch ~.described herein, ~in- VJSABILITY OF AND water main, flre ~-1',tends to reimbUrse itself AUTHORIZING THE drants, valves, fit· f~r such expenditures CONSTRUCTION OF tings; service con· i,with the proctieds cf one CERTAIN IMPROVE· nectlons for water I or more series of gen· MEHTS PURSUANT TO nnes and aD appurtlP l'eral obligation bonds K.S.A. 12-GaOt et seq, nances !hereto (the land temporary notes of • WHEREAS, a petition -"Water System Im· \ithe City In the maximum wu flied with the City provementsi. principal amount of Clerk for the City of Sa· • ~S956.07225: Una, IWlsaS (the "City') The Installation of ~ • Section 4. That cer· on June 13, 2016, pro-·approximately 2, 171 , taln Improvement Dis· posing certain improve· uneal leet of ftrlct Development ments pursuant to elght·lnch sanitary 'Agreement between KC K.S.A. 12·6a01 et seq. sewer main, service 1iDevelopment. LLC and .(the "Petitlon1: and ,. connections for .the CLty (the "Develop- • WHEREAS1 the Pell· .• • sawer tines, man· 'lment Agreement") Is Jion sets fonn: (al the .• holes and aH appur· I hereby approved in Sub- genera! nature of the ~ tenances thereto ,!stantiBJly the form pre-proposed impnwements: , ; (the "Sanl'lal'y sewer l'sented to the P,emlng (b) the estimated or · lmprovementsi. \body on this date. 11le j)osed Improvements; (c) (coRecUVely. Ille "Im· e)!ecute the Develop· prObable cost of the pro-J' I Mayor Ls authorized to tile extent of the pro-. provements"). ment Agreement on be- posad 1111Pro¥ement dis· • . • • ·-hall of the City, and the trlct to be assessed lot lb) The esllmated cost 1 Mayor, Clerk and other the cost oj the.PJ~d ...._of the Improvements • City staff are au~ed improvements;· (d)' the Is:_--...._ to ~ke_suqi.turpier ac-· proposed-method of as-• ·ons as necessary to posed ·api>oraonment of Fllty·Slx Thousand· jtlons contemplated the cost between the Im· seventv·Two Dollars thereby. provement district and and Twenty-Five Section 5. The City lhe City at large: and (I) Cents Clerk ~hall fde a certlliea a request that such Im-(S9S6,072.25). copy of this Resolution provements be made with lhe Re9ister of without notice and hear· (c) The boundaries of Dee.1!1 of Sallrie County, ing 11.s required by ,, the lmprovemenl ,1Kacsas. • · K.S.A. 12-6a04(e):· and district to be as· ·, Section 6. 1bls Raso· WHEREAS, the own· ! sassed are: 1ltuUon shall take effect ers of record of 1000~ j .after.Its passage end the property liable to be Lots 5 through 26, publication onee In the ass8ssed under the Pe-· BLock 1: Lots 2 otliclat city newspaper lftlon have signed the -through 20, Block 2, arid ~ipt by the City Petition· and "" all In the River Tran of a fully executed De· i· WHEREAS no slgria· ~ 2nd _Addition, Ci!f of velopment Agreement; tu res have been with· .• Sa h n a• Sa h n e prCIV!ded, if a luRy exe-(!rawn from the pelltlon r County, Kansas. cuted Development before the Governing (coltectlvely, the "Im-Agreement Is not deUv· Body began consldera· ered to the Clty within 30 t1on of the Petition; and provement Dlstriel"). days of the date hereof, WHEREAS, K.S.A. • the City !My 1erm~te 12·6804 provides that '(d)" The apportiOnment the Improvement Dis· the Govemln!I Body may ,I' of cost between the trlCt. -aulhorlz:e and orde~ out>-Improvement District He Improvements wilhout end 11\e city at large ADOPTED AND PASSED notice and hearing after Is: • 1thls. 27th day ol June a sufflelent petition has Seventy-fiVe parcent ·201 &. been med; and "' (7 ") f th t ta! \ -WHEREAS, the gov· 5'" 0 e 0 . Kaye J. Ciawford, ernlng bOdy has re· ~i~ts 0~:1~:: l Mayor vleweil and considered sassed "to the Im· I the· Preliminary Engl· provement,D,!Strict, !(SEAL) • neerin9 Estimate and twenty-five percent Feasibility Repc>rt pre· (25%) shan be ~ .S!Jandf L WiekS, pared. l>Y tile _C11,!_!ngl-tiy· lhe e1eve1oper(sl 1-C1ty Clelk ·neer 8nd agrees ... ~dhe and no portion o\ (1t) conclusions set.Jorlh costs shaR be paid .. .:: .. .:.·------therein. •,• -NOW THEREfORE, by t_!!!l.(:lty.et Lalge. BE IT RESOLVED BY .(e) The methOd·of as· .. THE GOVERNING sessment a~alnst BODY OF THE CITY · _,,,. -!lie OF SAUNA, KANSAS, f~1=.:~; b'lstrict AS FOLLOWS: sh811 be equaw per •. Section 1, The Gov· · tot against al lots ernlng Body hereby' wi'.h!n the lmprove- flnds ihat the Petition Is ment Dbtrk.1. auHlc:lent, end further Section 2. The Gov· finds and determines emlng Body hereby de· that it Is necessary and 'dares that \he-Improve- advisable to make the 'ment.9 described In this following improvements: Resolution are neces· (a) The nature ol the Im-'sary, and authorizes t prove~_ents are 'as ithem to be made In ac· 1 follOWS con:tance with the Peli· tiOl'I and the findings set The curb, gutter, fOl'lh In this Resolution, e::ivement and grad· and further authorizes 2•29fo7r eppro,· ineal ~:i the Lavylng of assess· ments and :he Issuance~ Saddlebrook Drive, of bonds ll;ler1>!:>re (upon Mul'l'ay Lane, River f . I f Trail Road, Mlchaet the satls act on o cer· Circle, and Meredith 1a1n condlU'ons set forth Clrcle (the •street inc...Jha_D.&Yeloomsn tmpf9Vements"). IMPROVEMENT DISTRICT DEVELOPMENT AGREEMENT by and between the CITY OF SALINA, KANSAS and KC DEVELOPMENT, LLC DATED AS OF August29, 2016 IMPROVEMENT DISTRICT DEVELOPMENT AGREEMENT This Improvement District Development Agreement {the "Agreement") dated as of August 29, 2016, by and between the City of Salina, Kansas (the "City"), and KC Development, LLC, a Kansas limited liability company (the ''Developer"). WHEREAS, on June 13, 2016, the Developer filed with the City Clerk Petition No. 4380(the "Petition"), pursuant to K.SA 12-6a01 et seq. (the "Act"); and WHEREAS, the Petition requests that the City create the Improvement District, construct the Improvements, assess the costs thereof against the Improvement District (all as defined in the Petition), and issue the City's general obligation bonds to finance the costs of the Improvements; and WHEREAS, the City has prepared the Prelimiruuy Engineering and Feasibility Report (the "Feasibility Report") related to the Improvements; and WHEREAS, the Developer desires to construct the Improvements and provide financing for the costs of the Improvements until such time as the City issues general obligation bonds to permanently finance the costs of the Improvements, all subject to the tenns and conditions of this Agreement; and NOW, THEREFORE, in consideration of the foregoing, and of the mutual covenants and agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and the Developer hereby agree as follows: 1. Constructing the Improvements. A. Construction. Developer shall design, construct and install, at its own expense, the Improvements described in the Petition, subject to reimbursement by the City as provided in Paragraph 3 below. The design, construction and installation of the Improvements shall be in accordance with all applicable laws including the City Code, and Developer shall obtain or shall cause to be obtained all licenses, permits or other approvals required by any governmental authorities to complete the Improvements. B. Timing. The Developer shall begin work on the Improvements promptly after execution of this Agreement, but no contract shall be let and construction shall not commence until after Resolution No. 16-7365 (creating the Improvement District and authorizing the Improvements, the "Advisability Resolution") is published in the Salina Journal. All work on the Improvements must be performed with reasonable diligence and work may not cease for more than fifteen (1 S) consecutive days. 2. Certifying Completion of the Improvements A. Upon the completion of the Improvements, Developer shall submit to the City a request for reimbursement, accompanied by copies of all paid invoices for the Improvements, in accordance with Exhibit A. The Developer also shall furnish all records, contracts, bills and other documents relating to the Improvements and the Developer's financing of the costs thereof, that the City reasonably requests in order to verify the amount to be reimbursed pursuant to this Agreement. Further, Developer shall provide to the City adequate documentation that all contractors, engineers or other parties that have provided goods or services for the Improvements have been paid in full by the Developer. B. After receiving the foregoing information, the City will arrange for final inspection of the Improvements. If the Improvements have been completed in substantial compliance with the Advisability Resolution, the City shall certify completion of the Improvements and issue a Certificate of Completion in accordance with Exhibit B. The City shall review all invoices and other requested documentation, inspect the Improvements and either (i) issue to the Developer a Certificate of Completion or (ii) provide to Developer a list of additional required documentation, within 30 days after the Developer submits a request for reimbursement. 3. Reimbursement. A. The City shall reimburse the Developer for the Developer's actual cost of the Improvements, as submitted pursuant to Paragraph 2 of this Agreement. The Developer shall also be reimbursed for interest expense related to financing the costs of the Improvements only to the extent that the Developer has obtained financing from an unrelated third party, and then the Developer shall only be reimbursed for such financing costs as are paid by the Developer to the unrelated third party. B. The maximum total amount of reimbursement to the Developer under this Agreement shall not exceed $681,591.981, less 25% of the City's actual expenses, interest, and bond issuance costs as described in the Preliminary Engineering Report (estimated at $12,474.502). The Parties agree that the costs shown in the Petition and Feasibility Report are an estimate only, and reimbursement shall be based on the actual expenses incurred by the Developer and verified by the City pursuant to Paragraph 2 of this Agreement; except that, in no event shall the Developer be entitled to reimbursement in excess of the amount shown in this paragraph. C. The City shall not issue any reimbursement payment until all of the following actions have occurred: (i) the Certificate of Completion has been issued in accordance with Paragraph 2 of this Agreement; (ii) an ordinance levying assessments pursuant to the Petition, the Advisability Resolution and the Act has been approved by the City Commission; and (iii) the Developer has provided a financial guarantee in accordance with Resolution 13-7055 of the City and Paragraph 4 of this Agreement; and (iv) the City has issued its general obligation bonds to permanently finance the costs of the Improvements. D. The Developer hereby acknowledges that the following actions are required after the Certificate of Completion is issued and before proceeds of the City's general obligation bonds are available to reimburse the Developer: a. City prepares final feasibility study showing final costs of the Improvements and allocation of assessments to each property within the Improvement District; 1 Amount computed as 75% of the estimated construction ($831,629.30), developer's engineering ($35,500.00) and developer's interest ($41,660.00) costs. 2 Amount computed as 25% of the City's expenses ($41,581.47) and interest, bonding and issue costs ($8,316.47). 2 b. City Commission adopts resolution calling a public hearing on the levy of assessments; c. Notice of public hearing on the levy of assessments is published in the local paper and mailed to all property owners within the Improvement District; d. City Commission holds public hearing on the levy of assessments and considers on first reading the ordinance levying assessments; e. City Commission has second reading and approves ordinance levying assessments; f. Ordinance levying assessments is published in local paper; g. Property owners within the Improvement District are given 30 days to prepay assessments; h. The Developer has provided the financial guarantee in accordance with Resolution 13-7055 of the City and Paragraph 4 of this Agreement; i. Amount of general obligation bond financing is determined by City (equal to total costs of Improvements less any prepayments); j. City works with Financial Advisor and Bond Counsel to begin marketing general obligation bonds to investors; k. City holds bond sale; Commission approves sale of bonds to best bidder; l. City works with financing team on various closing matters; m. City certifies assessment, together with interest, to County for property tax bills; n. City closes bond issue; receives funds to reimburse Developer. Developer further acknowledges that the City typically issues general obligation bonds in July of each year. In order for the City to complete all of the above-referenced steps to include financing for the Improvements in a particular year's bond issuance, the Developer must submit the documentation required by Paragraph 2 of this Agreement in sufficient time to permit the City to issue a Certificate of Completion by MARCH 1. If a Certificate of Completion is not issued by MARCH 1, then reimbursement will not occur until the following year's regularly-scheduled general obligation bond issue. The Developer is solely responsible for paying any additional financing costs incurred by the Developer as a result of any delay in the issuance of general obligation bonds for the Improvements, if such financing costs, together with the actual project costs, exceed the maximum reimbursement set forth in Paragraph 3(A) of this Agreement. E. The City will use its best efforts to issue general obligation bonds in July of each year. If the City's issuance of general obligation bonds to pennanently finance the Improvements is prevented, hindered or delayed for any reason, the Developer is solely responsible for carrying the costs of the Improvements. The City shall have no obligation to reimburse the Developer unless and until the City issues general obligation bonds for the purpose of financing the Improvements. 4. Financial Guarantee Required from Developer. Within 30 days after the governing body approves an Ordinance levying assessments against the Improvement District (the "Assessment Ordinance"), the Developer shall provide the financial guarantee required by Resolution 13-7055 (the "Financial Guarantee"). The Financial Guarantee shall be in one of the following forms: A cash, cashier's check or an escrow account equal to 20% of the total assessments levied against all properties within the Improvement District pursuant to the Assessment Ordinance; or 3 B. an irrevocable letter of credit equal to 35% of the total Special Assessments levied against all properties within the Improvement District. The Developer's Financial Guarantee may be applied annually to satisfy the principal of and interest on the bonds issued to finance the Improvements, if any assessments are not paid when due. The Developer's Financial Guarantee shall be released upon the request of the Developer at the earlier of: (i) five (5) ye.ars from the date the governing body of the City adopts the Assessment Ordinance or (ii) the date when certificates of occupancy are issued for at least 35% of the lots within the Improvement District. S. Waiver. THE DEVELOPER HEREBY AGREES TO WAIVE ANY RIGHTS THAT IT MAY HAVE PURSUANT TO KANSAS STATUTES, THE KANSAS CONSTITUTION, THE UNITED STATES CONSTITUTION, OR AS OTHERWISE PROVIDED BY LAW TO OBJECT TO ANY SPECIAL ASSESSMENTS REQUESTED IN THE PETITION AND IMPOSED PURSUANT TO THE ACT. Developer acknowledges and agrees that this waiver is freely given and with full knowledge of the extent of all statutory, constitutional or other legal rights being waived thereby, and is given in consideration of the City fonning the Improvement District and assisting in providing for the financing and construction of the Improvements. 6. City Emenses; Deposit. Developer shall be responsible for the payment of all non-City employee legal, financial and planning consultants for direct out-of-pocket expenses and other reasonable costs resulting from services rendered to the City to review, evaluate, process and consider the Petition and this Agreement (the "City Expenses"). Before this Agreement becomes effective, Developer shall deposit with the City the sum of $2,500.00 to pay the City Expenses. If such deposit is insufficient to pay all City Expenses, Developer shall pay all additional City Expenses within I 0 days after presentation of an invoice from the City. The City shall return any unused funds to the Developer on the date when the City reimburses the Developer pursuant to Paragraph 3 of this Agreement. 7. Indemnity. A. General Indemnity. The Developer shall indemnify, release, defend, be responsible for and forever hold harmless the City, its officers, agents, employees, elected officials, and attorneys, each in their official and individual capacities, from and against all lawsuits, suits, actions, costs, claims, demands, damages, disability, losses, expenses, including reasonable attorney's fees and other defense costs or liabilities of any character and from any cause whatsoever, brought because of bodily injury or death received or sustained, or loss or damage received or sustained, by any person, persons, or property arising out of or resulting from any act, error, omission, or intentional act of the Developer or its agents, employees, or subcontractors in connection with the design, construction, installation and maintenance of the Improvements. B. No Limitations or Waiver. The indemnity required hereunder shall not be limited by reason of any insurance coverage provided by Developer as required by this Agreement. The City does not, and shall not, waive any rights against the Developer which it may have by reason of this indemnification. This indemnification by the Developer shall not be limited by reason of whether or not Developer's insurance policies shall have been determined to be applicable to any such damages or claims for damages. 4 C. Use of Independent Contractors. The fact that the Developer carries out any activities connected with the Improvements under this Agreement through independent contractors shall not constitute an avoidance of, or defense to, the Developer's duty of defense and indemnification under this paragraph. 8. Insurance. During construction of the Improvements, Developer shall maintain insurance in favor of the City that is consistent with the form and type of insurance customarily maintained in connection with the construction of similar improvements. 9. Default and Termination. Developer shall be in default of this Agreement if Developer fails to comply with any obligations set forth in this Agreement. This Agreement may be terminated at the option of the City if written notice of event of default has been delivered to the Developer by the City and the Developer has not cured such default or is not actively pursuing such cure within thirty (30) days after such notice is delivered. 10. General Provisions. A. No waiver of any provision of this Agreement will be deemed or constitute a waiver of any other provision, nor will it be deemed or constitute a continuing waiver unless expressly provided for by a written amendment to this Agreement signed by both City and Developer; nor will the waiver of any defect under this Agreement be deemed a waiver of any subsequent default or defaults of the same type. The City's failure to exercise any right under this Agreement, will not constitute the approval of any wrongful act by the Developer or the acceptance of any Improvements. B. The parties to this Agreement may amend or modify this Agreement only by written instrument duly executed by the parties hereto. C. No person or entity who or which is not a party to this Agreement will have any right of action under this Agreement. D. This Agreement constitutes the entire Agreement between the parties, and no statements, promises, or inducements that are not contained in this Agreement will be binding on the parties. This Agreement may not be assigned to any other parties without the prior written consent of the City. E. If any part, term, or provision of this Agreement is held by a court to be illegal or otherwise unenforceable, such illegality or unenforceability will not affect the validity of any other part, term, or provision, and the rights of the parties will be construed as of the part, term, or provision was never part of this Agreement. F. The City may file a copy of this Agreement in the office of the Register of Deeds for Saline County, Kansas. G. Nothing contained in this Agreement constitutes a waiver of the City's sovereign immunity under any applicable state law. H. This Agreement shall be construed in accordance with and governed by the laws of the State of Kansas. [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 5 ~TNESS WHEREOF, the parties hereunto have executed this Agreement thisJO -[day of -->:~;....::..:;..;..r::::::"""'-'""'--'' 2016. (Seal) ATTEST: Shandi Wicks City Clerk STATE OF KANSAS COUN1Y OF SALINE ) ) SS. ) CITY OF SALINA, KANSAS On~ 2016, before[' 1he r~~ Pub.lidii a,_.i fi>f said state, personally app J. CfawlOc and a ~ , proved to IIloe QJ.l the basts of satisfactory evidenre~~ersons whose names are subscnbed to the w~tJtln··~~t ~ Mayor and City Clerk, respectively, of the CTIY OF SALINA, KANSAS, and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the entity upon behalf of which the persons acted, executed the instrument. WTINESS my hand and official seal. My commission expires: 6 IN WITNESS WHEREOF, the parties hereunto have executed this Agreement this __ day of _____ _, 2016. STATEOF \10.0~$ COUN1Y OF :nJ Lne Title: Member ) ) SS. ) On Auq 29, 2016, before me, the undersigned, a Notary Public in and for said State, personally appeared Kelly R. Dunn, who proved to me on the basis of satisfactory evidence to be a Member of KC Development, LLC and acknowledged to me that they executed the same in their authorized capacity, and that by such person's signature on the instrument the entity upon behalf of which such persons acted, executed the instrument. WTINESS my hand and official seal. A. SHANDI L. WICKS l!liDD Notary Public • State of Kansas My Appt. Expires My commission expires: Notary Public 7 EXIIlBITA FORM OF REIMBURSEMENT REQUEST TO: City of Salina, Kansas Attention: City Manager Re: River Trail 200 Addition Improvement District Terms not otherwise defined herein shall have the meaning ascribed to such terms in the Improvement District Development Agreement dated as of J11ne __J 2016 (the ''Agreement") between the City and the Developer. AU.jl.(St 2.'11 In connection with the Agreement, the undersigned hereby states and certifies that: 1. Each item listed on Schedule 1 hereto is cost that was incurred in connection with the construction of the Improvements after ffn' ~ 2016, and is an eligible cost pursuant to the Petition, the Advisability Resolution and the ~&~' -Attached hereto are invoices and other supporting documentation showing proof that each cost listed in Schedule 1 was actually incurred by the Developer and is an eligible cost pursuant to the Petition, the Advisability Resolution and the Act. 2. There has not been filed with or served upon the Developer any notice of any lien, right of lien or attachment upon or claim affecting the right of any person, firm or corporation to receive payment of the amounts stated in this request, except to the extent any such lien is being contested in good faith. 3. The Improvements have been comple!ed in a workmanlike manner and in accordance with all construction plans approved by the City. All necessary permits and approvals required for the work for which this certificate relates were issued and were in full force and effect at the time such work was being performed. 4. The Developer is not in default or breach of any term or condition of the Agreement, and no event has occurred and no condition exists which constitutes an event of default under the Agreement. Dated this __ day of _____ ~ 20 . A-1 KC DEVELOPMENT, LLC a Kansas limited liability company ::e:Xt/r-fl Title: f!te5. A-2 Approved for Payment this __ day of ____ , 20 __ : CITY OF SALINA, KANSAS By: Title: A-3 EXHIBITB FORM OF CERTIFICATE OF COMPLETION The undersigned, KC DEVELOPMENT LLC, a Kansas limited liability company (the "Developer"), pursuant to that certain Improvement District Development Agreement dated as of June __, 2016, between the CITY OF SALINA, KANSAS (the "City") and the Developer (the "Agreement"), hereby certifies to the City as follows: 1. That as of , 20_, the construction of all Improvements (as such term is defined in the Agreement) have been completed in accordance with the Petition, the Advisability Resolution and the Agreement. 2. This Certificate of Completion is being issued by the Developer to the City in accordance with the Agreement to evidence the Developer's satisfaction of all obligations and covenants with respect to the construction of the Improvements. 3. At the Developer's request, the City shall record this Certificate with the Saline County Recorder of Deeds, as evidence that the Developer has satisfied all agreements and covenants to construct the Improvements pursuant to the Agreement. Terms not otherwise defined herein shall have the meaning ascribed to such terms in the Agreement. IN WITNESS WHEREOF, the undersigned has hereunto set his/her hand this __ day of ---~20 __ . CITY OF SALINA, KANSAS By: __________ _ (Insert Notary Form and Legal Description if Certificate to be Recorded) B-1 CITY OF SALINA, KANSAS ***REVISED*** STATEMENT OF FINAL COSTS GRAND PRAIRIE ADDITION PHASE Il STREETS, DRAINAGE, WATER SYSTEM, & SANITARY SEWER RESOLUTION NO. 16-7394 CONSTRUCTION COST Construction Cost City Expenses (5%) Total Less Developer's Share (20%) Construction Costs to be Assessed ASSESSMENT AMOUNT Construction Costs to be Assessed Series 2017-I Temporary Notes Interest Series 2017-I Temporary Notes Costs oflssuance Series 2018 Bonds Costs of Issuance Total Project Costs to be Assessed RIVER TRAIL SECOND ADDITION STREETS, DRAINAGE, WATER SYSTEM, & SANITARY SEWER RESOLUTION NO. 16-7365 ***REVISED*** CONSTRUCTION COST Construction Cost -Net Reimbursement to Developer after 25% cost share City Expenses (5% of total construction costs) Total Construction Costs to be Assessed Developer's Cost Share (25%) ASSESSMENT AMOUNT Construction Costs to be Assessed Series 2018 Bonds Costs of Issuance Total Project Costs to be Assessed $385,308.81 19,265.44 $404,574.25 ~80,914.85 $323,659.40 $323,659.40 4,810.89 3,665.93 5,710.86 $337,847.08 $723,620.07 32,390.08 $756,010.15 $255,602.28 $756,010.15 11,100.00 $767,110.15 ***REVISED*** ASSESSMENT ROLL CERTIFICATION The undersigned having been designated by the City of Salina, Kansas (the "City"), to detennine the amounts of the respective assessments and to prepare the proposed ***REVISED*** Assessment Ro11 therefor in connection with certain intema] improvements previously authorized by the governing body hereby reports that each and all of the respective assessments have been detennined to be as shown on Scltedu/e l attached hereto and made a part hereof by reference as though fully set out herein. Dated:~{?'\\ \ '\ , 2018. SCHEDULE I GRAND PRAIRIE ADDITION PHASE II STREETS, DRAINAGE, WATER SYSTEM, & SANITARY SEWER RESOLUTION NO. 16-7394 COLLECTED IN FIFTEEN (15) INSTALLMENTS Description of Property Amount of Proposed Assessment Lot 7, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 8, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 9, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 10, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 11, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 12, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 13, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 14, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 15, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 16, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19 873.36 Lot 17, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 38, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 39, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 40, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 41, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 42, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 43, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County. Kansas $19,873.36 TOTAL ASSESSMENTS= $337.847.08 RIVER TRAIL SECOND ADDITION STREETS, DRAINAGE, WATER SYSTEM, & SANITARY SEWER RESOLUTION NO. 16-7365 COLLECTED IN FIFTEEN (15) INSTALLMENTS Description of Property Amount of Proposed Assessment Lot 5, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 6, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County. Kansas $18.710.00 Lot 7, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 8, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 9, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18.710.00 Lot 10, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 11, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 12, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 13, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 14, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 15, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 16, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 17, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 18, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 19, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 20, Block 1, all in the River Trail 2"d Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 21, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 22, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 23, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 24, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 25, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 26, Block 1, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 2, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 3, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 4, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 5, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 6, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 7, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 8, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 9, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 10, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 11, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 12, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 13, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 14, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 15, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 16, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 17, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 18, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 19, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 20, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas $18,710.00 TOTAL ASSESSMENTS = $767,110.15 WAIVER OF ASSESSMENT PROCEEDINGS TO THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: The undersigned property owners (individually, each an "Owner"), are collectively the record titled owners of I 00% of the real estate situated in the City of Salina, Saline County, Kansas (the "City") hereinafter described (the "Property''), liable for special assessment for the costs of constructing the following described improvements (the "Improvements"): River Trail Second Addition -Streets, Drainage, Water System, & Sanitary Sewer Resolution No. 16-7365 The curb, gutter, pavement and grading for approximately 2,297 lineal feet of Saddlebrook Drive, Murray Lane, River Trail Road, Michael Circle, and Meredith Circle (the "Street Improvements"); The installation of approximately 345 lineal feet of storm sewer pipe, inlets, and all appurtenances thereto (the "Drainage Improvements"); The installation of approximately 2,090 lineal feet of six-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"); and The installation of approximately 2,171 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). The Owner hereby further states that the Owner has received a copy of the Statement of Final Costs and Assessment Roll Certification relating to the Improvements, which have been prepared by or on behalf of the City. After being advised of the Owner's right to a public hearing and other matters related to the Improvements, the Owner hereby agrees and consents to the following: I. Waiver of formal notice of and the holding of a public hearing by the governing body of the City for the purpose of considering special assessments against the Property; 2. Consent to the levy of special assessments against the Property in the amount of $18,710.00 per lot (the "Special Assessment") by appropriate proceedings of the governing body of the City; 3. Waiver of the thirty (30) day period after publication of the assessment ordinance of the City to contest the levy of the Special Assessment; and 4. If such special assessments are not prepaid during any period established by the City Commission for the prepayment of the Special Assessment, Owner acknowledges that any unpaid special assessments will be collected in annual installments of fifteen (15) years, together with interest thereon at the rate obtained by the City for its general obligation bonds issued to finance the costs of the Improvements; 5. Consent that the City may immediately proceed to issue its general obligation bonds to finance the costs of the Improvements in accordance with K.S.A. 12-6a01 et seq. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 1 WAIVER OF ASSESSMENT PROCEEDINGS -RIVER TRAIL SECOND ADDITION Sil!nature " ( " ~ -N~me:-~ ~- Title: \) )'.} Name: {f,f Jl-= Title: ~), :...._,/ Ronald L. Hanson Beth E. Hanson Name: ~~-:--~~~~~- Title: Pre"dt11 r Prooertv Owner KC Development, LLC JC Builders, Inc. Ronald L. & Beth E. Hanson Kelly Dunn Construction, Inc. Salina Area Technical College 2 Property Owned and Liable for Assessment Lots 5-14, 16-18, 20-21, 23, 25-26 Block 1, and Lots 2, 6-16, 19-20 Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas Lots 15 and 22, Block 1, and Lot 18, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas Lot 19, Block 1, all in the River Trail 2na Addition, City of Salina, Saline County, Kansas Lot 24, Block 1, and Lots 3-4, and 17, Block 2, all in the River Trail 2nd Addition, City of Salina, Saline County, Kansas Lot 5, Block 2, all in the River Trail 2°0 Addition, City of Salina, Saline County, Kansas CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS April 2, 2018 4:00p.m. The City Commission convened at 2:00 p.m. for the Police Department Training Center/Range Facility Tour and Presentation (1960 N. Old Highway 40) and at 3:45 p.m. for Citizens Forum. 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 silence. 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 month of April, 2018 as "Fair Housing Month" in the city of Salina. Chris Cadle, Human Relations Commissioner, read the proclamation and announced associated events. (3.2) The month of April, 2018 as "Child Abuse Prevention Month" in the city of Salina. Lori Blake, Child Advocacy and Parenting Services (CAPS) Executive Director, read the proclamation and announced associated events. CmZENS FORUM Judy Larson, Salina, Kansas, provided her thoughts regarding the use of foul language in the community. She continued to provide information regarding a recent experience she was involved in with another individual on the CityGo bus. PuBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. CONSENT AGENDA (6.1) Approve the minutes of March 26, 2018. (6.2) Authorize Amendment No. 1 to the Loan Agreement between the Kansas Department of Health and Environment, acting on behalf of the State of Kansas, and Salina, Kansas for the purpose of financing improvements to the City's water supply and water distribution system. (6.3) Authorize the Mayor to enter into an agreement for eight (8) wastewater pumps with JCI Industries, Inc. of Lee's Summit, Missouri, in the amount of $113,478. (6.4) Award contract for Ninth Street Tree Removal, Project No. 80016B, to Arbors Masters Tree Service of Wichita, Kansas in the amount of $47,900 with a $2,100 (4.4 % ) construction contingency. Commissioner Hay requested that Item 6.4 be removed from the consent agenda. Page 1 18-0117 Moved by Commissioner Davis, seconded by Commissioner Hodges, to approve the consent agenda less item 6.4. Aye: (5). Nay: (0). Motion carried. 18-0118 (6.4) Award contract for Ninth Street Tree Removal, Project No. 80016B, to Arbors Masters Tree Service of Wichita, Kansas in the amount of $47,900 with a $2,100 (4.4 % ) construction contingency. Commissioner Hay stated there was nearly a $30,000 difference in the engineers estimate and the low bid and asked if staff was comfortable with the low bid. Dan Stack, City Engineer, stated staff had contacted local tree contractors for an estimate of tree removal costs to base the engineers estimate from and stated staff had contacted references for Arbors Masters Tree Service and were happy with the information received. Moved by Commissioner Hay, seconded by Commissioner Davis, to award contract for Ninth Street Tree Removal, Project No. 800168, to Arbors Masters Tree Service of Wichita, Kansas in the amount of 547,900 with a 52,100 (4.4%) construction contingency. Aye: (5). Nay: (0). Motion carried. ADMINISTRATION (7.1) Second reading Ordinance No. 18-10931 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 Lighthouse Properties III, Inc. Commissioner Hoppock recused himself due to a conflict of interest. Mayor Ryan noted that Ordinance No. 18-10931 was passed on first reading on March 26, 2018 and since that time no comments have been received. 18--0119 Moved by Commissioner Hay, seconded by Commissioner Davis, to adopt Ordinance No. 18- 10931 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 Lighthouse Properties III, Inc. on second reading. A roll call vote was taken. Aye: (3) Davis, Hay, Ryan. Nay: (1) Hodges. Motion carried. Commissioner Hoppock returned to the meeting. (7.2) 2017 Special Assessment Projects (7.2a) Certification of final costs for 2017 special assessment projects and set April 23, 2018 as the date of public hearing. (7.2b) First reading Ordinance No. 18-10932. Mayor Ryan stated that he had a statutory conflict of interest with Kelly Dunn Construction and due to the agenda item being an administrative item and did not involve a contract; he felt he could participate in the discussion and vote today. Greg Bengtson, City Attorney, explained the statutory conflict and stated Mayor Ryan could participate in the discussion if he wished. Dan Stack, City Engineer, explained the projects, assessment costs and action options. Mayor Ryan asked for clarification on the note at the bottom of the Statement of Final Costs pertaining to the actual costs for the River Trail Second Addition project. Mr. Stack stated Page 2 the developer costs were higher than anticipated and the maximum amount in the development agreement was due to unforeseen improvements. He continued to state there were two (2) lots sold and the developer could get a waiver from the new property owners and ultimately request through the City Commission to ask for the maximum amount to be increased to cover the additional costs. Commissioner Hodges asked how many lots were still remaining in Phase 1 of Grand Prairie. Mr. Stack stated four (4) lots were remaining to be sold. Commissioner Hodges asked at what point did the land valuation move from an agricultural valuation to a residential lot valuation. Jason Gage, City Manager, stated the valuation change did not have a lot to do with the City of Salina's process but he thought once the property was developed on, the valuation would change to a residential lot valuation. Michael Schrage, Deputy City Manager, stated a change would be affective on January }st of a given year, he continued to state that the Saline County Appraiser's office would check the stage of development of a property to determine the valuation change. Commissioner Hodges asked how many lots were in Phase 2 of Grand Prairie. Mr. Stack stated 17. Commissioner Hodges asked when street maintenance was performed last on Phase 1 of Grand Prairie. Mr. Stack stated the street was microsurfaced last year. Commissioner Hodges asked how old the first phase of River Trail development ·was. Wayne Nelson, Civil Engineer II, stated the River Trail development was developed in five (5) phases with the first phase in 1998. Commissioner Hodges asked if the condition of the streets in the River Trail development was in an expected condition based on when it was put in. Mr. Stack stated the street was on the list to be crack sealed and microsurfaced this year. A conversation ensued between Commissioner Hodges, Mr. Stack and Mr. Schrage regarding the valuation of properties. Commissioner Hodges provided her thoughts on the timing for the valuation change on newly developed properties. Mr. Gage stated staff could look at the timing for the valuation change and see if anything could be done. Commissioner Hodges asked if soil testing and construction audits were still taking place for new developments. Mr. Stack stated soil testing was still being completed and staff had looked at valuating asphalt versus concrete for streets. Commissioner Hodges provided her thoughts on the condition of the streets. 18-0120 Moved by Commissioner Hoppock, seconded by Commissioner Hay, to certify the final costs for the 2017 Special Assessment Projects and set the Special Assessment public hearing date for April 23, 2018. Aye: (5). Nay: (0). Motion carried. 18-0121 Moved by Commissioner Hoppock, seconded by Commissioner Hay, to pass Ordinance No. 18- 10932 on first reading. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS None. OTHER BUSINESS Page 3 "' "' z "" w .. c ~ ~ j 18-0122 Judy Larson, Salina, Kansas, provided additional thoughts on the use of foul language in the community. Commissioner Hodges thanked Jason Gage, City Manager, for sharing an article titled "The Abilene Paradox". She continued to thank Mr. Gage for encouraging the Commission to call a time out if they would need one on a specific agenda item. She continued to ask for guidance for the appropriate way to start the conversations for a time out process. Jason Gage, City Manager, stated it would depend on the topic and staff could assist the Commission in determining the steps to take. ADJOURNMENT 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 4:29 p.m. [SEAL] ATIFST: ~IJJ~ Shandi Wicks, CMC, City Clerk Trent W. Davis, M.D., Vice-l\fayor Page4 "' on CITY OF SALIN A, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS April 23, 2018 4:00p.m. The City Commission convened at 1:00 p.m. for the Karen M Graves Plaza Dedication at Tony's Pizza Event Center, 2:30 p.m. for Development Group: Special Assessments Discussion and at 3:45 p.m. for Citizens Forum. 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 silence. 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 Oerk. AWARDS AND PROCLAMATIONS Mayor Ryan noted that Item No. 3.3 would be added to the agenda for the Arbor Day proclama ti.on. 18-0140 Moved by Commissioner Davis, seconded by Commissioner Hay, to add Agenda Item 3.3 for the Arbor Day proclamation. Aye: (5). Nay: (0). Motion carried. (3.1) The day of April 28, 2018 as "Multiple Sclerosis Awareness Day" in the city of Salina. Dean Atteberry read the proclamation and announced associated events. (3.2) Presentation of the AAA Community Traffic Safety Award to the Salina Police Department by Shawn Steward with AAA Kansas. Shawn Steward provided information about the award and presented the award to Chief Brad Nelson and Sgt. Brent Rupert. (3.3) The day of April 27, 2018 as "Arbor Day" in the city of Salina. Chris Cotten, Director of Parks & Recreation, read the proclamation. CmzEi~S FORUM None. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME (5.1) Public hearing on the 2017 special assessment projects. (5.la) Second reading Ordinance No. 18-10932 levying special assessments for infrastructure improvements. Mayor Ryan opened the public hearing. Dan Stack, City Engineer, explained the projects, total costs and funding. There being no further comments the public hearing was closed. Page I 18-0141 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to adopt Ordinance No. 18-10932 levying special assessments for infrastructure improvements on second reading. A roll call vote was taken. Aye: (5) Davis, Hay, Hodges, Hoppock, Ryan. Nay: (0). Motion carried. CONSE.'\'T AGENDA (6.1) (6.2) Approve the minutes of April 16, 2018. Award contract for 9th Street Curb & Gutter Improvements, Project No. 80016, to Bryant and Bryant Construction, Inc. in the amount of $586,430 with a 5% construction contingency ($29,321.50). (6.3) Award contract for Parking Lot Entrance Repairs/Sidewalk Ramps, Project No. 80010, to Lancaster Construction of Salina in the amount of $31,770.22 with an $8,739.70 contingency. (6.4) Authorize the Mayor to execute a public utility easement granting a 10 foot utility easement across the south 10 feet of a public parking lot located on Lot 156 on Fifth Street in the Original Town of Salina and to accept the offered public utility easement dedications from Lighthouse Properties III, Inc. and Blue Beacon International, Inc. related to the downtown hotel project. 18-0142 Moved by Commissioner Hodges, seconded by Commissioner Hay, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. ADMINISTRATION (7.1) Resolution No. 18-7550 amending the City of Salina's Slrared Vision Statement and Strategic Plan for 2018. Jason Gage, City Manager, explained the amendments and action options. Commissioner Davis suggested eliminating the wording "In addition, Salina will begin making efforts to be an environmentally friendly community" in Section 2 subsection (i). ?\1r. Gage stated the wording was redundant to wording in another section. The Commission reached a consensus to remove the wording. Commissioner Hoppock asked if the Planning Commission had a chance to review the plan and when the annual meeting with Planning and Zoning Commission would occur. Dean Andrew, Director of Planning, stated a date had not been set but the Planning and Zoning Commission would be glad to work with the City Commission to get a joint time set up for the review of the Comprehensive Plan. The City Commission reached a consensus for Mr. Andrew to work with the Planning Commission to secure a date for the annual meeting. 18-0143 Moved by Commissioner Hoppock, seconded by Commissioner Hay, to adopt Resolution No. 18- 7550 amending the City of Salina's Slzared Vision Statement and Strategic Plan for 2018 with the deletion of the last sentence of Section 2 (i). Aye: (5). Nay: (0). Motion carried. (7.2) Discuss the continued inclusion of the Salina Police Department Training Center project in the 2018-2022 Capital Improvement Plan. Jason Gage, City Manager, explained the project. Chief Nelson showed and explained a presentation regarding the project. Page 2 Mr. Gage provided information on the project, project cost, 2018-2022 Capital Improvement Plan project funding and action options. Commissioner Hodges asked if unbacked bonds required the same reserve for deficit. Mr. Gage stated he would have to ask bond counsel for an answer. Commissioner Hodges asked for staff to explain the ORT process and how staff evaluates the process. Michael Schrage, Deputy City Manager, stated the process was optional but the applicant was asked to describe the project which could include site plans; staff would then review the planning and zoning requirements, describing any needed requirements and then would discuss the building and would wrap up with a submittals list of required documents to have a successful project. Commissioner Hodges provided information on the present location and the cost for utility hookups. Mr. Gage stated the cost estimate provided was for on-site utility hookups and all costs for the utility hookup were to be included in the project budget. Commissioner Hodges provided her thoughts on the timing of the project, the potential for collaboration and the project as a whole. Chief Nelson stated there had been work on the project for three (3) years and explained his conversations with the Kansas Highway Patrol on collaboration for the project. He continued to provide his thoughts on the project. Mr. Gage stated the former Saline County Sheriff took the item to the Saline County Commission in the past and they did not have an interest.in the project. Commissioner Hodges continued to provide her thoughts. Mr. Gage asked if the City Commission had interest in another entity controlling the facility but allowing the City of Salina to use at the same cost estimated today. Commissioner Davis stated no and provided his thoughts on the project. Commissioner Hay provided his thoughts on the current facility and the need for the project. Commissioner Hay stated there were projects (Former Schilling Air Force Base, County- Wide communications system, etc.) that the cost was unknown. Mr. Gage stated there were some projects with the costs unknown. He continued to state the Former Schilling Air Force Base cost should be received in a couple weeks, the County-Wide Communications System project cost should be submitted in 3 to 4 months. Commissioner Hay provided his thoughts on other project costs within the 2018-2022 Capital Improvement Plan. A conversation ensued between the Commissioners, regarding the other projects within the 2018-2022 Capital Improvement Plan and the Salina Police Department Training Center project moving forward. Mayor Ryan provided his thoughts on the project moving forward and future collaboration for the facility. Commissioner Hoppock asked if a construction manager would still be looked at for the facility. Mr. Gage stated yes at approximately 5%. Commissioner Hoppock asked what the land acquisition would be. Mr. Gage stated until the decision was made to move forward, he did not want to state the amount. Commissioner Hoppock asked how the utilities would be handled. Mr. Gage stated the Page 3 "' "' utilities would be available to be hooked up at the location. Commissioner Hoppock asked how much the simulator would cost. Chief Nelson stated approximately $250,000. A conversation ensued between the Commission, Mr. Gage and Chief Nelson on the location of the simulator. Mr. Gage asked if the City Com.mission would like staff to create an agenda item to bring back to the Commission to allow for solicitation of private donations for the facility. Commissioner Hoppock asked how Chief Nelson would prioritize the nvo projects (Salina Police Department Training Center and the county-wide communication system). Chief Nelson stated it was a difficult question but he would have to say the Salina Police Department Training Center project. Darrell Wilson, 613 Oakdale Drive, provided his thoughts on the current facility and the need for a new facility. Mike Marshall, Salina, former employee of the Salina Police Department, provided his thoughts on the use of a public facility and the need for a new facility. Chris Trocheck, Salina, former employee of the Salina Police Department, provided information on his duty in training of officers as a firearms instructor and his thoughts on the need for a new facility. Ron Styles, retired Lieutenant of the Salina Police Department, provided his thoughts on the need for properly trained officers. Luci Larson, Salina, provided her thoughts on the current facility, the struggle to have a full staff at the police department, other important projects in the community and the need for a new facility to store vehicles and ammunition. Carolyn Peterson, Salina, provided her thoughts on the sense of urgency for the project and the need for the facility. Representative J.R. Oaeys, 69th District, stated he supported the law enforcement training center, he continued to provide information on the process of the Kansas Highway Patrol budget and stated there was interest in a training facility and range with collaboration with the Salina Police Department. Commissioner Hay asked what type of timeframe would it be. Representative Claeys stated the project would need to be developed this summer with funding request to be reviewed for approval next year. Chief Nelson stated the need for the facility to be larger to accommodate both the Salina Police Department and the Kansas Highway Patrol. A conversation ensued between the Commission and Chief Nelson regarding the look of the new facility if a collaboration occurred with the Kansas Highway Patrol. Commissioner Hodges asked when the project appeared in the Capital Improvement Plan. Chief Nelson stated in 2016 as unfunded, then was added to the 5-year Capital Improvement Plan. Commissioner Hodges asked if the project would be completed in the 5-year cycle or if the project would be completed in the next year. Mr. Gage stated if the project was on a certain year, there was expectation that the project occur in that year. Commissioner Hoppock asked how the project would be funded. Mr. Gage stated through Page4 general obligation bonds. Commissioner Hodges thanked Representative Claeys for his attendance at the meeting. Representative Oaeys provided additional information on options available in the future for collaborations on projects between the State of Kansas and the City of Salina. Commissioner Hay asked if there was a chance for the Kansas Highway Patrol to buy into the project. Mr. Gage stated there were several ways to partner on a project; interlocal agreements or user pay agreements. A conversation ensued between Commissioner Hay and Mr. Gage regarding partnerships with other entities. Chief Nelson provided information on the reason why the range was designed with outside lanes. Jon Blanchard, 1117 State Street, stated how necessary the new facility was and thanked the commission for the full review of the project. He stated if the facility were to move to a location other than the current facility, it be in close proximity of the police station and asked how was the location logistically worth operationally and if there were any environmental needs for the possible new location. He continued to provide his thoughts on the project. Commissioner Davis provided his thoughts on the training center project and how collaborations with Saline County might occur. Com.missioner Hodges asked if productive conversations could happen betl.,•een now and January, 2019. Representative Claeys stated yes, he thought a meeting could happen. Commissioner Davis asked if Chief Nelson's meetings with the Kansas Highway Patrol were in regards to collaboration and interest in a new facility. Chief Nelson stated he had two (2) meetings with the Kansas Highway Patrol regarding collaboration and was told the Kansas Highway Patrol was not interested in a new facility. A conversation ensued bern•een the Commission and Chief Nelson regarding the project and possible collaboration on the training center. Commissioner Hay provided his thoughts on possible collaborations with the Kansas Highway Patrol. Mayor Ryan provided his thoughts on possible collaborations with other entities including the Kansas Highway Patrol and Saline County. Mr. Gage stated he had conversations with Cornell Weber with the Kansas Highway Patrol regarding a training center and Cornell Weber did not have any interest in a new training center. He continued to provide information on the delays of the project if there would be collaboration with other entities. A conversation continued to ensue between the Commission, Chief Nelson and Mr. Gage regarding possible collaborations with other entities. Commissioner Hoppock provided his thoughts on the project and the funding of the project. Commissioner Hoppock asked if the countywide conununication system could be moved out a year. Mr. Gage stated he would have to check into that. Commissioner Hoppock continued to provide his thoughts on collaboration with the Kansas Highway Patrol. Page 5 U'l U'l z IL w i i J Commissioner Hoppock asked if there was a way to put a ceiling on the project when it went out to bid. Mr. Gage stated the budget could always be re-established and the project go back out for bid but it would probably be in the following year. Commissioner Hodges asked how the new location would affect the department's response time. Chief Nelson stated the current facility location was close in proximity to the department's offices. He continued to state the proposed facility would be in far south Salina but the employees would be in training and not on as active duty. Commissioner Hodges asked about potential environmental effects on the project located in south Salina. Mr. Gage stated that there was a potential for environmental effects but the effects would be reviewed by the designer. Mr. Schrage provided additional information regarding the possible environmental effects. Commissioner Hodges asked if the Commission was interested in looking at a collaboration with the Kansas Highway Patrol. Mayor Ryan stated yes. Commissioner Davis stated no and provided his thoughts. Commissioner Hay stated he would like to see a collaboration but did not want the project construction delayed. Chief Nelson stated there were some add alternates that could be added to the project at a later time. Commissioner Hoppock asked if the Commission took no action would that leave the project in the capital improvement plan as it was currently listed. Mr. Gage stated yes, but staff would need to know if the Commission would like staff to take a specific direction. 18-0144 Moved by Commissioner Davis, seconded by Commissioner Hoppock, to take no action. A conversation ensued between the Commission and Mr. Gage regarding the current project path and possible collaborations. Commissioner Hay asked if the construction cost could be trimmed down if the project was moving forward. Mr. Gage stated yes, the construction cost could be reduced and it would be best for staff to have the information tonight. He continued to state it would be helpful for staff and the bidders to know if the budget was adjusted. Commissioner Hay asked how the Commission would determine what the adjusted budget might be. Mr. Gage stated it was difficult and he would not go below $4 million. A conversation ensued between the Commission and Mr. Gage regarding the budget adjustment and the alternates of the project. Commissioner Hoppock asked if the motion would need to be amended. Mr. Gage stated there was not typically a motion to take no action and explained the action options. Greg Bengtson, City Attorney, stated the withdrawal might be the best way to clean the slate. Commissioner Davis withdrew his motion and Commissioner Hoppock withdrew his second. 18-0145 Moved by Commissioner Davis, seconded by Commissioner Hoppock, to preserve the current 5- year Capital Improvement Plan project status for the Police Department Training Center with all remaining project costs not to exceed $4.5 million dollars and to ask staff to work with the designer to provide alternate bid items. Page6 Commissioner Hodges provided her thoughts on the motion. Commissioner Hay provided his thoughts on the project waiting until 2020. Mayor Ryan called the question. Aye: (3). Nay: (2) Hodges, Ryan. Motion carried. Mayor Ryan called for a 10 minute break at 7:15 pm. The City Commission reconvened at 7:25 p.m. DEVELOPMENT BUSINESS (8.1) First reading Ordinance No. 18-10933 amending Chapter 35, Article XII, Sections 35- 261, 35-262, 35-264, 35-266 and 35-270 to clarify the rights and responsibilities under Sidewalk Cafe License Agreements approved in the do\'\'Iltown area. Dean Andrew, Director of Planning, explained the amendments and action options. Commissioner Hoppock asked why the hours were 9pm and 10 pm for beverages to be served on the sidewalk. Mr. Andrew stated he thought it was the preference of the commission at the time. Commissioner Hoppock provided his thoughts on the time and would be in favor of changing it. Commissioner Hoppock asked why the area was -limited to 200 square feet. Mr. Andrew stated the language allowed for a larger area to be approved by way of petition. Commissioner Hoppock asked if the ordinance modification had to go to the Planning Commission first. Mr. Andrew stated any modification could be approved by the City Commission. Mr. Andrew stated he did not know if the city manager was aware why the time limit was established. Jason Gage, City Manager, stated he did not know if the time was limited due to the loft living. Michael Schrage, Deputy City Manager, stated the retail sale of alcohol was allowed from 9:00 a.m. to 10:00 p.m. but the sale of alcohol at an establishment was allowed from 9 am to 2 am. Commissioner Davis asked how close the 200 square foot area was allowed to the curb. Mr. Andrew stated a minimum clear zone between the sidewalk and the curb of 8 foot must be maintained. Mayor Ryan asked what the fencing would look like. Mr. Andrew stated a wrought iron fence would be used for the area. Commissioner Hodges asked that the time be changed to 12:00 a.m. instead of 2:00 a.m. Mr. Andrew asked if the commission wanted to change the limit of hours of sales in Section 35-268 (4) b to midnight. The consensus was yes. Commissioner Hodges asked if the ch"anges were made to the fa;ade program guidelines to include any non-permanent items only to be funded as part of a larger project and complimentary to primary, fixed improvements. Penny Bettles, Salina Downtown, Inc. Director explained that the guidelines were updated and provided to the City Oerk. 18-0146 Moved by Commissioner Hodges, seconded by Commissioner Hay, to pass Ordinance No. 18- 10933 amending Chapter 35, Article XII, Sections 35-261, 35-262, 35-264, 35-266, 35-268 and 35-270 · to clarify the rights and responsibilities under Sidewalk Cafe License Agreements approved in the downtown area with the addition of a change to the language in Section 35-268 (4) to allow Page 7 z ... w alcoholic beverages to be served in sidewalk dining areas until midnight instead of 10:00 p.m., on first reading. Aye: (5). Nay: (0). Motion carried. OTIIER BUSINESS Jason Gage, City Manager, stated Commissioner Hay asked for an update on the recycling center. Jim Kowach, Director of Public Works, stated the air, soil and water samplings were completed a couple weeks ago. He continued to state staff received the air and soil samples back, the air samples were okay but the soil samples had to be redone and staff was awaiting the results. He also stated staff was hoping for the results in a couple weeks. He additionally stated it looked like the facility would open in late May. Greg Bengtson, City Attorney, stated there was a prospect of action after the executive session. (9.1) Request for executive session (legal). I move the city commission recess into executive session for _ minutes to discuss with legal counsel the subject of the City's legal course of action in response to the decision of the Court of Appeals in the road annexation case based upon the need for consultation with an attorney for the public body which would be deemed privileged in the attorney-client relationship pursuant to K.S.A. 45-7319(b)(2). The open meeting will resume in this room at p.m. 18-0147 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to recess into executive session for 10 minutes to discuss with legal counsel the subject of the City's legal course of action in response to the decision of the Court of Appeals in the road annexation case based upon the need for consultation with an attorney for the public body which would be deemed privileged in the attorney-client relationship, pursuant to K.S.A. 45-7319(b)(2). The open meeting will resume in this room at 7:58 p.m. Aye: (5). Nay: (0). Motion carried. 18-0148 The City Commission recessed into executive session at 7:48 p.m. and reconvened at 7:58 p.m. No action was taken. ADJOURNMENT Moved by Commissioner Hay, seconded by Commissioner Hodges, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 7:59 p.m. [SEAL] ATIFST: ~·a]~ Shandi Wicks, CMC, City Clerk Karl F. Ryan, Mayor Page 8 (Summary published in The Salina Journal on April 30, 2018) (Posted on the City of Salina website from April 24 to Mav 8. 2018) ORDINANCE NO. 18-10932 AN ORDINANCE LEVYING SPECIAL ASSESSMENTS ON CERTAIN PROPERTY TO PAY THE COSTS OF INTERNAL IMPROVEMENTS IN THE CITY OF SALINA, KANSAS; PROVIDING FOR THE COLLECTION OF SUCH SPECIAL ASSESSMENTS; AND TAKING OTHER RELATED ACTIONS IN CONNECTION WITH SUCH IMPROVEMENTS. . WHEREAS, the governing body of the City of Salina, Kansas (the "City") has previously authorized certain internal improvements (the "Improvements") to be constructed pursuant to K.S.A. 12-6a0 I er seq. (the "Act"); and WHEREAS, the governing body on this date has conducted a public hearing in accordance with the Act related to the Grand Prairie Addition Phase II improvement district, as further described below, and desires to levy assessments on certain property benefited by the construction of such Improvements; and WHEREAS, on April 16, 2018, the governing body received a waiver of public hearing and right to protest the levy of special assessment from the owners of I 00% of the property liable for assessment for the cost of the Improvements related to River Trail Second Addition, as further described below, and desires tp levy assessments on certain property benefited by the construction of such Improvements. NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY, OF SALINA, KANSAS: Section 1. Levy of Assessments. For the purpose of paying the costs of the following described Improvements: Grand Prairie Addition Phase II -Streets, Drainage, Water System, & Sanitary Sewer · Resolution No. 16-7394 The curb, gutter, pavement and grading for approximately 1,070 lineal feet of Bentgrass Drive (the "Street Improvements"); The installation of approximatdy 56 lineal feet of stonn sewer pipe, inlets, and all appurtenances thereto (the "Drainage Improvements"); The installation of approximately 49 lineal feet of six-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appunenances thereto (the ••water System Improvements"); The installation of approximately I, 165 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appunenances thereto (the "Sanitary Sewer Improvements"); River Trail Second Addition -Streets, Drainage, Water System, & Sanitary Sewer Resolution No. 16-7365 The curb, gutter, pavement and grading for approximately 2,297 lineal feet of Saddlebrook Drive, Murray Lane, River Trail Road, Michael Circle, and Meredith Circle (the "Street Improvements"); The installation of approximately 345 lineal feet of storm sewer pipe, inlets, and all appurtenances thereto {the "Drainage Improvements"); The installation of approximately 2,090 lineal feet of six-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"); The installation of approximately 2, 171 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"); there are hereby levied and assessed the amounts (with such clerical or administrative amendments thereto as may be approved by the City Attorney) against the property described on Exltibit A attached hereto. Section 2. Payment of Assessments. The amounts so levied and assessed in Section 1 hereof shall be due and payable from and after the date of publication of this Ordinance. Such amounts may be paid in whole or in pan within thirty (30) days from the date of publication of this Ordinance. Section 3. Notification. The City Clerk shall notify the' owners of the properties described in Ex/ti bit A attached hereto (insofar as known to the City Clerk) of the amounts of their respective assessments. The notice shall also state that unless such assessments are paid within thirty (30) days from the date of publication of this Ordinance, bonds will be issued therefor, and the amount of such assessment will be collected in installments with interest. Section 4. Certification. Any amount of special assessments not paid within the time prescribed in Section 2 hereof shall be certified by the City Clerk to the Clerk of Saline County, Kansas, in the same manner and at the same time as other taxes are certified and will be collected in annual installments over fifteen ( 15) years, together with interest on such amounts at a rate not exceeding the ma.ximum rate therefor as prescribed by the Act. Interest on the assessed amount remaining unpaid between the effective date of this Ordinance and the date the first installment is payable, but not less than the amount of interest due during the coming year on any outstanding bonds issued to finance the Improvements, shall be added to the first installment. The interest for one year on all unpaid installments shall be added to each subsequent installment until paid. Section S. Reimbursement to Developer for River Trail Second Addition Improvements. Pursuant to Resolution No. 16-7365, the governing body approved and the Mayor executed that certain Improvement District Devel_opment Agreement dated as of August 29, 2016 (the "Development Agreement") between KC Development, LLC (the "Developer") and the City. Nor\,•ithstanding the terms of the Development Agreement, the governing bod)' hereby approves reimbursement to the Developer in the amount of $723,620.07, which amount represents the actual total eligible costs of the Improvements (as defined in the Development Agreement) less 25% of the City's actual expenses and bond issuance costs. 2 "' "' Section 6. Effecth·e Date. This Ordinance shall take effect and be in force from and after its passage, approval and publication of the Ordinance or a summary thereof once in the official City newspaper. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 3 -~ PASSED by the governing body of the City on April 23, 2018 and signed and APPROVED Ai~D Sl~NED by the Mayor. i (SEAL) w 2 ~ ~ ATTEST: 1· Shandi Wicks, CMC, City Clerk (Signature Page to Assessment Ordinance) EXHIBIT A GRAND PRAIRIE ADDITION PHASE II STREETS, DRAINAGE, WATER SYSTEM, & SANITARY SEWER .. ~ RESOLUTION NO. 16-7394 z COLLECTED IN FIFTEEN (15) INSTALLMENTS ... w !! Description of Property Amount of Proposed ~ i Assessment a ;g Lot 7, Block 2, all in the Grand Prairie Addition, City of Salina, A Saline Count\', Kansas $19,873.36 Lot 8, Block 2, all in the Grand Prairie Addition, City of Salina, Saline Countv, Kansas $19,873.36 Lot 9, Block 2, all in the Grand Prairie Addition, City of Salina, Saline Countv, Kansas $19,873.36 Lot IO, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 11, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 12, Block 2, all in the Grand Prairie Addition, City of Salina, Saline Count\', Kansas $19,873.36 Lot 13, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 14, Block 2, all in the Grand Prairie Addition, City of Salina, Saline Countv. Kansas $19,873.36 Lot 15, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 16, Block 2, all in the Grand Prairie A.ddition, City of Salina, Saline Count\', Kansas $19,873.36 Lot 17, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 38, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 39, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 40, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 41, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 42, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 Lot 43, Block 2, all in the Grand Prairie Addition, City of Salina, Saline County, Kansas $19,873.36 TOTAL ASSESSMENTS = 5337,847.08 A-1 RIVER TRAIL SECOND ADDITION STREETS, DRAINAGE, WATER SYSTEM, & SANITARY SEWER RESOLUTION NO. 16-7365 COLLECTED L~ FIFTEEN (15) L~STALLMENTS .... .... z Description of Property Amount of Proposed a.. ... Assessment .. 5 Lot 5, Block I, all in the River Trail 2n11 Addition, City of Salina, ll C(I :i Saline Countv, Kansas $18,710.00 .. Lot 6, Block I, all in the River Trail 2°0 Addition, City of Salina, .Jl ~ c Saline Count\', Kansas $18,710.00 8 Lot 7, Block I, all in the River Trail 2no Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 8, Block I, all in the River Trail 2°0 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 9, Block I, all in the River Trail 2na Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 10, Block I, all in the River Trail 200 Addition, City of Salina, Saline County, Kansas SI 8,710.00 Lot l 1, Block I, all in the River Trail t'° Addition, City of Salina, Saline County, Kansas Sl8,7IO.OO Lot 12, Block I, all in the River Trail 200 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 13, Block I, all in the River Trail 200 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 14, Block I, all in the River Trail 2"° Addition, City of Salina, Saline County, Kansas SI 8,7IO.OO Lot I 5, Block 1, all in the River Trail 2"° Addition, City of Salina, Saline Count\', Kansas s 18.710.00 Lot 16, Block I, all in the River Trail 200 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 17, Block I, all in the River Trail 200 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 18, Block I, all in the River Trail 2na Addition, City of Salina, Saline County, Kansas $18,710.00 Lot l 9, Block I, all in the River Trail 2no Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 20, Block I, all in the River Trail 2no Addition, City of Salina, Saline Counn•, Kansas $18,7l0.00 Lot 21, Block I, all in the River Trail 2no Addition, City of Salina, Saline Counn•, Kansas $18,710.00 Lot 22, Block I, all in the River Trail 2na Addition, City of Salina, Saline Counn•, Kansas $18,710.00 Lot 23, Block I, all in the River Trail 2"0 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 24, Block I, all in the River Trail 2°0 Addition, City of Salina,· Saline County, Kansas $18.710.00 Lot 25, Block I, all in the River Trail 2llO Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 26, Block l, all in the River Trail 2na Addition, City of Salina, $18,710.00 A-2 Saline County, Kansas Lot 2, Block 2, all in the River Trail 2llCI Addition, City of Salina, Saline County, Kansas $18, 710.00 t!! Lot 3, Block 2, all in the River Trail 2llCI Addition, City of Salina, Saline County, Kansas $18,710.00 z Lot 4, Block 2, all in the River Trail 2llCI Addition, City of Salina, IL w Saline County, Kansas $18,710.00 .. . i; Lot 5, Block 2, all in the River Trail 2llCI Addition, City of Salina, ~ .,, Saline County, Kansas $18,710.00 u 'a J Lot 6, Block 2, all in the River Trail tlG Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 7, Block 2, all in the River Trail 2nci Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 8, Block 2, all in the River Trail 2llO Addition, City of Salina, Saline Count\', Kansas $18,710.00 Lot 9, Block 2, all in the River Trail 21111 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 10, Block 2, all in the River Trail 200 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 11, Block 2, all in the River Trail 21111 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 12, Block 2, all in the River Trail 211<1 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 13, Block 2, all in the River Trail 200 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 14, Block 2, all in the River Trail 200 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot l S, Block 2, all in the River Trail 21111 Addition, City of Salina, Saline County, Kansas SI 8,710.00 Lot 16, Block 2, all in the River Trail 21111 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 17, Block 2, all in the River Trail 2nc1 Addition, City of Salina, Saline Countv, Kansas $18,710.00 Lot 18, Block 2, all in the River Trail 2"" Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 19, Block 2, all in the River Trail 2nc1 Addition, City of Salina, Saline County, Kansas $18,710.00 Lot 20, Block 2, all in the River Trail 200 Addition, City of Salina, Saline County, Kansas $18,710.00 TOTAL ASSESSMENTS= $767,110.15 A-3 I J (Published in the Salina Journal on April 30, 2018) SUMMARY OF ORDINANCE NO. 18-10932 On April 23, 2018, the governing body of the City of Salina, Kansas, passed an ordinance entitled: AN ORDINA.i~CE LEVYING SPECIAL ASSESSMENTS ON CERTAIN PROPERTY TO PAY THE COSTS OF li~TER.NAL IMPROVEMENTS L~ THE CITY OF SALINA, KANSAS; AND PROVIDING FOR THE COLLECTION OF SUCH SPECIAL ASSESSMENTS. The Ordinance levies special assessments on certain property located in Grand Prairie Addition and River Trail Second Addition, which have been benefitted from certain internal improvements constructed pursuant to K.S.A. 12-6a01 et seq. and provides an opportunity for prepayment, in whole or in part, of the special assessments. A schedule of the amounts of the special assessments and the property benefitted are attached to the Ordinance. Any amount of special assessments not paid within the time prescribed in the Ordinance shall be certified by the City Clerk to the Clerk of Saline County, Kansas, in the same manner and at the same time as other taxes are certified and will be collected in annual installments, together with interest on such amounts at a rate not exceeding the maximum rate therefor as prescribed by law. A complete text of the Ordinance may be obtained or viewed free of charge at the office of the City Clerk, 300 W. Ash Street, Room I 07, Salina, Kansas. A reproduction of the Ordinance is available for not less than 7 days following the publication date of this Summary at www.salina-ks.gov. This Summary is hereby certified to be legally accurate and sufficient pursuant to the Jaws of the State of Kansas. DA TED: April .21_, 2018. A-4 Publisher's Affidavit I, ___ Cb....,.n.,.·....,scy~F...,in...,k ____ , being duly sworn declare that I am a I.egal Coordinator of THE SALINA JOURNAL, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, which newspaper has been admitted to the mails as second class matter in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice, and that the Ordinance 18-10932 Notice has been correctly published in the entire issue of said nel\·spaper one time, publication being given in the issue of April 30, \ Subscribed and sworn to before me, this '~ dayof --~ ....... -----A.0.20 j_f_ ~ lJ~ Notary Public Printer's Fee S124.50 NOTEPURCHASEAGREEMENT BETWEEN CITY OF SALINA, KANSAS AND THE BENNINGTON STATE BANK SALINA, KANSAS $6,000,000 GENERAL OBLIGATION TEMPORARY NOTES SERIES 2018-1 DATED AS OF JULY 30, 2018 Mayor and Governing Body City of Salina, Kansas $6,000,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION TEMPORARY NOTES SERIES 2018-1 NOTEPURCHASEAGREEMENT July 9, 2018 On the basis of the representations, warranties and covenants and upon the terms and conditions contained in this Note Purchase Agreement, The Bennington State Bank, Salina, Kansas (the "Purchaser"), hereby offers to purchase all (but not less than all) of the above-described notes (the ''Notes"), to be issued by the City of Salina, Kansas (the "Issuer"), under and pursuant to a Resolution to be adopted by the governing body of the Issuer on July 9, 2018 (the "Note Resolution"). All capitalized terms not specifically defmed herein shall have the same meaning as defined in the Note Resolution, unless some other meaning is plainly indicated. This offer is made subject to acceptance of this Note Purchase Agreement by or on behalf of the governing body of the Issuer on or before 10:00 a.m., applicable Central time, on July 10, 2018. SECTION 1. PURCHASE, SALE AND DELIVERY OF THE NOTES (a) On the basis of the representations, warranties and covenants contained herein and in the other agreements and documents referred to herein, and subject to the terms and conditions herein set forth, the Purchaser agrees to purchase from the Issuer and the Issuer agrees to sell to the Purchaser the Notes not later than 12:00 Noon, applicable Central time on July 30, 2018, or such other place, time or date as shall be mutually agreed upon by the Issuer and the Purchaser at the purchase price set forth on Exhibit A attached hereto, plus accrued interest from the Dated Date to the Closing Date (the "Purchase Price"). The date of such delivery and payment is herein called the "Closing Date," the hour and date of such delivery and payment is herein called the "Closing Time" and the transactions to be accomplished for delivery of the Notes on the Closing Date shall be herein called the "Closing." The Notes shall be issued under and secured as provided in the Note Resolution and the Notes shall have the maturities and interest rates as set forth therein and on Exhibit A attached hereto, which also contains a summary of the redemption provisions of the Notes. The Notes shall contain such other provisions as are described in the Note Resolution. (b) The Issuer acknowledges and agrees that: (1) the purchase and sale of the Notes pursuant to this Note Purchase Agreement is an arm's-length commercial transaction between the Issuer and the Purchaser; (2) in connection with such transaction, the Purchaser is acting solely as a principal and not as an agent or a fiduciary of the Issuer; (3) the Purchaser has not assumed (individually or collectively) a fiduciary responsibility in favor of the Issuer with respect to the offering of the Notes or the process leading thereto (whether or not the Purchaser, or any affiliate of the Purchaser, has advised or is currently advising the Issuer on other matters) or any other obligation to the Issuer except with respect to the obligations expressly set forth in this Note Purchase Agreement; and ( 4) the Issuer has consulted with its own legal and fmancial advisors to the extent it deemed appropriate in connection with the offering of the Notes. ( c) Payment of the Purchase Price for the Notes shall be made by federal wire transfer or certified or official bank check or draft in immediately available federal funds, payable to the order of a financial institution to be designated by the Issuer for the account of the Issuer on or before the Closing Time on the Closing Date. Upon such payment, the Notes shall be delivered and released upon the instructions of the Purchaser. (d) The delivery of the Notes shall be made in definitive form, as fully registered Notes (in such denominations as the Purchaser shall specify in writing at least 48 hours prior to the Closing Time) duly executed and authenticated; provided, however, that the Notes may be delivered in temporary form. The Notes shall be available for examination and packaging by the Purchaser at least 24 hours prior to the Closing Time. SECTION 2. ESTABLISHMENT OF ISSUE PRICE The Purchaser agrees to assist the Issuer in establishing the issue price of the Notes and shall execute and deliver to the Issuer at the Closing Time an "issue price" or similar certificate to accurately reflect, as applicable, the sales price of the Notes, in substantially the form attached hereto as Exhibit C. The Purchaser is not acting as an Underwriter with respect to the Notes. The Purchaser has no present intention to sell, reoffer, or otherwise dispose of the Notes (or any portion of the Notes or any interest in the Notes). The Purchaser has not contracted with any person pursuant to a written agreement to have such person participate in the initial sale of the Notes, and the Purchaser has not agreed with the Issuer pursuant to a written agreement to sell the Notes to persons other than the Purchaser or a related party to the Purchaser. The term "Related Party" is defined in U.S. Treasury Regulation§ 1.150-l(b) which generally provides that the term related party means any two or more persons who have a greater than 50 percent common ownership, directly or indirectly. The term "Underwriter" means (A) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Notes to the Public, and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) of this paragraph to participate in the initial sale of the Notes to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Notes to the Public). SECTION 3. NO OFFICIAL STATEMENT No official statement or other offering document has been prepared in connection with the sale of the Notes. SECTION 4. REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS OF THE PURCHASER By the execution hereof the Purchaser hereby represents, warrants and agrees with the Issuer that as of the date hereof and at the Closing Time: (a) Purchaser is a banking corporation organized and existing under the laws of the State of Kansas with its principal corporate offices located in Salina, Kansas, and, pursuant to all necessary corporate action, is authorized to purchase the Notes and to execute and perform this Note Purchase Agreement. (b) Purchaser is knowledgeable and experienced in financial and business matters and is capable of evaluating investment merit and risks associated with its purchase of the Notes. The Purchaser has been furnished and has reviewed the provisions of the Note Resolution relating to the authorization of 2 and security for payment of the Notes. Prior to the execution hereof Purchaser also obtained and examined such fmancial records and information necessary in order to enable itself to fully evaluate the terms and provisions of the Notes and of the Note Resolution authorizing their issuance and providing for the payment thereof and the financial and investment merits and risks associated with the purchase of the Notes. On the basis of such information materials and Purchaser's investigation, Purchaser has made the decision to purchase the Notes and has not relied upon any representations of the Issuer or any of its officers or employees with respect to the Notes. ( c) Purchaser is purchasing the Notes as an investment for its own account and not with a view to the sale, redistribution or other disposition thereof in the ordinary course of business in a transaction not amounting to a public offering as contemplated by Section 4(2) of the Securities Act of 1933, as amended (the "1933 Act"). Purchaser acknowledges that the Notes will not be registered under the 1933 Act or any applicable state securities law. SECTION 5. ISSUER'S REPRESENTATIONS AND WARRANTIES By the Issuer's acceptance hereof the Issuer hereby represents and warrants to, and agrees with, the Purchaser that as of the date hereof and at the Closing Time: (a) The Issuer is a municipal corporation duly organized under the laws of the State of Kansas (the "State"). (b) The Issuer has complied with all provisions of the Constitution and laws of the State and has full power and authority to consummate all transactions contemplated by the Note Resolution and this Note Purchase Agreement, and all other agreements relating thereto. (c) The Issuer has duly authorized by all necessary action to be taken by the Issuer: (1) the adoption and performance of the Note Resolution; (2) the execution, delivery and performance of this Note Purchase Agreement; (3) the execution and performance of any and all such other agreements and documents as may be required to be executed, delivered and performed by the Issuer in order to carry out, give effect to and consummate the transactions contemplated by the Note Resolution and this Note Purchase Agreement; and (4) the carrying out, giving effect to and consummation of the transactions contemplated by the Note Resolution and this Note Purchase Agreement. Executed counterparts of the Note Resolution and all such other agreements and documents specified herein will be made available to the Purchaser by the Issuer at the Closing Time. ( d) The Note Resolution and this Note Purchase Agreement, when executed and delivered by the Issuer, will be the legal, valid and binding obligations of the Issuer enforceable in accordance with their terms, except to the extent that enforcement thereof may be limited by any applicable bankruptcy, reorganization, insolvency, moratorium or other law or laws affecting the enforcement of creditors' rights generally or against entities such as the Issuer and further subject to the availability of equitable remedies. (e) The Notes have been duly authorized by the Issuer, and when issued, delivered and paid for as provided for herein and in the Note Resolution, will have been duly executed, authenticated, issued and delivered and will constitute valid and binding general obligations of the Issuer enforceable in accordance with their terms and entitled to the benefits and security of the Note Resolution (subject to any applicable bankruptcy, reorganization, insolvency, moratorium or other law or laws affecting the enforcement of creditors' rights generally or against entities such as the Issuer and further subject to the availability of equitable remedies). The Notes are general obligations of the Issuer, payable as to both principal and interest, if necessary, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. 3 (f) The execution and delivery of the Note Resolution, this Note Purchase Agreement, the Notes and compliance with the provisions thereof, will not conflict with or constitute on the part of the Issuer a violation or breach of, or a default under, any existing law, regulation, court or administrative decree or order, or any agreement, ordinance, resolution, mortgage, lease or other instrument to which it is subject or by which it is or may be bound. (g) The Issuer is not, or with the giving of notice or lapse of time or both would not be, in violation of or in default under its organizational documents or any indenture, mortgage, deed of trust, loan agreement, notes or other agreement or instrument to which the Issuer is a party or by which it is or may be bound, except for violations and defaults which individually and in the aggregate are not material to the Issuer and will not be material to the beneficial owners of the Notes. As of the Closing Time, no event will have occurred and be continuing which with the lapse of time or the giving of notice, or both, would constitute an event of default under the Note Resolution or the Notes. Any certificate signed by any of the authorized officials of the Issuer and delivered to the Purchaser in connection with the Closing shall be deemed a representation and warranty by the Issuer to the Purchaser as to the statements made therein. SECTION 6. COVENANTS AND AGREEMENTS OF THE ISSUER The Issuer covenants and agrees with the Purchaser for the time period specified, and if no period is specified, for so long as any of the Notes remain Outstanding, as follows: (a) The proceeds of the Notes will be used as provided in the Note Resolution in accordance with the laws of the State. (b) The proceeds of the Notes shall not be used in a manner which would jeopardize the exclusion of interest on the Notes from gross income for federal income tax purposes. SECTION 7. CONDITIONS TO THE PURCHASER'S OBLIGATIONS The Purchaser's obligations hereunder shall be subject to the due performance by the Issuer of the Issuer's obligations and agreements to be performed hereunder at or prior to the Closing Time and to the accuracy of and compliance with the Issuer's representations and warranties contained herein, as of the date hereof and as of the Closing Time, and are also subject to the following conditions: (a) The Note Resolution and the Notes shall have been duly authorized, executed and delivered in the form heretofore approved by the Purchaser with only such changes therein as shall be mutually agreed upon by the Issuer and the Purchaser. (b) At the Closing Time, the Purchaser shall receive: (I) An opinion dated as of the Closing Date of Gilmore & Bell, P.C. ("Bond Counsel"), substantially in the form attached hereto as Exhibit B. (2) A certificate of the Issuer, satisfactory in form and substance to the Purchaser, dated as of the Closing Date, to the effect that: (A) since the date of the financial statements provided to the Purchaser, there has not been any material adverse change in the business, properties, financial condition or results of operations of the Issuer, whether or not arising from transactions in the ordinary course of business, from that set forth in such financial statements, and 4 except in the ordinary course of business or as set forth in such financial statements, the Issuer has not incurred any material liability; (B) there is no action, suit, proceeding or, to the knowledge of the Issuer, any inquiry or investigation at law or in equity or before or by any public board or body pending or, to the knowledge of the Issuer, threatened against or affecting the Issuer, its officers or its property or, to the best of the knowledge of the Issuer, any basis therefor, wherein an unfavorable decision, ruling or finding would adversely affect the Issuer, the transactions contemplated hereby or by the Note Resolution, the validity or enforceability of the Notes or the Note Purchase Agreement, or the levy and collection of ad valorem taxation in amounts necessary to provide for payment of the principal of and interest on the Notes which are not disclosed herein or in such financial statements; (C) the Issuer has duly authorized, by all necessary action, the execution, delivery and due performance by the Issuer of this Note Purchase Agreement; and (D) the representations and warranties of the Issuer set forth in this Note Purchase Agreement were accurate and complete as of the date hereof and are accurate and complete as of the Closing Time. Subsequent to Closing, the Purchaser shall receive a complete Transcript of the Proceedings relating to the issuance of the Notes in CD-ROM format, which shall specifically include each of the forgoing documents. SECTION 8. CONDITIONS TO THE ISSUER'S OBLIGATIONS The obligations of the Issuer hereunder are subject to the Purchaser's performance of its obligations hereunder. SECTION 9. PAYMENT OF EXPENSES (a) Whether or not the Notes are sold by the Issuer to the Purchaser (unless such sale be prevented at the Closing Time by the Purchaser's default), the Purchaser, unless otherwise contracted for, shall be under no obligation to pay any expenses incident to the performance of the obligations of the Issuer hereunder; nor shall the Issuer, unless otherwise contracted for, be under any obligation to pay any expenses incident to the performance of the obligations of the Purchaser hereunder (unless such sale be prevented at the Closing Time by the Issuer's default). (b) If the Notes are sold by the Issuer to the Purchaser, except as hereinafter set forth, all expenses and costs to effect the authorization, preparation, issuance, delivery and sale of the Notes shall be paid by the Issuer out of the proceeds of the Notes or other Issuer funds. Such expenses and costs shall include, but not be limited to: (1) the fees and disbursements of Bond Counsel; (2) the fees and disbursements of the Issuer's legal counsel; (3) the expenses and costs for the preparation, printing, photocopying, execution and delivery of the Notes, this Note Purchase Agreement and all other agreements and documents contemplated hereby; (4) fees of the Note Registrar and Paying Agent designated by the Issuer pursuant to the Note Resolution; and (5) all costs and expenses of the Issuer relating to the issuance of the Notes. SECTION 10. NOTICE Any notice or other communication to be given under this Note Purchase Agreement may be given by mailing or delivering the same in writing to the applicable person, as follows: (a) If to the Issuer at: City of Salina, Kansas, 300 W. Ash Street, Salina, Kansas 67401, Attention: Debbie Pack, Director of Finance and Administration. 5 (b) Ifto the Purchaser at: The Bennington State Bank, 2130 South Ohio Street, Salina, Kansas 67401, Attention: Darren Gragg, Senior Vice President/COO. SECTION 11. MISCELLANEOUS (a) This Note Purchase Agreement shall be binding upon the Purchaser, the Issuer, and their respective successors. This Note Purchase Agreement and the terms and provisions hereof are for the sole benefit of only those persons, except that the representations, warranties, indemnities and agreements of the Issuer contained in this Note Purchase Agreement shall also be deemed to be for the benefit of the person or persons, if any, who control the Purchaser (within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act). Nothing in this Note Purchase Agreement is intended or shall be construed to give any person, other than the persons referred to in this Paragraph, any legal or equitable right, remedy or claim under or in respect of this Note Purchase Agreement or any provision contained herein. All of the representations, warranties and agreements of the Issuer contained herein shall remain in full force and effect, regardless of: (1) any investigation made by or on behalf of the Purchaser, (2) delivery of and payment for the Notes of (3) any termination of this Note Purchase Agreement. (b) For purposes of this Note Purchase Agreement, "business day" means any day on which the New York Stock Exchange is open for trading. ( c) This Note Purchase Agreement shall be governed by and construed in accordance with the laws of the State. (d) This Note Purchase Agreement may be executed in one or more counterparts, and if executed in more than one counterpart, the executed counterparts shall together constitute a single instrument. (e) This Note Purchase Agreement may not be assigned by either party without the express written consent of the other party. SECTION 12. EFFECTIVE DATE This Note Purchase Agreement shall become effective upon acceptance hereof by the Issuer. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 6 Upon your acceptance of the offer, this Note Purchase Agreement will be binding upon the Issuer and the Purchaser. Please acknowledge your agreement with the foregoing by executing the enclosed copy of this Note Purchase Agreement and returning it to the undersigned. Date: 'S·r t::-t/. _. 2018 Time: ~: '2-:;' A .m. Accepted and agreed to as of the date first above written. CITY OF SALINA, KANSAS By: -~~y~_i_-:t{ __ -__ ATTEST: By:~'/)J~ Clerk . : , .. THE BENNINGTON STATE BANK SALINA, KANSAS, as the Purchaser Date: Juljo 9_, 2018 Time: Jd_: -f2-.m. (Signature Page to Note Purchase Agreement) EXHIBIT A $6,000,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION TEMPORARY NOTES SERIES 2018-1 CALCULATION OF PURCHASE PRICE Principal Amount $6,000,000.00 Stated Maturity December 1 2018 MATURITY SCHEDULE Principal Amount $6,000,000 Annual Rate Of Interest 1.990% (Plus accrued interest from July 30, 2018) REDEMPTION OF NOTES Redemption by Issuer. Price 100% Optional Redemption. At the option of the Issuer, the Notes will be subject to redemption and payment prior to maturity at any time, as a whole or in part (selection of the amount of Notes to be redeemed to be determined by the Issuer in such equitable manner as it may determine), at the redemption price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the date of redemption. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] A-1 Governing Body City of Salina, Kansas The Bennington State Bank Salina, Kansas EXHIBITB FORM OF BOND COUNSEL OPINION [July 30, 2018] Re: $6,000,000 General Obligation Temporary Notes, Series 2018-1, of the City of Salina, Kansas, Dated July 30, 2018 We have acted as Bond Counsel in connection with the issuance by the City of Salina, Kansas (the "Issuer"), of the above-captioned notes (the ''Notes"). In this capacity, we have examined the law and the certified proceedings, certifications and other documents that we deem necessary to render this opinion. Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the resolution adopted by the governing body of the Issuer authorizing the issuance and prescribing the details of the Notes. Regarding questions of fact material to our opinion, we have relied on the certified proceedings and other certifications of public officials and others furnished to us without undertaking to verify them by independent investigation. Based upon the foregoing, we are of the opinion, under existing law, as follows: 1. The Notes have been duly authorized, executed and delivered by the Issuer and are valid and legally binding general obligations of the Issuer. 2. The Notes are payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain improvements or from general obligation bonds of the Issuer and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The Issuer is required by law to include in its annual tax levy the principal and interest coming due on the Notes to the extent that necessary funds are not provided from other sources. 3. The interest on the Notes is: (a) excludable from gross income for federal income tax purposes; and (b) not an item of tax preference for purposes of the federal alternative minimum tax. The opinions set forth in this paragraph are subject to the condition that the Issuer complies with all requirements of the Internal Revenue Code of 1986, as amended (the "Code") that must be satisfied subsequent to the issuance of the Notes in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes. The Issuer has covenanted to comply with all of these requirements. Failure to comply with certain of these requirements may cause interest on the Notes to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Notes. The Notes have not been designated as "qualified tax-exempt obligations" for purposes of Code§ 265(b)(3). We express no opinion regarding other federal tax consequences arising with respect to the Notes. B-1 4. The interest on the Notes is exempt from income taxation by the State of Kansas. The rights of the owners of the Notes and the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights generally and by equitable principles, whether considered at law or in equity. This opinion is given as of its date, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may come to our attention or any changes in law that may occur after the date of this opinion. GILMORE & BELL, P.C . . B-2 EXHIBITC PURCHASER'S RECEIPT FOR NOTES AND CLOSING CERTIFICATE $6,000,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION TEMPORARY NOTES SERIES 2018-1 The undersigned, on behalf of The Bennington State Bank (the "Purchaser"), as the purchaser of the above-described notes (the "Notes"), being issued on the date of this Certificate by the City of Salina, Kansas (the "Issuer"), certifies and represents as follows: 1. Receipt for Notes. The Purchaser acknowledges receipt on the date hereof of all of the Notes, consisting of fully registered Notes in authorized denominations in a form acceptable to the Purchaser. 2. Issue Price. (a) Purchase Price. On the date of this Certificate, the Purchaser is purchasing the Notes for the amount of $6,000,000.00. The Purchaser is not a broker-dealer and is not acting as an Underwriter with respect to the Notes. The Purchaser has no present intention to sell, reoffer, or otherwise dispose of the Notes (or any portion of the Notes or any interest in the Notes). The Purchaser has not contracted with any person pursuant to a written agreement to have such person participate in the initial sale of the Notes, and the Purchaser has not agreed with the Issuer pursuant to a written agreement to sell the Notes to persons other than the Purchaser or a Related Party to the Purchaser. (b) Defined Terms. (i) The tenn "Public" means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a Related Party to an Underwriter. (ii) The tenn "Related Party" is defined in U.S. Treasury Regulation § 1.150-l(b) which generally provides that the term related party means any two or more persons who have a greater than 50 percent common ownership, directly or indirectly. (iii) The tenn "Underwriter" means (A) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Notes to the Public, and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) of this paragraph to participate in the initial sale of the Notes to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Notes to the Public). The representations set forth in this certificate are limited to factual matters only. Nothing in this Certificate represents the Purchaser's interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the certifications contained herein will be relied upon by the Issuer in executing and delivering the Federal Tax Certificate and with respect to compliance with the federal income C-1 tax rules affecting the Notes, and by Gilmore & Bell, P.C., Bond Counsel to the Issuer, in rendering its opinion relating to the exclusion from federal gross income of the interest on the Notes and other federal income tax advice that it may give to the Issuer from time to time relating to the Notes. Dated: July 30, 2018 THE BENNINGTON STATE BANK C-2 EXCERPT OF MINUTES OF A MEETING OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS HELD ON JULY 9, 2018 The governing body met in regular session at the usual meeting place in the City, at 4:00 p.m., the following members being present and participating, to-wit: Present: Mayor Karl F. Ryan (Presiding), Commissioners Trent Davis, Joe Hay, Jr., Melissa Rose Hodges, Mike Hoppock The Mayor declared that a quorum was present and called the meeting to order. ************** (Other Proceedings) Thereupon, there was presented a Resolution entitled: A RESOLUTION AUTHORIZING AND DIRECTING THE ISSUANCE, SALE AND DELIVERY OF GENERAL OBLIGATION TE1\1PORARY NOTES, SERIES 2018-1, OF THE CITY OF SALINA, KANSAS; PROVIDING FOR THE LEVY AND COLLECTION OF AN ANNUAL TAX, IF NECESSARY, FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID NOTES AS THEY BECOME DUE; MAKING CERTAIN COVENANTS AND AGREEMENTS TO PROVIDE FOR THE PAYMENT AND SECURITY THEREOF; AND AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS CONNECTED THEREWITH. Thereupon, Commissioner Hay moved that said Resolution be adopted. The motion was seconded by Commissioner Davis said Resolution was duly read and considered, and upon being put, the motion for the adoption of said Resolution was carried by the vote of the governing body, the vote being as follows: Yea: Mayor Karl F. Ryan (Presiding), Commissioners Trent Davis, Joe Hay, Jr., Melissa Rose Hodges. Mike Hoppock Thereupon, the Mayor declared the Resolution duly adopted and the Resolution was then duly numbered Resolution No. 18-7563 and was signed by the Mayor and attested by the Clerk. ************** On motion duly made, seconded and carried, the meeting thereupon adjourned. CERTIFICATE (Signature Page to Excerpt of Minutes-2018-1 Notes) RESOLUTION NO. 18-7563 OF THE CITY OF SALINA, KANSAS ADOPTED JULY9,2018 GENERAL OBLIGATION TEMPORARY NOTES SERIES 2018-1 Section 101. Section 201. Section 202. Section 203. Section 204. Section 205. Section 206. Section 207. Section 208. Section 209. Section 210. Section 211. Section 301. Section 302. Section 303. Section 401. Section 402. Section 501. Section 502. Section 503. Section 504. Section 505. Section 506. Section 507. Section 601. Section 602. Section 603. RESOLUTION TABLE OF CONTENTS ARTICLE I DEFINITIONS Definitions of Words and Terms ............................................................................... 2 ARTICLE Il AUTHORIZATION AND DETAILS OF THE NOTES Authorization of the Notes ........................................................................................ 8 Description of the Notes ............................................................................................ 8 Designation of Paying Agent and Note Registrar ..................................................... 9 Method and Place of Payment of the Notes .............................................................. 9 Payments Due on Saturdays, Sundays and Holidays .............................................. 10 Registration, Transfer and Exchange of Notes ........................................................ 10 Execution, Registration, Authentication and Delivery of Notes ............................. 11 Mutilated, Lost, Stolen or Destroyed Notes ............................................................ 12 Cancellation and Destruction of Notes Upon Payment. .......................................... 12 Nonpresentment of Notes ........................................................................................ 12 Sale of the Notes-Note Purchase Agreement.. ...................................................... 12 ARTICLE ID REDEMPTION OF NOTES Redemption by Issuer .............................................................................................. 13 Selection of Notes to be Redeemed ......................................................................... 13 Notice and Effect of Call for Redemption ............................................................... 13 ARTICLE IV SECURITY FOR NOTES Security for the Notes .............................................................................................. 15 Levy and Collection of Annual Tax ........................................................................ 15 ARTICLE V ESTABLISHMENT OF FUNDS AND ACCOUNTS DEPOSIT AND APPLICATION OF NOTE PROCEEDS Creation of Funds and Accounts ............................................................................. 15 Deposit of Note Proceeds ........................................................................................ 16 Application of Moneys in the Improvement Fund; Redemption of Refunded Notes ........................................................................................................................ 16 Substitution of Improvements; Reallocation of Proceeds ....................................... 16 Application of Moneys in Debt Service Account.. .................................................. 16 Application of Moneys in the Rebate Fund ............................................................. 17 Deposits and Investment of Moneys ....................................................................... 17 ARTICLE VI DEFAULT AND REMEDIES Remedies ................................................................................................................. 17 Limitation on Rights of Owners .............................................................................. 18 Remedies Cumulative .............................................................................................. 18 Section 701. Section 801. Section 802. ARTICLE VII DEFEASANCE Defeasance ............................................................................................................... 18 ARTICLE VIII TAX COVENANTS General Covenants .................................................................................................. 19 Survival of Covenants ............................................................................................. 19 ARTICLE IX NO OFFERING DOCUMENTS; CONTINUING DISCLOSURE Section 901. Section 1001. Section 1002. Section 1003. Section 1004. Section 1005. Section 1006. Section 1007. Section 1008. Section 1009. Disclosure ................................................................................................................ 19 ARTICLE X MISCELLANEOUS PROVISIONS Annual Audit. .......................................................................................................... 20 Amendments ............................................................................................................ 20 Notices, Consents and Other fustruments by Owners ............................................. 21 Notices ..................................................................................................................... 21 Electronic Transactions ........................................................................................... 22 Further Authority ..................................................................................................... 22 Severability .............................................................................................................. 22 Governing Law ........................................................................................................ 22 Effective Date .......................................................................................................... 22 [BALANCE OF PAGE INTENTIONALLY LEFT BLANK] ii RESOLUTION N0.18-7563 A RESOLUTION AUTHORIZING AND DIRECTING THE ISSUANCE, SALE AND DELIVERY OF GENERAL OBLIGATION TEMPORARY NOTES, SERIES 2018-1, OF THE CITY OF SALINA, KANSAS; PROVIDING FOR THE LEVY AND COLLECTION OF AN ANNUAL TAX, IF NECESSARY, FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID NOTES AS THEY BECOME DUE; MAKING CERTAIN COVENANTS AND AGREEMENTS TO PROVIDE FOR THE PAYMENT AND SECURITY THEREOF; AND AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS CONNECTED THEREWITH. WHEREAS, the City of Salina, Kansas (the "Issuer") is a municipal corporation, duly created, organized and existing under the Constitution and laws of the State; and WHEREAS, pursuant to the provisions of the laws of the State of Kansas applicable thereto, by proceedings duly had, the governing body of the Issuer has caused the following improvements (the "Improvements") to be made in the City, to-wit: Project Description Downtown Streetscape Police Training Center Grand Prairie Addition, Phase II River Trail Second Addition ; and Ord/Res. No. Ord. 17-10888 Res. 17-7458 Res. 16-7394; Ord. 18-10932 Res. 16-7365; Ord. 18-10932 Authority K.S.A. 12-631r; K.S.A. 12-685 et seq.; K.S.A. 65-163u K.S.A. 12-1736 et seq. K.S.A. 12-6a01 et seq. K.S.A. 12-6a01 et seq. Financeable Cost $14,650,000.00 4,900,000.00 307,847.08 767,110.15 Estimated Funding Allocation $4,299 ,965 .07 671,239.40 303,031.43 725,764.10 Principal Amount of Notes= $6,000,000.00 WHEREAS, the governing body of the Issuer is authorized by law to issue general obligation bonds to pay a portion of the costs of the Improvements; and WHEREAS, it is necessary for the Issuer to provide cash funds (from time to time) to meet its obligations incurred in constructing the Improvements prior to the completion thereof and the issuance of the Issuer's general obligation bonds, and it is desirable and in the interest of the Issuer that such funds be raised by the issuance of temporary notes of the Issuer pursuant to the Act; and WHEREAS, the Issuer has previously issued the following temporary notes to temporarily finance a portion of the costs of the Improvements (the "Existing Notes"): Series 2017-1 Dated Date July 27, 2017 Maturity Date August 1, 2018 Original Amount $2,180,000 Outstanding Amount $2,180,000 WHEREAS, all aspects of certain of the Improvements will not be completed prior to the maturity date of the Existing Notes, certain of the Improvements are complete but the issuance of general obligation bonds to fund such Improvements is delayed due to the timing of receipt of the City's audited financial statements for the fiscal year ended December 31, 2017, and it is thus necessary for the Issuer to provide cash funds to meet its obligations on a portion of the Existing Notes by the issuance of additional temporary notes of the Issuer pursuant to the Act; and WHEREAS, the Issuer proposes to issue its temporary notes to pay a portion of the costs of the Improvements and to retire a portion of the Existing Notes; and WHEREAS, the governing body of the Issuer hereby finds and determines that it is necessary for the Issuer to authorize the issuance and delivery of the Notes in the principal amount of $6,000,000 to pay a portion of the costs of the Improvements and retire the Existing Notes. NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: ARTICLE I DEFINITIONS Section 101. Definitions of Words and Terms. In addition to words and terms defined elsewhere herein, the following words and terms as used in this Note Resolution shall have the meanings hereinafter set forth. Unless the context shall otherwise indicate, words importing the singular number shall include the plural and vice versa, and words importing persons shall include firms, associations and corporations, including public bodies, as well as natural persons. "Act" means the Constitution and statutes of the State including K.S.A. 10-101 to 10-125, inclusive, specifically including K.S.A. 10-123, K.S.A. 10-620 et seq., K.S.A. 12-631r et seq., K.S.A. 12- 685 et seq., K.S.A. 12-6a01 et seq., K.S.A. 12-1736 et seq. and K.S.A. 65-163u, all as amended and supplemented from time to time. "Authorized Denomination" means $100,000 or an integral multiple of $5,000 in excess thereof. "Beneficial Owner" of the Notes includes any Owner of the Notes and any other Person who, directly or indirectly has the investment power with respect to any of the Notes. "Bond and Interest Fund" means the Bond and Interest Fund of the Issuer for its general obligation bonds. "Bond Counsel" means the firm of Gilmore & Bell, P.C., or any other attorney or firm of attorneys whose expertise in matters relating to the issuance of obligations by states and their political subdivisions is nationally recognized and acceptable to the Issuer. "Business Day" means a day other than a Saturday, Sunday or holiday on which the Paying Agent is scheduled in the normal course of its operations to be open to the public for conduct of its operations. "City" means the City of Salina, Kansas. 2 "Clerk" means the duly appointed and acting Clerk of the Issuer or, in the Clerk's absence, the duly appointed Deputy, Assistant or Acting Clerk of the Issuer. "Code" means the Internal Revenue Code of 1986, as amended, and the applicable regulations proposed or promulgated thereunder of the United States Department of the Treasury. "Costs of Issuance" means all costs of issuing the Notes, including but not limited to all publication, printing, signing and mailing expenses in connection therewith, registration fees, financial advisory fees, all legal fees and expenses of Bond Counsel and other legal counsel, expenses incurred in connection with compliance with the Code, and all expenses incurred in connection with receiving ratings on the Notes. "Dated Date" means July 30, 2018. "Debt Service Account" means the Debt Service Account for General Obligation Temporary Notes, Series 2018-1 (within the Bond and Interest Fund) created pursuant to Section 501 hereof. "Debt Service Requirements" means the aggregate principal payments and interest payments on the Notes for the period of time for which calculated; provided, however, that for purposes of calculating such amount, principal and interest shall be excluded from the detennination of Debt Service Requirements to the extent that such principal or interest is payable from amounts deposited in trust, escrowed or otherwise set aside for the payment thereof with the Paying Agent or other commercial bank or trust company located in the State and having full trust powers. "Defaulted Interest" means interest on any Note which is payable but not paid on any Interest Payment Date. "Defeasance Obligations" means any of the following obligations: (a) United States Government Obligations that are not subject to redemption in advance of their maturity dates; or · (b) obligations of any state or political subdivision of any state, the interest on which is excluded from gross income for federal income tax purposes and which meet the following conditions: (1) the obligations are (i) not subject to redemption prior to maturity or (ii) the trustee for such obligations has been given irrevocable instructions concerning their calling and redemption and the issuer of such obligations has covenanted not to redeem such obligations other than as set forth in such instructions; (2) the obligations are secured by cash or United States Government Obligations that may be applied only to principal of, premium, if any, and interest payments on such obligations; (3) such cash and the principal of and interest on such United States Government Obligations (plus any cash in the escrow fund) are sufficient to meet the liabilities of the obligations; (4) such cash and United States Government Obligations serving as security for the obligations are held in an escrow fund by an escrow agent or a trustee irrevocably in trust; 3 (5) such cash and United States Government Obligations are not available to satisfy any other claims, including those against the trustee or escrow agent; and (6) such obligations are rated in a rating category by Moody's or Standard & Poor's that is no lower than the rating category then assigned by that Rating Agency to United States Government Obligations. "Derivative" means any investment instrument whose market price is derived from the fluctuating value of an underlying asset, index, currency, futures contract, including futures, options and collateralized mortgage obligations. "Director of Finance" means the duly appointed and acting Director of Finance and Administration of the Issuer or, in the Director's absence, the duly appointed Deputy, Assistant or Acting Director of Finance and Administration of the Issuer. "Event of Default" means each of the following occurrences or events: (a) Payment of the principal and of the redemption premium, if any, of any of the Notes shall not be made when the same shall become due and payable, either at Stated Maturity or by proceedings for redemption or otherwise; (b) Payment of any installment of interest on any of the Notes shall not be made when the same shall become due; or ( c) The Issuer shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provisions contained in the Notes or in this Note Resolution on the part of the Issuer to be performed, and such default shall continue for thirty (30) days after written notice specifying such default and requiring same to be remedied shall have been given to the Issuer by the Owner of any of the Notes then Outstanding. "Federal Tax Certificate" means the Issuer's Federal Tax Certificate dated as of the Issue Date, as the same may be amended or supplemented in accordance with the provisions thereof. "Financeable Costs" means the amount of expenditure for an Improvement which has been duly authorized by action of the governing body of the Issuer to be financed by general obligation bonds, less: (a) the amount of any temporary notes or general obligation bonds of the Issuer which are currently Outstanding and available to pay such Financeable Costs; and (b) any amount ofFinanceable Costs which has been previously paid by the Issuer or by any eligible source of funds unless such amounts are entitled to be reimbursed to the Issuer under State or federal law. "Fiscal Year" means the twelve month period ending on December 31. "Funds and Accounts" means funds and accounts created by or referred to in Section 501 hereof. "Improvement Fund" means the Improvement Fund for General Obligation Temporary Notes, Series 2018-1 created pursuant to Section 501 hereof. "Improvements" means the improvements referred to in the preamble to this Note Resolution and any Substitute Improvements. 4 "Independent Accountant" means an independent certified public accountant or firm of independent certified public accountants at the time employed by the Issuer for the purpose of carrying out the duties imposed on the Independent Accountant by this Note Resolution. "Interest Payment Date(s)" means the Maturity of the Note. "Issue Date" means the date when the Issuer delivers the Notes to the Purchaser in exchange for the Purchase Price. "Issuer" means the City and any successors or assigns. "Maturity" when used with respect to any Note means the date on which the principal of such Note becomes due and payable as therein and herein provided, whether at the Stated Maturity thereof or call for redemption or otherwise. "Mayor" means the duly elected and acting Mayor, or in the Mayor's absence, the duly appointed and/or elected Vice Mayor or Acting Mayor of the Issuer. "Moody's" means Moody's Investors Service, a corporation organized and existing under the laws of the State of Delaware, and its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, "Moody's" shall be deemed to refer to any other nationally recognized securities rating agency designated by the Issuer. "Note Payment Date" means any date on which principal of or interest on any Note is payable. "Note Purchase Agreement" means the Note Purchase Agreement dated as of July 9, 2018, between the Issuer and the Purchaser. "Note Register" means the books for the registration, transfer and exchange of Notes kept at the office of the Note Registrar. "Note Registrar" means the State Treasurer and its successors and assigns. "Note Resolution" means this resolution relating to the Notes. "Notes" means the General Obligation Temporary Notes, Series 2018-1, authorized and issued by the Issuer pursuant to this Note Resolution. "Notice Address" means with respect to the following entities: (a) To the Issuer at: City of Salina, Kansas Attn: City Clerk 300WestAsh Salina, Kansas 67402 Fax: (785) 309-5738 5 (b) To the Paying Agent at: State Treasurer of the State of Kansas Landon Office Building 900 Southwest Jackson, Suite 201 Topeka, Kansas 66612-1235 Fax: (785) 296-6976 ( c) To the Purchaser: The Bennington State Bank 2130 South Ohio Street Salina, Kansas 67401 "Notice Representative" means: (a) With respect to the Issuer, the Clerk. (b) With respect to the Note Registrar and Paying Agent, the Director of Bond Services. (c) With respect to the Purchaser, Darren Gragg, Senior Vice President/COO. "Outstanding" means, when used with reference to the Notes, as of a particular date of determination, all Notes theretofore authenticated and delivered, except the following Notes: (a) Notes theretofore canceled by the Paying Agent or delivered to the Paying Agent for cancellation; (b) Notes deemed to be paid in accordance with the provisions of Article VII hereof; and ( c) Notes in exchange for or in lieu of which other Notes have been authenticated and delivered hereunder. "Owner" when used with respect to any Note means the Person in whose name such Note is registered on the Note Register. Whenever consent of the Owners is required pursuant to the terms of this Note Resolution, and the Owner of the Notes, as set forth on the Note Register, is Cede & Co., the term Owner shall be deemed to be the Beneficial Owner of the Notes. "Paying Agent" means the State Treasurer, and any successors and assigns. "Permitted Investments" shall mean the investments hereinafter described, provided, however, no moneys or funds shall be invested in a Derivative: (a) investments authorized by K.S.A. 12-1675 and amendments thereto; (b) the municipal investment pool established pursuant to K.S.A. 12-1677a, and amendments thereto; (c) direct obligations of the United States Government or any agency thereof; (d) the Issuer's temporary notes issued pursuant to K.S.A. 10-123 and amendments thereto; (e) interest-bearing time deposits in commercial banks or trust companies located in the county or counties in which the Issuer is located which are insured by the Federal Deposit Insurance Corporation or collateralized by securities described in (c); (f) obligations of the federal national mortgage association, federal home loan banks, federal home loan mortgage corporation or government national mortgage association; (g) repurchase agreements for securities described in ( c) or (f); (h) investment agreements or other obligations of a financial institution the obligations of which at the time of investment are rated in either of the three highest rating 6 categories by Moody's or Standard & Poor's; (i) investments and shares or units of a money market fund or trust, the portfolio of which is comprised entirely of securities described in (c) or (f); G) receipts evidencing ownership interests in securities or portions thereof described in (c) or (f); (k) municipal bonds or other obligations issued by any municipality of the State as defined inK.S.A. 10-1101 which are general obligations of the municipality issuing the same; or (I) bonds of any municipality of the State as defined in K.S.A. 10-1101 which have been refunded in advance of their maturity and are fully secured as to payment of principal and interest thereon by deposit in trust, under escrow agreement with a bank, of securities described in (c) or (f), all as may be further restricted or modified by amendments to applicable State law. "Person" means any natural person, corporation, partnership,joint venture, association, firm, joint- stock company, trust, unincorporated organization, or government or any agency or political subdivision thereof or other public body. "Purchase Price" means the amount set forth in the Note Purchase Agreement. "Purchaser" means The Bennington State Bank, Salina, Kansas, the original purchaser of the Notes, and any successors and assigns. "Rebate Fund" means the Rebate Fund for General Obligation Temporary Notes, Series 2018-1 created pursuant to Section 501 hereof "Record Dates" for the interest payable on any Interest Payment Date means the fifteenth day (whether or not a Business Day) of the calendar month next preceding such Interest Payment Date. "Redemption Date" when used with respect to any Note to be redeemed means the date fixed for the redemption of such Note pursuant to the terms of this Note Resolution. "Redemption Price" when used with respect to any Note to be redeemed means the price at which such Note is to be redeemed pursuant to the terms of this Note Resolution, including the applicable redemption premium, if any, but excluding installments of interest whose Stated Maturity is on or before the Redemption Date. "Refunded Notes" means the Series 2017-1 Notes maturing on August 1, 2018, in the aggregate principal amount of $2, 180,000. "Refunded Notes Paying Agent" means the paying agent for the Refunded Notes as designated in the Refunded Notes Resolution, and any successor or successors at the time acting as paying agent of the Refunded Notes. "Refunded Notes Resolution" means the resolution which authorized the Refunded Notes. "Series 2017-1 Notes" means the Issuer's General Obligation Temporary Notes, Series 2017-1, dated July 27, 2017. "Special Record Date" means the date fixed by the Paying Agent pursuant to Article II hereof for the payment of Defaulted Interest. "Standard & Poor's" or "S&P" means S&P Global Ratings, a division of S&P Global Inc., a corporation organized and existing under the laws of the State of New York, and its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities 7 rating agency, Standard & Poor's shall be deemed to refer to any other nationally recognized securities rating agency designated by the Issuer. "State" means the state of Kansas. "State Treasurer" means the duly elected Treasurer or, in the Treasurer's absence, the duly appointed Deputy Treasurer or acting Treasurer of the State. "Stated Maturity" when used with respect to any Note or any installment of interest thereon means the date specified in such Note and this Note Resolution as the fixed date on which the principal of such Note or such installment of interest is due and payable. "Substitute Improvements" means the substitute or additional improvements of the Issuer described in Article Vhereof. "Treasurer" means the duly appointed and/or elected Treasurer or, in the Treasurer's absence, the duly appointed Deputy Treasurer or acting Treasurer of the Issuer. "United States Government Obligations" means bonds, notes, certificates of indebtedness, treasury bills or other securities constituting direct obligations of, or obligations the principal of and interest on which are fully and unconditionally guaranteed as to full and timely payment by, the United States of America, including evidences of a direct ownership interest in future interest or principal payment on obligations issued by the United States of America (including the interest component of obligations of the Resolution Funding Corporation), or securities which represent an undivided interest in such obligations, which obligations are rated in the highest rating category by a nationally recognized rating service and such obligations are held in a custodial account for the benefit of the Issuer. ARTICLEil AUTHORIZATION AND DETAILS OF THE NOTES Section 201. Authorization of the Notes. There shall be issued and hereby are authorized and directed to be issued the General Obligation Temporary Notes, Series 2018-1, of the Issuer in the principal amount of $6,000,000, for the purpose of providing funds to: (a) pay a portion of the costs of the Improvements; (b) retire the Refunded Notes; and (c) pay Costs of Issuance. Section 202. Description of the Notes. The Notes shall consist of fully registered notes in Authorized Denominations, and shall be numbered in such manner as the Note Registrar shall determine. All of the Notes shall be dated as of the Dated Date, shall become due in the amounts, on the Stated Maturity, subject to redemption and payment prior to the Stated Maturity as provided in Article III hereof, and shall bear interest at the rates per annum as follows: Stated Maturity December! 2018 Principal Amount $6,000,000 Annual Rate of Interest 1.990% The Notes shall bear interest at the above specified rates (computed on the basis of a 360-day year of twelve 30-day months) from the later of the Dated Date or the most recent Interest Payment Date to which interest has been paid on the Interest Payment Dates in the manner set forth in Article II hereof. 8 Each of the Notes, as originally issued or issued upon transfer, exchange or substitution, shall be printed in accordance with the format required by the Attorney General of the State and shall be substantially in the form attached hereto as EXHIBIT A or as may be required by the Attorney General pursuant to the Notice of Systems of Registration for Kansas Municipal Bonds, 2 Kan. Reg. 921 (1983), in accordance with the Kansas Bond Registration Law, K.S.A. 10-620 et seq. Section 203. Designation of Paying Agent and Note Registrar. The State Treasurer is hereby designated as the Paying Agent for the payment of principal of and interest on the Note and Note Registrar with respect to the registration, transfer and exchange of Notes. The Mayor of the Issuer is hereby authorized and empowered to execute on behalf of the Issuer an agreement with the Note Registrar and Paying Agent for the Notes. The Issuer will at all times maintain a Paying Agent and Note Registrar meeting the qualifications herein described for the performance of the duties hereunder. The Issuer reserves the right to appoint a successor Paying Agent or Note Registrar by (a) filing with the Paying Agent or Note Registrar then performing such function a certified copy of the proceedings giving notice of the termination of such Paying Agent or Note Registrar and appointing a successor, and (b) causing notice of appointment of the successor Paying Agent and Note Registrar to be given by first class mail to each Owner. No resignation or removal of the Paying Agent or Note Registrar shall become effective until a successor has been appointed and has accepted the duties of Paying Agent or Note Registrar. Every Paying Agent or Note Registrar appointed hereunder shall at all times meet the requirements ofK.S.A. 10-501 et seq. and K.S.A. 10-620 et seq., respectively. Section 204. Method and Place of Payment of the Notes. The principal of, or Redemption Price, if any, and interest on the Notes shall be payable in any coin or currency which, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. The principal or Redemption Price of and interest on each Note shall be paid at Maturity to the Person in whose name such Note is registered on the Note Register at the Maturity thereof, upon presentation and surrender of such Note at the principal office of the Paying Agent. Such amounts shall be paid to the Owner of such Note as shown on the Note Register at the close of business on the Record Date for such interest (a) by check or draft mailed by the Paying Agent to the address of such Owner shown on the Note Register or at such other address as is furnished to the Paying Agent in writing by such Owner; or (b) in the case of a payment to any Owner of $500,000 or more in aggregate principal amount of Notes, by electronic transfer to such Owner upon written notice given to the Note Registrar by such Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank, ABA routing number and account number to which such Owner wishes to have such transfer directed. Notwithstanding the foregoing provisions of this Section, any Defaulted Interest with respect to any Note shall cease to be payable to the Owner of such Note on the relevant Record Date and shall be payable to the Owner in whose name such Note is registered at the close of business on the Special Record Date for the payment of such Defaulted Interest, which Special Record Date shall be fixed as hereinafter specified in this paragraph. The Issuer shall notify the Paying Agent in writing of the amount of Defaulted Interest proposed to be paid on each Note and the date of the proposed payment (which date shall be at least 45 days after receipt of such notice by the Paying Agent) and shall deposit with the Paying Agent at the time of such notice an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Paying Agent for such deposit prior to the date of the proposed payment. Following receipt of such funds the Paying Agent shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 9 days prior to the date of the proposed payment. The Paying Agent shall promptly notify the Issuer of such Special Record Date and, in the name and at the expense of the Issuer, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, by first class mail, postage prepaid, to each Owner of a Note entitled to such notice at the address of such Owner as it appears on the Note Register not less than 10 days prior to such Special Record Date. The Paying Agent shall keep a record of payment of principal and Redemption Price of and interest on all Notes and at least annually shall forward a copy or summary of such records to the Issuer. Section 205. Payments Due on Saturdays, Sundays and Holidays. In any case where a Note Payment Date is not a Business Day, then payment of principal, Redemption Price or interest need not be made on such Note Payment Date but may be made on the next succeeding Business Day with the same force and effect as if made on such Note Payment Date, and no interest shall accrue for the period after such Note Payment Date. Section 206. Registration, Transfer and Exchange of Notes. The Issuer covenants that, as long as any of the Notes remain Outstanding, it will cause the Note Register to be kept at the office of the Note Registrar as herein provided. Each Note when issued shall be registered in the name of the Owner thereof on the Note Register. Notes may be transferred and exchanged only on the Note Register as provided in this Section. Upon surrender of any Note at the principal office of the Note Registrar, the Note Registrar shall transfer or exchange such Note for a new Note or Notes in any Authorized Denomination of the same Stated Maturity and in the same aggregate principal amount as the Note that was presented for transfer or exchange. The Notes shall be transferable by the Purchaser or subsequent transferee only upon prior delivery to the Note Registrar and the Issuer an investment letter in substantially the form of Exhibit B hereto, signed by the transferee, stating that (a) the transferee is either (1) an "accredited investor'' as defined in Rule 501 of Regulation D of the Securities and Exchange Commission (the "SEC") or (2) a "qualified institutional buyer" as defined in Rule l 44A under the Securities Act of 1933, as amended, (b) the transferee is purchasing the Notes for its own account for investment and with no present intention of selling or transferring the Notes, ( c) the transferee has been provided with or given access to all financial and other information requested relating to the Notes or which it deems material in connection with the purchase of Notes, ( d) the transferee considers that it has such knowledge and experience in financial and business matters, including the purchase of tax-exempt obligations, as to be independently capable of evaluating the merits and risks of investment in the Notes and to make an informed decision with respect thereto, and (e) the transferee understands that the Notes are subject to all terms and conditions of this Note Resolution. The Notes shall be held by no more than five (5) persons at any time. Notes presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in a form and with guarantee of signature satisfactory to the Note Registrar, duly executed by the Owner thereof or by the Owner's duly authorized agent. In all cases in which the privilege of transferring or exchanging Notes is exercised, the Note Registrar shall authenticate and deliver Notes in accordance with the provisions of this Note Resolution. The Issuer shall pay the fees and expenses of the Note Registrar for the registration, transfer and exchange of Notes provided for by this Note Resolution and the cost of printing a reasonable supply of registered note blanks. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Note Registrar, are the responsibility of the Owners of the Notes. In the event any Owner fails to provide a correct taxpayer identification number to the Paying Agent, the Paying Agent may make a charge against 10 such Owner sufficient to pay any governmental charge required to be paid as a result of such failure. In compliance with Section 3406 of the Code, such amount may be deducted by the Paying Agent from amounts otherwise payable to such Owner hereunder or under the Notes. The Issuer and the Note Registrar shall not be required (a) to register the transfer or exchange of any Note that has been called for redemption after notice of such redemption has been mailed by the Paying Agent pursuant to Article Ill hereof and during the period of 15 days next preceding the date of mailing of such notice of redemption; or (b) to register the transfer or exchange of any Note during a period beginning at the opening of business on the day after receiving written notice from the Issuer of its intent to pay Defaulted Interest and ending at the close of business on the date fixed for the payment of Defaulted Interest pursuant to this Article II. The Issuer and the Paying Agent may deem and treat the Person in whose name any Note is registered on the Note Register as the absolute Owner of such Note, whether such Note is overdue or not, for the purpose of receiving payment of, or on account of, the principal or Redemption Price of and interest on said Note and for all other purposes. All payments so made to any such Owner or upon the Owner's order shall be valid and effective to satisfy and discharge the liability upon such Note to the extent of the sum or sums so paid, and neither the Issuer nor the Paying Agent shall be affected by any notice to the contrary. At reasonable times and under reasonable regulations established by the Note Registrar, the Note Register may be inspected and copied by the Owners (or a designated representative thereof) of 10% or more in principal amount of the Notes then Outstanding or any designated representative of such Owners whose authority is evidenced to the satisfaction of the Note Registrar. Section 207. Execution, Registration, Authentication and Delivery of Notes. Each of the Notes, including any Notes issued in exchange or as substitutions for the Notes initially delivered, shall be executed for and on behalf of the Issuer by the manual or facsimile signature of the Mayor, attested by the manual or facsimile signature of the Clerk and the seal of the Issuer shall be affixed thereto or imprinted thereon. The Mayor and Clerk are hereby authorized and directed to prepare and execute the Notes in the manner herein specified, and to cause the Notes to be registered in the office of the Clerk, which registration shall be evidenced by the· manual or facsimile signature of the Clerk with the seal of the Issuer affixed thereto or imprinted thereon. The Notes shall also be registered in the office of the State Treasurer, which registration shall be evidenced by the manual or facsimile signature of the State Treasurer with the seal of the State Treasurer affixed thereto or imprinted thereon. The Notes shall be countersigned by the manual or facsimile signature of the Clerk and the seal of the Issuer shall be affixed or imprinted adjacent thereto following registration of the Notes by the Treasurer of the State of Kansas. In case any officer whose signature appears on any Notes ceases to be such officer before the delivery of such Notes, such signature shall nevertheless be valid and sufficient for all purposes, as if such person had remained in office until delivery. Any Note may be signed by such persons who at the actual time of the execution of such Note are the proper officers to sign such Note although at the date of such Note such persons may not have been such officers. The Mayor and Clerk are hereby authorized and directed to prepare and execute the Notes as herein specified, and when duly executed, to deliver the Notes to the Note Registrar for authentication. The Notes shall have endorsed thereon a certificate of authentication substantially in the form attached hereto as EXHIBIT A hereof, which shall be manually executed by an authorized officer or employee of the Note Registrar, but it shall not be necessary that the same officer or employee sign the certificate of authentication on all of the Notes that may be issued hereunder at any one time. No Note shall be entitled to any security or benefit under this Note Resolution or be valid or obligatory for any purpose 11 unless and until such certificate of authentication has been duly executed by the Note Registrar. Such executed certificate of authentication upon any Note shall be conclusive evidence that such Note has been duly authenticated and delivered under this Note Resolution. Upon authentication, the Note Registrar shall deliver the Notes to the Purchaser upon instructions of the Issuer or its representative. Section 208. Mutilated, Lost, Stolen or Destroyed Notes. If (a) any mutilated Note is surrendered to the Note Registrar or the Note Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Note, and (b) there is delivered to the Issuer and the Note Registrar such security or indemnity as may be required by each of them, then, in the absence of notice to the Issuer or the Note Registrar that such Note has been acquired by a bona fide purchaser, the Issuer shall execute and, upon the Issuer's request, the Note Registrar shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Note, a new Note of the same Stated Maturity and of like tenor and principal amount. If any such mutilated, destroyed, lost or stolen Note has become or is about to become due and payable, the Issuer, in its discretion, may pay such Note instead of issuing a new Note. Upon the issuance of any new Note under this Section, the Issuer may require the payment by the Owner of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Paying Agent) connected therewith. Every new Note issued pursuant to this Section shall constitute a replacement of the prior obligation of the Issuer, and shall be entitled to all the benefits of this Note Resolution equally and ratably with all other Outstanding Notes. Section 209. Cancellation and Destruction of Notes Upon Payment. All Notes that have been paid or redeemed or that otherwise have been surrendered to the Paying Agent, either at or before Maturity, shall be cancelled by the Paying Agent immediately upon the payment, redemption and surrender thereof to the Paying Agent and subsequently destroyed in accordance with the customary practices of the Paying Agent. The Paying Agent shall execute a certificate in duplicate describing the Notes so cancelled and destroyed and shall file an executed counterpart of such certificate with the Issuer. Section 210. Nonpresentment of Notes. If any Note is not presented for payment when the principal thereof becomes due at Maturity, if funds sufficient to pay such Note have been made available to the Paying Agent all liability of the Issuer to the Owner thereof for the payment of such Note shall forthwith cease, determine and be completely discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for interest thereon, for the benefit of the Owner of such Note, who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under this Note Resolution or on, or with respect to, said Note. If any Note is not presented for payment within four ( 4) years following the date when such Note becomes due at Maturity, the Paying Agent shall repay, without liability for interest thereon, to the Issuer the funds theretofore held by it for payment of such Note, and such Note shall, subject to the defense of any applicable statute of limitation, thereafter be an unsecured obligation of the Issuer, and the Owner thereof shall be entitled to look only to the Issuer for payment, and then only to the extent of the amount so repaid to it by the Paying Agent, and the Issuer shall not be liable for any interest thereon and shall not be regarded as a trustee of such money. Section 211. Sale of the Notes -Note Purchase Agreement. The execution of the Note Purchase Agreement by the Mayor is hereby ratified and confirmed. Pursuant to the Note Purchase Agreement, the Issuer agrees to sell the Notes to the Purchaser for the Purchase Price, upon the terms and conditions set forth therein. 12 ARTICLE ID REDEMPTION OF NOTES Section 301. Redemption by Issuer. Optional Redemption. At the option of the Issuer, the Notes will be subject to redemption and payment prior to maturity, at any time, as a whole or in part (selection of the amount of Notes to be redeemed to be determined by the Issuer in such equitable manner as it may determine), at the redemption price of 100% (expressed as a percentage of the principal amount), plus accrued interest thereon to the Redemption Date. Section 302. Selection of Notes to be Redeemed. Notes shall be redeemed only in an Authorized Denomination. When less than all of the Notes are to be redeemed and paid prior to their Stated Maturity, such Notes shall be redeemed in such manner as the Issuer shall determine. Notes of less than a full Stated Maturity shall be selected by the Note Registrar in a minimum Authorized Denomination of principal amount in such equitable manner as the Note Registrar may determine. In the case of a partial redemption of Notes by lot when Notes of denominations greater than a minimum Authorized Denomination are then Outstanding, then for all purposes in connection with such redemption each minimum Authorized Denomination of face value shall be treated as though it were a separate Note of the denomination of a minimum Authorized Denomination. If it is determined that one or more, but not all, of a minimum Authorized Denomination of face value represented by any Note is selected for redemption, then upon notice of intention to redeem a minimum Authorized Denomination, the Owner or the Owner's duly authorized agent shall forthwith present and surrender such Note to the Note Registrar: (I) for payment of the Redemption Price and interest to the Redemption Date of a minimum Authorized Denomination of face value called for redemption, and (2) for exchange, without charge to the Owner thereof, for a new Note or Notes of the aggregate principal amount of the unredeemed portion of the principal amount of such Note. If the Owner of any such Note fails to present such Note to the Paying Agent for payment and exchange as aforesaid, such Note shall, nevertheless, become due and payable on the redemption date to the extent of a minimum Authorized Denomination of face value called for redemption (and to that extent only). Section 303. Notice and Effect of Call for Redemption. In the event the Issuer desires to call the Notes for redemption prior to maturity, written notice of such intent shall be provided to the Note Registrar in accordance with K.S.A. 10-129, as amended, not less than 45 days prior to the Redemption Date. The Note Registrar shall call Notes for redemption and payment and shall give notice of such redemption as herein provided upon receipt by the Note Registrar at least 45 days prior to the Redemption Date of written instructions of the Issuer specifying the principal amount, Stated Maturities, Redemption Date and Redemption Prices of the Notes to be called for redemption. The Paying Agent may in its discretion waive such notice period so long as the notice requirements set forth in this Section are met. Unless waived by any Owner of Notes to be redeemed, if the Issuer shall call any Notes for redemption and payment prior to the Stated Maturity thereof, the Issuer shall give written notice of its intention to call and pay said Notes to the Note Registrar, the State Treasurer and the Purchaser. In addition, the Issuer shall cause the Note Registrar to give written notice of redemption to the Owners of said Notes. Each of said written notices shall be deposited in the United States first class mail not less than 30 days prior to the Redemption Date. All official notices of redemption shall be dated and shall contain the following information: 13 (a) the Redemption Date; (b) the Redemption Price; ( c) if less than all Outstanding Notes are to be redeemed, the identification (and, in the case of partial redemption of any Notes, the respective principal amounts) of the Notes to be redeemed; ( d) a statement that on the Redemption Date the Redemption Price will become due and payable upon each such Note or portion thereof called for redemption and that interest thereon shall cease to accrue from and after the Redemption Date; and ( e) the place where such Notes are to be surrendered for payment of the Redemption Price, which shall be the principal office of the Paying Agent. The failure of any Owner to receive notice given as heretofore provided or an immaterial defect therein shall not invalidate any redemption. Prior to any Redemption Date, the Issuer shall deposit with the Paying Agent an amount of money sufficient to pay the Redemption Price of all the Notes or portions of Notes that are to be redeemed on such Redemption Date. Official notice ofredemption having been given as aforesaid, the Notes or portions of Notes to be redeemed shall become due and payable on the Redemption Date, at the Redemption Price therein specified, and from and after the Redemption Date (unless the Issuer defaults in the payment of the Redemption Price) such Notes or portion of Notes shall cease to bear interest. Upon surrender of such Notes for redemption in accordance with such notice, the Redemption Price of such Notes shall be paid by the Paying Agent. Installments of interest due on or prior to the Redemption Date shall be payable as herein provided for payment of interest. Upon surrender for any partial redemption of any Note, there shall be prepared for the Owner a new Note or Notes of the same Stated Maturity in the amount of the unpaid principal as provided herein. All Notes that have been surrendered for redemption shall be cancelled and destroyed by the Paying Agent as provided herein and shall not be reissued. In addition to the foregoing notice, further notice may be given by the Issuer or the Note Registrar on behalf of the Issuer as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if official notice thereof is given as above prescribed: (a) Each further notice of redemption given hereunder shall contain the information required above for an official notice of redemption plus (1) the date of issue of the Notes as originally issued; (2) the rate of interest borne by each Note being redeemed; (3) the maturity date of each Note being redeemed; and (4) any other descriptive information needed to identify accurately the Notes being redeemed. (b) Each further notice of redemption shall be sent at least one day before the mailing of notice to Owners by first class, registered or certified mail or overnight delivery, as determined by the Note Registrar, to all registered securities depositories then in the business of holding substantial amounts of obligations of types comprising the Notes and to one or more national information services that disseminate notices of redemption of obligations such as the Notes. The Paying Agent is also directed to comply with any mandatory standards then in effect for processing redemptions of municipal securities established by the State or the Securities and Exchange 14 Commission. Failure to comply with such standards shall not affect or invalidate the redemption of any Note. ARTICLE IV SECURITY FOR NOTES Section 401. Security for the Notes. The Notes shall be general obligations of the Issuer payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of the Improvements or from general obligation bonds of the Issuer, and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Notes as the same become due. Section 402. Levy and Collection of Annual Tax. The governing body of the Issuer shall annually make provision for the payment of principal of, premium, if any, and interest on the Notes as the same become due, if necessary, by levying and collecting the necessary taxes and/or assessments upon all of the taxable tangible property within the Issuer in the manner provided by law. The taxes and/or assessments referred to above shall be extended upon the tax rolls and shall be levied and collected at the same time and in the same manner as the other ad valorem taxes of the Issuer are levied and collected. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund, shall be kept separate and apart from all other funds of the Issuer shall thereafter be deposited in the Debt Service Account and shall be used solely for the payment of the principal of and interest on the Notes as and when the same become due, and the fees and expenses of the Paying Agent. If at any time said taxes and/or assessments are not collected in time to pay the principal of or interest on the Notes when due, the Treasurer is hereby authorized and directed to pay said principal or interest out of the general funds of the Issuer and to reimburse said general funds for money so expended when said taxes are collected. ARTICLEV ESTABLISHMENT OF FUNDS AND ACCOUNTS DEPOSIT AND APPLICATION OF NOTE PROCEEDS Section 501. Creation of Funds and Accounts. Simultaneously with the issuance of the Notes, there shall be created within the Treasury of the Issuer the following funds and accounts: (a) Improvement Fund for General Obligation Temporary Notes, Series 2018-1; (b) Debt Service Account for General Obligation Temporary Notes, Series 2018-1; and (c) Rebate Fund for General Obligation Temporary Notes, Series 2018-1. The Funds and Accounts established herein shall be administered in accordance with the provisions of this Note Resolution so long as the Notes are Outstanding. 15 Section 502. Deposit of Note Proceeds. The net proceeds received from the sale of the Notes shall be deposited simultaneously with the delivery of the Notes as follows: (a) All accrued interest received from the sale of the Notes shall be deposited in the Debt Service Account. (b) The remaining balance of the proceeds derived from the sale of the Notes shall be deposited in the Improvement Fund. Section 503. Application of Moneys in the Improvement Fund; Redemption of Refunded Notes. Moneys in the Improvement Fund shall be used for the sole purpose of: (a) paying the costs of the Improvements, in accordance with the plans and specifications therefor approved by the governing body of the Issuer and on file in the office of the Clerk, including any alterations in or amendments to said plans and specifications deemed advisable and approved by the governing body of the Issuer; (b) paying Costs oflssuance; (c) retiring the Refunded Notes; and (d) transferring any amounts to the Rebate Fund required by this Article V. Upon completion of the Improvements, any surplus remaining in the Improvement Fund shall be deposited in the Debt Service Account. Section 504. Substitution of Improvements; Reallocation of Proceeds. (a) The Issuer may elect for any reason to substitute or add other public improvements to be financed with proceeds of the Notes provided the following conditions are met: (1) the Substitute Improvement and the issuance of general obligation bonds to pay the cost of the Substitute Improvement has been duly authorized by the governing body of the Issuer in accordance with the laws of the State; (2) a resolution or ordinance authorizing the use of the proceeds of the Notes to pay the Financeable Costs of the Substitute Improvement has been duly adopted by the governing body of the Issuer pursuant to this Section, (3) the Attorney General of the State has approved the amendment made by such resolution or ordinance to the transcript of proceedings for the Notes to include the Substitute Improvements; and ( 4) the use of the proceeds of the Notes to pay the Financeable Cost of the· Substitute Improvement will not adversely affect the tax-exempt status of the Notes under State or federal law. (b) The Issuer may reallocate expenditure of Note proceeds among all Improvements financed by the Notes; provided the following conditions are met: (1) the reallocation shall not cause the proceeds of the Notes allocated to any Improvement to exceed the Financeable Costs of the Improvement; and (2) the reallocation will not adversely affect the tax-exempt status of the Notes under State or federal law. Section 505. Application of Moneys in Debt Service Account. All amounts paid and credited to the Debt Service Account shall be expended and used by the Issuer for the sole purpose of paying the principal or Redemption Price of and interest on the Notes as and when the same become due and the usual and customary fees and expenses of the Note Registrar and Paying Agent. The Treasurer is authorized and directed to withdraw from the Debt Service Account sums sufficient to pay both principal or Redemption Price of and interest on the Notes and the fees and expenses of the Note Registrar and Paying Agent as and when the same become due, and to forward such sums to the Paying Agent, if other than the Issuer, in a manner which ensures that the Paying Agent will receive immediately available funds in such amounts on or before the Business Day immediately preceding the dates when such principal, interest and fees of the Note Registrar and Paying Agent will become due. If, through the lapse of time or otherwise, the Owners of Notes are no longer entitled to enforce payment of the Notes or the interest thereon, the Paying Agent shall return said funds to the Issuer. All moneys deposited with the Paying Agent shall be deemed to be deposited in accordance with and subject to all of the provisions contained in this Note Resolution and shall be held in trust by the Paying Agent for the benefit of the Owners of the Notes entitled to payment from such moneys. 16 Any moneys or investments remaining in the Debt Service Account after the retirement of the indebtedness for which the Notes were issued shall be transferred and paid into the Bond and Interest Fund. Section 506. Application of Moneys in the Rebate Fund. (a) There shall be deposited in the Rebate Fund such amounts as are required to be deposited therein pursuant to the Federal Tax Certificate. All money at any time deposited in the Rebate Fund shall be held in trust, to the extent required to satisfy the Rebate Amount (as defined in the Federal Tax Certificate), for payment to the United States of America, and neither the Issuer nor the Owner of any Notes shall have any rights in or claim to such money. All amounts deposited into or on deposit in the Rebate Fund shall be governed by this Section and the Federal Tax Certificate. (b) The Issuer shall periodically determine the arbitrage rebate, if any, under Code § 148( f) of the Code in accordance with the Federal Tax Certificate, and the Issuer shall make payments to the United States of America at the times and in the amounts determined under the Federal Tax Certificate. Any moneys remaining in the Rebate Fund after redemption and payment of all of the Notes and payment and satisfaction of any Rebate Amount, or provision made therefor, shall be deposited into the Bond and Interest Fund. ( c) Notwithstanding any other provision of this Note Resolution, including in particular Article VII hereof, the obligation to pay arbitrage rebate to the United States of America and to comply with all other requirements of this Section and the Federal Tax Certificate shall survive the defeasance or payment in full of the Notes. Section 507. Deposits and Investment of Moneys. Moneys in each of the Funds and Accounts shall be deposited in accordance with laws of the State, in a bank, savings and loan association or savings bank organized under the laws of the State, any other state or the United States: (a) which has a main or branch office located in the Issuer; or (b) if no such entity has a main or branch office located in the Issuer, with such an entity that has a main or branch office located in the county or counties in which the Issuer is located. All such depositaries shall be members of the Federal Deposit Insurance Corporation, or otherwise as permitted by State law. All such deposits shall be invested in Permitted Investments as set forth in this Article or shall be adequately secured as provided by the laws of the State. All moneys held in the Funds and Accounts shall be kept separate and apart from all other funds of the Issuer so that there shall be no commingling with any other funds of the Issuer. Moneys held in any Fund or Account may be invested in accordance with this Note Resolution and the Federal Tax Certificate in Permitted Investments; provided, however, that no such investment shall be made for a period extending longer than to the date when the moneys invested may be needed for the purpose for which such fund was created. All earnings on any investments held in any Fund or Account shall accrue to and become a part of such Fund or Account; provided that, during the period of construction of the Improvements, earnings on the investment of such funds may be credited to the Debt Service Account. ARTICLE VI DEFAULT AND REMEDIES Section 601. Remedies. The provisions of the Note Resolution, including the covenants and agreements herein contained, shall constitute a contract between the Issuer and the Owners of the Notes. If an Event of Default occurs and shall be continuing, the Owner or Owners of not less than 10% in principal 17 amount of the Notes at the time Outstanding shall have the right for the equal benefit and protection of all Owners of Notes similarly situated: (a) by mandamus or other suit, action or proceedings at law or in equity to enforce the rights of such Owner or Owners against the Issuer and its officers, agents and employees, and to require and compel duties and obligations required by the provisions of the Note Resolution or by the Constitution and laws of the State; (b) by suit, action or other proceedings in equity or at law to require the Issuer, its officers, agents and employees to account as if they were the trustees of an express trust; and (c) by suit, action or other proceedings in equity or at law to enjoin any acts or things which may be unlawful or in violation of the rights of the Owners of the Notes. Section 602. Limitation on Rights of Owners. The covenants and agreements of the Issuer contained herein and in the Notes shall be for the equal benefit, protection, and security of the Owners of any or all of the Notes, all of which Notes shall be of equal rank and without preference or priority of one Note over any other Note in the application of the funds herein pledged to the payment of the principal of and the interest on the Notes, or otherwise, except as to rate of interest, date of maturity and right of prior redemption as provided in this Note Resolution. No one or more Owners secured hereby shall have any right in any manner whatever by his or their action to affect, disturb or prejudice the security granted and provided for herein, or to enforce any right hereunder, except in the manner herein provided, and all proceedings at law or in equity shall be instituted, had and maintained for the equal benefit of all Outstanding Notes. Section 603. Remedies Cumulative. No remedy conferred herein upon the Owners is intended to be exclusive of any other remedy, but each such remedy shall be cumulative and in addition to every other remedy and may be exercised without exhausting and without regard to any other remedy conferred herein. No waiver of any default or breach of duty or contract by the Owner of any Note shall extend to or affect any subsequent default or breach of duty or contract or shall impair any rights or remedies thereon. No delay or omission of any Owner to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein. Every substantive right and every remedy conferred upon the Owners of the Notes by this Note Resolution may be enforced and exercised from time to time and as often as may be deemed expedient. If action or proceedings taken by any Owner on account of any default or to enforce any right or exercise any remedy has been discontinued or abandoned for any reason, or shall have been determined adversely to such Owner, then, and in every such case, the Issuer and the Owners of the Notes shall be restored to their former positions and rights hereunder, respectively, and all rights, remedies, powers and duties of the Owners shall continue as if no such suit, action or other proceedings had been brought or taken. ARTICLE VII DEFEASANCE Section 701. Defeasance. When any or all of the Notes, redemption premium, if any, or scheduled interest payments thereon have been paid and discharged, then the requirements contained in this Note Resolution and the pledge of the Issuer's faith and credit hereunder and all other rights granted hereby shall terminate with respect to the Notes or scheduled interest payments thereon so paid and discharged. Notes, redemption premium, if any, or scheduled interest payments thereon shall be deemed to have been paid and discharged within the meaning of this Note Resolution ifthere has been deposited with the Paying 18 Agent, or other commercial bank or trust company located in the State and having full trust powers, at or prior to the Stated Maturity or Redemption Date of said Notes or the interest payments thereon, in trust for and irrevocably appropriated thereto, moneys and/or Defeasance Obligations which, together with the interest to be earned on any such Defeasance Obligations, will be sufficient for the payment of the principal of or Redemption Price of said Notes and/or interest accrued to the Stated Maturity or Redemption Date, or if default in such payment has occurred on such date, then to the date of the tender of such payments. If the amount to be so deposited is based on the Redemption Price of any Notes, no such satisfaction shall occur until (a) the Issuer has elected to redeem such Notes, and (b) either notice of such redemption has been given, or the Issuer has given irrevocable instructions, or shall have provided for an escrow agent to give irrevocable instructions, to the Note Registrar to give such notice of redemption in compliance with Article III. Any money and Defeasance Obligations that at any time shall be deposited with the Paying Agent or other commercial bank or trust company by or on behalf of the Issuer, for the purpose of paying and discharging any of the Notes, shall be and are hereby assigned, transferred and set over to the Paying Agent or other bank or trust company in trust for the respective Owners of the Notes, and such moneys shall be and are hereby irrevocably appropriated to the payment and discharge thereof. All money and Defeasance Obligations deposited with the Paying Agent or such bank or trust company shall be deemed to be deposited in accordance with and subject to all of the provisions of this Note Resolution. ARTICLE VIII TAX COVENANTS Section 801. General Covenants. The Issuer covenants and agrees that: it will comply with (a) all applicable provisions of the Code necessary to maintain the exclusion from gross income for federal income tax purposes of the interest on the Notes; and (b) all provisions and requirements of the Federal Tax Certificate. The Mayor, Finance Director and Clerk are hereby authorized and directed to execute the Federal Tax Certificate in a form approved by Bond Counsel, for and on behalf of and as the act and deed of the Issuer. The Issuer will, in addition, adopt such other ordinances or resolutions and take such other actions as may be necessary to comply with the Code and with all other applicable future laws, regulations, published rulings and judicial decisions, in order to ensure that the interest on the Notes will remain excluded from federal gross income, to the extent any such actions can be taken by the Issuer. Section 802. Survival of Covenants. The covenants contained in this Article and in the Federal Tax Certificate shall remain in full force and effect notwithstanding the defeasance of the Notes pursuant to Article VII hereof or any other provision of this Note Resolution until such time as is set forth in the Federal Tax Certificate. ARTICLE IX NO OFFERING DOCUMENTS; CONTINUING DISCLOSURE Section 901. Disclosure. The Issuer has not prepared an official statement or other offering document relating to the Notes and is relying on exemption to provide and disseminate such information contained in Section (d)(l) of the SEC Rule. In furtherance of such exemption, the Issuer certifies that: (a) the Purchaser has certified that the Notes are being issued in denominations of $100,000 or more; and (b) the Notes are being sold to no more than thirty-five persons, each of whom the Purchaser reasonably believes: (1) has the knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the prospective investment and (2) is not purchasing for more than one account or with a view to distributing the Notes. 19 ARTICLEX MISCELLANEOUS PROVISIONS Section 1001. Annual Audit. Annually, promptly after the end of the Fiscal Year, the Issuer will cause an audit to be made of the financial statements of the Issuer for the preceding Fiscal Year by an Independent Accountant. Within 30 days after the completion of each such audit, a copy thereof shall be filed in the office of the Clerk, and a duplicate copy of the audit shall be mailed to the Purchaser. Such audit shall at all times during the usual business hours be open to the examination and inspection by any taxpayer, any Owner of any of the Notes, or by anyone acting for or on behalf of such taxpayer or Owner. Upon payment of the reasonable cost of preparing and mailing the same, a copy of any annual audit will, upon request, be sent to any Owner or prospective Owner. As soon as possible after the completion of the annual audit, the governing body of the Issuer shall review such audit, and if the audit discloses that proper provision has not been made for all of the requirements of this Note Resolution, the Issuer shall promptly cure such deficiency. Section 1002. Amendments. The rights and duties of the Issuer and the Owners, and the terms and provisions of the Notes or of this Note Resolution, may be amended or modified at any time in any respect by resolution or ordinance of the Issuer with the written consent of the Owners of not less than a majority in principal amount of the Notes then Outstanding, such consent to be evidenced by an instrument or instruments executed by such Owners and duly acknowledged or proved in the manner of a deed to be recorded, and such instrument or instruments shall be filed with the Clerk, but no such modification or alteration shall: (a) extend the maturity of any payment of principal or interest due upon any Note; (b) effect a reduction in the amount which the Issuer is required to pay as principal of or interest on any Note; ( c) permit preference or priority of any Note over any other Note; or ( d) reduce the percentage in principal amount of Notes required for the written consent to any modification or alteration of the provisions of this Note Resolution. Any provision of the Notes or of this Note Resolution may, however, be amended or modified by resolution or ordinance duly adopted by the governing body of the Issuer at any time in any legal respect with the written consent of the Owners of all of the Notes at the time Outstanding. Without notice to or the consent of any Owners, the Issuer may amend or supplement this Note Resolution for the purpose of curing any formal defect, omission, inconsistency or ambiguity herein, to grant to or confer upon the Owners any additional rights, remedies, powers or authority that may lawfully be granted to or conferred upon the Owners, to more precisely identify the Improvements, to reallocate proceeds of the Notes among Improvements, to provide for Substitute Improvements, to conform this Note Resolution to the Code or future applicable federal law concerning tax-exempt obligations, or in connection with any other change therein which is not materially adverse to the interests of the Owners. Every amendment or modification of the provisions of the Notes or of this Note Resolution, to which the written consent of the Owners is given, as above provided, shall be expressed in a resolution or ordinance adopted by the governing body of the Issuer amending or supplementing the provisions of this 20 Note Resolution and shall be deemed to be a part of this Note Resolution. A certified copy of every such amendatory or supplemental resolution or ordinance, if any, and a certified copy of this Note Resolution shall always be kept on file in the office of the Clerk, and shall be made available for inspection by the Owner of any Note or a prospective purchaser or owner of any Note authorized by this Note Resolution, and upon payment of the reasonable cost of preparing the same, a certified copy of any such amendatory or supplemental resolution or ordinance or of this Note Resolution will be sent by the Clerk to any such Owner or prospective Owner. Any and all modifications made in the manner hereinabove provided shall not become effective until there has been filed with the Clerk a copy of the resolution of the Issuer hereinabove provided for, duly certified, as well as proof of any required consent to such modification by the Owners of the Notes then Outstanding. It shall not be necessary to note on any of the Outstanding Notes any reference to such amendment or modification. The Issuer shall furnish to the Paying Agent a copy of any amendment to the Notes or this Note Resolution which affects the duties or obligations of the Paying Agent under this Note Resolution. Section 1003. Notices, Consents and Other Instruments by Owners. Any notice, consent, request, direction, approval or other instrument to be signed and executed by the Owners may be in any number of concurrent writings of similar tenor and may be signed or executed by such Owners in person or by agent appointed in writing. Proof of the execution of any such instrument or of the writing appointing any such agent and of the ownership of Notes, if made in the following manner, shall be sufficient for any of the purposes of this Note Resolution, and shall be conclusive in favor of the Issuer and the Paying Agent with regard to any action taken, suffered or omitted under any such instrument, namely: (a) The fact and date of the execution by any person of any such instrument may be proved by a certificate of any officer in any jurisdiction who by law has power to take acknowledgments within such jurisdiction that the person signing such instrument acknow !edged before such officer the execution thereof, or by affidavit of any witness to such execution. (b) The fact of ownership of Notes, the amount or amounts, numbers and other identification of Notes, and the date of holding the same shall be proved by the Note Register. In determining whether the Owners of the requisite principal amount of Notes Outstanding have given any request, demand, authorization, direction, notice, consent or waiver under this Note Resolution, Notes owned by the Issuer shall be disregarded and deemed not to be Outstanding under this Note Resolution, except that, in determining whether the Owners shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Notes which the Owners know to be so owned shall be so disregarded. Notwithstanding the foregoing, Notes so owned which have been pledged in good faith shall not be disregarded as aforesaid if the pledgee establishes to the satisfaction of the Owners the pledgee's right so to act with respect to such Notes and that the pledgee is not the Issuer. Section 1004. Notices. Any notice, request, complaint, demand or other communication required or desired to be given or filed under this Note Resolution shall be in writing, given to the Notice Representative at the Notice Address and shall be deemed duly given or filed if the same shall be: (a) duly mailed by registered or certified mail, postage prepaid; or (b) communicated via fax, with electronic or telephonic confirmation of receipt. Copies of such notices shall also be given to the Paying Agent. The Issuer, the Paying Agent and the Purchaser may from time to time designate, by notice given hereunder to the others of such parties, such other address to which subsequent notices, certificates or other communications shall be sent. 21 All notices given by: (a) certified or registered mail as aforesaid shall be deemed duly given as of the date they are so mailed; (b) fax as aforesaid shall be deemed duly given as of the date of confirmation of receipt. If, because of the temporary or permanent suspension of regular mail service or for any other reason, it is impossible or impractical to mail any notice in the manner herein provided, then such other form of notice as shall be made with the approval of the Paying Agent shall constitute a sufficient notice. Section 1005. Electronic Transactions. The issuance of the Notes and the transactions related thereto and described herein may be conducted and documents may be stored by electronic means. Section 1006. Further Authority. The officers and officials of the Issuer, including the Mayor and Clerk, are hereby authorized and directed to execute all documents and take such actions as they may deem necessary or advisable in order to carry out and perform the purposes of this Note Resolution and to make ministerial alterations, changes or additions in the foregoing agreements, statements, instruments and other documents herein approved, authorized and confirmed which they may approve, and the execution or taking of such action shall be conclusive evidence of such necessity or advisability. Section 1007. Severability. If any section or other part of this Note Resolution, whether large or small, is for any reason held invalid, the invalidity thereof shall not affect the validity of the other provisions of this Note Resolution. Section 1008. Governing Law. This Note Resolution shall be governed exclusively by and construed in accordance with the applicable laws of the State. Section 1009. Effective Date. This Note Resolution shall take effect and be in full force from and after its passage by the governing body of the Issuer. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 22 the governing body of the Issuer on July 9, 2018. Mayor Clerk (Signature Page to Resolution-2018-1 Notes) REGISTERED NUMBER EXHIBIT A (FORM OF NOTES) REGISTERED $6,000,000 THIS NOTE OR ANY PORTION HEREOF MAY BE TRANSFERRED ONLY (1) TO AN "ACCREDITED INVESTOR" AS DEFINED IN RULE 501 OF REGULATION D OF THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION AND (2) IN ACCORDANCE WITH THE TRANSFER RESTRICTIONS SET FORTH IN THE NOTE RESOLUTION. Interest Rate: 1.990% OWNER: UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA GENERAL OBLIGATION TEMPORARY NOTE SERIES 2018-1 Maturity Dated Date: December 1, 2018 Date: July 30, 2018 PRINCIPAL AMOUNT: KNOW ALL PERSONS BY THESE PRESENTS: That the City of Salina, in the County of Saline, State of Kansas (the "Issuer"), for value received, hereby acknowledges itself to be indebted and promises to pay to the Owner shown above, or registered assigns, but solely from the source and in the manner herein specified, the Principal Amount shown above on the Maturity Date shown above, unless called for redemption prior to said Maturity Date, and to pay interest thereon at the Interest Rate per annum shown above (computed on the basis of a 360-day year of twelve 30-day months), from the Dated Date shown above, or from the most recent date to which interest has been paid or duly provided for, payable at maturity or earlier redemption, until the Principal Amount has been paid. Method and Place of Payment. The principal or redemption price and interest thereon of this Note shall be paid at maturity or upon earlier redemption to the person in whose name this Note is registered at the maturity or redemption date thereof, upon presentation and surrender of this Note at the principal office of the Treasurer of the State of Kansas, Topeka, Kansas (the "Paying Agent" and "Note Registrar"). Such amounts shall be payable (a) by check or draft mailed by the Paying Agent to the address of such Owner shown on the Note Register or at such other address as is furnished to the Paying Agent in writing by such Owner; or (b) in the case of a payment to any Owner of $500,000 or more in aggregate principal amount of Notes, by electronic transfer to such Owner upon written notice given to the Note Registrar by such Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank, ABA routing number and account number to which such Owner wishes to have such transfer directed. The principal or redemption price of and interest on the Notes shall be payable in any coin or currency that, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. Interest not punctually paid will be paid in the manner established in the within defined Note Resolution. A-1 Definitions. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the hereinafter defined Note Resolution. Authorization of Notes. This Note is one ofan authorized series of Notes of the Issuer designated "General Obligation Temporary Notes, Series 2018-1," aggregating the principal amount of $6,000,000 (the "Notes") issued for the purposes set forth in the Resolution of the Issuer authorizing the issuance of the Notes (the "Note Resolution"). The Notes are issued by the authority of and in full compliance with the provisions, restrictions and limitations of the Constitution and laws of the State of Kansas, including K.S.A. 10-101 to 10-125, inclusive, specifically including K.S.A. 10-123, K.S.A. 10-620 et seq., K.S.A. 12-631r et seq., K.S.A. 12-685 et seq., K.S.A. 12-6a01 et seq., K.S.A. 12-1736 et seq., and K.S.A. 65-163u all as amended and supplemented from time to time. General Obligations. The Notes constitute general obligations of the Issuer payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain Improvements (as said term is described in the Note Resolution), or from the proceeds of general obligation bonds of the Issuer, and if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are hereby pledged for the payment of the principal of and interest on this Note and the issue of which it is a part as the same respectively become due. Redemption Prior to Maturity. The Notes are subject to redemption prior to maturity as set forth in the Note Resolution. Transfer and Exchange. This Note may be transferred or exchanged, as provided in the Note Resolution, only on the Note Register kept for that purpose at the principal office of the Note Registrar, upon surrender of this Note together with a written instrument of transfer or authorization for exchange satisfactory to the Note Registrar duly executed by the Owner or the Owner's duly authorized agent, and thereupon a new Note or Notes in any Authorized Denomination of the same maturity and in the same aggregate principal amount shall be issued to the transferee in exchange therefor as provided in the Note Resolution and upon payment of the charges therein prescribed. The Issuer shall pay all costs incurred in connection with the issuance, payment and initial registration of the Notes and the cost of a reasonable supply of note blanks. The Issuer and the Paying Agent may deem and treat the person in whose name this Note is registered on the Note Register as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal or redemption price hereof and interest due hereon and for all other purposes. The Notes are issued in fully registered form in Authorized Denominations. THIS NOTE OR ANY PORTION HEREOF MAY BE TRANSFERRED ONLY (1) TO AN "ACCREDITED INVESTOR" AS DEFINED IN RULE 501 OF REGULATION D OF THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION AND (2) IN ACCORDANCE WITH THE TRANSFER RESTRICTIONS SET FORTH IN THE NOTE RESOLUTION. Authentication. This Note shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the hereinafter defined Note Resolution until the Certificate of Authentication and Registration hereon shall have been lawfully executed by the Note Registrar. IT IS HEREBY DECLARED AND CERTIFIED that all acts, conditions, and things required to be done and to exist precedent to and in the issuance of this Note have been properly done and performed and do exist in due and regular form and manner as required by the Constitution and laws of the State of Kansas, and that the total indebtedness of the Issuer, including this series of notes, does not exceed any constitutional or statutory limitation. A-2 IN WITNESS WHEREOF, the Issuer has caused this Note to be executed by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its Clerk, and its seal to be affixed hereto or imprinted hereon. (Facsimile Seal) ATTEST: By: (facsimile) Clerk CITY OF SALINA, KANSAS By: ~~<=fa=c=si=m=i=le~)~~~~~ Mayor This General Obligation Temporary Note shall not be negotiable unless and until countersigned below following registration by the Treasurer of the State of Kansas. (Facsimile Seal) (facsimile) Clerk A-3 CERTIFICATE OF AUTHENTICATION AND REGISTRATION This Note is one of a series of General Obligation Temporary Notes, Series 2018-1, of the City of Salina, Kansas, described in the within-mentioned Note Resolution. Registration Date _________ _ Registration Number: ________ _ Office of the State Treasurer, Topeka, Kansas, as Note Registrar and Paying Agent By: ____________ ~ CERTIFICATE OF CLERK STATE OF KANSAS ) ) SS. COUNTY OF SALINE ) The undersigned, Clerk of the City of Salina, Kansas, does hereby certify that the within Note has been duly registered in my office according to law as of July 30, 2018. WITNESS my hand and official seal. (Facsimile Seal) (facsimile) Clerk CERTIFICATE OF STATE TREASURER OFFICE OF THE TREASURER, STATE OF KANSAS JACOB LATURNER, Treasurer of the State of Kansas, does hereby certify that a transcript of the proceedings leading up to the issuance of this Note has been filed in the office of the State Treasurer, and that this Note was registered in such office according to law on------------ WITNESS my hand and official seal. (Seal) By: ------------- Treasurer of the State of Kansas A-4 NOTE ASSIGNMENT FOR VALUE RECEIVED, the undersigned do( es) hereby sell, assign and transfer to (Name and Address) (Social Security or Taxpayer Identification No.) the Note to which this assignment is affixed in the outstanding principal amount of$ , standing in the name of the undersigned on the books of the Note Registrar. The undersigned do(es) hereby irrevocably constitute and appoint as agent to transfer said Note on the books of said Note Registrar with full power of substitution in the premises. Dated ________ _ Name Social Security or Taxpayer Identification No. Signature (Sign here exactly as name(s) appear on the face of Certificate) Signature guarantee: LEGAL OPINION The following is a true and correct copy of the approving legal opinion of Gilmore & Bell, P.C., Bond Counsel, which was dated and issued as of the date of original issuance and delivery of such Notes: GILMORE & BELL, P.C. Attorneys at Law 2405 Grand Boulevard Suite 1100 Kansas City, Missouri 64108 (PRINTED LEGAL OPINION) A-5 EXHIBITB TO NOTE RESOLUTION FORM OF REPRESENTATION LETTER City of Salina, Kansas Salina, Kansas Treasurer of the State of Kansas, as Note Registrar Topeka, Kansas [date] Re: City of Salina, Kansas, General Obligation Temporary Notes, Series 2018-1 Ladies and Gentlemen: The undersigned is the transferee of$ of the notes described above (the "Notes") issued by the City of Salina, Kansas (the "Issuer") pursuant to a Note Resolution adopted by the Issuer on July 9, 2018 (the ''Note Resolution"). The undersigned hereby represents, acknowledges and covenants as follows in connection with the purchase of the Notes: 1. In purchasing the Notes, the undersigned is relying solely on information provided by the Issuer and on statements, certifications, covenants, warranties and representations of the Issuer, and on the undersigned's own knowledge and investigation of the facts and circumstances relating to the purchase of the Notes. 2. The undersigned is an "accredited investor'' within the meaning of Regulation D of the Securities and Exchange Commission. The undersigned has sufficient knowledge and experience in financial and business matters, including the purchase and ownership of tax-exempt obligations, to be capable of evaluating the merits and risks of an investment in the Notes. The undersigned has had an opportunity to obtain and has received such information and materials from the Issuer as the undersigned considers necessary to evaluate the merits and risks involved in the purchase of the Notes. 3. The undersigned has been advised that the Notes (a) have not been rated by any rating service, (b) are not being registered under the Securities Act of 1933 and are not being registered or otherwise qualified for sale under the "Blue Sky" laws and regulations of any state, ( c) will not be listed on any stock or other securities exchange, (d) will not be readily marketable and (e) are subject to provisions regarding restrictions on transfer set forth in the Note Resolution. 4. The undersigned is purchasing the Notes for the undersigned's own account and not with a view to other resale or other distribution thereof provided, however, that the undersigned may transfer the Notes in accordance with the provisions of the Note Resolution and applicable law. B-1 Sincerely yours, [TRANSFEREE] By: ____________ _ Name: _____________ _ Date: _____________ _ B-2 TRANSCRIPT CERTIFICATE $6,000,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION TEMPORARY NOTES SERIES 2018-1 DATED JULY 30, 2018 The undersigned Mayor and Clerk of the City of Salina, Kansas (the "Issuer"), do hereby make this certificate for inclusion in the transcript of and as a part of the proceedings authorizing and providing for the issuance of the above described notes (the "Notes"); and do hereby certify as ofJuly 9, 2018, as follows: 1. Meaning of Words and Terms. Capitalized words and terms used herein, unless otherwise defined herein or the context requires otherwise, shall have the same meanings ascribed to such words and terms in the hereinafter defined Note Resolution authorizing the Notes. 2. Organization. The Issuer is a legally constituted city of the first class organized and existing under the laws of the State of Kansas. 3. Transcript of Proceedings. The transcript of proceedings (the "Transcript") relating to the authorization and issuance of the Notes is to the best of our knowledge, information and belief full and complete; none of such proceedings have been modified, amended or repealed, except as might be shown in the Transcript, and the facts stated in the Transcript still exist. In each and every instance where copies appear in the Transcript, such copies are true and correct duplicates of the original instruments now on file with the Clerk. 4. Newspaper. The Salina Journal was the official newspaper of the Issuer at all times during these proceedings. 5. Meetings. All of the meetings of the governing body of the Issuer at which action was taken as shown in the Transcript were either regular meetings or duly adjourned regular meetings or special meetings duly called and held in accordance with law and the ordinances and rules of the Issuer. 6. Incumbency of Officers. The following named persons were and are the duly qualified and acting officers of the Issuer at and during all the times when action was taken as indicated in the Transcript as follows: Name Title Term of Office Karl Ryan Mayor January 8, 2018 to Present Kaye Crawford Mayor April 18, 2016 to January 8, 2018 Norman M. Jennings Mayor April 19, 2012 toApril 15, 2013 Kristin M. Seaton Mayor April 16, 2001 to April 14, 2003 Trent Davis Vice-Mayor January 8, 2018 to Present Karl Ryan Vice-Mayor April 18, 2016 to January 8, 2018 Kaye Crawford Vice-Mayor April 20, 2015 to April 18, 2016 Jon R. Blanchard Vice-Mayor April 21, 2014 to April 20, 2015 Karl Ryan Commissioner April 20, 2015 to Present Joe Hay, Jr. Commissioner January 8, 2018 to Present Melissa Rose Hodges Commissioner January 9, 2017 to Present Mike Hoppock Commissioner January 8, 2018 to Present Trent Davis Commissioner September 8, 2014 to Present Kaye Crawford Commissioner April 18, 2011 to January 8, 2018 Randall Hardy Commissioner April 15, 2013 to January 8, 2017 Jon Blanchard Commissioner April 15, 2013 to January 8, 2018 Barbara Shirley Commissioner April 18, 2011 to April 20, 2015 Aaron Householter Commissioner April 18, 2011 to April 21, 2014 Samantha Angell Commissioner April 13, 2009 to April 15, 2013 Norman M. Jennings Commissioner April 13, 2009 toApril 15 2013 Alan Jilka Commissioner April 16, 2001 to April 13, 2009 Debbie Divine Commissioner April 16, 2001toApril16, 2007 Monte Shadwick Commissioner April 16, 2001toApril18, 2005 Don Heath Commissioner January 14, 2002 toApril 14, 2003 Shandi Wicks Clerk March 10, 2014 to Present Lieu Ann Elsey Clerk April I, 2001 to December 16, 2013 7. Execution of Notes. The Notes have been executed with manual or facsimile signatures; and the manual or facsimile signatures appearing on the face of the Notes are manual or facsimiles of the true and genuine signatures of the Mayor and Clerk of the Issuer. Each signature has been duly filed in the office of the Secretary of State of Kansas pursuant to K.S.A. 75-4001 et seq. A facsimile of the seal of the Issuer is affixed to or imprinted on each of the Notes and on the reverse side of each of the Notes at the place where the Clerk has executed by facsimile signature the Certificate of Registration; and each Notes bears a Certificate of Registration evidencing the fact that it has been registered in the office of the Clerk. A true impression of the seal is set forth adjacent to the signature of the Clerk below. The specimen note included in the Transcript is in the form adopted by the governing body of the Issuer forthe Notes. 8. Authorization and Purpose of the Notes. The Notes are being issued pursuant to Resolution No. 18-7563 (the "Note Resolution") of the Issuer pursuant to K.S.A. 10-123 for the purpose of: (a) paying a portion of the costs of certain public improvements (the "Improvements") authorized by the governing body of the Issuer pursuant to K.S.A. 10-101 to 10-125, inclusive, specifically including K.S.A. 10-123, K.S.A. 10-620 et seq., K.S.A. 12-631r et seq., K.S.A. 12-685 et seq., K.S.A. 12- 6a01 et seq., K.S.A. 12-1736 et seq. and K.S.A. 65-163u, all as amended, and all other applicable provisions of the laws of the State of Kansas; and (b) retiring on August 1, 2018 the following temporary notes of the Issuer, issued to temporarily finance the Improvements (the "Refunded Notes"): Description General Obligation Temporary Notes Series 2017-1 Dated Date July 27, 2017 Maturitv Date August 1, 2018 Amount $2,180,000 The total principal amount of the Notes does not exceed the cost of the Improvements for which the Notes are issued. 2 The interest rates on the Notes on the date of the sale of the Notes were within the maximum legal limit for interest rates under K.S.A. 10-1009, as amended. 9. Indebtedness. The currently outstanding applicable indebtedness of the Issuer, including the Notes, does not exceed any applicable constitutional or statutory limitations. A schedule that sets forth all currently outstanding general obligation indebtedness of the Issuer is attached hereto as Exhibit A and made a part hereof by reference as though fully set out herein. 10. Valuation. The total assessed valuation of the taxable tangible property within the Issuer for the year 2017 was $481,461,005. 11. Non-litigation. There is no controversy, suit or other proceedings of any kind pending or threatened wherein or whereby any question is raised or may be raised, questioning, disputing or affecting in any way: (a) the legal organization of the Issuer or its boundaries; (b) the right or title of any of its officers to their respective offices; ( c) the legality of any official act shown to have been done in the Transcript; (d) the constitutionality or validity of the indebtedness represented by the Notes shown to be authorized in the Transcript; ( e) the validity of the Notes, or any of the proceedings had in relation to the authorization, issuance or sale thereof; or (t) the levy and collection of a tax to pay the principal of and interest on the Notes. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 3 WITNESS our true and genuine manual signatures and the seal of the Issuer. Mayor ffttau4t· 11)!.UI Clerk (Signature page to Transcript Certificate) EXHIBIT A SCHEDULE OF OUTSTANDING GENERAL OBLIGATION INDEBTEDNESS (as of July 30, 2018) General Obligation Bonds: Amount of Final Amount Date Issued Series Purpose Issue Maturi!I Outstanding 12/15/2008 2008-B Internal hnprovements $3,525,000 7/1/2024 $1,035,000 711512009 2009-A Internal hnprovements 23,695,000 10/112020 5,015,000 5/112010 2010-A Refunding and hnp. 6,875,000 10/112021 960,000 10/15/2010 2010-B Refunding 7,860,000 10/112023 2,245,000 7/15/2011 2011-A Internal hnprovements 6,565,000 10/112021 1,440,000 7/15/2012 2012-A Internal hnprovements 2,365,000 10/112027 1,650,000 7/15/2012 2012-B Refunding 3,785,000 10/112020 890,000 2/15/2013 2013-A Taxable hnprovements 1,360,000 10/112028 1,080,000 7/15/2013 2013-B hnprovements 4,330,000 10/112033 3,415,000 7/30/2014 2014-A hnprovements 7,570,000 10/112034 5,860,000 7/29/2015 2015-A Revenue and Internal hnp. 6,825,000 10/112035 6,195,000 7/26/2016 2016-A Internal hnprovements 6,570,000 10/112036 6,330,000 7/26/2016 2016-B Refunding 13,750,000 10/1/2031 13,750,000 7/27/2017 2017-A Internal hnprovements 9,310,000 10/112037 9,310,000 Total: $59,175,000 Temporary Notes: Amount of Final Amount Date Issued Series Issue Maturity Outstanding 7/20/2016 2016-2 $4,615,000 9/112019 $4,165,000 7/27/2017 2017-1 2,180,000 8/112018 O(I) 7/30/2018 2018-1 6,000,000 12/1/2018 6,000,000 Total: $10,165,000 <1>To be redeemed with proceeds from the Series 2018-1 Notes. CERTIFICATE OF MANUAL SIGNATURE OF THE MAYOR OF THE CITY OF SALINA, KANSAS RECEIVED AUG 0 6 2018 KRIS W. KOBACH SECRETARY OF STATE IN THE OFFICE OF THE SECRETARY OF STATE OF THE STATE OF KANSAS STATE OF KANSAS COUNTY OF SALINE ) ) SS. ) I, the undersigned, Mayor, being duly sworn on oath certify that I am the duly qualified Mayor of the City of Salina, Kansas, and that the signature appearing below is my signature and I file herewith this certificate pursuant to K.S.A. 75-4001 to 75-4007, inclusive. Subscribed and sworn to before me as of July 9_, 2018. A • SHANDI L. WICKS ~ Notary Public • Stat of Kansas My Appl. Expires (SEAL) My commission expires: <:/.,~ ~O ~, KM! F. R~ 1-I;f- CERTIFICATE OF MANUAL SIGNATURE OFTBE CLERK OF THE CITY OF SALINAt KANSAS IN THE OFFICE OF THE SECRETARY OF STATE OFTBE STATE OF KANSAS STATE OF KANSAS COUNTY OF SALINE ) ) SS. ) I, the undersigned, Shandi Wicks, being duly sworn on oath certify that I am the duly qualified Clerk of the City of Salina, Kansas, and that the signature appearing below is my signature and I file herewith this certificate pursuant to K.S.A. 15-4001 to 75-4007, inclusive. Subscnocd and sworn to before me as of July 14, 2014. (SEAL) My commission expires: i; ... 11f:t1 J-1 Shandi Wicks RECEIVED JUL 2 2 201~ KRIS W. KOBACH SECRETARY OF STATE REGISTERED NUMBERR-1 REGISTERED $6,000,000 TIDS NOTE OR ANY PORTION HEREOF MAY BE TRANSFERRED ONLY (1) TO AN "ACCREDITED INVESTOR" AS DEFINED IN RULE 501 OF REGULATION D OF THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION AND (2) IN ACCORDANCE WITH THE TRANSFER RESTRICTIONS SET FORTH IN THE NOTE RESOLUTION. Interest Rate: 1.990% OWNER: PRINCIPAL AMOUNT: UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA GENERAL OBLIGATION TEMPORARY NOTE SERIES 2018-1 Maturity ~ated Date: December 1, Date: July 30, 2018 KNOW ALL PERSONS BY T~·. !'-P~~N'i)s: That the City of Salina, in the County of Saline, State of Kansas (the "Issuer"), fo value receiv~hereby acknowledges itself to be indebted and promises to pay to the Owner sho.wP'lbo ""-or ~egiktered assigns, but solely from the source and in the manner herein specified, the Prin ipal , t~tn above on the Maturity Date shown above, unless called for redemption prior to sa · · , · ty D te, and to pay interest thereon at the Interest Rate per annum shown above (computed on si \i a 3 ,',-day year of twelve 30-day months), from the Dated Date shown above, or from the t re•· nt d o which interest has been paid or duly provided for, payable at maturity or earlier red~~ion, · ~.til the rincipal Amount has been paid. Method and~~£ ~--a§ment. The principal or redemption price and interest thereon of this Note shall b~ paid at matu ·ty o 1 pon earlier redemption to t~e person in whose na~e this Note is reg~st~red at the matunty or redemptl ·· · date thereof, upon presentation and surrender of this Note at the pnnc1pal office of the Treasurer of the State of Kansas, Topeka, Kansas (the "Paying Agent" and "Note Registrar"). Such amounts shall be payable (a) by check or draft mailed 'by the Paying Agent to the address of such Owner shown on the Note Register or at such other address as is furnished to the Paying Agent in writing by such Owner; or (b) in the case of a payment to any Owner of $500,000 or more in aggregate principal amount of Notes, by electronic transfer to such Owner upon written notice given to the Note Registrar by such Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank, ABA routing number and account number to which such Owner wishes to have such transfer directed. The principal or redemption price of and interest on the Notes shall be payable in any coin or currency that, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. Interest not punctually paid will be paid in the manner established in the within defined Note Resolution. Definitions. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the hereinafter defined Note Resolution. Authorization of Notes. This Note is one of an authorized series of Notes of the Issuer designated "General Obligation Temporary Notes, Series 2018-1 ," aggregating the principal amount of $6,000,000 (the "Notes") issued for the purposes set forth in the Resolution of the Issuer authorizing the issuance of the Notes (the "Note Resolution"). The Notes are issued by the authority of and in full compliance with the provisions, restrictions and limitations of the Constitution and laws of the State of Kansas, including K.S.A. 10-101 to 10-125, inclusive, specifically including K.S.A. 10-123, K.S.A. 10-620 et seq., K.S.A. 12-631r et seq., K.S.A. 12-685 et seq., K.S.A. 12-6a01 et seq., K.S.A. 12-1736 et seq., and K.S.A. 65-163u all as amended and supplemented from time to time. General Obligations. The Notes constitute general obligations of the Issuer payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain Improvements (as said term is described in the Note Resolution), or from the proceeds of general obligation bonds of the Issuer, and if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangi~e property, real and personal, within the territorial limit~ o~ the Issuer. . The full fait~, credit and reso:urces o ' e_ Iss~e~ are hereby pledged for the payment of the principal of and mterest on this Note and the)§.~ it is a part as the same respectively become due. -· · · Redemption Prior to Maturity. The Notes are sub· prior to maturity as set forth in the Note Resolution. _Transfer and Exchange.. This Note may~«~et\f; . . . Resolution, only on the Note Register kept for ~t ~-os~. the' prmc1pal office of the Note Registrar, upon surrender of this. Note together with a x ri '. ' inStIV.£1ellt of transfer or authorization for exchange satisfactory to the Note Registrar_ duly ex~~· by · . e., .... ?wJrer ?r the Owner's duly a~thorize~ agent, and thereupon a new Note or Notes m any ~[\ithonzed De ·ofumation of the same maturity and m the same aggregate principal amount shall be ·ss._ue. ·~to th. e .. t trara}i s eree in exchange therefor as provided in the Note Resolut~on an~ upon payment oft ~e charge ~yp~escri?ed. The Issuer shall pay all costs incurred in connection with the ISsuance, p .· :~~ .. d. 1f1, tial reg1strat10n of the Notes and the c~st of a reasonab~e supply of note blanks. Th~· ; · e P?ng Agent may deem and treat the person m whose name this Note is registered on the · : Re ·": ster · , . e absolute owner hereof for the purpose of receiving payment of, or on account of,~. ' , rin • .al or reaemption price hereof and interest due hereon and for all other purposes. The Notes @le issued i ·;... y registered form in Authorized Denominations. ~ THIS NOTE OR"'ANJ' PORTION HEREOF MAY BE TRANSFERRED ONLY (1) TO AN "ACCREDITED INVEST~ AS DEFINED IN RULE 501 OF REGULATION D OF THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION AND (2) IN ACCORDANCE WITH THE TRANSFER RESTRICTIONS SET FORTH IN THE NOTE RESOLUTION. Authentication. This Note shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the hereinafter defined Note Resolution until the Certificate of Authentication and Registration hereon shall have been lawfully executed by the Note Registrar. 2 IT IS HEREBY DECLARED AND CERTIFIED that all acts, conditions, and things required to be done and to exist precedent to and in the issuance of this Note have been properly done and performed and do exist in due and regular form and manner as required by the Constitution and laws of the State of Kansas, and that the total indebtedness of the Issuer, including this series of notes, does not exceed any constitutional or statutory limitation. By:~·~ Clerk This General Obligation Tempor below following registration by the Trea 3 CITY OF SALINA, KANSAS By: - f ~'l<.Jt&J Clerk CERTIFICATE OF AUTHENTICATION AND REGISTRATION This Note is one of a series of General Obligation Temporary Notes, Series 2018-1 , of the City of Salina, Kansas, described in the within-mentioned Note Resolution. Registration Date JUL 3 0 2 0 18 Registration Number:_ 0322-085-073018-405_ STATE OF KANSAS ) ) SS. ) b OFFICE OF THE TREASURER, STATE OF KANSAS Office of the State Treasurer, Topeka, Kansas, as Note Registrar and Paying Agent By: ------:;------ fflA.ttb!d.'u )UJ< ---Clerk ----- JAKE LATURNER, Treasurer of the State of Kansas, does hereby certify that a transcript of the proceedings leading up to the issuance of this Note has been filed in the office of the State Treasurer, and that this Note was registered in such office according to law....oll-J u L a 0 20 ·1 ~ I SS my hand and official seal. Bvf?O -cf;; ~ ~-1<. , Treasurer of the State of Kansas 4 !··· NOTE ASSIGNMENT FOR VALUE RECEIVED, the undersigned do( es) hereby sell, assign and transfer to . (Name and Address) (Social Security or Taxpayer Identification No.) the Note to which this assignment is affixed in the outstanding principal amount of$ , standing in the name of the undersigned on the books of the Note Registrar . .:Ebe undersigned do(es) hereby irrevocably constitute and appoint as agent ~tr~n)f~sai.id Note on the books of said Note Registrar with full power of substitution in the premises. ~ Dated ________ _ Name SimaftJre (Sign here exactly as name(s) app~ar on the face of Certificate) By 5 LEGAL OPINION The following is a true and correct copy of the approving legal opinion of Gilmore & Bell, P.C., Bond Counsel, which was dated and issued as of the date of original issuance and delivery of such Notes: Governing Body City of Salina, Kansas The Bennington State Bank Salina, Kansas GILMORE & BELL, P.C. Attorneys at Law 2405 Grand Boulevard Suite 1100 Kansas City, Missouri 64108 Re: $6,000,000 General Obligation Temporary Salina, Kansas, Dated July 30, 201j$ i'al to our opinion, we have relied on the certified proceedings ficials and others furnished to us without undertaking to verify them by Based upon the fo~g9jng, we are of the opinion, under existing law, as follows: 1. The Notes have been duly authorized, executed and delivered by the Issuer and are valid and legally binding general obligations of the Issuer. 2. The Notes are payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain improvements or from general obligation bonds of the Issuer and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The Issuer is required by law to include in its annual tax levy the principal and interest coming due on the Notes to the extent that necessary funds are not provided from other sources. 3. The interest on the Notes is: (a) excludable from gross income for federal income tax purposes; and (b) not an item of tax preference for purposes of the federal alternative minimum tax. The opinions set forth in this paragraph are subject to the condition that the Issuer complies with all requirements of the Internal Revenue Code of 1986, as amended (the "Code") that must be satisfied subsequent to the 6 issuance of the Notes in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes. The Issuer has covenanted to comply with all of these requirements. Failure to comply with certain of these requirements may cause interest on the Notes to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Notes. The Notes have not been designated as "qualified tax-exempt obligations" for purposes of Code § 265(b )(3). We express no opinion regarding other federal tax consequences arising with respect to the Notes. 4. The interest on the Notes is exempt from income taxation by the State of Kansas. The rights of the owners of the Notes and the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights generally and by equitable principles, whether considered at law or in equity. This opinion is given as of its date, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may come to our attentioIMPr any changes in law that may occur after the date of this opinion. 7 AGREEMENT BETWEEN ISSUER AND AGENT $6,000,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION TEMPORARY NOTES SERIES 2018-1 DATED JULY 30, 2018 TIDS AGREEMENT, dated as of July 30, 2018, between the City of Salina, Kansas, a municipality (the "Issuer''), and the State Treasurer of Kansas, as Agent (the "Agent"). WHEREAS, for its lawful purposes, the Issuer has duly authorized the issue of the above- captioned notes (the "Securities"), and the Issuer wishes theAgent to act as its Paying Agent, Note Registrar, and Transfer Agent for the Securities: Now, therefore, it is hereby agreed as follows: I. APPOINTMENT Issuer hereby appoints or has previously appointed the State Treasurer of Kansas to act as Paying Agent, Note Registrar and Transfer Agent for the Securities. The State Treasurer of Kansas hereby accepts its appointment as the Paying Agent, Note Registrar and Transfer Agent. II. BASIC DUTIES A. Issuer or its duly authorized representative agrees to furnish Agent the name(s) and address( es) of the initial registered owner( s) of the Securities together with such registered owners' tax identification (social security) number(s), the maturity date(s), denomination(s) and interest rate(s) for each Security. B. Agent shall manually authenticate the originally issued Securities upon the written order of one or more authorized officers oflssuer. Thereafter, Agent shall manually authenticate all Securities resulting from transfer or exchange of Securities. C. Agent shall maintain an office in the City of Topeka, Kansas, where Securities may be presented for registration, transfer and exchange; and shall also maintain an office in the City of Topeka, Kansas, where Securities may be presented for payment. Agent shall keep a register of the Securities and their transfer and exchange. D. Agent may rely upon any document believed by it to be genuine and to have been signed or presented by the proper person. Agent need not investigate any fact or matter stated in the document. Agent undertakes to perform such duties and only such duties set forth in K.S.A. 10-620 et seq., except as specifically provided in this Agreement. Agent shall notify the owners of the Securities upon default in payment of principal or interest on the Securities and the Agent shall have no duties or responsibilities thereafter. III. COMPENSATION Issuer covenants and agrees to pay to Agent, as reasonable compensation for the services provided as Agent, a registration fee of $30, plus a fee of $550. This amount will be due at the time of registration unless such fee is to be paid from the proceeds of the note issue in which case Issuer agrees to pay such fee within two (2) business days of the closing of the note issue. In addition to the aforementioned fee, Issuer covenants and agrees to pay to Agent the fee as stated and required by K.S.A. 10-505 for performing the duties of paying the principal of the Securities. Iv. STANDARD OF PERFORMANCE Issuer shall provide, or shall cause to be provided to Agent, a designation of whether its Securities are to be issued in certificated or uncertificated form, or both. A. STATEMENTS OF OWNERSHIP Agent agrees to provide Statements of Ownership to the owner ofuncertificated Securities. Such Statements shall be in accordance with the standards set forth by the Attorney General. All Statements shall be issued in the denominations of $100,000 or an integral multiple of $5,000 in excess thereof except for one additional Security in another denomination, which additional Security shall mature in the initial maturity year of the series of the Securities. Interest is computed on the basis of $100,000 units and in all transactions involving the payment of interest, fractions of a cent equaling or exceeding five mills shall be regarded as one cent; fractions of a cent less than five mills shall be disregarded. Agent shall at all times maintain an adequate supply of Statements of Ownership for any anticipated transfers or exchanges of the Statements. B. CERTIFICATED SECURITIES All certificated Securities issued by Issuer under this Agreement shall be in accordance with the standards set forth by the Attorney General and unless otherwise authorized by Agent, the principal thereof shall be payable only upon surrender of the Security to Agent. All certificates shall be issued in the denomination of $100,000 or an integral multiple of $5,000 in excess thereof except one authorized Security in another denomination which additional Security shall mature in the initial maturity year of the series of Securities. Interest is computed on the basis of $100,000 units and in all transactions involving the payment of interest, fractions of a cent equaling or exceeding five mills shall be regarded as one cent; fractions of a cent less than five mills shall be disregarded. Issuer shall at Issuer's cost provide Agent with an adequate supply of certificates for any anticipated transfers or exchanges of the certificates. Issuer shall be responsible for the payment of the printing or other expenses for such certificates. Issuer shall be responsible for obtaining appropriate "CUSIP" number(s), if any, and shall notify Agent of each number(s) prior to the issuance of the applicable Securities. C. INTEREST CALCULATIONS Agent shall calculate interest on the basis of $100,000 units, or in the case of one odd denomination, calculate the unit separately. Each intermediate unit calculation is first determined, then rounded to the sixth decimal position; i.e. whenever the seventh decimal place is equal to or greater than five the sixth decimal place is increased by one. The final 2 per unit calculation is subsequently rounded to two decimal positions. (See Attachment "A" for sample calculation.) D. SURRENDER Securities surrendered for payment, cancellation or partial redemption shall be cancelled by Agent and returned to Issuer in accordance with K.S.A. 10-111. E. TRANSFERS AND EXCHANGES 1. When Securities are presented to Agent for transfer or exchange, Agent shall so transfer or exchange such Securities if the requirements of Section 8-401 (1) of the Uniform Commercial Code are met. 2. In accordance with the authorizing Resolution of the Issuer (the "Note Resolution"), payments of interest shall be made to the owner of record of each Security as of the close of business on the fifteenth day of the month preceding each interest payment date. The Agent shall make such payments to the record owner of each Security as set forth on the registration books maintained by Agent as of such date. 3. Agent shall not be required to transfer or exchange any Security during a period beginning on the day following the fifteenth day of the month preceding any interest payment date for such Securities and ending at the close of business on the interest payment date, or to transfer or exchange any Security selected or called for redemption in whole or in part subsequent to the date notice of such redemption is given in accordance with the Note Resolution authorizing the Securities. F. REGISTRATION DATES AND FUNDS FOR PAYMENTS Date of Registration shall be affixed on the initial Securities. Subsequent transfers or exchanges shall bear a Date of Registration as of the date that all the required documentation is received at the Agent's official place of business. Issuer will provide funds to make any interest or principal payments in accordance with K.S.A. 10-130 and amendments thereto. Agent is hereby authorized to effect any semiannual payment of interest or any principal by charging the Issuer's Fiscal Agency account with Agent. G. REPLACEMENT OF SECURITIES If the owner of a Security claims that a Security has been lost, destroyed or wrongfully taken, Issuer shall issue and Agent shall authenticate a replacement Security if the requirements of Section 8-405 of the Uniform Commercial Code are met. Only Agent shall perform this function. An indemnity bond and affidavit of loss shall be provided to Agent and Issuer at the expense of the owner of the Security. Such indemnity bond and affidavit of loss must be sufficient in the judgment of Issuer and Agent to protect Issuer and Agent from any loss which any of them may suffer if the Security is replaced. Issuer may charge the Security owner for its expenses in the replacement of a Security. H. REDEMPTIONS Optional Redemption. If any Securities are to be redeemed pursuant to an optional 3 redemption in accordance with their terms, Issuer agrees to give Agent at least fifteen (15) days written notice thereof prior to the notice to be given the Security owners. If there is no provision for notice to the Security owners, Issuer agrees to give at least thirty (30) days written notice to Agent. Notice of Redemption. Agent shall then notify, by ordinary mail, the owner of such Securities to be so redeemed. Agent shall select the Securities to be so redeemed. Agent shall not be required to exchange or register a transfer of any Security for a period of fifteen (15) days preceding the date notice is to be provided to the Security owners for the purpose of selecting Securities on a partial redemption. Further, in the event notice is given to Agent for a complete redemption of the Issue according to the terms of the Note Resolution, Agent shall not be required to transfer or exchange any Security beginning on the day following the 15th day preceding the date set for redemption. I. MISCELLANEOUS Agent hereby acknowledges receipt of numbered Securities of Issuer (in a number equal to one Security for each maturity) for registration and exchange, and shall safeguard any "blank" Securities held for purpose of exchange or transfer. J. REPORTS Agent shall provide Issuer an annual report of the activity with respect to the issuance of Securities upon written request of Issuer. K. CONSTRUCTION This Agreement shall be construed in accordance with the laws of the State of Kansas and also the Note Resolution. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 4 ATIEST: By: __ fiAa~Ur:t~~-112....._~=--· ,...__ __ Clerk CITY OF SALINA, KANSAS By:~~~~---"---#-· D~c--- l\1ayor ~ OFFICE OF THE TREASURER OF THE STATE OF KANSAS (Signature page to Agreement Between Issuer and Agent -Notes) ATTACHMENT "A" SAMPLE $5,000.00000 ........................ Bond Unit x .06875 ........................ Interest Rate = 343.750000 Rounded to six decimal places I 360 ........................ Days per year .954861 Rounded to six decimal places x 180 ........................ Day in interest period 171.874980 (Rounded to second decimal= $171.87) Unit interest is then multiplied by the number of units in the maturity. A-1 UNDERWRITING SAFEKEEPING AGREEMENT BY AND BETWEEN THE BENNINGTON STATE BANK AND THE CITY OF SALINA, KANSAS AND THE OFFICE OF THE KANSAS STATE TREASURER $6,000,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION TEMPORARY NOTES SERIES 2018-1 DATED JULY 30, 2018 In order to induce The Bennington State Bank (the "Purchaser") to accept delivery of the above captioned notes (the "Notes") for safekeeping prior to the delivery of the Notes on July 30, 2018 (the "Closing Date"), the City of Salina, Kansas (the "Issuer") and the Treasurer of the State of Kansas (the "Agent") hereby agree to place the entire principal amount of the Notes, in the custody, control and possession of the Purchaser at least one day prior to the Closing Date. By executing this agreement, the Purchaser acknowledges receipt from the Agent of possession, custody, and control of the Notes, and agrees to safekeep and hold in escrow the Notes until it shall have received notification from one of the following authorized representatives of the Issuer to release or return the Notes: Shandi Wicks, Clerk, or Gilmore & Bell, P.C., Bond Counsel. Notification may be made by telephone or by receipt of an executed notice, delivered or telecopied to the Purchaser; provided, however, that if the notification is made by telephone, written notice must be sent within 24 hours of the original notification. In the event the Issuer executes the release of the Notes the Purchaser may release the Notes from escrow; however, in the event a demand for the return of the Notes is received, the Purchaser shall return the Notes as soon as practicable, but in any event, no later than the following business day. The Purchaser agrees to hold the Issuer and the Agent, as their interests may appear, and any of their officers or employees, harmless from any liability, loss, damage or reasonable expense in connection with the loss, theft, destruction or other disappearance of the Notes while they are in the possession, custody or control of the Purchaser, prior to concluding the Closing with respect to the Notes and prior to releasing the Notes from escrow as provided herein. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] THE BENNINGTON STATE BANK Dated: July .L]_, 2018 (Signature page to Underwriting Safekeeping Agreement) OFFICE OF THE TREASURER OF THE STATE OF KANSAS, As Agent Dated: July !1, 2018 (Signature page to Underwriting Safekeeping Agreement) CITY OF SALINA, KANSAS Dated: July 9, 2018 By:~·/Lw Clerk (Signature page to Underwriting Safekeeping Agreement) CLOSING CERTIFICATE $6,000,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION TEMPORARY NOTES SERIES 2018-1 DATED JULY 30, 2018 The undersigned Mayor and Clerk of the City of Salina, Kansas (the "Issuer''), make this Certificate for inclusion in the transcript of and as a part of the proceedings authorizing and providing for the issuance of the above described notes (the "Notes"); and certify as of July 30, 2018 (the "Issue Date"), as follows: 1. Meaning of Words and Terms. Capitalized words and terms used in this Certificate, unless otherwise defined in this Certificate or the context requires otherwise, have the same meanings ascribed to such words and terms in the Note Resolution (defined below) authorizing the Notes. 2. Transcript of Proceedings. The transcript of proceedings relating to the authorization and issuance of the Notes (the "Transcript"), furnished to the Purchaser of the Notes, is to the best of our knowledge, information and belief full and complete; none of such proceedings have been modified, amended or repealed, except as might be shown in the Transcript; and the facts stated in the Transcript still exist. In each instance where copies appear in the Transcript, such copies are true and correct duplicates of the original instruments now on file with the Clerk. All certifications made by the Issuer in the Transcript Certificate dated July 9, 2018 are true and correct as of this date and are incorporated in this Certificate by reference. 3. The Note Resolution. The Issuer is issuing and delivering the Notes simultaneously with the delivery of this Certificate, pursuant to and in full compliance with the Constitution and statutes of the State, K.S.A. 10-101 to 10-125, inclusive, specifically including K.S.A. 10-123, K.S.A. 10-620 et seq., K.S.A. 12-631r et seq., K.S.A. 12-685 et seq., K.S.A. 12-6a01 et seq., K.S.A. 12-1736 et seq., and K.S.A. 65-163u, and Resolution No. 18-7563 duly adopted by the governing body of the Issuer on July 9, 2018 (the "Note Resolution"). 4. Purpose of the Notes. The Notes are being issued pursuant to the Note Resolution for the purpose of: (a) paying a portion of the costs of certain public improvements (the "Improvements"); and (b) retiring on August 1, 2018 the following temporary notes of the Issuer, issued to temporarily finance the Improvements (the "Refunded Notes"): Description General Obligation Temporary Notes Series 2017-1 DatedDate July 27, 2017 Maturity Date August 1, 2018 Amount $2,180,000 5. Security for the Notes. The Notes are general obligations of the Issuer payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain public improvements, or from the proceeds of general obligation bonds of the Issuer, and, if not so paid, to the extent necessary, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The balance of the principal and interest on the Notes is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are pledged under the Note Resolution to the payment of the principal of and interest on the Notes. 6. Sale of Notes. The Notes have been sold at rates not in excess of the limitations set forth in K.S.A. 10-1009. 7. Non-Litigation. There is no controversy, action, suit, proceeding, or to the best of our knowledge, any inquiry or investigation at law or in equity or before or by any public board or body pending or, to the best or our knowledge, threatened against or affecting the Issuer, its officers or its property, or, to the best of our knowledge, any basis therefor questioning, disputing or affecting in any way: (a) the legal organization of the Issuer or its boundaries; (b) the right or title of any of its officers to their respective offices; ( c) the legality of any official act shown to have been done in the Transcript; ( d) the constitutionality or validity of the indebtedness represented by the Notes shown to be authorized in the Transcript; (e) the validity of the Notes, or any of the proceedings had in relation to the authorization, issuance or sale thereof; (f) the levy and collection of an ad valorem property tax to pay the principal of and interest on the Notes; or (g) the federal or state tax-exempt status of the interest on the Notes; wherein any unfavorable decision, ruling or finding would adversely affect the Issuer, the transactions contemplated by the Note Purchase Agreement, or by the Note Resolution, or the validity or enforceability of the Notes or the Note Purchase Agreement. 8. Representations and Warranties Required by the Note Purchase Agreement. The Issuer has duly performed all of its obligations required to be performed at or prior to the date of this Closing Certificate by the Note Purchase Agreement and each of the Issuer's representations and warranties contained in the Note Purchase Agreement are true as of the date of this Certificate. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 2 Official Title Mayor Clerk (Signature Page to Closing Certificate) FEDERAL TAX CERTIFICATE Dated as of July 30, 2018 of the CITY OF SALINA, KANSAS $6,000,000 GENERAL OBLIGATION TEMPORARY NOTES SERIES 2018-1 Section 1.01 Section 2.01 Section 2.02 Section 3.01 Section 3.02 Section 3.03 Section 3.04 Section 3.05 Section 3.06 Section 3.07 Section 3.08 Section 3.09 Section 3.10 Section 3.11 Section 3.12 Section 3.13 Section 3.14 Section 4.01 Section 4.02 Section 4.03 Section 4.04 Section 4.05 Section 4.06 Section 5.01 Section 5.02 Section 5.03 Section 5.04 Section 5.05 Section 5.06 FEDERAL TAX CERTIFICATE TABLE OF CONTENTS ARTICLE I DEFINITIONS Definitions of Words and Terms ................................................................................. 1 ARTICLE II GENERAL REPRESENTATIONS AND COVENANTS Representations and Covenants of the Issuer ........................................................... 6 Survival of Representations and Covenants ............................................................. 9 ARTICLE III ARBITRAGE CERTIFICATIONS AND COVENANTS General. ........................................................................................................................ 9 Reasonable Expectations ............................................................................................. 9 Purpose of Financing ................................................................................................... 9 Funds and Accounts .................................................................................................... 9 Amount and Use of Note Proceeds ........................................................................... 10 Multipurpose Issue .................................................................................................... 10 Current Refunding .................................................................................................... 10 Completion of Financed Improvements; New Money Portion .............................. 10 Sinking Funds ............................................................................................................ 11 Reserve, Replacement and Pledged Funds .............................................................. 11 Purpose Investment Yield ......................................................................................... 11 Issue Price and Yield on Notes ................................................................................. 11 Miscellaneous Arbitrage Matters ............................................................................. 11 Conclusion .................................................................................................................. 12 ARTICLE IV POST-ISSUANCE TAX COMPLIANCE General. ...................................................................................................................... 12 Record Keeping; Use of Note Proceeds and Use of Financed Improvements ...... 12 Restrictions on Investment Yield ............................................................................. 13 Procedures for Establishing Fair Market Value of Investments ........................... 14 Certain Gross Proceeds Exempt from the Rebate Requirement .......................... 16 Computation and Payment of Arbitrage Rebate and Yield Reduction Amounts. 18 ARTICLE V MISCELLANEOUS PROVISIONS Term of Tax Certificate ............................................................................................ 19 Amendments .............................................................................................................. 19 Opinion of Bond Counsel .......................................................................................... 19 Reliance ...................................................................................................................... 19 Severability ................................................................................................................. 20 Benefit of Certificate ................................................................................................. 20 Section 5.07 Section 5.08 Section 5.09 Default; Breach and Enforcement ........................................................................... 20 Governing Law .......................................................................................................... 20 Electronic Transactions ............................................................................................ 20 LIST OF EXHIBITS TO FEDERAL TAX CERTIFICATE A. IRS Form 8038-G Evidence of filing B. Receipt for Purchase Price C. Purchaser's Receipt for Notes and Issue Price Certificate D. Description of Property Comprising the Financed Improvements and List of Reimbursements E. Form of Final Written Allocation Schedule 1 Debt Service Schedule and Proof of Yield 11 FEDERAL TAX CERTIFICATE TIDS FEDERAL TAX CERTIFICATE (the "Tax Certificate"), is executed as of July 30, 2018 (the "Issue Date"), by the City of Salina, Kansas (the "Issuer"). RECITALS 1. This Tax Certificate is being executed and delivered in connection with the issuance by the Issuer of $6,000,000 principal amount of General Obligation Temporary Notes, Series 2018-1 (the "Notes"), under the Note Resolution (as defined herein), for the purposes described in this Tax Certificate and in the Note Resolution. 2. The Internal Revenue Code of 1986, as amended (the "Code"), and the applicable Regulations and rulings issued by the U.S. Treasury Department (the "Regulations"), impose certain limitations on the uses and Investment of the Note proceeds and of certain other money relating to the Notes and set forth the conditions under which the interest on the Notes will be excluded from gross income for federal income tax purposes. 3. The Issuer is executing this Tax Certificate in order to set forth certain facts, covenants, representations, and expectations relating to the use of Note proceeds and the property financed or refinanced with those proceeds and the Investment of the Note proceeds and of certain other related money, in order to establish and maintain the exclusion of the interest on the Notes from gross income for federal income tax purposes and to provide guidance for complying with the arbitrage rebate and yield reduction provisions of Code§ 148(f). 4. The Issuer adopted a Tax Compliance Procedure (as defmed below) for the purpose of setting out general procedures for the Issuer to continuously monitor and comply with the federal income tax requirements set out in the Code and the Regulations. This Tax Certificate is entered into as required by the Tax Compliance Procedure, in part, to set out specific tax compliance procedures applicable to the Notes. NOW, THEREFORE, in consideration of the foregoing and the mutual representations, covenants and agreements set forth in this Tax Certificate, the Issuer represents, covenants and agrees as follows: ARTICLE I DEFINITIONS Section 1.01 Definitions of Words and Terms. Except as otherwise provided in this Tax Certificate or unless the context otherwise requires, capitalized words and terms used in this Tax Certificate have the same meanings as set forth in the Note Resolution, and certain other words and phrases have the meanings assigned in Code§§ 103, 141-150 and the Regulations. The following words and terms used in this Tax Certificate have the following meanings: "Adjusted Gross Proceeds" means the Gross Proceeds of the New Money Portion or the Refunding Portion, as applicable, reduced by amounts: (a) in a Bona Fide Debt Service Fund or a reasonably required reserve or replacement fund, (b) that as of the Issue Date are not expected to be Gross Proceeds, but which arise after the end of the applicable spending period, and ( c) representing grant repayments or sale or Investment proceeds of any purpose Investment. 1 "Annual Compliance Checklist" means a checklist for each of the Financed Improvements designed to measure compliance with the requirements of this Tax Certificate and the Tax Compliance Procedure after the Issue Date, as further described in Section 4.02. "Available Construction Proceeds" means the sale proceeds of the New Money Portion, increased by (a) Investment earnings on the sale proceeds, (b) earnings on amounts in a reasonably required reserve or replacement fund allocable to the New Money Portion but not funded from the Notes, and (c) earnings on such earnings, reduced by sale proceeds (1) in any reasonably required reserve fund or (2) used to pay issuance costs of the Notes. But Available Construction Proceeds do not include Investment earnings on amounts in a reasonably required reserve or replacement fund after the earlier of the second anniversary of the Issue Date or the date the Financed Improvements are substantially completed. "Bona Fide Debt Service Fund" means a fund, which may include Note proceeds, that: (a) is used primarily to achieve a proper matching of revenues with principal and interest payments within each Note Year; and (b) is depleted at least once each Note Year, except for a reasonable carryover amount not to exceed the greater of (1) the earnings on the fund for the immediately preceding Note Year, or (2) one- twelfth of the principal and interest payments on the Notes for the immediately preceding Note Year. "Bond Compliance Officer" means the Issuer's Director of Finance and Administration or other person named in the Tax Compliance Procedure. "Bond Counsel" means Gilmore & Bell, P.C., or another firm of nationally recognized bond counsel acceptable to the Issuer. "Code" means the Internal Revenue Code of 1986, as amended. "Computation Date" means December 1, 2018, the date the last Note is discharged, but the Issuer reserves the right to select a different date consistent with the Regulations. "Final Written Allocation" means the Final Written Allocation of expenditures prepared by the Bond Compliance Officer in accordance with the Tax Compliance Procedure and Section 4.02(b) of this Tax Certificate, a sample form of which is attached to this Tax Certificate as Exhibit E. "Financed Improvements" means the portion of the Improvements being financed or refinanced with the proceeds of the Notes and the Original Obligations, as described in the Note Resolution and on ExhibitD. "Gross Proceeds" means (a) sale proceeds (any amounts actually or constructively received by the Issuer from the sale of the Notes, including amounts used to pay underwriting discount or fees, but excluding pre-issuance accrued.interest), (b) Investment proceeds (any amounts received from investing sale proceeds, other Investment proceeds or transferred proceeds), (c) any amounts held in a sinking fund for the Notes, (d) any amounts held in a pledged fund or reserve fund for the Notes, (e) any other replacement proceeds and (f) any transferred proceeds. Specifically, the term Gross Proceeds includes (but is not limited to) amounts held in the following funds and accounts: (1) Improvement Fund; (2) Debt Service Account;. (3) Rebate Fund (to the extent funded with sale proceeds or Investment proceeds of the Notes. 2 "Guaranteed Investment Contract" is any Investment with specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate, including any agreement to supply Investments on two or more future dates (e.g., a forward supply contract). "Improvements" means all of the property being acquired, developed, constructed, renovated, and equipped by the Issuer using proceeds of the Notes or the Original Obligations and other money contributed by the Issuer, as described on Exhibit D. "Investment" means any security, obligation, annuity contract or other investment-type property that is purchased directly with, or otherwise allocated to, Gross Proceeds. This term does not include a tax- exempt bond, except for "specified private activity bonds" as defined in Code § 57(a)(5)(C), but does include the investment element of most interest rate caps. "IRS" means the United States Internal Revenue Service. "Issue Date" means July 30, 2018. "Issuer" means the City of Salina, Kansas, and its successors and assigns, or any body, agency or instrumentality of the State succeeding to or charged with the powers, duties and functions of the Issuer. "Management Agreement" means a legal agreement defined in Regulations § l.141-3(b) as a management, service, or incentive payment contract with an entity that provides services involving all or a portion of any function of the Financed Improvements, such as a contract to manage the entire Financed Improvements or a portion of the Financed Improvements. However, contracts for services that are solely incidental to the primary governmental function of the Financed Improvements (for example, contracts for janitorial, office equipment repair, billing, or similar services) are not treated as Management Agreements. "Measurement Period" means, with respect to each item of property financed as part of the Financed Improvements with proceeds of the New Money Portion, the period beginning on the later of (a) the Issue Date or (b) the date the property is placed in service and ending on the earlier of (1) the final maturity date of the Notes or (2) the end of the expected economic useful life of the property. For each item of property financed as part of the Financed Improvements with proceeds of the Original Obligations, "measurement period" means the period beginning on the later of (i) the respective issue date of the Original Obligations or (ii) the date the property was or will be placed in service, and ending on the earlier of (A) the final maturity date of the Notes or (B) the end of the expected economic useful life of the property. "Minor Portion" means the lesser of $100,000 or 5% of the sale proceeds of the Notes. "Net Proceeds" means, when used in reference to the Notes or the New Money Portion, the sale proceeds of the Notes (excluding pre-issuance accrued interest), less an allocable share of any proceeds deposited in a reasonably required reserve or replacement fund, plus an allocable share of all Investment earnings on such sale proceeds. "New Money Portion" means the sale proceeds of the Notes identified in Section 3.06, together with the remaining Gross Proceeds of the Notes properly allocable to financing the Improvements. "Non-Qualified Use" means use of Note proceeds or the Financed Improvements in a trade or business carried on by any Non-Qualified User. The rules set out in Regulations § 1.141-3 determine whether Note proceeds or the Financed Improvements are ''used" in a trade or business. Generally, 3 ownership, a lease, or any other use that grants a Non-Qualified User a special legal right or entitlement with respect to the Financed Improvements, will constitute use under Regulations§ 1.141-3. "Non-Qualified User" means any person or entity other than a Qualified User. "Note" or "Notes" means any note or notes of the Issuer's General Obligation Temporary Notes, Series 2018-1, described in the recitals, authenticated and delivered under the Note Resolution. "Note Purchase Agreement" means the Note Purchase Agreement dated as of July 9, 2018, between the Issuer and the Purchaser. "Note Resolution" means Resolution No. 18-7563 of the Issuer duly adopted by the governing body of the Issuer on July 9, 2018, as originally executed by the Issuer as amended and supplemented in accordance with the provisions of the Note Resolution. "Note Year" means each one-year period (or shorter period for the first Note Year) ending December 1, or another one-year period selected by the Issuer. "Opinion of Bond Counsel" means the written opinion of Bond Counsel to the effect that the proposed action or the failure to act will not adversely affect the exclusion of the interest on the Notes from gross income for federal income tax purposes. "Original Obligations" means the Series 2017-1 Notes, issued on July 27, 2017, which was the initial issue of tax-exempt governmental obligations that financed or refinanced a portion of the Financed Improvements. "Post-Issuance Tax Requirements" means those requirements related to the use of proceeds of the Notes, the use of the Financed Improvements and the investment of Gross Proceeds that apply after the Issue Date of the Notes. "Purchaser" means The Bennington State Bank, Salina, Kansas, the original purchaser of the Notes, and any successor and assigns. "Qualified Equity" means funds that are not derived from proceeds of a tax-exempt financing that are spent on the Improvements at any time during the period beginning not earlier than the later of (a) 60 days prior to the Official Intent Date or (b) three years prior to the Issue Date, and ending not later than the date the Improvements is capable of and actually used at substantially its designed level. Qualified Equity excludes an ownership interest in real property or tangible personal property. "Qualified Use Agreement" means any of the following: (a) A lease or other short-term use by members of the general public who occupy the Financed Improvements on a short-term basis in the ordinary course of the Issuer's governmental purposes. (b) Agreements with Qualified Users or Non-Qualified Users to use all or a portion of the Financed Improvements for a period up to 200 days in length pursuant to an arrangement whereby (1) the use of the Financed Improvements under the same or similar arrangements is predominantly by natural persons who are not engaged in a trade or business and (2) the compensation for the use is determined based on generally applicable, fair market value rates that are in effect at the time the agreement is entered into or renewed. Any Qualified User or Non-Qualified User using all or any portion of the Financed 4 Improvements under this type of arrangement may have a right of first refusal to renew the agreement at rates generally in effect at the time of the renewal. (c) Agreements with Qualified Users or Non-Qualified Users to use all or a portion of the Financed Improvements for a period up to 100 days in length pursuant to arrangements whereby (1) the use of the property by the person would be general public use but for the fact that generally applicable and uniformly applied rates are not reasonably available to natural persons not engaged in a trade or business, (2) the compensation for the use under the arrangement is determined based on applicable, fair market value rates that are in effect at the time the agreement is entered into or renewed, and (3) the Financed Improvements was not constructed for a principal purpose of providing the property for use by that Qualified User or Non-Qualified User. Any Qualified User or Non-Qualified User using all or any portion of the Financed Improvements under this type of arrangement may have a right of first refusal to renew the agreement at rates generally in effect at the time of the renewal. (d) Agreements with Qualified Users or Non-Qualified Users to use all or a portion of the Financed Improvements for a period up to 50 days in length pursuant to a negotiated arm's-length arrangement at fair market value so long as the Financed Improvements was not constructed for a principal purpose of providing the property for use by that person. "Qualified User" means a state, territory, possession of the United States, the District of Columbia, or any political subdivision thereof, or any instrumentality of such entity, but it does not include the United States or any agency or instrumentality of the United States. "Reasonable Retainage" means Gross Proceeds retained by the Issuer for reasonable business purposes, such as to ensure or promote compliance with a construction contract; provided that such amount may not exceed (a) for purposes of the 18-month spending test, 5% of net sale proceeds of the New Money Portion on the date 18 months after the Issue Date, or (b) for purposes of the 2-year spending test, 5% of the Available Construction Proceeds as of the end of the 2-year spending period. "Rebate Analyst" means Gilmore & Bell, P.C. or any successor rebate analyst selected pursuant to this Tax Certificate. "Refunded Notes" means that portion of the Series 2017-1 Notes refunded by the Notes. "Refunding Portion" means the sale proceeds of the Notes identified in Section 3.06, together with the remaining Gross Proceeds of the Notes properly allocable to the refunding of the Refunded Notes. "Regulations" means all Regulations issued by the U.S. Treasury Department to implement the provisions of Code§§ 103 and 141 through 150 and applicable to the Notes. "Series 2017-1 Notes" means the Issuer's General Obligation Temporary Notes, Series 2017-1, dated July 27, 2017. "State" means the State of Kansas. "Tax Certificate" means this Federal Tax Certificate as it may from time to time be amended and supplemented in accordance with its terms. 5 "Tax Compliance Procedure" means the Issuer's Tax and Securities Compliance Policy and Procedure, dated June 11, 2012, as amended and supplemented in accordance with the terms of the Tax Compliance Procedure. "Tax-Exempt Bond File" means documents and records for the Notes and the Original Obligations, maintained by the Bond Compliance Officer pursuant to the Tax Compliance Procedure. "Transcript" means the Transcript of Proceedings relating to the authorization and issuance of the Notes. "Yield" means yield on the Notes, computed under Regulations § 1.148-4, and yield on an Investment, computed under Regulations § 1.148-5. ARTICLE II GENERAL REPRESENTATIONS AND COVENANTS Section 2.01 Representations and Covenants of the Issuer. The Issuer represents and covenants as follows: (a) Organization and Authority. The Issuer: (1) is a city of the first class, duly created, organized and existing under the Constitution and laws of the State; (2) has lawful power and authority to issue the Notes for the purposes set forth in the Note Resolution, to enter into, execute and deliver the Note Resolution, the Notes; and this Tax Certificate and to carry out its obligations under this Tax Certificate and under such documents; and (3) by all necessary action has been duly authorized to execute and deliver the Note Resolution, the Notes, and this Tax Certificate, acting by and through its duly authorized officials. (b) Tax-Exempt Status of Notes-General Covenant and Allocation of Proceeds to Project. (1) The Issuer (to the extent within its power or direction) will not use any money on deposit in any fund or account maintained in connection with the Notes, whether or not such money was derived from the proceeds of the sale of the Notes or from any other source, in a manner that would cause the Notes to be "arbitrage bonds," within the meaning of Code§ 148, and will not (to the extent within its power or direction) otherwise use or permit the use of any Note proceeds or any other funds of the Issuer, directly or indirectly, in any manner, or take or permit to be taken any other action or actions, that would cause interest on the Notes to be included in gross income for federal income tax purposes. (2) The Issuer will account for the expenditure of the New Money Portion and Qualified Equity for the Financed Improvements as described in Section 4.02. For purposes of the following covenants related to the use of the Financed Improvements, any Non-Qualified Use shall be treated as first allocated entirely to the portion of the Financed Improvements financed with Qualified Equity. The Issuer has and will account for the expenditure of the Refunding Portion and Qualified Equity for the Financed Improvements as described in Section 4.02. For purposes of the following covenants related to the use of the Financed Improvements, any Non-Qualified Use shall be treated as first allocated entirely to the portion of the Financed Improvements financed with Qualified Equity. (c) Govemmental Obligations-Use of Proceeds. Throughout the Measurement Period: (1) all of the Financed Improvements have been and are expected to be owned by the Issuer or another Qualified User; (2) no portion of the Financed Improvements has been or is expected to be used in a Non-Qualified 6 Use; and (3) the Issuer will not permit any Non-Qualified Use of the Financed Improvements without first consulting with Bond Counsel. The Issuer will monitor the usage of all portions of the Financed Improvements during the Measurement Period and will take any action or refrain from any action (which may include "remedial action" in accordance with Regulations § 1.141-12, which could involve redemption or defeasance of all or a portion of the Notes), as specified in an Opinion of Bond Counsel, as necessary to maintain the exclusion of the interest on the Notes from gross income for federal income tax purposes. ( d) Governmental Obligations-Private Security or Payment. As of the Issue Date, the Issuer expects that none of the principal of and interest on the Notes will be, and none of the principal of and interest on the Refunded Notes and on all other obligations which directly or indirectly refinanced the Original Obligations has been, (under the terms of the Notes or any underlying arrangement) directly or indirectly: (1) secured by (i) any interest in property used or to be used for a Non-Qualified Use, or (ii) any interest in payments in respect of such property; or (2) derived from payments (whether or not such payments are made to the Issuer) in respect of property, or borrowed money, used or to be used for a Non-Qualified Use. For purposes of the foregoing, taxes of general application, including payments in lieu of taxes, are not treated as private payments or as private security. The Issuer will not permit any private security or payment with respect to the Notes without first consulting with Bond Counsel. ( e) No Private Loan, Special Assessments. Not more than 5% of the net proceeds of the Notes will be loaned directly or indirectly to any Non-Qualified User. The payment of principal of and interest on the Notes will be funded, and the payment of principal of and interest on the Original Obligations has been funded, in whole or in part from mandatory special assessments against the property benefiting from certain of the Financed Improvements. The use of the proceeds of the Notes and the Original Obligations for this purpose is not treated as a "loan" under Code § 141(c), because: (1) the special assessments are enforced contributions for the purpose of raising revenue for specific capital improvements; (2) the assessments do not include any fee for services; (3) the imposition and collection of the assessments is not dependent upon, and does not vary depending on, whether the taxpayer is engaged, or the property is used, in a trade or business; ( 4) the assessments are imposed to pay for an essential governmental function; and (5) the terms of payment of the assessments are the same for all owners of property benefitting from the Improvements on which the assessments are imposed. (t) Management Agreements. As of the Issue Date, the Issuer has no Management Agreements with Non-Qualified Users. During the Measurement Period, the Issuer will not enter into or renew any Management Agreement with any Non-Qualified User without first consulting with Bond Counsel. (g) Leases. As of the Issue Date, the Issuer has not entered into any leases of any portion of the Financed Improvements other than Qualified Use Agreements. During the Measurement Period, the Issuer will not enter into or renew any lease or similar agreement or arrangement other than a Qualified Use Agreement without first consulting with Bond Counsel. (h) Limit on Maturity of Notes. A list of the assets included in the Financed Improvements and a computation of the "average reasonably expected economic life" is attached to this Tax Certificate as Exhibit D. Based on this computation, the "average maturity" of the Notes is 0.3361 years, as computed by Bond Counsel and shown on Schedule 1, does not exceed 120% of the average reasonably expected economic life of the Financed Improvements. · 7 (i) Expenditure of Note Proceeds; Reimbursement of Expenditures; Official Intent. (1) The Issuer will evidence each allocation of the proceeds of the Notes and Qualified Equity for the Financed Improvements to an expenditure in writing. No allocation will be made more than 18 months following the later of (i) the date of the expenditure or (ii) the date the Financed Improvements were placed in service. (2) The governing body of the Issuer has adopted resolutions declaring the intent of the Issuer to finance the Financed Improvements with tax-exempt obligations and to reimburse the Issuer for expenditures made for the Finapced Improvements prior to the issuance of those obligations. The resolutions are contained in Tabs 1 to 4, inclusive, of the Transcript. The Issuer expects to reimburse from Note proceeds for expenditures made for the Improvements prior to the Issue Date, as shown on Exhibit D attached to this Tax Certificate. No portion of the Net Proceeds of the Notes may be used to reimburse an expenditure paid by the Issuer more than 60 days prior to the date the respective resolution referenced herein was adopted. No reimbursement allocation will be made for an expenditure paid more than 3 years before the date of the reimbursement allocation. No reimbursement allocation will be made more than 18 months following the later of the date of the expenditure or the date that portion of the Financed Improvements is placed in service. G) Registered Notes. The Note Resolution requires that all of the Notes will be issued and held in registered form within the meaning of Code§ 149(a) . . (k) Notes Not Federally Guaranteed. The Issuer will not take any action or permit any action to be taken which would cause any Note to be "federally guaranteed" within the meaning of Code § 149(b ). (1) IRS Form 8038-G. Bond Counsel will prepare IRS Form 8038-G (Information Return for Tax-Exempt Governmental Obligations) based on the representations and covenants of the Issuer contained in this Tax Certificate or otherwise provided by the Issuer. Bond Counsel will sign the return as a paid preparer following completion and will then deliver copies to the Issuer for execution and for the Issuer's records. The Issuer agrees to timely execute and return to Bond Counsel the execution copy of Form 8038- G for filing with the IRS. A copy of the IRS Form 8038-G as filed with the IRS, with proof of filing, will be included in Exhibit A of Tax Certificate. (m) No Hedge Bonds. At least 85% of the net sale proceeds (the sale proceeds less any sale proceeds invested in a reserve fund) of the New Money Portion will be used to carry out the governmental purpose of the New Money Portion within three years after the Issue Date, and not more than 50% of the proceeds of the New Money Portion will be invested in Investments having a substantially guaranteed Yield for four years or more. At least 85% of the net sale proceeds (the sale proceeds less any sale proceeds invested in a reserve fund) of the Original Obligations were or will be used to carry out the governmental purpose of the Original Obligations within three years after the issue date of the Original Obligations, and not more than 50% of the proceeds of the Original Obligations were or will be invested in Investments having a substantially guaranteed Yield for four years or more. (n) Single Issue; No Other Issues. The Notes constitute a single "issue" under Regulations § 1.150-l(c). No other debt obligations of the Issuer (1) are being sold within 15 days of the sale of the Notes, (2) are being sold under the same plan of financing as the Notes, and (3) are expected to be paid from substantially the same source of funds as the Notes (disregarding guarantees from unrelated parties, such as bond insurance). 8 ( o) Interest Rate Swap. As of the Issue Date, the Issuer has not entered into an interest rate swap agreement or any other similar arrangement designed to modify its interest rate risk with respect to the Notes or the Refunded Notes. The Issuer will not enter into any such arrangement in the future without first consulting with Bond Counsel. (p) Guaranteed Investment Contract. As of the Issue Date, the Issuer does not expect to enter into a Guaranteed Investment Contract for any Gross Proceeds of the Notes. The Issuer will be responsible for complying with Section 4. 04(d) hereof if it decides to enter into a Guaranteed Investment Contract at a later date. (q) Bank Qualified Tax-Exempt Obligation. The Notes are not "qualified tax exempt obligations" under Code § 265(b )(3). (r) Compliance with Future Tax Requirements. The Issuer understands that the Code and the Regulations may impose new or different restrictions and requirements on the Issuer in the future. The Issuer will comply with such future restrictions that are necessary to maintain the exclusion of the interest on the Notes from gross income for federal income tax purposes. Section 2.02 Survival of Representations and Covenants. All representations, covenants and certifications contained in this Tax Certificate or in any certificate or other instrument delivered by the Issuer under this Tax Certificate, will survive the execution and delivery of such documents and the issuance of the Notes, as representations of facts existing as of the date of execution and delivery of the instruments containing such representations. The foregoing covenants of this Section will remain in full force and effect notwithstanding the defeasance of the Notes. ARTICLE III ARBITRAGE CERTIFICATIONS AND COVENANTS Section 3.01 General. The purpose of this Article is to certify, under Regulations § l. l 48-2(b ), the Issuer's expectations as to the sources, uses and investment of Note proceeds and other money, in order to support the Issuer's conclusion that the Notes are not arbitrage bonds. The person executing this Tax Certificate on behalf of the Issuer is an officer of the Issuer responsible for issuing the Notes. Section 3.02 Reasonable Expectations. The facts, estimates and expectations set forth in this Article are based upon and in reliance upon the Issuer's understanding of the documents and certificates that comprise the Transcript, and the representations, covenants and certifications of the parties contained therein. To the Issuer's knowledge, the facts and estimates set forth in this Tax Certificate are accurate, and the expectations of the Issuer set forth in this Tax Certificate are reasonable. The Issuer has no knowledge that would cause it to believe that the representations, warranties and certifications described in this Tax Certificate are unreasonable or inaccurate or may not be relied upon. Section 3.03 Purpose of Financing. The Notes are being issued for the purpose of providing funds to pay: (a) a portion of the costs of the Improvements; (b) a portion of the costs of refunding the Refunded Notes; and ( c) costs of issuance. Section 3.04 Funds and Accounts. The following funds and accounts have been established under the Note Resolution: 9 (a) Improvement Fund; (b) Debt Service Account; ( c) Rebate Fund. Section 3.05 Amount and Use of Note Proceeds. (a) Amount of Note Proceeds. The total proceeds to be received by the Issuer from the sale of the Notes are as evidenced in Exhibit B attached to this Tax Certificate. (b) Use of Note Proceeds. The Note proceeds are expected to be deposited in the Improvement Fund and allocated to expenditures as follows: (1) The sum of $17,725.00 of Note proceeds will be used to pay the costs of issuance of the Notes. (2) The sum of $2,067,608.17 of Note proceeds, together with $126,476.27 of unspent proceeds from the Series 2017-1 Notes and $30,000 of special assessment prepayments, for a total of $2,224,084.44 will be paid and transferred to the paying agent for the Refunded Notes, with irrevocable instructions to apply such amount to the payment of the Refunded Notes. (3) The balance of $3,914,666.83 of Note proceeds, plus investment earnings thereon, will be used to reimburse the Issuer for costs of the Financed Improvements paid prior to the Issue Date, and the balance will be used to pay the costs of the Financed Improvements. Section 3.06 Multipurpose Issue. Pursuant to Regulations § 1.148-9(h), the Issuer is applying the arbitrage rules to separate financing purposes of the issue that have the same initial temporary period as if they constitute a single issue for purposes of applying the arbitrage rules. Under Regulations § 1.148- 9(h), the Notes will be treated as two separate issues (a New Money Portion and a Refunding Portion) for purposes of applying certain of the arbitrage restrictions under Code§ 148. The sales proceeds of the Notes allocable to the New Money Portion is $3,914,666.83 and the sales proceeds of the Notes allocable to the Refunding Portion is $2,067,608.17. Section 3.07 Current Refunding. (a) Proceeds Used For Current Refunding. Proceeds of the Refunding Portion will be used to pay principal of and interest on the Refunded Notes. All such proceeds shall be spent not later than 90 days after the Issue Date. (b) Transferred Proceeds. As of the Issue Date, approximately $126,476.27 unspent proceeds of the Refunded Notes remains in the Improvement Fund for the Refunded Notes. Upon discharge of the Refunded Notes with proceeds of the Refunding Portion and other funds, a ratable portion of the remaining unspent proceeds of the Refunded Notes will become "transferred proceeds" of the Notes (determined in accordance Regulations § 1.148-9(b )). Section 3.08 Completion of Financed Improvements; New Money Portion. The Issuer has incurred, or will incur within six months after the Issue Date, a substantial binding obligation to a third party to spend at least 5% of the Net Proceeds of the New Money Portion on the Financed Improvements. The completion of the Financed Improvements and the allocation of the Net Proceeds of the New Money Portion to expenditures will proceed with due diligence. At least 85% of the Net Proceeds of the New 10 Money Portion will be allocated to expenditures on the Financed Improvements within three years after the Issue Date. Section 3.09 Sinking Funds. The Issuer is required to make periodic payments in amounts sufficient to pay the principal of and interest on the Notes. Such payments will be deposited into the Debt Service Account. Except for the Debt Service Account, no sinking fund or other similar fund that is expected to be used to pay principal of or interest on the Notes has been established or is expected to be established. The Debt Service Account is used primarily to achieve a proper matching of revenues with principal and interest payments on the Notes within each Note Year, and the Issuer expects that the Debt Service Account will qualify as a Bona Fide Debt Service Fund. Section 3.10 Reserve, Replacement and Pledged Funds. (a) No Reserve Fund. No reserve fund has been or will be established for the Notes. (b) No Replacement or Pledged Funds. None of the Note proceeds will be used as a substitute for other funds that were intended or earmarked to pay costs of the Financed Improvements or refund the Refunded Notes, and that instead has been or will be used to acquire higher yielding Investments. Except for the Debt Service Account, there are no other funds pledged or committed in a manner that provides a reasonable assurance that such funds would be available for payment of the principal of or interest on the Notes if the Issuer encounters financial difficulty. Section 3.11 Purpose Investment Yield. The proceeds of the Notes will not be used to purchase an Investment for the purpose of carrying out the governmental purpose of the financing. Section 3.12 Issue Price and Yield on Notes. (a) Issue Price. Based on the Purchaser's certifications set forth in the certificate attached hereto as Exhibit C, the Issuer hereby elects to establish the issue price of the Notes pursuant to Regulations § 1.148-1 (f)(2)(i) (relating to the so-called "private placement rule"). Therefore, the aggregate issue price of the Notes for such purpose is $6,000,000. (b) Note Yield. Based on the issue price, the Yield on the Notes is 1.9932%, as computed by Bond Counsel as shown on Schedule 1. The Issuer has not entered into an interest rate swap agreement with respect to any portion of the proceeds of the Notes. Section 3.13 Miscellaneous Arbitrage Matters. (a) No Abusive Arbitrage Device. The Notes are not and will not be part of a transaction or series of transactions that has the effect of ( 1) enabling the Issuer to exploit the difference between tax- exempt and taxable interest rates to gain a material financial advantage, and (2) overburdening the tax- exempt bond market. (b) No Over-Issuance. The sale proceeds of the Notes, together with expected Investment earnings thereon and other money contributed by the Issuer, do not exceed the cost of the governmental purpose of the Notes as described above. 11 Section 3.14 Conclusion. On the basis of the facts, estimates and circumstances set forth in this Tax Certificate, the Issuer does not expect that the Note proceeds will be used in a manner that would cause any Note to be an "arbitrage bond" within the meaning of Code§ 148 and the Regulations. ARTICLE IV POST-ISSUANCE TAX COMPLIANCE Section 4.01 General. (a) Purpose of Article. The purpose of this Article is to supplement the Tax Compliance Procedure and to set out specific policies and procedures governing compliance with the federal income tax requirements that apply after the Notes are issued. The Issuer recognizes that interest on the Notes will remain excludable from gross income only if the Post-Issuance Tax Requirements are followed after the Issue Date. The Issuer further acknowledges that written evidence substantiating compliance with the Post- Issuance Tax Requirements must be retained in order to permit the Notes to be refinanced with tax-exempt obligations and substantiate the position that interest on the Notes is exempt from gross income in the event of an audit of the Notes by the IRS. (b) Written Policies and Procedures of the Issuer. The Issuer intends for the Tax Compliance Procedure, as supplemented by this Tax Certificate, to be its primary written policies and procedures for I monitoring compliance with the Post-Issuance Tax Requirements for the Notes and to supplement any other formal policies and procedures related to the Post-Issuance Tax Requirements that the Issuer has established or establishes in the future. The provisions of this Tax Certificate are intended to be consistent with the Tax Compliance Procedure. In the event of any inconsistency between the Tax Compliance Procedure and this Tax Certificate, the terms of this Tax Certificate will govern. (c) Bond Compliance Officer. The Issuer when necessary to fulfill the Post-Issuance Tax Requirements will, through its Bond Compliance Officer, sign Form 8038-T in connection with the payment of arbitrage rebate or yield reduction payments, participate in any federal income tax audit of the Notes or related proceedings under a voluntary compliance agreement procedures (VCAP) or undertake a remedial action procedure pursuant to Regulations § 1.141-12. In each case, all costs and expenses incurred by the Issuer shall be treated as a reasonable cost of administering the Notes and the Issuer shall be entitled to reimbursement and recovery of its costs to the same extent as provided in the Note Resolution or State law. Section 4.02 Record Keeping; Use of Note Proceeds and Use of Financed Improvements. (a) Record Keeping. The Bond Compliance Officer will maintain the Tax-Exempt Bond File for the Notes in accordance with the Tax Compliance Procedure. Unless otherwise specifically instructed in a written Opinion of Bond Counsel or to the extent otherwise provided in this Tax Certificate, the Bond Compliance Officer shall retain records related to the Post-Issuance Tax Requirements until 3 years following the final maturity of (1) the Notes or (2) any obligation issued to refund the Notes. Any records maintained electronically must comply with Section 4.01 of Revenue Procedure 97-22, which generally provides that an electronic storage system must (A) ensure an accurate and complete transfer of the hardcopy records which indexes, stores, preserves, retrieves and reproduces the electronic records, (B) include reasonable controls to ensure integrity, accuracy and reliability of the electronic storage system and to prevent unauthorized alteration or deterioration of electronic records, (C) exhibit a high degree of legibility and readability both electronically and in hardcopy, (D) provide support for other books and records of the Issuer and (E) not be subject to any agreement that would limit the ability of the IRS to access and use the electronic storage system on the Issuer's premises. 12 (b) Accounting and Allocation of Note Proceeds and Qualified Equity to Expenditures. The Bond Compliance Officer will account for the investment and expenditure of Note proceeds in the level of detail required by the Tax Compliance Procedure. The expected allocation of the proceeds of the Notes and Qualified Equity to expenditures for the Improvements is set forth on Exhibit D. Upon completion of the Improvements and in connection with any long-term financing for the Improvements, the Bond Compliance Officer will supplement this expected allocation with a Final Written Allocation, as required by the Tax Compliance Procedure. A sample form of Final Written Allocation is attached as Exhibit E. ( c) Annual Compliance Checklist. After completion of the Improvements and in connection with any long-term financing for the Improvements, the Bond Compliance Officer will prepare and complete an Annual Compliance Checklist at least annually, in accordance with the Tax Compliance Procedure. (d) Opinions of Bond Counsel. The Bond Compliance Officer is responsible for obtaining and delivering to the Issuer any advice or Opinion of Bond Counsel required under the provisions of this Tax Certificate or the Tax Compliance Procedure. Section 4.03 Restrictions on Investment Yield. Except as described below, Gross Proceeds must not be invested at a Yield greater than the Yield on the Notes: (a) Improvement Fund. Note proceeds deposited in the Improvement Fund allocable to financing the New Money Portion and investment earnings on such proceeds may be invested without Yield restriction for up to three years following the Issue Date. If any such unspent proceeds remain in the Improvement Fund after three years, those amounts may continue to be invested without Yield restriction so long as the Issuer pays to the IRS all Yield reduction payments in accordance with Regulations § 1.148- 5( c ), regardless of whether the Notes are exempt from the arbitrage rebate requirements of Code § 148. Note proceeds deposited in the Improvement Fund allocable to the Refunding Portion and Investment earnings on such proceeds may be invested without Yield restriction for 90 days after the Issue Date. (b) Debt Service Account. To the extent that the Debt Service Account qualifies as a Bona Fide Debt Service Fund, money in such account may be invested without Yield restriction for 13 months after the date of deposit. Earnings on such amounts may be invested without Yield restriction for one year after the date of receipt of such earnings. ( c) Rebate Fund. Money, other than sale proceeds or Investment proceeds, on deposit in the Rebate Fund may be invested without Yield restriction. (d) Minor Portion. In addition to the amounts described above, Gross Proceeds not exceeding the Minor Portion may be invested without Yield restriction. (e) Unexpended Proceeds of the Original Obligations. Unexpended proceeds from the Refunded Notes not utilized to retire the Refunded Notes may continue to be invested in accordance with the federal tax certificate for the Refunded Notes. 13 Section 4.04 Procedures for Establishing Fair Market Value of Investments. (a) General. No Investment may be acquired with Gross Proceeds for an amount (including transaction costs) in excess of the fair market value of such Investment, or sold or otherwise disposed of for an amount (including transaction costs) less than the fair market value of the Investment. The fair market value of any Investment is the price a willing buyer would pay to a willing seller to acquire the Investment in a bona fide, arm's-length transaction. Fair market value will be determined in accordance with Regulations § 1.148-5. . (b) Established Securities Market. Except for Investments purchased for a yield-restricted defeasance escrow, if an Investment is purchased or sold in an arm's-length transaction on an established securities market (within the meaning of Code § 1273), the purchase or sale price constitutes the fair market value. Where there is no established securities market for an Investment, market value must be established using one of the paragraphs below. The fair market value of Investments purchased for a Yield-restricted defeasance escrow must be determined in a bona fide solicitation for bids that complies with Regulations § 1.148-5. (c) Certificates of Deposit. The purchase price of a certificate of deposit (a "CD") is treated as its fair market value on the purchase date if ( 1) the CD has a fixed interest rate, a fixed payment schedule, and a substantial penalty for early withdrawal, (2) the Yield on the CD is not less than the Yield on reasonably comparable direct obligations of the United States, and (3) the Yield is not less than the highest Yield published or posted by the CD issuer to be currently available on reasonably comparable CDs offered to the public. (d) Guaranteed Investment Contracts. The Issuer is applying Regulations § l.148- 5(d)(6)(iii)(A) to the Notes. The purchase price of a Guaranteed Investment Contract is treated as its fair market value on the purchase date if all of the following requirements are met: (1) Bona Fide Solicitation for Bids. The Issuer makes a bona fide solicitation for the Guaranteed Investment Contract, using the following procedures: (A) The bid specifications are in writing and are timely forwarded to potential providers, or are made available on an internet website or other similar electronic media that is regularly used to post bid specifications to potential bidders. A writing includes a hard copy, a fax, or an electronic e-mail copy. (B) The bid specifications include all "material" terms of the bid. A term is material if it may directly or indirectly affect the yield or the cost of the Guaranteed Investment Contract. (C) The bid specifications include a statement notifying potential providers that submission of a bid is a representation (i) that the potential provider did not consult with any other potential provider about its bid, (ii) that the bid was determined without regard to any other formal or informal agreement that the potential provider has with the Issuer, or any other person (whether. or not in connection with the Notes), and (iii) that the bid is not being submitted solely as a courtesy to the Issuer, or any other person, for purposes of satisfying the requirements of the Regulations. (D) The terms of the bid specifications are "commercially reasonable." A term is commercially reasonable if there is a legitimate business purpose for the term other than to increase the purchase price or reduce the yield of the Guaranteed Investment Contract. 14 (E) The terms of the solicitation take into account the Issuer's reasonably expected deposit and draw-down schedule for the amounts to be invested. (F) All potential providers have an equal opportunity to bid. If the bidding process affords any opportunity for a potential provider to review other bids before providing a bid, then providers have an equal opportunity to bid only if all potential providers have an equal opportunity to review other bids. Thus, no potential provider may be given an opportunity to review other bids that is not equally given to all potential providers (that is no exclusive "last look"). (G) At least three "reasonably competitive providers" are solicited for bids. A reasonably competitive provider is a provider that has an established industry reputation as a competitive provider of the type of investments being purchased. (2) Bids Received. The bids received by the Issuer must meet all of the following requirements: (A) The Issuer receives at least three bids from providers that were solicited as described above and that do not have a "material financial interest" in the issue. For this purpose, (i) a lead underwriter in a negotiated underwriting transaction is deemed to have a material financial interest in the issue until 15 days after the issue date of the issue, (ii) any entity acting as a financial advisor with respect to the purchase of the Guaranteed Investment Contract at the time the bid specifications are forwarded to potential providers has a material financial interest in the issue, and (iii) a provider that is a related party to a provider that has a material financial interest in the issue is deemed to have a material financial interest in the issue. (B) At least one of the three bids received is from a reasonably competitive provider, as defined above. (C) If the Issuer uses an agent or broker to conduct the bidding process, the agent or broker did not bid to provide the Guaranteed Investment Contract. (3) Winning Bid. The winning bid is the highest yielding bona fide bid (determined net of any broker's fees). (4) Fees Paid. The obligor on the Guaranteed Investment Contract certifies the administrative costs that it pays (or expects to pay, if any) to third parties in connection with supplying the Guaranteed Investment Contract. (5) Records. The Issuer retains the following records with the note documents until three years after the last outstanding Note is redeemed: (A) A copy of the Guaranteed Investment Contract. (B) The receipt or other record of the amount actually paid by the Issuer for the Guaranteed Investment Contract, including a record of any administrative costs paid by the Issuer, and the certification as to fees paid, described in paragraph (d)(4) above. 15 (C) For each bid that is submitted, the name of the person and entity submitting the bid, the time and date of the bid, and the bid results. (D) The bid solicitation form and, if the terms of the Guaranteed Investment Contract deviated from the bid solicitation form or a submitted bid is modified, a brief statement explaining the deviation and stating the purpose for the deviation. (e) Other Investments. If an Investment is not described above, the fair market value may be established through a competitive bidding process, as follows: (1) At least three bids on the Investment must be received from persons with no financial interest in the Notes (e.g., as underwriters or brokers); and (2) the Yield on the Investment must be equal to or greater than the Yield offered under the highest bid. Section 4.05 Certain Gross Proceeds Exempt from the Rebate Requirement. (a) General. A portion of the Gross Proceeds of the Notes may be exempt from rebate pursuant to one or more of the following exceptions. The exceptions typically will not apply with respect to all Gross Proceeds of the Notes and will not otherwise affect the application of the Investment limitations described in Section 4.03. Unless specifically noted, the obligation to compute, and if necessary, to pay rebate as set forth in Section 4.06 applies even if a portion of the Gross Proceeds of the Notes is exempt from the rebate requirement. To the extent all or a portion of the Notes is exempt from rebate, the Rebate Analyst may account for such fact in connection with its preparation of a rebate report described in Section 4.06. The Issuer may defer the final rebate Computation Date and the payment of rebate for the Notes to the extent permitted by Regulations§§ l.148-7(b)(l) and l.148-3(e)(2) but only in accordance with specific written instructions provided by the Rebate Analyst. (b) Applicable Spending Exceptions. (1) The Issuer expects that at least 75% of the Available Construction Proceeds will be used for construction or rehabilitation expenditures for property owned by the Issuer. (2) The following optional rebate spending exceptions can apply separately to the New Money Portion, the Refunding Portion and the transferred proceeds of the Original Obligations: New Money Portion: (A) 6-month spending exception (Code § 148(f)(4)(B) and Regulations § l.148-7(c)). (B) (C) 7(e)). 18-month spending exception (Regulations§ l.148-7(d)). 2-year spending exception (Code§ 148(f)(4)(C) and Regulations§ 1.148- Refunding Portion: 6-month spending exception (Code § 148(f)(4)(B) and Regulations§ 1.148-7(c)). Transferred proceeds of the Original Obligations: 6, 18, or 24-month spending exception (Regulations § 1.148-7(b)(1 )(i) ), in accordance with the applicable federal tax certificate for the Original Obligations. 16 (c) Special Elections Made with Respect to Spending Exception Elections. No special elections are being made in connection with the application of the spending exceptions. ( d) Bona Fide Debt Service Fund. To the extent that the Debt Service Account qualifies as a Bona Fide Debt Service Fund, Investment earnings in the Debt Service Account cannot be taken into account in computing arbitrage rebate: (1) with respect to such portion that meets the 6-month, 18-month or 2-year spending exception from rebate described above; or (2) for a given Note Year, if the gross earnings on the Debt Service Account for such Note Year are less than $100,000 (if the average annual debt service on the Notes does not exceed $2,500,000, the $100,000 earnings test may be treated as satisfied in every Note Year). ( e) Documentbtg Application of Spending Exception. At any time prior to the first Computation Date, the Issuer may engage the Rebate Analyst to determine whether one or more spending exceptions has been satisfied, and the extent to which the Issuer must continue to comply with Section 4. 06. (f) General Requirements for Spending Exception. The following general requirements apply in determining whether a spending exception is met: (1) Using Adjusted Gross Proceeds or Available Construction Proceeds to pay principal of any Notes is not taken into account as an expenditure for purposes of meeting any of the spending tests. (2) The six-month spending exception generally is met if all Adjusted Gross Proceeds of the New Money Portion or the Refunding Portion, as applicable, are spent within six months following the Issue Date. The test may still be satisfied even ifup to 5% of the sale proceeds remain at the end of the initial six-month period, so long as this amount is spent within one year of the Issue Date. (3) The 18-month spending exception generally is met if all Adjusted Gross Proceeds of the New Money Portion are spent in accordance with the following schedule: Time Period After the Issue Date 6 months 12 months 18 months (Final) Minimum Percentage of Adjusted Gross Proceeds Spent 15% 60% 100% (4) The 2-year spending exception generally is met if all Available Construction Proceeds are spent in accordance with the following schedule: Time Period After the Issue Date 6 months 12 months 18 months 24 months (Final) Minimum Percentage of Available Construction Proceeds Spent 17 10% 45% 75% 100% (5) For purposes of applying the 18-month and 2 year spending exceptions only, the failure to satisfy the final spending requirement is disregarded if the Issuer uses due diligence to complete the Financed Improvements and the failure does not exceed the lesser of 3% of the aggregate issue price the New Money Portion or $250,000. (6) For purposes of applying the 18-month and 2-year spending exceptions only, the Notes meet the applicable spending test even if, at the end of the final spending period, proceeds not exceeding a Reasonable Retainage remain unspent, so long as such Reasonable Retainage is spent within 30 months after the Issue Date in the case of the 18-month exception or 3 years after the Issue Date in the case of the 2-year spending exception. (7) Spending exceptions may be applied separately to the New Money Portion, the Refunding Portion, and the transferred proceeds of the Original Obligations. Section 4.06 Computation and Payment of Arbitrage Rebate and Yield Reduction Amounts. (a) Rebate Fund. The Issuer will keep the Rebate Fund separate from all other funds and will administer the Rebate Fund under this Tax Certificate. Any Investment earnings derived from the Rebate Fund will be credited to the Rebate Fund, and any Investment loss will be charged to the Rebate Fund. (b) Computation of Rebate Amount. The Issuer will provide the Rebate Analyst Investment reports relating to each fund held by it that contains Gross Proceeds of the Notes together with copies of Investment reports for any funds containing Gross Proceeds that are held by a party other than the Issuer annually as of the end of each Note Year and not later than ten days following each Computation Date. Each Investment report provided to the Rebate Analyst will contain a record of each Investment, including (1) purchase date, (2) purchase price, (3) information establishing the fair market value on the date such Investment was allocated to the Notes, (4) any accrued interest paid, (5) face amount, (6) coupon rate, (7) frequency of interest payments, (8) disposition price, (9) any accrued interest received, and (10) disposition date. Such records may be supplied in electronic form. The Rebate Analyst will compute rebate following each Computation Date and deliver a written report to the Issuer together with an opinion or certificate of the Rebate Analyst stating that arbitrage rebate and yield reduction amounts were determined in accordance with the Regulations. Each report and opinion will be provided not later than 45 days following the Computation Date to which it relates. In performing its duties, the Rebate Analyst may rely, in its discretion, on the correctness of financial analysis reports prepared by other professionals. (c) Rebate Payments. Within 60 days after each Computation Date, the Issuer will pay to the United States the rebate and yield reduction amount then due, determined in accordance with the Regulations. Each payment must be (1) accompanied by IRS Form 8038-T and such other forms, documents or certificates as may be required by the Regulations, and (2) mailed or delivered to the IRS at the address shown below, or to such other location as the IRS may direct: · Internal Revenue Service Center Ogden, UT 84201 (d) Successor Rebate Analyst. If the firm acting as the Rebate Analyst resigns or becomes incapable of acting for any reason, or if the Issuer desires that a different firm act as the Rebate Analyst, then the Issuer by an instrument or concurrent instruments in writing delivered to the firm then serving as the Rebate Analyst and any other party to this Tax Certificate, will name a successor Rebate Analyst. In each case the successor Rebate Analyst must be a firm of nationally recognized bond counsel or a firm of 18 independent certified public accountants and such firm must expressly agree to undertake the responsibilities assigned to the Rebate Analyst hereunder. (e) Filing Requirements. The Issuer will file or cause to be filed with the IRS such reports or other documents as are required by the Code in accordance with advice of Bond Counsel. (f) Survival after Defeasance. Notwithstanding anything in the Note Resolution to the contrary, the obligation to pay arbitrage rebate and yield reduction amounts to the United States will survive the payment or defeasance of the Notes. ARTICLEV MISCELLANEOUS PROVISIONS Section 5.01 Term of Tax Certificate. This Tax Certificate will be effective concurrently with the issuance and delivery of the Notes and will continue in force and effect until the principal of, redemption premium, if any, and interest on all Notes have been fully paid and all such Notes are cancelled; provided that the provisions of Section 4.06 of this Tax Certificate regarding payment of arbitrage rebate and yield reduction amounts and all related penalties and interest will remain in effect until all such amounts are paid to the United States and the provisions in Section 4.02 relating to record keeping shall continue in force for the period described therein for records to be retained. Section 5.02 Amendments. This Tax Certificate may be amended from time to time by the Issuer without notice to or the consent of any of the Note owners, but only if such amendment is in writing and is accompanied by an Opinion of Bond Counsel to the effect that, under then-existing law, assuming compliance with this Tax Certificate as so amended and the Note Resolution, such amendment will not cause interest on any Note to be included in gross income for federal income tax purposes. No amendment will become effective until the Issuer receives an Opinion of Bond Counsel, addressed to the Issuer that the amendment will not adversely affect the exclusion of the interest on the Notes from gross income for federal income tax purposes. Section 5.03 Opinion of Bond Counsel. The Issuer may. deviate from the provisions of this Tax Certificate if furnished with an Opinion of Bond Counsel to the effect that the proposed deviation will not adversely affect the exclusion of interest on the Notes from gross income for federal income tax purposes. The Issuer further agrees to comply with any further or different instructions provided in an Opinion of Bond Counsel to the effect that the further or different instructions need to be complied with in order to maintain the validity of the Notes or the exclusion from gross income of interest on the Notes. Section 5.04 Reliance. In delivering this Tax Certificate the Issuer is making only those certifications, representations and agreements as are specifically attributed to it in this Tax Certificate. The Issuer is not aware of any facts or circumstances which would cause it to question the accuracy of the facts, circumstances, estimates or expectations of any other party providing certifications as part of this Tax Certificate and, to the best of its knowledge, those facts, circumstances, estimates and expectations are reasonable. The Issuer understands that its certifications will be relied upon by Bond Counsel in rendering its opinion as to the validity of the Notes and the exclusion from federal gross income of the interest on the Notes. 19 Section 5.05 Severability. If any provision in this Tax Certificate or in the Notes is determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions will not be affected or impaired. Section 5.06 Benefit of Certificate. This Tax Certificate is binding upon the Issuer, its respective successors and assigns, and inures to the benefit of the Issuer and the owners of the Notes. Nothing in this Tax Certificate, the Note Resolution or the Notes, express or implied, gives to any person, other than the Issuer, its successors and assigns, and the owners of the Notes, any benefit or any legal or equitable right, remedy or claim under this Tax Certificate. Section 5.07 Default; Breach and Enforcement. Any misrepresentation of a party contained herein or any breach of a covenant or agreement contained in this Tax Certificate may be pursued by the Note owners pursuant to the terms of the Note Resolution or any other document which references this Tax Certificate and gives remedies for a misrepresentation or breach thereof. Section 5.08 Governing Law. This Tax Certificate will be governed by and construed in accordance with the laws of the State. Section 5.09 Electronic Transactions. The transaction described in this Tax Certificate may be conducted, and related documents may be stored, by electronic means. Section 5.10 Execution in Counterparts. This Tax Certificate may be executed in any number of counterparts, each of which so executed will be deemed to be an original, but all such counterparts will together constitute the same instrument. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 20 THE UNDERSIGNED, Mayor, Clerk and Finance Director of the Issuer, by their execution of this Tax Certificate hereby make the foregoing certifications, representations, and agreements contained in this Tax Certificate on behalf of the Issuer, as of the Issue Date. CITY OF SALINA, KANSAS By:_~_'J_ __ .:f ___ D_u--- Mayor ~ (Signature Page to Federal Tax Certificate-2018-1) EXHIBIT A IRS FORM 8038-G A-1 VIA FEDERAL EXPRESS Internal Revenue Service Center Ogden, Utah 84201 //; GILM01'_EBELL GILMORE & BELL PC 2.405 GRAND BOULEVARD, SUITE 1100 KANSAS CITY, MISSOURI 6.4108·2521 816·221·1000 I 816·221·1018 FAX GILMOREBELL.COM August 23, 2018 ,f. 600S96.20181 GMR ~:l~' 1~ii~u~~~ !P: OV: SHlPPlNG: SPECIAL HANDLING· 0 00 TOTAL: 2DAY ** NSR SvcsfRCK: 4313 0978 5107 '131 293-2660 I SHIP DATE 7 Re: $6,000,000 General Obligation Temporary Notes, Series 2018-I of the City of Salina, Kansas Ladies and Gentlemen: Enclosed for filing pursuant to Section 149(e) of the Internal Revenue Code of 1986 Form 8038- G, Information Return for Tax-Exempt Governmental Obligations, being filed with respect to the above- captioned transaction. If you have any questions, please do not hesitate to contact me. GMR:jac Enclosure 600596.20181 Very truly yours, Gina M. Riekhof 13 lb 0 92 0 00 14.08 August 29,2018 Dear Customer: The following is the proof-of-delivery for tracking number431309785107. Delivery lnfonnatlon: Status: Signed for by: Service type: Speclal Handling: Shipping lnfonnatlon: Tracking number: Recipient Delivered S.BARFUSS FedEx 2Day Deliver Weekday No Signature Required 431309785107 INTERNAL REVENUE SERVICE CENTER 1973 N. RULON WHITE BLVD. OGDEN, UT 84201 US Reference Thank you for choosing FedEx. Delivered to: Delivery location: Delivery date: Ship date: Weight: Shipper: Taylor Duffey 2405 Grand Boulevard Suite 1100 Kansas City, MO 64108 US 600596.20181 GMR Shipping/Receiving MAIL STOP 6731 OGDEN, UT 84201 Aug 24, 2018 09:24 Aug 23, 2018 0.5 lbs/0.2 kg Form8038•G Information Return for Tax-Exempt Governmental Obligations (Rev. September 2011) ... Under Internal Revenue Code section 149(e) OMS No. 1545-0720 Department of the Treasury ... See separate Instructions. Internal Revenue Service Caution: If the issue price Is under $100,000, use Form 8038-GC. •:1W1•• Reporting Authority If Amended Return, check here ..,.. D 1 Issuer's name 2 Issuer's employer Identification number (EIN) City of Salina, Kansas 48-6017288 3a Name of person (other than Issuer) with whom the IRS may communicate about this return (see Instructions) 3b Telephone number of other person shown on 3a Gina M. Riekhof, Gilmore & Bell, P.C .. Bond Counsel 816-221-1000 4 Number and street (or P.O. box if mail Is not delivered to street address) I Room/suite 5 Report number (For IRS Use Only) 2405 Grand Boulevard 1100 13 I I 6 City, town, or post office, state, and ZIP code 7 Date of issue Kansas City, MO 64108 07/30/2018 8 Name of Issue General Obligation Temporary Notes, Series 2018-1 9 CUSIP number NONE 10a Name and title of officer or other employee of the Issuer whom the IRS may call for more Information (see 10b Telephone number of officer or other Instructions) employee shown on 10a Debbie Pack, Director of Finance and Administration 785-309-5735 ·~··· Type of Issue (enter the issue price). See the instructions and attach schedule. 11 Education. 11 12 Health and hospital 12 13 Transportation 13 14 Public safety . 14 15 Environment Oncluding sewage bonds) 15 16 Housing 16 17 Utilities 17 18 Other. Describe ..,.. Public Improvements (Streets, Utilities, Police de(!artment facility) 18 6,000,000 00 19 If obligations are TANs or RANs, check only box 19a .... o If obligations are BANs, check only box 19b .... 0 20 If obligations are In the form of a lease or installment sale, check box .... o l:oH1•• II Description of Obligations. Complete for the entire issue for which this form is beinq filed. (a) Final maturity date (b) Issue price (c) Stated redemption (d) Weighted (e)Yleld price at maturity average maturity 21 12/01/2018 Si 6,000,000.00 $ 6,000,000.00 0.3361 vears 1.9932 % l:oH111• ~·· Uses of Proceeds of Bond Issue (including underwriters' discount) 22 Proceeds used for accrued interest 22 0 23 Issue price of entire issue (enter amount from line 21, column (b)) 23 6,000,000 00 24 Proceeds used for bond issuance costs Oncluding underwriters' discount) • 24 17,725 00 ~ 25 Proceeds used for credit enhancement 25 0 26 Proceeds allocated to reasonably required reserve or replacement fund 26 0 27 Proceeds used to currently refund prior issues 27 2.224,084 44 28 Proceeds used to advance refund prior issues 28 0 29 Total (add lines 24 through 28) • 29 2,241,809 44 30 Nonrefunding proceeds of the issue (subtract line 29 from line 23 and enter amount here) 30 3,758,190 56 •!J;T:.I•'• Description of Refunded Bonds. Complete this part only for refundinq bonds. 31 Enter the remaining weighted average maturity of the bonds to be currently refunded • ..,.. 0.0028 years 32 Enter the remaining weighted average maturity of the bonds to be advance refunded . ..,.. N/A years 33 Enter the last date on which the refunded bonds will be called (MM/DD/YYYY) ..,.. 08/01/2018 34 Enter the date(s) the refunded bonds were issued ..,.. (MMIDDIYYYYJ NIA For Paperwork Reduction Act Notice, see separate instructions. cat No. 63773S Form 8038-G (Rev. 9-2011) Form 8038-G (Rev. 9-2011) Page2 .. . . .. Miscellaneous 35 Enter the amount of the state volume cap allocated to the issue under section 141 (b)(S) 35 36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (GIC) (see instructions) ' 36a b Enter the final maturity date of the GIC JI.. c Enter the name of the GIC provider JI.. 37 Pooled financings: Enter the amount of the proceeds of this issue that are to be used to make loans to other governmental units . 37 38a If this issue is a loan made from the proceeds of another tax-exempt issue, check box JI.. D and enter the following information: b Enter the date of the master pool obligation JI.. -------------------- c Enter the EIN of the issuer of the master pool obligation JI..----------------- d Enter the name of the issuer of the master pool obligation JI.. ---------------- 39 If the issuer has designated the issue under section 265(b)(3)(B)(i)(lll) (small issuer exception), check box JI.. D 40 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box . . . . . . . . . JI.. 0 41a If the issuer has Identified a hedge, check here JI.. 0 and enter the following information: b Name of hedge provider JI.. c Type of hedge JI.. -----------------d TermofhedgeJll.. ________________ _ 42 If the issuer has superintegrated the hedge, check box • . . . . . . . . . • . . • . . . JI.. 0 43 If the issuer has established written procedures to ensure that all nonqualified bonds of this issue are remediated according to the requirements under the Code and Regulations (see instructions), check box . . . . . . JI.. 0 44 If the issuer has established written procedures to monitor the requirements of section 148, check box . • . Jll.. 0 45a If some portion of the proceeds was used to reimburse expenditures, check here JI.. 0 and enter the amount ofreimbursement . . . . . . . . . JI.. $1,109, 130.84 b Enter the date the official Intent was adopted JI.. _o_s1_1_21_2_01_1 ______________ _ Signature and Consent Paid Preparer Use Only Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. I further declare that I consent to the IRS's disclosure of the Issuer's return information, as necessary to process thl<; retu ;:;,;::at v~ve. g 11 I 1 % ~ Signature of Issuer's authorized representative Date Gina Riekhof Firm's name JI> Gilmore & Bell, P.C. Finn's address JI> 2405 Grand Boulevard, Suite 1100, Kansas City, MO 64108 ~ Debbie Pack, Finance Director r Type or print name and title Date C k D If PTIN -=f'", ~ 0 f S se~~mployed P02051171 Firm's EIN JI> 43-1611738 Phone no. 816·221-1000 Form 8038-G (Rev. 9·2011) EXHIBITB RECEIPT FOR PURCHASE PRICE $6,000,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION TEMPORARY NOTES SERIES 2018-1 DATED JULY 30, 2018 The undersigned Director of Finance and Administration of the City of Salina, Kansas (the "Issuer"), this day received from The Bennington State Bank, Salina, Kansas, the original purchaser of the above-described notes (the "Series 2018-1 Notes"), the full purchase price of the Series 2018-1 Notes, said purchase price and net amount received by the Issuer being calculated as follows: Principal Amount .................................. . Plus Accrued Interest ............................ . Total Purchase Price ................. . DATED: July 30, 2018. B-1 $6,000,000.00 0.00 $6, 000,000. 00 CITY OF SALINA, KANSAS By -----""--e<Q~d.,U.e-=---=---__.._~=---~-- Director of Finance and Administration EXHIBITC PURCHASER'S RECEIPT FOR NOTES AND CLOSING CERTIFICATE $6,000,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION TEMPORARY NOTES SERIES 2018-1 The undersigned, on behalf of The Bennington State Bank (the "Purchaser"), as the purchaser of the above-described notes (the "Notes"), being issued on the date of this Certificate by the City of Salina, Kansas (the "Issuer"), certifies and represents as follows: 1. Receipt for Notes. The Purchaser acknowledges receipt on the date hereof of all of the Notes, consisting of fully registered Notes in authorized denominations in a form acceptable to the Purchaser. 2. Issue Price. (a) Purchase Price. On the date of this Certificate, the Purchaser is purchasing the Notes for the amount of $6,000,000.00. The Purchaser is not a broker-dealer and is not acting as an Underwriter with respect to the Notes. The Purchaser has no present intention to sell, reoffer, or otherwise dispose of the Notes (or any portion of the Notes or any interest in the Notes). The Purchaser has not contracted with any person pursuant to a written agreement to have such person participate in the initial sale of the Notes, and the Purchaser has not agreed with the Issuer pursuant to a written agreement to sell the Notes to persons other than the Purchaser or a Related Party to the Purchaser. (b) Defined Terms. (i) The term "Public" means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a Related Party to an Underwriter. (ii) The term "Related Party" is defined in U.S. Treasury Regulation § 1.150-l(b) which generally provides that the term related party means any two or more persons who have a greater than 50 percent common ownership, directly or indirectly. (iii) The term "Underwriter" means (A) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Notes to the Public, and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) of this paragraph to participate in the initial sale of the Notes to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Notes to the Public). The representations set forth in this certificate are limited to factual matters only. Nothing in this Certificate represents the Purchaser's interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the certifications contained herein will be relied upon by the Issuer in executing and delivering the Federal Tax Certificate and with respect to compliance with the federal income C-1 tax rules affecting the Notes. and by Gilmore & Bell. P.C .. Bond Counsel to the Issuer. in rendering its opinion relating to the exclusion from federal gross income of the interest on the Notes and other federal income tax advice that it may give to the Issuer from time to time relating to the Notes. Dated: .July 30, 2018 THE BENNINGTON STATE BANK C-2 EXHIBITD DESCRIPTION OF PROPERTY COMPRISING THE FINANCED IMPROVEMENTS AND LIST OF REIMBURSEMENTS $6,000,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION TEMPORARY NOTES SERIES 2018-1 DATED JULY 30, 2018 D-1 2018-1 Project Asset Description Downtown Streetscape Grand Prairie Addition, Phase II River Trail Second Addition Police Training Facility Less land costs Net costs, excluding land Average, Reasonably Expected Economic Life: 120% of Original Economic Life • Improvement Fund Deposit includes Costs oflssuance. 2018-1 Note Proceeds Allocated to Project Costs Other Money Allocated to Project Costs• Total Project Costs Original Economic Life 20 20 20 40 120% • Other Money includes prior and future tax-exempt fmancings. Salina KS 2018-1 G.O. Temp. Notes EXHIBIT D TO FEDERAL TAX CERTIFICATE Description of Property Comprising the Financed Property Estimated Elapsed Estimated Total Total Placed in Time Remaining Estimated Costs Financed Service from Economic Asset Project With Date Issue Date Life Type Costs 2018-1 Notes• November-19 1.29 21.29 Other $14,650,000.00 $4,299,965.06 November-17 -0.73 19.27 Other 337,847.08 $303,031.44 July-17 -1.07 18.93 Other 767,110.15 $725,764.10 July-19 0.92 40.92 Building 4,900,000.00 $671,239.40 $20,654,957 .23 $6,000,000.00 $20,654,957.23 $6,000,000.00 23.03 years 27.64 years 6,000,000 29.05% 14,654,957 70.95% 20,654,957 100.00% D-1 lml!rovement Fond Del!osit• Economic Life x Redemption of Costs of Financed New Money 2017-1 Notes Issuance Cost 0 $3,041,046.76 $1,246,215.49 $12,702.81 91,275,813 0.00 302,136.23 895.21 5,822,165 723,620.07 0.00 2,144.03 13,698,128 150,000.00 519,256.45 1,982.95 27,385,974 $3,914,666.83 $2,067,608.17 $17,725.00 138, 182,080 July 30, 2018 EXHIBITE FORM OF FINAL WRITTEN ALLOCATION $6,000,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION TEMPORARY NOTES SERIES 2018-1 DATED JULY 30, 2018 The Bond Compliance Officer is the person that the Issuer has identified in the Tax Compliance Procedure who is primarily responsible for the Post-Issuance Tax Requirements for the Notes. On the Issue Date, the Issuer identified certain categories of assets financed in whole or in part by the Notes (the "Financed Improvements"), as evidenced on Exhibit D to the Federal Tax Certificate. The Tax Compliance Procedure requires the Bond Compliance Officer to complete a Final Written Allocation of the proceeds of the Notes, in substantially the following form, when all proceeds (including Investment earnings on proceeds) are expended, but not later than 18 months after the Financed Improvements are placed in service. A completed copy of this Final Written Allocation should be placed in the Tax-Exempt Bond File and retained in the Issuer's permanent records for at least 3 years after the final maturity of (1) the Notes or (2) any obligation issued to refund the Notes. The undersigned is the Bond Compliance Officer of the City of Salina, Kansas (the "Issuer") and in that capacity is authorized to execute federal income tax returns required to be filed by the Issuer and to make appropriate elections and designations regarding federal income tax matters on behalf of the Issuer. This allocation of the proceeds of the note issue referenced above (the "Notes") is necessary for the Issuer to satisfy ongoing reporting and compliance requirements under federal income tax laws. Purpose. This document, together with the schedules and records referred to below, is intended to memorialize allocations of Note proceeds to expenditures for purposes of§§ 141and148 of the Internal Revenue Code (the "Code"). All allocations are or were previously made no later than 18 months following the date the expenditure was made by the Issuer or, if later, the date the "Financed Improvements" were "placed in service" (both as defined below), and no later than 60 days following the 5th anniversary of the issue date of the Notes. Definitions. Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Federal Tax Certificate, relating to the Notes, dated July 30, 2018 (the "Issue Date"). Background. The Notes were issued pursuant to the Note Resolution in order to provide funds needed to finance the Financed Improvements and refund certain temporary notes of the Issuer. Proceeds of the Notes were deposited into the Improvement Fund established under the Note Resolution. Sources Used to Fund Improvements and Allocation of Proceeds to Costs of Financed Improvements. A portion of the costs of the Improvements were paid from sale and investment proceeds of the Notes (and proceeds of the refinanced temporary notes) as shown on Schedule 1 to this Final Written Allocation. Identification of Financed Improvements. The Financed Improvements are listed on Schedule 2 to this Final Written Allocation. E-1 Identification and Timing of Expenditures for Arbitrage Purposes. For purposes of complying with the arbitrage rules, the Issuer allocates the proceeds of the Notes and the temporary notes to the various expenditures described in the invoices, requisitions or other substantiation attached as Schedule 2 to this Final Written Allocation. In each case, the cost requisitioned was either paid directly to a third party or reimbursed the Issuer for an amount it had previously paid or incurred. Amounts received from the sale of the Notes and retained as underwriters discount are allocated to that purpose and spent on the Issue Date. Amounts allocated to interest expense are treated as paid on the Interest Payment Dates for the Notes. Placed In Service. The Financed Improvements were "placed in service" on the date(s) set out on Schedule 2 to this Final Written Allocation. For this purpose, the assets are considered to be "placed in service" as of the date on which, based on all the facts and circumstances: (a) the constructing and equipping of the asset has reached a degree of completion which would permit its operation at substantially its design level; and (b) the asset is, in fact, in operation at that level. This allocation has been prepared based on statutes and regulations existing as of this date. The Issuer reserves the right to amend this allocation to the extent permitted by future Treasury Regulations or similar authorities. CITY OF SALINA, KANSAS By: Title: Dated: Name of Legal Counsel/Law Firm Reviewing Final Written Allocation: E-2 SCHEDULE 1 TO FINAL WRITTEN ALLOCATION ALLOCATION OF SOURCES AND USES S-1-1 SCHEDULE2 TO FINAL WRITTEN ALLOCATION IDENTIFICATION OF FINANCED ASSETS FROM NOTES Actual Date Estimated Actual Amount Placed in Useful Actual Financed Description Service Life Total Cost From Notes [coov catef(oriesfrom Ex DJ r month/year l r 1 years $f l $f 1 *note: exclude land costs DETAILED LISTING OF EXPENDITURES* Item No. Date Paid Amount Paid Catef(ory Payee Description Reference * or attach General Ledger or Project Ledger S-2-1 SCHEDULEJ DEBT SERVICE SCHEDULE AND PROOF OF YIELD S-1 Jul 17, 2018 4:56 pm Prepared by Gilmore & Bell, P.C. SOURCES AND USES OF FUNDS City of Salina, Kansas General Obligation Temporary Notes, Series 2018-1 Sources: Bond Proceeds: Dated Date Delivery Date Par Amount Other Sources of Funds: Prepaid Assessments Available Funds Uses: Project Fund Deposits: Project Construction Fund Refunding Escrow Deposits: Cash Deposit Delivery Date Expenses: Cost oflssuance 07/30/2018 07/30/2018 6,000,000.00 30,000.00 126,476.27 156,476.27 6, 156,4 76.27 3,914,666.83 2,224,084.44 17,725.00 6,156,476.27 (Finance 8.000) Page 1 This infonnation is provided based on the factual information and assumptions provided to Gilmore & Bell, P.C. by a party to or a representative of a party to the proposed transaction. This infonnation is intended to provide !actual information only and is provided in conjunction with our legal representation.. It is not intended as f"mancial advice or a financial recommendation to any party. Gilmore & Bell. P.C. is not a financial advisor or a '"municipal advisor" as defined in the Securities Exchanli:e Act of 1934. as amended. Jul 17, 2018 4:56 pm Prepared by Gilmore & Bell, P.C. (Finance 8.000) Page 2 BOND DEBT SERVICE City of Salina, Kansas General Obligation Temporary Notes, Series 2018-1 Period Annual Bond Total Ending Principal Coupon Interest Debt Service Debt Service Balance Bond Value 07/30/2018 6,000,000 6,000,000 12/01/2018 6,000,000 1.990% 40,131.67 6,040,131.67 6,040, 131.67 6,000,000 40,131.67 6,040, 131.67 6,040, 131.67 This infonnation is provided based on the factual infonnation and assumptions provided to Oihnore & Bell, P.C. by a party to or a representative of a party to the proposed transaction. This information is intended to provide factual information only and is provided in conjunction with our legal representation. It is not intended as financial advice or a financial recommendation to any party. Oihnore & Bell. P.C. is not a financial advisor or a Mmunicipal advisor"' as defined in the Seauities ExcbaI1J11e Act of 1934, as amended. Jul 17, 2018 4:56 pm Prepared by Gilmore & Bell, P.C. BOND PRICING City of Salina, Kansas General Obligation Temporary Notes, Series 2018-1 Bond Component Maturity Date Serial Bonds: 12/01/2018 Dated Date Delivery Date First Coupon Par Amount Original Issue Discount Production Underwriter's Discount Purchase Price Accrued Interest Net Proceeds Amount Rate Yield 6,000,000 1.990% 1.990% 6,000,000 07/30/2018 07/30/2018 12/01/2018 6,000,000.00 6,000,000.00 100.000000% 6,000,000.00 100.000000% 6,000,000.00 (Finance 8.000) Page 3 Price 100.000 This infonnation is pro\•ided based on the facrual infonnation and assumptions provided to Gilmore & Bell, P.C. by a party to or a representative of a party to the proposed transaction. This information is intended to provide !actual information only and is provided in conjunction with our legal representation. It is not intended as financial advice or a financial recommendation to any party. Gilmore & Bell, P.C. 1s not a financial advisor or a "municipal advisot" as defined in the Securities ExchanJ11e Act of 1934, as amended. Jul 17, 2018 4:56 pm Prepared by Gilmore & Bell, P.C. BOND SUMMARY STATISTICS City of Salina, Kansas General Obligation Temporary Notes, Series 2018-1 Dated Date Delivery Date Last Maturity Arbitrage Yield True Interest Cost (TIC) Net Interest Cost (NIC) All-In TIC Average Coupon Average Life (years) Weighted Average Maturity (years) Duration oflssue (years) Par Amount Bond Proceeds Total Interest Net Interest Bond Years from Dated Date Bond Years from Delivery Date Total Debt Service Maximum Annual Debt Service Average Annual Debt Service Underwriter's Fees (per $1000) Average Takedown Other Fee Total Underwriter's Discount Bid Price Bond Component Serial Bonds Par Value + Accrued Interest , +Premium (Discount) -Underwriter's Discount -Cost of Issuance Expense -Other Amounts Target Value Target Date Yield Par Value 6,000,000.00 6,000,000.00 TIC 6,000,000.00 6,000,000.00 07/30/2018 1.993242% Price 100.000 07/30/2018 07/30/2018 12/01/2018 1.993242% 1.993242% 1.990000% 2.884200% 1.990000% 0.336 0.336 0.336 6,000,000.00 6,000,000.00 40,131.67 40,131.67 2,016,666.67 2,016,666.67 6,040, 131.67 6,040, 131.67 17,970,639.68 100.000000 Average Coupon 1.990% All-In TIC 6,000,000.00 (17,725.00) 5,982,275.00 07/30/2018 2.884200% Average Life 0.336 0.336 Arbitrage Yield 6,000,000.00 6,000,000.00 07/30/2018 1.993242% (Finance 8.000) Page 4 This infonnotion is provided based on the factual infonnation and assumptions provided to Gilmore & Bell, P.C. by a party to or a representative of a party to the proposed transaction. This infonnation is intended to provide factual information only and is provided in conjunction with our legal representation. It is not intended as financial advke or a financial recommendation to any party. Gilmore & Bell, P.C. is not a flllRllc1al advisor or a "municipal advisor" as defined in the Securities Exchanlli• Act of 1934. as amended. Jul 17, 2018 4:56 pm Prepared by Gilmore & Bell, P.C. PROOF OF ARBITRAGE YIELD City of Salina, Kansas General Obligation Temporary Notes, Series 2018-1 Present Value PV to 07/30/2018 Date Debt Service Factor @ 1.9932415499% 12/01/2018 6,040, 131.67 0.993355829 6,000,000.00 6,040, 131.67 6,000,000.00 Proceeds Summary Delivery date Par Value Target for yield calculation 07/30/2018 6,000,000.00 6,000,000.00 (Finance 8.000) Page 5 This infonnation is provided based on the factual information and assumptions provided to Gilmore & Bell, P .C. by a party to or a representative of a party to the proposed transaction. This information is intended to provide !aC'tual information only and is provided in conjunction with our legal representation. It is not intended as financial advice or a financial recommendation to any party. Gilmore & Bell, P.C. is not a financial advisor or a "municipal advisor" as defmed in the Securities Exc~e Act of 1934. as amended. Jul 17, 2018 4:56 pm Prepared by Gilmore & Bell, P.C. FORM 8038 STATISTICS City of Salina, Kansas General Obligation Temporary Notes, Series 2018-1 Dated Date Delivery Date 07/30/2018 07/30/2018 Bond Component Serial Bonds: Final Maturity Entire Issue Date 12/01/2018 Maturity Date 12/01/2018 Proceeds used for accrued interest Principal Coupon 6,000,000.00 1.990% 6,000,000.00 Interest Issue Rate Price 1.990% 6,000,000.00 6,000,000.00 Proceeds used for bond issuance costs (including underwriters' discount) Proceeds used for credit enhancement Proceeds allocated to reasonably required reserve or replacement fund Proceeds used to currently refund prior issues Proceeds used to advance refund prior issues Remaining weighted average maturity of the bonds to be currently refunded Remaining weighted average maturity of the bonds to be advance refunded Price 100.000 Stated Redemption at Maturity 6,000,000.00 6,000,000.00 Issue Price 6,000,000.00 6,000,000.00 Weighted Average Maturity 0.3361 (Finance 8.000) Page 6 Redemption at Maturity 6,000,000.00 6,000,000.00 Yield 1.9932% 0.00 17,725.00 0.00 0.00 2,224,084.44 0.00 0.0028 0.0000 This information is provided based on the factual information and assumptions provided to Gilmore & Bell, P.C. by a party to or a representative of a party to the proposed transaction. This information is intended to provide factual infonnation only and is provided in conjunction with our legal representation. It is not intended as :financial advice or a financial recommendation to any party. Gilmore & Bell, P.C. is not a financial advisor or a '"municipal advisor" as defined in the Securities Exchan11:e Act of 1934, as amended. Jul 17, 2018 4:56 pm Prepared by Gilmore & Bell, P.C. FORM 8038 STATISTICS City of Salina, Kansas General Obligation Temporary Notes, Series 2018-1 Refunded Bonds Bond Component Date Principal General Obligation Temporary Notes, Series 2017-1: SRLCPN 08/01/2018 2,180,000.00 2, 180,000.00 General Obligation Temporary Notes, Series 2017-1 All Refunded Issues Coupon 2.000% Last Call Date Price 100.952 Issue Date 07/27/2017 (Finance 8.000) Page 7 Issue Price 2,200,753.60 2,200,753.60 Remaining Weighted Average Maturity 0.0028 0.0028 This infonnation is provided based on the factual infonnation and assumptions provided to Gilmore & Bell, P.C. by a party to or a representative of a party to the proposed transaction. This infonnation is intended to prmide factual information only and is provided in conjunction with our legal representation. It is not intended as financial advice or " financial recommendallon to any party. Oilmore & Bell. P.C. is not a f10ancial advisor or a "municipal advisol" as def10ed in the Securities Exchanjiie Act of 1934, as amended. Jul 17, 2018 4:56 pm Prepared by Gilmore & Bell, P.C. SUMMARY OF BONDS REFUNDED City of Salina, Kansas General Obligation Temporary Notes, Series 2018-1 Bond Maturity Date Interest Rate Par Amount General Obligation Temporary Notes, Series 2017-1, 2017_1: SRLCPN 08/01/2018 2.000% 2,180,000.00 2,180,000.00 Call Date Call Price (Finance 8.000) Page 8 This infonnation is provided based on the factual information and assumptions provided to Gilmore & Bell, P.C. by a party to or a representative of a party to the proposed transaction. This information is intended to provide factual infonnation only and is provided in conjunction with our legal representation. It is not intended as :financial advice or a financial recommendation to any party. Gilmore & Bell. P.C. is not a financial advisor or a '"municipal odvisor" as defined in the Securities Exchalljlie Act of 1934, as amended. Jul 17, 2018 4:56 pm Prepared by Gilmore & Bell, P.C. (Finance 8.000) Page 9 PRIOR BOND DEBT SERVICE City of Salina, Kansas General Obligation Temporary Notes, Series 2018-1 Period Annual Bond Total Ending Principal Coupon Interest Debt Service Debt Service Balance Bond Value 07/30/2018 2,180,000 2,180,000 08/01/2018 2,180,000 2.000% 44,084.44 2,224,084.44 12/01/2018 2,224,084.44 2,180,000 44,084.44 2,224,084.44 2,224,084.44 This infonnation is provided based on the factual information and assumptions provided to Oilmore & Bell, P .C. by a party to or a representative of a party to the proposed transaction. This infonnation is intended to provide factual infonnation only and is pro\.•ided in conjunction with our legal representation. It is not intended as financial advice or a financial recommendation to any party, Oilmore & Bell. P.C. is not a financial advisor or a "municipal advisor" as defmed in the Securities Exchange Act of 1934, as amended. Jul 17, 2018 4:56 pm Prepared by Gilmore & Bell, P.C. ESCROW REQUIREMENTS City of Salina, Kansas General Obligation Temporary Notes, Series 2018-1 Period Ending 08/01/2018 Principal 2, 180,000.00 2,180,000.00 Interest Total 44,084.44 2,224,084.44 44,084.44 2,224,084.44 (Finance 8.000) Page 10 This infonnation is provided based on the facrual information and assumptions provided to Gihnore & Bell, P.C. by a party to or a representative of a party to the proposed transaction. This information is intended to provide f'acrual information only and is provided in conjunction with our legal representation. It is not intended as fmancial advice or a financial recommendation to any party, Gilmore & Bell. P.C. is not a financial advisor or a "municipal advisor"' as defwed in the Securities Exc~e Act of 1934, as amended. Jul 17, 2018 4:56 pm Prepared by Gilmore & Bell, P.C. (Finance 8.000) Page 11 ESCROW SUFFICIENCY City of Salina, Kansas General Obligation Temporary Notes, Series 2018-1 Escrow Net Escrow Excess Excess Date Requirement Receipts Receipts Balance 07/30/2018 2,224,084.44 2,224,084.44 2,224,084.44 08/01/2018 2,224,084.44 (2,224,084.44) 2,224,084.44 2,224,084.44 0.00 This information is provided based on the factual infonnation and assumptions provided to Gilmore & Bell, P.C. by a party to or a representative of a party to the proposed transaction. This information is intended to provide faC"hlal infonnation only and is provided in conjunction \vi.th our legal representation. It is not intended as financial adviC'e or ft financial recommendatton to any party. Gilmore & Bell, P.C. is not a financial advisor or a "'municipal advisor'" as defined in the Securities Exchtmge Act of 1934. as amended. Governing Body City of Salina, Kansas The Bennington State Bank Salina, Kansas /J GILMOR_EBELL GILMORE & BELL PC 2405 GRAND BOULEVARD, SUITE 1100 KANSAS CITY, MISSOURI 64108-2521 816-221-1000 I 816-221-1018 FAX GILMOREBELL.COM July 30, 2018 Re: $6,000,000 General Obligation Temporary Notes, Series 2018-1, of the City of Salina, Kansas, Dated July 30, 2018 We have acted as Bond Counsel in connection with the issuance by the City of Salina, Kansas (the "Issuer"), of the above-captioned notes (the "Notes"). In this capacity, we have examined the law and the certified proceedings, certifications and other documents that we deem necessary to render this opinion. Capitalized terms not otheiwise defined herein shall have the meanings ascribed thereto in the resolution adopted by the governing body of the Issuer authorizing the issuance and prescribing the details of the Notes. Regarding questions of fact material to our opinion, we have relied on the certified proceedings and other certifications of public officials and others furnished to us without undertaking to verify them by independent investigation. Based upon the foregoing, we are of the opinion, under existing law, as follows: 1. The Notes have been duly authorized, executed and delivered by the Issuer and are valid and legally binding general obligations of the Issuer. 2. The Notes are payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain improvements or from general obligation bonds of the Issuer and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The Issuer is required by law to include in its annual tax levy the principal and interest coming due on the Notes to the extent that necessary funds are not provided from other sources. 3. The interest on the Notes is: (a) excludable from gross income for federal income tax purposes; and (b) not an item of tax preference for purposes of the federal alternative minimum tax. The opinions set forth in this paragraph are subject to the condition that the Issuer complies with all requirements of the Internal Revenue Code of 1986, as amended (the "Code") that must be satisfied subsequent to the issuance of the Notes in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes. The Issuer has covenanted to comply with all of these requirements. Failure to comply with certain of these requirements may cause interest on the Notes to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Notes. The Notes have not been designated as "qualified tax-exempt obligations" for purposes of Code§ 265(b)(3). We express no opinion regarding other federal tax consequences arising with respect to the Notes. 4. The interest on the Notes is exempt from income taxation by the State of Kansas. The rights of the owners of the Notes and the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights generally and by equitable principles, whether considered at law or in equity. This opinion is given as of its date, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may come to our attention or any changes in law that may occur after the date of this opinion. Yours very truly, STATE OF KANSAS OFFICE OF THE ATTORNEY GENERAL DEREK SCHMIDT ATIORNEY GENERAL The Honorable Jake LaTurner State Treasurer July 30, 2018 Landon State Office Building, Room 201 N Topeka, KS 66612 Dear Mr. LaTurner:- MEMORIAL HALL 120 SW 1 OTH AVE., 2ND FLOOR TOPEKA, KS 66612-1597 (785) 296-2215 • FAX (785) 296-6296 WWW.AG.KS.GOV Pursuant to K.S.A. 10-108, basic or supplemental transcript material is hereby approved and you may register the fallowing: · Municipality: City of Salina, Kansas Description: General Obligation Temporary Note Series: 2018-1 Numbered: Registered Dated: July 30, 2018 Aggregate Amount: $6,000,000.00 Date of First Payment: December 1, 2018 Fiscal Agent: Kansas State Treasurer RDS:sb cc: Shandi Wicks, Clerk Gilmore & Bell-Kansas City Sincerely, OFFICE OF THE ATTORNEY GENERAL DEREK SCHMIDT TO: SEE DISTRIBUTION LIST FROM: DAVID ARTEBERRY ROGER EDGAR July 10, 2018 MEMORANDUM RE: NOTE ISSUE CLOSING ARRANGEMENTS NAME OF ISSUER: City of Salina, Kansas AMOUNT, NAME AND DATE OF ISSUE: TIME AND DATE OF CLOSING: SETTLEMENT NUMBERS: METHOD OF FUNDS TRANSFER: $6,000,000 City of Salina, Kansas General Obligation Temporary Notes Series 2018-1 Dated July 30, 2018 lO:OOa.m. Monday, July 30, 2018 Via telephone Par Amount of Notes Net Amount Due at Closing Wire Transfer of Federal Funds $6.000.000.00 $6,000,000.00 4801 Main Street • Suite 500 • Kansas City, Missouri 64112 • 816.474.1100 TRANSFER INSTRUCTIONS: (Bennington State Bank -Wire #1) (Bennington State Bank -Wire #2} (City of Salina) DISPOSITION OF NOTE PROCEEDS: (City of Salina) DELIVERY OF TRANSCRIPT AND LEGAL OPINION: NOTE DELIVERY INSTRUCTIONS: PAYMENT OF COSTS OF ISSUANCE: On Monday, July 30, 2018 Bennington State Bank will wire transfer an amount of $3,932,391.83 to Sunflower Bank, ABA #1011-0062-1, AC #10218 7275 for credit to the City of Salina, Attn: Kayleen Chaput. On Monday, July 30, 2018, Bennington State Bank will wire transfer an amount of $2,067,608.17 to U.S. Bank N.A., ABA #1010-0018-7, for credit to State Treasurer Operating Account #145592399581, for further credit to the City of Salina, Attn: Shauna Wake. On or before Monday, July 30, 2018, the City will wire transfer an amount of $156,476.27 (comprised of $126,476.27 of remaining Series 2017-1 Note proceeds and $30,000.00 of prepaid special assessments) to U.S. Bank N.A., ABA #1010-0018-7, for credit to State Treasurer Operating Account #145592399581, for further credit to the City of Salina, Attn: Shauna Wake. Funds transferred to the State Treasurer will be used to redeem the City's outstanding General Obligation Temporary Notes, Series 2017-1 (the "Series 2017-1 Notes") on August 1, 2018. The City shall deposit the $3,932,391.83 received from Bennington State Bank into Improvement Fund for General Obligation Temporary Notes, Series 2018-1. Upon receiving confirmation of receipt of funds, Gilmore & Bell will email a signed legal opinion to the City, Bennington State Bank and George K. Baum & Company. Original signed legal opinions and transcripts will be mailed when completed. Notes will be delivered to the offices Bennington State Bank at least one day prior to closing. All reimbursable costs associated with the issuance of the Notes will be paid after closing by the City upon presentation of the proper invoices. Cassmeyer, Julie (G&B) From: Sent: To: bondreg@treasurer.ks.gov Friday, July 06, 2018 2:33 PM Cassmeyer, Julie (G&B) Subject: Bondreg: Updated Bond Registration July 6, 2018, 14:32:56 This bond issue has been updated in the KST Bond Registration System. Below is the updated information: Registration#: 0322-085-073018-405 Municipality: Salina Bond Counsel: Gilmore Bell: Julie Cassmeyer Paying Agent: State Purpose & Series: General Obligation Temporary Note Series 2018-1 Book Entry: No Principal: $6,000,000.00 Closing Date: July 30, 2018 The issue was updated by Kim Barry. 1 City of Salina, Kansas Salina, Kansas Treasurer of the State of Kansas. as Note Registrar Topeka, Kansas REPRESENTATION LETTER July 30, 2018 Re: City of Salina, Kansas, General Obligation Temporary Notes, Series 20 l 8-1 Ladies and Gentlemen: The undersigned is the transferee of $6,000,000 of the notes described above (the "Notes··) issued by the City of Salina. Kansas (the ''Issuer'') pursuant to a Note Resolution adopted by the Issuer on July 9, 2018 (the •'Note Resolution''). The undersigned hereby represents, acknowledges and covenants as follows in connection with the purchase of the Notes: l. In purchasing the Notes. the undersigned is relying solely on infonnation provided by the Issuer and on statements, certifications, covenants, warranties and representations of the Issuer, and on the undersigned's own knowledge and investigation of the facts and circumstances relating to the purchase of the Notes. 2. The undersigned is an "accredited investor'' within the meaning of Regulation D of the Securities and Exchange Commission. The undersigned has sufficient knowledge and experience in financial and business matters, including the purchase and ownership of tax-exempt obligations, to be capable of evaluating the merits and risks of an investment in the Notes. The undersigned has had an opportunity to obtain and has received such infonnation and materials from the Issuer as the undersigned considers necessary to evaluate the merits and risks involved in the purchase of the Notes. 3. The undersigned has been advised that the Notes (a) have not been rated by any rating service, (b) are not being registered under the Securities Act of 1933 and are not being registered or otherwise qualified for sale under the ''Blue Sky'' laws and regulations of any state, (c) will not be listed on any stock or other securities exchange, (d) will not be readily marketable and (e) are subject to provisions regarding restrictions on transfer set forth in the Note Resolution. 4. The undersigned is purchasing the Notes for the undersigned's own account and not with a view to other resale or other distribution thereof provided, however, that the undersigned may transfer the Notes in accordance with the provisions of the Note Resolution and applicable Jaw. Sincerely yours, THE BENNINGTON ST ATE BANK, SALINA, KANSAS (Signature Page to Representation Letter) VOLUNTARY EVENT NOTICE July 30, 2018 CITY OF SALINA, KANSAS GENERAL OBLIGATION TEMPORARY NOTES SERIES 2018-1 Issuer/Obligated Person: City of Salina, Kansas (the "Issuer") Event Reported: Direct Placement of $6,000,000 General Obligation Temporary Notes, Series 2018-1 Authority and Purpose. The Issuer issued its $6,000,000 original principal amount of General Obligation Temporary Notes, Series 2018-1 (the "Notes") on July 30, 2018. The Notes were purchased by a banking corporation organized and existing under the laws of the State of Kansas. The Notes are being issued pursuant to Resolution No. 18-7563 of the Issuer (the "Note Resolution") for the purpose of: (a) paying a portion of the costs of certain public improvements; and, (b) retiring the following temporary notes of the Issuer, issued to temporarily finance the costs of certain public improvements: Description General Obligation Temporary Notes Series 2017-1 Dated Date July 27, 2017 Maturitv Date Amount August 1, 2018 $2,180,000 Maturity Schedule. The Notes shall mature as follows: Stated Maturity December 1 2018 Principal Amount $6,000,000 Annual Rate Of Interest 1.990% Optional Redemption by Issuer. At the option of the Issuer, the Notes will be subject to redemption and payment prior to maturity, at any time, as a whole or in part (selection of the amount of Notes to be redeemed to be determined by the Issuer in such equitable manner as it may determine), at the redemption price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the date of redemption. Security for the Notes. The Notes are general obligations of the Issuer payable from the proceeds of general obligation bonds of the Issuer or from special assessments levied upon the property benefited by the improvements financed by the Notes and, if not so paid, to the extent necessary, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer, with the balance payable, to the extent necessary, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are pledged under the Note Resolution to the payment of the principal of and interest on the Notes. No official statement or other offering document has been prepared in connection with the sale of the Notes pursuant to an exception in Rule 15c2-12 of the SEC (the "Rule"). The Issuer has not entered into a disclosure undertaking under the Rule with regards to the Notes. The Issuer is voluntarily providing this notice for general information purposes only. Nothing contained in this notice is, or should be construed as, a representation by the Issuer that the information included in this notice constitutes all of the information that may be material to a decision to invest in, hold or dispose of any of the securities listed above, or any other securities of the Issuer. The information presented in this notice is as of the date of this notice. For additional information, contact: Debbie Pack Finance Director City of Salina, Kansas City/County Building Room 206 300 W. Ash Street Salina, Kansas 67401 CITY OF SALINA, KANSAS 2 Tif MSRB Municipal Securities Rulemaking Board CONTINUING DISCLOSURE (SUBMISSION STATUS: PUBLISHED) EVENT FILING (CUSIP-9 BASED) Voluntary Disclosure Other Event-based Disclosures: Notice of Direct Placement, dated 07/30/2018 Documents B-Event Flllng dated 07/30/2018 I '·-Voluntary Event Notice -Direct Placement of Series 2018-1 Notes (002).pdf posted 07/30/2018 Submission ID:ER887320 07/30/2018 14:22:30 The following issuers are associated with this continuing disclosure submission: CUSIP-6 State Issuer Name 794743 KS SALINA KANS 794744 KS SALINA KANS 794811 KS SALINA KANS WTR & SEW REV The following 541 securities have been published with this continuing disclosure submission: CUSIP-9 Maturity Date 7947432A1 10/01/2022 794743289 10/01/2023 7947432C7 10/01/2024 7947432D5 10/01/2025 7947432E3 10/01/2026 7947432FO 10/01/2027 7947432G8 10/01/2028 7947432H6 10/01/2029 7947432J2 10/01/2030 7947432K9 10/01/2031 7947432L7 08/01/2013 7947432M5 10/01/2013 7947432N3 10/01/2014 7947432P8 10/01/2015 794743206 10/01/2016 7947432R4 10/01/2017 794743282 10/01/2018 7947432TO 10/01/2019 7947432U7 10/01/2020 7947432V5 10/01/2021 7947432W3 10/01/2022 7947432X1 10/01/2023 7947432Y9 10/01/2024 7947432Z6 10/01/2025 7947433AO 10/01/2026 794743388 10/01/2027 7947433C6 10/01/2013 794743304 10/01/2014 7947433E2 10/01/2015 7947433F9 10/01/2016 7947433G7 10/01/2017 7947433H5 10/01/2018 7947433J1 10/01/2019 7947433K8 10/01/2020 7947433L6 10/01/2014 7947433M4 10/01/2015 7947433N2 10/01/2016 7947433P7 10/01/2017 794743305 10/01/2018 7947433R3 10/01/2019 794743381 10/01/2020 7947433T9 10/01/2021 7947433U6 10/01/2022 7947433V4 10/01/2023 7947433W2 10/01/2024 7947433XO 10/01/2025 7947433Y8 10/01/2026 7947433Z5 10/01/2027 7947434A9 10/01/2028 794743487 08/01/2014 7947434C5 10/01/2014 794743403 10/01/2015 7947434E1 10/01/2016 7947434F8 10/01/2017 7947434G6 10/01/2018 7947434H4 10/01/2019 7947434JO 10/01/2020 7947434K7 10/01/2021 7947434L5 10/01/2022 7947434M3 10/01/2023 7947434N1 10/01/2024 7947434P6 10/01/2025 794743404 10/01/2026 7947434R2 10/01/2027 794743450 10/01/2028 7947434T8 10/01/2029 7947434U5 10/01/2030 7947434V3 10/01/2031 7947434W1 10/01/2032 7947434X9 10/01/2033 7947434Y7 08/01/2015 7947434Z4 10/01/2015 7947435A8 10/01/2016 794743586 10/01/2017 7947435C4 10/01/2018 794743502 10/01/2019 7947435EO 10/01/2020 7947435F7 10/01/2021 7947435G5 10/01/2022 7947435H3 10/01/2023 7947435J9 10/01/2024 7947435K6 10/01/2025 7947435L4 10/01/2026 7947435M2 10/01/2027 7947435NO 10/01/2028 7947435P5 10/01/2029 794743503 10/01/2030 7947435R1 10/01/2031 794743559 10/01/2032 7947435T7 10/01/2033 7947435U4 10/01/2034 7947435V2 08/01/2016 7947435WO 10/01/2016 7947435X8 10/01/2017 7947435Y6 10/01/2018 7947435Z3 10/01/2019 7947436A7 10/01/2020 794743685 10/01/2021 7947436C3 10/01/2022 794743601 10/01/2023 7947436E9 10/01/2024 7947436F6 10/01/2025 7947436G4 10/01/2026 7947436H2 10/01/2027 7947436J8 10/01/2028 7947436K5 10/01/2029 7947436L3 10/01/2030 7947436M1 10/01/2031 7947436N9 10/01/2032 7947436P4 10/01/2033 794743602 10/01/2034 7947436RO 10/01/2035 794743688 08/01/2017 7947436T6 10/01/2017 7947436U3 10/01/2018 7947436V1 10/01/2019 7947436W9 10/01/2020 7947436X7 10/01/2021 7947436Y5 10/01/2022 7947436Z2 10/01/2023 7947437A6 10/01/2024 794743784 10/01/2025 7947437C2 10/01/2026 794743700 10/01/2027 7947437E8 10/01/2028 7947437F5 10/01/2029 7947437G3 10/01/2030 7947437H1 10/01/2031 7947437J7 10/01/2032 7947437K4 10/01/2033 7947437L2 10/01/2034 7947437MO 10/01/2035 7947437N8 10/01/2036 7947437P3 10/01/2017 794743701 10/01/2018 7947437R9 10/01/2019 794743787 10/01/2020 7947437T5 10/01/2021 7947437U2 10/01/2022 7947437VO 10/01/2023 7947437W8 10/01/2024 7947437X6 10/01/2025 7947437Y4 10/01/2026 7947437Z1 10/01/2027 7947438A5 10/01/2028 794743883 10/01/2029 7947438C1 10/01/2030 794743809 10/01/2031 7947438E7 08/01/2018 794743A20 08/01/2005 794743A38 08/01/2006 794743A46 08/01/2007 794743A53 08/01/2008 794743A61 08/01/2009 794743A79 08/01/2010 794743A87 08/01/2011 794743A95 08/01/2012 794743829 08/01/2013 794743837 08/01/2014 794743845 08/01/2015 794743878 10/01/2005 794743886 10/01/2006 794743894 10/01/2007 794743C28 10/01/2008 794743C36 10/01/2009 794743C44 10/01/2010 794743C51 10/01/2011 794743C69 10/01/2012 794743C77 10/01/2013 794743C85 10/01/2014 794743C93 10/01/2015 794743027 10/01/2016 794743035 10/01/2017 794743043 10/01/2018 794743050 10/01/2019 794743076 10/01/2006 794743084 10/01/2007 794743092 10/01/2008 794743E26 10/01/2009 794743E34 10/01/2010 794743E42 10/01/2011 794743E59 10/01/2012 794743E67 10/01/2013 794743E75 10/01/2014 794743E83 10/01/2015 794743E91 10/01/2016 794743F25 10/01/2017 794743F33 10/01/2018 794743F41 10/01/2019 794743F58 10/01/2020 794743F74 10/01/2007 794743F82 10/01/2008 794743F90 10/01/2009 794743G24 10/01/2010 794743G32 10/01/2011 794743G40 10/01/2012 794743G57 10/01/2013 794743G65 10/01/2014 794743G73 10/01/2015 794743G81 10/01/2016 794743G99 10/01/2017 794743H23 10/01/2018 794743H31 10/01/2019 794743H49 10/01/2020 794743H56 10/01/2021 794743H64 10/01/2022 794743H72 10/01/2023 794743H80 10/01/2024 794743H98 10/01/2025 794743J21 10/01/2026 794743J39 08/01/2009 794743J54 10/01/2007 794743J62 10/01/2008 794743J70 10/01/2009 794743J88 10/01/2010 794743J96 10/01/2011 7947431<29 10/01/2012 794743K37 10/01/2013 794743K45 10/01/2014 794743K52 10/01/2015 794743K60 10/01/2016 794743L36 10/01/2021 794743L51 10/01/2008 794743L69 10/01/2009 794743L77 10/01/2010 794743L85 10/01/2011 794743L93 10/01/2012 794743M27 10/01/2013 794743M35 10/01/2014 794743M43 10/01/2015 794743M50 10/01/2016 794743M68 10/01/2017 794743M76 10/01/2018 794743M84 10/01/2019 794743M92 10/01/2020 794743N26 10/01/2021 794743N34 10/01/2022 794743N42 10/01/2023 794743N83 10/01/2027 794743P24 10/01/2009 794743P32 10/01/2010 794743P40 10/01/2011 794743P57 10/01/2012 794743P65 10/01/2013 794743P73 10/01/2014 794743P81 10/01/2015 794743P99 10/01/2016 794743023 10/01/2017 794743031 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794811HJ1 09/01/2001 794811HK8 09/01/2002 794811HL6 09/01/2003 794811HM4 09/01/2004 794811HN2 09/01/2005 794811HP7 09/01/2006 794811HQ5 09/01/2007 794811HS1 09/01/2012 794811HT9 10/01/1995 794811HU6 10/01/1996 794811HV4 10/01/1997 794811HW2 10/01/1998 794811HXO 10/01/1999 794811HY8 10/01/2000 794811HZ5 10/01/2001 794811JA8 10/01/2002 794811JB6 10/01/2003 794811JC4 10/01/2004 794811JD2 10/01/2005 794811JEO 10/01/2006 794811JF7 10/01/2007 794811JG5 10/01/2008 794811JH3 10/01/2009 794811JJ9 10/01/2010 794811JNO 10/01/2014 794811JP5 09/01/2003 794811JQ3 09/01/2004 794811JR1 09/01/2005 794811JS9 09/01/2006 794811JT7 09/01/2007 794811JU4 09/01/2008 794811JV2 09/01/2009 794811JWO 09/01/2010 794811JX8 09/01/2011 794811JY6 09/01/2012 794811JZ3 10/01/2012 794811KA6 10/01/2013 794811KB4 10/01/2014 794811KC2 10/01/2015 794811KDO 10/01/2016 794811KE8 10/01/2017 794811KF5 10/01/2018 794811KG3 10/01/2019 794811KH1 10/01/2020 794811KJ7 10/01/2021 794811KK4 10/01/2022 794811KL2 10/01/2023 794811KMO 10/01/2024 794811KN8 10/01/2025 794811KP3 10/01/2026 794811KQ1 10/01/2027 794811KR9 10/01/2028 794811KS7 10/01/2029 794811KT5 10/01/2030 794811KU2 10/01/2031 Submitter's Contact Information Company: GILMORE & BELL, P.C. Name: LAVONNE MEYER Address: 2405 GRAND BLVD. City, State Zip: KANSAS CITY, MO 64108 Phone Number: 8162211000 ext. 7572 Emall: lmeyer@gilmorebell.com © 2018 Municipal Securities Rulemaking Board (MSRB)