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03-11-2019 Minutes CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS March 11, 2019 4:00 p.m. The City Commission convened at 2:30 p.m. for Land Bank Policy and at 3:45 p.m. for Citizens Forum at City-County Building, Room 107. a The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City-County Building. Roll call was taken followed by the Pledge of Allegiance and a moment of silence. Those present and comprising a quorum: Mayor Trent W. Davis, M.D. (presiding), Commissioners Joe Hay,Jr., Melissa Rose Hodges, and Mike Hoppock. Also present: Michael Schrage, City Manager; Greg Bengtson, City Attorney; and Shandi Wicks, City Clerk. Absent: Karl Ryan AWARDS AND PROCLAMATIONS (3.1) Special Recognition for the Salina Police Department. Mayor Davis read the Award of Valor and presented the Award of Valor plaques to Sergeant Kyle Tonniges,Officer Michael Baker and Officer Kevin Reay. CITIZENS FORUM None. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. CONSENT AGENDA (6.1) Approve the minutes of March 4, 2019. 19-0065 Moved by Commissioner Hodges, seconded by Commissioner Hay, to approve the consent agenda as presented. Aye: (4). Nay: (0). Motion carried. ADMINISTRATION (7.1) Resolution No. 19-7679 authorizing and providing for construction of additional parking for the Police Department and authorizing the issuance of Temporary Notes and/or General Obligation Bonds of the City to pay the costs thereof. Debbie Pack, Director of Finance & Administration, explained the project, request, fiscal impact and action options. Commissioner Hodges asked if the project was following the normal sequence of events for the DRT meeting. Michael Schrage, City Manager, stated there had been a DRT meeting for the project but the zoning change had not occurred. He further stated the normal sequence of events had varied for projects in the past and staff was working to create a standard sequence. Page 1 Commissioner Hodges provided her thoughts on the sequence of events for projects. Commissioner Hoppock stated there was another agenda item pertaining to bonding of the items. Mr. Schrage stated that bond counsel was in attendance to discuss other options such inn as cash financing. 19-0086 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to adopt Resolution No. 19-7679 authorizing and providing for construction of additional parking for the Police N Department and authorizing the issuance of Temporary Notes and/or General Obligation Bonds of the City to pay the costs thereof. Aye: (4). Nay: (0). Motion carried. (7.2) Resolution No. 19-7678 authorizing and providing for replacement of irrigation system at the Municipal Golf Course and authorizing the issuance of Temporary Notes and/or General Obligation Bonds of the City to pay the costs thereof. Debbie Pack, Director of Finance & Administration, explained the project, request, fiscal impact and action options. Commissioner Hoppock asked if there were other projects to be completed under the Parks Master Plan would there be funds available in the property tax fund. Ms. Pack stated if this project was approved, there would not be additional funds available in this fund but could be in other funds or utilizing cash. Gina Riekhof, Gilmore & Bell, explained the funding options for the project and Charter Ordinance No. 39. Commissioner Hodges asked if the Charter Ordinance was the home rule power. Ms. Riekhof stated there was a provision in the Kansas Constitution that permitted home rule powers and continued to explain State Statute KSA 13-1024A and Charter Ordinance No. 39. Commissioner Hodges asked if the City of Salina had maxed out the limit on a project in the charter ordinance in the past and continued to fund the project in the next year through the same charter ordinance. Ms. Riekhof stated she was not aware of it occurring in the past but mentioned that Charter Ordinance No. 39 did waive the election requirement. Commissioner Hay asked when the project was actually supposed to start. Scott Garrie, Deputy Director of Parks & Recreation, stated the intent was to have the project start after September but had received some feedback wanting the construction to start sooner. Mike Hargrave, Golf Course Manager, stated the main lines were scheduled to be dug in late July and early August and begin the laterals by early September. Commissioner Hoppock asked what the major deficiencies were and what would happen if nothing was done. Mr. Garrie stated the budget for irrigation maintenance was $15,000 yearly and the cost continues to increase on a yearly basis. Mr. Hargrave stated the maintenance of the system continues to take additional time of the maintenance staff. Commissioner Hodges stated that the system had been depleting for at least 10 years. Mr. Hargrave stated at least if not longer. Commissioner Hoppock asked who was performing the cash flow analysis of the property tax fund. Ms. Pack stated there was an amortization schedule attached to agenda item 7.4. Michael Schrage, City Manager, stated staff had conversations with bond counsel on refinancing the bonds to even out the amortization schedule in the future. Ms. Pack stated she performed the amortization schedule and explained the schedule created. Page 2 Commissioner Hodges asked for information on the debt service fund. Ms. Pack stated the debt service fund balance at the end of 2018 was $600,000. She continued to provide information on projects within the debt service fund. Jon Blanchard, 1117 State Street, provided information on Charter Ordinance No. 39, his thoughts on the project and asked the City Commission to look at additional alternatives for financing. Commissioner Hodges asked if the City Commission would like to amend the charter ordinance what that would look like. Mr. Schrage stated it would need to be prepared and brought back for consideration and asked if Ms. Riekhof would explain the amendment requirements. Ms. Riekhof stated staff would need to know what the amendment to the charter ordinance would be. She asked Greg Bengtson, City Attorney, if the ordinance could be approved on two readings on the same date. Greg Bengtson, City Attorney, stated the ordinance would be able to be approved on both readings on the same day with a 2/3 majority vote. Ms. Riekhof further stated the ordinance would require two (2) readings with a 2/3 majority vote and once passed the ordinance would need to be published once a week for two weeks and a 60 day protest period before the charter ordinance would go into effect. Mayor Davis asked if bond counsel could review the options for the $500,000 balance. Ms. Riekhof stated lease purchasing, cash financing, phasing the project over multiple years, or resizing the project to fit the$1 million dollar amount. A conversation ensued between the City Commission regarding the financing options. Commissioner Hoppock asked if there was a reason Charter Ordinance No. 39 listed $1 million dollars for public parks. Mr. Schrage explained the history of the various charter ordinance adoptions. Mayor Davis provided his thoughts on the current request and Charter Ordinance No. 39. Mr. Bengtson stated the amount was not the crucial amendment to addressing the policy decision. He further stated the charter ordinance would need to be amended to limit the bonding amount and the overall project cost. He continued to state the charter ordinance limited the bonding of the project not the project amount and Gilmore & Bell would not have offered this financing option if it was not in line with the charter ordinance. Commissioner Hay asked if the charter ordinance was amended what affect would it have on Agenda Item 7.4. Mr. Schrage stated the debt service financing of the irrigation project would not be able to occur until the charter ordinance amendment went into effect. Mr. Schrage stated if the commission wanted to debt finance $1 million dollars and cash finance the 5300,000, conversations would need to occur on the effect on other projects. Commissioner Hodges provided her thoughts on cash financing the remainder of the project. 19-0067 Moved by Commissioner Hoppock, seconded by Commissioner Hay, to adopt Resolution No. 19- 7678 authorizing and providing for replacement of irrigation system at the Municipal Golf Course and authorizing the issuance of Temporary Notes and/or General Obligation Bonds of the City to pay the costs thereof. Aye: (3). Nay: (1) Hodges. Motion carried. (7.3) Resolution No. 19-7676 authorizing and providing for improvements to Broadway Boulevard from Crawford Street north to Ash Street and authorizing the issuance of Page 3 Temporary Notes and/or General Obligation Bonds of the City to pay the costs thereof. Debbie Pack, Director of Finance & Administration, explained the project, request, fiscal impact and action options. E Commissioner Hodges asked what the investment was on the project so far. Jim Kowach, Director of Public Works, stated approximately 550,000. & Commissioner Hodges asked about the scope of the project changing. Mr. Kowach stated li = staff would like to look at the entire project and thought there was a need for additional 8 engineering and would like to bring the item back for additional scoping. Michael Schrage, City Manager, stated staff asked RDG Planning & Design if the project was paired down would it be able to fit in the $3 million dollar budget. Commissioner Hoppock provided his thoughts on the project and the need for further discussions prior to spending the additional money for design. Mayor Davis asked what the properties would look like beyond the sidewalk. Mr. Schrage stated it was more of a master plan or land use factor and continued to explain what the project would look like if it was phased out. Lauren Driscoll, Director of Community & Development Services, stated the improvements recommended in the plan would fall within the Comprehensive Plan. Mayor Davis provided his thoughts to the uses of some of the properties and the driveway 1 entrances. A conversation ensued between the City Commission, Ms. Driscoll and Mr. Schrage regarding the project plan. Commissioner Hodges provided her thoughts on the project and eliminating the budget for brick street maintenance. Mr. Schrage stated this project had been the topic of conversation for years and if the Governing Body had a concern for the design expense, staff could break up the design of the project. Commissioner Hodges stated she would like the project to be part of the Strategic Planning session coming up in April. Commissioner Hay asked if they could look at option 2. Mr. Schrage stated the item could be postponed or could be brought back at a later date. Mr. Kowach stated the project area was close to needing a pavement overlay but there was need of additional investigation of whether the project would need to be completely rebuilt or just a pavement overlay and the investigation would cost approximately $50,000. 19-0068 Moved by Commissioner Hodges, seconded by Commissioner Hay, to postpone consideration of Resolution No. 19-7676 authorizing and providing for improvements to Broadway Boulevard from Crawford Street north to Ash Street and authorizing the issuance of Temporary Notes and/or General Obligation Bonds of the City to pay the costs thereof with any additional information supplied by staff to Monday, May 6, 2019. Aye: (4). Nay: (0). Motion carried. The City Commission recessed at 5:45 p.m. for a 5 minute break. The meeting resumed at 5a0 p.m. (7.4) General Obligation Bonds and Temporary Notes. Page 4 (7.4a) Resolution No. 19-7682 authorizing the offering for public sale of General Obligation Temporary Notes and Bonds. (7.4b) First reading Ordinance No. 19-10994 authorizing the issuance and delivery _ of General Obligation Internal Improvement Bonds, Series 2019-A. w Debbie Pack, Finance Director, explained the request, fiscal impact and action options. Commissioner Hodges appreciated the extra time and additional information provided by staff and thanked Ms. Riekhof for coming today and preparing a memo regarding the state statutes. 0 U Michael Schrage, City Manager, stated one of the items financed was the Pheasant Ridge Addition project and staff chose to put the financing mechanism first then the action for the contract. Jon Blanchard, 1117 State Street, provided his thoughts on the bonding of the downtown streetscape project especially the overhead structures, provided information on the main traffic way act and asked if the legislature intended for overhead structures, benches, trash receptacles and plazas to be part of the main traffic way act. He asked if we were funding part of the downtown streetscape project with STAR Bond money. Mr. Schrage stated the accounting demonstrated how the STAR Bond money would be used. A conversation ensued between Mr. Blanchard, Ms. Pack and Mr. Schrage regarding the financing of the Downtown Streetscape project. Mr. Schrage read a portion of the language included in the staff report from January 17, 2017 pertaining to the scope of the Downtown Streetscape project. 19-0069 Moved by Commissioner Hoppock, seconded by Commissioner Hay, to adopt Resolution No. 19- 7682 authorizing the offering for public sale of General Obligation Temporary Notes and Bonds. Aye: (3). Nay: (1) Hodges. Motion carried. 19-0070 Moved by Commissioner Hoppock, seconded by Commissioner Hay, to pass Ordinance No. 19- 10994 authorizing the issuance and delivery of General Obligation Internal Improvement Bonds, Series 2019-A on first reading. Ave: (3). Nay: (1) Hodges. Motion carried. (7.5) Award contract for Pheasant Ridge Addition No. 3, Phase II, Project No. 80025. Jim Kowach, Director of Public Works, explained the project, bids received, fiscal impact and action options. Commissioner Hodges asked if there was an overage, would the City be responsible for it. Mr. Kowach stated if there were changes or modifications to the plan, it would be the responsibility of the City. Mayor Davis asked if there were modifications would staff meet with the contractor to discuss. Mr. Kowach stated yes. Joan Ratzlaff, Salina, asked what the prices would be for the houses and lots in the subdivision. Todd Welsh, 221 S. Morris Drive, stated the homes would be in the $225,000 to 1 S325,000 range and the lot prices would remain at $35,000 each. He provided information on the project bids and asked the contingency amount to be returned to the developer instead of to reduce the special assessments. Ms. Ratzlaff provided her thoughts on the Broadway Boulevard Improvements and the Page 5 need for affordable housing. Wayne Nelson, Civil Engineer II, stated the construction contingency allowed for change orders to occur in the field, up to the approved amount and if there was remaining contingency the project final cost would come under the approved amount and the special assessments would be reduced based on the project final cost. Michael Schrage, Cit, Manager, asked in the event the project comes in without using the N contingency would the developer's expenses be eligible for reimbursement. Gina Riekhof, Gilmore & Bell, stated a portion of the money paid upfront by Mr. Welsh could be returned if it remained unused. Mr. Schrage stated it was possible the remaining amount could be returned to Mr. Welsh but that would have to be determined at the end of the project. A conversation ensued between the City Commission, Mr. Schrage, Mr. Kowach and Mr. Welsh regarding the ability to refund any remaining construction contingency to the developer. 19-0071 Moved by Commissioner Hay, seconded by Commissioner Hoppock, to award contract for the Pheasant Ridge Addition No. 3, Phase II, Project No. 80025 to APAC-Kansas in the amount of $509,233.15 with a 5% construction contingency of $25,461.66 for a total of $534,694.81. Aye: (3). Nay: (1) Hodges. Motion carried. (7.6) Acceptance transfer of ownership of the Former Schilling Air Force Base Treatment Plant property (Water Well Road & Ohio Street), five water well sites and water transmission lines. Martha Tasker, Director of Utilities, explained the acceptance, the project and action options. Mayor Davis asked if there was a specific change in the motion. Ms. Tasker stated the language should state the Former Schilling Air Force Base Water Treatment Plant Property. Greg Bengtson, City Attorney, stated Tract 108 and 111 were owned by fee title by the Salina Airport Authority and would be owned by fee title by the City of Salina. He continued to state the remaining properties were considered as easements and would be assigned over to the City of Salina. He further stated that staff would be able to include additional information on the document for those easements due to information that was obtained by John Harvey, the City Surveyor. Mr. Bengtson explained the specific sections of the Kansas Limited Warranty Deed. 19-0072 Moved by Commissioner Hay, seconded by Commissioner Hoppock, to accept transfer of ownership of the Former Schilling Air Force Base Water Treatment Plant Property, Tract 108 and 111. Aye: (4). Nay: (0). Motion carried. (7.7) Approve Change Order No. 1 for the Brick Crosswalks, Project No. 80012C. Jim Kowach, Director of Public Works, explained the project, change order, fiscal impact 1 and action options. Commissioner Hodges asked if we were taking Brick Street Rehabilitation off the table. Mr. Kowach stated no, staff was going to pool money from other projects for a significant stormwater repair at the corner of Mulberry & Fifth Street. Page 6 Michael Schrage, City Manager, stated with the brickwork and the stormwater project at Mulberry and Fifth Street, there would be significant changes to the area. Mr. Kowach stated yes, that was correct. 19-0073 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to approve Change E Order No. 1 authorizing S4,529.10 (Option 2 bid amount minus previous authorization) plus a w 52,970.90 (12.1% of entire project) construction contingency for City Project No. 80012C Brick N Crosswalks. Aye: (4). Nay: (0). Motion carried. o DEVELOPMENT BUSINESS IS 6 (8.1) Application No. Z19-1, (filed by Joe Hill on behalf of the Joe Hill Trust), requesting a change in zoning district classification from I-2 (Light Industrial) to R-2 (Multi- Family Residential) to allow construction of two new residential dwellings at the southwest corner of Reynolds Street and Lincoln Avenue. (8.1a) First reading Ordinance No. 19-10996. Dean Andrew, Director of Planning, explained the request, Planning Commission recommendation and action options. Commissioner Hoppock asked if Mr. Hill owns the south part of the mobile home park but was just leaving it vacant. Mr. Andrew stated yes. Barb Young, 1100 West Grand, wanted to commend Joe Hill for his request for infill and wanted the item to be considered a positive move forward. 119-0074 Moved by Commissioner Hodges, seconded by Commissioner Hoppock, to pass Ordinance No. 19-10996 changing the zoning district classification from I-2 (Light Industrial) to R-2 (Multi-Family Residential) to allow construction of two new residential dwellings at the southwest corner of Reynolds Street and Lincoln Avenue on first reading. Aye: (4). Nay: (0). Motion carried. (8.2) First reading Ordinance No. 19-10995 requesting annexation of the South Water Treatment Plant site located at the southeast corner of South Ohio Street and East Water Well Road. Dean Andrew, Director of Planning, explained the request, stated due to the property not being contiguous with the city limits, the property could only be annexed in with the consent of the Saline County Commission which would require an additional action to approve a resolution that staff has distributed to the commission, and the ordinance. Mr. Andrew asked legal counsel if the motion for the ordinance should be made first. Greg Bengtson, City Attorney, stated yes. He also stated the Kansas Limited Warranty Deed was in hand for signature. Commissioner Hodges asked if staff had approached county staff regarding the annexation and if they were in approval of the annexation. Mr. Andrew stated staff would work with the County Administration to take this item to the Saline County Commission. Mr. Bengtson stated it would depend if the county would hold fee interest of the road in question and stated if the road annexation and impact fee agreement remained active, the county would not require annexation of the road. Mr. Andrew stated the County Counselor was aware of the request and he would be working with the Saline County Planning Department tomorrow to discuss the request. Jon Blanchard, 1117 State Street, stated the population information would be available soon Page 7 and there needed to be a conversation on the potential increases in water bills in the future. Commissioner Hodges stated there was no fiscal impact of the item today and would complete getting the property under our control. 19-0075 Moved by Commissioner Hodges, seconded by Commissioner Hay, to pass Ordinance No. 19- 10995 requesting annexation of the South Water Treatment Plant site located at the southeast w corner of South Ohio Street and East Water Well Road on first reading. Aye: (4). Nay: (0). Motion N carried. 19-0076 Moved by Commissioner Hodges, seconded by Commissioner Hoppock, to adopt Resolution No. ci 19-7688 requesting the Board of Saline County Commissioners to determine the advisability of the annexation of a tract of land into the City of Salina, Kansas and give its consent to such annexation. Aye: (4). Nay: (0). Motion carried. OTHER BUSINESS (9.1) Request for executive session (legal). I move the city commission recess into executive session for _ minutes to discuss the subject of negotiations relating to site acquisition for the Police Training Center/Range with legal counsel 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. ,19-0077 Moved by Commissioner Hodges, seconded by Commissioner Hoppock, to recess into executive session for 30 minutes to discuss the subject of negotiations relating to site acquisition for the Police Training Center/Range with legal counsel 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 8:05 p.m. Aye: (5). Nay: (0). Motion carried. The City Commission took a 5 minute break at 7:30 p.m. and recessed into executive session at 7:35 p.m. and reconvened at 8:05 p.m. No action was taken. 19-0078 Moved by Commissioner Hodges, seconded by Commissioner Hoppock, to recess into executive session for 10 minutes to discuss the subject of negotiations relating to site acquisition for the Police Training Center/Range with legal counsel 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 8:16 p.m. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 8:06 p.m. and reconvened at 8:16 p.m. No action was taken. ADJOURNMENT 19-0079 Moved by Commissioner Hay, seconded by Commissioner Hodges, that the regular meeting of the IBoard of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 8:16 p.m. Page 8 <414j m+i) [SEAL] Trent W. Davis, M.D., Mayor ATTEST: ( tOLQ- '' '. ^^r n z Shandi Wicks, CMC, City Clerk N O O U 11 II Page 9