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05-13-2019 Minutes CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS May 13, 2019 4:00 p.m. The City Commission convened at 2:30 p.m. for Continuous Process Improvement Process 2 Overview and at 3:45 p.m. for Citizens Forum at City-County Building, Room 107. g 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, Mike Hoppock, and Karl Ryan. Also present: Michael Schrage, City Manager;Jacob Wood, Deputy City Manager; Greg Bengtson, City Attorney; and Shandi Wicks,City Clerk. AWARDS AND PROCLAMATIONS (3.1) The day of May 18, 2019 as "Kids to Parks Day" in the city of Salina. Sam Stone, Parks &Recreation Advisory Board Youth Member, read the proclamation. (3.2) The day of May 15, 2019 as "Peace Officers' Memorial Day" and the week of May 12-18, 2019 as "Police Week" in the city of Salina. Chief Brad Nelson read the proclamation and announced associated events. CITIZENS FORUM None. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. CONSENT AGENDA (6.1) Approve the minutes of May 6, 2019. 19-0138 Moved by Commissioner Ryan, seconded by Commissioner Hodges, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. ADMINISTRATION (7.1) Resolution No. 19-7711 authorizing the Mayor to execute an agreement with Saline County addressing matters relating to the construction of the South Water Treatment Plant. Michael Schrage, City Manager, explained the request, concerns of Saline County, the agreement, annexation of the property, the fiscal impact and action options. I19-0139 Moved by Commissioner Hay, seconded by Commissioner Ryan, to adopt Resolution No. 19-7711 authorizing the Mayor to execute an agreement with Saline County addressing matters relating to 1 the construction of the South Water Treatment Plant. Aye: (5). Nay: (0). Motion carried. 1 Page 1 (7.2) Financial Discussion. Michael Schrage, City Manager, briefly explained the discussions that would occur and mentioned that the documents provided via email last Friday were a work in progress and final versions were supplied to the commission. Chris Cotten, Director of Parks & Recreation, presented information on Bill Burke Park and East Crawford Recreation Area including recommendations from the Parks Master Plan, the renditions from Baseball Enterprises. Mr. Schrage also provided information on the completed projects for both parks and the future projects to be completed. 79, Commissioner Hay stated he noticed the information did not include the drainage issues at East Crawford Recreation Area. Mr. Cotten stated staff was working with Engineering to determine a solution for the drainage issues at Dean Evans Stadium. Mr. Schrage asked if the Parks Master Plan included the drainage issue at East Crawford Recreation Area. Mr. Cotten stated that the plan did identify the drainage problems at Bill Burke Park specifically and mentioned the water running down the runway only. Mr. Schrage explained the Budget/Financial Discussion PowerPoint Presentation including 2019 Budget Revisions, identified projects, revenue sources, sales tax, sales tax capital and funding schedule. Debbie Pack, Director of Finance & Administration, explained the trends of the sales tax and franchise fees. Mr. Schrage provided additional information on the franchise fees. Commissioner Hoppock asked if there was a report that showed delinquent sales tax distributions. Ms. Pack stated the report does show what date range the sales tax payment covered. Commissioner Hoppock asked if the State had a way to collect the sales tax on a more regular basis. Ms. Pack stated there was an enforcement aspect of the State's system. Mr. Schrage stated the retailer's submission of their sales tax at different times was based on their level of sales. Ms. Pack stated that some retailers submit their sales tax payments monthly,quarterly, twice a year and yearly. Mr. Schrage continued to provide information from the presentation related to the sales tax including the franchise fees. Commissioner Hoppock asked if the franchise fees were earmarked for something specific or just went into the general fund. Mr. Schrage stated the fees were not placed in a specific fund. Commissioner Hodges stated that she had recently heard that the FCC was looking to reduce the amount received from Cox for the additional amount to go to the PEG providers. Mr. Schrage continued to provide information from the presentation related to the sales tax including the Transient Guest Tax, new revenue, revenue generation, peer comparisons, debt financing assumptions, identified projects (wants/needs), and Transient Guest Tax Assumptions. The City Commission recessed at 5:25 p.m. for a 5 minute break. The meeting resumed at 5:32 p.m. Page 2 A conversation ensued between the City Commission, Ms. Pack and Mr. Schrage regarding the budget revisions. Commissioner Ryan asked if the Emergency Communications System included the ongoing maintenance. Mr. Schrage stated yes. A conversation ensued between the City Commission and Mr. Schrage regarding the identified projects (wants/needs). Commissioner Hodges asked if staff wanted a list of how each commissioner ranked the identified projects. Mr. Schrage stated yes. He continued to state feedback from the Commissioners would be helpful including the financing terms, the options, the funding source and the project priority list. Greg Bengtson,City Attorney, stated that based on the topic, it would be best handled in an open meeting. Mr. Schrage stated staff could put together a worksheet for a future open public meeting discussion. A conversation ensued between the City Commission and Mr. Schrage regarding the Groundwater Contamination Cleanup. Commissioner Hoppock asked if staff could determine what dollar amount would be for the deferred maintenance in parks not including baseball, softball and tennis. Mr. Schrage stated staff could put together information and provide it to the commission. Commissioner Hoppock asked for additional information on the Kenwood Park/Expo Center Improvements project to help determine where it would fall on his priority list. Jim Kowach, Director of Public Works, asked the City Commission to think about how they may want to dial the street improvements project back to account for the sales tax collected. A conversation ensued between the City Commission, Mr. Kowach and Mr. Schrage regarding the street improvements and the amount of sales tax collected. Mr. Schrage explained the Sales Tax Capital Funding Schedule. A conversation ensued between the City Commission and Mr. Schrage regarding the Sales Tax Capital Funding Schedule. Mr. Schrage stated that staff could flush out the Sales Tax Capital Funding Schedule and provide that information to the City Commission for their thoughts. Commissioner Hodges asked what the TPEC Operations amount was. Ms. Pack stated it was in the $225,000 to$265,000 amount. Commissioner Hodges stated that she did not see it listed and asked if there was a cap. Mr. Schrage stated he thought there was one but staff would look at it. Mayor Davis asked if any of the amounts go up due to inflations. Mr. Schrage stated the entire spreadsheet accounted for inflations. Mayor Davis asked about the Capital Equipment amount. Ms. Pack stated that amount was determined as part of the Capital Improvement Program. Commissioner Hoppock asked to hear from Visit Salina on the increase to the Transient Guest Tax. Sylvia Rice, Visit Salina, provided information on the concerns of the hoteliers and the concerns of Visit Salina. Commissioner Hoppock asked how our room rates compare to other communities. Ms. Rice stated that Salina had more of a wider range of room rates than most communities. A conversation continued to ensue between the City Page 3 Commission and Ms. Rice regarding the Transient Guest Tax. Commissioner Hoppock asked if Visit Salina could provide specific information on the tennis, softball and baseball events. Ms. Rice stated that they had provided that information before and could provide it again. Commissioner Hodges thanked the Visit Salina staff for all of their hard work in making the Transient Guest Tax continue to increase. Mr. Schrage provided additional information on the Transient Guest Tax allocation. Mr. Schrage asked if the City Commission had questions relating to the peer comparisons for sales tax, transient guest tax, mill levy and debt per capita. No questions were asked. Mr. Schrage asked if the City Commission had questions relating to the debt financing assumptions,current debt service and the identified projects with assumptions listed. • Commissioner Hoppock asked what the sales tax rate was before the sales tax rate increase in 2016. Mr. Schrage stated it was 8.40%. Commissioner Hoppock provided his thoughts on the sales tax levels and the need to perform maintenance on facilities. Commissioner Hodges pointed out some big ticket items on the CIP pending consideration list, South Well Field and Water Treatment Plant. She continued to ask everyone to be mindful of all projects not just sales tax projects. Mayor Ryan stated that we need to keep up with our assets and be mindful of everything we need to offer up for the betterment of our community. Clark Renfro, on behalf of the Salina Net Generation Group, provided information on the tennis facilities in the community and their proposal. Commissioner Hay asked what role Genesis played into this. Mr. Renfro stated as part of an agreement with the City of Salina, they provide services to individuals in the sport of tennis. Mr. Schrage stated with respect to this project, their role could possibly be a donor or continue to provide services. Mayor Davis asked if there would be spectator seating for the tournaments. Mr. Renfro stated there would be some type of seating for the tournaments with views to every court. Commissioner Hay asked if the City of Salina was looking at between 51.5 and $1.75 million. Mr. Renfro stated yes, it could be lower. Commissioner Hay asked what we would do with the neighborhood courts and what would it cost to clear them out. Mr. Schrage stated it would depend if there was a desire to keep the neighborhood courts or remove them. Mr. Renfro provided information on the continued discussions with USD No. 305 on their current use and future use of the courts. He continued to discuss the possible future uses of the current neighborhood courts. Mr. Schrage stated there was not a disagreement with staff on the current condition of the courts and the need for future maintenance. Tom Perrin provided information on the type of concrete for use of tennis courts and the life expectancy of the courts utilizing that type of concrete. Commissioner Hoppock asked who owned the tennis courts at Central High School. Mr. Renfro stated USD No. 305 owns them and would lease them out. He continued to state that Kansas Wesleyan University would possibly have interest in the use of the courts. Page 4 Commissioner Hodges asked why the number of courts were reduced from 16 to 12. Mi. Renfro stated that the group had looked at the numbers between the presentation last summer and now. He further stated the footprint would make it cost effective to install courts and have the potential to add additional courts in the future and not make any short cuts. Commissioner Hodges asked if the tennis group would be willing to enter into a development agreement that called out court replacement including maintenance of the facility. Mr. Renfro stated that he thought it would be workable to have that conversation. Commissioner Hodges provided her thoughts on the project being included in the economic development of the community. Mr. Schrage provided.information on staff trying to identify the future maintenance of the facility. Mr. Renfro provided information on the associations and their current tournament stops and the group's conversations with the various tennis associations. Mr. Renfro & Mr. Perrin narrated a flyover of the future of a facility with 16 courts. Jason Beets, Salina Journal, asked for the life span of the Emergency Communication System. Mr. Schrage stated 15 years was the useful life of the system and explained what the system would include. Mr. Beets asked if the city was allowed to levy income taxes. Mr. Schrage stated it was not an allowed option in our jurisdiction. Mr. Schrage stated staff could provide a list of questions for the next conversation. Commissioner Hodges stated it would be helpful to know how much would be reduced from the deferred parks maintenance with the tennis and baseball projects. Commissioner Hoppock stated it would be helpful to know the fees associated with the new baseball fields. Commissioner Hodges asked if the baseball project could be broken out to remove the Kansas Wesleyan University buildings from the City's portion of the project. Commissioner Hoppock stated that we at least owe Baseball Enterprises some answers. Mayor Davis asked how many tennis courts the proposal would include. Mr. Perrin stated the $2 million would be 12 courts and the $2.4 million would cover the 16 courts. He continued to state that it did not include the building. Mr. Renfro stated there was dialogue with USD No. 305 that could change the discussions. Mayor Davis asked if South High School had their own tennis courts. Mr. Renfro stated no, Central High School was the only school to have their own courts. Commissioner Hodges asked what the cost was for 12 courts. Mr. Renfro stated the cost was 51.950 million for 12 courts. DEVELOPMENT BUSINESS None. OTHER BUSINESS Michael Schrage, City Manager, stated there was a third topic that the City Commission could make a motion to add. Paee 5 Greg Bengtson, City Attorney, stated the subject would fall under the attorney client privileged discussion and would add a (b) to the current 9.2 and be listed as preliminary discussions regarding the circumstances surrounding a potential claim by the City. "I Mayor Davis asked for a 5 minute recess before the executive session. (9.1) Request for executive session (trade secrets). I move the city commission recess into executive session for minutes to discuss B the subject of specific economic development prospects based upon the need to discuss data relating to financial affairs or trade secrets of corporations, partnerships, trusts, and individual proprietorships pursuant to K.S.A. 75- 4319(b)(4). The open meeting will resume in this room at p.m. 19-0140 Moved by Commissioner Hodges, seconded by Commissioner Hay, to recess into executive session for 30 minutes to discuss specific economic development prospects based upon the need to discuss data relating to financial affairs or trade secrets of corporations, partnerships, trusts, and individual proprietorships, pursuant to K.S.A. 75-4319(b)(4). The open meeting will resume in this room at 7:50 p.m. Aye: (5). Nay: (0). Motion carried. The City Commission recessed for a 6 minute recess at 7:14 p.m. and recessed into executive session at 7:20 p.m. and reconvened at 7:50 p.m. No action was taken. (9.2) Request for executive session (legal). I move the city commission recess into executive session for _ minutes to discuss the subjects of(a) negotiations with Saline County relating to the Expo Center Lease agreement and unrelated (b) preliminary discussions regarding the circumstances surrounding a potential claim by the City, 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. 75-7319(b)(2). The open meeting will resume in this room at p.m. 19-0141 Moved by Commissioner Hodges, seconded by Commissioner Ryan, to recess into executive session for 30 minutes to discuss the subjects of (a) negotiations with Saline County relating to the Expo Center Lease agreement and unrelated (b) preliminary discussions regarding the circumstances surrounding a potential claim by the City, 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. 75-7319(b)(2). The open meeting will resume in this room at 8:24 p.m. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 7:56 p.m. and reconvened at 8:24 p.m. No action was taken. 19-0142 Moved by Commissioner Hodges, seconded by Commissioner Hoppock, to recess into executive session for 30 minutes to discuss the subjects of (a) negotiations with Saline County relating to the Expo Center Lease agreement and unrelated (b) preliminary discussions regarding the circumstances surrounding a potential claim by the City, 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. 75-7319(b)(2). The open meeting will resume in this room at 8:55 p.m. Aye: (5). Nay: (0). Motion carried. Page 6 The City Commission recessed into executive session at 8:25 p.m. and reconvened at 8:55 p.m. No action was taken. ADJOURNMENT 19-0143 Moved by Commissioner Ryan, seconded by Commissioner Hoppock, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 8:55 p.m. N <ti-etrI"jbUVII)[SEAL] Trent W. Davis, M.D., Mayor ATTEST: Shandi Wicks, CMC, City Clerk • Page 7