06-17-2019 Minutes CITY OF SAMNA,KANSAS
REGULAR MEETING OF THE BOARD OF COMMISSIONERS
June 17,2019
4:00 p.m.
The City Commission convened at 2:00 p.m. for the Lower Smoky Hill Water Supply Access
District, Inc 3rd Quarter/Annual Board Meeting; 2:30 p.m. for Budget: Capital Improvement
Program (CIP), Sub-CIP Plans and at 3:45 p.m. for Citizens Forum at City-County Building, Room
107.
5 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
None.
CITIZENS FORUM
Byron Tomlins, provided information on a proposal presented to the City Commission
earlier from Salina Athletic Partners, a group consisting of Salina Baseball Enterprises, Visit
Salina, USD 305, Sacred Heart High School and Kansas Wesleyan University, and
requested an answer to their proposal and would like to ask for a vote within two (2) weeks
on the baseball project. He continued to state that they were moving forward with the patio
project at Dean Evans Stadium to be paid entirely by Salina Athletic Partners, the need for a
meeting with the City of Salina on the drainage issue at East Crawford Recreation Area and
spoke of grants and the need to meet the timeline. He further provided information on the
requests to name the new premiere baseball stadium and two new premiere softball
stadiums and name the East Crawford Recreation Area (ECRA) facility and form a
maintenance committee to help cover the maintenance of the facilities in the future and
coordinate fees for the facilities.
Mayor Davis asked if the program was approved what was the timeline to complete the
project. Mr. Tomlins stated February 2021. Mayor Davis stated there had been some
discussions and continued discussions would continue next Monday and asked that Mr.
Tomlin get with the city manager to discuss the specifics of the project.
Commissioner Ryan stated he would like to see what the conversation with the city
manager does.
Commissioner Hodges stated they had a good list of questions for the city manager and
asked if letters of commitment could be provided from the other entities involved in the
prospective project.
Tyler Henoch, President of Salina Baseball Enterprises, provided information on
tournaments potentially interested in moving to Salina if the project goes through. He
continued to provide information on tournaments and games moving to other cities along
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with the conditions of the ballfields in Salina.
Bill Neale, Kansas Wesleyan University Head Baseball Coach, provided information on the
games played by the university and the cost of playing the games at other communities.
Ryan Holzow, Salina Spikes Organization, provided information on other facilities renting
their fields for an entire spring and did not charge their league students to play.
Joan Ratzlaff, Salina, wanted to follow-up on the forum in the study session room and
thanked Commissioner Hodges for bringing up the request to film the study sessions. She
continued to provide her thoughts on the conversation in the study session. She further
provided information from the ethics policy and asked who the special ethics counsel was.
Mayor Davis stated if we have an issue that the City Attorney could not properly handle
then they have outside counsel. Ms. Ratzlaff suggested that the City Commission have a list
of attorney's to pick from. Mayor Davis stated it was very infrequent so they did not have
an attorney list.
A baseball player asked the City Commission to vote yes on the project.
Daniel Eckhoff, 655 Highland, provided information of the financial situation the City of
Salina was currently in and mentioned the policy that city employees could not put
political signs in their yards and provided his thoughts on it and the need for a review of
the policy. Michael Schrage, City Manager, stated political signs were not permissible for
City employees for City elections and provided information on the policy.
Cooper Taggart, Salina Spikes Organization, provided information on the players and their
families patronizing restaurants in the community on tournament weekends, and the
condition of the baseball fields.
Commissioner Hay stated he was overwhelmed and impressed at the turnout on the
request and thanked them for coming and stated the City Commission could not miss the
boat on it.
Commissioner Hoppock provided his thoughts on the condition of the fields and
concession stands and the economic impact. He asked how many baseball players in
attendance had practiced in the fieldhouse. A good majority of the ball players raised their
hands. He further stated his opinion was to pay the City's portion through transient guest
tax.
Kelly Kitchener, Salina Kings, provided his thoughts on the condition of the ballfields and
the request.
Darrin Pittenger, Salina, provided his thoughts on the types of athletics available and
needed in the community.
Darrin Loss,Salina Spikes Organization, stated if you build it, they will come.
Norman Mannel, Salina, asked where we were going to get the taxes to pay for the project
and provided his thoughts on the request.
Tyler Henoch stated that Salina Baseball and American Legion Baseball had been in the
community for 89 years and planned to remain in the community for many years.
The City Commission recessed at 4:44 p.m. for a 4 minute break. The meeting resumed at
4:48 p.m.
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•
PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME
None.
inin CONSENT AGENDA
(6.1) Approve the minutes of June 10, 2019.
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i (6.2) Approve Resolution No. 19-7715 authorizing the City Manager to enter into an
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agreement with Travelers Property & Casualty Co of America/The Travelers
Indemnity Company for the renewal of the City's Comprehensive
Property/Casualty Insurance Program.
(6.3) Approve Resolution No. 19-7713 authorizing the City Manager to execute a three
and one-half year agricultural lease agreement with Mattison and Son Farms, LLC
for the North Marymount Road Tract 1-4 City agricultural property.
(6.4) Approve Resolution No. 19-7717 authorizing the City Manager to execute an
agreement with Allie Burris to provide indigent counsel services for the Salina
Municipal Court.
(6.5) Approve calling a special study session of the City Commission to tour the Salina
Parks system on Friday,June 21st beginning at 7:30 a.m.
Commissioner Hodges requested that Item 6.5 be removed from the consent agenda.
Mayor Davis requested that Item 6.4 be removed from the consent agenda.
19-0171 Moved by Commissioner Ryan, seconded by Commissioner Hay, to approve the consent agenda
less Agenda Items 6.4 and 6.5. Aye: (5). Nay: (0). Motion carried.
(6.4) Approve Resolution No. 19-7717 authorizing the City Manager to execute an
agreement with Allie Burris to provide indigent counsel services for the Salina
Municipal Court.
Mayor Davis asked if the only circumstance that indigent counsel could be
provided was when the possibility existed that the defendant could be incarcerated
if found guilty. Judge Brenda Stoss stated the municipal court did not have to
appoint counsel unless the defendant would be incarcerated, in other circumstances
the defendant would have to find their own legal counsel.
19-0172 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to approve Resolution
No. 19-7717 authorizing the City Manager to execute an agreement with Allie Burris to provide
indigent counsel services for the Salina Municipal Court. Aye: (5). Nay: (0). Motion carried.
Commissioner Hodges called out risk management Nancy Schuessler for her hard
work on the Property/Casualty Insurance renewal and noted the rate decrease.
(6.5) Approve calling a special study session of the City Commission to tour the Salina
Parks system on Friday,June 21st beginning at 7:30 a.m.
0 Commissioner Hodges mentioned the special study session to tour the Salina Parks
system on Friday, June 21, 2019 at 7:30 a.m. and asked if the parks master plan
matrix was provided to the public. Michael Schrage, City Manager, stated yes, the
matrix and the criteria was included in the packet.
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Commissioner Hodges asked if there would be arrangements made for members of
the public. Mr. Schrage stated yes, the transportation would depend on the type of
transportation used.
Commissioner Hoppock stated due to work commitments, he may not be able to
attend the entire day.
19-0133 Moved by Commissioner Hodges, seconded by Commissioner Hay, to approve calling a special
study session of the City Commission to tour the Salina Parks system on Friday, June 21s1
beginning at 7:30 a.m. Aye: (5). Nay: (0). Motion carried.
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ADMINISTRATION
(7.1) Second reading Ordinance No. 19-11002 amending the Future Land Use Map
(Figure 2.1) of the Salina Kansas Comprehensive Plan to change the future land use
designation of property located at the west end of Coachlight Lane west of North
9th Street and south of I-70 from future Conservation Area to future Commercial.
Mayor Davis noted that Ordinance No. 19-11002 was passed on first reading on June 10, 2019 and
since that time no comments have been received.
Joan Ratzlaff, Salina, provided her thoughts of changing the future land use plan.
19-0174 Moved by Commissioner Hay, seconded by Commissioner Hoppock, to adopt Ordinance No. 19-
11002 amending the Future Land Use Map (Figure 2.1) of the Salina Kansas Comprehensive Plan
to change the future land use designation of property located at the west end of Coachlight Lane
west of North 9th Street and south of I-70 from future Conservation Area to future Commercial on
second reading. A roll call vote was taken. Aye: (4) Hay, Hoppock, Ryan,Davis. Nay: (1) Hodges.
Motion carried.
(7.2) First reading Ordinance No. 19-11004 amending Chapter 8, Article III, Section 8-
172.1 and Section 8-175 of the Salina Code to add a new category of contractor
licensing for a Specialty Hood Suppression/Spray Booth Suppression Contractor.
Troy Long, Fire Marshal, explained the amendments, current request, proposed permit and
inspection process, fiscal impact and action options.
Commissioner Hoppock asked if this was for both new construction and remodels. Mr.
Long stated yes.
Commissioner Hodges asked if the fee was for the initial installation only or was there a fee
for the inspections. Mr. Long stated the only time the outstanding fee would be due was
when a permit was applied for separately to add a new hood suppression system.
Michael Schrage, City Manager, stated one permit would be issued for an all inclusive
permit with one fee but if it was a remodel a separate fee would be required for the
installation of the system.
Mayor Davis asked for the reason for licensing this type of contractor. Mr. Long stated they
were the only type of contractor that was not required a license. Mr. Schrage stated the
request was more to synchronize within our own code. Mr. Long stated when staff was
going through the permitting processes and code changes; it was found that this type of
trade was not included in the processes.
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19-0175 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to pass Ordinance No.
111 19-11004 amending Chapter 8, Article III, Section 8-172.1 and Section 8-175 of the Salina Code to
add a new category of contractor licensing for a Specialty Hood Suppression/Spray Booth
Suppression Contractor on first reading. Aye: (5). Nay: (0). Motion carried.
a.
(7.3) Compliance Engine Services.
(7.3a) First reading Ordinance No. 19-11005 amending Chapter 14, Article III,
Division 1 pertaining to the required electronic submittal of all fire and life
safety inspection reports to the fire department via a third-party
administrator designated by the City, or via an alternative method approved
by the fire chief.
(7.3b) Resolution No. 19-7718 authorizing the Mayor to execute an agreement with
Brycer, LLC for Compliance Engine services related to the tracking of fire
and safety system inspections in commercial businesses within the City of
Salina.
Troy Long, Fire Marshal, explained the amendments, agreement, fiscal impact and action
options.
Commissioner Hoppock asked if the required fee was paid for by all of the businesses. Mr.
Long stated the fee was typically paid for by the contractor but the fee would only be paid
for the 540 businesses that have the fire sprinkler, fire alarm, hood suppression and booth
systems.
Michael Schrage, City Manager, stated that staff would go to the businesses to determine
that the required inspections were being performed by a contractor. i14r. Long provided
additional information on the inspections of the businesses and how the new system would
work. Mr. Schrage provided additional information on how the new system would work.
19-0176 Moved by Commissioner Hodges, seconded by Commissioner Hay, to pass Ordinance No. 19-
11005 amending Chapter 14, Article III, Division 1 pertaining to the required electronic submittal
of all fire and life safety inspection reports to the fire department via a third-party administrator
designated by the City, or via an alternative method approved by the fire chief on first reading.
Aye: (5). Nay: (0). Motion carried.
19-0177 Moved by Commissioner Ryan, seconded by Commissioner Hay, to adopt Resolution No. 19-7718
authorizing the Mayor to execute an agreement with Brycer, LLC for Compliance Engine services
related to the tracking of fire and safety system inspections in commercial businesses within the
City of Salina. Aye: (5). Nay: (0). Motion carried.
(7.4) First reading Ordinance No. 19-11006 amending Section 7-34 of the Salina Code
pertaining to keeping of bees and repealing the existing section.
Jacob Wood, Deputy City Manager, explained the amendment, applications pending and
action options.
Commissioner Hoppock asked if the signage was required in the past ordinance. Mr. Wood
stated no, staff's intent was to allow the approved permit holders to be considered
approved without the sign requirement unless the City Commission would like that
requirement added to the permits issued in the past.
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Commissioner Hodges asked what the purpose of the signage was. Mr. Wood stated so
citizens would be aware that there were hives on the premises.
Commissioner Hay mentioned that at the inspection in April for the observation hive at
Lel Sacred Heart High School, the inspector recommended signage be posted to notify that
2 there were bees at that location. He continued to mention the distance requirement from
any school and stated he had been contacted by three additional schools who would like to
have observation bee hives which are actually inside the classroom and asked if the
B ordinance could be amended. Mr. Wood stated that requirement could be removed from
the ordinance.
Mayor Davis asked if the outside portion of the observation hive was in a part of the school
yard that was utilized by children. Commissioner Hay stated no and explained how the
observation hives worked.
Daniel Eckhoff, 655 Highland, asked why 4 hives were chosen. Mr. Wood stated it was the
best management practices that staff saw in other communities so that was why that
number was chosen.
Moved by Commissioner Hay, seconded by Commissioner Hodges, to pass Ordinance No. 19-
11006 amending Section 7-34 of the Salina Code pertaining to the keeping of bees and repealing the
existing section and removing the distance requirement for schools on first reading.
Mayor Davis asked if a property abutting a school playground had a hive 5 feet from the fence, we
would then have kids 5 feet from the hive. Michael Schrage, City Manager, stated it was definitely
a scenario and an alternative approach would be to make an exception for observation hives
placed on school property. He further explained that the school would be initiating the bees in
proximity to the school children versus removing the distance requirement all together, then as a
neighbor I could put it on an adjoining property line. He further stated that if that was of interest
to the City Commission, staff could come back on second reading with the amendment in place.
Greg Bengtson, City Attorney, stated we could expedite the parliamentary procedure aspects if the
mover would want to simply revise the motion along that line. He continued to state it would
certainly expedite the matter.
19-0178 Moved by Commissioner Hay, seconded by Commissioner Hodges, to pass Ordinance No. 19-
11006 amending Section 7-34 of the Salina Code pertaining to the keeping of bees and repealing the
existing section and add an exception for observation hives on school property on first reading.
Aye: (5). Nay: (0). Motion carried.
(7.5) Salina Media Connection Agreement Follow-Up.
Jacob Wood, Deputy City Manager, explained the history, possible expectations and
priorities, fiscal note and action options.
Commissioner Hay asked if we terminate the contract of July 1st does that mean the services
would end immediately. Mr. Wood stated the notification requirement was July 1st but the
agreement would actually end on December 31, 2019.
Commissioner Ryan asked if it was part of the contract to film the school board
presentations and asked if it was decided to look for another vendor would the vendor
need to take over filming for other public entities that were currently filmed. He further
stated that if that was the case, would we be looking to those other entities to be satisfied
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with the outsourcing the City of Salina selected. Michael Schrage, City Manager, stated
currently the county contributed a small amount. He continued to state staff had
inventoried the number of meeting locations and the number of meetings because those
were factors into the pricing that a vendor would provide. He further stated that staff may
have the opportunity to address the amount of meetings covered and the funding provided
by other agencies as part of this process. Mr. Wood stated there was one outside firm that
. staff had conversations with that would require $ 0,000 to $75,000 up front for equipment
• and approximately 5100,000 per year.
Mayor Davis asked when the study sessions could be filmed. Mr. Schrage stated he had
conversations with the executive director but those conversations since ended with the
executive director resigning. Mayor Davis stated he would be fine if the filming would cost
more and if the City of Salina would need to pay for the equipment.
Commissioner Hay asked if we went with Option 3 and went out for an RFP process could
Salina Media Connection submit a bid. Mr. Wood stated yes, we could provide notice to
terminate the contract and go out for an RFP process at the same time.
Commissioner Hodges stated she would like to see more information on what the costs
would be to get it started and ongoing in house and what adding another server would
look like.
Commissioner Hodges asked what other communities do. Mr. Wood stated staff did not
have enough information to provide. He did continue by stating that a few communities
utilized the company that staff had contacted.
Mr. Schrage stated there was not a good way to quantify viewership and to think of this in
a proposed approach.
Commissioner Hoppock stated he was with Commissioner Hodges and was in favor of
providing notice to Salina Media Connection (SMC). He continued by asking what the
purpose was for the two (2) channels and was the City of Salina paying for both of them.
Greg Bengtson, City Attorney, stated there were three (3) stations at one time and a
function of the statutory change, included a provision that the City of Salina could request
the PEG Access channels, up to as many as two (2) as long as the City took care of any
expenses associated with delivering that system to the point in the system where the video
service provider could simply transmit it. Commissioner Ryan stated the City's
responsibility was to pay for the content and they were the pipeline. Mr. Bengtson stated
yes, he was sure there were others in the room that could technically describe the point at
which the City had delivered that in a way that it could be transmitted.
Commissioner Hoppock stated he was in favor of having one (1) channel and doing it well
instead of having two (2) channels and not having the quality that we should have both in
content and actual broadcast footage.
Mayor Davis stated it was an opportunity for the City Commission to specify what we
expect and stated the need to allow Salina Media Connection to better their services.
Commissioner Hoppock asked if all of the programming could be done on one (1) channel.
Mr. Schrage stated he was not aware of a reason why you couldn't; it could be a volume
question that Mr. Stephens with SMC may be able to answer that.
Commissioner Hodges stated over the years, how we produce content had fundamentally
changed and preferred to focus on one thing and do it well but did not know if that was
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part of the mission of SMC.
Mayor Davis stated that was an opportunity that once you gave it up, you could never get
it back.
Greg Stephens, Salina Media Connection Chairperson, stated children watch TV 26 hours a
week and adults 40 hours a week and stated the trend for TV and cable was to bundle and
they are coming back with smarter ways of marketing their service and the trend of
bundling was keeping television going. He continued to state that PEG stood for Public
Education and Government and he did not think we would want to put political campaigns
on the same channel as government and city meetings. He further provided information
on how they could do more than they were currently doing and information on the
organization. He also provided information on the ability to begin filming the study
sessions now and film meetings at other locations live streaming.
Commissioner Ryan stated that he had mentioned that SMC could produce revenue on the
services they provide and asked for him to explain. Mr. Stephens stated the cable fees were
originally meant to fund access stations and they were required to be non-profit but
provided a list of entities they have worked with that could increase revenues.
Commissioner Ryan asked how many responses were received from the national search for
the executive director. Mr. Stephens stated 11 candidates.
Mr. Schrage asked if the Linden Tree film was produced locally. Mr. Stephens stated yes.
Commissioner Ryan asked if SMC could stand alone if the City of Salina would outsource
the filming and still support SMC to some degree. Mr. Stephens stated it would be difficult
to survive without the City of Salina meetings.
Mayor Davis stated he could recall discussing this once a year but did not remember ever
sitting down to discuss specifics on what we want from the channel today. Mr. Stephens
provided information on the challenges that SMC has and stated SMC was supposed to
have a City Commission sit on their board as an advisory board member but could only
remember one City Commissioner serving in the past. He continued to state that SMC
needed to be Salina's TV and SMC was currently doing it on a shoestring budget right now
with pretty good results but could step it up and provide better services. Mr. Schrage stated
Mayor Davis was correct; we have not had this level of conversation in City Commission
sessions previously. He continued to state as part of the contract, SMC had yearly reporting
requirements that had been shared in years past but did not recall any reporting that had
resulted in this level of conversation previously.
Commissioner Hodges asked what the equipment cost would be to upgrade the media
booth in the building. Mr. Stephens stated that the audio connection was pretty good but
could be better; he stated the cameras were analog and would need to be replaced and
upgraded. He continued to state he would estimate $25,000 to $35,000 at the City-County
Building and $35,000 to $45,000 at SMC.
Mr. Schrage stated he was surprised when he compared the video quality on YouTube
versus the videos on the website and it not be as high definition as it could be but he
thought the YouTube video quality was pretty acceptable with the exception of picking up
the screen clearly. He stated what limited conversations he had with Cox regarding the HD
programming, Cox was not wanting to set a precedence on HD programming nationwide
across their'system but there may be an opportunity to provide it in some better format to
improve the quality of the videos short of HD quality. Mr. Stephens provided information
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on the services that could be better to provide a better picture quality.
Nancy Klostermeyer, 660 S. Santa Fe, stated she was a new member of the Salina Media
Connection board and provided information on the generational change and use of
YouTube and other social media outlets.
w
0.
Commissioner Hoppock asked if we were to review other options, where would that fall
within the City and who would take the lead on that. Mr. Schrage stated as of a month ago,
. it was delegated to the deputy city manager but most likely would be a combination of Mr.
ii
Wood, himself and Rachel Hinde, Community Engagement Coordinator.
is
Commissioner Hoppock stated there were still some issues and to be able to review other
options, we need to terminate the contract, direct staff to review an alternate service
provider, new SMC contract and in-house management. He continued to state he liked all
those options and wasn't sure which one was the best without staff reviewing it.
Commissioner Ryan stated he agreed with Commissioner Hoppock on if we terminate the
contract, we have 6 months to figure out the other options and thought the public deserved
the quality outlined in the study session previously. He continued to state the need to
discuss with the other partners that use the service, the need for the catalog function and
the educational piece that he would like to discuss more with SMC.
Mayor Davis stated he would be in favor of working with SMC for 90 days and allowing
SMC to come up with a solution.
A conversation ensued between the Commissioners regarding the matter.
Mr. Schrage stated it would leave staff 90 additional days to pull things together if it does
not work out with SMC.
A conversation ensued between the City Commission and Mr. Schrage regarding allowing
an additional 90 days for SMC to improve the services and the option to delegate it to a
third party company.
Mr. Stephens stated they were comfortable with option 2 but liked option 1 better. He
continued to state they were prepared to buy new equipment.
Commissioner Hoppock stated the lack of an executive director was some of the concern.
Mayor Davis asked what staff's expectation was to negotiate a new contract. Mr. Schrage
stated staff was hoping to have it in place before year end. Mayor Davis asked if the
timeline could be shorter. Commissioner Ryan stated with a potential new executive
director coming in, it could provide an opportunity to allow them to be involved in the
conversations. Mr. Schrage stated staff could work towards providing the new contract as
soon as possible.
Mr. Stephens stated there were some concerns with being able to provide close captioning
and Spanish translation.
Mr. Schrage stated hopefully in three (3) months the costs could be quantified and allow
review of those costs.
I19-0179 Moved by Commissioner Ryan, seconded by Commissioner Hay, to provide notice of termination
of the current contract by July 1st and direct staff to negotiate a new agreement with Salina Media
Connection.
Page 9
Greg Bengtson, City Attorney, asked based upon that motion, am I correct that is the only option
to negotiate a new contract and not consider any other options between now and the end of the
year. He further asked if it was most important that staff had the information they need to move
forward. Commissioner Ryan stated he could add to the motion to create a blending of the options.
Mr. Bengtson stated the Commission needed to be sure that any option they think would be
w ultimately pursued between now and the end of the year were included in the motion.
Commissioner Ryan wanted to be sure to keep all of the options on the table.
19-019 Moved by Commissioner Ryan, seconded by Commissioner Hay, to provide notice of termination
0
of the current contract by July 1st direct staff to negotiate a new agreement with Salina Media
Connection; direct staff to review alternative service provider; and direct staff to review in-house
management of some or all of the services.
Mr. Bengtson stated he wanted to make sure there was a motion made and did not want to
influence the matter and was concerned if we speak directly to the renegotiation exclusively, we
clarified now that was not the intent. Commissioner Ryan stated correct. Mr. Bengtson stated he
did not know if we are stepping away from any kind of sequencing. He further stated it was most
important that staff had the information they need in order for sequencing the options. Mr.
Schrage stated that staffs intention was to report back to the City Commission within 90 days the
renegotiation with Salina Media Connection to see if we are making sufficient progress or whether
we need to look at the other alternatives in earnest. He continued to state that would leave staff
with simultaneously trying to renegotiate the contract with Salina Media Connection, investigating
alternatives and in anticipation that we might have to go there by year end depending on how the
negotiation goes with Salina Media Connection all with the intent of coming back before the City
Commission within 90 days with a status report on the negotiations with Salina Media Connection.
Mayor Davis called the question. Aye: (5). Nay: (0). Motion carried.
The City Commission recessed at 6:45 p.m. for a 5 minute break. The meeting resumed at
6:50 p.m.
DEVELOPMENT BUSINESS
(8.1) Request to authorize City staff preparation of a Special Assessment Engineering
Feasibility Report for Phases III a,b, c of the Stone Lake Addition.
Dean Andrew, Director of Planning, explained the request, past actions, fiscal impact and
action options.
Commissioner Hodges stated she had questions on the assumptions on how the project
breaks even. She continued by asking if the assumptions or projections were based upon
100% of the lots would be built out and 100% of the lots having utility accounts. Mr.
Andrew stated over 30 years and over 60 years, yes.
Commissioner Hodges stated it was assumed on year one. Mr. Andrew stated no.
Commissioner Hodges asked what percent of fill was it. Mr. Andrew stated the information
staff provided was on a projected 30 year useful life for the pavement and the maintenance
involved, so staff was comparing the costs that the City of Salina would incur over that 30
year life period and comparing that with the revenues collected over the 30 years.
Commissioner Hodges stated her question speaks specifically to revenue assumptions and
asked if staff assumed that 100% of the lots would be built out on year one or does that
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assume that there was a certain percentage of agricultural valuation. Mr. Andrew stated
there was not a sliding scale used based on year one through five and five through ten.
Commissioner Hodges stated in her previous statement, in that there's an assumption of
100%, for generating revenue, there's an assumption of 100% built homes on those sites
having utility accounts was correct. Mr. Andrew stated yes but what was also not taken
into account was the projected increases in valuations and we have another number we did
not include in the report, which was the value of the estimated future property tax over
thirty (30) years assuming a percentage increase in the mill levy. He continued to state both
of those revenue assumptions would be higher if we took into account the increases in
valuation and mill levy. He further stated the assumptions were based on a static period
based on our current mill levy and based on current valuations.
Commissioner Hodges asked how many lots were initially in Highland Meadows Hamlet
development. Mr. Andrew stated there were two (2) phases; Highland Meadows Hamlet
and Highland Meadows Hamlet Woodlands. He continued to state there were a substantial
number of lots in the first phase and there were 18 to 20 lots in Highland Meadows Hamlet
Woodlands which was at the south end. Commissioner Hodges asked how many lots were
initially in Briargate Addition. Mr. Andrew stated about 20 lots. Commissioner Hodges
asked how many lots were initially in River Run Addition. Mr. Andrew stated he did not
have that information with him but could access it fairly quickly, if necessary.
Commissioner Hodges stated there were developments going back as far as 1995, 2000,
2003, 2004, and 2009 that still had lots that were available to build upon. Mr. Andrew stated
the Briargate Addition was 100% served by infrastructure from day one, there were more
lots in Cedar Ridge that did not have streets and water and sewer than there were that did.
He continued to state with Grand Prairie there was another phase that does not have
streets, water or sewer yet. He further stated the listing of lots in the staff report was
compiled from the Board of Realtor's multi-list of vacant lots that were buildable. He also
explained there were subdivisions that had paper lots that were not buildable and were not
included in the count due to a permit not being able to be pulled for those lots.
Commissioner Hodges asked if it was correct to say that of the 29 buildable lots some of
them were in subdivisions that had been developing for fifteen (15) years. Mr. Andrew
stated yes or longer.
Commissioner Hodges asked if staff had figures for residential building permits pulled in
2016 and 2017. Mr. Andrew stated 50 building permits were issued in 2017 and 43 were
issued in 2016. Commissioner Hodges stated she wanted to make sure her math was
correct, there were 29 buildable lots, we recently approved 62 lots, gives us 91 and we have
approximately 86 homes in the price range for sale and that would bring us to a total of 91
lots available and approximately 177 different property options for people who either wish
to buy existing homes or who would like to build. Mr. Andrew stated staff attempted to
break the 67 buildable lots into two (2) categories; category (1): was River Run Addition
and Highland Meadows Hamlet which were at price points that typical home buyers or
those looking to build could not afford so lots are absorbed more slowly; and category (2):
the other 29 lots were in Grand Prairie Addition, River Trail 2nd Addition, and the one (1)
remaining lot in Briargate Addition, which was deemed not a very attractive lot, which was
why it remained vacant.
Commissioner Hodges asked if staff made any kind of assumptions on population growth
and population trends. Lauren Driscoll, Director of Community & Development Services,
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stated the housing stock available would not be enough if a new company with 200
employees came in; there would not be enough housing.
Commissioner Hodges provided her thoughts on the request.
Mr. Andrew provided information on the population and building permits by decade.
Commissioner Hoppock stated he did not know if the demographics had changed or if
there are fewer individuals in a household and he had not seen the housing stock this low.
He continued to provide his thoughts on the request.
Mayor Davis asked if Crystal Place was going to be connected to the next phase of the
subdivision. Mr. Andrew stated it was not supposed to be connected until Phase III c and
staff thought the property to the north might have been platted to create a street to connect
Shoreline Drive with on the north.
Mayor Davis asked if you need emergency access was the drive by now going to the east
from Ohio going to hold a fire truck. Mr. Andrew stated no, the dirt could not hold a 75,000
pound fire truck if it would rain. He continued to state that the extension of the street could
be added to the benefit district improvements for Phase II.
Michael Schrage, City Manager, stated depending on which phase would come first, the
emergency access could come at that time. Mr. Schrage stated the preparations were in
place for an emergency access point in this development. Mr. Andrew stated that the
request was two part and staff was not focusing on the emergency access, upon the creation
of the benefit district, the City Commission could require an emergency access in the next
phase of development.
A conversation ensued between Mayor Davis and Mr. Andrew regarding the benefit
district for the emergency access road.
Ms. Driscoll explained the steps in the process and the various phases of the development.
Mayor Davis expressed his concern for the safety standpoint of the development.
Mayor Davis asked if the three (3) owners now would keep the lots exclusive to themselves
or would the lots be available for other builders. Mr. Andrew stated to his knowledge the
only subdivision that was exclusive to a single builder was Cedar Ridge Addition.
Mayor Davis asked what part of our debt capacity was covered with special assessment
debt. Mr. Schrage stated historically we have issued debt associated with projects and
special assessments. He stated that the finance director had been working on it but he was
not sure what that number was.
A conversation ensued between the City Commission and Mr. Schrage regarding the debt
capacity.
Commissioner Hodges stated that staff mentioned that there were several developments
with one way in and one way out and asked if the other developments were developed
prior to 2016. Mr. Andrew stated that those subdivisions were developed prior to 2016 and
before that requirement was added to the code.
Mr. Schrage stated discretion was applied by staff at the time to allow one turn around and
one hammer head. He continued to state that the intent was to require additional drives
with development of the next phase.
Commissioner Hoppock asked if another phase came to the City Commission first, the
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north entrance could be added at that time. Mr. Andrew stated yes, and bond counsel
would address the boundaries of the benefit district. Mr. Andrew continued to provide
information on the emergency access and explained the phasing of most subdivisions in the
community.
z Mr. Andrew stated today if all lots in Stone Lake Addition would remain vacant, the City
of Salina would receive $98 per year in property taxes total. Ms. Driscoll stated there was a
huge amount of data that goes into these staff reports and if the City Commission would
like to see additional data, that information would be helpful to staff. Commissioner
Hodges stated her concern was with the assumptions made on the data provided.
Kelly Dunn, Stone Lake Development, provided information on the development of River
Trail Addition, and the need for lots in the price range of $160,000 to $275,000. He
continued to state the lots still available in the other subdivisions were due to the price
range of the houses in the subdivision. He further stated there would be employment of
several employees with development of $500,000 in houses in the next 8 to 10 years. He
also stated there were 12 lots left in the South High School area under $300,000 and
provided information on the available lots in the community.
Commissioner Hodges asked if a market analysis or proforma was submitted to staff and
stated earlier Mr. Dunn noted the price point up to $275,000 but the application listed
$250,000. Mr. Dunn stated they completed the application in the packet and they were able
to build the lots to that price point depending on the amenities included in the home.
Commissioner Hodges stated that Mr. Dunn had mentioned his own company, Kelly Dunn
Construction, and asked whether the hope was that Kelly Dunn Construction would build
some of the houses in this development. Mr. Dunn stated sure. Commissioner Hodges
continued to state that while she realizes that we don't have any statutory conflict of
interest per the Attorney General, our own ethics policy did call out an appearance of
conflicts and would like to get the City Attorney's take on that given that she knew in the
past we've had Commissioner Ryan recuse himself because of his substantial interest in
Kelly Dunn Construction. Greg Bengtson, City Attorney, stated correct, if we want to start
with the substantial interest, we know that from the opinion received from the Ethics
Commission, that in this case, the application from Stone Lake Development, LLC does not
relate to the substantial interest that Commissioner Ryan had with Kelly Dunn
Construction, Inc., whether that remained the case. Commissioner Ryan stated that he did
have and still did have but stated that the ruling from the Ethics Commission explained
that ancillary companies did not apply. He continued to state that his wife did not have any
interest in this entity that he was aware of. He further stated he did not think he had either
a statutory or a common law conflict. Mr. Dunn stated there was not an agreement. A
conversation continued to ensue between Commissioner Ryan and Mr. Bengtson regarding
the matter. Mr. Bengtson asked if that answered Commissioner Hodges question.
Commissioner Hodges stated yes it does but specifically speaking to our ethics policy
relating to common law conflict of interest. Mr. Bengtson stated there were 3 scenarios of
the ethics policy and stated the common law conflict was more of a function of case law
and would require a separate analysis from the substantial interest test. He further stated
there was a third option for a Commissioner to voluntarily recuse themselves to avoid the
appearance of a conflict of interest.
Jon Blanchard, 250 S. Ninth Street, provided his thoughts on the request, the emergency
access and willingness to help staff with the financial analysis of the application requests.
Paee 13
, 19-0180 Moved by Commissioner Hoppock, seconded by Commissioner Hay, to authorize staff to prepare
an engineering feasibility report for all of Phase III of Stone Lake Addition for future consideration
by the City Commission. Aye: (4). Nay: (1) Hodges. Motion carried.
OTHER BUSINESS
z
G. None.
ADJOURNMENT
19-0181 Moved by Commissioner Hoppock, 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 8:14 p.m.
.....77—Cst.Lni0.4:0
[SEAL] Trent W. Davis, M.D., Mayor
ATTEST:
StaAtcL kkan
Shandi Wicks, CMC, City Clerk
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