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07-01-2019 Minutes CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS July 1, 2019 4:00 p.m. The City Commission convened at 2:30 p.m. for Budget: Fees/Revenues (including property tax) 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 None. CITIZENS FORUM Randall Holm, Salina, provided his thoughts on the City Commission approval of the $500,000 loan for the Lee Building rehabilitation, the number of parking spaces needed for the Lee Building project and the manholes being 3 to 6 inches below surface after a street was resurfaced. Mayor Davis asked if there was information on the street projects and the manholes. Jim Kowach, Director of Public Works, stated there was microsurfacing and Ultrathin Bonded Asphalt work going on all over town and the manholes being a half an inch to an inch lower was acceptable to staff to leave as they were. Michael Schrage, City Manager, stated that staff was working to get the manholes on Ohio Street to match those that were on Ninth Street and staff was working to develop a separate contract for manhole adjustments. He continued to state the desire to facilitate market rate apartments in the community and the loan that had been granted was in return for one-third of the apartments in the first phase were for market rate apartments. He continued to explain the amendments to the Neighborhood Revitalization Plan and noted that staff was not aware of any infrastructure improvements that were completed that would be in financial benefit for the Lee Building project. He continued to state the parking requirements were consistent to those in the downtown district and the approach was not for onsite parking but overall parking available in the downtown district. Mr. Kowach stated the parking on Iron Avenue would be angled to add parking spaces to the downtown area and potentially to the block just north of the Lee Buildings. Mr. Holm stated he was made aware that the $500,000 was a gift not a loan. Mr. Schrage stated it was structured as a loan with the full amount payable at the maturity of the loan. Mr. Holm stated that the developer of the Lee Buildings needed to take responsibility to provide adequate parking for the residents of the complex. Mr. Schrage stated there was an onsite parking requirement for multi-family complexes and the Lee Building project would be required to provide onsite parking for their project, there was not an option to get out of Page 1 that requirement. Karen Shade, Salina, provided information on the ridership of the OCCK buses including the 81 Connection buses, the costs of the bus rides in comparison to those in Wichita and the budget of the buses. _, Mayor Davis stated the issue of the bus stops being removed from Santa Fe was brought up last week and asked for an update. Michael Schrage, City Manager, stated staff met with Patrick Wallerius with OCCK last week and plan to have another meeting with them regarding the original plan and brainstorm the options and solutions. Ms. Shade thanked staff for their prompt response on both this issue and her email. a U PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TI.ME None. CONSENT AGENDA (6.1) Approve the minutes of June 24, 2019. 19-0189 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. ADMINISTRATION (7.1) First reading Ordinance No. 19-11007 unconditionally approving the issuance of general obligation bonds by the Salina Airport Authority for the purpose of financing the costs of certain capital improvements located at the Salina Regional Airport and Airport Industrial Center. Michael Schrage, City Manager, explained the bond issuance and action options. Tim Rogers, Salina Airport Authority Executive Director, presented a PowerPoint presentation for LifeSave Transport and 1 Vision Aviation and distributed a Preliminary Estimate of the Expected Economic Impact from two new businesses located at the Salina Airport Industrial Center. Commissioner Hodges asked for the total value of the incentives for 1 Vision Aviation and . LifeSave Transport. Mr. Rogers stated there was an incentive package that was presented by the State of Kansas in the amount of $5 million dollars (combination in cash incentive, training and employee recruitment) and the local incentive was to spend dollars to improve the facilities in the amount of$2.25 million dollars. Commissioner Hodges stated with the improvements that were made to the hanger, and the tenant would transfer out when they transferred out. Mr. Rogers stated if it was a fixture it would remain but if it was a piece of equipment that could be moved, it would be taken with the tenant at the end of their lease. Commissioner Hodges asked how long 1 Vision Aviation has been in business. Mr. Rogers stated ten (10) to eleven (11) years but under the current ownership about four (4) years. Commissioner Hodges asked how many employees they had in Sioux City, Iowa. Mr. Rogers stated about 50 employees. Commissioner Hodges asked if the expansion numbers were in conjunction with the current contract or a separate contract. Mr. Rogers stated the numbers were geared towards Page 2 the lease and then would work to build additional contracts. Commissioner Hodges stated the only time since her time on the commission was the Beechcraft Road bond issuance and asked if they had all been unconditional approvals. Mr. Rogers stated yes, they had all been unconditional approvals. 0. Commissioner Hoppock asked if the facility in Salina was larger than the current facility in Sioux City, Iowa. Mr. Rogers stated yes, much larger. Commissioner Hoppock asked for their estimation of full capacity of the jobs. Mr. Rogers and Mitch Robinson, Salina Community Economic Development Organization Executive a Director,stated based on their discussion of the work it would be 18 months to 24 months. Commissioner Hoppock asked how many years the lease was for. Mr. Rogers stated it was a five (5) year lease with 3 additional options of 5 years each. Commissioner Hoppock asked if all four (4) phases were completed, would there be a shortfall requiring a mill levy increase. Mr. Rogers stated if 1 Vision Aviation leased the full facility, the debt service was $240,000 annually and the full option (all 4 bays) was $282,000 per year. Commissioner Hoppock asked about the potential in the mill levy increase. Mr. Rogers stated if the money was not all there to service the debt, it could require a mill levy increase. He continued to state if all four (4) bays were not leased it could cause for an increase in the mill levy for the Salina Airport Authority. Commissioner Ryan asked if the company was currently doing all four (4) phases in Sioux City, Iowa. Mr. Rogers stated no, this was the next phase of the company and the facility in Iowa was not large enough.to accommodate the next phase. Commissioner Ryan thanked all those involved for the opportunity and stated it was exciting. Commissioner Hay asked if all the spaces were not leased, and those could be sub-leased how would that work. Mr. Rogers stated the Salina Airport Authority reserved the right to lease the spaces that 1 Vision Aviation did not ask to include in their lease at Hanger H959. He continued to state he would have conversations with 1 Vision Aviation first to determine the use and if they had interest in the space and it would be rented as a premium. Commissioner Hay asked if the bays would be sectioned off. Mr. Rogers stated through the lease negotiations they would not have to section them off but the use of the bays would have to be compatible. Mr. Rogers stated since they have finalized negotiations with 1 Vision Aviation, they have had a company that was looking to lease a space temporarily and they offered a bay of the Hanger H959 but the potential company was not sure if they wanted to co-lease a space until they learned of the company they could be co-leasing with. Mr. Rogers provided information on the work done by Mitch Robinson with the Salina Community Economic Development Organization and Eric Brown with the Salina Area Chamber of Commerce. Commissioner Hodges stated the need to replace the transformers and asked if the coordination with Westar Energy was better than with the Beechcraft Road project. Mr. Rogers stated Westar Energy was involved with the development of the project Page 3 improvements and was going to make the external improvements at no cost. Mr. Robinson provided information on the work by the different entities for the project, provided information on Latron North, the Talent Initiatives Specialist with Salina Area Chamber of Commerce, and his work on the project just days after beginning with the Salina Area Chamber of Commerce and announced a grand opening planned in the next couple of weeks. 19-0140 Moved by Commissioner Hay, seconded by Commissioner Ryan, to pass Ordinance No. 19-11007 unconditionally approving the issuance of general obligation bonds by the Salina Airport 0 Authority for the purpose of financing the costs of certain capital improvements located at the Salina Regional Airport and Airport Industrial Center on first reading. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS None. OTHER BUSINESS Mayor Davis asked for an update on the baseball initiative request. Michael Schrage, City Manager, stated staff met with the baseball group to come to a consensus on the project and staff met on a separate occasion to discuss the project and the financing of the project. He continued to state the charter ordinance to amend the transient guest tax had a protest petition option and noted the dollar amount for the parks improvements in a separate charter ordinance and the need to amend that charter ordinance as well. He further stated his intent was to bring a resolution to the City Commission listing the steps needed to complete the request and if approved, staff would begin working on the tasks and the resolution would give the baseball community the information they were looking for. He lastly stated there was a target date of July 15, 2019. Mayor Davis asked if there was coordination with staff and the baseball group for the construction of the patio project. Mr. Schrage stated parks and engineering staff had worked with the baseball group on the project. Commissioner Hodges asked if the conversations had included the must haves of the improvements and a development agreement for maintenance costs and the need for letters of support. Mr. Schrage stated he appreciated the level of conversation from the baseball group and the financing of the project may drive the construction approach of the project. He also stated there was recognition of the need for a development agreement but there would be a need to add all the components to the agreement. (9.1) Request for executive session (personnel). I move the city commission recess into executive session for _ minutes to discuss the City Manager's performance evaluation based upon the need to discuss personnel matters of non-elected personnel pursuant to K.S.A. 75-4319(b)(1). The open meeting will resume in this room at p.m. 19-0191 Moved by Commissioner Hodges, seconded by Commissioner Hoppock, to recess into executive session for 45 minutes to discuss a non-elected employee's performance and status based upon the need to discuss personnel matters of non-elected personnel, pursuant to K.S.A. 75-4319(b)(1). The open meeting will resume in this room at 6:25 p.m. which includes a 5 minute break prior to the executive session. Aye: (5). Nay: (0). Motion carried. Page 4 Mayor Davis noted that Natalie Fischer, Director of Human Resources, would be attending the executive session. The City Commission took a five (5) minute break at 5:35 p.m. and recessed into executive min session at 5:40 p.m. and reconvened at 6:25 p.m. 19-0192 Moved by Commissioner Hodges, seconded by Commissioner Hoppock, to recess into executive session for 15 minutes to discuss a non-elected employee's performance and status based upon the need to discuss personnel matters of non-elected personnel, pursuant to K.S.A. 75-4319(b)(1). The open meeting will resume in this room at 6:42 p.m. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 6:27 p.m. and reconvened at 6:42 p.m. No action was taken. ADJOURNMENT 19-0193 Moved by Commissioner Hoppock, 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 6:43 p.m. i-71.Hi_ktfri.cer—vz-,) [SEAL] Trent W. Davis, M.D., Mayor ATTEST: 1 fwd.. ► . Shandi Wicks, CMC, City Clerk I Paee 5