11-13-2019 Minutes (special) CITY OF SALINA, KANSAS
SPECIAL MEETING OF THE BOARD OF COMMISSIONERS
November 13,2019
1:00 p.m.
Mayor Davis asked the Clerk for verification that notice had been sent for today's City
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W Commission meeting. The Clerk replied yes.
The Special Meeting of the Board of Commissioners was called to order at 1:00 p.m. in Room 107 at
City-County Building. Roll call was taken.
O Those present and comprising a quorum: Mayor Trent Davis (presiding), Commissioners, Joe
Hay,Jr., Melissa Rose Hodges, Mike Hoppock, and Karl Ryan.
Also present: Michael Schrage, City Manager, Greg Bengtson, City Attorney; and Shandi Wicks,
City Clerk.
ADMINISTRATION
Mayor Davis stated the special meeting had been called for further discussion regarding
the City (Sr County agreements for use of the Expo Center and asked the City Manager for
an introduction.
Michael Schrage, City Manager, explained the correspondence back and forth between the
City Commission and the Saline County Commission regarding the Expo Center lease
agreement and proposed terms of the agreement.
(3.1) Request for executive session (legal).
I move the city commission recess into executive session for _ minutes to discuss
the subject of negotiations with Saline County relating to the Expo Center Lease
agreement 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) and for the reason that the public
discussion of the matter would adversely affect the interests of the City. The open
meeting will resume in this room at p.m.
19-0354 Moved by Commissioner Hodges, seconded by Commissioner Hoppock, to recess into executive
session for 45 minutes to discuss the subject of negotiations with Saline County relating to the
Expo Center Lease agreement 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) and for the reason that the public discussion of the matter would
adversely affect the interests of the City. The open meeting will resume in this room at 1:48 p.m.
Aye: (5). Nay: (0). Motion carried.
The City Commission recessed into executive session at 1:03 p.m. and reconvened at 1:48
p.m.
Also present in executive session: Mike Schrage, City Manager; Jacob Wood, Deputy City
Manager, and Greg Bengtson, City Attorney.
19-0355 Moved by Commissioner Hodges, seconded by Commissioner Hoppock, to recess into executive
session for 12 minutes to discuss the subject of negotiations with Saline County relating to the
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Expo Center Lease agreement 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) and for the reason that the public discussion of the matter would
adversely affect the interests of the City. The open meeting will resume in this room at 1:48 p.m.
Aye: (5). Nay: (0). Motion carried.
a
The City Commission recessed into executive session at 1:48 p.m. and reconvened at 2:00
y p.m.
Also present in executive session: Mike Schrage, City Manager; and Jacob Wood, Deputy
8 City Manager, and Greg Bengtson, City Attorney.
(3.2) Possible Public Action.
Mayor Davis stated the City Commission had some discussion regarding the Expo Center
lease and believed the Governing Body was ready to take some action.
19-0356 Moved by Commissioner Ryan, seconded Commissioner Hay, instruct staff to draft a response to
the county that prepares the lease that considers a 40 year lease agreement and a 5.7 million
investment project scope to be completed in five (5) years as well as addressing the city's concerns
with ongoing maintenance and aesthetics.
Commissioner Hodges expressed her concerns on the lease terms and elaborated on her concerns.
Commissioner Hoppock provided his thoughts on the lease terms, depreciation of the buildings
and the investment project.
Commissioner Ryan stated the action would at least give the City Commission an opportunity to
continue working with the county.
Commissioner Hay provided his thoughts on the lease terms and expressed his concerns if the
property would revert back to the City of Salina.
Mayor Davis asked, with leases of this type, could a lease be constructed to include discussion
options for major capital improvements. Mr. Schrage stated theoretically there would be a way to
put in some type of milestones, mechanisms or review processes but it has the effect of negating
the requested 40 year term.
Commissioner Hoppock stated he was disappointed with the Saline County Commission on the
requested lease terms.
A conversation ensued between the City Commission regarding the term lease and enclosure of
specific language in the lease relating to capital improvements.
Commissioner Hodges asked if it would help to have a five (5) year joint meeting to keep the
conversation going during the lease to keep a dialogue on the evaluation of the long term lease and
be able to address issues that arise then instead of waiting until the end of the lease. Mr. Schrage
stated the question would become what's the conclusion of those meetings and reviews.
Greg Bengtson, City Attorney, stated the comments he was hearing seem to speak to ways in
which there was an interest in entertaining a possible means of a result that could span over a 40
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year period if, certain milestones along the way, enabled that relationship to adapt to
circumstances over that period of time. He continued to state, if you start with a 40 year term there
was a presumption that the term was going to go for 40 years and anything other than that would
take specific events or triggers to alter that.
Mr. Schrage stated there was a communication from the county clarifying what they were wanting
Q.
w and continued to provide information on the options for the lease terms.
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Commissioner Hoppock stated his concerns on the condition of the buildings between twenty (20)
years and thirty (30) years.
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Mayor Davis provided another option for lease terms with a twenty-five (25) year lease with three
(3) five (5) year options.
Mr. Schrage explained the options for action.
Commissioner Ryan provided his thoughts on the current motion and lease term.
Commissioner Hoppock stated he was disappointed in not having a joint meeting with Saline
County.
Mayor Davis called the question. Aye: (2). Nay: (3) Hodges, Hoppock, Davis. Motion failed.
I19-0357 Moved by Commissioner Hodges, seconded by Commissioner Hoppock, to instruct staff to draft a
response to the county that prepares the lease that considers a term of 25 years with three (3)
optional five (5) year extensions and a 5.7 million investment project scope to be completed in five
(5) years as well as addressing the city's concerns with ongoing maintenance and aesthetics.
Mr. Bengtson asked when we speak of options in that context, were we anticipating that would be
at the option of both parties rather than one or the other. Commissioner Hodges stated that was
absolutely what she expected. Mr. Bengtson stated that was what he expected, he just wanted to
make sure we understood. Mayor Davis asked if the current one year options were the option of
either or just the County. Mr. Bengtson stated currently the option was at the option of the County
on the basis that the fair was conducted and if the fair was not there, the option would not be
available.
Mr. Schrage stated to further clarify the city's intention with those options, would be to confirm
acceptable levels of maintenance and aesthetics standards. Commissioner Hodges stated she
thought there needed to be some identifiable standards.
Commissioner Hay provided his thoughts on the current motion and lease term options.
A conversation ensued between the City Commission regarding the lease term options.
Mr. Schrage restated the motion. Mayor Davis called the question. Aye: (4). Nay: (1) Hay. Motion
carried.
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ADJOURNMENT
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'19-0358 Moved by Commissioner Hoppock, seconded by Commissioner Ryan, that the special meeting of
the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting
adjourned at 2:28 p.m.
w [SEAL] Trent W. Davis, M.D., Mayor
ATTEST:
6LtOl► liOLt
Shandi Wicks, CMC,City Clerk
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