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06-05-1978 Minutes1 1 29 City of Salina, Kansas Regular Meeting of the Board of Commissioners June 5, 1978 The Regular Meeting of the Board of Commissioners met in the Commissioners' Room, City -County Building, on Monday, June 5, 1978, at four o'clock P.M. f The Mayor asked everyone to stand for the opening ceremony. There were present: Mayor Jack Weisgerber, Chairman presiding Commissioner Keith G. Duckers Commissioner Dan S. Geis Commissioner Gerald F. Simpson comprising a quorum of the Board, also: L. 0. Bengtson, City Attorney Norris D. Olson, City Manager D. L. Harrison, City Clerk Absent: Commissioner Karen M. Graves The Minutes of the Regular Meeting of May 22, 1978, and the Special Meeting of May 30, 1978, were approved as printed. STAFF AGENDA BIDS WERE RECEIVED for the construction of the Ballfield Complex in Lower Indian Rock Park: Brown & Brown, Inc. Bid #1 $455,875.37 Alternate 1 4,400.00 Electrical for Alternate 1 325.00 Total for Alternate 1 4,725.00 Bid #2 $132,480.00 Bid #2A No Bid Combination Bid 1 and 2 $583,355.37 Combination Bid 1 and 2A No Bid J. S. Frank Construction Company, Inc. Bid #1 $512,713.51 Alternate 1 4,140.00 Electrical for Alternate 1 624.00 Total for Alternate 1 4,764.00 Bid #2 $171,396.00 Bid #2A $163,912.00 Combination Bid 1 and 2 $684,109.51 Combination Bid 1 and 2A $681,625.51 10 . Western Construction Inc. Bid #1 $490,813.87 Alternate 1 5,139.00 Electrical for Alternate 1 236.00 Total for Alternate 1 5,375.00 Bid #2 $163,944.00 Bid #2A $210,146.40 Combination Bid 1 and 2 $654,757.87 Combination Bid 1 and 2A $700,960.27 Architect's Estimate Bid #1 $324,093,00 Alternate 1 3,090.00 Electrical for Alternate 1 650.00 Total for Alternate 1 3,740.00 Bid #2 $145,728.00 Bid #2A $182,160.00 Combination Bid 1 and 2 $469,826.00 Combination Bid 1 and 2A $506,258.00 The Commissioners and architect discussed the bids being so far above the Architect's estimate. Mr. Steve Jennings suggested the bids be referred to the architect for checking and a report back, possibly by the end of the meeting. Mr. Olson advised the Commissioners that under the guidelines of Section 3, a contract should not be awarded for 7 days. Mr. Shelby Willis, Bucher and Willis - Mr. Mayor, we think we can do just as Steve said, but let me advise you we have had several million dollars worth of work awarded here in the last few weeks in other areas, and these bids are absurd. I wouldn't, as a citizen of Salina, want to recommend to you that you pay more than our estimate. Four of us, this morning, made independent estimates, and I can assure you that we can get this job bid within that price almost anywhere in Kansas or Missouri, including Kansas City, Missouri, where the union labor is much higher than anywhere else. Apparently we have hit an area when the contractors are not needing a job. Those bids are absurd. A motion was made by Commissioner Simpson, seconded by Commissioner Duckers to refer the bids to the Engineering Department and the Architect for a report back to the Commission on June 12, 1978. Ayes: (4). Nays: (0). Motion carried. THE CITY ENGINEER reported on bids received for Engineering Project 78-638, Part 1, for utility improvements in Southeast Park. (Bids were received May 22, 1978) "The proposal submitted by Smoky Hill, Inc., in the amount of $24,116.00 anticipated a starting date of September 1, 1978, and required 120 calendar days to complete. This company submitted a proposal for both Part I and Part II of this project requiring 120 calendar days on each proposal. They subsequently informed us that they had intended to complete both parts within the 120 day period. We requested from them a clarification on their required time to complete Part 1 only, and received the attached letter. This letter quotes the completion date of October 1, 1978. "Stevens Contractors, Inc., submitted a proposal in the amount of $24,377.00 with a starting date of August 1, 1978, and completion by September 15, 1978. This completion date is two weeks earlier and the cost is $261.00 more. "There is not a significant difference in either the cost or the date of completion. I would, therefore, recommend that we follow our usual procedure and award the contract for Part I of Project 78-638 to Smoky Hill, Inc., for the amount of $24,116.00." 1 1 A motion was made by Commissioner Duckers, seconded by Commissioner Simpson to accept the recommendation of the City Engineer and to award the contract to Smoky Hill, Inc., for Engineering Project 78-638, Part I, in the amount of $24,116.00. Ayes: (4). Nays: (0). Motion carried. AN ORDINANCE was introduced for second reading entitled: "AN ORDINANCE providing for the amendment of Ordinance Number 8526, the same being Chapter 36 of the Salina Code, and the Zoning District Map therein and thereby adopted and providing for the rezoning of certain property within the City and prescribing the proper uses thereof." [778-4 and Z78 -4A filed by Carolyn Smolich for the rezoning of the West 85 feet of the East 210 feet of Lot 4, Block 6, Oakdale Addition from C-1 to C-2/P.D.D. (Neighborhood Shopping - Planned Development District).] A motion was made by Commissioner Simpson, seconded by Commissioner Geis to adopt the ordinance as read and the following vote was had: Ayes: I Simpson, Duckers, Geis, Weisgerber (4). Nays: (0). Commissioner Graves absent. Carried. The Mayor approved the Ordinance and it is numbered 8638. The Ordinance' was introduced for first reading May 22, 1978. AN ORDINANCE was introduced for second reading entitled: "AN ORDINANCE authorizing the City of Salina, Kansas, to acquire the real property hereinafter described and to construct, purchase and install buildings and improvements and machinery and equipment to be leased to Salina Presbyterian Manor, Inc., a Kansas Not for Profit Corporation; authorizing and directing the issuance of $2,000,000 principal amount of Industrial Development Revenue Bonds, Series June 1, 1978 (Salina Presbyterian Manor, Inc.), of said City for the purpose of providing funds to pay the cost of acquiring said real property and constructing, purchasing and installing said buildings and improvements and said machinery and equipment to be leased to said company; prescribing the form and authorizing the execution of a lease by and between said City and said Company; and prescribing the form and approving the execution of a guaranty agreement by United Presbyterian Foundation of Kansas, Inc., a Kansas Not for Profit Corporation." A motion was made by Commissioner Geis, seconded by Commissioner Simpson to adopt the Ordinance! as read and the following vote was had: Ayes: Simpson, Duckers, Geis, Weisgerber (4). Nays: (0). Commissioner Graves absent. Carried. The Mayor approved the Ordinance and it is numbered 8639. The Ordinance was introduced for first reading May 22, 1978. A RESOLUTION was introduced and passed entitled: "A RESOLUTION authorizing and ordering certain curbing, guttering, paving, grading, water main, sanitary sewer and storm sewer improvements, ordering preparation of plans and specifications, and the estimate of costs." (Improvements in Country Club Heights Addition #5, requested in Petition Number 3676, filed by Dr. Norman Harris) A motion was made by Commissioner Geis, seconded by Commissioner Duckers to adopt the resolution as read and the following vote was had: Ayes: Simpson, Duckers, Geis, Weisgerber (4). [Jays: (0). Commissioner Graves absent. Carried. The Mayor approved the Resolution and it is numbered 3372. A RESOLUTION was introduced and passed entitled: "A RESOLUTION determining the advisability of curbing, guttering, paving, grading, water main and service lines, sanitary sewer improvements, estimating the cost thereof, defining the boundaries of the improvement district, method of assessment, and apportioning the cost between the improvement district and the City -at -large." (Improvements in Dow Addition, requested in Petition Number 3684, filed by George Etherington) A motion was made by Commissioner Duckers, seconded by Commissioner Simpson to adopt the resolution as read and the following vote was had: Ayes: Simpson, Duckers, Geis, Weisgerber (4). (Jays: (0). Commissioner Graves absent. Carried. The Mayor approved the Resolution and it is numbered 3373. PUBLIC AGENDA The Commissioners considered two resolutions from the Salina Housing Authority regarding the execution of amended annual contributions contract, and the authorization of the execution of the annual contributions contract, general depositary agreement and housing assistance payment contract under Section 8 of the Housing and Community Development Act of 1974. Commissioner Geis - What does all this mean? Mike Gilbert - This annual contributions contract is a portion of the city's obligation for low and moderate income housing. It is in conjunction with our housing assistance plan. One program is running out and we are merely trying to remove that one, which was for 187 units and replace that with a rent subsidy program which is for 100 units. We had asked for more units; however that is all we received. Mayor Weisgerber - How many do you have now, Mike, how many units do you actually operate now? Mike Gilbert - 144. Mayor Weisgerber - When this changes over, what do you do with the excess 44? What happens? Mike Gilbert - We will have no excess, Mr. Mayor. We had an allocation for 187 we were unable to obtain those units because of the HUD freeze in one project. That project is down to 44, so we are actually using those 44 units. We are not displacing anyone. We are just simply changing programs. Mayor Weisgerber - All right, but wait a minute, I lost you there somewhere. We had this past authorization for 187, they are changing it to 100; but then are you actually operating 144 or just 44. Mike Gilbert - No sir, there was two projects. One project is an own project, the units in which the city itself maintains the ownership of. The other one is a lease project. The lease project that you are changing now there are 44 units in that we are using now they would not for a year or 14 months they have not let us acquire new units, and as these leases have run out landlordE have simply taken their units out of the program and rented them at a higher price. We are simply trying to build that back up to the 100 units. Mayor Weisgerber - So actually then as this would be, you are authorize( for 100 and have only 44 under this particular program so if you could find them you would have leaway for an additional 56 units. Mike Gilbert - Yes. Commissioner Simpson - This doesn't include the elderly housing under Section 8? Mike Gilbert - No, it does not. Norris Olson - I am still at a loss. Of the 144 units that you operate now, is that out of 187 that you have allocated? Mike Gilbert - We had 187 in one project and there are 75 in the other. 75 units are the ones owned by the City. units. Commissioner Simpson - So we are presently responsible for 119 total Mike Gilbert - Yes, sir. Commissioner Simpson - And the 75, there is no change in the ownership of that group? Mike Gilbert - No change in the 75 units. Commissioner Simpson - So our maximum then would be 175 leased and owned, and we are about 56 shy on that right at the present time. Mayor Weisgerber - How many people do you have on the waiting list that want units? Mike Gilbert - We have 330 some people on the waiting list at the present time, we simply stopped taking applications and acquired their name because it seemed to be futile ... I Commissioner Simpson - Is that individuals or living units that are waiting. Mike Gilbert - Individuals who want units. i Commissioner Simpson - An individual could represent several people. Mike Gilbert - Yes, it could represent a family. j Mayor Weisgerber - You say when a lease expires they are renting it f somewhere else. Mike Gilbert - Yes, just out on the open market. They removed it from the Housing Authority guidelines and ... Mayor Weisgerber - Well, why? Strictly financial economics? Even with what renters pay themselves, and with your subsidy, you are still considerably under what they would rent for on the open market. i Mike Gilbert - Oh, yes. Commissioner Simpson - Well, actually under Section 8 the owner is responsible for the collection of the rent, is that his part of the rent? Mike Gilbert - He is responsible for a portion of it. I Commissioner Simpson - Yes, the unsubsidized portion, whereby before they were actually leased to the Salina Housing Authority. i Mayor Weisgerber - So the only way you are going to be able to keep units leased is to own them. Those that you have leased from someone else you are going to loose little by little, then. Mike Gilbert - Yes. Commissioner Simpson - Mike, how far below market rates are the HUD rates at this point in time? i Mike Gilbert - There is quite a distance. I noticed the paper has 2 and 3 bedroom, 3 bedroom units for $250.00 and we are allocated almost $100 less. Commissioner Simpson - It seems they need a new market survey. Mike Gilbert - We have asked the area representative to come and that survey has taken place but we do not have the results. Mayor Weisgerber - Who's responsibility should it be to see that that gap is narrowed? Will the federal government survey and offer some assistance on that? Mike Gilbert - Yes, Mr. Mayor, we have had them out and that was the purpose of them making the trip. Commissioner Simpson - Has the Housing Authority explored the possibility; of trying to build units, or acquire more existing units? Or do you have any funding to do this? i Mike Gilbert - We do not have funding at the present time to do that; but we have explored in this area. I i i i i 1- a4. A RESOLUTION was introduced and passed entitled: ''A RESOLUTION authorizi execution of amended annual contributions contract.'' A motion was made by Commissioner Duckers, seconded by Commissioner Geis to adopt the Resolution as read and the following vote was had: Ayes: Simpson, Duckers, Geis, Weisgerber (4). Nays: (0). Commissioner Graves absent. Carried. The Mayor approved the Resolution and it is numbered 3374• A RESOLUTION was introduced and passed entitled: ''A RESOLUTION authorizi the execution of the Annual Contributions Contract, General Depositary Agreement and Housing Assistance Payment Contract under Section 8 of the Housing and Community Development Act of 1974•' A motion was made by Commissioner Geis, seconded by Commissioner Simpson to adopt the Resolution as read and the following vote was had: Ayes: Simpson, Duckers, Geis, Weisgerber (4). "Jays: (0). Commissi Graves absent. Carried. The Mayor approved the Resolution and it is numbered 3375• COMMISSION AGENDA The Commissioners did not bring anything to the floor for discussion. A MOTION was made by Commissioner Geis, seconded by Commissioner Simpson that the Regular Meeting of the Board of Commissioners be adjourned. Ayes: (4). Nays: (0). Motion carried. The meeting adjourned at 4:37 P.M. �u1^J D. L. Harrison, City Clerk 7 ner 1 WAIVER AND CONSENT TO HOLD A SPECIAL MEETING OF THE BOARD OF COMMISSIONERS We, the undersigned, being the duly elected, qualified and acting Commissioners of the City of Salina, Kansas, and constituting a majority of the Board of Commissioners of the City of Salina, Kansas, do hereby waive notice and consent to the holding of a special meeting of the Board of Commissioners on the 9th day of June, 1978, at 8:00 A.M. for the purpose of receiving a report from Bucher and Willis, Architect, on the bids received June 5, 1978 for the construction of a ballfield complex in Lower Indian Rock Park. Dated this 9th day of June, 1978. Commissioners