03-26-1979 Minutes1
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City of Salina, Kansas
Regular Meeting of the Board
of Commissioners
March 26, 1979
The Regular Meeting of the Board of Commissioners met in the City
Commission Meeting Room, City -County Building, on Monday, March 26, 1979, at
four o'clock p.m.
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 Karen M. Graves
Commissioner W. M. Usher
comprising a quorum of the Board, also:
L. 0. Bengtson, City Attorney
W. E. Harris, Acting City Manager
D. L. Harrison, City Clerk
Absent:
None
printed. The Minutes of the Regular Meeting March 19, 1979, were approved as
STAFF AGENDA
BIDS WERE RECEIVED on Engineering Project 79-647 - Presbyterian Manor
Water Main.
Smoky Hill, Inc. $258,150.50
Commence July 1, 1979 and require 150 calendar days
Earth Excavation, Inc. 284,944.00
Commence June 11, 1979 and require 90 calendar days
J. S. Frank Construction Company, Inc. 239,616.00
Commence May 1, 1979 and require 180 calendar days
Stevens Contractors, Inc. 291,635.00
Commence June 11, 1979 and require 200 calendar days
Engineer's Estimate
$307,325.00
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A motion was made by Commissioner Geis, seconded by Commissioner Usher
to award the contract to Smoky Hill, Inc., as the low bidder in the amount of
$258,150.50, subject to the bid meeting the Engineer's specifications. Ayes:
(5). Nays: (0). Motion carried.
AN ORDINANCE was introduced for second reading entitled: "AN ORDINANCE
specifying the penalty for improper parking and the manner of payment thereof;
amending Section 22-180 of the Salina Code and repealing the existing section."
A motion was made by Commissioner Duckers, seconded by Commissioner Graves to
adopt the ordinance as read and the following vote was had: Ayes: Graves,
Usher, Duckers, Geis, Weisgerber (5). gays: (0). Carried. The Mayor approved
the ordinance and it is numbered 8707. The ordinance was introduced for first
reading March 19, 1979.
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AN ORDINANCE was introduced for second reading entitled: "AN ORDINANCE
providing for the manner of notification to the operators of motor vehicles who
are over parked and providing for the manner and payment of the penalty therefor;
amending Section 22-190 of the Salina Code and repealing the existing section."
A motion was made by Commissioner Usher, seconded by Commissioner Duckers to
adopt the ordinance as read and the following vote was had: Ayes: Graves,
Usher, Duckers, Geis, Weisgerber (5). Nays: (0). Carried. The Mayor approved
the ordinance and it is numbered 8708. The ordinance was introduced for first
reading March 19, 1979.
A RESOLUTION was introduced and passed entitled: "A RESOLUTION
designating and establishing parking meter zones within the City of Salina,
Kansas, and the respective time limits therein; repealing all existing resolution
in conflict with the provisions of this resolution." A motion was made by
Commissioner Duckers, seconded by Commissioner Graves to adopt the resolution as
read and the following vote was had: Ayes: Graves, Usher, Duckers, Geis, Weisger
(5). Nays: (0). Carried. The Mayor approved the Resolution and it is numbered
3417.
THE CITY ENGINEER filed plans and specifications for Engineering
Project 79-649 for Machine Laid Seal of certain streets. A motion was made by
Commissioner Geis, seconded by Commissioner Usher to approve the plans and
specifications as filed by the City Engineer. Ayes: (5). Nays: (0). Motion
carried.
A MOTION was made by Commissioner Geis, seconded by Commissioner Usher
to set the date of April 9, 1979 to receive bids for Engineering Project 79-649
for Machine Laid Seal of certain streets, and to instruct the City Clerk to
advertise for bids. Ayes: (5). Nays: (0). Motion carried.
THE CITY ENGINEER filed plans and specifications for Engineering
Project 79-650 for the Slurry Seal of certain streets. A motion was made by
Commissioner Graves, seconded by Commissioner Duckers to approve the plans and
specifications as filed by the City Engineer. Ayes: (5). Nays: (0). Motion
carried.
A MOTION was made by Commissioner Graves, seconded by Commissioner
Duckers to set the date of April 9, 1979 to receive bids for Engineering Project
79-650 for Slurry Seal of certain streets, and to instruct the City Clerk to
advertise for bids. Ayes: (5). Nays: (0). Motion carried.
PUBLIC AGENDA
CEREAL HALT BEVERAGE License applications were filed by:
Lenore Bowles, d/b/a Anthony's Cafe, 321 "forth Santa Fe. (New
application)
Lynn R. Berg, d/b/a Red Pussy Cat, 1111 West South Street. (New
application)
The City Clerk reported the applicants have paid the required fee and
the applications have been approved by the Health Department, Zoning Officer and
Police Department. A motion was made by Commissioner Usher, seconded by
Commissioner Duckers to approve the license applications and authorize the City
Clerk to issue the licenses. Ayes: (5). days: (0). (lotion carried.
A LETTER was received from the Salina Area Chamber of Commerce, for
representatives of the Salina Area Chamber of Commerce and Salina, Inc. to
address the Commission on the matter of Industrial Revenue Bonds.
Mr. Bob Gordon, past president of the Salina Area Chamber of Commerce
read a prepared statement:
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"Mr. Mayor, I am Bob Gordon, immediate past president of the Salina
Area Chamber of Commerce and Board of Directors.
"The Salina Area Chamber of Commerce believes that the 1961 Kansas
Bill authorizing municipalities to issue revenue bonds to stimulate and develop
the economic welfare and propserity of Kansas was a good bill. During the past
17 years the bill has helped Kansas and has helped Salina grow industrially.
The bonds offer a unique means of financing new and expanded plant facilities
and equipment. Industrial bonds are being used by more and more large and small
companies to help them expand and create more jobs for our citizens. He think
this is a healty situation.
"The Chamber board believes that a portion of your recent action taken
to establish a new policy regarding the issuance of bonds is a deterrent to
future economic growth in Salina --- just another pebble in the eyes of a
prospective firm viewing this community as a possible place to build or expand.
We believe this action may be interpreted to be a negative attitude toward
economic growth. Most communities (that are competitive with Salina) do not
require such a procedure. Therefore, they would seem to have an advantage.
Many times a community attitude will determine where an industry finally locates
--- a positive one always helps.
"We find no particular fault in the required $500 application fee but
respectfully request that for the mentioned reasons you rescind that portion of
the resolution pertaining to the charging of 1/2 of 1% of the bond issue.
"The Chamber assumed a position in 1976 (when General Battery broke
ground in Salina) that we would work for a controlled growth and not aggressively
seek another major plant for two years or whenever the addition of an industry
could be absorbed within the community without causing a hardship to existing
industries, schools, environment, utilities or the housing market. He want to
continue to work for the orderly growth and welfare of our citizens to help to
provide jobs for all who need to work. Please reconsider your action taken to
charge a fee of 1/2 of 1% of the bond issue to a business firm who is interested
in "growing in Salina". Keep Salina competitive in all areas of industrial
development.
"Thank you very much."
Mr. Ken Stephenson, representing Salina, Inc., read a prepared
statement:
"I am Ken Stephenson and I am here representing Salina, Inc. Salina,
Inc. was formed several years ago to promote controlled industrial growth in
Kansas by making reasonable priced industrial land available to prospective
firms seeking a site on which to build. The corporation is composed of business
and professional persons who have pooled their own resources for the purpose of
acquiring desirable industrial land. The land is then offered to selected
industry at no profit. Our purpose for existing is to help this community grow
by creating more jobs.
"The Board members of Salina, Inc. feel your industrial revenue
resolution requiring prospects to pay $500 to apply for a bond issue, plus pay
an additional 1/2 of 1% of the issue, is counter productive to the purposes and
objectives of Salina, Inc.
"Psychologically the resolution is telling prospective bond users that
Salina does not want additional growth.
"On behalf of Salina, Inc., we hereby ask you to delete the 1/2 of 1%
charge since it is not, at least in our opinion, to be in the best interest of
promoting industrial development in Saina.
"Thank you."
COMMISSION AGENDA
"RECONSIDERATION of a resolution on industrial revenue bonds which
was approved on March 5, 1979. (Action was delayed from the March 19, 1979
meeting)
Mayor Weisgerber - Anyone else here to speak to this at the moment?
Do any of the Commissioners have any questions they wish to ask of the Chamber
of the Salina Inc. group?
Commissioner Geis - Well, it seems to me in listening to both of the
presentations that the 4 of 1 percent is the issue here, but what I am not
picking up is if you object to the 4 of 1 percent as that amount which should be
charged as a service fee or if you are opposed to the concept of the service fee
entirely. Both have mentioned the 4 of 1%. Mr. Harrison has presented us with
a list of recent issues and has made some comparisons with the proposed 4 of 1%
rate and an item that we discussed last week which was ,% on the first $500,000
and 4 % on the second $500,000 up to a million I think and then just cut off at
that point and a third possibility of a flat $200 per year and yet another
possibility of 4 of 1%, and I am not sure, are you opposed to the concept of the
fee entirely or are you opposed to the 4 of 1% as being that fee.
Bob Gordon - The position of the Chamber, I believe, would put us in
opposition to any service fee. I believe that is correctly stated, as the
position the Salina Area Chamber of Commerce has taken.
Commissioner Duckers - Bob, but you have no - you find no fault with
an application fee of whatever it would take to cover the actual cost to the
city.
Bob Gordon - None whatsoever.
Commissioner Duckers - Don, is the $500 figure we have been using is
that, am I correct in assuming that we are talking about it costing us about
that to prepare an application fee.
Don Harrison - I think this is pretty well correct.
Commissioner Duckers - Would that be true of say $150,000 or a
$15,000,000 it would cost us about the same on either one. The same amount of
work.
Mayor Weisgerber - for getting it off the tax rolls.
Commissioner Graves - So if we were to go with the application fee and
the application, which to me was the most important part of our resolution, was
a 2 page application form so that we could treat each applicant fairly and get
the same information from each applicant instead of just them coming in and
telling us what they want to tell us and we have to dig for the facts that the
burden has been on the commission to dig for certain facts when it should be on
the applicant to provide uniformly, and this is what I think they do in quite a
few cities. But the $500 application fee is apparently no, considered not to be
a barrier. Then maybe in a couple of years we could see how much time it
actually takes as an indirect cost to the tax payer. I don't think it was the
position of the Commission that we want to make any money on these, but I don't
think we want to lose money indirectly, as far as to the, you know the City of
Salina is the tax payers. We didn't feel the tax payers should have to indirect'
pay for any costs of an industrial revenue bond issue. Do you all feel that the
tax payers should? Or shouldn't? ..
Commissioner Geis - Well, if they feel we shouldn't collect a service
fee then I think they are saying that they feel the tax payers should support
that additionally, because it seems to me that we discussed there would be
certain costs involved in servicing those things on a yearly basis, just in
notifying and that kind of thing. And I, unless I am really mixed up on that,
wasn't there some additional charges necessary in ..
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idea. Don Harrison - I don't think the service fee in the beginning was my
Commissioner Geis - No,, I am not saying ..
Commissioner Usher - Well, most of the services are performed by a
trust department some place in a bank.
Don Harrison - I do some yearly checking and some reconcilliation, and
some things that don't involve too much as far as my office is concerned. There
are other staff people involved in it, besides my office.
Commissioner Usher - Well I think we are making a dramatic change in
this particular area by the application and the application fee and I am ready
to concede that we probably went a little bit further than we maybe should have
with a service fee and ..
Commissioner Geis - .. I am not ready to concede .. I am willing to
concede the z of 1% might have been a little high, but ..
Commissioner Usher - Well, I think, of course there is a difference in �
philosophy Dan, the Chamber here has assured us that their position is to try to
maintain an orderly growth and that is what I am really interested in. There is
really no sense in our making it any more difficult for them in talking with new
industry. I think with the $500 fee and application and with the other requirements
we have along with it, is all we need at the present time. i
Commissioner Geis - Well, Sill, I feel that based on the what I was
hearing when I was campaigning for this position 2 years ago, knocking on doors
and one thing and another, that too many people felt that the City Commission
was simply an extension of the Salina Chamber of Commerce. That I am - I can at
this point see if a business is interested in locating in the City of Salina
because, and it will do it if it is to its best interest. If this is the location
they have chosen because of our central location because of our transportation,
communications whatever else, they are going to locate here and a service fee is
not going to be a prohibitive factor. And I am willing to concede, as I mentioned)
earlier when I interrupted you that 2 of 1% is perhaps excessive, but I am not
willing to concede that no service fee should be charged. And I think that
Karen was absolutely right in her original intent in getting some organization
to these bond applications and require them to put some money up front to separate
those people that just wanted to shoot something at us to see if we accept it or
not, but I am of the opinion that a reasonable fee could and should be established
to service these bonds. I would support the $200 per year of issue fee that has
been mentioned in that read out there, but I am not willing, for my part to
reject the concept of the service fee and those people that have commented to me
regarding my stand on this have been most supportive of it. Of course that is
probably a natural thing, nobody is going to come up and tell you what a lunk
head you are anyway, but at least the people I hear from think that the position,
is a good one, that the service fee should be collected, and I am - so that is
why I am standing on it.
Commissioner Graves - If we can just figure out how much it costs the
City Clerk's Office to service these and maybe we should look at this over a
period of a year and see, because what I hear from people on the street, many of
whom are Chamber of Commerce members, by the way, figure out, they are saying
let's figure out exactly what it costs the city on one of these and charge the
people and it would not be a deterent to any good business that wants to come to
the city. I tend to agree with Dan on the point that a business is going to
locate where it needs to be to do business, and whatever its requirement is if
it needs water, if it needs gas, if it needs highway transportation, whatever
the particular needs of that particular business. Isn't that where the business
is going to locate? How many, now just as a point of information, I think I am
educatable, if you would just explain to me, are there that many business that
it is that marginal that they will come to the community if you will offer free
tax abatement and so forth?
Bob Whitworth - Well, first of all (Caren, I don't think there are any
charges. I think the bond user pays all the charges. Is that true Don?
Don Harrison - Yes.
Bob Whitworth - Secondly, it has been stated, what you mentioned are
the basics, but on top of that sometimes that little bit of tip of the iceberg
is that we want you in Salina. We are not asking you to pay an additional $10,
or $200 or any amount of money over some of our competiting communities. And
most prospects are coming to this part of the state. We are in competition with
surrounding communities, and they can do business maybe in McPherson just as
easily as they can in Salina. Some of the people that we have worked with have
located there and in Ellsworth and in the surrounding communities. This is one
more little thing that says we are not exactly particularly happy to have you
locate in Salina, and so the people over there, my counterpart, they are saying
come to our town, there isn't any extra $200 or $500 or whatever. The
application part, and I think Don will verify this, that there should be a fee
charged for that, but beyond that there isn't any cost to the taxpayers. Whoever
asks for the industrial revenue bonds pays those expenses.
Commissioner Geis - If we issue them with a cost on the basis of tax
forgiveness there certainly are.
Commissioner Graves - We haven't even gotten to that question, but
McPherson, by the way, has an annual service fee of $100 which ends up if the
life of the bonds is 10 years, that is $1,000.
Bob Whitworth - I don't think it is the amount of money Karen, I don't
think a firm is going to quibble over paying the $200. I think, as Mr.
Stephenson, pointed out it is the psychology of asking them to have to pay that
amount of money. It is my belief and we would be perfectly happy for Don to
take a couple of years with some experience with industrial revenue bonds determil
just how much it does cost or how much time the staff is involved with the
industrial revenue bonds. But it is my understanding that all those charges are
billed back to the person requesting the industrial revenue bonds. They pay for
those charges.
Commissioner Duckers - I think it is a matter of whether this Commissio
wants to present a negative or positive attitude and present that to industrial
prospects that may be looking at our community. Frankly, I think I made a turn
over last week. I voted for the z percent hastily and I am willing to say I
think I made a mistake and that we get the $500 up front that is going to cover
us and then we go forward as a partner with the Chamber of Commerce in the
industrial development of this community. That is my position on it, very
simple.
Mayor Weisgerber - We have had several alternatives presented here. I
am not sure whether the Chamber understands all these or not, or whether they
have had the advantage of the little sheet our City Clerk gave us, but what we
originally, aside from the $500, what we originally was talking of course was z
of 1 percent. Now this is all kind of admitedly was off base on. that. That
would require fees over the years of the bond issues that we have issued at the
present time. One firm would be effected to the extent of $40,000 a couple
would be in the $10,000 range, and 2 or 3 in the $5,000 range. The other
possibility that was suggested along the way the maximum of $200 per year for
the life of the bonds. If it is a 20 year bond the maximum there would be a
payment of $4,000 no matter how large the bond issue. The other suggestion that
we had last week, or one of the other suggestions was z of 1 percent on $500,000
and 4 percent on the next $500,000 with a maximum of nothing over the 1 million.
This action would produce on the average in most cases, less revenue that the
$200 per year running from a maximum of $3,750 on down. The other possibility
was to say 4 of 1 percent up to 1 million, and that produces yet less than the 2
on the first five and the 4 on the next.
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Commissioner Duckers - But Jack, why would we consider any of those if
we are saying that we want it simply to pay what it costs. Why don't we figure
out whether the $500 is right, I don't know. It may not be enough, it might be
too much. If we are saying we are not going to try to get fat off company XYZ
that is considering coming here, we simply want them to pay what it costs, why
would we consider an annual any type of an annual..
Mayor 14eisgerber - Alright, if you want to do away with it all together
that is one thing, but up until today the alternatives that we had considered
were these that I mention now. I don't think until .. as last week the Chamber
and Salina Inc. were not here. We were talking of putting a maximum on either
the z of 1 percent or changing the 2 of 1 percent and revising it downward. And
these were the alternatives that we had thought of up until today's meeting.
Now if you are going back and saying go with the $500 and eliminate all this,
that is fine; but I am not sure, from what I am hearing, I think perhaps you and
Bill are wanting to do this. Dan is not. I am nut just sure where Karen's
position on this is, so ...
Commissioner Graves - Well I think my position is I wanted the applicatil
blank first of all because we are seeing many, many small issues that are not
providing jobs, they are not doing any of the things that was the intent of
industrial revenue bond financing. We want the application fee because we don't
think it is a deterent. We think it is perfectly reasonable to ask for the
application fee, and by the way I am glad that you all are here today because
this is the 3rd time we have had it on our agenda and I think this is the forum
to discuss this and I am glad you came so we could have this dialogue because we
have been depending upon what is written and what is .. and that is not always
the full story. But I think I would go along with the application form so we
can get the information to do the best thing possible for our community. I
think that is what we all have in common is we are trying to do what is right
for our community, ask for a $500 application fee and recind the part where we
ask for the 2 of 1 percent and then ask Don to keep track of what it costs in
his office to keep track of the stacks of papers and make the phone calls and so
forth, and in a couple of years or a year we can see what it costs and have a
figure on that. If it costs something I am not - I don't think it is going to -
any industry is not come to Salina because we are asking them to pay their way
through the City Manager's office. I don't think that at all. I do not buy the
fact that it is ..
Commissioner Geis - .. Karen, if your proposal were to pass, then in
effect you are saying that we are not going to issue any bonds for at least a
year because we don't know if we are going to service - require a service charge.
Commissioner Graves - No. Just ask for the application form and the
application fee so we can get this information from these people.
Commissioner Geis - 14hat if, in fact, that an application fee should
have been collected - not an application a service charge should have been
collected?
Commissioner Graves - !--]ell we will sit down - I mean we have been all
these years without any thing ..
Commissioner Duckers - Dan, this is a simple resolution and if we six
months down the road find that we are wrong, that it is costing us more than
this you can always amend the resolution or adopt a new one. I am saying I
think it is very important that the philosophy that we project whether we are
positive toward industrial growth or negative toward it, and I think if it is
$10.00 you are going to nick them. They are going to have this feeling that
this town really doesn't care whether we come or not, or they are making it
difficult for us to come.
Commissioner Graves - I don't agree with that at all.
Commissioner Duckers - Well now, why don't you?
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Commissioner Graves - Because McPherson charges $1,000 over a period
of 10 years and they are getting industries and you know when we have talked
about tax concessions, Kansas is the only state that even considers tax concessi
I mean I don't want to get in this whole thing, but you know we are not losing
industries because of IRB's we have had a wide open IRB thing. We have - our
labor pool is not very good. Isn't that probably why we are losing industries?
You know and to try and say ..
Bob Whitworth - Nell there is utility rates, when -you want to talk-abou
McPherson it is almost apples and oranges. There are some other concessions
they have in other communities that we don't, and this is one tool that we can
offer that maybe the other communities cannot, and I think it is a positive
position to say that we want you to come we will do what we can.
Bob Gordon - Well, your honor, I think that regardless of whether we
are belonging to the city commission or whether we are on the board of the
Chamber of Commerce, since we all have a very large responsibility to see that
Salina does the best it can to grow at some rate. I don't plan on being New
York, but I do here very soon assume some responsibility to see that possibly
Salina does do a little growing or moving forward. I think anything we can do
together to see that this happens would be at least some kind of action. I know
something a little bit about McPherson. McPherson does have some excellent
utility rates. They have a tremendous power plant that - and we don't even
generate our electricity here. It is done in Hutchinson and in Abilene and in
Topeka and it is sent here, which we pay for. But I think to charge z percent
is what we are really excited about. I think we want to pay for the application.
We want to get this done, and I think we are going out to get these companies
and we have to compete with other cities in doing this. And I am sure you are
all aware of this and our youth leave here because we don't have added industry.
I mean we can't get good experienced people in here in trade. We don't have
people in trade, we have a lot of assembly type persons and this type of thing,
but it makes it difficult here. We need to get the youth back here. We need
jobs to put these people in. If we don't go out and compete and bring these
people in here that will employ and bring people in that we can employ I think
we really aren't doing the job and I think the best we can do is to pay for
these things. We don't want the city to pay for the application. I think they
will pay for it and I think we have said that and I think we have said the $500
probably sounds pretty reasonable, but we don't even know what it costs. I
think we need to go on, issue bonds, find out what it costs and I think those
people will pay for that, but to pay thousands of dollars just for the opportunit
to get them which probably isn't a good statement, but still I feel the 2 of 1
percent is excessive. I don't think we need it. I think we need to go out and
compete. That is what we need to do to compete the best we can for these cities
to get in. Why these companies are going to McPherson mainly is because of the
utility rates. I believe that, and I know I am repeating what is said, but we
do have to compete and the 2 of 1 percent is too much ..
Commissioner Graves - and why all this on this dazzeling array of
chamber leadership is here I would like to complete the quote that was left
incomplete in the Salina Journal when I said the Chamber of Commerce has not
brought an industry in 2 years the rest of the quote was to ask for IRB financing,
but for some reason it was deleated and it gave a completely different tenor. I
said in the two years I have been on the bench the chamber has been here to ask
with a new industry to ask for IRB financing and it is a matter of record in the
minutes and it does make quite a difference in the way it is interpreted, so ..
Commissioner Geis - I have heard all this verbage about competing with
other communities. Do we win if another industry comes into Salina, draws down
on our natural resources. Draws down on our fuel supply, makes demands on our
water system. Increases demands for services which are going to be borne by the
tax payers that are already residents of the community.
Mr. Exline - Could I answer that?
Commissioner Geis - Sure.
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Mr. Exline - I own a business out here. I plan to grow and if Salina
isn't going to be able to do that I have got to go someplace else and expand.
And I don't know what taxes my company pays into the area but I think it is
pretty reasonable and I think I have quite a few people working for me, so if my
business has to leave this is part of expansion. And we applied for bonds here
to and we weren't able to do that because it wasn't either large enough or we
already completed our expansion. But I am interested in Salina I am interested
in staying here and if we don't grow we will lose the industry we have if we
don't take an advantage. If we are going down hill enough we don't have water,
we don't have the utilities we better go out and get those things so we can.get
industry so we can grow and move down. We will end up like Gypsum, Kansas.
Mayor Weisgerber - I would like to ask a question and it is a little
it is on this general subject it is outside of precisely what we are talking
about here, yet it enters into this whole picture. The reason this whole thing
came up at this particular time is we are getting a number of requests for
relatively small bond issues as bond issues go. $325,000, 280,000, 250,000 1/3
of a million and below. These are not new businesses that are coming into
Salina and bringing in new payroll. They are businesses that are either perhaps
altering an old or existing building or moving to another building that is in j
Salina, and updating it and bringing it up to date. Where does the Chamber - 2
things in the first place is of course the cost of doing this, but the other
thing is this matter of tax and tax forgiveness. This is entering a whole new i
thing into the picture. Do you Chamber people have any particular feeling about
this? I wonder. First here comes the Salina Journal, builds quite a nice new
addition over there on their building for storage and all and they don't ask for
this in revenue bonds. They finance this themselves, it goes on the tax roll
and they will pay taxes on it. A number of the rest of you in the same position.
Some of you are on the other side of the fence. How do you feel about tax
forgiveness on all these small issues that are not bringing in new payroll and
new additions. How do you feel about this? Should we change our policy on this I
were are we?
Bob Whitworth - If I may speak to that issue, we have a policy that we
are pursuing at the present time. It was established I believe in 1973. A j
meeting was held by the 5 commissioners at that time, Stan Nelson and myself,
and the former city manager. We drew up a policy. We are still using that
policy. We have no instructions that it isn't the policy being pursued by the
City Commission. In there if you read it outlines the position. It talks about
competing industries, it talks about local retail firms. If you could review
that policy I think and I have to go back to the chamber board, but I think we
i would still abide by the present policy as being satisfactory and in the best
interest of good business.
Mayor Weisgerber - I think what that policy says is, if a firm expands
whatever they are on the tax rolls for at the present time, stays there, but j
their new addition or whatever it may be is tax free. This I am perhaps
questioning a little at this - if we would get into the position where everything
that expanded or added on in Salina or all these small industries all came off
the tax roll, this could conceiveable create something of a problem so far as
your expanding appraisal on which you are going to have a levy. Is there any
possibility that maybe this particular policy should be changed with regard to
tax forgiveness?
Bob Whitworth - Well, maybe from this the best thing that could happen
is that we start all over again. I have a copy of the policy, and it was dated
May 22, 1972 and that is almost 7 years ago, and I would welcome the opportunity
for representatives of the Commission and persons involved in Industrial Development
sitting down and reviewing the policy and have one we can all be proud of, and
be telling the same story.
I
Commissioner Graves - We need to do that because here I have got that
memorandum of understanding and one of the points is we would not issue industrial
revenue bonds - it says plant location shall be selected either within the
present corporate limits of the city or her close environs. Now I know we have
issued some lately that are ourside the city limits, and it seems like if we do
that we should ask someboty to sign a form saying when annexation time comes
that firm will not fight annexation, perhaps. I think a lot of cities do that I
imean all those things need to be looked at.
Bob Whitworth - Yes, and those later issues, Karen, are not issues
that the Chamber brought over here. Originally the industrial revenue bond was
to help create jobs and what has been happening lately is some abuse to the
policy. I think ..
Commissioner Graves, Duckers, Mayor Weisgerber - that is where it all
started ..
Commissioner Geis - This is something that really frustrates me. One
of the biggest issues we have got here is General Battery, total of nine million
some dollars and the workers have to have their blood level checked for the lead
content. And I just ask myself is this really what we want in Salina, Kansas?
Do we want to bring in jobs subsidized in effect, by the city, where criminatley,
they have to have their blood level checked? Now what else is happening out
there? I mean I realize there are strict controls on those things, but there
have got to be some trade offs in that kind of stuff.
Commissioner Usher - I do have a question of the Chamber and some of
the commissioners have alluded to the problem we have been faced with that we
have had several smaller issues that have come directly to the commission. How
do you respond to the idea that maybe we would have every request go through the
Chamber of Commerce, Industrial Development Committee or something like that?
Bob Whitworth - Well I think Bill if we had this policy outlined and
we all agreed to it that we could just pull it out and say this is it then I
would welcome that opportunity.
Commissioner Usher - Well, we in fact delegate the economic development
to the Chamber and in fact we support you financially, and so it would seem to
me that the best thing to do in this particular area is maybe soften it a little
bit, make it a little easier for you, so with that in mind Mr. Mayor, I would
move that we change our resolution regarding industrial development bonds and
eliminate the service fee.
Commissioner Duckers - Second the motion.
Mayor Weisgerber - We have the motion and the second, let's get a
little more comment from the folks out front, if we may, before we act on this,
because I know some of you have been to get a word in between what the Commissioner
were saying without a great deal of luck. Dennis, you had a comment you wanted
to make.
Dennis Poer - Mr. Mayor, I was going to mention that at our last, I am
on the board of directors of the Area Chamber of Commerce and at our last meeting,
we talked about industrial revenue bonds and Gary Talley made the motion and I
seconded that this issue and problem be referred to our Industrial Development
Committee for research and a report to the Board of Director, so when you ask
questions about what we are that what we belive other than what is on the printed
form, in a sense you are rushing us about 3 to 6 months and I think that I
support Commissioner's Usher motion entirely because it puts us in the position
we want to be now and then we can sit down like smart gentlemen and ladies and
work on this issue.
Mayor Weisgerber - You are right in what you say and I brought that up
and I am sure it is ahead, you weren't really involved in that today but while
everyone was here I thought it might be a comment we should make because I think
we are a little concerned about increasing the appraisal values in the city as a
whole, your tax base, and everyone began to swing to this sort of thing for
every small issue for tax forgiveness, we could possibly be creating some
future problems, and we have a little concern about that. Is there anyone else
out here, there were some hands up, any other comments?
Commissioner Geis - I call for the question.
Ayes: Graves, Usher, Duckers, Veisgerber (4). Nays: Geis (1). Motion
carried.
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A RESOLUTION was introduced and passed entitled: "A RESOLUTION providin
the procedure for requesting the issuance of industrial revenue bonds by the
City of Salina, Kansas; repealing Resolution 3411."(0mitting the A, of 101 servic
fees) A motion was made by Commissioner Usher, seconded by commissioner Duckers
to adopt the Resolution as read and the following vote was had: Ayes: Graves,
Usher, Duckers, Weisgerber (4). Nays: Geis (1). Carried. The Mayor approved
the Resolution and it is numbered 3418.
A MOTION was made by Commissioner Duckers, seconded by Commissioner
Graves to add appointments to boards and commissions to the agenda for action.
Ayes: (5). Nays: (0). Motion carried.
THE MAYOR with the approval of the Board of Commissioners made the
following appointments:
Salina Arts Commission
Glenn Ethridge appointed to succeed Rick Crause for a 3 year term to
March 10, 1982.
Mrs. Jim Otto, appointed to succeed Mary Jarvis for a 3 year term to
March 10, 1982.
Chris Shively, appointed to succeed Dick Zimmerman for a 3 year term
to March 10, 1982.
The following items were brought to the floor for discussion:
Commissioner Usher ask the City Attorney about the status of the
Kanopolis Irrigation District.
Mr. Bengtson reported - Bill's inquire to me was what is the status of
the City of Salina's water in the event that the Kanopolis Irrigation District
is not formed, and as I explained to Bill, Kanopolis dam was originally construc
as a flood control dam only, under the control of the Corps of Engineers. !Then
the Bureau of Reclamation promoted the Kanopolis irrigation district below the
dam in order to be able to store water in Kanopolis for both irrigation purposes
and municipal purposes, it was necessary for the Bureau of Reclamation that owns
Cedar Bluff dam they control Cedar Bluff near Hays, Kansas and the Corps of
Engineers that control Kanopolis entered into an agreement. In this agreement
the Bureau of Reclamation agreed to store 160,000 acre feet of flood water in
Cedar Bluff in exchange for the Corps of Engineers making 160,000 acre feet of
water available for irrigation and municipal storage at Kanopolis. Now it is
my understanding that in the event the Kanopolis Irrigation District were to be
dissolved as mention has been made, then that there would be no provisions for
storage of municipal water at Kanopolis. I feel congress could pass enabling
legislation which would authorize the Corps of Engineers to store municipal
water at Kanopolis, but I don't think without enabling legislation there is any
provision for municipal or industrial water at Kanopolis, without the district
being formed.
The Commissioners discussed possible alternatives.
Commissioner Graves asked about the status of Lower Indian Pock Baseball
Complex, and asked if they they will be ready for play this year?
Mr. Harris reported the diamonds will probably not be ready for play
this year, and said he would have a report next week.
Commissioner Duckers asked Mr. Harris to check on the trees being
planted around the Bicentennial Center. Fie said the trees are not going to be
acceptable and they might as well stop putting them in the ground.
A MOTION was made by Commissioner Geis, seconded by Commissioner
Duckers that the Regular Meeting of the Board of Commissioners be adjourned.
Ayes: (5). Nays: (0). Motion carried. The meeting adjourned at 5:03 P.M.
D. L. Harrison, City Clerk