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04-13-2020 Minutes CITY OF SALINA,KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS April 13,2020 2:30 p.m. Mayor Hoppock asked the Clerk for verification that notice had been sent for today's City Commission meeting. The Clerk replied yes. The Regular Meeting of the Board of Commissioners was called to order at 2:30 p.m. in Room 107, 176 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 Michael L. Hoppock (presiding), Commissioners Trent W. Davis, M.D., Rod Franz, Melissa Rose Hodges (via phone),and Karl Ryan. Also present: Michael Schrage, City Manager; Greg Bengtson, City Attorney; and Shandi Wicks, City Clerk. Michael Schrage, City Manager, confirmed that Scott Gardner, Director of Continuous Process Improvement,verified that the telephone conference was working,Salina Media Connection audio and live meeting was working, and the YouTube Live was working. Mr. Gardner confirmed that they all were working properly. Mr. Schrage explained how a citizen could call in to participate in the meeting. He also explained how executive sessions would work but mentioned there were no planned executive sessions for today's meeting. Greg Bengtson, City Attorney, stated the timing of the bond related agenda item was important enough that he had talked with Bond Counsel asking that we instruct any viewers what they should do if there were any disruptions to the meeting connection. Mr. Schrage provided the options for citizens to view and listen to the meeting. AWARDS AND PROCLAMATIONS (3.1) The day of May 7, 2020 as "Day of Prayer" in the city of Salina. Mayor Hoppock read the proclamation. CITIZENS FORUM None. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. CONSENT AGENDA (6.1) Approve the minutes of April 6,2020. 20-0116 Moved by Commissioner Ryan, seconded by Commissioner Franz, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. ADMINISTRATION (7.1) Follow-up Financial Discussion. Page 1 Michael Schrage, City Manager, explained the discussion at the April 6, 2020 meeting, and what the City Commission asked staff to review and provide. Debbie Pack, Director of Finance & Administration, explained the revised financial estimates. Commissioner Hodges asked how often the unemployment statistics were available. Ms. Pack stated the State of Kansas unemployment statistics were available weekly but that did not include the county statistics. Commissioner Hodges also asked if the number of unemployed individuals (1,034) included the 538 in April. Ms. Pack stated the 1,034 was in January, 2020 and 538 were new claims as of April 4,2020. U Ms. Pack continued to explain the general fund 30, 60, 90 day stay-at-home projections. Mr. Schrage provided additional information regarding the general fund projections. Commissioner Franz asked if the off-setting savings had been netted out. Ms. Pack stated yes, they had been netted out based on the conversation last week or conversations with department heads to reduce the items. Ms. Pack explained the sales and use tax revenue for 30, 60,90 day stay-at-home. Commissioner Hodges asked if under department stores included Wal-Mart and Target, etc. Ms. Pack stated each store would decide which category they would fall in. Mr. Schrage stated that at a staff level, staff could review that information but due to confidentiality agreements, staff could not provide that information out. Commissioner Ryan asked where internet sales came in at. Mr. Schrage stated internet sales would be listed under use tax and Ms. Pack explained where those were located on the spreadsheet. Ms. Pack explained the EMS revenue and personnel services. Mr. Schrage explained a future agenda item for today regarding part-time staffing and the capital improvement program amendment. Commissioner Hodges asked if these items had been calculated in as suggested by Commissioner Franz. Ms. Pack stated yes, that was correct. Commissioner Hodges asked if the reduction in programing for Parks & Recreation would see a net loss. Mr. Schrage stated we wouldn't see a net loss but a net gain. He also stated that the 56% decrease in fees that would be the loss of Kenwood Cove admission and recreation programming fees was accounted for but the expenses eclipse the revenue to the point it would be financially helpful if we discontinued losing money on those programs. Ms. Pack continued to explain the expenditures potential savings on commodities,contractual services, and capital outlay. Commissioner Franz asked if this was in the general fund. Mr. Schrage stated yes. Ms. Pack mentioned that most of it was computer technology equipment purchases. Ms. Pack explained property tax,commercial versus residential. Mayor Hoppock asked if staff was looking at a 10% delinquency in property tax. Ms. Pack stated yes. Mayor Hoppock stated the delinquency would be approximately $1.2 million dollars. Ms. Pack stated yes and stated she had reached out to Saline County to see if they had seen any delays. She continued to state that Saline County did not see any delays at this time. Ms. Pack explained the debt service fund and sales tax capital fund. Mr. Schrage explained the decision point that the City Commission would need to make. Page 2 Ms. Pack explained the authority to transfer sales tax proceeds to the general fund and reduction to sales tax capital expenditures. She also explained the tax lid and the exceptions. Mayor Hoppock asked who would make the decision on exemption (E) "expenses relating to a federal, state or locate disaster or federal, state or local emergency, including but not limited to, a financial emergency, declared by a federal or state official. The Board of county commissioners may request the Governor to declare such disaster or emergency." Ms. Pack stated the State of Kansas Department of Administration. Mayor Hoppock stated it would 79- be helpful for the League of Kansas Municipalities (LKM) to reach out to the Department of Administration to ask the question. Mr. Schrage stated that he could reach out to get additional clarity on it. Mayor Hoppock stated it would be worth the phone call to check and see. A conversation ensued between the City Commission, Mr. Schrage, and Ms. Pack regarding the exception. Ms. Pack explained the transfers from other funds. Mr. Schrage provided additional information regarding the bond sale for the bond and temporary note agenda item later in today's agenda. Ms. Pack explained a portion of the City of Salina's financial policies relating to transfers. Ms. Pack explained the special parks & recreation fund. Commissioner Franz asked if those expenditures were identified for a specific list. Ms. Pack stated no, but would mention that the expenditures were meant to cover items on the Parks Master Plan. Mr. Schrage mentioned that the Dean Evans Drainage project was coming from this fund. Commissioner Franz mentioned that money from this fund could be used to fill in any shortfall in the golf course fund. Ms. Pack explained the sales tax economic development fund. Mr. Schrage provided information regarding the childcare coalition initiative. Commissioner Hodges asked if absent any cash requests there would be $600,000 in money to expense in 2020. Ms. Pack explained the special gas tax fund. Mr. Schrage provided additional information regarding street projects that could be funded from the special gas tax fund. Commissioner Franz stated that it may be beneficial to ask if the LKM would see any changes in the distributions for special gas tax. Mr. Schrage stated that he was on a call with the LKM and provided the information he was provided. Mayor Hoppock stated that it would interesting to know what the delay would be on the special gas tax. Ms. Pack explained the Tony's Pizza Events Center (TPEC) fund. Mayor Hoppock asked if the City of Salina had any say on staffing. Mr. Schrage stated that they get service fees and some varying fees based on performance. He continued to state that Spectra did submit a budget and explained the steps Spectra was taking and planning to take in the future. Ms. Pack explained the golf course fund. Mayor Hoppock provided information regarding other municipalities reopening golf courses and stated it may be worth doing research on. Mr. Schrage stated that staff could look at that and wanted to give the golf course staff credit for altering the tee times, etc. but when the stay-at-home order went into effect, staff was trying to limit the amount of staff working. He continued to state staff was doing their Page 3 best to keep up with mowing the fairways. Commissioner Hodges stated that the COVID cases were not projected to peak until late April or early May and thought there was a need to move this out a little longer. Mr. Schrage provided additional information on shifting staff resources to parks that did not have a fee. A conversation ensued between the City Commission regarding the reopening of the golf course. Ms. Pack explained the sanitation fund. Commissioner Franz stated there would be a shift in volume on the amount of trash with residents working from home or being home more. tMs. Pack explained the solid waste fund, the water and wastewater fund, outside agency N support. Commissioner Hodges asked if staff had reached out to any of the agencies on 0 potential deductions. Mr. Schrage stated he had not done that yet but could reach out to each of them. Ms. Pack explained the Memorial Hall maintenance, Salina Art Center and Salina Community Theatre maintenance. Mr. Schrage stated a majority of the cost were custodial staffing along with electric and gas and building maintenance. Commissioner Franz asked what the sub-contract was for the Salina Community Theatre. Mr. Schrage stated there was roofing and HVAC work performed on the theatre building. A conversation ensued between the City Commission and Mr. Schrage regarding the projects. Commissioner Hodges asked if these were contracts that staff would be taking a look at. Mr. Schrage stated yes. Ms. Pack provided information on the City of Salina vendors. Commissioner Hodges would like to take a deeper dive on legal expenses. Ms. Pack explained the monthly and cumulative operating margin for the 30 day, 60 day and 90 day stay-at-home projections. Mr. Schrage stated that he had requested staff to create the information and explained his request. Ms. Pack explained the net income in general fund and sales tax fund in the 30 day, 60 day, and 90 day stay-at-home projection. Mr. Schrage explained the decision point needed and staff's recommendation was to authorize use of saving in sales tax fund to backstop the general fund. Commissioner Ryan provided his thoughts on the recommendation. Commissioner Franz stated although he agreed with the recommendation,he would prefer to keep the recommendation for use later. Mr. Schrage explained that knowing that this was available for use it would help to make decisions easier. Commissioner Hodges asked what transfer from the sales tax fund to the general fund would do to the bond. Mr. Schrage stated that the bond rating that staff just went through was good and explained what the transfer would do in the future. Mayor Hoppock stated the transfer was not something that had to be done today and asked if there was a reason to do it right now and asked if staff wanted the Governing Body to state it was philosophically good for today. Mr. Schrage explained the recommendation and the reserve balances. Mayor Hoppock asked if a motion would help staff. Mr. Schrage stated he had enough information to move forward. A conversation ensued between the City Commission and Mr. Schrage regarding the recommended action. Page 4 (7.2) Resolution No. 20-7827 amending the 2020-2024 Capital Improvement Program and giving the City Manager the authority to reduce part-time salary expenditures, as available. Debbie Pack, Director of Finance & Administration, explained the amendments, fiscal Z impact and action options. Michael Schrage, City Manager, provided additional information on the part-time staffing. Commissioner Hodges noted some water system enhancement projects that she did not remember seeing before. Ms. Pack stated those were projects that were on page 30 of last week's presentation. Mayor Hoppock asked about the gas line to South Water Treatment Plant project. Ms. Pack stated it was also included in the list last week. 20-0117 Moved by Commissioner Davis, seconded by Commissioner Ryan, to adopt Resolution No. 20- 7827 amending the 2020-2024 Capital Improvement Program and giving the City Manager the authority to reduce part-time salary expenditures, as available. Aye: (5). Nay: (0). Motion carried. (7.3) Discussion relating to Personnel Matters. Michael Schrage, City Manager, stated that Natalie Fischer, Director of Human Resources would explain the presentation briefly and he had additional information to provide, as well. Commissioner Ryan asked if the various programs could overlap. Mr. Schrage stated they could overlap but there were different time frames for each option. Natalie Fischer, Director of Human Resources, explained the definitions within the personnel manual, personnel pay plan, provisions on hours of work and overtime, separation pay. Mr. Schrage provided additional information regarding the separation pay. Ms. Fischer explained the longevity pay. Mayor Hoppock asked what staff meant by set aside. Ms. Fischer stated the amount was budgeted in each department's budget line items. Mr. Schrage continued to explain how longevity pay was budgeted. Commissioner Franz asked if longevity pay was paid out last year. Ms. Fischer stated yes. Ms. Fischer explained the vacation and sick leave provisions. Mr. Schrage provided additional information regarding an old policy change to the sick leave provision and how that needed to factored into the conversation today. Ms. Fischer continued to explain the sick leave provisions, other leave provisions including the COVID-19 related leave. Mr. Schrage explained the Kansas Department of Labor guidance on use of the COVID-19 related leave. Commissioner Davis asked if health insurance premiums were paid on sick leave advancement. Ms. Fischer stated yes, the health insurance would remain the same it would be an advancement of sick leave only. Ms. Fischer explained the separation and reinstatement provisions. Commissioner Hodges asked if all employees had access to 160 hours of leave. Mr. Schrage stated there was 80 hours of emergency paid sick leave and the City of Salina COVID-19 80 hours. Mr. Schrage explained the Families First Coronovirus Cares Act provision. Commissioner Hodges provided a scenario and staff stated it was correct and there were several options available for use. Ms. Fischer explained additional caps to use of the Families First Page 5 Coronovirus Cares Act. Commissioner Hodges asked if there was any ability on our part for an employee that was deemed non-essential could they still be held in place but not receive a paycheck. Mr. Schrage stated there was provision in the personnel manual for an employee to elect to have a leave of absence approved by the City Manager. Commissioner Davis asked if an employee would be on a leave of absence, would the employee have to pay the health insurance premiums or life insurance, etc. Ms. Fischer stated that the Human Resources staff did work with employees to cover the health insurance premiums either during the absence or after returning to work. Greg Bengtson, City Attorney, stated as employees explore their options with department heads and Human Resources on the leave of absence there needed to be an informed decision. Mr. Schrage also provided information regarding unemployment. Ms. Fischer explained the leave of absence provision and the potential need to amend the provision. Commissioner Ryan asked if we could have a 5 minute recess after the City benefit summary. Ms. Fischer explained the City of Salina benefit summary. Mr. Schrage explained the health insurance premiums. Commissioner Ryan asked if an employee took a leave, would they continue to receive life insurance, longevity, etc. Ms. Fischer stated that she had reached out to KPERS for guidance but the life insurance policy could be paid at a higher rate. The City Commission recessed at 4:55 p.m. for a 5 minute break. The meeting resumed at 5:02 p.m. Ms. Fischer explained furloughs and layoffs in general. Commissioner Franz asked if you could furlough an employee for 20 hours a week with benefits and they would apply for unemployment for the remaining 20 hours a week. Ms. Fischer stated correct. Ms. Fischer explained the current workforce and Kansas Unemployment Insurance Benefits. Mr. Schrage provided additional information regarding unemployment. Commissioner Ryan asked if there was a way to gauge the unemployment rate impacts. Ms. Fischer stated it typically was 0.11% to 0.14% in taxable wages for our organization. Mayor Hoppock asked if unemployment benefits were state, federal tax withheld. Ms. Fischer stated there were not taxes withheld, unless the individual opted to have withholdings taken out. Ms. Fischer continued to explain the unemployment insurance benefit. Mr. Schrage continued to explain the unemployment arising from a reduction of hours. Ms. Fischer further explained the unemployment insurance benefits and Coronavirus Aid, Relief & Economic Security (CARES) Act Unemployment benefits and the Kansas Shared Work Program. Commissioner Franz asked if 10% of the employees be in the Kansas Shared Work Program could the remaining 90% be furloughed. Mr. Schrage stated staff was not sure if that was an option. A conversation ensued between the City Commission, Mr. Schrage and Ms. Fischer regarding the use of the Kansas Shared Work Program. Ms. Fischer continued to explain the voluntary pay reductions, mandatory pay reductions, modified work schedules and early retirement. Page 6 Mr. Schrage explained the comparison of the programs. A conversation ensued between the City Commission and Mr.Schrage regarding the programs offered. Mr. Schrage also explained the benefit scenario calculations and his thoughts on the options. 7.7 20-018 Moved by Commissioner Franz, seconded by Commissioner Hodges, to direct staff to prepare a specific proposal for moving forward with staff adjustments including furloughs and shared work c programs for consideration on the April 20, 2020 City Commission meeting. Commissioner Franz stated he would like to suggest that the following be considered as part of the staff proposal: immediate implementation of a hiring freeze; pursue a salary deduction plan but limit it to management, executive staff salaries, in an amount to be determined; implementation of work sharing for those work groups and employees that qualify; furlough of some employees; and schedule for assessment of the whole approach in August,2020. Commissioner Ryan stated he was comfortable with how the motion was but did not want to consider the salary deduction plan. Commissioner Hodges asked how the percentages breakdown for classified public safety and classified executive management as it related to the organization as a whole. Ms. Fischer stated there were 92 employees in the fire department and 112 employees in the police department but was not sure how that compared to executive and senior management. Commissioner Hodges stated she would like to see the comparison. She continued to state she would like to see an employee breakdown of salaries or wages. Ms. Fischer stated yes,she could provide that information. A conversation ensued between the City Commission regarding Commissioner Hodges request. A conversation ensued between the City Commission and Mr. Schrage regarding the motion on the table. Commissioner Hodges provided her thoughts on the need for hazard pay for not only fire,police and EMS but also sanitation. Commissioner Davis stated that some of the decision making would provide the roles in what the citizens of Salina need the municipality to provide for the next year. A conversation ensued between the City Commission regarding the potential need for reduction in services offered and hazard pay. Mayor Hoppock stated the sooner the better on furloughs and the use of programs available. Commissioner Davis stated if seven (7) days was not enough time, we may need to meet next Monday and setup a special meeting to cover the topic. He continued to ask if (7) days was enough time. Mr. Schrage stated that staff could try. A conversation ensued between the City Commission and Mr. Schrage regarding the programs offered. Mayor Hoppock provided his thoughts on being fair to the community as a whole and to the employees of the City of Salina. Mayor Hoppock called the question: Aye: (5). Nay: (0). Motion carried. (7.4) Authorize sale of General Obligation Internal Improvement Bonds Series 2020-A, and Temporary Notes Series 2020-1. Page 7 (7.4a) Receive report on bids received. L (7.4b) Second reading Ordinance No. 20-11029 authorizing the issuance and delivery of General Obligation Internal Improvement Bonds,Series 2020-A. 2 N Z (7.4c) Resolution No. 20-7816 prescribing the form and details of and authorizing W the delivery of General Obligation Internal Improvement Bonds,Series 2020- A. g (7.4d) Resolution No. 20-7817 authorizing and directing the sale and delivery of U General Obligation Temporary Notes,Series 2020-1. Michael Schrage, City Manager, explained the outside parties that were on the line for this item. Debbie Pack, Director of Finance & Administration, explained the history of the bond and note transaction and introduced Dave Arteberry with Stifel,Nicolaus &Company,Inc. David Arteberry, Stifel, Nicolaus & Company, Inc, gave an overview of the results of the bids received. Mr. Schrage explained the necessity of the bond issuance and how the bond issuance was reduced. Ms. Pack explained the projects financed,fiscal impact and the action options. Mayor Hoppock asked if the interest rate and the bond amount need to be included in the actions. Ms. Pack stated no. Commissioner Franz mentioned that the resolutions were updated to include the interest rate and bond amounts. L20-0119 Moved by Commissioner Franz, seconded by Commissioner Ryan, to adopt Ordinance No. 20- 11029 authorizing the issuance and delivery of General Obligation Internal Improvement Bonds, Series 2020-A on second reading. A roll call vote was taken. Aye: (5) Davis, Franz, Hodges, Ryan, Hoppock. Nay: (0). Motion carried. 20-0120 Moved by Commissioner Franz, seconded by Commissioner Davis, to adopt Resolution No. 20- 7816 prescribing the form and details of and authorizing the delivery of General Obligation Internal Improvement Bonds,Series 2020-A. Aye: (5). Nay: (0). Motion carried. 20-0121 Moved by Commissioner Ryan, seconded by Commissioner Davis, to adopt Resolution No. 20- 7817 authorizing and directing the sale and delivery of General Obligation Temporary Notes, Series 2020-1. Aye: (5). Nay: (0). Motion carried. (7.5) Resolution No. 20-7826 temporarily closing the Municipal Court of the City of Salina, Kansas until further order of the Municipal Court Judge. Michael Schrage,City Manager, explained the request. Greg Bengtson, City Attorney,briefly explained the request. Brenda Stoss, Municipal Court Judge, additionally explained the request and action options. Commissioner Davis asked what beneficial information could she provide to citizens regarding the temporarily closing of the court. Judge Stoss stated some court cases were L rescheduled to specific dates and the difficulty to open court sessions with the limitation in the number of individuals in attendance at one time. She continued to provide information on the steps the court was taking. Page 8 Commissioner Franz asked if it was true that the court was closed entirely or was it a stop in cases and trials. Judge Stoss stated that there were cases that she had to take action on but regular hearings were not occurring. 20-0122 Moved by Commissioner Davis, seconded by Commissioner Ryan, to adopt Resolution No. 20- 7826 temporarily closing the Municipal Court of the City of Salina, Kansas until further order of the Municipal Court Judge. Aye: (5). Nay: (0). Motion carried. C (7.6) Authorize the purchase of four (4) Police Vehicles as approved in the 2020 Sub-CIP budget. Debbie Pack,Director of Finance &Administration,explained the request,fiscal impact and action options. Michael Schrage, City Manager, explained the request and the amount of miles on the current units. Commissioner Franz asked when the units would be available. Ms. Pack stated the 2020 model units ended on March 31, 2020 so the units would be the 2021 model and would be available in 120 to 180 days. 20-0123 Moved by Commissioner Ryan, seconded by Commissioner Davis, to approve the 2020 Vehicles and Equipment purchase of (4) police patrol vehicles from Long McArthur in the amount of $118,604.56 and approve the bid from Ka-Comm to outfit the vehicles with necessary add-on equipment in the amount of$48,741.60 for a total of$167,346.16 and authorize the City Manager to sign contracts with selected vendors. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS None. OTHER BUSINESS Mayor Hoppock asked if it would be prudent for the City Commission to waive their monthly pay. Commissioner Davis mentioned that some commissioners did put a portion of their pay in the employee breakfast fund. Michael Schrage, City Manager, stated staff could work through that. ADJOURNMENT 20-0124 Moved by Commissioner Ryan, seconded by Commissioner Davis, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 7:04 p.m. [SEAL] Michael L. Hoppoc ayor ATTEST: /U I.Shandi Wicks, CMC fixes Clerk Page 9