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07-09-1973 MinutesCity of Salina, Kansas Regular Meeting of the Board of Commissioners July 9, 1973 The Regular Meeting of the Board of Commissioners met in the Commissioners' Room, City -County Building, on Monday, July 9, 1973, at four o'clock p.m. The Mayor asked everyone to stand for the pledge of allegiance to the Flag and a moment of silent prayer. There were present: Mayor Jack Weisgerber, Chairman presiding Commissioner Robert C. Caldwell Commissioner Norma G. Cooper Commissioner Mike Losik, Jr. Commissioner W. M. Usher comprising a quorum of the Board, also: Ron Barta, Assistant City Attorney Norris D. Olson, City Manager D. L. Harrison, City Clerk Absent: L. 0. Bengtson, City Attorney The Mayor called for the approval of the minutes of the Regular Meeting of July 2, 1973. Commissioner Cooper requested that the minutes be amended concerning the Ordinance adopting the Uniform Plumbing Code. She felt the City Manager's statement, that the craftsmen had been notified about the adoption of the Code, should be added to clear up any misunderstanding. The minutes were approved as amended. STAFF AGENDA AN ORDINANCE was introduced for second reading entitled: "AN ORDINANCE ratifying and confirming a contract with Smoky Hill, Inc., for the construction of certain improvements in the City of Salina, Kansas, and providing for the issuance of temporary notes to pay the cost thereof, pending the issuance and sale of bonds." (Engineering Project 73-555 B for Miscellaneous concrete pavement) A motion was made by Commissioner Losik, seconded by Commissioner Usher to adopt the ordinance as read and the following vote was had: Ayes: Caldwell, Cooper, Losik, Usher, Weisgerber (5). Nays: (0). Motion carried. The Mayor approved the ordinance and it is number 8291. The ordinance was introduced for first reading July 2, 1973. A LETTER was received from the Metropolitan Planning Commission recommending the approval of the rezoning requested in Petition Number 3329, which was filed by the National Bank of America, subject to two restrictions. Dick Renfro vice-president of National Bank of America stated that their attorney was unable to attend the meeting. He requested that any action on the petition be deferred until the next meeting. A motion was made by Commissioner Caldwell, seconded by Commissioner Losik to defer action on Petition Number 3329 until next week: Ayes: (5). Nays: (0). Motion carried. CITY ENGINEER reported on a request from R. E. Haggart for the City to release and disclaim any interest in the barrow easement in Section 25, T -14-S, R -3W. This easement, was obtained for the express purpose of obtaining borrow dirt for the construction of the highway. This does not give the City control of the land surface nor does it restrict its use by the land owner. Engineering and Planning recommend that the City release and disclaim any interest in this borrow easement because the City has no further need for it. The release would not have an effect on the Transportation Plan or development of the area. The motion was made by Commissioner Losik, second by Commissioner Usher to accept the City Engineer's recommendation and release and disclaim any interest in the barrow easement. Ayes: (5). Nays: (0). Motion carried. CITY ENGINEER reported on Engineering Project 73--555 A for Miscellaneous asphalt pavement improvements. City Engineer stated that one street, Landmark Lane, should be deleted from the job at the request of the owner who originally petitioned for the improvement. A motion was made by Commissioner Cooper, seconded by Commissioner Losik to accept the City Engineer's recommendation and award the contract to Brown and Brown for Engineering project 73-555 A in the amount of $20,584.50, and to introduce the contract ordinance for first reading. Ayes: (5). Nays: (0). Motion carried. Ordinance Passed: Number: 0 CITY ENGINEER reported on Petition Number 3334, which was filed by Leon L. Ashton, for the vacation of the alley in Block 4, Southern Heights Addition. The City Engineer reports that the City has no utilities in this alley. Kansas Power and Light Company has a power line located on the alley serving three houses on the block. Southwestern Bell Telephone has a buried cable under this alley that extends on south to Republic Avenue. Mr. Ashton, the owner of this block, says he is going to remove the three houses. Under these conditions, the City and Kansas Power and Light Company would have no further need for this alley. Southwestern Bell Telephone has objected to complete vacation but would be served just as well if they had an easement rather than an open alley. Based on the above outlined needs of the City and the utility companies, Engineering and Planning recommend this alley be closed and converted into a utility easement. Mr. Leon Ashton stated that an easement would probably serve the purpose but he had the understanding that they had removed the lines when the building was remodeled once before. All we need is an easement for the side yard requirements for the vacant lot. A motion was made by Commissioner Usher, seconded by Commissioner Caldwell to accept the City Engineer's recommendation and to introduce the ordinance for first reading. Ayes: (5). Nays: (0). Motion carried. A LETTER was received from Planning Director requesting authorization to file application with the Metropolitan Board of Zoning Appeals and the Saline County Board of Zoning Adjustment for Special Class use to operate a Sanitary Landfill in Section 7, T -15-S, R -3-W, Saline County, Kansas. A motion was made by Commissioner Usher, seconded by Commissioner Losik to instruct the Planning Director to proceed with the applications to the Metropolitan Board of Zoning Appeals and the Saline County Board of Zoning Adjustment for Special Class use of 7-15-3. Ayes: (5). Nays: (0). Motion carried. COMMISSION AGENDA THE CITY COMMISSION CONSIDERED the Campus Company's offer to purchase property in the Northeast Industrial Park and the subsequent effect upon the local non-cash grants-in- aid. Mayor Weisgerber asked for any new developments before they made a motion on the Campus Company's offer. Mr. Worth from Urban Renewal stated: "Things are pretty much the way they were, except we are in the process of selecting another appraiser to give an assured appraisal on it and that will take some time." Commissioner Usher replied, "Well, I think I've already made up my mind that we should go ahead and accept this offer because I think we need to be moving on getting some of that property sold. Hopefully, this new business will generate some more interest in that area, so that we can go ahead and complete it. Either way, even if we don't sell it by the dead line, we are faced with worse problems than we have right now. I make a motion that we accept the offer to sell the approximate 20 acres to Salina Incorporated for $1,250.00 an acre. Naturally there will be restrictions on this agreement, when they get ready to sell to Campus that they can't turn around and resell and so forth, so something will protect the City there." Commissioner Caldwell said, "I'll second your motion." Mayor Weisgerber asked if there was any further discussion on the matter. Commissioner Losik said, "Yes, Jack, I'm not opposed to this, but I think that we need to have a little more publicity as to what is going to happen here. Now if we permit the sale of this 23 acres at $1,250.00 per acre, I don't think there is any doubt that we have, in fact, established a sale price for the remaining unsold land in that area. Now any variance that we might add of the remaining land would be pretty hard to justify. Then we must accept the fact that the City's share of the project cost is going to be increased as a result of this decision to sell. As Mr. Bernsten stated it could be an additional $150,000.00 or a total of $370,000.00; he also stated that the administration is encouraging the close-out of this type project by 1975 which is only two years from now. I think it's time that we clarify one thing because as people in this city have been told time and time again, that Urban Renewal is free, that it doesn't cost us anything. Well this is not true. It does cost us money, and the fact that whether it's an investment or not or whether it's a good investment or not we must understand that under the present concepts that we are required and obligated to pay one-fourth of the cost. Now even though we do it with improvements made with public funds it's still costing us money. Now whether we decide to sell at this price or not I think is only part of the problem, I think the other problem is where and how are we going to fund this $220,500.00 that we're already obligated for, and a very highly probable cost of $370,000.00. Now the obligation is already there, its been there since 1960, and we inherited this thing. I think the best thing to do now with it is to make sure everyone understands where we are, how we're going to handle this and then in the future that when things come up this way that people will be made to realize that this is going to cost us all some money. I'm not saying it's a good investment, I'm not saying it's a bad investment, and only time can determine that. But I think that's one area, and Bill you brought it up the other day, and I think before we vote _.._.. on this, put it on the agenda or come up with some way, how we're going to fund these monies, either through the services or the cash if need to be. Because it's going to be honest and we're going to have to have it, now I think your recommendation to sell is very good. I think sooner or later this could create additional business out there for us, but on the other hand we must recognize the fact that if we do this we'll be obligating ourselves further. This in it self is not particularly good nor is it bad, but on the other hand we better be prepared to figure out how we are going to handle this obligation." Commissioner Usher commented, "Well I did have the same reservations as you had Mike, so I visited with Norris on it and in turn he has some ideas that, at the present time, I'm convinced that we can go ahead and meet our obligation; hopefully Campus will come in so we'll know. I think we'll have a better picture as to what our obligations are and what we can do to meet the obligations. We know what the obligation is, $220,000.00, but we're not sure how we spend this $220,000.00 until we get an industry in there to find out how much they're going to need or what we can do in the way of streets, improvements, things of this kind,why we're still going to have that question." Commissioner Losik said, "Bill you're right, but I believe Mr. Bernsten was very intent in stating that if we did approve this he wanted a resolution from this Commission stating how we would meet this obligation, this is why I brought this up, because this is one of the stipulations he stressed and stressed quite firmly." Commissioner Usher commented, "Well, I think what he wanted was a plan. He was concerned about receiving a plan that stated a time table and how we intended to complete it and I think that can be prepared by the staff, but they can't do it until Campus comes in and at least gives us a plan as to what they're going to do. Then I think we can come up with a schedule and plan that will meet their requirements." Mr. Olson commented, "You may well be spending $330,000.00 to $370,000.00 to do equivalent $220,000.00 of work on 1969 rates. In visiting with Mr. Usher about this, my suggestion would be to have this money immediately available and it's budgeted. You'd be able to go in and immediately upon letting a contract, with no delay, by using the special gasoline tax, this is $100,000.00 that you normally reserve for sealing and overlay. Regardless of whether you have $500,000.00 or $100,000.00 project up there, you have -- immediate resource already budgeted for construction, reconstruction, alteration or repair of any streets in the City of Salina, Kansas. Then for your slurry and overlay program you can go with your Revenue Sharing, or you can go under K.S.A. 12-6a, and issue bonds. So you're in, in that area, I would say you're ready to go. And this would be our recommendation to you to look from this point of view. This would answer Campus, it would answer any questions. You won't get the $300,000.00 in one year, but they're going to have to sell alot of land out there before you'll need $300,000.00 worth of work in 12 months." Commissioner Losik said, "Oh, Norris, one thing more. This will take care of our street repairs but what will we use when it comes to sewers and water?" Mr. Olson replied, "We'd use bond money or revenues from Water and Sewerage Department. Now what we've done, if you'll recall, in the present years budget, we've put in $500,000.00 in revenue from a bond issue in water and sewerage utility and we've shown an expenditure for a half million dollars in that budget, if we should be ready to go before the end of December 1973 with a project. If we don't have anything by the end of 1973, we haven't lost a thing, because we've put in a million dollars for 1974 for capital improvements." Commissioner Losik said, "Based on what you're saying then, I think this would pretty much satisfy Mr. Bernsten if we_could put in that resolution that the City is prepared finacially to meet the commitments in this area and I think this will put them at ease so we can act favorably on it." Mayor Weisgerber stated, "It is too bad that the City has to increase its cost in connection with that area but either short term or long term there doesn't seem to be anyway we can avoid this." Commissioner Losik said, "I think you're right Jack, and Bill's explanation, and I think if there is loss this is the time to take it because it's not going to get less as we go on. So if we're going to do it, lets begin moving." Mayor Weisgerber asked for any more comments on the matter. Commissioner Cooper commented, "I'm pleased to see that the Commission has similar thinking on this particular subject. I have never liked the Northeast Industrial Park program from the beginning, I felt it was a poor program. I don't think time has done anything to improve it; however, I don't believe this Commission has any choice in this matter at this point. I think the property will have to be reappraised on what Mr. Bernsten and the Agency suggested, to bring the price within a competitive range with other industrial sites. Because we are commited, we know as it is priced at the present time there is very little chance of the property turning, and there is a possibility that if the selling price were reduced somebody might want to locate out there. So I don't see that we have any choice in the matter, whatsoever. It's possible that the decision that we make today to do this, in time might look just as poor as the decision to initially go with the program, only time is going to tell. But I feel that we should and are required to go with this reappraisal and commit the funds for the Northeast Industrial Park. I think the City can benefit from this experience in some regards in that there are several programs that are of value to our community but this doesn't mean that all the federal programs have this kind of a value. So I think you have to accept the ones that you feel would be an asset and reject the ones that you feel aren't. But I think we have to go with it." The Mayor called for a vote. Ayes: (5). Nays: (0). Motion carried. PUBLIC AGENDA A CEREAL MALT BEVERAGE License Application was filed by James B. Hendren, Manager of the Cozy Inn, 108 North 7th Street. (New Application) The City Clerk reported that the applicant has paid the proper fee and the application has been approved by the Health Officer, Zoning Officer, and the Police Department. A motion was made by Commissioner Losik, seconded by Commissioner Caldwell to approve the license application and to authorize the City Clerk to issue the license. Ayes: (5). Nays: (0). Motion carried. A CEREAL MALT BEVERAGE License Application was filed by Jarold W. Johnson, d/b/a Red Rooster, 671 South Broadway. (New Application) The City Clerk reported that the applicant has paid the proper fee and the application has been approved by the Health Officer, Zoning Officer, and the Police Department. A motion was made by Commissioner Usher, seconded by Commissioner Losik to approve the license application and to authorize the City Clerk to issue the license. Ayes: (5). Nays: (0). Motion carried. A motion was made by Commissioner Losik, seconded by Commissioner Usher that the regular meeting of the Board of Commissioners be adjourned. Ayes: (5). Nays: (0). Motion carried. D. L. Harrison, City Clerk 1