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06-01-2020 Minutes CITY OF SALINA,KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS June 1,2020 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, City-County Building. Roll call was taken followed by the Pledge of Allegiance and a moment of silence. U Those present and comprising a quorum: Mayor Michael L. Hoppock (presiding), Commissioners Trent W. Davis,M.D. (via phone),Rod Franz,Melissa Rose Hodges,and Karl Ryan. Also present: Michael Schrage, City Manager; Greg Bengtson, City Attorney; and Cheryl Mermis, Deputy City Clerk. Michael Schrage, City Manager, asked Scott Gardner, Director of Continuous Process Improvement to verify the following were working properly: the telephone conference; Salina Media Connection audio and live meeting; and City of Salina YouTube Live was working. He also noted that the Salina Media Connection was utilizing YouTube Live as well. 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 the protocol on how executive sessions would work and that there were five on the itinerary for today's meeting. AWARDS AND PROCLAMATIONS (3.1) The day of June 6, 2020 as "National Gun Violence Awareness Day" in the city of Salina. Mayor Hoppock read the proclamation. CITIZENS FORUM Joan Ratzlaff, Salina, thanked the Commissioners and City employees for their service and hard work. Ms. Ratzlaff stated she reviewed some city ordinances and it appeared many may have been repealed, suggested that the Commissioners may need to review. Mayor Hoppock thanked Ms. Ratzlaff for her call and suggested that she submit her questions and suggestions to the City Manager in written form and staff would respond accordingly. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME Mayor Hoppock made a short comment on the peaceful protests that were held to honor the memory of George Floyd over the past weekend, thanking all individuals for the courteous and respectful behavior involved with the Light up the Night in Caldwell Plaza as well as, all participants in the march. Michael Schrage, City Manager, stated that Chief Nelson would be submitting a press release explaining the City's approach as it related to officer training; recognizing and avoiding bias based policing, assuring the public that the protocols in place would ensure accountability; a commitment for ongoing review and improvement throughout the police department as well as the different segments of city government. Page 1 CONSENT AGENDA (6.1) Approve the minutes of May 18,2020. (6.2) Approve the minutes of May 26, 2020. (6.3) Approve the minutes of May 28,2020. 20-073 Moved by Commissioner Hodges, seconded by Commissioner Franz, to approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. ADMINISTRATION (7.1) First reading Ordinance No. 20-11032 terminating the Lambertz Addition/Kohl's Tax Increment Financing Project Redevelopment District. Debbie Pack, Director of Finance &Administration, explained the program, redevelopment district, termination,fiscal impact and action options. Commissioner Hodges questioned the date of 6/8/2020 referenced on the ordinance; Ms. Pack responded that that would be the date for the second reading. Commissioner Franz asked if the financial numbers presented in the financial projections related to the COVID-19 discussion; Ms. Pack stated the numbers were included in an earlier discussion and that it was known that the debt would pay off early. Commissioner Franz made a suggestion that the $100,000 in sales tax capitol be redirected to Economic Development Fund and allocated to the childcare project as opposed to putting the funds back into the capitol fund. Michael Schrage, City Manager offered to conduct a financial analysis of the excess funding and present options to the Commission, for consideration which would include the Economic Development Fund in addition to the COVID-19 response, as an action item for future discussions. 20-0174 Moved by Commissioner Hodges, seconded by Commissioner Ryan, to pass Ordinance No. 20- 11032 terminating the Lambertz Addition/Kohl's Tax Increment Financing Project Redevelopment District on first reading. Aye: (5). Nay: (0). Motion carried. (7.2) Resolution No. 20-7837 authorizing the Mayor to execute an Amendment to the Transferee Agreement with JKSK Corporation regarding the construction of the Barolo Grille. Michael Schrage, City Manager, explained the project, request, fiscal impact and action options. Commissioner Franz stated he understood that the Barolo Grille did not receive any Star Bond proceeds but the project must be completed before the future proceeds generated by the TIF and the CID district were released and asked for the current completion date. Commissioner Hodges commented on the previous amendments to the completion dates and would like to look at critical path schedules. Debbie Pack, Director of Finance & Administration, and Mr. Schrage by stating the original completion deadline of June 30, 2019 was revised to August 1, 2020 and that $2,000,000.00 was still accruing interest and the amended completion date of October 15, 2020 for all projects to be completed and release of escrow funds. Jim Maize, Salina, representing JKSK Corp/Barolo Grille provided an overview, Page 2 highlighting the role of the master developer and obligations to individual projects [Old Chicago, the alley,car museum and Barolo Grille], timeline adjustments and over all delays to the start of the project. Mayor Hoppock thanked Mr. Maize for calling in and responding to the Commissioners questions. 20-075 Moved by Commissioner Ryan, seconded by Commissioner Franz, to adopt Resolution No. 20- W 7837 authorizing the Mayor to execute an Amendment to the Transferee Agreement with JKSK Corporation regarding the construction of the Barolo Grille. Aye: (4). Nay: (1). Motion carried. (7.3) Reconsider the restriction on the use of plastic bags included in the authorization to reopen the Salina Drive Thru Recycling Center (SDRC). U Jim Kowach, Director of Public Works, explained the request to reconsider the restrictions and action options. A conversation ensued between the City Commission regarding the earlier restrictions implemented to restrict the use of plastic bags. Commissioner Hodges would like to get a sense, from staff, what new parameters they would like to see at the recycling center, to make it operate efficiently. Michael Schrage, City Manager, relayed that staff would continue to be as accommodating as possible, communicating any changes in approach or requirements,proactively. He continued to state should there be additional policy guidance or the need to review funding modification of the facility, staff would bring issues back before the Governing Body but as individual circumstances arise, staff would try to deal with those situations accordingly. Mr. Kowach stated that from previous discussions, he had a sense that there may be some Commissioners that would like to review protocols and it would be his intention to bring the matter back to the Commission towards the end of the year, as the end of the three-year lease of the current facility was approaching. Joan Ratzlaff, Salina, wanted confirmation that non-recyclable material such as bags were returned to the customer if that was the customer's wish. Mr. Kowach affirmed that was correct,if the customer doesn't want the plastic bag returned,it became trash. Ms. Ratzlaff suggested that the City partner with other entities that recycled plastic bags rather than disposing of plastic bags that were not returned to customers. Mayor Hoppock thanked Ms. Ratzlaff for her comments and suggestions. 20-0176 Moved by Commissioner Ryan, seconded by Commissioner Hodges, to authorize staff at the SDRC to accept materials in plastic bags when it reopens June 3,2020. Aye: (5). Nay: (0). Motion carried. (7.4) Review and consider baseball and softball improvements agreement. Michael Schrage,City Manager,explained the request, current agreement,fiscal impact and action options. Kenny Hancock, Salina, representing Salina Baseball Enterprises (SBE) and Bryon Tomlin, SBE Board Member, Salina, participated in the discussion, explaining that they were seeking permission to turf Dean Evans only with additional upgrades to only Dean Evans Stadium, at this time and that there was no expectation for the City to commit to the other major projects until the pre-COVID transient guest taxes can support the project. Mayor Hoppock, asked whether the drainage issues have been resolved;both Mr. Hancock and Michael Schrage, City Manager concur that those issues appear to have been fixed. Page 3 Mayor Hoppock asked Mr. Hancock about staffing turf maintenance. Mr. Hancock responded that there was a difference in opinion from different user groups but that between one and three hours a week for some upkeep but there would be no mowing, no watering, and no chalking required. He continued by stating there would be designated 7_ people to perform minor grooming after every event. Commissioner Hodges and Commission Franz both understood that an estimate of $50,000.00 a year would need to be set aside for replacement turf. Mr. Hancock said that a replacement fund would be part of the original agreement with all user groups contributing and sharing the cost. Mr. Tomlins stated that their group is only seeking naming rights for East Crawford Recreation for fundraising purposes and does not favor corporate naming. Commissioner Davis expressed the desire to extend the naming rights if a proposal would include implementation of an escrow fund for turf replacement. Commissioner Ryan made an inquiry on the cost of maintaining turf over the course of a season. Travis Scheele, Recreation Superintendent stated the seasonal cost was less with regards to no mowing, no watering, no chalking but some minimal maintenance would be necessary. Michael Schrage, City Manager added that there may not be a reduction in staff but redirecting staff to trash pick-up and cleaning bathrooms but efficiencies should be realized. Mr. Hancock indicated that their financial commitment included naming rights in the Dean Evans project only/East Crawford Recreation Area. He continued to state all other naming rights would still be reserved such as field naming, scoreboard naming, etc. Mr. Tomlins wanted the Commission to be aware of the current proposal for Dean Evans Stadium included the American Legion program that would have scheduling priority in the summer and extends to the Year 2050 for$1.8 million dollars. Commissioner Hodges suggested that staff may want to consider this issue as a stand-alone project when developing an agreement depending on the recovery of transient guest tax and/or results of a charter ordinance, decisions or elections. She continued to provide her thoughts on what should be included in the agreement. 20-0177 Moved by Commissioner Franz, seconded by Commissioner Ryan, to indicate concurrence with the proposed approach and authorize staff to coordinate with representatives of Salina Baseball Enterprises to prepare a revised agreement specific to SBE fully funding proposed improvements to Dean Evans Stadium. Aye: (5). Nay: (0). Motion carried. (7.5) Update on Fieldhouse Camp. Travis Scheele, Recreation Superintendent,provided an update on the Fieldhouse Camp. Commissioner Ryan inquired as to if the identified individuals, interested in attending a proposed camp,were made aware that there would be delayed start,to the end of June. Mr. Scheele affirmed that all individuals were aware of a delayed start, if a camp was scheduled. Mr. Scheele provided an overview of cost recovery for last year's camp at 107% for direct costs; last year's expenses for nine weeks of camp totaled $51,826. He continued to provide the estimated cost for five weeks of camp including expenses for COVID related precautions. Page 4 A conversation ensued between the City Commission and Mr. Scheele regarding the delayed start, the logistical challenges to protect camp participants and staff with regards to social distancing related to COVID-19 and the possible ramifications should an outbreak occur during a camp in a closed facility with a large group of participants in close proximity to each other. 20-078 Moved by Commissioner Davis, seconded by Commissioner Hodges, to authorize Parks and Recreation to proceed with Salina Fieldhouse Camp. Aye: (2). Nay: (3). Defeated. (7.6) April 2020 Financial Update. Debbie Pack, Director of Finance & Administration, provided financial comparisons that included last year's budget, this year's original budget and the COVID-19 revised budget. She also provided the revised projections for the 30, 60 and 90 day stay-at-home orders. Mayor Hoppock asked if the transfer from the enterprise funds was the interfund transfer. Ms. Pack stated that a hard number was budgeted and typically transferred in December, but transferring the funds now would give staff an opportunity to see where the numbers were and where adjustments might need to occur. Mayor Hoppock made an inquiry about the drop in license and permit fees for the month of April. Ms. Pack explained that fees were charged for a variety of things from street cuts or construction repairs, park and recreation numbers, animal services or shelter numbers, cemetery numbers were all included in that category; a possible reason for the drop, many services were not open to the public in April. Michael Schrage, City Manager stated he felt confident that the numbers currently projected, monthly to year-end were based on the cuts to programs. Ms. Pack also mentioned that refunds had to be made which could also be a factor in the drop for April. Commissioner Hodges asked whether sales tax distribution from May was included in the financial numbers. Ms. Pack stated the data was available and had been provided but further on in to the financial report. She continued by reminding Commissioners that the report was not indicative with the main numbers since the stay-at-home did not start until March 30th and there were two weeks of limited gatherings that may factor in the reduction in receipts. She further stated April's numbers won't be known till the end of June. Mr. Schrage mentioned that staff was preparing estimates in March and had the benefit to see what was coming in April more so than seeing further out in to the fiscal year. Mr. Schrage commended the department heads for their willingness to look at expenditures and stated we were seeing positive results to the reduced level of spending but unforeseen things may come up that impacts the anticipated savings on the expenditure side. Mayor Hoppock asked if the City received any interest or penalty fees associated with property tax. Ms. Pack stated no. Commissioner Franz asked whether municipal court was processing cases. Mr. Schrage responded that they were furloughed but have resumed operations with some court hearings but that there was a back-log. DEVELOPMENT BUSINESS None. Page 5 OTHER BUSINESS Commissioner Hodges made an announcement that she has received several public comments, most anonymously, that city staff have not been readily available, many N identify Friday as a day that there is little or no response from City staff. Commissioner Hodges made an inquiry of staff, asking whether city employees on the shared work program have been made whole with unemployment benefits since she has received comments and concerns that some individuals have not yet received those benefits. Michael Schrage stated that if he was made aware of specific issues he would look in to the U situation. Commissioner Davis stated that he had other commitments and would not participate in the executive session(s). (9.1) Request for executive session (trade secrets). 20-0179 Moved by Commissioner Hodges, seconded by Commissioner Ryan, to recess into executive session for 25 minutes to discuss the subject of a specific economic development prospect based upon the need to discuss data relating to financial affairs or trade secrets of corporations, partnerships, trusts, and individual proprietorships pursuant to K.S.A. 75-4319(b)(4). The open meeting will resume in this room at 6:30 p.m. Aye: (4). Nay: (0). Motion carried. Also present in executive session: Tim Rogers, Airport Authority Executive Director; Mitch Robinson, Salina Community Economic Development Organization, Inc., Michael Schrage, City Manager; and Greg Bengtson, Legal Counsel and Martha Tasker, Director of Utilities. No action was taken. The City Commission recessed into executive session at 6:05 p.m. and reconvened at 6:33 p.m. No action was taken. 20-0180 Moved by Commissioner Hodges, seconded by Commissioner Ryan, to recess into executive session for ninety minutes to discuss with legal counsel the following subjects: (1) with environmental counsel for the Salina Public Entities and the City's legal counsel the subject of confidential mediation with representatives of the U.S. Department of Justice and U.S. Army Corps of Engineers associated with pending litigation in U.S. District Court relating to the former Schilling Air Force Base environmental matter; and with legal counsel (2) the subject of the legal considerations relating to specific points of negotiation raised by Saline County upon review of the draft Expo Center lease; (3) the subject of the legal considerations presented by the request of the Saline County Fair Association, Inc. for continued use of Tri-Rivers Stadium in conducting future Tri-Rivers Fairs; and (4) the subject of a notice of claim filed by legal counsel for Melissa Fullen, Matthew Fullen and Beverly Fullen based upon the need for consultation with an attorney for the public body which would be deemed privileged in the attorney-client relationship pursuant to K.S.A 75-4319(b)(2). The open meeting will resume in this room at 8:04 p.m. Aye: (4). Nay: (0). Motion carried. Also present in executive session: Michael Schrage,City Manager,Greg Bengtson, Legal Counsel. Tim Rogers, Airport Authority Executive Director and Martha Tasker,Director of Utilities,Andy Davis,Attorney, Stinson LLP (via telephone). The City Commission recessed into executive session at 6:33 p.m. and reconvened at 8:04 p.m. No Page 6 action was taken. LADJOURNMENT 20-01$1 Moved by Commissioner Ryan, seconded by Commissioner Hodges, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (4). Nay: (0). Motion carried. The meeting W adjourned at 8:06 p.m. [SEAL] Michael L. Hoppoc/6 :/$'27 r U ATTEST: / / , )r Cheryl 'Fermis, eputy City Clerk L L Page 7