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08-10-2020 Minutes CITY OF SALINA,KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS August 10,2020 4:00 p.m. The City Commission convened at 3:45 p.m. for Citizens Forum at City-County Building, Room 107. 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 4:00 p.m. in Room 107, 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, and Karl Ryan. Also present: Michael Schrage, City Manager; Greg Bengtson, City Attorney; and Shandi Wicks, City Clerk. Absent: Commissioner Melissa Rose Hodges. AWARDS AND PROCLAMATIONS None. CITIZENS FORUM Janet Carlson, 406 S. Estates Drive, provided information on the no visitors ban at nursing homes and assisted living homes and asked that the ban be repealed. Dalton McDowell, 914 S. Ninth Street, thanked the commissioners and the staff of Tony's Pizza Events Center for cleaning up the Kenwood Cove. He asked how the announcement could be made today on the Schwan's meeting when the City Commission just voted on it last Thursday. Sherry Jackson, 513 E. Cloud, read an email she submitted to the City Commission regarding the decisions made on COVID-19 and asked that the City Commission review the Constitution of the United States each time they make a decision. She continued by asking the City Commission to respond to her email as she asked in her email to them. Carol Reed, 417 Venus, asked if it was true that some of the City employees were on furlough and only working 24 hours. Michael Schrage, City Manager, stated several employees were either working 24 to 32 hours a week and are drawing unemployment and pandemic pay to cover the rest of the salary. Ms. Reed provided her thoughts on the need for maintenance of the parks and City property. Mayor Hoppock encouraged Ms. Reed to stay for the financial update that occurred later in the meeting, for more information related to the budgetary decisions that the Commission took earlier in the year, related to Covid-19. Sherry Harp, 821 Hancock, provided her thoughts on the reduced hours of employees and the use of unemployment and pandemic pay to cover the remaining pay. Mayor Hoppock stated the City Commission was trying to be fiscally responsible and with payroll being one of the largest items, decisions had to be made. Page 1 Eileen Scala, Salina, spoke on behalf of the Sunflower Coalition and asked for a secondary public forum on Police Reform outside of the 8-5 work hours, following the September 21, 2020 scheduled study session. Santiago Vasquez, Salina, provided his thoughts on the Human Relations Commission and 2 asked for information on the future of the Human Relations Commission. He continued to provide his thoughts on fair housing in the City. ro Miranda Bachman, Salina, reminded the City Commission that black lives matter and 1-6 provided an update on the status of her proposed project. She also provided support for 0 the Human Relations Commission. U Mayor Hoppock stated the City Commission and staff returned from the Schwan s announcement and provided detailed information on the facility project. He also provided information regarding the State of Kansas' involvement in the project. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME (5.1) Public hearing on the proposed 2021 budget for the City of Salina. Mayor Hoppock opened the public hearing. Debbie Pack, Director of Finance & Administration, summarized the proposed budget, challenges, revenues, proposed mill levy, expenditures, changes to the pay plan and the comprehensive fee schedule. Michael Schrage, City Manager, provided additional information on the need to monitor and re-assessment of the budget prior to January,2021. Commissioner Franz stated he would have liked to have the financial update prior to the budget hearing on the agenda. He continued to provide his thoughts on the budget adoption. Mayor Hoppock stated one of the options was to postpone the item and asked if it could be postponed to next week. Ms. Pack stated it could be postponed but stated the budget was due to Saline County on August 25th. Commissioner Franz stated the budget could be submitted to Saline County late without penalty and maybe a phone call to the county would be possible. Mr. Schrage stated the City Commission could conduct the public hearing then close the public hearing and move the action item to later in the meeting. Denise Ward, 711 E. Magnolia, stated she was opposed to the mill levy increase and provided her thoughts on the proposed budget. Dalton McDowell,914 S. Ninth Street,provided his thoughts on the proposed budget. Sherry Jackson, 513 E. Cloud, asked if the valuation money went into the same pot as the property taxes and provided her concerns on the increase in the property valuation. Ms. Pack stated the valuation was set by the county appraiser and a portion was received by the City and the amount for the City of Salina was increased in total by 0.18% Carol Reed, 817 Venus, provided information on a private appraisal of her property versus the county appraisal amount. Mayor Hoppock stated the Saline County Appraiser handled appraisals and was the appropriate department to appeal a valuation. Thomas Carter, 309 N. 11th Street, provided his thoughts of the valuation of his property Page 2 and the appeal process. Mayor Hoppock stated the values were set by the Saline County L Appraiser and was out of the hands of the City Commission. Mr. Carter asked how it was out of the City Commission's hands if his property was in the city limits. 2 Eric Brown, President & CEO of the Salina Area Chamber of Commerce, provided Z information on an email he sent to the City Commission earlier today regarding the mill W levy increase and survey response from 7.1% of their membership. He stated the Salina co" Area Chamber of Commerce would not favor an increase in the mill levy. Mayor Hoppock asked if Mr. Brown thought the response from the chamber members was a poor response rate. Mr. Brown stated their typical response was between 15 & 20%. Mayor Hoppock asked if the survey as a one (1) question survey. Mr. Brown stated yes but it did include additional information including City presentations. There being no further comments the public hearing was closed. (5.1a) First reading Ordinance No. 20-11035 adopting and appropriating the 2021 annual budget. Debbie Pack,Director of Finance&Administration, explained the action options. Commissioner Davis provided his thoughts on the action options. Commissioner Ryan also provided his thoughts on the options as well. Commissioner Franz stated for clarification, the purpose to delay the reading of the ordinance was to allow the Commission to consider current financial updates. 20-0267 Moved by Commissioner Davis, seconded by Commissioner Ryan, to amend today's agenda to hear Item 5.1a after 7.6b. Aye: (4). Nay: (0). Motion carried. CONSENT AGENDA (6.1) Approve the special meeting minutes of August 3, 2020. (6.2) Approve the regular meeting minutes of August 3,2020. 20-0268 Moved by Commissioner Ryan, seconded by Commissioner Davis, to approve the consent agenda as presented. Aye: (4). Nay: (0). Motion carried. ADMINISTRATION (7.1) First reading Ordinance No. 20-11036 levying special assessments against certain lots and pieces of property to pay the cost of abatement of nuisances. Debbie Pack, Director of Finance & Administration, explained the assessments, fiscal impact and action options. Commissioner Franz stated absent the demolition cost, which left a little over $30,000 and asked how that compared to years in the past. Ms. Pack stated it was down. Lauren Driscoll, Director of Community & Development Services, stated the cost were down the year largely due to staff focusing on larger projects. Commissioner Franz stated if the City were to pay the costs, it would have to come from L the property taxes or sales tax. Ms. Pack stated yes. Page 3 20-0269 Moved by Commissioner Ryan, seconded by Commissioner Franz, to pass Ordinance No. 20-11036 levying special assessments against certain lots and pieces of property to pay the cost of abatement of nuisances on first reading. Aye: (4). Nay: (0). Motion carried. (7.2) First reading Ordinance No. 20-11037 levying special assessments against certain lots and pieces of property to pay the cost of the repair of sidewalks. TTI Debbie Pack, Director of Finance & Administration, explained the assessments, fiscal impact and action options. Commissioner Franz asked if the locations came to staff attention due to complaints. Ms. Pack stated that was correct. Michael Schrage, City Manager, stated there had been years where multiple pages of violations were reported which prompted a considerable amount of inspection and review,in the community. Jim Kowach, Director of Public Works, stated a project was bid for this type of work on a yearly basis. Mayor Hoppock asked if it would be just as economical to have the City of Salina hire it out versus handling it themselves. Lauren Driscoll, Director of Community & Development Services, stated staff tried to work with the property owners and mentioned there were a few options for the property owners. Commissioner Franz asked if property owners that have been notified of a bad sidewalk, if they defer to the City contractor to make repairs. Mr. Kowach stated the property owner had a few options: (1) to perform the work themselves; (2) hire a contractor to make the repairs; or (3) to have the City of Salina hired contractor perform the work and pay the City of Salina for the repairs. 20-0270 Moved by Commissioner Davis, seconded by Commissioner Franz, to pass Ordinance No. 20- 11037 levying special assessments against certain lots and pieces of property to pay the cost of the repair of sidewalks on first reading. Aye: (4). Nay: (0). Motion carried. (7.3) Resolution No. 20-7862 authorizing the Mayor to execute an amended and restated Sidewalk Café License Agreement with JKSK Corporation authorizing an outdoor sidewalk dining area in Strand Plaza abutting the Barolo Grille Restaurant at 112 South Santa Fe Avenue. Lauren Driscoll, Director of Community & Development Services, explained the project, amended and restated agreement,fiscal impact and action options. Mayor Hoppock asked if the required base was larger than 16 inches. Ms. Driscoll stated the license agreement was approving the removal of the tree and replacement with a sculpture. She continued to state it was the task of the City Forester to approve the landscape plan. Commissioner Franz asked if the planter would be replaced in the same shape and form. Ms. Driscoll stated the plan was to repair the planter as it currently stood but the applicant could respond to that question. Commissioner Franz provided his thoughts on the planter and the tree. Ms. Driscoll stated there would be other types of bushes and trees in the area. She continued to provide the language within the license agreement. Michael Schrage,City Manager, stated the specific sections within the license agreement. Page 4 Jeff Maes, ComPro Realty on behalf of JKSK Corporation, provided information on the current planter box, additional options and asked if the City Commission would like a planter in the place of the current planter box if it was damaged from grinding the stump or could a base be installed in place of the planter box. A conversation ensued between the City Commission, Ms. Driscoll, Mr. Schrage and Mr. Maes regarding the current planter box and the alternate options. Commissioner Davis asked if it was typical to replace a living plant with another in a planter box. Ms. Driscoll stated a replacement did not always happen especially within the downtown planters. Mr. Schrage provided additional information included in the license agreement. Commissioner Davis provided his thoughts on the planter box. Ms. Driscoll stated the City Forester did acknowledge that the tree was too large for the location but nothing was done due to the current construction in the plaza. Mr. Maes asked if the City Commission could take action on the matter and he could work with staff to change the license agreement. Ms. Driscoll stated she could work with legal counsel for appropriate language if the City Commission would like to take a short break. A conversation ensued between the City Commission and Mr. Schrage regarding the current planter and the alternate options. Mr. Schrage stated that staff would need some direction of the City Commission on what they would like to see. Mayor Hoppock stated the possibility of providing for an option if the planter was damaged beyond repair,a pedestal for a sculpture would be acceptable in its place. Mr.Schrage asked for a timeline on the project. Mr. Maes stated the floor was laid last week and the fence was on order to be installed. Mr. Schrage stated it would be best to make amendments to the agreement and bring the item back next week. Mr. Maes provided information on the green space included in the landscaping plan of the area. 20-0271 Moved by Commissioner Franz, seconded by Commissioner Davis, to postpone Resolution No. 20- 7862 to August 17, 2020 and direct staff to work out an exit strategy when removing the tree and bring the item back next week. Aye: (4). Nay: (0). Motion carried. (7.4) Resolution No. 20-7863 accepting a grant and approving a grant agreement with the Kansas Department of Commerce for a 2020 Kansas Community Development Block Grant - Corona Virus (CDBG-CV) and authorizing the Mayor to execute the grant agreement and associated implementation and administrative documents. Lauren Driscoll, Director of Community & Development Services, explained the grant, agreement,fiscal impact and action options. Mayor Hoppock asked for a breakdown on the individual grants. Ms. Driscoll stated $119,200 was allocated for economic development and $35,000 for the meal program. Carol Torkelson, with North Central Regional Planning Commission (NCRPC), stated a budget amendment could be done to move a portion of the economic development money to the meal program. Mayor Hoppock asked what the experience was with the meal program grant. Ms. Torkelson stated she did not have an experience in it yet. She continued to state Salina was Page 5 only the second city the NCRPC had contracted with for grant administration of the meal program grant. Commissioner Davis asked if there was a limit on the amount that could be allocated to a requestor. Ms. Torkelson stated the applicant would have to provide expenses and provide payment on the expenses and adjustments would need to be made at that point. She continued to state that once the applicant was awarded money, they could not be awarded money again. A conversation ensued between the City Commission, Ms. Driscoll and Ms. Torkelson regarding the grant allocations and an award process. Michael Schrage, City Manager, provided additional information on the eligibility of the funds and administering the programs. 20-0272 Moved by Commissioner Davis, seconded by Commissioner Ryan, to adopt Resolution No. 20- 7863 accepting a grant and approving a grant agreement with the Kansas Department of Commerce for a 2020 Kansas Community Development Block Grant - Corona Virus (CDBG-CV) and authorizing the Mayor to execute the grant agreement and associated implementation and administrative documents. Aye: (4). Nay: (0). Motion carried. The City Commission recessed at 6:06 p.m. for a 9 minute break. The meeting resumed at 6:15 p.m. 20-0273 Moved by Commissioner Franz, seconded by Commissioner Ryan, to move Item 7.6 above 7.5 on the agenda. Aye: (4). Nay: (0). Motion carried. (7.6) Salina Airport Authority Bond Issuance. (7.6a) Election of a temporary chair. Mayor Hoppock recused himself due to a conflict of interest and stated with the absence of Vice-Mayor Hodges,an election of a temporary chair was necessary. 20-0274 Moved by Commissioner Ryan, seconded by Commissioner Franz, to elect Trent Davis as temporary chair for this agenda item. Aye: (4). Nay: (0). Motion carried. (7.6b) Second reading Ordinance No. 20-11038 unconditionally approving the Issuance of General Obligations Bonds by the Salina Airport Authority for the Purpose of Financing the Cost of Certain Capital Improvements Located at the Salina Regional Airport and Airport Industrial Center. Temporary Chair Trent Davis noted that Ordinance No. 20-11038 was passed on first reading on August 6, 2020 and since that time the bond issuance amount was revised to $2,200,000. Tim Rogers, Salina Airport Authority Executive Director, provided information on the expansion of the Tony's Pizza plant in Salina. He also provided additional information on the acquisition of properties for the plant expansion. 20-0275 Moved by Commissioner Ryan, seconded by Commissioner Franz, to adopt Ordinance No. 20- 11038 unconditionally approving the Issuance of General Obligations Bonds by the Salina Airport Authority for the Purpose of Financing the Cost of Certain Capital Improvements Located at the Salina Regional Airport and Airport Industrial Center on second reading. A roll call vote was taken. Aye: (3) Franz,Ryan, Davis. Nay: (0). Motion carried. Page 6 Mayor Hoppock returned. (7.5) June 30,2020 Financial Update. Debbie Pack, Director of Finance &Administration, explained the update. Commissioner Franz noted a savings mentioned by OCCK and asked staff what OCCK meant by a credit. Ms. Pack stated she was not sure what was meant by that. Commissioner Franz continued to state that OCCK mentioned building a new building and use of City funds for a portion of the project. Michael Schrage, City Manager, stated the building was approved in the 2020 budget at a maximum of $233,000. He continued to state it would be a decision that the City Commission would need to make at some point. A conversation ensued between the City Commission, Ms. Pack and Mr. Schrage regarding the funding of OCCK and the building project. Ms. Pack explained the County Cares Grant allocations. Mr. Schrage stated the first round was for reimbursement and the second round included future expenses. Ms. Pack continued to explain the Lambertz refund of excess funds and the cost to general fund to bring staff back full time. Mr. Schrage provided information on the projections and the 2019 numbers. Commissioner Franz provided information on the information available in March and early April, the stimulus money,unemployment and PPP loans. He continued by mentioning the outlook by Moody's. Mr. Schrage provided additional information on an increase in sales tax in certain areas. He continued to provide information on the history of revenue projections developed my staff. Commissioner Davis asked if it was worth assuming sales tax would still be higher from October to December. Mr. Schrage stated none of the stimulus money was available in April. A conversation ensued between the City Commission, Ms. Pack and Mr. Schrage regarding the sales tax numbers. Mayor Hoppock stated his concern was on the reduction of property taxes. Mr. Schrage stated property tax amounts typically lag and it could be into 2021. Mayor Hoppock stated he thought the first half of property taxes for 2020 may be lagging. Mr. Schrage provided additional information on the reductions in contractual services and capital outlay. Mayor Hoppock asked about overtime and the function of how the police and fire departments work. Ms. Pack stated yes and mentioned a request submitted for a reduction in overtime for police department for the 2021 budget. A conversation ensued between the City Commission, Ms. Pack and Mr. Schrage regarding the staffing and overtime for the police and fire departments. Ms. Pack explained the other funds projections. Mr. Schrage provided additional information on the transactions of the recent Schwan s project and the effect on the sales tax economic development. Ms. Pack continued to explain the other funds projections. Mr. Schrage provided additional information regarding the health insurance fund. Ms. Pack continued to explain the central garage fund and the bond and interest fund and the approximate cost of employee early return for funds other than the general fund. Mr. Schrage provided additional information Page 7 regarding the staffing of departments and grants secured. Ms. Pack explained that the furloughs and work share program were done in a way to calculate a break even for each employee. Mr. Schrage discussed the potential incoming funding discussed, the fiscal conservatism in the projections. He stated that we would need to continue to monitor but all indications at this point were much more favorable than originally projected. Mr. Schrage replied that if things fall off between now and year end we would need to revisit this year's budget and the upcoming budget year. Commissioner Franz stated that initially we did not want to dip into reserves not knowing what the future would look like. He discussed the potential year-end fund balance taking into account other items and that we have an obligation to return service levels back to a more normal level. He stated his appreciation for volunteers. Mr. Schrage stated that the $600,000 is bringing full-time staff back,but does not include the return of part-time staff. Commissioner Franz stated that his decision may have been different knowing what he knows now for full-time and part-time staffing. Mr. Schrage stated that the remaining 75% of employees were impacted by staffing changes. Mayor Hoppock discussed that the City was falling behind and we need to get caught up. He also stated his concern for the mental status of employees being continually behind. Commissioner Franz discussed the inability to get water service turned on/off timely. He would like to see us move toward normalcy as quickly as we could and continue to monitor. Commissioner Davis asked if the work-share program may be started and stopped. Mr. Schrage stated there was a fixed amount of benefit per employee. Mayor Hoppock asked if the work share plan went through the end of the year. Ms. Pack stated the work share program was a 52 week program however the unemployment benefit was a 26 week benefit. She continued to state that you may only receive 26 payments within twelve months from the start date. Commissioner Davis asked if employees have been receiving three checks. Mr. Schrage replied two checks. He continued to state the Federal Pandemic was paid along with the unemployment, then employees received a check from their employer. Ms. Pack discussed the executive order signed by President Trump. Mayor Hoppock asked what direction was needed. Mr. Schrage responded by discussed staffing decisions that would need to be made and that we can prepare a resolution to return back to normal levels. Commissioner Ryan stated that we need to get back to normal service levels as quickly as we could. Mayor Hoppock asked staff to come back with a recommendation. Commissioner Davis asked if USD305 knew how many parents may be impacted by the schooling changes. Mr. Schrage replied that we don't have exact data, but out of roughly 490 employees there are approximately 85 employees with young school aged children. He continued to state if you factor in middle school, we are at about 115 employees impacted. He further stated staff did not have a plan in place as of yet, staff was still trying to size up what that future may hold and plan accordingly. He lastly stated that staff would have to be flexible and adapt. Page 8 Commissioner Franz asked if there was a way to calculate the economic impact from football. Mr. Schrage stated that the best indicator may be to look at our past performance possibly by looking at the impact of March and April with March Madness. (5.1a) First reading Ordinance No. 20-11035 adopting and appropriating the 2021 annual budget. Michael Schrage, City Manager, asked staff to quantify the rate of the mill levy rate increase. Debbie Pack, Director of Finance & Administration, stated it was a S443,000 increase to the general fund. Mayor Hoppock asked what that calculates for an average property. Ms. Pack stated for a $100,000 home it was a total of$353 a year and an increase in$11.00. Ms. Pack noted the services of the City of Salina covered with the mill levy increase and the comparison to other cities in Kansas. Commissioner Franz stated that our rates are not out of line compared to other communities. A conversation ensued between the City Commission, Ms. Pack and Mr. Schrage regarding the mill rate and property tax levels. Commissioner Franz stated that the increase was minor on a $100,000 home but he suggested other methods to raise funds rather than using property tax. He provided his thoughts on the mill levy increase. Mayor Hoppock asked what the projection was for the Health Fund. Ms. Pack stated it was $2 million and we were projected to be about$2.9 million. A conversation ensued between the City Commission, Mr. Schrage and Ms. Pack regarding fund balance reserves and the Health Fund. Mr. Schrage stated that staff had discussed the Health Fund balance and was working to develop better projections. A conversation ensued between the City Commission, Mr. Schrage and Ms. Pack regarding the Health Fund reserve balance and potential uses. Commissioner Ryan stated that he was comfortable with the mill levy increase. A conversation ensued between the Commission, Mr. Schrage and Ms. Pack regarding the mill levy. Commissioner Davis asked about part-time staffing and when that would be returned. Mr. Schrage stated the City would get back to full part-time staffing but the remaining part- time staff would not be hired back until 2021. Commissioner Franz stated that the budget for next year was set at a normal level and that if there were future losses related to COVID that was why the fund balance was there. Mr. Schrage responded by discussing how the budget was put together. Mayor Hoppock stated that we need to find a way to manage the Health Fund, right-size the organization. He continued by discussing that the increase in sales tax does not support increasing wages. Commissioner Franz stated that long-term we have to accept increases in the property tax because inflation in sales tax does not match our increases. Mr. Schrage responded by discussing the balance that needs to be struck by right-sizing the organization. Commissioner Franz stated that we could fund the salary increases by reducing the health Page 9 insurance expense to all funds. Mr. Schrage responded by other options that may be taken. Mayor Hoppock stated that there were so many unknowns this year and into next year and though our fund balance was better than thought,we need to be prepared for the future. 20-0176 Moved by Commissioner Ryan, seconded by Commissioner Davis, to pass Ordinance No. 20-11035 adopting and appropriating the 2021 annual budget on first reading. Aye: (3). Nay: (1) Franz. Motion carried. DEVELOPMENT BUSINESS 0 None. U OTHER BUSINESS Commissioner Davis mentioned that affirmative action was not taken on the financial update. Mayor Hoppock stated that staff would be bringing back a resolution next week for consideration. Michael Schrage,City Manager, stated the resolution of advisability would be brought back to the City Commission next week with Project Rise struck and Schwan's name entered into the document. Commissioner Franz provided information on the investment of the Schwan's project. Mr. Schrage provided additional information on the financial investment of the project. ADJOURNMENT L 20-0277 Moved by Commissioner Davis, seconded by Commissioner Franz, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (4). Nay: (0). Motion carried. The meeting adjourned at 7:54 p.m. [SEAL] Michael L. Hopp ,Mayor ATTEST: 2tACI,NOIC lily ULU Shandi Wicks, CMC, City Clerk Page 10