08-24-2020 Minutes CITY OF SALINA,KANSAS
REGULAR MEETING OF THE BOARD OF COMMISSIONERS
August 24,2020
4:00 p.m.
The City Commission convened at 2:00 for the Lower Smoky Hill Water Supply Access District
Board Meeting, at 2:30 for Police Training Facility Tour (3770 Yost Drive) and at 3:45 p.m. for
Citizens Forum at City-County Building,Room 107.
Vice-Mayor Hodges 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: Vice-Mayor Melissa Rose Hodges (presiding),
Commissioners Trent W. Davis,M.D.,Rod Franz,and Karl Ryan.
Also present: Michael Schrage, City Manager; Greg Bengtson, City Attorney; and Cheryl Mermis,
Deputy City Clerk.
Absent: Mayor Mike Hoppock.
AWARDS AND PROCLAMATIONS
(3.1) The year of 2020 as the "19th Amendment Centennial Commemoration" in the city of
Salina. Ann Zimmerman, Vice President, Salina League of Women Voters [LWV] read the
proclamation and announced associated events.
Kaye Crawford, 845 Manchester, Salina wanted to publicly honor the memory of Marge
Minton who recently passed away, a strong and very active advocate for the LWV. Ms.
Crawford expressed her concern regarding a candidate for Kansas Legislature that recently
made disparaging remarks about the LWV and wanted to remind everyone that the LWV
has always been non-partisan,members are Democrats, Republicans and Independents.
(3.2) The month of September, 2020 as "National Recovery Month" in the city of Salina. Don
Greene,Senior Recovery Coach read the proclamation and announced associated events.
Vice-Mayor thanked Ms. Zimmerman,Ms. Crawford,and Mr. Greene for their hard work.
CITIZENS FORUM
Reverend Delores Williamston, 635 Georgetown Court, Salina identified herself as the
Salina/Hutchinson District Superintendent of the Great Plains United Methodist
Conference, and a retired Sergeant 1st Class of the Kansas Army National Guard. Reverend
Williamston stated she watched the City Commission meeting on August 17, 2020 and
voiced her disappointment and timing of the presentation of the gold award of valor that
was given to four Salina police officers. She continued to state some concerns and made
some recommendations. Vice-Mayor Hodges thanked Pastor Williamston and stated that
she hoped to meet with staff and follow-up with answers to questions she raised.
Dalton McDowell, Salina, made an inquiry on the settlement for the Schilling Air Base
decontamination and questioned when it was scheduled to be resolved. Michael Schrage,
City Manager stated that the City Commission and other public entities took action, the
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next step was for the Federal Government to finalize a consent decree that would be
submitted to the Court,because of a backlog there was no definitive timeline.
PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME
CONSENT AGENDA
(6.1) Approve the minutes of August 17, 2020.
20-0489 Moved by Commissioner Ryan, seconded by Commissioner Davis, to approve the consent agenda
as presented. Aye: (4). Nay: (0). Motion carried.
ADMINISTRATION
(7.1) Receive and review the 2019 Audit Report from Gordon CPA.
Debbie Pack, Director of Finance & Administration, introduced Shawn Gordon with
Gordon CPA. Mr. Gordon provided an overview of the auditor's report.
Commissioner Franz identified some conflicting language in the report. Mr. Gordon stated
that he would check into the identified issue, it may have been carry over language that
was inadvertently included in the report.
A conversation ensued between Commissioner Hodges, Mr. Gordon, Ms. Pack and Michael
Schrage,City Manager, on long-term outstanding debt.
Mr. Gordon provided information on where the data was depicted in the report.
Ms. Pack stated that the audit report has been submitted to the State as statutorily required
and it would post to the City's website this week.
20-0290 Moved by Commissioner Davis, seconded by Commissioner Ryan to Receive 2019 Audit Report.
Aye: (4). Nay: (0). Motion carried.
(7.2) Resolution 20-7869 authorizing the Mayor to Execute an Amended Agreement with
the "Salina Athletic Partners" including Salina Baseball Enterprises, Inc.; Unified
School District No. 305; and Kansas Wesleyan University, relating to Dean Evans
Stadium.
Michael Schrage, City Manager, provided an overview of the amended agreement and
stated that there was no financial change from the original agreement.
Commissioner Davis asked if during the automatic renewal period whether negotiations
would occur. Mr. Schrage stated there would be no need to renegotiate the agreement.
20-0291 Moved by Commissioner Ryan, seconded by Commissioner Davis, to adopt Resolution 20-7869
authorizing the Vice-Mayor to Execute an Amended Agreement with the "Salina Athletic
Partners" including Salina Baseball Enterprises, Inc.; Unified School District No. 305; and Kansas
Wesleyan University, relating to Dean Evans Stadium.. Aye: (4). Nay: (0). Motion carried.
(7.3) Resolution No. 20-7854 authorizing the Mayor to execute a Management Agreement
with SpectraXP (formerly Global Spectrum, LP) to end the current operating
agreement to manage the Tony's Pizza Events Center and replace it with an
operating agreement to manage the facility for an additional ten years through
February 28, 2030.
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Chris Cotten, Director of Parks & Recreation, explained extending the partnership with
SpectraXP, to continue with general management of the facility including event
programming, providing food and beverage services, entering into contracts for events,
and pursuing naming rights and sponsorship opportunities as well as reviewing fee
structure.
W Commissioner Franz asked if the expense portion of the revenue included the incentive fee
that was paid out for the following year. Mr. Cotten stated yes.
Commissioner Franz asked on the term of the Tony's sponsorship. Mr. Cotton stated 15
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years.
U
Commissioner Davis asked about service benefit expectation between a 10-year agreement
and a 5-year agreement noting that the data provided depicted cost recovery leveling off at
71% and whether it was realistic for the long term or if there was hope that number would
go higher. Mr. Cotton stated that SpectraXP was committed to make things better for the
community with their willingness to invest $500,000.00; and he stated that a 71% cost
recovery was a pretty good return considering competition with Wichita and Kansas City.
Michael Schrage, City Manager stated that ongoing conversations have occurred on the
target operating margin, there was no expectation of large gains but a competitive
disadvantage had been identified with the catering aspect. He continued to state
SpectraXP's interest was on table setting, utensils and equipment upgrades as well as
aesthetic improvement of the space, with the hope to generate more business. He further
stated that staff would continue to look for opportunities and continue to look at
performance, the target operating margin in the negotiated agreement had hit an
aggressive point and held them to a good level of accountability.
Keller Taylor and Susan Trafton,SpectraXP,were present and provided an overview of the
agreement and were present for questions.
Commissioner Franz asked what specific improvements were planned for the catering and
dining experience. Mr. Taylor stated they would be able to acquire place settings for a
thousand standard setups which include new dishes, flatware, stemware, new buffet
chafing dishes, and new linens.
Commissioner Hodges asked about the timeline for acquisition of the new material and
implementation on the new focus for convention business. Mr. Taylor stated they intend to
leverage their national relationships for equipment procurement and work with city staff
on crafting a request for proposal, for open bidding and believed that it would be
reasonable to expect to have the equipment in and ready to use for the holiday season
which would be a good time to showcase the new look.
Ms. Trafton stated because of Covid-19 related delays that shifted from 2020 to 2021 and
2022, there may be a little longer sales cycle than normal. Ms. Trafton stated that she was
confident that they would be able to execute the whole project by the end of next year.
Commissioner Hodges asked if there were any improvements earmarked for Heritage Hall.
Ms. Trafton stated that the space would be repainted, new carpet installed, new
audio/video equipment within the Hall itself and the downstairs restrooms would be
remodeled.
Mr. Schrage stated that the Great Plains Hall sponsorship included some provisions about
improvements and SpectraXP's investment, both together equated to a million dollar
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benefit to the bottom line.
Commissioner Franz noted there wasn't much change in recovery income with the deficit
and asked if there were any expectation for it to start showing. Mr. Trafton stated there
was a big loss on a previous event that had a pretty dramatic impact; further stating that
the investment was going to allow the focus on new business,being extremely strategic and
aggressive on booking and content in the main arena space.
A conversation ensued between Commissioner Hodges, Ms. Trafton and Mr. Taylor on the
remaining months of 2020; the business plan that was submitted by SpectraXP depicts a
loss of approximately 80 events [related to Covid-19] but new business may come in to the
market in the form of weekly meeting space, that there were not many canceled events but
rescheduled for 2021 and 2022. Ms. Trafton stated that their staff remains in constant
contact with agents and promoters, looking for the right opportunities but because of the
pause and fallout caused by the pandemic, the expectation is that content and bookings will
resume in 2021.
20-0292 Moved by Commissioner Davis, seconded by Commissioner Ryan, to adopt Resolution No. 20-
7854 authorizing the Mayor to execute a Management Agreement with SpectraXP (formerly Global
Spectrum, LP) to end the current operating agreement to manage the Tony's Pizza Events Center
and replace it with an operating agreement to manage the facility for an additional ten years
through February 28,2030. Aye: (4). Nay: (0). Motion carried.
(7.4) Award of contract for the Transmission Water main for the South Water Treatment
Plant,Project Number 20021.
Martha Tasker, Director of Utilities, explained the agreement, fiscal impact and action
options.
A conversation ensued between Commissioner Franz, Commissioner Hodges and Ms.
Tasker on the conflicting written narrative and the statement made during the meeting. It
was clarified that $794,000.00 has not been allocated to a project, and was available for the
overage.
Commissioner Hodges asked if there were other project that would be postponed. Ms.
Tasker stated there a few projects have been deferred but nothing critical to this year's
operations.
20-0293 Moved by Commissioner Ryan, seconded by Commissioner Davis, to Award of contract for the
Transmission Water main for the South Water Treatment Plant, Project Number 20021, to Greeley
Excavating, LLC of Greeley, Kansas, in the amount of $912,982 with $64,018 (7%) construction
contingency resulting in a total project authorization of $977,000. Aye: (4). Nay: (0). Motion
carried.
(7.5) Citizens Forum at City Commission Study Sessions.
Jacob Wood, Deputy City Manager,explained that the topic was added to the agenda based
on the Commissioners discussion that occurred during the other business component at the
August 17,2020 meeting.
A conversation ensued between the City Commission noting that there have been some
weeks where there was no study session that preceded the regular city commission
meeting but a citizen's forum component for that segment was still scheduled, many times
with no citizen participation. It was the consensus of the Commission that if there was a
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scheduled study session prior to a regular meeting that there would be an opportunity for
public participation and comments on the subject under discussion, at and during the
study session and to eliminate the stand-alone citizen forum that precedes the regular city
commission meeting.
Reverend Delores Williamston, 635 Georgetown Court, Salina, stated as long as it was
made clear to citizens that public comment would be allowed during the study session, she
didn't have any objection to the elimination of the stand-alone study session that currently
appears at the 3:45 p.m. timeslot for the weekly city commission meetings.
20-0494 Moved by Commissioner Franz, seconded by Commissioner Davis, to discontinue the Citizens
Forum that takes place at 3:45 as part of City Commission Study Sessions; a condition that we will
continue to allow citizen participation in the study session, on topics that are germane to that an
that we continue the practice of the citizens forum on any topic at the beginning of our regular
meeting as we have in the past. Aye: (4). Nay: (0). Motion carried.
(7.6) Resolution of Advisability Updates.
(7.6a) Resolution No. 20-7866 repealing and replacing Resolution No. 20-7864,
removing references to Project Gemini and replacing them with Great Plains
Manufacturing (DBA GPM No. 2., LLC) and determining the advisability of
the City of Salina, Kansas to issue its Industrial Revenue Bonds in one or
more series in the approximate principal amount of$20,000.000.
(7.6b) Resolution No. 20-7867 repealing and replacing Resolution No. 20-7865,
removing references to Project Rise and replacing them with SFC Global
Itat Supply Chain, Inc. (Schwan's Company) and determining the advisability of
the City of Salina, Kansas to issue its Industrial Revenue Bonds in one or
more series in the approximate principal amount of$600,000.000.
Michael Schrage, City Manager, stated that the two referenced resolutions were passed on
August 6, 2020, subsequently in the following week public announcements were made that
both were considered trade secrets and public announcements were made by both
companies and the projects were disclosed. The resolutions do not change anything
procedurally other than striking the project code names and replacing them with the actual
corporate names. Mr. Schrage further stated that there would be additional steps that
would come before the Commission, at a later date, as action items, which will need to be
finalized with resolutions and ordinances as well as publish public notices of hearing,
conducting a public hearing and return to the Commission for formal action. There is no
fiscal impact associated with either action item.
20-0295 Moved by Commissioner Ryan, seconded by Commissioner Davis, to adopt Resolution No. 20-
7866 repealing and replacing Resolution No. 20-7864, removing references to Project Gemini and
replacing them with Great Plains Manufacturing (DBA GPM No. 2., LLC) and determining the
advisability of the City of Salina, Kansas to issue its Industrial Revenue Bonds in one or more
series in the approximate principal amount of $20,000.000 and Resolution No. 20-7867 repealing
and replacing Resolution No. 20-7865,removing references to Project Rise and replacing them with
SFC Global Supply Chain, Inc. (Schwan's Company) and determining the advisability of the City
of Salina, Kansas to issue its Industrial Revenue Bonds in one or more series in the approximate
principal amount of$600,000.000. Aye: (4). Nay: (0). Motion carried.
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(7.7) Board Appointments Resolutions.
(7.7a) Resolution No. 20-7868 appointing members to the Accessibility Advisory
Board, Animal Control Advisory and Appeals Board, Arts and Humanities
Commission, Building Advisory Board, Business Improvement District #1
Advisory Board, Business Improvement District Design Review Board,
W Community Art and Design Advisory Committee, Convention and Tourism
Committee, Disciplinary Advisory Board, Heritage Commission, Human
Relations Commission, Library Board, and Planning Commission.
(7.7b) Resolution No. 20-7870 appointing members to the Board of Zoning
Appeals.
Commissioner Ryan asked if each item would be handled separately, Vice-Mayor Hodges
stated yes.
20-0296 Moved by Commissioner Davis, seconded by Commissioner Ryan, to adopt Resolution No. 20-
7868 appointing members to the Accessibility Advisory Board, Animal Control Advisory and
Appeals Board, Arts and Humanities Commission, Building Advisory Board, Business
Improvement District #1 Advisory Board, Business Improvement District Design Review Board,
Community Art and Design Advisory Committee, Convention and Tourism Committee,
Disciplinary Advisory Board, Heritage Commission, Human Relations Commission, Library
Board,and Planning Commission. Aye: (4). Nay: (0). Motion carried.
Commissioner Ryan recused himself due to a conflict of interest on adoption of Resolution
No. 20-7870.
20-0297 Moved by Commissioner Davis, seconded by Commissioner Franz, to adopt Resolution No. 20-
7870 appointing members to the Board of Zoning Appeals. Aye: (3). Nay: (0). Motion carried.
Commissioner Ryan returned.
DEVELOPMENT BUSINESS
None.
OTHER BUSINESS
Commissioner Davis stated that it was time to schedule a mid-year performance evaluation
for the Michael Schrage, City Manager. Vice-Mayor Hodges stated she would discuss with
Mayor Hoppock about the need to set and provide Mr. Schrage the expectations for a
performance review.
Commissioner Hodges stated her appreciation to the Salina Police Department for allowing
them to tour the new training facility that occurred earlier today.
ADJOURNMENT
20-0298 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 5:42 p.m.
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[SEAL] Michael L. Hop e k, Mayor
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Shandi Wicks,CMC, City Clerk
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