March 20, 2017 Commission Minutes

March 20, 2017 Commission Minutes

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GOODLAND CITY COMMISSION

Regular Meeting

 

March 20, 2017                                                                                                                    5:00 P.M.

Mayor Brian Linin called the meeting to order with Vice-Mayor Annette Fairbanks, Commissioner Gary Farris and Commissioner Gwen Mai responding to roll call. Commissioner John Garcia was reported absent.

 

Also present were Rich Simon – Director of Public Works, Dustin Bedore – Director of Electric Utilities, Suzanne McClure – Economic Development Director, Sami Philbrick – Museum Director, Mary Volk – City Clerk, and Andrew Finzen – City Manager.

 

Mayor Linin led Pledge of Allegiance

 

PUBLIC COMMENT

 

PRESENTATIONS

  1. WWI Walking Cemetery Tour – Megan Thomas and Sami informed the Commission of cemetery tour as part of the WWI exhibit at the museum. This year marks 100 years since WWI.  We met with cemetery board and they will be making a brief presentation for school tours on cemetery etiquette.  Schedule for tours is May 3rd and 4th in two-hour increments.

 

CONSENT AGENDA

  1. 03/06/17 Commission Meeting Minutes
  2. 03/14/17 Joint Meeting Minutes
  3. Appropriation Ordinances, 2017-06, 2017-06A, and 2017-P06

ON A MOTION by Vice-Mayor Fairbanks to approve Consent Agenda seconded by Commissioner Mai.  MOTION carried on a VOTE of 4-0.

 

ORDINANCES AND RESOLUTIONS

  1. Resolution 1498: IRB Transfer Documents – Andrew stated, resolution and documents associated with resolution pertain to 2006 Holiday Inn Express IRB.  City deeded land to Prairiesky Capital, LLC until pay-off of bonds.  Prairiesky Capital, LLC met obligation and requests property transfer take place.  ON A MOTION by Commissioner Mai to approve Resolution 1498: IRB Transfer Documents seconded by Commissioner Farris. MOTION carried on a VOTE of 4-0.
  2. Resolution 1499: Authorizing Sale of GO Bonds – Dustin Avey Managing Director, Piper Jaffray & Co. stated, resolution authorizes bond financing for Street Improvement Bond. The intent of issue is to keep payment at current rate.  The 2013 issue will be paid off in 2017.  Interest rates are good, not at market low but comparable to a year ago.  Projected bond amount is $2,435,000 to fund project in amount of $2,377,390 and issuance costs.  First payment on bond is planned for 2018.  Interest rate based on current rate is 2.79%, so good time to finance capital project.  Bond rating process will be next step for bond.  City received A rating on previous issue.  We intend bond sale to occur May 1st with results presented at Commission meeting that night.  Money will then be available to pay project expenses.  ON A MOTION by Commissioner Mai to approve Resolution 1499: Authorizing Sale of GO Bonds seconded by Vice-Mayor Fairbanks.  MOTION carried on a VOTE of 3-1, with Commissioner Farris casting the dissenting vote.

 

FORMAL ACTIONS

  1. Purchase Approval: Compliance Service Agreement – Andrew stated, agreement is with Gilmore Bell for disclosure requirements with annual reporting on bonds. This assures bond purchasers that the City will remain compliant with regulations.  Agreement is $6,000 for five years and costs are included in bond issuance costs.  After five years, we will look at agreement again.  Mayor Linin asked, did we approve this on past bond issues?  Dustin stated, 2014 regulations changed to ensure the issuer remains in compliance with reporting for purchasers.  Gilmore Bell ensures information is complete and files on timely basis for their clients.  I do not believe the City wants the liability.  ON A MOTION by Vice-Mayor Fairbanks to approve Compliance Service Agreement with Gilmore Bell seconded by Commissioner Mai.  MOTION carried on a VOTE of 4-0.
  2. Purchase Approval: Property and Liability Insurance – Andrew stated, we met with Eklund Insurance to discuss renewal for property and liability insurance.  At the current time, all property insurance is with EMC while Commercial Auto is through Conrade Insurance.  Eklund Insurance provided quotes from both EMC and Scottsdale Insurance.  Bids are as follows: EMC for $269,699, but does not include Commercial Auto.  2. Scottsdale Insurance for $254,182, which includes Commercial Auto and replacement cost on all property.  Commercial Auto coverage is approximately $42,000 so we would have to consider the additional cost if the Commission wants to continue utilizing EMC services.  Scottsdale Insurance is for all coverage, with property at replacement cost where EMC properties are a mix between actual cash value and replacement cost.  We recommend awarding insurance bid to Scottsdale Insurance effective April 1, 2017.  Eklund Insurance will remain the broker.  Mayor Linin asked, what happens to Commercial Auto policy with Conrade Insurance?  Mary stated, the City will cancel insurance policy effective April 1 and coverage will begin with Scottsdale Insurance.  Mayor Linin stated, this puts all policies under Eklund Insurance.  ON A MOTION by Commissioner Farris to approve the bid for Property and Liability Insurance from Scottsdale Insurance seconded by Commissioner Mai.  MOTION carried on a VOTE of 4-0.
  3. Bid Award: Pest Control – Andrew stated, pest control services are bid annually.  Bids are Tri-State Exterminating for $3,920 and Pest Away for $4,585.  I recommend the award based on cost to Tri-State Exterminating. ON A MOTION by Commissioner Mai to approve the bid from Tri-State Exterminating in the amount of $3,920 seconded by Commissioner Farris.  MOTION carried on a VOTE of 4-0.
  4. Incentive Approval: Cobblestone Hotels – Andrew stated, by the time incentive packages are presented to the Commission, details are final.  Cobblestone Hotel is looking for incentive packages for their investors.  They would like to build a fifty-four room hotel south of 24/7 Store.   On the Holiday Inn Express IRB, the Commission asked for payment in lieu of taxes.  When we discussed IRB with Developer Friday, they would like 100% exemption of taxes on a six and seven million dollar IRB issue.  We discussed traditional incentives offered such as the twelve will get you six and 70/30 split on costs for road infrastructure.  The cost of the road is approximately $60,000 so City cost will be approximately $42,000, with some work done in-house.  The Developer is asking for a rebate of sales tax, which is not our recommendation.  That definitely deviates from past incentives approved and we do not want to open up that option.  Suzanne has been working with the Developer for a number of months and we need to know what the Commission would like us to offer as incentives on behalf of City since Commission meets every two weeks.  If commission agrees, we would like to draft a letter of intent to Developer outlining incentives Commission will allow so that they have information for investors.  Vice-Mayor Fairbanks asked, are we offering same incentives offered Holiday Inn Express?  Andrew stated, same incentives as offered in past.  Suzanne stated, the difference I feel is they will push for the 100% exemption on taxes with IRB, which is typically what’s offered across the state.  Our objective is to get information to Developer for their investors.  Andrew stated, we would like to know Commission’s desire or if you want to give us the flexibility to negotiate.  We want the letter of intent to outline what Commission will agree to offer, as we do not want to offer something then have to negate an incentive offered in letter of intent.  Today the 100% exemption on IRB’s seem to be the typical incentive.  If we offer 100%, this is an abatement so tax is not collected.  City will benefit with the business and traffic at restaurants, fuel, etc.  Mayor Linin stated, this group has built in hotels in Wray and Holyoke; the price is lower with nice clean rooms, nothing fancy.  They appear to be a good business without additional frills with mid-range price.  Typically, they do not build in metropolitan areas or along interstates.  Commissioner Mai stated, I feel offering the best incentives we can to get them to come to our community is what we need to do.  Andrew stated, the amount of the IRB would help developers; we want them to come here and be successful.  Mayor Linin stated, so you are asking us to approve incentives we would like to offer so you can issue a letter of intent.  At this point, you are not dealing with the decision maker but the Developer who is going to push for any incentive they can get from City.  Andrew stated, a draft letter of intent is in your packet but we still need legal language in letter.  I would like authorization from Commission to outline incentives in letter of intent.  The IRB incentive in package is 90%, but I need clarity on rate Commission would like.  Do you want 100%, 90% or allow us to negotiate?  I would like what we negotiate to be within scope of what has been offered in past.  ON A MOTION by Vice-Mayor Fairbanks to approve sending letter of intent to Developer outlining incentive package as presented, giving Staff authorization to negotiate between 90% and 100% on IRB if we can use it as a tool to bring business to town seconded by Commissioner Mai.  Mayor Linin stated, I would like to include information on utility incentive if it can be a negotiation point since it is not a direct out of pocket expense.  Andrew stated, we would like to look at a twelve will get you eight instead of six or an eighteen will get you twelve since there are no operating costs, just revenue we are not collecting.  ON A MOTION by Vice-Mayor Fairbanks to amend previous motion to include authorization of utility incentive in the letter of intent seconded by Commissioner Mai.  Mayor Linin stated, in the past we talked about being consistent and discussed the 100% exemption on IRB’s for hotels.  All requests are different but we want to be as consistent as we can with negotiations.  MOTION carried on a VOTE of 4-0.
  5. Purchase Approval: Cooling Tower Retractable Roof – Andrew stated, the Commission discussed covering the cooling tower for significant cost savings at meeting September 20, 2016. At that time the cost was $250,000; however, the cost estimate is now $315,000 due to engineering costs with type of structure and equipment being covered.  We still have money to pay for cover and feel it is a smart idea; it would pay for itself within five years.  Dustin stated, Hitchcock did not agree with building drawings from first engineer so they hired a new firm.  They are looking at savings within five years and with Hitchcock, some of work would be staying local.  Commissioner Mai asked, are there other contractors able to submit a bid?   Adam Schart, EBH Engineer stated, if you bid out project you have to find an engineer capable of putting up this type of building.  I feel Hitchcock is the only one in area capable of specialty building.  Mayor Linin stated, when we discussed at September meeting, we felt pay back was beneficial.  I like the design build with engineering done up front.  Commissioner Mai asked, when would you be retracting roof?  Dustin stated, when we run because of heat.  We did a test with a tarp and saw significant savings so we feel with insulated building we will see costs recouped quickly.  ON A MOTION by Commissioner Mai to approve the Cooling Tower Retractable Roof building from Hitchcock in the amount of $315,000 seconded by Vice-Mayor Fairbanks.  MOTION carried on a VOTE of 4-0.

 

DISCUSSION ITEMS

  1. Amendments to NRP – Andrew stated, I want to continue discussion from joint hearing.  Everyone seemed to agree to remove cap but due to time constraints in joint meeting, we did not get to have discussion.  The Attorney General approves Interlocal Agreement not NRP, so we can change NRP anytime. The process is to have entities disclose changes they are requesting in writing.  Mayor Linin stated, during discussion there was interest in the room to remove or increase caps and continue discussion.  However, I do not want to do anything on our own.  I want to move in the direction to gain consensus of group, not just this year but in the future.  Vice-Mayor Fairbanks stated, I feel the discussion started as joint meeting, we need to continue as a group.  Mayor Linin asked, is consensus of Commission to continue discussion with all entities.  Genifer House from the School Board talked about continuing discussion sooner than later.  Commissioner Mai stated, I also would like to continue discussion with James Foster.  Mayor Linin stated, I liked his concept on a simple plan and the 5 year 90% rebate.  We want to have a plan that puts us ahead of other communities.  Andrew stated, I agree but my concern is timeframe to get meeting scheduled with all three entities.  Commissioner Mai asked, is the County Commission aware of process?  Andrew stated, they should be since it is in NRP.  I will be reaching out to schedule meetings to continue discussion.

 

CORRESPONDENCE

  1. City Managers Report- 1. YRC, formerly Roadway, lease signed in 1992 for twenty-five years is up for renewal.  YRC has made contact that they wish to renew lease.  Lease is to the benefit of YRC, as they only have to contact us, giving notice of renewal and be consistent with payment.  I have to acknowledge request was received and sign off on notification.  They have paid rent for all twenty-five years.  Mayor Linin stated, I would like to have City Attorney review file.  Is there anything we can do since last year they did not mow property when asked because it violated weed nuisance code.  Andrew stated, we have discussed this with the City Attorney and will have to address mowing violation through code.  2. Highway 24 garage sale is scheduled for first weekend in June.  Citizens picks up map that the City draws up for our area.  Mayor Linin asked, who is the organizing entity?  Suzanne stated, I believe the individual from Hoxie.  Mayor Linin asked, do you need to be located on highway 24?  Suzanne stated, no anyone in Goodland could participate; they just need to call to get their address on map for a fee.    Spring cleanup is scheduled for first week in May.  4. Crews are working on painting the pool to open in May.  5.  When the City and County Commission’s last met in joint meeting the request was to meet quarterly, which will be early May, but if get NRP discussion going not sure we need additional meeting.  We will let you know.

 

MAYOR AND COMMISSION REPORTS

  1. Commissioner Reports

Commissioner Mai – 1.  With pool repairs, people have discussed the grass area south of pool that is a swamp area.  Rich stated, Barb Bedore has it on the list and we will try to get concrete done.  Right now we are concentrating on sandblasting pool to get it painted.  If it does not get done this year, it will next year.  Mayor Linin asked, what is the cost to paint the pool?   Rich stated, about $30,000 to $35,000 with labor done by employees.  It was done about five years ago.  If have time will look at concrete.

Commissioner Farris – 1.  No Report

Vice-Mayor Fairbanks – 1.  No Report

Commissioner Garcia – 1.  Absent, No Report

  1. Mayors Report – No Report

 

EXECUTIVE SESSIONS

 

ADJOURNMENT WAS HAD ON A MOTION Vice-Mayor Fairbanks seconded by Commissioner Mai.  Motion carried by unanimous VOTE, meeting Adjourned at 6:15 p.m.

 

 

 

 

_____________________________

ATTEST:                                                                                Brian Linin, Mayor

 

 

 

_______________________

Mary P. Volk, City Clerk