EL DORADO CITY COMMISSION MEETING January 21, 2014 The El Dorado City Commission met in regular session on January 21, 2014 at 7:00 pm in the Commission Room with the following present: Mayor Michael Fagg, Commissioner Chase Locke, Commissioner Bill Young, Commissioner Nick Badwey, Commissioner David Chapin, City Manager Herb Llewellyn, Assistant City Engineer Scott Rickard, and City Clerk Tabitha Sharp. Absent City Attorney Jim Murfin. VISITORS Julie Clements El Dorado Times El Dorado, KS Ron Garcia BG Products Wichita, KS Reggie Graham BG Products El Dorado, KS Chuck Beth SCKEDD Wichita, KS Ray Connell 2520 Chase El Dorado, KS Sue Givens 1525 Country Club El Dorado, KS Colin Rowell 1640 Cottonwood El Dorado, KS Linda Jolly Box 350 Towanda, KS James Cook 719 Fredrick Dr El Dorado, KS Kurt Bookout 2520 Kacy Ct El Dorado, KS Brad Meyer 2012 Chelsea Dr El Dorado, KS Curt Zieman 1220 S Topeka El Dorado, KS Marci Fugarino 220 E 1st Ave El Dorado, KS CALL TO ORDER Mayor Michael Fagg called the January 21, 2014, City Commission meeting to order. INVOCATION Pastor Mark Habluetzel, Hope Covenant Church, opened the meeting with an invocation. PLEDGE OF ALLEGIANCE The Lincoln third graders lead the pledge of allegiance. MOTION TO RECESS Commissioner Bill Young moved to recess to the Fire Apparatus Bay for the christening of Fire Engine #10. Mayor Michael Fagg called the meeting back to order and stated that Engine 10 is now in service. PERSONAL APPEARANCE Linda Jolly, Executive Director of El Dorado Inc., gave a brief overview of the activities of El Dorado Inc. over the last year. Mayor Michael Fagg asked if there was a list of targeted businesses that El Dorado Inc. would like to recruit. Ms. Jolly stated that they are in the handout provided. Mayor Fagg asked if there was a way to find out how many people work in El Dorado and live elsewhere. Ms. Jolly stated that one of the major projects for 2014 is a survey of employers in El Dorado in order to get that type of information. Ron Garcia, Vice President BG Products, thanked the City Commission for their support on building the new plant in El Dorado. 1 EL DORADO CITY COMMISSION MEETING January 21, 2014 Reggie Graham, HR Director of BG Products, shared information on the employment statistics at the El Dorado plant. He stated that 41 of their 193 employees live in Butler County. He also stated that there are 58 employees working in El Dorado and 29 employees who commute between the Wichita and El Dorado plants. Mr. Garcia stated that approximately sixty percent of their process has been moved to El Dorado. He anticipated completion of the move in the first half of 2014. BG PRODUCTS PUBLIC HEARING Mayor Michael Fagg opened the public hearing. There were no comments. Mayor Fagg closed the public hearing. Mayor Fagg asked who fills out the forms for the CDBG grant. Chuck Beth, South Central Kansas Economic Development, stated he was the administrator for this grant. He stated that part of the requirements for the grant was the creation of jobs. He also stated that the grant could not be closed out until the public hearing was held and the paperwork was signed to disburse the final funds. Mayor Fagg asked what an LMI job is. Mr. Beth stated that anyone who makes eighty percent or less than the County’s moderate income. BG Products was required to provide 51% of their jobs to LMI households. Mayor Fagg asked if this information was from this quarter. Mr. Beth stated that it was for the last quarter of 2013. Mayor Fagg asked about the 24 people listed. Mr. Beth stated that those individuals were new to BG Products. Mayor Fagg asked about the civil rights demographics. Mayor Fagg asked about the number of persons with disabilities. Mr. Beth stated that the number included the whole County. Mr. Beth stated that the demographics for the City were from the Census data and the other demographics page was specific to BG Products’ employees. Mr. Beth stated that it was only there in the case that the City paid an administrator. Commissioner Chase Locke moved to authorize the Mayor and City Clerk to sign the closing documents for the CDBG grant. Commissioner Nick Badwey seconded the motion. Mayor Fagg asked about the budget. Mr. Beth stated that the budget is negative because BG Products went above and beyond the required expenditure for the grant. Commissioner Bill Young thanked Mr. Beth and BG Products for this opportunity and stated that El Dorado was very lucky to have them. 2 EL DORADO CITY COMMISSION MEETING January 21, 2014 The other Commissioners echoed the sentiment. Motion carried 5 – 0. PUBLIC COMMENTS Mayor Michael Fagg opened the floor for public comments. There were no comments. CONSENT AGENDA Approval of Appropriation Ordinance 12-13 in the amount of $1,094,198.12. Mayor Michael Fagg asked what the prisoner care item was for. City Manager Herb Llewellyn stated that it was the amount paid to the County. Mayor Fagg asked about the clothing line item. City Clerk Tabitha Sharp stated that it was for bunker gear. Commissioner Bill Young moved that the Consent Agenda, as presented be approved. Commissioner Chase Locke seconded the motion. Motion carried 5 – 0. RESOLUTION OF SUPPORT – HOUSING DEVELOPMENT – COHEN-ESREY Scott Rickard, Assistant City Engineer, stated that Cohen-Esrey is applying to the State for tax credits in order to remodel the old middle school into affordable housing. He stated that the Commission passed a similar resolution last year, but the tax credits were not granted to the builders. They are asking for a resolution to reapply for those credits. Commissioner David Chapin asked what a work force tenant was. City Manager Herb Llewellyn stated that he was a member of the work force. Commissioner Chapin confirmed that it would be senior housing and working population. Mayor Michael Fagg asked if the City has any financial commitments to this project. City Manager Llewellyn stated that we did not. Mayor Fagg asked how this would affect other rental properties. City Manager Llewellyn stated that they are aware of the project. Last year the other owners told the Stated that the housing is not needed. City Staff think that better housing is a need in El Dorado. Linda Jolly, Economic Development Director, stated that a third party market study was done to assist with this project. She stated that the developers decided to include workforce individuals in order to not place a strain on existing senior citizen housing. She stated that the majority of the units will be subsidized. Mayor Fagg asked if there was any merit in putting this topic in the paper so that others could voice their opinion. 3 EL DORADO CITY COMMISSION MEETING January 21, 2014 Ms. Jolly stated that the vacancy rate in the existing subsidized units is less than ten percent. She stated that there are housing needs in this community for seniors and individuals with disabilities. City Manager Llewellyn stated that housing is an area that the Commission has requested that staff look at. He stated that this application has to be turned into the State by the end of the month. Ms. Jolly stated that other proposals are still being heard by the Housing Committee, but this one needed to be turned in because of the State deadline. City Manager Llewellyn stated that this could encourage other landlords to do repairs to their rentals in order to compete with the new housing. The end result is a more appealing housing stock in El Dorado. Commissioner Chapin stated he did not feel that the decision should be based on the idea that other rental properties might be hurt by this. He stated that if the Commission based their decision on that, then they would have to limit other businesses from coming to El Dorado. Commissioner Chase Locke stated that he didn’t feel that there are too many other options for the use of that building, and if a reliable company such as Cohen-Esrey wanted to develop it, we should encourage them. Commissioner Bill Young stated that the Kansas Housing Corporation will not approve the application if they feel it is not needed. He stated that this letter of support will help to keep the old building in tact and part of the community. He stated that it would also increase the neighborhood revitalization possibilities. Mayor Fagg stated he didn’t feel it was good to make a decision on this without further publicizing it to the community. Commissioner Young stated that if there was money involved in the process or they were asking for tax breaks, he would believe that it needed to be further vetted. This company is just asking for support to apply for tax credits at this time, something that is available to all developers. Mayor Fagg asked if the property would go back on the tax rolls. Mr. Rickard stated that it would, with a 95% rebate for five years. Commissioner Nick Badwey moved to approve Resolution 2727, a Resolution supporting the application to the Kansas Housing Resources Corporation for housing tax credits by Cohen-Esrey Affordable Partners, LLC. Commissioner David Chapin seconded the motion. Motion carried 5 – 0. AN ORDINANCE AMENDING TITLE 10 OF THE EL DORADO MUNICIPAL CODE PERTAINING TO SCHOOL ZONES AND SPEED ZONES Scott Rickard, Assistant City Engineer, stated that staff are asking the City Commission to consider an ordinance reducing the speed limits on North Main and an ordinance extending the school zone.