City Council

City of Olathe City Council 100 E. Santa Fe | Council Chamber Tuesday | November 20, 2018 | 7:00 PM 1. COUNCIL AUDIT COMMITTEE MEETING WITH EXTERNAL AUDITOR - 6:30 P.M. Councilmembers Bacon, Vogt and McCoy attended the audit committee meeting. 2. CALL TO ORDER Others in attendance were Assistant City Manager Sherman and City Attorney Shaver. Present: Copeland, Bacon, Randall, McCoy, and Vogt Absent: Brownlee, and Campbell 3. BEGIN TELEVISED SESSION – 7:00 P. M. 4. PLEDGE OF ALLEGIANCE 5. SPECIAL BUSINESS A. Proclamation designating November 24, 2018, as "Small Business Saturday." Mayor Copeland invited Casey Wihm, Vice President for Business Development with the Olathe Chamber of Commerce to recognize Olathe small business Structura, which manufactures bollards, lightpoles, luminaires and facades. Mr. Wihm stated Structura has designed and manufactured innovative products in Olathe and has won national and international awards as well as the coveted 25 under 25 award given out by Thinking Bigger. Mr.Wihm introduced Derek Seitz, CEO of Structura. Mayor Copeland read the proclamation and presented it to Mr. Seitz. B. Proclamation designating November as "National Native American Heritage Month." Mayor Copeland invited Cathy Lawrenz and Carolyn Romondo with the Olathe Chapter of the Daughters of the Amercian Revolution forward to accept the proclamation. Ms. Lawrenz made a few brief remarks on behalf of DAR. Mayor Copeland read the proclamation and presented it to Ms. Lawrenz and Ms. Romondo. 6. CONSENT AGENDA Page 1 of 12 City Council Meeting Minutes November 20, 2018 The items listed below are considered to be routine by the City Council and may be approved in one motion. These may include items that have been reviewed by the City Council in a prior planning session. There will be no separate discussion unless a Councilmember requests that an item be removed from the consent agenda and considered separately. Approval of the Consent Agenda Motion by Councilmember Randall, seconded by Councilmember Bacon, to approve the Consent Agenda with the exeption of item N. The motion carried by the following vote: Yes: Copeland, Bacon, Randall, McCoy, and Vogt Absent: Brownlee, and Campbell A. Consideration of Special Call City Council meeting minutes for October 29, 2018; Joint City Council/Planning Commission meeting minutes for November 1, 2018 and City Council meeting minutes for November 6, 2018. approved. B. Consideration of cereal malt beverage license applications for calendar year 2019. approved. C. Consideration of drinking establishment license applications for Fuzzy’s Taco Shop and Mod Pizza. approved. D. Consideration of a pawnbroker/precious metal dealer license application for We Buy Gold, LLC. approved. E. Consideration of Resolution No. 18-1103 appointing an Olathe representative to the Drug and Alcoholism Council of Johnson County. approved. F. Consideration of business expense statement for City Manager, Michael Wilkes to attend the National League of Cities 2018 City Summit in Los Angeles, CA, November 7 - 11, 2018. . approved. G. Consideration of Supplemental Agreement No. 1 with Covenant Consulting, LLC for information technology consultant services. approved. H. Consideration of Consent Calendar. approved. I. Consideration of Amendment No. 3 to the agreement with McCown Page 2 of 12 City Council Meeting Minutes November 20, 2018 Gordon Construction, LLC for the construction of the Indian Creek Library Project, PN 6-C-001-17. approved. J. Consideration of Supplemental Agreement No. 1 with Integrity Locating Services, LLC for the Underground Utility Locating Services Project, PN 8-C-001-18. approved. K. Consideration of Supplemental Agreement No. 1 with ATMOS Energy Corporation for the K-7 Highway, Santa Fe Street to Old 56 Highway Project, PN 3-C-024-16. approved. L. Consideration of a Real Estate Agreement for the purchase of property for the Brougham Drive Regional Detention Basin Project, PN 2-C-002-16. approved. M. Consideration of a Professional Services Agreement with Schlagel & Associates, P.A. for design of the 2019 Cedar Creek Street Improvements Project, PN 3-R-004-19. approved. N. Consideration of Engineer’s Estimate, acceptance of bids and award of contract to Pyramid Contractors, Inc. for construction of the Indian Creek, 139th and Brookwood Ct., Stormwater Improvements Project, PN 2-C-031-16. Councilmember Bacon asked what facilities and buildings have flooded in this area in the last 15 to 20 years. Rob Beilfuss, Public Workd Department Stormwater Manager stated there are multiple houses in the floodplain with a corner house at 139th Street having structure flooding. Mr. Beilfuss stated the bigger issue is public safety as a car was washed off of this street 3 years ago. Councilmember Bacon stated the low bid is $2.7 million, but the packet shows $5.3 million. Mr. Bacon asked what the additional $2.6 million represents. Mr. Beilfuss stated the $2.7 million is for the construction costs only, the additional $2.6 million represents other costs of the project such as land acquisition. Motion by Councilmember Randall, seconded by Councilmember Vogt, that agenda item N be approved. The motion carried by the following vote: Yes: Copeland, Randall, McCoy, and Vogt Page 3 of 12 City Council Meeting Minutes November 20, 2018 No: Bacon Absent: Brownlee, and Campbell O. Consideration of a Professional Services Agreement with Larkin Lamp Rynearson for design of the Old 56 Highway Watermain Improvements Project, PN 5-C-016-18. approved. P. Consideration of Engineer’s Estimate, acceptance of bids and award of contract to VF Anderson Builders, LLC for construction of the Lindenwood Road, 163rd to 167th, Benefit District Project, PN 3-B-078-17. approved. Q. Acceptance of bids and consideration of award of contract to JCI Industries, Inc. for submersible pumps for the Van Mar Wet Weather Pumps Project, PN 1-C-020-18. approved. R. Acceptance of bid and consideration of award of contract to PB Hoidale Company, Inc. for the rehabilitation of City fuel islands. approved. S. Consideration of award of contract to Mohawk for citywide carpet & flooring replacement. approved. T. Consideration of renewal of contract with Total Administrative Services Corporation (TASC) for the administration of the City’s VEBA account. approved. U. Consideration of renewal of the commercial property and casualty insurance program for 2019. approved. 7. NEW BUSINESS-PUBLIC WORKS A. Consideration of Ordinance No. 18-53, RZ18-0011, requesting approval for a rezoning from CP-2 and RP-3 to C-2 District and preliminary site development plan for Boulder Creek Commercial on 17.98± acres; located at the southwest corner or W. 167th Street and Mur-Len Road. Planning Commission recommends approval 6-0. Action needed: Consider a motion to concur and approve (4 positive votes) deny (5 positive votes required) or return to Planning Commission. Dan Fernandez, Planner II in the Public Works Department Planning Division completed a presentation. Motion by Bacon, seconded by Vogt, to approve Ordinance No. 18-53. Page 4 of 12 City Council Meeting Minutes November 20, 2018 The motion carried by the following vote: Yes: Copeland, Bacon, Randall, McCoy, and Vogt Absent: Brownlee, and Campbell B. Consideration of Ordinance No. 18-54, RZ18-0017, requesting approval for a rezoning from County IP-2 to M-2 District for Southview Properties on 6.11± acres; located in the vicinity of S. Keeler Terrace and S. Keeler Street. Planning Commission recommends approval 6-0. Action needed: Consider a motion to concur and approve (4 positive votes) deny (5 positive votes required) or return to Planning Commission. Dan Fernandez, Planner II in the Public Works Department Planning Division completed a presentation. Motion by Randall, seconded by Bacon, to approve Ordinance No. 18-54. The motion carried by the following vote: Yes: Copeland, Bacon, Randall, McCoy, and Vogt Absent: Brownlee, and Campbell C. Consideration of Ordinance No. 18-55 approving an engineer’s survey and authorizing the acquisition of land for the 151st and Ridgeview Geometric Improvements Project, PN 3-C-112-17. Action needed: Consider a motion to approve or deny. Motion by Randall, seconded by Bacon, to approve Ordinance No. 18-55. The motion carried by the following vote: Yes: Copeland, Bacon, Randall, McCoy, and Vogt Absent: Brownlee, and Campbell D. Consideration of Ordinance No. 18-56 authorizing payment by the City Treasurer of an eminent domain award and court appointed appraisers’ fees in the eminent domain case of The City of Olathe, Kansas vs. R.C. Rentals, LLC, et al., Case No. 18CV04590 for the Santa Fe Street and Ridgeview Road Geometric Improvements Project, PN 3-C-083-15.. Action needed: Consider a motion to approve or deny. Motion by Randall, seconded by Bacon, to approve Ordinance No. 18-56. The motion carried by the following vote: Yes: Copeland, Bacon, Randall, McCoy, and Vogt Absent: Brownlee, and Campbell E. Consideration of Resolution No. 18-1104 authorizing a survey and description of land or interest to be condemned for the Stag’s Ridge Page 5 of 12 City Council Meeting Minutes November 20, 2018 Project. . Action needed: Consider a motion to approve or deny. Motion by Randall, seconded by Bacon, to approve Resolution No. 18-1104. The motion carried by the following vote: Yes: Copeland, Bacon, Randall, McCoy, and Vogt Absent: Brownlee, and Campbell F. Consideration of Ordinance No. 18-57 approving an engineer’s survey and authorizing the acquisition of land for the Stag’s Ridge Project. . Action needed: Consider a motion to approve or deny. Motion by Randall, seconded by Bacon, to approve Ordinance No. 18-57. The motion carried by the following vote: Yes: Copeland, Bacon, Randall, McCoy, and Vogt Absent: Brownlee, and Campbell 8. NEW BUSINESS-ADMINISTRATION A. Consideration of Resolution No. 18-1073 establishing a “Comprehensive Listing of Fees and Charges.” Tabled from the November 6, 2018 City Council meeting. Action needed: Consider a motion to approve or deny. Councilmember Randall made a motion to approve Resolution No. 18-1073, seconded by Councilmember Vogt. Councilmember Bacon requested discussion before voting on this item and making a different motion that may, or may not get a second. Mr. Bacon stated if he recalled correctly that we increased the stormwater fees on commercial last year and this year we are going to raise the square footage that the fees apply to and then step it up again on the two year budget cycle from 700,000 to 900,000 square feet and holding steady on residential fees. Councilmember Bacon made a motion to hold the commercial rates for stormwater the same as this year for one more year. Councilmember Bacon also stated that there was an attachment D which has language that would allow 501(c)(3) an opportunity to not be subject to the increase. Mayor Copeland stated he did not read it that way and that the 501(c)(3) would be subject to the same increase as residents. Councilmember Bacon stated that was not part of the language that he received Page 6 of 12 City Council Meeting Minutes November 20, 2018 and it was left out. Councilmember Bacon asked that we take up the motion to hold the commercial rate and not increase it for 2019. Mayor Copeland asked Mr. Bacon if he wanted to phase it in. Councilmember Bacon stated not at this point and hold it where it is at 500,000 square feet for one more year at the current rate. Mayor Copeland asked Mr. Bacon what he wants to accomplish with that. Councilmember Bacon stated we increased it last year already and wanted to let it simmer for another year while we have held residential without any increase for the next few years. Mr. Bacon stated that his motion to hold the rates without an increase are not part of attachment D and is part of the fees. Sarah Doherty, Public Works Financial and Asset Manager addressed the Council indicating in 2018 that they did raise the residential rates two percent, which took it from 566 to 577. Ms. Doherty stated the way the formula works is the 577 is the baseline for each non-residential square footage parcel and that would increase by two percent as well. Ms. Doherty stated we did leave the cap at 500,000 square feet for 2018. Ms. Doherty stated the proposal in the packet for the 2018-2019 budget was to hold residential rates flat for the foreseeable future and to increase non-residential rates twelve percent in 2019 and five percent in 2020 with smaller rate increases later on. Also in the proposal was the recommendation to increase the cap from 500,000 to 700,000 in 2019 and then in 2020 from 700,000 square feet to 900,000 square feet. Mayor Copeland asked if the cap was increased last year. Ms. Doherty stated that it was not. Mayor Copeland asked what increased last year. Ms. Doherty stated the rates increased two percent across the board. Councilmember Bacon stated that he is asking to leave the cap at 500,000. Councilmember Vogt asked if we proceeded with Councilmember Bacon's suggestion what would that mean in terms of revenue and effect on the budget they had passed. Ms. Doherty stated if we left non-residential rates at the 2018 rates, which would be no increase or increase to cap, in 2019 that would be about a $400,000 fund impact and in 2020 that would be another $420,000 fund impact, which would mean Page 7 of 12 City Council Meeting Minutes November 20, 2018 that we would have to revert back to paying cash for projects through revenue bonding on some projects. This would also affect our bond rating and in 2020 we would have issues with our projects and have to push some back. Councilmember Vogt stated she recalls in our discussions about this that residential was subsidizing a little bit more than commercial, is that correct? Ms. Doherty stated that is correct. Councilmember Vogt asked what the average increase would be for our businesses. Ms. Doherty stated any business that is 500,000 square feet or less would see a four percent increase. Businesses or non-residential property owners that are larger than 500,000 square feet would range based on the cap increase. Ms. Doherty stated of the 2,000 non-residential businesses that we have the cap increase is going to affect 1,500. Councilmember McCoy asked how this would affect the 501(3)(c) group. Ms. Doherty stated that Council asked anyone with a current 501(3)(c) status be held to the 2018 rates. Councilmember McCoy stated if we could hold off on increasing this one year it would help with the 501(3)(c)'s budgeting process for the next year. Councilmember Randall stated that this is year one of a long term plan to achieve equity in the amount of water that leaves the land and goes into our stormwater system. It also allows us to do some bonding of things that are going to have to be done. If we change it then there are going to have to be increases to residential who are now subsidizing larger lots, would that be a fair assessment? Ms. Doherty said yes that is correct. Councilmember Randall said the long range plan is within six years based on the estimates you have as to rate increases and caps would go for then we would be caught up with an equitable system and from then on it would be based on what the increases are required for to make this effective. Ms. Doherty said absolutely. Councilmember Randall asked if the cities around us use the same type system. Ms. Doherty stated the cities around us have moved to an impervious surface. Councilmember Bacon stated some of our corporate citizens have invested Page 8 of 12 City Council Meeting Minutes November 20, 2018 millions of dollars in trying to mitigate the runoff from their developments. Mr. Bacon stated some kind of a formula that would incorporate the impervious surface and retention that has been built on that site could be taken into consideration, which is another reason why this should be put off and not implemented at this time. Mary Jaeger, Public Works Director commented for you to have no impact on stormwater you would have no stormwater revenue sites. Ms. Jaeger said the difference between water quantitiy and water quality would be easily quantifiable in an impervious square foot method of calculation. To be able to do that on a square foot calculation the way we are doing it now, which is how we have been doing it for years, would not be easy. Ms. Yeager stated with the regulations like the clean water act that we have to go through now and those that are acredited usually go above and beyond what is mandated. Ms. Yeager stated what we are mandating is taking care of the increase of water that we are causing. Hearing no other questions for staff, Mayor Copeland said that there is a motion on the floor to amend the original motion. Hearing no second Mayor Copeland stated there is a motion to approve and asked if there were any comments or questions. Councilmember Bacon stated the last sentence in the attachment D was unnecessary. Mr. Bacon said it is just instructions about getting the IRS determination letter and feels that could be eliminated. Motion by Randall, seconded by Vogt, to approve Resolution No. 18-1073. The motion carried by the following vote: Yes: Copeland, Randall, McCoy, and Vogt No: Bacon Absent: Brownlee, and Campbell B. Consideration of Ordinance No. 18-58 authorizing issuance of the City’s taxable industrial revenue bonds in an amount not to exceed $2,500,000 on behalf of Woodsonia Real Estate Inc. for the West Market Project. (Sales Tax Exemption Only). Action needed: Consider a motion to approve or deny. Motion by Randall, seconded by Bacon, to approve Ordinance No. 18-58. The motion carried by the following vote: Yes: Copeland, Bacon, Randall, McCoy, and Vogt Absent: Brownlee, and Campbell 9. NEW CITY COUNCIL BUSINESS Page 9 of 12 City Council Meeting Minutes November 20, 2018 Councilmember Randall thanked City staff for getting street lights along Santa Fe that had been out fixed within one day of requesting. Councilmember Vogt offered kudos to City staff as well for their fine work. Councilmember McCoy stated he attended a joint Parks and Recreation board meeting between Olathe and Lenexa last Thursday in Olathe. Mr. McCoy stated his take away was we are doing a great job with our parks and trails and collaboration between our city’s is important. Mayor Copeland reminded everyone that City offices will be closed this Thursday and Friday for Thanksgiving. Mr. Copeland stated trash will not be collected Thursday and delayed one day for Thursday and Friday collections. Mr. Copeland wished everyone a very happy Thanksgiving. 10. END OF TELEVISED SESSION 11. GENERAL ISSUES AND CONCERNS OF CITIZENS None 12. CONVENE FOR PLANNING SESSION Reports are prepared for informational purposes and will be accepted as presented. There will be no separate discussion unless a Councilmember requests that a report be removed and considered separately. A. REPORTS 1. Report regarding revisions to the City’s Industrial Revenue Bond and Tax Abatement (IRB) Policy (F-5) and Benefit District Policy (PI-5). Councilmember Bacon stated there are several changes being proposed and asked how staff arrived at those numbers. Emily Vincent, Resource Management Adminstrative Services Officer stated the City has an internal staff committee that reviews the IRB policy on an annual basis and we also collaborate with our bond counsel, Gilmore and Bell. Ms. Vincent stated we review IRB's that are active in our city, all of the proposed thresholds and that they meet those requirements. Ms. Vincent stated we also reviewed other jurisdictions and surrounding cities to make sure we are competitive with those. Ms. Vincent stated we take the changes to the EDC as well. Councilmember Bacon asked if there is a Chamber member that sits on the committee to review or was a presentation just given to the EDC? Ms. Vincent stated Olathe Chamber CEO, Tim McKee is on the committee that reviews the changes. 2. Report on Downtown Alley Enhancement Project PN 6-C-001-19. Page 10 of 12 City Council Meeting Minutes November 20, 2018 Councilmember Bacon stated the two million dollars for an alley is ridiculous. Mr. Bacon suggested we see this on an agenda right after we get the money to widen Mur-Len south of 151st. Mr. Bacon stated he is not in favor of seeing anything on this and a no go until we see some road widening projects first. Emily Carillo, Neighborhood Planning Coordinater in the Planning Division of the Public Works Department clarified the two million dollars is dedicated for all of the implementation from the envision plan and not specific to the alley. Ms. Carillo stated we hope to come back before you in December with a professional services agreement. Councilmember Randall asked when the presentation would be brought before Council. Ms. Carillo said they are looking at December 18. Mayor Copeland said he would like the presentation done then. B. DISCUSSION ITEMS 1. Presentation on Olathe Healthy Neighborhoods Initiative. (20 mins) Emily Carrillo, Neighborhood Planning Coordinater, Kim Hollingsworth, Senior Planner and Ginna Verhoff, Planning Intern with the City’s Planning Division of Public Works completed a presentation. 2. Discussion on the Lone Elm Road, Old 56 Hwy to 151st, Improvements Project, PN 3-C-084-17. (15 mins) Beth Wright, Deputy Public Works Director completed a presentation on the recommended project design. 3. Resource Management Department Activities and Initiatives. (15 mins) Dianna Wright, Resource Management Director completed the Resource Management Department activities and initiatives presentation. 13. EXECUTIVE SESSION A. Consideration of a motion to recess into an executive session for preliminary discussions related to acquisition of property pursuant to the exception provided in K.S.A.75-4319(b)(6) regarding the acquisition of property in north Olathe. Motion by Randall, seconded by Bacon, to recess into an executive session for preliminary discussions related to acquisition of property pursuant to the exception provided in K.S.A.75-4319(b)(6) regarding the acquisition of property in north Olathe. The open meeting recessed into executive session at 9:28 p.m. and will resume at 9:38 p.m. The motion carried by the following vote: Page 11 of 12 City Council Meeting Minutes November 20, 2018 Yes: Copeland, Bacon, Randall, McCoy, and Vogt Absent: Brownlee, and Campbell 14. RECONVENE FROM EXECUTIVE SESSION The open meeting reconvened at 9:38 p.m. Motion by Randall, seconded by Bacon to authorize the City Attorney to finalize and the Mayor to execute a real estate contract and closing documents for the acquisition of certain real property in north Olathe as directed by the Governing Body. Motion passed 4-0 with Mayor Copeland not present for the vote. 15. ADDITIONAL ITEMS Councilmembers wished everyone a happy Thanksgiving. 16. ADJOURNMENT The meeting adjourned at 9:42 p.m. David F. Bryant III, MMC Deputy City Clerk Page 12 of 12