City Council

City of Olathe City Council 100 E. Santa Fe | Council Chamber Tuesday | October 19, 2021 | 6:45 PM City Council members had dinner with members of the Olathe Teen Council in the City of Governors conference room at 5:30 PM. 1. CALL TO ORDER Present: Mickelson, McCoy, Bacon, Vogt, and Gilmore Absent: Brownlee, and Campbell 2. EXECUTIVE SESSION Consideration of motion to recess into an executive session to discuss the following items: A. Preliminary discussions related to acquisition of property pursuant to the exception provided in K.S.A.75-4319(b)(6) regarding the 135th Street and Pflumm Road Geometric Improvements Project, PN 3-C-110-20. Motion by Vogt, seconded by McCoy, to recess into an executive session for preliminary discussion related to acquisition of property pursuant to the exception provided in K.S.A. 75-4319(b)(6) regarding 135th Street and Pflumm Road Geometrics Improvement Project, PN 3-C-110-20 for 15 minutes. The motion carried with the following vote: Yes: Mickelson, McCoy, Bacon, Vogt, and Gilmore Absent: Brownlee, and Campbell Councilmember Brownlee joined the Executive Session at 6:48 PM. 3. RECONVENE FROM EXECUTIVE SESSION Motion by Vogt, seconded by McCoy, to authorize staff to acquire necessary easements to construct the 135th Street and Pflumm Road Geometric Improvements Project, PN 3-C-110-20, as directed by the Governing Body. The motion carried with the following vote: Yes: Brownlee, Mickelson, McCoy, Bacon, Vogt, and Gilmore Absent: Campbell 4. BEGIN TELEVISED SESSION – 7:00 P. M. 5. PLEDGE OF ALLEGIANCE 6. SPECIAL BUSINESS Page 1 of 10 City Council Meeting Minutes October 19, 2021 A. Recognition of the 2021-2022 Olathe Teen Councilmembers. Liz Ruback, Assistant to the Mayor, shared about the Teen Council and their projects this year. She introduced each one and Mayor Bacon presented them with a certificate. 7. CONSENT AGENDA Motion by Vogt, seconded by McCoy, to approve the consent agenda. The motion carried with the following vote: Yes: Brownlee, Mickelson, McCoy, Bacon, Vogt, and Gilmore Absent: Campbell A. Consideration of approval of the City Council meeting minutes of October 5, 2021. Approved B. Consideration of renewal drinking establishment applications for Mission Recreation Inc., d/b/a Mission Bowl and Kellan Restaurant Management Corp, d/b/a 54th Street Grill & Bar. Approved C. Consideration of a cereal malt beverage application for calendar year 2021. Approved D. Consideration of cereal malt beverage applications for calendar year 2022. Approved E. Consideration of business expense statement for City Manager Michael Wilkes for expenses incurred to attend the ICMA conference in Portland Oregon, October 1 to October 6. Approved F. Consideration of Consent Calendar. Approved G. Consideration of Engineer’s Estimate, acceptance of bids and award of contract to Crossland Heavy Contractors for the Cedar Lake Lift Station Improvements Project, PN 1-L-001-21. Approved H. Consideration of Supplemental Agreement No. 1 with Burns and McDonnell Engineering Company, Inc. for construction management services for the Cedar Lake Lift Station Improvements Project, PN 1-L-001-21. Approved Page 2 of 10 City Council Meeting Minutes October 19, 2021 I. Consideration of Inter-Local Agreements with the City of Overland Park for constructing Ultra-Thin Bonded Asphalt Surface on 143rd Street and 151st Street, from Quivira to Switzer, as part of the 2022 Street Preservation Program, PN 3-P-000-22. Approved J. Consideration of Agreement No. 321-21 with the Kansas Department of Transportation (KDOT) for funding the construction of the 135th and Pflumm Geometric Improvements Project, PN 3-C-110-20. Approved K. Consideration of a Professional Services Agreement with Walter P. Moore and Associates, Inc. for design of the Clare Road, 106th Terrace to College Boulevard, Improvements Project, PN 3-B-065-21. Approved L. Consideration of Agreement No. 322-21 with the Kansas Department of Transportation (KDOT) for funding the construction of the Pflumm Road, 143rd to 151st, Improvements Project, PN 3-C-114-20. Approved M. Consideration of a Utility Agreement with Evergy Metro, Inc., for the Pflumm Road, 143rd to 151st, Improvements Project, PN 3-C-114-20. Approved N. Consideration of renewal of contract with Quicksilver Ready-mix for concrete services for the Infrastructure. Approved O. Consideration of renewal of contract with Geiger Ready Mix for ready mix concrete for Infrastructure and Quality of Life Departments. Approved 8. NEW CITY COUNCIL BUSINESS Councilmember McCoy provided information about Halloween activities and events being hosted by the City's Parks and Recreation department. Mayor Bacon also mentioned the Trick or Treat Trail, another event hosted by the City. 9. END OF TELEVISED SESSION 10. GENERAL ISSUES AND CONCERNS OF CITIZENS Page 3 of 10 City Council Meeting Minutes October 19, 2021 Persons wanting to speak regarding a general concern must sign up no later than thirty minutes prior to the beginning of the City Council meeting. A person may sign up by notifying the City Clerk by calling 913-971-8521, emailing CCO@Olatheks.org or in person at City Hall. The Council has allocated up to 3 minutes per speaker, and up to 30 minutes total for this portion of the meeting. Anh Rongish, 25110 W 114th Court, voiced concerns regarding the creation of benefit districts. Denise Holm, 11235 S. Violet Street, voiced concerns regarding the creation of benefit districts. 11. 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 on a request by BlueScope Properties Group LLC and assigns for a master resolution tax abatement and issuance of industrial revenue bonds and tax phase-in for the development and construction of the first phase project, a 236,160 square foot spec industrial warehouse facility located near the northeast corner of 159th Street and Lone Elm Road, south of I-35. Report accepted. 2. Quarterly Procurement Report. Report accepted. B. DISCUSSION ITEMS 1. Presentation on the City's Industrial Revenue Bond (IRB) economic incentive program and Policy F-5 Property Tax Abatement Policy. (30 min) Financial Strategy Manager, John Page, gave a short presentation. Councilmember Brownlee asked how much sales tax the City would lose with an IRB. Mr. Page said he was unsure, but would find that information and provide it to the Council. Ms. Brownlee also asked questions about a minimum wage requirement and Mr. Page again said he would provide additional information to the Council. Page 4 of 10 City Council Meeting Minutes October 19, 2021 Councilmember Mickelson said he thought there should be a minimum wage requirement, the application fee should be increased, the cost benefit should be higher, the base should be dropped to 25% and more benefit should be given to targeted industries. Mayor Bacon asked for clarification on dropping the base from 50% to 25% and what the investment would be. Mr. Mickelson said he thought the investment should remain the same. Councilmember Vogt asked what the base abatement is in neighboring communities. She also asked for copies of the presentation to be sent to the Council. Mr. Page said he would do that and also said staff could provide salary data for current IRB's. Ms. Vogt also said wages were important, but she believed capitol investment was very important as well and she would be looking at that closely. She also asked that the Chamber be involved in decisions to change the policy. She then asked about the current vacancy rate and Mr. Page said staff would get that information for her. Councilmember Gilmore asked about the approval process should one company sell to another. Mr. Page said the Council would have to approve that sale. Mayor Bacon asked if staff would be bringing additional information back to the Council for review. City Manager, Michael Wilkes, said staff would be working with the Chamber and could bring suggested changes back to the Council. Ms. Vogt said she would like to have another opportunity to review this policy before voting. Councilmember McCoy said he believed the City needed to stay competitive and didn't want to see businesses go to other communities. He thanked staff for all the information they had provided. Page 5 of 10 City Council Meeting Minutes October 19, 2021 Councilmember Gilmore said he thought it would be a good idea to review the policy on a yearly basis. Councilmember Brownlee asked if there was a claw-back policy in the event a business did not achieve what they promised. Economy Director, Dianna Wright, said there is a policy, but said they had never taken away a benefit. Mayor Bacon asked about the sales tax numbers and Ms. Wright pointed out that sales tax is always included in the cost/benefit analysis. 2. Presentation on proposed changes to Policy PI-5 Financing of Public Improvements - Benefit Districts. (20 min) Financial Strategy Manager, John Page, gave a short presentation. Councilmember Vogt asked questions about the number of benefit districts and asked if that number included both residential and commercial. Mr. Page said it included both. Ms. Vogt said she would like to have information on just the residential. She asked about eliminating benefit districts for residential areas and Mayor Bacon asked if she meant for a developer too. City Manager, Michael Wilkes said there were other optional means of financing but the cost would then be included in the lot price. Ms. Vogt then asked about benefit districts in neighboring cities and Economy Director, Dianna Wright, said most surrounding communities create benefit districts. Councilmember Mickelson said he believed the main issue is poor communication and would like to see the policy to reflect more specifics regarding communication to the potential residents. He suggested the possibility of the developer having to submit a communication plan with their application. Councilmember Gilmore questioned language in the policy that referred to extraordinary circumstance and Gina Riekhof with Gilmore and Bell said this provision has been very rarely Page 6 of 10 City Council Meeting Minutes October 19, 2021 used but it is a tool the State statute makes available. Mr. Gilmore asked how often the policy is reviewed and Mr. Page said every two years. Councilmember Brownlee said she agreed there needed to be additional communication. Ms. Riekhof said there are disclosures in contracts and if not, it becomes a civil matter. Councilmember Gilmore asked for clarification on the communication suggestions and Mr. Shaver said it was the time between a project being created and later assessed. Infrastructure Deputy Director, Beth Wright, said they had placed signs in more strategic places, hoping to make them more visible. Councilmember Gilmore said he believed it was prudent to communicate but did not want to make it complicated. Mayor Bacon asked how it was to be determined if it was a good communication plan. Mr. Shaver said there was language in the policy that would allow for an audit. Mr. Mickelson said he didn't want the Council to decide if it was good or not, but to make sure a plan was in place. Councilmember McCoy said the responsibility should fall on the seller. 3. Presentation of proposed changes to F-7 Tax Increment Financing Policy (TIF) and F-9 Community Improvement District Policy (CID). (10 min) Financial Strategy Manager, John Page, gave a short presentation. Councilmember Vogt asked for information regarding exact projects to be sent to the Council. Mr. Page said they would provide that information to them. Councilmember Brownlee asked about the language regarding Page 7 of 10 City Council Meeting Minutes October 19, 2021 the UDO. Chief Planning and Development Officer, Aimee Nassiff said the slight changes in language were to provide more transparency and the applicants were always expected to meet or exceed UDO standards. Councilmember Mickelson said he would never approve two percent. Councilmember McCoy asked about the number of years and City Attorney, Ron Shaver said general policy was for a period of 10 years but by statute could go up to 20. Councilmember Gilmore said he would be ok with 2% for industries like hotels. Councilmember Brownlee asked to have the presentation sent to the Council and Mr. Page said they would do that. Mayor Bacon asked for these policies to come back to the Council in draft form once again before the Council is asked to vote. 4. Fire Department Focus Area Update. (20 min) Fire Chief, Jeff DeGraffenreid, presented an update on the Fire Department. Councilmember Brownlee asked about separate emergency spectrums and how that would impact a region wide incident. Chief DeGraffenreid said while their daily communications are on different channels, their system is very robust and they have regular communication with other local agencies. Councilmember Vogt asked about the decreased response time. Chief DeGraffenreid said it has to do with increased call volume. Ms. Vogt asked if they were continuing to study the growth of the City and what were the factors for the increased call volume. Chief DeGraffenreid said the calls actually dropped during the pandemic, but where there are people, there are calls. He indicated there are at least five calls a day Page 8 of 10 City Council Meeting Minutes October 19, 2021 to schools. He also said surrounding communities are experiencing the same increase. He said part of the issue is the wait time for medical transportation since there are the same number of ambulances as there were in 1993. Councilmember Gilmore thanked the Chief and said he understood the ISO rating effects insurance rates in the City. He also asked if station 9 is in the CIP. Chief DeGraffenreid said they are already beginning to plan for stations 9, 10, 11 and 12 in the future. He said neighboring communities help provide support when needed. Mr. Gilmore asked about the proposed phase two of the training center and Chief DeGraffenreid said phase two would provide additional specialized training. Mayor Bacon thanked the Chief and said he had heard of other cities with 30- 45 minute response times and Chief DeGraffenreid acknowledged that this is not just a local concern. 12. ADDITIONAL ITEMS Councilmember Brownlee had questions about the items removed from the CIP and questioned if there was a need for the Council to have a discussion regarding them. City Manager, Michael Wilkes, said the bottom three were removed but Staff would be happy to continue discussions if the Council desired. Mayor Bacon said if anyone had concerns he was open to discussions. Councilmember Vogt said she would like to have an update on the Comprehensive Plan. Chief Planning and Development Officer, Aimee Nassif, said they are currently having high level discussions and would be coming to the Council soon with opportunities. Councilmember Vogt asked if it was included in the budget and Ms. Nassif said Page 9 of 10 City Council Meeting Minutes October 19, 2021 it was in the 2022 budget. Ms. Vogt said she was looking forward to hearing more. Councilmember McCoy thanked Chief DeGraffenreid and his staff for all they do. 13. ADJOURNMENT The meeting was adjourned at 9:23 PM. Brenda D. Long City Clerk Page 10 of 10