City Council

City of Olathe City Council 100 E. Santa Fe | Council Chamber Tuesday | November 16, 2021 | 6:45 PM 1. CALL TO ORDER Present: Brownlee, Mickelson, McCoy, Bacon, Vogt, and Gilmore Absent: Campbell Others in attendance were City Manager, Michael Wilkes, Deputy City Manager, Susan Sherman, and City Attorney, Ron Shaver. 2. EXECUTIVE SESSION Consideration of motion to recess into an executive session to discuss the following items: A. Discussions with the City's attorneys which would be deemed privileged in the attorney-client relationship pursuant to the exception provided in K.S.A. 75-4319(b)(2) regarding Goodwill of Western Missouri and Eastern Kansas v. City of Olathe, et al. (Federal District Court of District of Kansas Case No. 21-CV-02135). Motion by Vogt, seconded by McCoy, to recess into an executive session for consultations with the City's attorneys which would be deemed privileged in the attorney-client relationship pursuant to the exception provided in K.S.A. 75-4319(b)(2) regarding Goodwill of Western Missouri and Eastern Kansas v. City of Olathe, et al., Federal District Court for the District of Kansas Case No. 21-CV-02135 for 15 minutes. The motion carried with the following vote: Yes: Brownlee, Mickelson, McCoy, Bacon, Vogt, and Gilmore Absent: Campbell 3. RECONVENE FROM EXECUTIVE SESSION Motion by Vogt, seconded by McCoy, to authorize staff to proceed with strategies as discussed with and 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 Page 1 of 13 City Council Meeting Minutes November 16, 2021 6. SPECIAL BUSINESS A. Proclamation recognizing November as Native American Heritage Month. Mayor Bacon read and presented the Native American Heritage Month Proclamation to Brad Campbell, a local business owner and a member of the Iowa Tribe of Kansas and Nebraska. Mr. Campbell thanked the Mayor and council for the recognition. 7. PUBLIC HEARINGS Persons wanting to speak regarding a public hearing must sign up no later than 30 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. Each speaker is allowed up to 5 minutes to address the City Council. A. Consideration of a Public Hearing on a request by BlueScope Properties Group LLC for 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. Motion by Vogt, seconded by McCoy, to close the public hearing. The motion carried with the following vote: Yes: Brownlee, Mickelson, McCoy, Bacon, Vogt, and Gilmore Absent: Campbell B. Consideration of Master Resolution No. 21-1067 expressing intent to issue industrial revenue bonds and tax phase-in on behalf of BlueScope Properties Group LLC for the development and construction of four industrial, flex, and warehousing buildings totaling 640,150 square feet located near the northeast corner of 159th Street and Lone Elm Road, south of I-35. Motion by Vogt, seconded by McCoy, to approve Resolution No. 21-1067. The motion carried with the following vote: Yes: Brownlee, Mickelson, McCoy, Bacon, Vogt, and Gilmore Absent: Campbell C. Consideration of Resolution No. 21-1068 expressing intent to issue 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. Motion by Vogt, seconded by McCoy, to approve Resolution No. 21-1068. The motion carried with the following vote: Page 2 of 13 City Council Meeting Minutes November 16, 2021 Yes: Brownlee, Mickelson, McCoy, Bacon, Vogt, and Gilmore Absent: Campbell 8. 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 19, 2021. Approved B. Consideration of cereal malt beverage applications for calendar year 2022. Approved C. Consideration of renewal drinking establishment applications for Johnny’s Tavern Ridgeview Inc; El Saguaro Mexican Grill II LLC and Los Compadres. Approved D. Consideration of Resolution No. 21-1069 approving the execution and delivery of an agreement to release and assign the City's opioid claims to the Kansas Attorney General. Please see the attached email and documents that were provided to the City Council prior to their vote regarding this item. Exhibit A Approved E. Consideration of approval of the 2022 Intergovernmental Services Agreement. Approved F. Consideration of Resolution No. 21-1070 (PLN21-0006), requesting the City’s consent to the enlargement of the Consolidated Main Sewer District. Approved G. Request for the acceptance of the dedication of land for public easements and public street right-of-way for a final plat of Stonebridge South, First Plat (FP21-0041) containing 46 lots and three (3) tracts on 16.58 acres; located southeast of 167th Street and Ridgeview Road. Planning Commission approved this plat 7-0. Approved H. Request for the acceptance of the dedication of land for public Page 3 of 13 City Council Meeting Minutes November 16, 2021 easements and public street right-of-way for a final plat of Prairie Canyon, Second Plat (FP21-0038) containing 22 lots and two (2) tracts on 11.14 acres; located south of College Boulevard and west of K-7 Highway. Planning Commission approved this plat 8-0. Approved I. Request for the acceptance of the dedication of land for public easements for a final plat of Willow Run (FP21-0045), containing two (2) lots on approximately 0.89 acres; located at 2032 E. Cherokee Lane. Planning Commission approved the plat 7 to 0. Approved J. Consideration of Consent Calendar. Approved K. Consideration of Supplemental Agreement No. 1 with Olsson, Inc. for design of the 2022 Waterline Rehabilitation Project, PN 5-R-000-22. Approved L. Consideration of Engineer’s Estimate, acceptance of bids and award of contract to Boss Sheds for the installation of a pole barn accessory building at Lake Olathe Park as part of the Lake Olathe Master Plan Project, PN 4-C-002-15. Approved M. Consideration of Engineer’s Estimate, acceptance of bids and award of contract to Wiedenmann, Inc. for the Basin M6 Sanitary Sewer Rehabilitation and Improvements Project, Phase 2, PN 1-R-001-20. Approved N. Acceptance of bid and consideration of award of contract to Pure Technologies U.S. Inc. for the Van Mar and Cedar Lake Force main Assessments Project, PN 1-C-017-21. Approved O. Consideration of an Agreement with Staco Electric Construction Company for the Deconstruction of a Radio Tower Project, PN 8-M-031-21. Approved P. Consideration of bid and award of project to Wiedenmann, Inc. for construction of the N Woodland & N Stevenson Sanitary Sewer Rehabilitation Project, PN 1-R-102-21. Approved Q. Consideration and acceptance of award of contract to Insco Industries, Inc for pool painting and repairs for Infrastructure. Approved R. Consideration of renewal of contract with Motorola Corporation for the Page 4 of 13 City Council Meeting Minutes November 16, 2021 purchase of Watchguard in-car video systems and body camera systems for the Police Department. Approved S. Consideration of award of contract to Farha Roofing for roofing repairs and replacements at City of Olathe building sites. Approved T. Acceptance of bid and consideration of award of contract to Pure Technologies U.S. Inc. (d/b/a Wachs Water Services) for water valve and fire hydrant exercise, inspections and fire flow testing. Approved U. Consideration of renewal of contract with Rehrig Pacific Company for the purchase of refuse carts for Infrastructure. Approved V. Acceptance of bids and consideration of award of contracts to Fleet Fuel, LLC., Petroleum Traders Corporation, Taylor Oil and World Fuel Services for the purchase of gasoline and diesel fuel products for the City of Olathe. Approved W. Consideration of award of contracts to Smith & Boucher Engineers and Rose & Associates Engineering, P.A. for Mechanical, Electrical and Plumbing (MEP) Engineering Design Services for Infrastructure. Approved X. Consideration of renewal of contract to Custom Lighting Services, LLC. dba Black and McDonald for Electrical Lighting Maintenance for Infrastructure. Approved Y. Consideration of award of contract to Altec for the replacement of an articulating boom truck for the Traffic Division of Infrastructure. Approved Z. Consideration of contract renewal with Anthem Life to provide stop loss insurance for the self-funded City health and prescription program. Approved 9. NEW BUSINESS A. Consideration of Ordinance No. 21-55 (RZ21-0011), requesting approval of a rezoning from the CTY RUR (County Rural) District to the R-1 (Residential Single-Family) District and a final plat (FP21-0040) for Inspired, Lot 1 on approximately one (1) acre; located at 25370 W 143rd Street. Planning Commission recommends approval 8-0. Motion by Vogt, seconded by McCoy, to approve Ordinance No. 21-55. Page 5 of 13 City Council Meeting Minutes November 16, 2021 The motion carried with the following vote: Yes: Brownlee, Mickelson, McCoy, Bacon, Vogt, and Gilmore Absent: Campbell 10. NEW CITY COUNCIL BUSINESS Councilmember Brownlee congratulated KU for their win against Texas. Councilmember McCoy highlighted the Volunteer Reception and thanked the many volunteers for all they do for the City. Mayor Bacon invited everyone to attend the Mayor's Children's Fund Eggstravaganza event at First Watch on December 2, 2021. 11. END OF TELEVISED SESSION 12. GENERAL ISSUES AND CONCERNS OF CITIZENS Persons wanting to speak regarding a general concern must sign up no later than 30 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. Ann 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. 13. 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 the 2022 Human Service Fund Allocations. Report accepted. 2. Report on the 2022 Alcohol Tax Fund Allocations. Report accepted. 3. Report on a request by MDH F1 Dawn, LLC for a single-phase project totaling a 316,000 square feet addition to an existing 567,290 sq. ft. industrial building in the I-35 Logistics Park. Page 6 of 13 City Council Meeting Minutes November 16, 2021 Report accepted. 4. Artio agreement regarding City-owned property in the Kansas Bioscience Park. Mayor Bacon asked about the special assessments on this property and City Attorney, Ron Shaver provided the information. Councilmember Gilmore asked for a report regarding the special assessments the City has paid on this property and Mr. Shaver said he would provide that information to the Council. B. DISCUSSION ITEMS 1. Policy Follow Up Discussion - IRBs, Benefit Districts, TIFs, and CIDs. (15 Min) John Page, Financial Strategy Manager, gave a presentation. Councilmember Mickelson said he still believed they could tighten up the policy and thought the cost benefit should be set higher. Councilmember Vogt said she thought the Council should look at other alternatives to utilizing benefit districts. Councilmember Brownlee asked what sales tax the City was losing on materials being delivered to a building site. She asked what was meant by spin off sales. City Attorney, Ron Shaver, said that referred to such things like workers renting apartments or hotels. Councilmember Brownlee asked why they could not secure private funding. Tim McKee, Chamber of Commerce CEO, said it is actually a paper transaction not a form of financing. He also mentioned that a company could obtain sales tax exemption directly from the State but then the City would lose the fees that are associated with IRB's. He said some larger projects can generate as much as $250,000 in fees that make up for the loss in sales tax. Page 7 of 13 City Council Meeting Minutes November 16, 2021 Councilmember Gilmore asked why neighboring cities do not use benefit districts as the City of Olathe does. Mr. Page said he was unsure of the reasons. City Manager, Michael Wilkes, said he could not remember creating more than two benefit districts in the past decade. Councilmember Vogt asked if they needed to keep the policy if they didn't think they would be using it. Mr. Shaver said he recommended keeping the policy open and it is in line with State law. He said it didn't have to be used and would be reviewed every two years. Mayor Bacon asked if the 100% approval applied to water and sewer and Mr. Wilkes said he thought it was just for streets. Councilmember Mickelson asked if there would be a separate vote for each of the policies and Mr. Shaver said they were only clustered together for the report but would be voted on individually. Councilmember Gilmore asked when they would be coming back and Mr. Shaver said next council meeting. Councilmember Brownlee asked about increasing the excise tax instead of benefit districts and Mr. Shaver said they were unable to do that unless it was voted on and Ms. Brownlee acknowledged that it was possible but would be a big step. Councilmember Gilmore said he wanted to make note that the developers would pass along the cost to homeowners one way or another. He said he supported benefit districts if they were used wisely. He said he liked the ways it had been tightened up. Councilmember Brownlee asked for clarification regarding the stipulation that there be 100% of homeowner's signatures of Page 8 of 13 City Council Meeting Minutes November 16, 2021 platted lots and Mr. Shaver, explained the provision. He also said there was a section that addressed private to public street transition. 2. Discussion of a sculpture for the Sheridan and Ridgeview Roundabout. (10 Min) Nate Baldwin, City Engineer, and Renee Rush, Art Committee Staff Liaison, presented the two art options. Councilmember McCoy asked if the City would own these art pieces. Ms. Rush said yes and that they would be built after the contract was signed. Mr. McCoy asked if that meant they could be moved and Ms. Rush said they were not intended to be moved. Councilmember Michelson asked about the budget for this art. Ms. Rush said $50,000 would be coming from the Public Art Fund for the art itself. She said there was another $50,000 budgeted for landscaping. Councilmember Mickelson expressed safety concerns about lighted art in the roundabout. Police Chief, Mike Butaud, said he would have to refer those questions to the traffic engineers. Mr. Mickelson said he wondered if people would be looking at the art and not paying enough attention to their driving. Ms. Rush said they had done considerable research and roundabout art was very popular. She said safety was part of the criteria considered by the art committee. Mayor Bacon asked about the size and Ms. Rush said they were 14-15 feet tall. Councilmember Brownlee asked what just landscaping would cost and Mr. Baldwin said they didn't have a firm budget yet, but thought it would be somewhere around 10 to 15 thousand. Ms. Brownlee said she was not a fan of spending money on art and would rather have just plants. Ms. Rush pointed out that the funding was coming from the public art fund and no tax dollars were being used. Ms. Brownlee asked about Page 9 of 13 City Council Meeting Minutes November 16, 2021 developers being forced to contribute to the public art fund and Ms. Rush said they were only asked to contribute if they did not have their own art work. Councilmember Vogt said she thought there were some great questions about safety and wished they could do this on the west side of the highway in the smaller roundabout. Mr. Baldwin said they were looking at the west side but it is a much smaller roundabout. Ms. Rush said they would look for more safety information and then it would be on the consent agenda for approval. Mayor Bacon said he loved it and suggested looking for corporate sponsors. 3. Discussion of the 2022 State Legislative Program. (10 Min) Tim Danneberg, External Affairs and Issues Management Director, presented the 2022 Legislative Program. Councilmember Brownlee suggested including comments regarding alternative or renewable energy and that the regulation of that remain more locally. Mr. Danneberg said the Chamber's draft platform had made a statement on energy and asked Ms. Brownlee if she was suggesting something more at the local level. Mr. Danneberg said something could be added. Mayor Bacon asked how that might impact cities and the UDO. Aimee Nassif, Chief Planning and Development Officer said there are restrictions and allowances for solar in the UDO. Councilmember Gilmore said he supported adding language encouraging keeping renewable energy guidelines at the local level. Councilmember Brownlee said maybe it was more appropriate for the Chamber and Mr. Danneberg said they had already Page 10 of 13 City Council Meeting Minutes November 16, 2021 included language regarding renewable energy. Mr. Danneberg recommended a modification and Ms. Brownlee said she thought that was good. Councilmember Vogt asked if there was any information about the SPARK committee and Mr. Dannerberg said they were waiting for final regulations to come out from the Treasury. Ms. Vogt said she just didn't want to miss anything and asked that he have a conversation with the governing body when the regulations were available. Councilmember Vogt asked if the Infrastructure Investment and Employment Act would go through the State and Mr. Danneberg said it would. He said they were waiting on clarification and guidance. Ms. Vogt asked about the timeline and Mr. Danneberg said they didn't know yet. Ms. Vogt said she was confident that staff would be on top of it. 4. Discussion of the Police Building Expansion Phase II project, PN 6-C-010-20. (30 Min) Jeff Blakeman, Senior Build Design Project Manager along with Jennifer Goeke with PGVA Architects, gave an update on the design of the Police Department Expansion. Councilmember Gilmore asked for more clarification regarding the second story of the staff area. Mr. Blakeman said the second story was for future construction as it was not included in the current budget. Councilmember Mickelson asked about the timeline and the length of time that was anticipated for the steel to be received. Mr. Blakeman said they didn't anticipate needing the steel until probably January of 2023. Mr. Mickelson also asked about the cost of the second story and Mr. Blakeman said it was in the neighborhood of 8-9 hundred thousand to build the shell. Mr. Mickelson said he would assume it would be more when added in the future and suggested they might find a way to move forward with the second story now. Mr. Blakeman said that the cost of everything is going up, even since the original Page 11 of 13 City Council Meeting Minutes November 16, 2021 design in the summer. Councilmember Vogt agreed that the cost will only go up and wondered if it was better to at least build the shell now. She said borrowing money at this time was pretty cheap. Councilmember McCoy also said he thought they should figure a way to do it now. Councilmember Gilmore agreed that it might be a good thing to look at building the second story now. He also said he liked the variation in the stone work. Councilmember Brownlee said she liked the design and asked how many years staff anticipated this building would serve the needs of the police department. Mr. Blakeman said it was anticipated that the expansion would be adequate well past 2043. He said the materials that were proposed being used were considered long-life materials and could last 50 years. Steve Troester with PGVA said they would provide additional data to the council regarding the interior renovations and finishing the second story. Mayor Bacon said he hoped to have additional data in early 2022 and didn't want to sacrifice square footage. 5. Police Department Focus Area Update. (20 Min) Chief Mike Butaud gave an update on the activities of the Police Department. Councilmember McCoy asked if there had been any students coming out of Olathe West join the police force. Chief Butaud said not yet, since they were not yet old enough, but they were staying engaged with some students. Councilmember Gilmore thanked Chief Butaud for all the Page 12 of 13 City Council Meeting Minutes November 16, 2021 police provide for the community and said he is totally committed to the police. Mayor Bacon commented on the co-responder program and said he loves the police community involvement. 14. ADDITIONAL ITEMS Councilmember Mickelson congratulated Councilmembers Vogt and Gilmore and Councilmember-elect Felter on their successful campaigns. He said he is looking forward to the coming year working with them. Councilmember McCoy wished everyone a Happy Thanksgiving. Councilmember Gilmore wished everyone a Happy Thanksgiving and encouraged people to consider supporting those in need during this season. Deputy City Manager, Susan Sherman, introduced Meredith Hauck, Interim Economy Director. Mayor Bacon wished everyone a Happy Thanksgiving and safe travels. 15. ADJOURNMENT The meeting was adjourned at 9:42 P.M. Brenda D. Long City Clerk Page 13 of 13