City Commission

Regular Meeting Minutes City Hall Minutes of June 12, 2024 The Governing Body met at 4:00 pm on this date for the Regular City Commission Meeting with the following members present and participating to wit: Mayor Skidmore, Mayor Pro Tem Allen, Commissioner Caylor, Commissioner Clayton and Commissioner Crowley. Mayor Skidmore called the meeting to order. Mayor Skidmore welcomed the audience and led the Pledge of Allegiance to the American flag. Pastor Gregg Hall from Life Mission Church of Ottawa gave the invocation. Public Comments None were given. Appointments, Proclamations, Recognitions, Nominations, and Public Hearings Consent Agenda Commissioner Crowley made a motion, seconded by Commissioner Clayton, to approve this consent agenda to include minutes from the June 5, 2024 Regular Meeting, the April Finance Report and the Regular Meeting agenda. The motion was considered, and upon being put, all present voted aye. The Mayor declared the consent agenda duly approved. Declaration No declarations were made. Unfinished Business Safe Haven Baby Box The Governing Body heard from Angie Malik, who presented her fundraising efforts and her proposal to install a Safe Haven Baby Box at the fire station. Following extensive discussion, the Governing Body reached a consensus to explore the possibility of installing the box at an alternative location in collaboration with other community organizations. New Business Amending Resolution of Intent for Sales Tax IRBs for the Hasty Award Expansion The Governing Body heard from Tyler Ellsworth, Kutak Rock LLP, regarding amending the Resolution for Industrial Revenue Bonds for Hasty Awards Expansion. Mr. Ellsworth discussed the following: • This resolution amends the original resolution of intent to extend the date for completion of the project and use of the corresponding sales tax exemption • September 11th and 18th, 2023 the City Commission was advised the City received an Economic Incentives Application from Big Bear Enterprises requesting to issue Industrial Revenue Bonds (IRBs) for a sales tax exemption related to an expansion planned on Hasty Award’s Inc. June 12, 2024 1 City of Ottawa Regular Meeting Minutes June 12, 2024 Page 2 • Notice of Intent to issue IRBs was published in the September 20, 2023 Ottawa Herald Newspaper • A public hearing soliciting comments was held before the consideration of approval of the resolution on October 4, 2023 • Resolution 1946-23 was adopted on October 4, 2023 • The expansion project is nearing completion • The machinery and equipment for use within the expansion will not be purchased before the original expiration date of July 1, 2024 • Big Bear Enterprise has requested an extension of the expiration date to use the sales tax exemption • If approved, the completion date will be extended from July 1, 2024 to December 31, 2024 Commissioner Crowley made a motion, seconded by Mayor Pro Tem Allen, to adopt this resolution. The motion was considered and upon being put, all present voted aye. The Mayor declared this resolution duly adopted and duly numbered Resolution No. 1959-24. Amending Resolution of Intent for Property Tax Abatement for the Hasty Awards Expansion This item was addressed by the previous discussion. Commissioner Clayton made a motion, seconded by Commissioner Crowley, to adopt this resolution. The motion was considered and upon being put, all present voted aye. The Mayor declared this resolution duly adopted and duly numbered Resolution No. 1960-24. Recommendation to Add Seven Properties to the Neighborhood Revitalization Program The Governing Body heard from Ashley Hird, Planning Assistant, who reviewed the seven residential properties to add to the Neighborhood Revitalization Program: • Neighborhood Revitalization Program Review Committee recommends all seven residential properties be included in the NRP • The City of Ottawa's portion on the residential projects of the tax rebate amount per year for years one through five is $3,372.92 and $3,116.56 a year for years six through ten • The difference is due to the type of project with rehabilitation projects benefitting from a five-year rebate and new residential construction benefitting from a ten- year rebate • Residential rebate from the City of Ottawa for this group of projects is estimated to total approximately $32,447.36 over ten years Residential New Address Maximum Rebate Available 95% for 10 years 840 E. 8th St. (For Sale) $5,026.70 842 E. 8th St. (For Sale) $5,026.70 831 E. 8th St. (For Sale) $7.037.38 June 12, 2024 2 City of Ottawa Regular Meeting Minutes June 12, 2024 Page 3 829 E. 8th St. (For Sale) $7,037.38 833 E. 8th St. (For Sale) $7,037.38 Residential Remodel Address Maximum Rebate Available 95% for 5 years 936 N King St. (Homeowner Occupied) $402.14 1033 S. Cottonwood St. (Homeowner $879.67 Occupied) Commissioner Clayton made a motion, seconded by Commissioner Crowley, to approve the recommendation to add eleven properties to the Neighborhood Revitalization Program. The motion was considered and upon being put, all present voted aye. The Mayor declared these duly approved. Review of 2025 Operating Budget Special Revenue Funds The Governing Body heard from Finance Director Melanie Landis regarding the 2025 Special Revenue Fund budgets. Airport Fund Ottawa Municipal Airport provides aviation services and facilities, including hangars and fuel managed by a Fixed Based Operator. Highlights of the 2024 Revised Budget feature a transfer of $9,849.10 to match the amount for a Design Grant from KDOT Aviation. The 2025 Proposed Budget allocates $300,000 to match an FAA grant for the airport taxiway reconstruction project. In 2026, the Projected Budget does not include any planned improvements as the Airport Fund focuses on rebuilding its fund balance. Special Parks The Special Parks Fund finances capital projects that enhance recreational opportunities in the community through limited revenue sources and strategic funding parings. Highlights of the 2024 Revised Budget include $75,000 for partial funding of the splash pad, a $62,500 grant match for City Park playground surfacing, and a $135,321 final payment for the golf course acquisition. The 2025 Proposed and 2026 Projected Budgets do not include any planned projects as the Special Parks Fund focuses on rebuilding its fund balance. Special Streets Fund The Special Street Fund finances street and alley maintenance, construction, and related transportation projects, primarily funded by state highway funds and federal reimbursements. Highlights of the 2024 Revised Budget include $250,000 for street maintenance and $9,500 for Michelin Mobility software for pavement evaluation. The 2025 Proposed Budget and the 2026 Projected Budget each include $250,000 for street maintenance. Special Alcohol Fund The Special Alcohol Fund supports programs and education aimed at preventing drug and alcohol use, primarily through the DARE program. Highlights of the 2024 Revised Budget include a $35,000 transfer to the General Fund to offset the cost of the DARE June 12, 2024 3 City of Ottawa Regular Meeting Minutes June 12, 2024 Page 4 program. The 2025 Proposed Budget and the 2026 Projected Budget each include a $38,000 transfer to the General Fund to offset the cost of the DARE program. Risk Management Fund The Risk Management Fund maintains a safe work environment, manages property and casualty risks, and supports employee assistance and training programs, funded through transfers from the General and Enterprise Funds. Highlights of the 2024 Revised Budget include an $80,955 transfer to the reserve for future flood loss expenses, an average overall increase of 8% for property and casualty policies due to marketplace conditions related to frequency and severity of claims, inflation, cyber threats, and disasters. Additionally, property policy premium increased by 44% as replacement values increased on City buildings during this renewal, and the City's 5- year claims loss ratio for property and casualty policies is 37.95%, which is below the industry standard of 40% to 60%. The 2025 Proposed Budget includes an $85,055 (5% increase) transfer to the reserve for future flood loss expenses and an estimated 8.78% average increase in property and casualty policies. Similarly, the 2026 Projected Budget includes an $89,255 (5% increase) transfer to the reserve for future flood loss expenses and an estimated 8.78% average increase in property and casualty policies. Economic Development Fund The Economic Development Fund supports the City’s development expense by funding engineering and contractual fees through permit fees and revenue from development incentive transactions. Highlights of the 2024 Revised Budget and 2025 Proposed Budget include a $100,000 transfer to the Capital Improvement Fund. The 2026 Projected Budget includes normal operating expenditures. Opioid Settlement Fund The Opioid Settlement Fund manages and allocates settlement payments from the Kansas Fights Addiction Act to prevent, reduce, treat, or mitigate substance abuse and addiction. Highlights of the 2024 Revised Budget encompass undesignated funding aimed at maximizing expenditure authority once the use of funds is determined. Likewise, the 2025 Proposed Budget incorporates undesignated funding with the same objective. The 2026 Projected Budget indicates that expenditure authority will be determined if future distributions are received. Land Bank Fund The Land Bank Fund eliminates blight, enhances neighborhood vitality, creates affordable housing opportunities, maintains property values, align with the City’s Comprehensive Plan, and encourages economic development. The 2024 Revised, 2025 Proposed, and 2026 Projected budgets plan for the fund to remain open; however there are no planned acquisitions or expenditures at this time. City Manager’s Comments City Manager Brian Silcott updated the Governing Body on upcoming events happening in the City of Ottawa. June 12, 2024 4 City of Ottawa Regular Meeting Minutes June 12, 2024 Page 5 Governing Body Comments None were given. Announcements A. June 19, 2024 City Commission Meeting – 10:00 am, City Hall Adjournment There was no further business before the Governing Body, the Mayor declared the meeting duly adjourned at 6:14 pm. /s/ Melissa Reed Melissa Reed, City Clerk June 12, 2024 5