City Commission

Back to Agenda OTTAWA CITY COMMISSION REGULAR MEETING AGENDA Wednesday, October 2, 2024 - 7:00 pm Ottawa City Hall - 101 S. Hickory In accordance with Kansas Open Meetings Act (KOMA), the Citizens may in person, via Zoom or submit comments (300 meeting can be viewed live on Channel 23 and via Facebook Live words or less) for the City Commission to be read during public or listened to by dialing: 1-312-626-6799 and entering meeting comment or during discussion on an agenda item. ID 979 6273 3505#. To view on YouTube: https:// To submit your comment or request the meeting Zoom link to www.youtube.com/@ottawaksgov give a public comment, email publiccomments@ottawaks.gov If you need this information in another format or require a no later than 2:00 pm on October 2, 2024; all emails must in reasonable accommodation to attend this meeting, contact the your name and address. Participants who generate unwanted City’s ADA Coordinator at 785-229-3621. Please provide advance or distracting noises may be muted by the meeting host. If this notice of at least two (2) working days. TTY users please call 711. happens, unmute yourself when you wish to speak. I. CALL TO ORDER II. ROLL CALL ____ Skidmore ____ Allen ____ Caylor ____ Clayton ____ Crowley III. WELCOME IV. PLEDGE OF ALLEGIANCE V. INVOCATION - Reverend Bob Colerick, First Christian Church VI. PUBLIC COMMENTS Subject to the above restrictions, persons who wish to address the City Commission regarding items on the agenda may do so as that agenda item is called. Persons who wish to address the City Commission regarding items not on the agenda and that are under the jurisdiction of the City Commission may do so at this time when called upon by the Mayor. Comments on personnel matters and matters pending in court or with other outside tribunals are not permitted. Speakers are limited to three minutes. Any presentation is for information purposes only. The Governing Body will take comments under advisement. VII. APPOINTMENTS, PROCLAMATIONS, RECOGNITIONS, NOMINATIONS, AND PUBLIC HEARINGS A. Proclamation Recognizing October 6-12, 2024 as Fire Prevention Week (P. 3) Comments: Since 1922, fire departments have actively supported Fire Prevention Week, making it the longest running public health and safety observance on record. This year’s campaign focus is “Smoke alarms: Make them work for you!” Fire Chief Dillon will accept the proclamation. VIII. CONSENT AGENDA A. Minutes from the September 25, 2024 City Commission Meeting (Pp. 4 - 7) B. Agenda Approval Motion: __________ Second: __________ Vote: __________ IX. DECLARATION At this time, I’d like to give the Commissioners a chance to declare any conflict or communication they’ve had that might influence their ability to consider today’s issues impartially. X. UNFINISHED BUSINESS 10.02.24 Agenda Pkt Page #1  Back to Agenda XI. NEW BUSINESS A. Proposed Vacation of Easement at 1015 N. Cherry - City Planner Martin (Pp. 8 - 25) Comments: It is recommended that the Ottawa City Commission consider the proposed request for a vacation of an existing easement at 1015 North Cherry Street for approval, repealing the previous ordi- nance and adopting the revised ordinance as presented. Motion: __________ Second: __________ Vote: __________ B. Wastewater Treatment Plant sales tax sunset and termination of monthly surcharge - Finance Director Landis (Pp. 26-31) Comments: The Wastewater Treatment Plant was constructed in 2004 and funded through a special one- tenth sales tax and monthly user surcharge. The retirement of the related debt sunsets the special sales tax and releases the monthly user surcharge. XII. COMMENTS BY CITY MANAGER XIII. COMMENTS BY GOVERNING BODY XIV. ANNOUNCEMENTS A. October 9, 2024 City Commission Meeting - 4:00 pm, City Hall B. October 16,2024 Franklin County Community Outlook - 8:00 am—10:00 am, Ottawa University C. October 16, 2024 City Commission Meeting - 10:00 am, City Hall D. October 23, 2024 City Commission Meeting - 4:00 pm, City Hall XV. EXECUTIVE SESSION Motion: I move that the Commission recess into executive session at ______for a period of ____ minutes with the City Attorney, Finance Director and City Manager present for the purpose of attorney client consultation. The justification for the closed session is to engage in confidential and privileged communication with the board’s attorney by K.S.A. 75-4319(b)(12). The open meeting is to resume in this room at _______. XVI. ADJOURN 10.02.24 Agenda Pkt Page #2  Back to Agenda PROCLAMATION WHEREAS, the City of Ottawa, Kansas is committed to ensuring the safety and security of all those living in and visiting Ottawa; and WHEREAS, fire is a serious public safety concern both locally and nationally, and homes are the locations where people are at greatest risk from fire: and WHEREAS, home fires caused 2,760 civilian deaths in the United States in 2022, according to the National Fire Protection Association, and fire departments in the United States responded to 360,000 home fires; and WHEREAS, smoke alarms sense smoke well before you can, alerting you to danger in the event of a fire in which you may have as little as 2 minutes to escape safely; and WHEREAS, working smoke alarms cut the risk of dying in reported home fires in half; and WHEREAS, Ottawa’s residents should be sure everyone in the home understands the sounds of smoke alarms and knows how to respond; and WHEREAS, Ottawa’s residents who have planned and practiced a home fire escape plan are more prepared and will therefore be more likely to survive a fire; and WHEREAS, Ottawa’s residents will make sure their smoke and carbon monoxide alarms meet the needs of all their family members, including those with sensory or physical disabilities; and WHEREAS, Ottawa’s first responders are dedicated to reducing the occurrence of home fires and home fire injuries through prevention and protection education; and WHEREAS, Ottawa’s residents who are responsive to public education measures are better able to take personal steps to increase their safety from fire, especially in their homes; and WHEREAS, the 2024 Fire Prevention Week theme, “Smoke alarms: Make them work for you” effectively serves to remind us it is important to have working smoke alarms in their homes. THEREFORE, the Governing Body of City of Ottawa, does hereby proclaim the week of October 6-12, 2024, as FIRE PREVENTION WEEK and urges the citizens of Ottawa to plan and practice a home fire escape for Fire Prevention Week and to support the many public safety activities and efforts of Ottawa’s fire and emergency services. Signed this 2nd day of October 2024. ________________________________________________________ Mike Skidmore, Mayor 10.02.24 Agenda Pkt Page #3  Back to Agenda Regular Meeting Minutes City Hall Minutes of September 25, 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 Clayton, and Commissioner Crowley. Commissioner Caylor arrived at 4:07 pm. Mayor Skidmore called the meeting to order. Mayor Skidmore welcomed the audience and led the Pledge of Allegiance to the American flag. City Manager Silcott gave the invocation. Public Comments None were received. Appointments, Proclamations, Recognitions, Nominations and Public Hearings Proclamation Recognizing Franklin County Optimist Club 50th Anniversary Mayor Pro Tem Allen read a proclamation recognizing the Franklin County Optimist Club’s 50th Anniversary. Mayor Skidmore will present the proclamation at an upcoming event. Consent Agenda Commissioner Crowley made a motion, seconded by Commissioner Clayton, to approve the consent agenda, including minutes from the September 18, 2024 Regular Meeting, August 29, 2024 Planning Commission Minutes, August 2024 Financial 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 New Business Review of Monthly Reports for August 2024: The Governing Body reviewed the August 2024 Monthly Reports with community support organizations. Rural Housing Incentive District (RHID) Discussion The Governing Body received a presentation from Finance Director Landis and Tyler Ellsworth, Kutak Rock, regarding the City’s RHID incentive policy and engaged in discussion on housing incentives which included: • RHID is governed by K.S.A. 12-5241 through 12-5256 and its purpose is to address housing shortages by allowing property tax rebates for the cost of acquisition of property and installation of public infrastructure, renovation of buildings over 25 years old in central business districts for residential improvements to second or higher floors, and renovation or construction of residential dwellings, multi-family units or buildings on lots with existing infrastructure for more than 10 years. 10.02.24 Agenda Pkt Page #4  Back to Agenda • City’s RHID policy includes a minimum of 10 renter-occupied units, developers cover upfront costs of improvements and are reimbursed on a pay-as-you-go basis. • The objective is to incentivize the construction or rehabilitation of quality housing based on the following: 1) shortage of quality housing in various price ranges despite efforts from the public and private sectors exists, 2) a shortage is expected to persist which necessitates additional financial incentives, 3) the shortage causes a substantial deterrent to economic growth, and 4) the future economic well-being of the city depends on incentivizing housing developments. • Prioritization is determined through a but-for analysis which evaluates extraordinary or unique costs, tax revenue potential from projects, value-added results, and history of timely property tax payments. Winter Assitance Program (Electric utility) The Governing Body received a presentation from Assistant Finance Director McCurdy regarding the Winter Warmth Assitance Program offered by the City of Ottawa’s Electric Utility which included: • Winter Warmth Assistance Program was created through Resolution 1607-13 in 2013 • The program grants assistance of up to 50% of monthly electric charges, not to exceed $75 per billing cycle for customers who meet qualifications. • Qualifications include being a recipient of social security benefits, Veteran benefits, receiving state food assistance, or having a combined gross household income not exceeding 130% of the federal poverty level, an active and current utility account, and a completed application submitted before December 1st. • The program runs during December, January, February, and March with a maximum assistance amount of $300 per eligible customer • In 2022, the program helped 81 utility accounts with a total of $14,263 in assistance • In 2023, the program helped 77 utility accounts with a total of $12,981 in assistance • Staff aims to increase outreach and program participation with information posted at key community locations • The program is annually funded through the Electric Fund, with $22,00 budgeted for both 2024 and 2025 City Hall Commission Room Modernization Design Firm Selection of RFQ The Governing Body heard from IT Director Sommer regarding the recommendation to select Goldberg Group Architects as the design services provider for the City Hall Commission Room Modernization project. The City issued a Request for Qualifications (RFQ) on August 14, 2024, seeking design firms with experience in designing public spaces. The purpose of the project is to create a modern, functional space with a curved dais, technology upgrades, and ADA-compliant accessibility features. Goldberg Group Architects was the sole respondent. Despite being the only submission, a thorough review confirmed their qualifications and capability to deliver the project. Commissioner Caylor made a motion, seconded by Mayor Pro Tem Allen, to approve the selection of Goldberg Group Architects as the design services provider for the City Hall Commission Room Modernization project and authorize the City Manager to negotiate and execute a contract with the selected firm. The motion was considered and upon being put, all 10.02.24 Agenda Pkt Page #5  Back to Agenda present voted aye. The Mayor declared the selection of Goldberg Group Architects duly approved. Review of Transient Guest Tax The Governing Body heard from City Manager Silcott regarding the recommendation to consider a charter ordinance authorizing the ability, but not the obligation, to levy a transient guest tax (TGT) in an amount to not exceed nine percent (9%). The City issues this proposal as part of a two-step process, where the charter ordinance would grant the City Commission the authority to impose the tax, and a subsequent ordinance would set the actual rate. After discussion, Commissioner Clayton made a motion, seconded by Commissioner Caylor, to approve the charter ordinance authorizing the ability, but not the obligation, to levy a transient guest tax in an amount not to exceed nine percent (9%). The motion was considered and upon being put, all present voted aye. The Mayor declared the charter ordinance duly approved, it was numbered Charter Ordinance No. 23-24. JPM Agreement (Golf Course) for December 30, 2024 Termination The Governing Body heard from City Manager Silcott regarding the recommendation to authorize the City Manager to execute a lease amendment with JPM Enterprises, LLC, terminating the current lease for the management and operation of the Ottawa Golf Course effective December 30, 2024. The City acquired the Ottawa Golf Course in 2022 and had continued a lease agreement with JPM Enterprises, set to expire on March 31, 2026. The amendment will finalize the transition of operations from JPM to the City, effective at the end of 2024. Commissioner Crowley made a motion, seconded by Commissioner Clayton, to authorize the City Manager to execute the lease amendment with JPM Enterprises, LLC as presented. The motion was considered and upon being put, all present voted aye. The Mayor declared the lease amendment duly authorized and approved for execution. Project Updates The Governing Body heard from City Manager Brian Silcott, who provided an update on current projects. City Manager’s Comments City Manager Silcott provided an overview of the tentative agenda items for the upcoming City Commission meeting and events happening in the community. Governing Body Comments Commissioner Clayton expressed gratitude to the Chamber of Commerce and the Franklin County Development Council for organizing the Panasonic luncheon. Mayor Skidmore then inquired about any issues that occurred during the car show. In response, Chief Weingartner confirmed that no major incidents were reported during the event. 10.02.24 Agenda Pkt Page #6  Back to Agenda Announcements A. October 2, 2024 City Commission Meeting – 7:00 pm, City Hall B. October 9, 2024 City Commission Meeting – 4:00 pm, City Hall C. October 16, 2024 Franklin County Community Outlook – 8-10:00 am, Ottawa University D. October 16, 2024 City Commission Meeting – 10:00 am, City Hall Adjournment There was no further business before the Governing Body, the Mayor Pro Tem declared the meeting duly adjourned at 5:55 pm. Melissa Reed, City Clerk 10.02.24 Agenda Pkt Page #7  Back to Agenda Agenda Item: XI.A City of Ottawa City Commission Meeting October 2, 2024 TO: Mayor and City Commission SUBJECT: Approval of a request for a vacation of an existing easement at 1015 North Cherry Street INITIATED BY: Director of Neighborhood and Community Services AGENDA: New Business Recommendation: Based on the recommendation of the Ottawa Planning Commission, and the findings of Staff, it is recommended that the Ottawa City Commission consider adopting proposed new ordinance vacating an unneeded easement and repealing prior ordinance 4135-24 which contained an incorrect legal description for the easement to be vacated. Background: This application was reviewed to the standards of Section 12-4 (Vacation of Streets, Alleys, Easements, and Plats) of the subdivision code and the conditions of approval therein, including the following: - That due and legal notice has been given; - That no private rights will be injured or endangered; and - That the public will suffer no loss or inconvenience. The request and staff findings were heard at the September 11, 2024, Planning Commission public hearing. Notice to surrounding property owners was provided for this hearing on August 19, 2024, and the City received no responses in favor or in opposition to the application. The proposed vacation was discussed during the meeting, with the context provided that this application was being heard an additional time due to an error in originally approved ordinance. Analysis: The subject site is an undeveloped 0.67-acre tract located near the corner of N Cherry Street and E Wilson. The project is bounded on all sides by existing residential development. It is zoned R-3, High-Density Residential, which allows for the proposed use by right. The proposed use is consistent with that of the future land use plan in that it is residential, though not low-density. However, it does conform to existing zoning and addresses a need for housing in the community. As noted, this item was brought before Commission again due to an error in the legal description in the adopted ordinance. As such, the item is required to be approved through Commission again to repeal the prior ordinance and adopt the corrected one. The proposed vacation has not changed from what was originally approved by Planning and City Commission, this request is simply to 10.02.24 Agenda Pkt Page #8  Back to Agenda address the error in the adopted ordinance. As such, staff determined that the considerations of approval as outlined in the background were met in this application. Financial Considerations: There is no anticipated cost to the City for this application. Staff does note the associated cost of publishing notice for the item. Legal Considerations: Approved as to form by City Attorney. Recommendation/Action: It is recommended the City Commission deliberate approval of the proposed ordinance and adopt the findings of the Planning Commission approving the requested vacation of the existing easement at 1015 North Cherry Street: - Take action at the October 2, 2024, Regular Meeting: “Recommend adopting proposed new ordinance vacating an unneeded easement and repealing prior ordinance 4135-24 which contained an incorrect legal description for the easement to be vacated”. - Recommend the item be moved to the October 9, 2024, City Commission hearing for further discussion and consideration. Alternative Actions: - Override the Planning Commission recommendation, adopt alternative findings and deny the request (4 of 5 votes). - Return the case to the Planning Commission for additional consideration to include description of the purpose for the additional consideration (3 of 5 votes). Next Steps: - Following the approval of the vacation by the Governing Body, the City Clerk shall certify a copy of the order to the Franklin County Register of Deeds (Section 12-401(a)(4). Attachments: XI.A1 Vacation Ordinance XI.A2 Planning Commission Report XI.A3 Application XI.A4 Affidavit of Public Hearing XI.A5 Site Overview XI.A6 Preliminary Site Plan XI.A7 Vacation Exhibit 10.02.24 Agenda Pkt Page #9  Back to Agenda .01 ORDINANCE NO. AN ORDINANCE VACATING EXISTING UTILITY EASEMENT OVER LOT 1, IN SUNRISE ESTATES, A REPLAT OF LOT 2 IN BLOCK 2 OF THE RIVERVIEW ADDITION, IN THE CITY OF OTTAWA, FRANKLIN COUNTY, KANSAS COMMONLY KNOWN AS 1015 NORTH CHERRY. WHEREAS, Riverview Addition to the City of Ottawa, Kansas was platted in 1886 and created a Lot 2 in Block 2 of that addition; and WHEREAS, Max Pierson and Oletha B. Pierson, husband and wife, granted utility easements to the City of Ottawa in 1967 by instrument recorded in Misc. Book 69, Page 301 at the Franklin County Register of Deeds; and WHEREAS, Lot 2 in Block 2 of the Riverview Addition was replatted as the five lots of Sunrise Estates in 2017; and WHEREAS, at the time of the replat the city had adopted subdivision regulations providing for appropriate notice as described in K.S.A. 12-512b, and thus all prior easements whether established by prior instrument or earlier plats were vacated by the filing of the Sunrise Estates Replat and only those easements shown on the replat remain; and WHEREAS, the owner of Sunrise Estates Lot 1 now desires to vacate a portion of the utility easement on Lot 1 in Sunrise Estates, Ottawa, Franklin County, Kansas. NOW THEREFORE BE IT ORDAINED by the Governing Body of the City of Ottawa, Kansas, as follows: Section 1: VACATION OF UTILITY EASEMENT within the City Limits. Pursuant to recommendations issued by the City Planning Commission of the City of Ottawa, Kansas, after a public hearing on May 30, 2024, notice of which was duly given; the following described portion of that utility easement, situated within the City of Ottawa, Franklin County, Kansas is hereby vacated and more particularly described: All of that portion of the 20 foot utility easement running from the south line of the 15 foot utility easement running along the north side of Lot 1, south to the north line of the 10 foot utility easement running along the south side of Lot 1, all in Sunrise Estates, A replat of Lot 2, Block 2, Riverview Addition, to the City of Ottawa, Franklin County, Kansas. Section 2: From and after the effective date of this ordinance the ownership of the portion of the utility easement described above, vacated herein, shall revert to the owners of the real estate subservient thereto, according to law. Section 3: Ordinance No. 4135-24 is hereby repealed. Section 4: The City Clerk is authorized to certify a copy of the order and directed to record this ordinance in the office of the Register of Deeds of Franklin County, Kansas, replacing Ordinance No 4135- 24. 10.02.24 Agenda Pkt Page #10  Back to Agenda Section 5: This ordinance shall be effective from and after its passage, approval, and publication in the official city newspaper. PASSED AND ADOPTED by the Governing Body of the City of Ottawa, Kansas, this day of , 2024. Michael Skidmore, Mayor ATTEST: Melissa Reed, City Clerk 10.02.24 Agenda Pkt Page #11  Back to Agenda .02 STAFF MEMO TO: Ottawa Planning Commission FROM: Neighborhood and Community Services MEETING DATE: September 11, 2024 SUBJECT: Vacation of Easements: 1015 N Cherry Street David Anderson, on behalf of Sunrise Estates LLC has applied for a vacation of existing easements at 1015 N Cherry Street to permit the development of a four-plex dwelling, with overhead utilities to be relocated to allow for said development. The subject site is an undeveloped 0.67-acre tract located near the corner of N Cherry Street and E Wilson. The project is bounded on all sides by existing residential development. It is zoned R- 3, High-Density Residential, which allows for the proposed use by right. The proposed use is consistent with that of the future land use plan in that it is residential, though not low-density. However, it does conform to existing zoning and addresses a need for housing in the community. This item is before the Planning Commission again due to an error in the legal description in the adopted ordinance. As such, the item is required to be approved through Commission again to repeal the prior ordinance and adopt the corrected one. The proposed vacation has not changed from what was originally approved by Planning and City Commission, this request is simply to address the error in the adopted ordinance. In addition to review by staff and the Development Review Committee, the following factors have been considered in relation to this proposal and related staff findings may be found below. To recommend approval of the vacation, it is necessary, per Article 12-401, that the Planning Commission also determines that the following conditions have been met. 1. Due and legal notice has been given; Staff Finding: Notice for surrounding properties regarding the September 11, 2024 public hearing was sent out on August 19th. This meets the standards of city regulations and practice, and staff finds it provides ample time for adjacent properties to petition or comment on the proposed vacation. 2. No private rights will be injured or endangered; Staff Finding: Based on staff review, it was determined that there would be no injury or endangerment of private rights by allowing this vacation. 10.02.24 Agenda Pkt Page #12  Back to Agenda 3. The public will suffer no loss or inconvenience; Staff Finding: Staff did not find that there would be any loss or inconvenience to the public through the permission of this vacation. Recommendation: Staff recommends that the vacation of the existing easement as outlined within the exhibits included in this application be approved. Conditions of Approval: 1. None Attachments: • Application • Public Notice • Vicinity Map • Memo from City Utilities • Existing Utilities GIS Image • Proposed Site Plan • Vacation Exhibit • Revised Ordinance (Reflecting Exhibit) 10.02.24 Agenda Pkt Page #13  Back to Agenda .03 10.02.24 Agenda Pkt Page #14  Back to Agenda 10.02.24 Agenda Pkt Page #15  Back to Agenda 10.02.24 Agenda Pkt Page #16  Back to Agenda 10.02.24 Agenda Pkt Page #17  Back to Agenda 10.02.24 Agenda Pkt Page #18  Back to Agenda 10.02.24 Agenda Pkt Page #19  Back to Agenda 04 10.02.24 Agenda Pkt Page #20  Back to Agenda 10.02.24 Agenda Pkt Page #21  Back to Agenda 05 Ottawa, KS Legend Water Control Valves Air Release Blowoff Water Hydrants Water Meters Water Valve Right Close Water System Valves <all other values> Butterfly Fire Protection Gate Hydrant Service Water Fittings Water Sampling Stations Water Mains Water Line Point Manhole Lamphole ARV Lift Station Gravity Main Gravity Main Lined Sewer Fitting Service Line Force Main 1 in. = 83ft. Line Point Notes Storm Inlet <all other values> 166.7 0 83.33 166.7 Feet This Cadastral Map is for informational purposes only. It does not purport to represent a property boundary survey of the parcels shown and shall not be Beehive used for conveyances or the establishment of property boundaries. Curb Inlet 10.02.24 Agenda Pkt Page #22 THIS MAP IS NOT TO BE USED FOR NAVIGATION  Back to Agenda 06 ER RY A LDL. CON INA G N E SED LIC N L IM 1128 PRE PRO F ES KA NSA S V SIO NAL SUR EY OR Payne & Brockway P.A. Civil Engineers & Land Surveyors 426 South Kansas Ave. Olathe, Kansas 66061 Ph: 913.782.4800 Fax: 913.782.0907 www.Payne-Brockway.com 10.02.24 Agenda Pkt Page #23  Back to Agenda 07 10.02.24 Agenda Pkt Page #24  Back to Agenda 10.02.24 Agenda Pkt Page #25  Back to Agenda Agenda Item: XI.B City of Ottawa City Commission Meeting October 2, 2024 TO: City Commission SUBJECT: Sunset of one-tenth sales tax dedicated to wastewater improvements, monthly wastewater surcharge, and retirement of debt related to the wastewater plant INITIATED BY: Finance Director AGENDA: New Business (Receive and File) Recommendation: Receive and file report on the sunset of the one-tenth special sales tax, the monthly wastewater surcharge, and the retirement of debt related to wastewater plant improvements. Background: The construction of the Wastewater Treatment Plant was completed in 2004 with a total cost of nearly $10,000,000. The project was funded through a State of Kansas Economic Development Assistance (EDA) Grant of $750,000, a US EPA Grant for design, and a Kansas Department of Health and Environment (KDHE) Revolving Loan in the amount of $10,353,458.56. The loan was later refinanced under general obligation bond 2014A in which the final debt payment is scheduled for October 1, 2024. On April 3, 2001, the residents of Ottawa voted to put in place a one-tenth special sales tax dedicated to wastewater plant construction and improvements. Resolution 1105-01 (Item XI.B.1) approved the ballot question stating that the retailers’ sales tax shall terminate upon the final payment of any bonds or other debt obligations issued to finance such improvement. Additionally, the City Commission voted to establish a monthly surcharge through Ordinance 3381-01 (Item XI.B.2), adopted on September 19, 2001. • Residential surcharge of $1.00 per month beginning in January 2002 with an increase of $1.00 per month every two years through 2010 and then to continue at the rate of $5.00 per month until the debt was retired for the construction of the wastewater treatment plant. • Commercial user surcharge established at $.40/unit beginning with January 2002 and increased by $.40/unit every two years through 2010 and then continued at a rate of $2.00/unit until the debt was retired for the construction of the wastewater treatment plant. Analysis: The revenue generated from the special sales tax and the monthly customer surcharge have been used to make the semi-annual debt service payments on the original KDHE loan C20- 1266-01 and the general obligation bond issue 2014A. The final debt payment on GO bond 2014A is scheduled for October 1, 2024. The Kansas Department of Revenue was notified on April 30, 2024, that the special sales tax will sunset on September 30, 2024. The City can expect the final distribution of that special sales tax 10.02.24 Agenda Pkt Page #26  Back to Agenda to be received with the November 30, 2024, monthly distribution. In 2023, special sales tax collected totaled $391,870 and the expected 2024 collections are approximately $385,400 through September 30. In 2023, the monthly customer surcharge generated $590,958.26 and the expected 2024 collections are approximately $480,000. The final collection of the monthly surcharge will occur with the October 2024 monthly utility bill. Financial Considerations: Fund 078 has been dedicated to the special sales tax collection and semi-annual debt payments specific to the wastewater plant improvements. Once bond issue 2014A is retired, the remaining fund balance will be approximately $705,000 and will be applied to the outstanding debt obligation of general obligation bond issue 2021A, which refinanced the KDHE loan debt for the east side interceptor construction. Legal Considerations: City Attorney Blaine Finch provided notification of the sales tax sunset to the Kansas Department of Revenue on April 30, 2024. Recommendation/Action: Receive and file report on the sunset of the one-tenth special sales tax, the monthly wastewater surcharge, and the retirement of debt related to wastewater plant improvements. Attachments: XI.B.1 Resolution 1105-01 (3 pp); XI.B.2 Ordinance 3381-01 (1 pp) 10.02.24 Agenda Pkt Page #27  Back to Agenda • RESOLUTION NO. 1105-01 A RESOLUTION TO SUBMIT TO THE QUALIFIED ELECTORS OF THE CITY OF OTTAWA, KANSAS, THE PROPOSITION OF LEVYING A ONE-TENTH OF ONE PERCENT (.10%) RETAILERS' SALES TAX IN THE CITY. WHEREAS, K.S.A. 12-187(a) authorizes any city to submit the question of imposing a city retailers' sales tax; and WHEREAS, the Governing Body of the city of Ottawa, Kansas (the "City"), finds and determines that it is necessary and desirable to construct and equip a wastewater treatment plant to be owned and operated by the City and to make certain improvements to the wastewater collection system owned and operated by the City; and WHEREAS, the Governing Body of the City finds and determines that it is advisable to submit to the qualified electors of the City the question of levying a retailers' sales tax in the amount of .1 0% for the purpose of providing funds to pay the cost of wastewater treatment and collection system improvements including, but not limited to, constructing and equipping a new wastewater treatment plant and rehabilitating and expanding the wastewater treatment collection system; and THEREFORE, BE IT RESOLVED, BY THE GOVERNING BODY OF THE CITY OF OTTAWA, KANSAS: Section 1. An election shall be held in the matter prescribed by law on April 3, 2001, for the purpose of submitting to the qualified electors of the City, the question of levying a retailers' sales tax in the City, in the amount of one-tenth of one percent (.10%) to be used for the purpose of paying for. Section 2. If approved by a majority of the electors voting on the question, such tax shall be subject to all applicable state laws and administrative rules and regulations of the Kansas Department of Revenue and the services of the Kansas Department of Revenue shall be utilized to administer, enforce and collect such tax, all in accordance with K.S.A. 12-189. Section 3. The proposition to be voted on shall appear on the ballot as follows: Shall the following be adopted? Shall a retailers' sales tax in the amount of one-tenth of one percent (.10%) be levied in the city of Ottawa, Kansas (the "City"), for the purpose of paying the cost of wastewater treatment and collection system improvements including, but not limited to, constructing and equipping a new wastewater treatment plant, rehabilitating and expanding the wastewater treatment collection system and all things necessary and related to such improvements; provided that such retailers' sales tax shall terminate upon the final payment of any bonds or other debt obligations issued to finance such improvements, all pursuant to K.S.A. 12-187 et seq.? Section 4. The City Clerk is authorized and directed to deliver this resolution and a notice of the election (in substantially the form attached to this resolution) to the County Clerk of Franklin County, 10.02.24 Agenda Pkt Page #28 .. Back to Agenda .. Kansas, who is authorized to and shall give notice of the election, as provided by law, by publishing the _ notice of election once each week for two consecutive weeks in a newspaper of general circulation in the · City, as provided in K.S.A. 10-120, with the first publication to be not less than twenty-one days prior to the date of the' election. The vote at the election shall be by ballot, and the proposition stated above shall be printed on the ballot, together with voting instructions as provided by law. Section 5. This resolution shall take effect from and after its adoption by the Governing Body of ~~ . ADOPTED March 9, 2001. CITY OF OTTAWA, KANSAS ..................,,,,, ---" \ N C ,,, ~-... -/ ~ r~~ ............. o,~ ... . . / . /(4~~ ""~ ······ ···.._v . . . f~.···· c'TY -....~\, Mayor ~eel* I : * 1.1: .~~ -<" f&jA T ) - 0 F- tI. ...."-1* i * •: ,, ! '*.. . . . o··......,. '• ~ • •• I T A ,'4"u ~/ •• *! ...........····••• .r~ , A ~,~...~~J_.-- 2 10.02.24 Agenda Pkt Page #29  Back to Agenda ,. NOTICE OF SPECIAL QUESTION ELECTION TO ALL OF THE QUALIFIED ELECTORS OF THE CITY OF OTTAWA, KANSAS: Notice is hereby given to the qualified electors of the city of Ottawa, Kansas (the "City") that a special question election has been called and will be held on April 3, 2001, between the hours of 7:00 a.m. and 7:00 p.m. for the purpose of submitting to the qualified electors of the City the following proposition: Shall the following be adopted? Shall a retailers' sales tax in the amount of one-tenth of one percent (.1 0%) be levied in the city of Ottawa, Kansas (the "City"), for the purpose ofpaying the cost ofwastewater treatment and collection system improvements including, but not limited to, constructing and equipping a new wastewater treatment plant, rehabilitating and expanding the wastewater treatment collection system and all things necessary and related to such improvements; provided that such retailers' sales tax shall terminate upon the final payment of any bonds or other debt obligations issued to finance such improvements, all pursuant to K.S.A. 12-187 et seq.? The election will be held by ballot at the following voting places, such voting places to serve the following voting district or territories: 1ST Precinct- Trinity United Methodist Church, 630 N. Cedar 2nd Precinct- Trinity United Methodist Church, 630 N. Cedar 3rd Precinct- Courthouse Basement, 315 S. Main 4th Precinct- Faith Lutheran Church, 316 E. 12th sr. (12th & Cedar) 5th Precinct- Faith Lutheran Church, 316 E. 12th st. (12th & Cedar) 6th Precinct- Courthouse Basement, 315 S. Main 7th Precinct- Church of the Brethren, 109 W. 9th (9th & Main) 8th Precinct-:- Westminster Presbyterian Church 401 W. 13th (13th & Maple) The election officer conducting the election will be the County Clerk of Franklin County, Kansas, whose address is 315 S. Main, Ottawa, Kansas 66067. Dated: March 9, 2001. 3 10.02.24 Agenda Pkt Page #30  Back to Agenda 10.02.24 Agenda Pkt Page #31