Minutes of the Finance & Administration Committee

February 14, 2007

 

The Mission Finance & Administration Committee met at City Hall, 6090 Woodson Road, Wednesday, February 14, 2007 at 5:30 P.M. with Chairman Dave Shepard presiding.  The following committee members were present: Sue Grosdidier, Connie Footlick, and John Weber.  The meeting was called to order at 6:30 P.M. by Chairman Gibbs.

 

Also present were City Councilmembers Phil Perry and Suzie Gibbs, City Administrator Mike Scanlon, Assistant City Administrator/Finance Director Laura Gay, Community Development Director Martin Rivarola, City Clerk Martha Sumrall, Police Chief Randy Wilson, Deputy Police Chief Mark Sullivan

 

FINANCE – LAURA GAY

2008 Budget Calendar – Informational Only

 

Ms. Gay presented the 2008 Proposed Budget Calendar as an informational item.  The budget process will begin in March and culminate with the proposed budget being submitted to the County Clerk on August 20, 2007.  There were no questions on this item.  There was no action required on this item.

 

FINANCE – LAURA GAY

2006 Audit Calendar – Informational Only

 

Ms. Gay presented the 2006 Annual Audit Process / Calendar.  It was noted that the auditors may need to spend additional time for their March field visit because the City’s audit may be more complex with the land purchases made in 2006 in conjunction with the Rock Creek Project.  There were no questions on this item.  There was no action required on this item.

 

FINANCE – LAURA GAY

Debt Issuance Calendar – Informational Only

 

Ms. Gay provided information on the schedule of events for the upcoming issuance of General Obligation Temporary Notes, Series 2007-1which will be used to finance the new Public Works Facility.  It is anticipated that this process will be completed in early May 2007.  There were no questions on this item.  There was no action required on this item.

 

FINANCE – LAURA GAY

Outdoor Pool Fees and Hours

 

Ms. Gay provided background information on the 2006 Municipal Outdoor Pool Report that was recently conducted.  It was noted that pass sales for the pool continue to decline even though after a survey of other area pools, Mission’s rates fall in the middle of the pack.  Also,  the leak in the pool has been isolated and repairs are recommended.  Funding for these repairs would be through the CIP.  It is recommended that the fees for the Outdoor Pool not be increased at this time and that the hours of operation be extended to 12:00 p.m. to 8:00 p.m. every day.  Discussion continued on the staffing rate at the Outdoor Pool and whether or not this could be reduced due to fewer people utilizing the pool.  Ms. Gay reported that the American Red Cross did an audit of the pool staffing and feels it is at an appropriate level.  Councilman Weber requested background information on what previous staffing levels were at the pool compared to current levels.  Ms. Gay will research this information for Council.  Councilman Perry noted that you really can’t reduce the number of life guards based on the number of people in the pool because guards are required on the stands regardless of the number of swimmers.  Discussion continued on the salaries budget for the outdoor pool.  Ms. Gay explained that previously salaries and benefits were split between several Parks and Recreation funds, but that after reviewing this, the Aquatics Supervisor’s salary and benefits are now divided between the Outdoor Pool (40%) and the Community Center (60%) providing a more accurate reflection of his duties.  The committee also discussed possible reasons for the drop in usage at the outdoor pool and noted an aging population, decrease in “sunbathing” for health reasons, new pools in the area, working parents unable to take their children to the pool during the day, and the need for shade at the pool. 

 

Councilwoman Grosdidier recommended that the 2007 Mission Municipal Pool fees, which are the same as the 2006 fees, and extended hours of operation be forwarded to Council for approval.  All committee members agreed, and this will be a consent agenda item.

 

FINANCE – LAURA GAY

Selection of Employee Benefit and Retirement Plan Broker

 

Ms. Gay provided background information on the RFP for these services that was conducted in the fall of 2006.  The City received proposals from six firms and following interviews by a staff committee, the recommended insurance broker is Lockton Benefit Company.  Ms. Gay also noted that the most cost effective contract would be with Lockton being compensated directly by the plan providers.  Councilwoman Grosdidier agreed that this type of compensation was much better than past practices.

 

Councilwoman Grosdidier recommended that the appointment of Lockton Benefit Company as the official broker of record for the City of Mission’s health and welfare and retirement plans be forwarded to Council for approval.  All committee members agreed, and this will be a consent agenda item.

 

FINANCE – LAURA GAY

Retiree Employee Benefits

 

Ms. Gay reported that during a previous discussion of the City’s Employee Manual, staff was asked to develop alternative funding scenarios for retiree health insurance benefits.  A revised policy was provided to the committee for consideration which is similar to that of Overland Park.  The policy would be tenure-based with a requirement of 10 years of service to receive the benefit.  Employees with 10-14 years of service would receive a 25% subsidy of the lowest plan, 15-19 years a 30% subsidy, 20-24 years a 40% subsidy, and 25+ years a 50% subsidy.  Also presented were options for the current retired employees who receive benefits.  Option A would require that the City continue to pay a 50% subsidy for all retirees and eligible spouses currently participating for the remaining years they are eligible.  Option B would reduce annually the 50% subsidy currently being received by retired employees with less than 25 years of service.  The reduction would be phased over the next three years.  Discussion continued on the benefits and requirements of KPERS and COBRA coverage, and how many currently retired employees would be affected by this new policy.

 

Councilwoman Grosdidier recommended that the proposed changes, including the requirement of 10 years of service to receive retiree benefits, and Option B, the phased reduction in current benefits for employees with less than 25 years of service, be forwarded to Council for approval.  All committee members agreed and this will be a consent agenda item.

 

Councilwoman Footlick noted that this policy can be reviewed annually.

 

FINANCE – LAURA GAY

Interim Financial Reports – Informational Only

 

Ms. Gay reported that an outcome of the last City Audit was the recommendation that Council receive “Interim Financial Reports.”  The Council will continue to receive a Claims Summary, but because of the change in dates for the Finance & Administration Committee meeting, this report will be available and presented on the Committee Agenda rather than the Council Agenda.  The Quarterly Treasurer’s Report was also presented.  Ms. Gay asked if the Committee would want to see a reporting of all funds monthly, or continue with detailed monthly reporting of the General Fund.  All agreed that the Quarterly Treasurer’s report was sufficient.

 

Discussion continued on the details of the reports provided.  It was noted that the Parks and Recreation Department has been consolidated into two funds beginning in 2007 – the Outdoor Pool and the Community Center.  There was not action required on this item.

 

NEIGHBORHOOD SERVICES – LAURA GAY (for Leslee Fonseca)

Mission Bank Home Improvement Loan – Revised Contract

 

Ms. Gay outlines the proposed changes to the Mission Bank Home Improvement Loan Program, which include:  increasing the maximum loan amount to $30,000; offer a balloon payment option, increasing amortization to a maximum 10 years; remove limits on types of improvements; allow non-owner occupied, single-family property to participate at a higher interest rate; Mission Bank will work with borrowers with credit scores below 700; and Mission Bank will crease the maximum loan-to-value ratio to 89%.  Discussion continued on concerns with non-owner occupied homes being allowed to use this program and whether or not this would fulfill the intent of the program, which is to improve the housing stock in Mission, and whether there would be an increase in rental properties in Mission.  Councilman Weber expressed his concerns with work being completed using these funds meeting the City’s building codes.  Chairman Shepard suggested that the contract include the requirement that “all necessary permits be obtained” to ensure the work meets current City Codes.

 

Councilwoman Grosdidier recommended that the Revised Mission Bank Home Improvement Loan Program, with the recommended additional wording, be forwarded to Council for approval.  All committee members agreed, and this will be a consent agenda item.

 

NEIGHBORHOOD SERVICES – LAURA GAY (for Leslee Fonseca)

MARC Home Loan Improvement Program with Community America Credit Union

 

Ms. Gay provided information on the proposed program, which includes the following:  maximum loan amount up to $30,000; loan to value ratios up to 110%, support FICO credit scores of 620+; fixed interest rates at 1.25% below average prime for most applications; loan terms up to 120 months; and all property appraised at $200,000 or below is eligible to participate.  Councilman Perry noted that the MARC program will produce the marketing materials but the Cities will be responsible for promoting the program.  Councilwoman Footlick expressed her concerns with the proposed loan to value ratio at 110%, but it was also noted that this program must be accepted as is.

 

Councilwoman Grosdidier recommended that the MARC First Suburbs Coalition Home Loan Program be forwarded to Council for approval.  All on the committee agreed, and this will be a consent agenda item.

 

NEIGHBORHOOD SERVICES – LAURA GAY (for Leslee Fonseca)

Johnson County Utility Assistance Program Allocation

 

Ms. Gay reported that each year the Johnson County Utility Assistance Program asks participating cities to sign a letter of understanding committing funding for their program.  At the end of 2006, 43 Mission households had participated in this program.  The 2007 Budget includes an allocation for this program of $5,200.  Funds from this program that are not utilized roll-over to the next year and there are no administrative fees taken out of this allocation.  Councilwoman Footlick commended the Neighborhood Services Department on their efforts to promote and utilize this program

 

Councilwoman Grosdidier recommended that the proposed $5,000 allocation to the Johnson County Utility Assistance Program be forwarded to Council for approval.  All on the committee agreed, and this will be a consent agenda item.

 

NEIGHBORHOOD SERVICES – LAURA GAY (for Leslee Fonseca)

2007 Easy Ride Contract

 

Ms. Gay reported that the EasyRide service for seniors has seen a dramatic increase over the past two years.  The City of Westwood has dropped out of this program and Johnson County Transit, who oversees this program, is reviewing the program to adjust the funding accordingly.  The City of Mission’s contribution has increased by approximately 10% over the past several years.   Neighborhood Services will now be overseeing this program for Mission. 

 

Councilman Weber recommended that the 2007 Interlocal Agreement for $11,770 between the City of Mission and Johnson County Transit for Easy Ride services in Mission be forwarded to Council for approval.  All on the committee agreed and this will be a consent agenda item.

 

POLICE DEPARTMENT – RANDAL WILSON

Resolution Adopting NIMS as Standard for Emergency Management

 

Chief Wilson reported that the proposed resolution adopts NIMS as Mission’s standard for emergency planning and response city-wide and cements the City’s compliance with these federal standards.

 

Councilwoman Grosdidier recommended that the resolution adopting the National Incident Management System (NIMS) be forwarded to Council for approval.  All on the committee agreed, and this will be a consent agenda item.

 

POLICE DEPARTMENT – RANDAL WILSON

Northeast Animal Control Commission Interlocal Agreement

 

Deputy Chief Sullivan provided background information on this interlocal agreement which has been distributed to all of the member cities for adoption.  The six cities that participate in Northeast Animal Control are Fairway, Mission, Mission Woods, Roeland Park, Westwood, and Westwood Hills.  Councilman Shepard discussed the efficiency of Northeast Animal Control.  Discussion continued on the specifics of animal removal, benefits provided to Animal Control Officers, and the administration of this entity.  It was noted that Northeast Animal Control pays Mission 7% of its budget to house the officers and administer the program.

 

Councilwoman Grosdidier that the Northeast Animal Control Commission Interlocal Agreement be forwarded to Council for approval.  All on the committee agreed and this will be a consent agenda item.

 

POLICE DEPARTMENT – RANDAL WILSON

Ordinance – Concealed Carry

 

Chief Wilson stated that since the passage of a law allowing the carrying of concealed weapons, the public’s response has not been that overwhelming, but that the proposed ordinance authorizes the City to prohibit concealed carry onto city-owned property including the Community Center, parks, and other locations that are not specifically named in the State law.  Discussion continued on the definition of “owners of property,” whether or not Cities “own” properties such as parks, and Home Rule authority.  Councilwoman Footlick requested clarification on how this ordinance will be enforced, specifically at City-sponsored festival events.  Chief Wilson stated that signage will be put in place at all City-owned property, festival areas will be clearly defined and temporary signage will be in place, and that officers will have special training to enforce this.  Councilman Weber expressed his concerns with State law over-riding a City ordinance regarding this issue.

 

Councilwoman Grosdidier recommended that the ordinance establishing prohibitions against the possession or carrying of certain firearms while upon designated property owned and/or operated by the City be forwarded to Council for approval.  All on the committee agreed, but this will not be a consent agenda item.

 

ADMINISTRATION – MIKE SCANLON

Consideration of Tax Abatement and IRB per Council Policy 112 for

Legacy Technologies, Inc.

 

Mr. Scanlon stated that the City has been approached by Legacy Technologies to consider the use of Industrial Revenue Bonds (IRBs) and the possible use of tax abatement per Council Policy 112.  Ray Barnby, of Economic Development Funding, appeared on behalf of Legacy Technologies to provide background information on this request.  Mr. Scanlon reported that Legacy Technologies has submitted a plan for Planning Commission’s approval, and that the company does meet some of the required objectives of council Policy 112 for considering the issuance of IRBs and possible tax abatements.  Additionally, they have paid the required $2,500 fee.  Mr. Barnby stated that this company plans to consolidate its various locations to a new facility in Mission.  Also in attendance were Mickey Finn and Jack Launtz of Legacy Technologies who provided information on the history of the company and the specifics of the product they produce.  It is anticipated that this new facility will employ 110 people, 20 administrative personnel and 90 production workers.  Mr. Finn stated that because they are currently in a leased building and they are on a very tight time-frame for building their new facility.  Discussion continued on the process for this issue. 

 

Councilwoman Grosdidier recommended that this request be forwarded to Bruce Kimmel, Springsted, for further review with further consideration by the Finance and Administrative Committee at their March meeting.  All on the committee agreed.

 

ADMINISTRATION – MIKE SCANLON

Resolution Imposing Transient Guest Tax

 

Mr. Scanlon stated that following the passage of Charter Ordinance No. 17 which enabled the City to levy a Transient Guest Tax, the next step in this process is to pass a resolution which actually imposes the Transient Guest Tax at 6% effective April 1, 2007.  Councilman Weber expressed his concerns with imposing this tax and feels the City may have “jumped the gun,” especially with regards to a hotel at The Gateway.  He also stated that this will have an impact on the rates charged at the Value Place motel which is currently being built.  Discussion continued on whether or not the Transient Guest Tax should be abandoned or imposed.

 

Councilwoman Grosdidier recommended that the resolution establishing a Transient Guest Tax be forwarded to Council for approval.  All on the Committee agreed, but this will not be a consent agenda item.

 

ADMINISTRATION – MIKE SCANLON

 

Update on The Gateway Project

TranSystems Contract for Nall Bridge Inspections

Contract with Black & Veatch for Gateway Services

Contract with TranSystems for Gateway Services

 

These items have been removed from the Finance & Administration Committee and will be presented under “New Business” at the City Council Meeting.

 

ADMINISTRATION – MIKE SCANLON

Update on Red Brokerage Project

 

Mr. Scanlon reported that RED Brokerage will have a report available for Council early next week.  There could possibly be a Special City Council Meeting on February 28^th to make a formal decision on the Rock Creek alignment following RED’s report.

 

ADMINISTRATION – MIKE SCANLON

Financial Planning Software – Springsted – CIP Model and

Stormwater Utility Model

 

Mr. Scanlon reported that this software will assist with forecasting for the CIP and the stormwater utility. 

 

Councilwoman Grosdidier recommended that the purchase of financial modeling software from Springsted in the for the CIP and Stormwater Utility be forwarded to Council for approval.  All on the Committee agreed and this will be a consent agenda item.

 

ADMINISTRATION – MIKE SCANLON

Modification to Council Policy 102 – Expenditure Authorization

 

Mr. Scanlon stated that the proposed modifications to Council Policy 102 would allow the City Administrator to approve change orders in conjunction with the Rock Creek Project for an amount up to $50,000.   Given that the Gateway Storm Drainage Project is both very large and time sensitive, it is important that this change be considered.  Councilman Weber disagreed with the proposed changes to the policy as he feels this is eroding the City Council’s authority.  Discussion continued on the pros and cons of amending the policy and possible scenarios in which it would come into play.  It was noted that this policy would only be used for change orders regarding precast concrete boxes for the Rock Creek Project.

 

Councilwoman Grosdidier recommended that the proposed revision to City Council Policy 102 with the addition of wording to limit this authority to change orders related only to preconstructed concrete boxes be forwarded to Council for approval.  Committee members Shepard, Grosdidier, and Footlick agreed.  Committee member Weber voted nay.  This item will not be a consent agenda item.

 

OTHER BUSINESS

 

Mission resident Nancy Coates requested that the Committee consider reviewing the current animal ordinance to include the “fostering” of animals.  She feel the ordinance needs updating and the City should address issues such as fostering animals, and a more equitable registration process.  Ms. Coates was directed to City Administrator Mike Scanlon for further information on this process.

 

Councilwoman Footlick recommended that the Council consider adopting a “Go Green Policy” and asked for input from committee members.  She also recommended that the Council consider an educational forum to learn more about this issue and possibly appoint a committee.

 

MEETING CLOSE

 

There being no further business to come before the committee, the meeting of the Community Development Committee adjourned at 8:30 p.m.

 

 

 

 

 

_________________________________

Martha Sumrall, City Clerk