The Mission Finance & Administration Committee met at City Hall, 6090 Woodson Road, Wednesday, April 11, 2007 at 6:30 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 Shepard.

 

Also present was City Councilmembers Suzie Gibbs, Sue Grosdidier, Phil Perry, and Steve Schowengerdt, City Administrator Mike Scanlon, Assistant City Administrator/Finance Director Laura Gay, City Clerk Martha Sumrall, Deputy Police Chief Mark Sullivan, Community Development Director Martin Rivarola, Neighborhood Services Director Leslee Fonseca, Street Superintendent Jay Webb, City Attorney David Martin, and Bruce Kimmel, Springsted, Inc.

 

ADMINISTRATION – MIKE SCANLON

Legacy Technologies IRB Request and Tax Abatement

 

Mr. Kimmel provided an update on the IRB and Tax Abatement request by Legacy Technologies.  He stated that the IRB request did not raise any “red flags” and that Legacy meets the requirements for issuing IRBs.  He feels the City can go forward with confidence in issuing IRBs for Legacy Technologies.  He did note that the City will need to decide the level of issuance fee that will be charged to Legacy for this issuance and that the Council does have some discrepancy in this issue.  Based on the old fee schedule, they would be required to pay $16,500, but with the new fee schedule the issuance fee would be approximately $52,500.  This is a significant increase and Council will need to discuss this issue relative to Legacy’s request.

 

Mr. Kimmel provided information on his review of Legacy Technologies request for tax abatement.  He did not find any compelling reason to grant this request based on three main factors:  1) it is unnecessary to Legacy’s successful relocation to Mission; 2) the annual abatement request is not cost-effective, in light of approval and/or administrative expenses; and 3) the cost-benefit analysis is not a compelling justification for abatement.  Mr. Ray Barmby and Mr. Mickey Finn, Legacy Technologies were both present at the meeting to provide information and answer questions.  Discussion continued on exactly what product the company produces, the number of employees, if and where sales tax is paid on Legacy’s product, other taxes paid by the company, and franchise fees paid by the company.  Mr. Finn also introduced a business associate from NDK Company in Japan who was in attendance. 

 

Councilwoman Grosdidier recommended that the TEFRA Hearing be placed on the next City Council Agenda.  All committee members agreed.  There will be a TEFRA Public Hearing on the issuance of IRBs for Legacy Technologies during the April 18, 2007 City Council Meeting.

 

Mr. Scanlon stated that he and Mr. Kimmel would like to continue working with Mr. Barmby and Legacy Technologies on the specifics of the IRB issuance to possibly use the sales tax abatement to benefit Legacy.  Councilman Weber recommended that some latitude be given with the issuance fee.  Mr. Kimmel noted that in conjunction with the TEFRA Public Hearing on April 18^th he feels it would be appropriate to consider the Resolution of Intent to issue IRBs for Legacy also at that meeting.

 

The committee recommended that Mr. Scanlon and Mr. Kimmel continue to work with Legacy Technologies on the specifics of the IRB issuance.

 

ADMINISTRATION – MIKE SCANLON

Review of TIF Policy

 

Mr. Scanlon stated that there are several development/redevelopment projects in the City at this time and that this is an appropriate time to review this policy to ensure it is consistent with State statutes.  In September 2003 the City Council adopted Council Policy 106 which outlines the process for applying for and reviewing the use of TIF.  Staff is recommending changes to four sections of the policy:

 

Section 104.B. m – Changes the definition to match current State law.  Parking Structures have been added s reimbursable expenses.

 

Section 104.E.1 – Changes the minimum project size from $1,000,000 to $5,000,000.

 

Section 104.G – Adds an additional section to the “but for” principle to include:  “The Governing Body shall also review the Internal Rate of Return to make sure that TIF revenues are necessary in achieving a rate of return commensurate with the risk and size of the project.”

 

Section 105.B – Changes the application fee from $1,000 to $5,000 in keeping with an increase in the minimum project size.

 

Councilman Weber stated that he is opposed to TIF in any situation and that he will not vote in favor of this policy.  Councilman Schowengerdt requested information on the internal rate of return and discussion continued on this topic to include how it is calculated and its impact on The Gateway Project.

 

Councilwoman Grosdidier recommended that revised Council Policy 106 – Tax Increment Financing be forwarded to Council for consideration.  All on the committee agreed.  This will not be a consent agenda item.

 

ADMINISTRATION – MIKE SCANLON

Gateway Development Agreement – Public Financing/Public Subsidy

and

Interim Financing for Gateway Stormwater and Street Improvements

 

Mr. Scanlon provided the committee with a timeline for review and action on the revised Developer’s Agreement for The Gateway.  It was noted that several meetings on the timeline are “Special Finance Sub-committee” meetings that include Councilmembers Shepard and Grosdidier, Mr. Scanlon, Ms. Gay, and Mr. Kimmel.  These meetings are open, but council was requested to notify Mr. Scanlon if they planned to attend to ensure that KOMA requirements were met.

 

Discussion included upcoming meetings to discuss permanent easements through the site and how these would be established and look in the future.  The committee also discussed the Drainage District and Special Assessment District that are already in place, and their affect on negotiations regarding the Revised Developer’s Agreement.  Councilman Shepard noted that he feels the City is in a better position at this time with regard to the Revised Developer’s Agreement, because we now know what the improvements on the site will cost and the Special Assessment District is in place.  Discussion also included future development in the West Gateway area and whether or not similar problems would be encountered as those in the East Gateway.  It was noted that for project to work, density is needed and that if TIF is not an option for developers, then they must consider reusing existing buildings.

 

No action was required on this item.

 

ADMINISTRATION – MIKE SCANLON

Rental Inspection – Ordinance – Review of Apartment Inspections

 

Mr. Scanlon stated that during the April Community Development Committee Meeting, Councilmember Schowengerdt stated that he does not feel the current rental licensing ordinance is what he voted on in regards to inspection of apartments.  Mr. Scanlon noted that this item was “assigned” to Councilmember Schowengerdt on the agenda since he expressed concern and to clarify that this was not an issue generated by the Mayor.  Mr. Scanlon stated that if Council feels additional changes need to be made to the rental licensing ordinance, it should be done at this time prior to implementation of the program.  Councilman Schowengerdt stated that he does not feel any inspections should be made without the consent of the tenant.  Councilman Perry and Mr. Scanlon stated that “consent” is included in the ordinance and will be obtained prior to any inspections.  Councilman Schowengerdt stated that as long as consent is obtained, he does not have any issues and this was simply a “misunderstanding.”  Discussion continued on the inspection of single family rental units and the extensive timeline for initiating an inspection following three exterior maintenance violations.

 

There was no action on this item.

 

ADMINISTRATION – MIKE SCANLON

Council Policy 115 – Related to the Purchase of Professional Services

 

Mr. Scanlon reported that the City Council, in various actions over the past three years, has been purchasing professional services through the use of Request for Proposals (RFPs).  This process has never been codified or included in City Council Policy form.  The proposed City Council Policy 115 outlines the process that will e used for the selection of outside professionals.  The current method of selection, term and pricing of services has been a question that City Council has asked staff to address and it is hoped that this policy will provide the necessary clarification requested.  It was noted that the policy includes a wide variety of professional services, and Councilmember Shepard encouraged Council to provide staff with additional categories for inclusion as appropriate.  Councilman Schowengerdt questioned whether or not this policy would require the City to always get multiple bids.  Mr. Scanlon again stated that this policy simply takes our current practice and puts it in a policy.  Over the past three years, the City has taken multiple bids on most services and contracts, with the exception of Black & Veatch that has served as the City’s engineering firm for Rock Creek for many years.

 

Councilwoman Grosdidier recommended that the proposed City Council Policy 115 – Purchase of Professional Services be forwarded to council for approval.  All on the committee agreed.  This will be a consent agenda item.

 

ADMINISTRATION – MIKE SCANLON

First Tier Development – Mission Village Development

Street Right-of-Way Vacation

First Amendment Real Estate Contract

 

Mr. Scanlon reported that the City Council approved the Sales Contract with First Tier Development (FTD) for the property at the southwest corner of Shawnee Mission Parkway and Roe Avenue on December 13, 2006.  FTD is requesting that a portion of the Roe Avenue right-of-way be vacated to them so that private setback requirements can be met by the project.  The requested right-of-way vacation would be a total of 14 feet.  Mr. Scanlon stated that Mr. Ho’s (FTD) attorney found this deed restriction regarding the required setback, and that the building and plans will stay the same if the vacation is approved. 

 

Councilwoman Footlick recommended that the proposed ordinance vacating a portion of Roe Avenue adjacent to Lots 1, 2, and 3, Block 2 Mission Village be forwarded to council for approval.  All on the committee agreed.  This will be a consent agenda item.

 

The First Amendment Real Estate Contract was not discussed at this meeting.

 

FINANCE – LAURA GAY

Budget Framework

 

Ms. Gay provided the committee with an updated 2008 Budget Calendar.  She noted that the 10-Year Equipment Replacement Schedule will be discussed at the May 9^th Finance & Administration Committee.  This will allow staff enough time to gather all information and present a complete schedule for consideration.  Ms. Gay requested the committee’s recommendation regarding employee health insurance contributions.  The policy of the City has been to increase the employee contribution by 1.5 annually to a cap of 10%.  We are now at 9.5% employee contribution and Ms. Gay requested direction on whether to continue to budget for a 1.5% employee contribution increase and to set a higher cap.    The committee discussed other possible employee incentives to keep health insurance costs under control.  Ms. Gay noted that a wellness program will be initiated this year.

 

The committee agreed that a 1.5% increase in employee health insurance contributions and an increase in the associated cap be incorporated into the proposed budget.  This policy will be incorporated into the 2008 Budget Resolution for Council consideration and approval.

 

FINANCE – LAURA GAY

Ordinance Authorizing the Issuance of $750,000 Taxable GO Bonds – Series 2007-A

 

Ms. Gay reported that on October 11, 2006, the City Council passed Ordinance No. 1215 authorizing the issuance of general obligation bonds to provide funds for economic development loans.  This ordinance specifically authorizes the issuance of $750,000 in Taxable General Obligation Bones, Series 2007-1 (Mission Pet Mart).  Mr. Kimmel stated that bids will be taken on the morning of April 18^th and then presented to Council that evening for award of sale and issuance and delivery of the notes.

 

Councilwoman Grosdidier recommended that an ordinance authorizing the issuance of $750,000 Taxable General Obligation Bonds, Series 2007-A be forwarded to council for approval.  All on the committee agreed.  This will be a consent agenda item.

 

FINANCE – LAURA GAY

Resolution Prescribing the Form and Authorizing and Directing the Sale of

Taxable GO Bonds, Series 2007-A

 

Ms. Gay stated that this is the second step required in issuing the Taxable General Obligation Bonds, Series 2007-A.

 

Councilwoman Grosdidier recommended that a resolution prescribing the form and authorizing and directing the sale of Taxable General Obligation Bonds, Series 2007-A be forwarded to council for approval.   All on the committee agreed.  This will be a consent agenda item.

 

FINANCE – LAURA GAY

Authority to Proceed to Issue $3,250,000 in GO Temporary Notes, Series 2007-1

 

Ms. Gay stated that this resolution will authorize and direct the issuance, sale, and delivery of $3,250,000 General Obligation Temporary Notes, Series 2007-1 to finance the construction of a new public works facility.

 

Councilwoman Grosdidier recommended that a resolution authorizing and directing the issuance, sale, and delivery of $3,250,000 GO Temporary Notes, Series 2007-1 be forwarded to council for approval.  All on the committee agreed.  This will be a consent agenda item.

 

FINANCE – LAURA GAY

Continuing Disclosure and Arbitrage 2007-A and 2007-1

 

Ms. Gay stated that the City currently contracts with Springsted to provide continuing disclosure and arbitrage services on existing debt issues to ensure the City is in full compliance for the term of the outstanding debt.  This is the same service for 2007-1 and 2007-A issues.  Mr. Kimmel stated that he did not believe continuing disclosure and arbitrage were necessary on series 2007-A as these are taxable bonds.  He will work with Ms. Gay on this issue.

 

Councilwoman Grosdidier recommended approval of an agreement with Springsted, Inc. to provide continuing disclosure services.  All on the committee agreed.  This will be a consent agenda item.

 

FINANCE – LAURA GAY

March Interim Financial Reports

 

Ms. Gay presented the committee with the March Interim Financial Reports.  She noted that sales and use tax are up this month as the result of SBC purchasing satellites.  She also stated that all expenditures are tracking appropriately. 

 

There was no action required on this item.

 

CITY CLERK – MARTHA SUMRALL

Resolution Designating City-Sponsored Festival Events

 

Ms. Sumrall reported that the proposed resolution specifically designates the 2007 City-Sponsored Festival Events, their dates, and times in accordance with Ordinance No. 1172. 

 

Councilwoman Footlick recommended that the proposed resolution designating the 2007 City-Sponsored Festival Events be forwarded to council for approval.  All on the committee agreed.  This will be a consent agenda item.

 

PUBLIC WORKS / COMMUNITY DEVELOPMENT DEPARTMENTS –

STEVE WEEKS, JAY WEBB, AND  MARTIN RIVAROLA

Approval of Sale of City-owned Mowers

 

Mr. Webb reported that the Public Works Department has mowers that are included in the City’s replacement plan that should be sold at this time.  The mowers are a 1995 48” walk behind mower and a 1999 52” stand up mower.  Council Policy requires that a one-week classified ad announcing the sale be published in the Kansas City Star and the Johnson County Sun. 

 

Councilwoman Grosdidier recommended that the City Council approve the sale of a 1995 48” walk behind mower and a 1999 52” stand up mower.  All on the committee agreed.  This will be a consent agenda item.

 

OTHER BUSINESS

 

Councilman Shepard reported that the Northeast Johnson County Chamber will make a special presentation of $25,000 to the Playground for All Committee at the April 18^th City Council Meeting.  This initial donation kicks-off the committee’s capital campaign.  Councilman Shepard encouraged council to provide name of potential donors to the committee.

 

Mr. Rivarola announced the upcoming public meeting on the Form Based Code for the West Gateway that will be held on April 24^th , 7:00 p.m. at the Community Center.  Everyone was invited and encouraged to attend.

 

Mr. Rivarola also announced that Overland Park’s “Vision Metcalf” will hold a public visioning session on May 8^th to address the area adjacent to Mission. 

 

MEETING CLOSE

 

There being no further business to come before the committee, the meeting of the Finance and Administration Committee adjourned at 8:00 p.m.

 

 

 

 

 

_________________________________

Martha Sumrall, City Clerk