CITY OF SHAWNEE
COUNCIL COMMITTEE MEETING
May 16, 2017
|Councilmembers Present ||Staff Present|
|Councilmember Neighbor||City Manager Gonzales|
|Councilmember Jenkins||Deputy City Manager Charlesworth|
|Councilmember Kemmling||Assistant City Manager Sunderman|
|Councilmember Vaught||City Clerk Powell|
|Councilmember Meyer||Finance Director Rogers|
|Councilmember Sandifer||Development Services Dir. Wesselschmidt|
|Councilmember Kenig||IT Director Bunting|
|Parks and Recreation Director Holman|
|Councilmembers Absent||Police Chief Moser|
|Councilmember Pflumm||Communications Manager Breithaupt|
|Deputy Police Chief Orbin|
|Police Major Larson|
|Police Research & Analyst Manager Collins|
|Police Captain Mendoza|
|Police Major Tennis|
|Police Captain Baker|
|Police Captain Brunner|
|Accounting Manager Oldham|
|Public Works Director Whitacre|
|Human Resources Director Barnard|
|Fire Chief Mattox|
|Business Liaison Holtwick|
|Deputy Parks and Recreation Dir. Lecuru|
|Management Analyst Schmitz|
|Battalion Chief Hoelting|
|Assistant Public Works Director Gard|
|Assistant to the Police Chief Greer|
|Police Captain Brim|
|Emergency Manager Epperson|
|SEDC Executive Committee Chair Nunnink|
|SEDC Dir. of Bus. Dev & Retention Bowen|
|Chamber of Commerce V.P. Taylor |
|Visit Shawnee Executive Director Fern|
|Chamber of Commerce Pres/CEO Leeper|
|Chamber of Commerce Chairman Brown|
(City of Shawnee Council Committee Meeting Called to Order at 6:59 p.m.)
A. ROLL CALL
COUNCILMEMBER KENIG: Good evening. Welcome to tonight's Council Committee meeting. My name is Brandon Kenig. I’m a Councilmember from Ward IV, and I’m chairing this Committee tonight. Besides myself, the Committee members here tonight are; Jim Neighbor, Ward I; Eric Jenkins, Ward II; Mike Kemmling, Ward II, Jeff Vaught, Ward III, Stephanie Meyer, Ward III; and Mickey Sandifer, Ward IV. Councilmember Pflumm is absent tonight.
1. BUDGET PRESENTATION - 2017R/2018 BUDGET BY FUNCTION, FORECAST HIGHLIGHTS, 2017R/2018 WORK PLAN, SHAWNEE CHAMBER OF COMMERCE AND VISIT SHAWNEE PRESENTATIONS.
COUNCILMEMBER KENIG: There is one item on tonight’s agenda. It is a Budget Presentation on the 2017R/2018 Budget by Function, Forecast Highlights, 2017R/2018 Work Plan, Shawnee Chamber of Commerce, and Visit Shawnee.
This budget discussion will provide an overview of the 2017R/2018 Budget by Function, Forecast Highlights, departmental presentations, and Shawnee Chamber of Commerce, including the Economic Development and Transient Guest Tax Funds.
We are going to begin with an overview by our Finance Director, Maureen Rogers. We will have a variety of speakers tonight who will introduce themselves. After each presentation, I will ask the Council if there are any questions. And because there is going to be variety and length of presentation as well, Councilmembers are welcome to interject if they have questions that are pertinent to items that are being discussed.
At the end, when we finish all of the presentations, I will ask for public input. If you would like to speak to the Committee at that time, please come up to the podium. I will ask that you state your name and address for the record, and then you may offer your comments. After you are finished, please sign the form at the podium to ensure we have an accurate record of your name and address. Welcome, Maureen.
2017R - 2018 BUDGET
VISIT SHAWNEE, SEDC
[May 2nd Meeting Review slide]
MS. ROGERS: Thank you. Tonight we’ll start out as we did last year with the big picture first. And first of all just kind of review for a moment what we talked about the May 2nd meeting. We gave just a general background of where we were headed with this budget, some of the accomplishments in the past few budgets and where we’re headed with this one, revenue projections, a little bit about the tax lid. We talked about General Fund reserves and then we talked about some things that were going on in some of the other funds.
[Functional Budget - Revenues slide]
This spreadsheet has been split for the slides into three parts, but it’s on page 7 of your packet. And it’s the same document that we presented last year, and it includes all the City’s funds. And it provides the revenues and expenditures by functional area for all the funds. So, we’ll give you that big picture first. On the Revenues, the main story here is the increase in sales tax from Budget 17 to 17R. Part of that is the new Johnson County Public Safety Sales Tax. And some of it is also just increased projection rates for 17R. And then in ‘18 there is projections for -- well, in ‘17, the new sales tax is prorated because we’re not getting it all year. And so we have all of it, or whole the year in ‘18, and then just increased projections. And then we talked about the property tax being able to capture the increase in assessed valuation of around 4.6. So, each of those 17R and 18 went up about 2.8 percent.
[Revenues pie chart slide]
This is the same information in a chart form. Sales tax is 37 percent of the City’s total revenues. Property tax 31, other taxes are 17 percent, and the rest is various permits and transfers in. Taxes make up about 84-85 percent of the City’s total revenues.
[Functional Budget - Expenditures slide]
For Expenditures, I want to stay, if possible, pretty macro here because the departments are going to go take a pretty deep dive into all of this. So, I don’t want to steal their thunder. Something to keep in mind here, it’s a little different than just looking at the General Fund is many -- when you include the Special Revenue Funds and Debt Service, when you see increases or decreases they’re not necessarily -- you don’t think of them just as operating costs. They are project timing a lot of it is. You may notice that the total expenditures at the bottom from 17 Budget to 17 Revised actually went up nearly $6 million, but a fair part of that is due to timing. Like for instance in the Economic Development Fund we had placeholders back in 16 Budget and Revised that were not spent because those areas were not developed yet. And so we rolled them forward into 17 Revised. And they tend to keep rolling forward. And so that makes up part of that increase. And also project timing, like for instance, and Doug Whitacre will talk a little bit more about this, but like the stormwater. There was money that rolled forward and a different approach to that, so not all of that are just budget increases.
[Expenditures pie chart slide]
This is the same information in a chart form. The percentages by function are pretty much the same. Some things have fluctuated a little bit. For instance there was a larger Public Safety in ‘17 than ‘18. Some of that is simply because in Public Works we’ve been saving up for the Flint Street project. And then that’s going to be built in ‘18, so that boosts their Public Works expenditures up. It’s more of that saving up and accumulating and then spending.
[Transfers and Total Budget slide]
Kind of the object of creating, one of the objects of creating this budget is to find that balance between meeting the service demands and being able to maintain solid reserves. And I guess I wanted to point out in actual 2016 we ended up with a surplus of $1.66 million because ended up -- we had a great year in 2016. And then also that’s just kind of how some of the project timing came out. And so you’ll notice there are some negative numbers there in the revenue over expenditures. Some of those are things like those placeholders in Economic Development rolling forward, project timing. And in the General Fund we always show that we’re budgeting for more expenditures than we will actually expend to make sure we have budget authority. And over in this forecast compared to last year’s forecast those deficit positions are decreasing. They’re smaller than they were last year. Some of that is because revenues are coming in better. And then also what we have built in there is on the new Public Safety Sales Tax. A half of a million of that is rolling to reserves.
So, that’s this first part. If you have any questions on this I’d be happy to answer them.
COUNCILMEMBER KENIG: Jeff.
COUNCILMEMBER VAUGHT: Just back on when you look at revenues, if you look at sales tax, have there been any studies done that shows what our -- kind of with Internet sales? You know, and the Internet not collecting sales tax what number, loss number is to us or lost revenue would be? Has anybody kind of thrown out a way to calculate that?
MS. ROGERS: That is pretty hard to -- not really. That’s pretty hard to capture what we don’t really know what we would have gotten or not. I do look at -- we get separate information about sales tax and use tax and I can get an idea of broad trends that are specific to Shawnee. I can see that brick and mortar isn’t growing as fast as online because online is exploding. As far as dollars to our budget online sales are a smaller portion of it. So, it has to go up quite a bit to move it as much as the stores do. And not all stores are equal. Some are performing better than others. And there are all sorts of factors that weigh into that. So, it’s hard to just look at it and always make a judgment, oh, that’s what’s happening. But to your point there is not as far as I know a definitive study on what is being lost. I know that there are more stores all the time that are collecting sales tax than what there used to be. There are still some that are not.
COUNCILMEMBER KENIG: Eric.
COUNCILMEMBER JENKINS: Yeah. Maureen, while you’re up there, I’d just if you would take a few minutes to go over for us the process, just the in-house process where you guys come up with these numbers. I’d just like to review how you deal with the departments. Do the departments generate their budget and float it up? Do you basically give them parameters and float them down? Why don’t you kind of go over that real quick for us and just kind of give everybody a good understanding of that?
MS. ROGERS: Sure. Well, the first place that we start in Finance is with last year’s actual numbers from the auditors so that we know what we’re starting with. And about the same time we’re developing that as the auditors are working the departments are developing their budgets. What we typically do, I’ve worked at places that say, well, you can have an X-percent increase. Typically what we do is we have the departments build a budget, not maybe from scratch because a lot of line items would just kind of be an increase. But what do you need. And over time I would guess compared to other places I’ve been culturally it’s interesting when they come and talk to our budget team there is very little that is asked for that is not, I mean, we can see that it is things that are needed. And there is not a whole lot, if anything, that isn’t, yeah, we can see why that’s needed. It’s probably been needed for quite a while. So, they really pretty much start with their needs. They get together with the budget team, which is the City Manager and Deputy City Manager and myself.
COUNCILMEMBER JENKINS: So, you’re saying it’s a bottom-up budget.
MS. ROGERS: It’s a bottom-up. Yes, exactly.
COUNCILMEMBER JENKINS: Okay. So, they’re generating, and of course they’re building on last year’s. I mean there’s a lot of rigidities built into the budget already where those expenses are already there, staff and so on.
MS. ROGERS: Uh-huh.
COUNCILMEMBER JENKINS: But I just wanted to get a good feel for it. So then when they come up with things in their budget and say we need this and you say, well, you know, they need it, but what if the money isn’t there? So, who does the adjudication process on that when you have a problem with the dollars don’t add up to what the requests are?
MS. ROGERS: Some of it we can look at the staff level and look at maybe the timing, maybe wait till next year or whatever. And then some of it is these lists of unmet needs that are up at your level where we really try to define and document and really explain very well what those needs are. And so the sum of it is that smaller things at staff level and larger things or positions all come to you all if they’re, you know, of any size or full-time.
COUNCILMEMBER JENKINS: Okay. So, the unmet needs, and I suspected that was the case. So, say Chief Mattox says we need that new fire station or whatever and that’s going to -- obviously that’s a significant increase over a previous budget for his department. And so that winds up on an unmet needs or some other schedule or does get built into the budget depending on how the finances work out. But it’s still coming from the bottom up is what you’re saying.
MS. ROGERS: It is. And they all -- all the departments meet with the team and then we -- after that occurs, they’ve entered their budgets into their spreadsheets and then we kind of crunch it all together to see how it comes out with the revenues and with -- and then we have an idea of what will fit and what won’t fit. And then there’s a decision about, you know, how to bring those things forward.
COUNCILMEMBER JENKINS: Okay. Is there ever a point where you have pretty much all your department heads in the room and you’re kind of doing a consolidation of the budget and a cross-leveling between departments? Is there an opportunity to do that?
MS. ROGERS: Well, we -- you might want to address that more than me.
COUNCILMEMBER JENKINS: It’s all pretty much just a one-on-one, the department heads with the budget directors and just kind of working through the process.
CITY MANAGER GONZALES: Most of the department heads bring their whole management team with them too to meet with the budget team. So, we do that first.
COUNCILMEMBER JENKINS: Uh-huh. Sure.
CITY MANAGER GONZALES: And then we have Tuesday staff meetings every week. So, as the budget process is going through we’re talking about the budget every week. Here’s what’s out there. Here’s what revenues look like. Here is what we think we can manage. Here is what it looks it needs to go this year. Here is what might have to wait till next year. So, there is a lot of discussion every week since March about the budget. And then in the end that list of unmet needs and then there’s probably other things that aren’t even on the list. I mean ultimately it’s my decision what I’m going to propose a budget that it’s include based on the feedback from all the different departments.
COUNCILMEMBER JENKINS: So, there’s not really any kind of consolidation of it all in one big meeting. It’s kind of an ongoing process, a week to week as you’re doing your meetings and -
CITY MANAGER GONZALES: It kind of builds on itself and then -
COUNCILMEMBER JENKINS: And, you know, each of these items that are new items get discussed at that time and either move forward or fall by the way at that point by overall consensus or whatever it is. Okay. I just want to get a good feel for, you know, how you’re doing that.
CITY MANAGER GONZALES: And this is the second year that we’ve prepared that unmet needs. In the past, and maybe that was just too long in the past, but we hadn’t brought that forward until last year. And so that’s been really helpful to us to be able to really have that, look at it from a priority standpoint. And so when we’re sitting in a staff meeting and we’re saying, well, we need another fire inspector, but we are so tight in HR we can’t keep hiring people if we don’t staff HR. And so as a group we have those discussions about what’s a priority for the whole organization.
COUNCILMEMBER JENKINS: Okay. I just wondered what the command guidance was, basically how you get your guidance down to them. It seems like they’re bringing theirs up. And I assume you’re putting out some sort of guidance at your level as well saying, okay, guys, here’s some parameters within which we’re going to work this year and try to get this budget together. And like you talked about the new, you know, trying to tie up to those key goals of the community -
CITY MANAGER GONZALES: Uh-huh. Uh-huh.
COUNCILMEMBER JENKINS: -- type of things. That kind of gives us a little more.
CITY MANAGER GONZALES: Right.
MS. ROGERS: And we give -
COUNCILMEMBER JENKINS: I think that helps us out a lot as far as focusing down and bearing down on the issues we want to bear down on. And what do these issues connect to. There’s going to be a connection there where they could enter overall goals and objectives. So, I think we’re on the right track with that.
CITY MANAGER GONZALES: Uh-huh. Yeah. The Priority Based Budgeting has been a really, really good tool for us internally and externally I think.
MS. ROGERS: And we also have some parameters just on basic things like we’re all going to use the same fuel price, the same, you know, rates for utilities and that type of thing. But we don’t ever like assign a percentage increase.
COUNCILMEMBER JENKINS: Yeah. I didn’t know if you assigned a percentage increase or a percentage cap. Say, hey, just don’t come in with anything over this or just some of that kind of discussion.
CITY MANAGER GONZALES: Yeah. We more to set the stage of, you know, this year we’ve got a little bit of room for things, so look at what your highest priority. I don’t like to assign a percent because percent of Paul’s planning budget is very tiny yet he may need a new code enforcement officer that year. And so to me percents don’t work well with prioritization.
COUNCILMEMBER JENKINS: I know.
CITY MANAGER GONZALES: So, we look at what the overall budget is and then the departments prioritize within themselves and then we look at it as a whole.
COUNCILMEMBER JENKINS: Okay. Thanks.
COUNCILMEMBER KENIG: Any other questions or comments from the Council? Mike.
COUNCILMEMBER KEMMLING: So, as an example, one of the unmet needs here is two fire prevention officers. Is that something where the Fire Chief submits his budget with that as an unmet need, or is that part of his budget and staff goes in and says, well, we can’t meet that need this year?
CITY MANAGER GONZALES: Any new positions are not included up front. All new positions come in as a request through the departments. But again, we have so much communication on an ongoing basis I generally know what they all are. We’ve already had those conversations. But, yes, they bring in those, you know, sheets, this is what we need, this is why, here is the data. We all look at it and we go, well, let’s put it together, let’s make sure it’s really complete. And then, yeah, it gets shared and put on the list with all the other unmet needs.
COUNCILMEMBER KEMMLING: Okay. Thank you.
COUNCILMEMBER KENIG: Okay. Thank you, Maureen.
CITY MANAGER GONZALES: Mr. Brown, are you up?
COUNCILMEMBER KENIG: Welcome, Brian.
MR. BROWN: I have a real quick administrative question. In order to advance the slide, do I just use the mouse?
MS. ROGERS: Yes.
MR. BROWN: Okay. Thank you.
Shawnee Chamber of Commerce Corporation
2018 Budget Request
MR. BROWN: Okay. So, this is a very efficient presentation. If you have any questions, just please let me know. I aim to please. Thank you very much for allowing us to come and present to you tonight. My name is Brian Brown. I am the 2017 Chair of the Board of Directors for the Shawnee Chamber of Commerce.
(Off Record Talking)
MR. BROWN: So, as I mentioned my name is Brian Brown. I’m the 2017 Chairman of the Board of Directors for the Shawnee Chamber of Commerce. As always we appreciate the relationship we have with the City and thank you for letting us come and report some of our successes over the year in both tourism and economic development and share with you what we have on the future.
[Mission Statement slide]
Really quick, just to kind of let you know the purview of what we’re focusing on as the Chamber, our Mission statement and Vision statement, and then our six core strategic areas that our core focus and core function is wrapped around of which we’ll speak directly of those two, being economic development and tourism.
[Governing Structure slide]
Ultimately, the Chamber is comprised of three different operations. The overall Chamber organization is the actual umbrella company, then we have two separate divisions, which is the Shawnee Economic Development Council as well as the Visit Shawnee group. The Visit Shawnee group was ultimately changed recently from the Shawnee Visitors and Convention Bureau to Visit Shawnee for a much more modern branding.
[Board of Directors slides]
This is our Chamber leadership team. So, of our board of directors we have our executive committee, which is myself, Mr. Dennis Monahan, Ms. Heidi Thummel, Mr. Tim Deves and then Linda Leeper, who is also the President and CEO of the Chamber at this time. Of that, this is the group that compromises our board of directors.
[SEDC Executive Committee slide]
And then for each division we have executive committees that will provide oversight and leadership. So, here is the executive committee group for the Shawnee Economic and Development Council, which is led by Leo Nunnink who is the chair of that group.
[Visit Shawnee Advisory Committee slide]
And then for our Visit Shawnee we have JoLynn Brosnan who is the chair of that very robust group as well. As you can see many of the organizations there.
At this time I’d like to introduce Mr. Kevin Fern, who is the Executive Director of the Visit Shawnee division. Mr. Fern.
MR. FERN: Thank you, Mr. Chairman.
Annual Report - 2018 Visit Shawnee
MR. FERN: It’s always a pleasure to be able to come before you each year and give a little bit of a report of what we do. It seems to be going off here again. So, I did want to thank JoLynn Brosnan, my chair for joining us tonight and being here with us.
[Strategic Objectives 2017-2019 slide]
So, the first stop is our Strategic Objectives for the next two years. Basically, you know, those are -- I’d like to say -- it’s doing the same thing, Stephen. I don’t know what’s up.
MR. FERN: While he’s fixing that, Strategic Objectives are obviously overall what guides us every day. I like to say to be very simple about it that I like to say it’s basically heads in beds. That’s first and foremost. We like to obviously we’re limited by the guest tax and so, therefore, I think my first priority every day is to figure out how we can put more people in our hotels. That’s what funds us and that’s what’s most important obviously on a daily basis to what I do.
Okay. So, obviously economic impact, tourism, that’s first and foremost there. Building upon our community brand equity through innovative marketing communications, take an active leadership role in organizations regional and statewide that promote tourism. Work in partnership with the SEDC and recruitment and development of additional hospitality-related industries, and identify new markets that increase occupancy rates for our hotels.
[2016-2017 Accomplishments slides]
Accomplishments in 2016 and ‘17. We launched our new website and completed our branding transition from the Shawnee CVB to Visit Shawnee. And I’d like point out on that particular issue that all the other communities locally, I know I talked to Olathe and Lenexa and everyone. Everyone seems to be moving in that direction. So, I think that was us meeting the first step and having done that was -- I’m pretty proud of that accomplishment.
So, serving as a committee member of the feasibility study for the Mid-America Sports Complex, which was conducted. And in part of that I had to put together a lot of extensive research on hotel inventory, the performance, future development plans. And all that will be used in the final report which I believe will be before you soon.
Establishing a monthly GM Roundtable with all the hotels. With the new hotel coming online this year and with two more in the future that’s with the Chairman and myself where we sit around and we basically have lunch, share inquiries about bookings, about just generally fostering cooperation and how we can work well together.
Continued to work with the Comfort Inn and Fairfield Inn under construction on any issues that they’ve had. And then we’ve also begun the initial discussions on how we’re going to market those properties. Obviously they’re a little bit of a different price point than some of the properties we’ve had. And so there’s going to be some additional things that we’ll be needing to do there.
I’ve continued my leadership role in state-wide and regional travel and tourism associations and organizations and marketing co-ops. It’s very important to us with a limited budget that cooperation between surrounding cities regionally and as well as state is very important to how we do our marketing.
I assisted in the production of the Visitors Guide that is a section of the Shawnee Magazine.
And I hosted hospitality tent at 11 community events.
I also attended the National Association of Sports Commissions and their Event Symposium, which the Parks & Recreation Director went with me this year. We had 17 appointments with events owners and basically all about talking about future and potential tournaments that we could host.
I planned and hosted the 9th Annual Shawnee Tourism Celebration last week in conjunction with National Travel & Tourism Week.
And then on a daily basis we fulfilled 315 direct requests for visitor and relocation packets and about 5,400-plus requests for information and other promotional materials.
[2017-2019 Action Planslides]
So, we look to the future. Continue to provide assistance and research about the Mid-America Sports Complex as we finalize that and we find the recommendations are formalized to bring before you.
Emphasize use of social media channels to market events and promote Shawnee to visitors.
In the next year we’ll have 145 additional rooms that will go online in our hotel inventory and the demands will be intense for us to significantly increase our efforts to capture markets that we haven’t necessarily gone after in the past. And so we’ll obviously need some additional as we talk here in a minute about how we’re going to go after that.
The three targeted markets we have identified because they have the greatest potential for us based upon our geographic location where we are in the metropolitan area and the type of inventory we’ll have in rooms are sports, group tour and leisure.
And all three of these though will require significant amount of resources in order to capture when you consider the highly competitive environment that we operate in.
Sports - Statistics show that 85% of all tournament business is booked at marketplaces and trade shows. As I mentioned, Neil and I went to one of those. There’s about four of those a year. So, we have to look at how we’re going to increase our presence at those type of events.
Group Tour – Group tour is all basically too is regional tour operators go to a lot of trade shows. Bank, travel bookers go to trade shows. Those are one of those markets that we haven’t really pursued a lot in the past because of the price point. And with obviously additional price points adding into our market, we’re going to have to look at how we more aggressively look to those.
And the last is Leisure, which is kind of general. But basically the big thing with leisure anymore there’s all kinds of technology out there, digital and online platforms anymore. And I’m sure we all see it. It’s like if you, you know, look for a hotel room when you’re driving down the interstate basically, you know, now and you go and look at your Facebook page and it’ll pop up, you know, a Courtyard or whatever. And those type of things are all out there, but they take some resources to develop. And we need to begin looking at how we move into that market and doing those kind of things. So, I think that’s basically my presentation. Any questions?
COUNCILMEMBER KENIG: Any questions from the Council for Kevin? Okay. Thank you, Kevin.
MR. FERN: Thank you.
[Transient Guest Tax slide]
CITY MANAGER GONZALES: And I’m just going to jump in the middle to look at the Fund Forecast related to the Visit Shawnee budget, which is the Tourism Guest Tax, Transient Guest Tax Fund, Fund 210. 2016 was the first year that we had almost a full year of the Holiday Inn Guest Tax and so the budget did increase in ‘16 and a little bit into ‘17. So, that’s the revenue side.
[Transient Guest Tax Fund - Highlights slide]
As you all know we have a practice of not including hotels in our forecast until they are actually online. So, the two new hotels are not reflected in the forecast at all yet.
We have, as Kevin talked about with the new hotels, there’s additional marketing to be done with the sports and technology needs, so we are recommending an increase of $15,000 plus a small market cost of living increase to the ‘18 Budget to 201.
Last year, maybe it must have been ‘16, we actually increased the Old Shawnee Days budget to $35,000. So, we are recommending that again. Several of you all suggested not to fund the Wonderscope this year based on their decision to leave, so I have pulled that out.
In ‘17, we funded the $40,000. That was really kind of what we used the new hotel tax, the Holiday Tax addition for the study on the Mid-America Sports Complex. Kevin talked about that a little bit. We did get a preliminary look at it just last week. We’re going to spend some more time mulling it around and then we’ll bring that to you in maybe a joint meeting with the Park Board to talk a little bit more about options related to that. We plugged in a placeholder of $40,000 more in ‘18 just because we may need to do some more due diligence. The study does indicate there is certainly a market for that facility. Unfortunately it’s not in great shape, but it doesn’t have a lot competition right now. So, I think there’s some really serious issues, good issues to talk about what we would like to see, what the Park Board, what the County Commission would like to see. So, we put a placeholder in there of $40,000 just to help cover what costs might come of that due diligence.
And then the remainder of the funds gets transferred into the General Fund to help offset the cost for Shawnee Town 1929.
So, any questions on those?
COUNCILMEMBER JENKINS: What kind of [inaudible; talking off mic.]
CITY MANAGER GONZALES: Revenues over expenditures. We try -- actually it’s kind of deliberate. We try to keep that fund balance at a certain level and it had gotten actually a little bit high with the new revenue. And then the $40,000, those two negatives are actually related to that softball study also which we think are one-time expenses and not ongoing expenses, so. Okay.
COUNCILMEMBER KENIG: Thank you, Carol.
CITY MANAGER GONZALES: Let me introduce -- who’s up first? Brian is up first?
Annual Report - 2018 Budget Request
Shawnee Economic Development Council
MR. BROWN: At this time we’ll move onto the next division of the Shawnee Chamber that we’ll review our outcomes and talk about our future work plan. For that presentation I’ll have Eli Bowen who is the Director of Business Development and Retention for the Shawnee EDC as well as Leo Nunnink who is the current Chair for the Shawnee EDC. Thank you.
MS. BOWEN: Thank you, Mr. Chairman. Thank you to the Councilmembers who are having us here to join you this evening. I’m going to give kind of a brief update of what we accomplished and what we’re working towards in the 2016 year. And then I’m going to invite the Chair of the SEDC committee to come up and talk a little bit about priorities moving forward for the Shawnee Economic Development Council.
[Strategic Objectives 2017-2019 slide]
Kind of start with a quick reminder, a reminder of the objectives that we strive for in the SEDC. Of course, first and foremost we’re out there every day marketing the City of Shawnee, the advantages, the business climate, both on a local and a regional level, and then also at a national level. Sometimes we get into the international level with membership and organizations like the International Economic Development Council and Select USA that we’ve been a part of in the past.
We work to broaden the tax base by attracting new commercial development here and then also quality employment opportunities, both for existing Shawnee residents and then bringing in kind of that travel into the City as well.
In addition to attraction of new companies, of course a major focus of ours is retention of existing companies. Not only making sure that they have everything they need to be successful in Shawnee, but working with them to expand, whether that be employee-based or a new capital investment, either within the City or adding to their existing facility. We’ve also worked with them in the past on things like increasing or exporting through the World Trade Center program or the Small Business Development Center based out at Johnson County Community College.
And finally we are working always to provide value and connections for our private investors. We have about 70 private investors for the Shawnee Economic Development Council. Those are filtered up through the Shawnee Chamber and provide a very strong private investment and engagement base for us at the private level.
[Metrics - Attraction Prospects Opened slide]
I’m going to go through a few slides just on some metrics of what we’ve accomplished in 2016. There were 50 attraction prospect files opened in 2016, which you can see is a little bit higher than both ‘15 and ‘14, which is of course positive. How we quantify these is a little bit different. Of course we’re getting calls and we’re making calls each and every day trying to sell. We don’t quantify them as an attraction prospect until there is that one-on-one communication with the consultant or the business owner, or until we’ve actually been out there and provided a service, toured with them on the real estate, done something quantitative for this project. So, the day in, day out calls that are, you know, very preliminary are not included in these figures.
[Metrics - Prospects by Type of Industry slide]
Of the 50, this is kind of a mix to show the mix of industry that we’re out there talking with and working with. In comparison to last year you can see that Office on the left-hand side is quite a bit elevated. That’s due in large part to new product with the Stag’s Creek development. That was a big success for us especially with needing more Class A and kind of mixed use office space in the eastern portion of our community. So, of course, with that new project we’ve been out there pushing the office prospects where we didn’t have anywhere to put them necessarily before. We’ve also continued to have some interest in the vacant Shawnee Crossings building, which is shown there as well.
And another significant increase would be in Other Industrial, kind of light industrial and manufacturing. That’s been beneficial to have Westlink Building 2 that was completed in 2016, and is now 88 percent full, and they’re working on Building Number 3. So, that’s been a huge asset for us and I’ll kind of get into some of those figures on the next slide further down.
[Metrics - Prospects by Lead Source slide]
This chart talks about where we get our leads from. Of course we’re out there making connections and making calls every day. You can see the middle line there as the commercial broker. That’s a very important group of individuals that we spend a lot of time out there networking with some of the industry leaders. We strategically place ourselves in positions of marketing, things like the SIOR, the Society of Industrial and Office Realtors. We’re very active in that sector as it’s attracting basic employers to the City of Shawnee. We’re constantly looking for new and relevant professional networking events, going on consultant trips, whether that’s with our local or regional partners, things of that nature. We work very hard to make those relevant connections that are going to filter leads back to us for the City of Shawnee.
One other that I want to point out is the Kansas Department of Commerce. You’ll see it dipped quite a bit in 2015. I’m happy to report that in ‘16 that was increased. And actually in ‘17, we’re already almost to where we were for the whole year of 2016 with legitimate project leads from them. I think that’s a product of the Department of Commerce starting to filter maybe some of those resources back into the business development professionals that maybe were not there and not accounted for in 2015. So, that’s good to have them back as a strong lead source and strong lead partner.
[2016 - 2017 Accomplishments slide]
Like I say, we manage 50 attraction and 10 retention and expansion projects. Many of those are still ongoing and will continue to be ongoing through ‘17 and even into ‘18.
Of the successes in 2016 we saw about 215 new jobs, $10 million in new annual payroll from those jobs and $30 million in new capital investment.
On the private kind of operational side we hosted five SEDC membership events. That’s anywhere from talking about industry trends. We’re working on one for this year that we’ll be promoting specifically Westlink and kind of talking about the new e-commerce and that market. So, it’s really a way for us to educate our members and also to attract our attention back to what we’re doing at the SEDC here in Shawnee.
And then as part of that retention goal we hosted an employee appreciation event for 325 FedEx employees. Obviously that is a major employer here in Shawnee and someone that we want to support as much as possible as they’re trying to keep up with the need for drivers and other employees out there.
[Accomplishments & Advances in Commercial Development slide]
This slide talks about our accomplishments and our advances in commercial development. I would say the top five are on the accomplishment area and then the next three would be in the kind of advancement area. I’m sure you’ve all driven by the Federated building out on Renner Road. That’s very exciting. It’s a headquarters for us. They’re bringing about 60 new jobs, a $14 million investment and a new commercial office building. It’s visible off 435, which is always very good for selling the community.
I talk a little bit about Westlink, but I’m sure you heard the announcements on two very well-known tenants that are taking over 88 percent of Building 2. That was Amazon for a distribution center, and then Entrematic. It’s a subsidiary of a Swedish company, Amarr Garage Doors. Entrematic is bringing about 60 jobs. Amazon we haven’t received the final number from them, but it’s upwards of a hundred new jobs to the community. So, great projects. There’s 20,000 square feet left in Building 2. Building 3 is already under construction and we anticipate that being ready for occupancy in the fall of this year. So, like I said a huge asset has allowed us to really attract a lot more of the upcoming distribution projects and, you know, the e-commerce industry is going to continue to boom. So, it’s great to have product that’s available to serve those projects.
Stag’s Creek, I mentioned that. That’s moving along. As you can see it every day as you drive up and down Shawnee Mission Parkway. Leasing for that and the interest in that is going well. So, we’ll just kind of track that as it continues to go up.
The same with Westglen and B&B Theaters. Sales are booming over there. It’s been labeled as one of the nicest B&B Theaters in the region. I continue to hear great things about that every day from residents and others that are coming into the community for that attraction.
And then the Shawnee Crossings VA project which is going out west. Twenty new jobs with this project all at an average salary about $100,000. So, great for the community not to mention the added benefit of additional veteran services here in Shawnee. So, that project is underway out in the Shawnee Crossings area.
And then to touch on three that are more in the advancement and commercial development. Of course Westbrooke Village was finally up for auction and is under the new ownership of Mission Peak Capital. Both City staff and the Shawnee Economic Development Council are in continuous conversations with them. Just kind of working through what is the best use for that site for the City of Shawnee. So, kind of stay tuned for that.
Of course Eco-Commerce Business Park is I think key moving forward. If you look back a couple slides the KCADC project leads were down over last year. I think that’s simply because a lot of them are large in nature and we simply don’t have the shovel ready, you know, sites or available product to help fulfill those needs, which is good and bad. Low vacancy is always a good thing, but need to continue to work to develop the additional, you know, resources that we’re going to need there.
And then Bellmont Promenade, back and forth, and I think we’ll hear more on that June 6th. So, but it is continuing to progress.
At this time I’m going to invite the Chair of the SEDC Executive Committee Leo Nunnink and then we’ll be available for questions after.
[2017 Economic Development Summit - Strategic Priorities slide]
MR. NUNNINK: Thank you, Eli. I’ve enjoyed working with you so far this year and working through some of these issues. You’ve done a good job of laying out what I’m going to go into probably in a little more detail as far as taking the priorities that came out of a summit we had back in January and reading through some details as far as what task we have ahead of us that came out of that meeting. So, let’s see here.
[Priority #1 - Increase mixed use development slide]
Okay. So, what you see on your slide is the Priority Number 1, increase mixed use development. And then the primary bullet points that are there for 2017 and ‘18. What I’d like to do is kind of fill in some of the progress that has been made to this date at the task force. A task force of ten individuals has been established to ensure this priority continues to progress. The task force members are involved in various capacities within Shawnee including the Council, the Planning Commission, City staff, the Shawnee EDC, development professionals and local business owners.
The task force has met three times since January and has identified six potential sites for mixed use development in Shawnee. The task force is now in the progress of gathering complete site analysis information including existing planned infrastructure, site opportunities and challenges, ownership information and best potential uses for the land. This analysis will allow the task force to create a clear picture and vision for each of the sites that will help Shawnee EDC market the commercial development community and will ultimately lead to active mixed use development. And I think we all agree that’s something that’s been bantered about quite a bit and I think is clearly a priority that we’re all focused on.
[Priority #2 - Identify and construct the infrastructure needed to entice and support additional commercial development slide]
So, moving on to the Priority Number 2. And some of these are a little more heavily weighted with the EDC and the staff. But Priority Number 2, as you can see there, identify and construct infrastructure needed to entice and support additional commercial development. Progress to this date, infrastructure investment and development for the targeted sites will coincide with development activity and priority sequence as established by City leadership, the Shawnee EDC and the commercial development community. Most importantly, proactively working to produce shovel-ready sites. I think it’s been mentioned. I mean that is very, very important in the development community. In working with developers that’s probably one of their top two or three questions they’re going to ask you when you start meeting with them and talking to them about the big picture. They want to know what’s available now. And they want to have a sense if it’s not available now, how ready are you to perform and get those sites ready. So, that is very, very important.
City staff will continue to update the SCIP based on need and priority of target at commercial development sites. And I know I’m going through a lot of interesting detail here, so please stop me and ask any questions. I will try to answer.
[Priority #3 - Create the most streamlined planning and development process in the area slide]
Third priority. Progress so far is City staff is currently in conversations with the local development community as well as other municipalities to gather input and evaluate options for a more streamlined process. And that just sounds good, a streamlined process. So, hopefully we can accomplish those things in working with the development community and to bring some more ideas and opportunities to the City.
[Priority #4 - Secure a significant impact development along the I-435 Corridor slide]
Okay. Number 4. Progress to date is it is our understanding as of the 2018 budget City staff is recommending a study to examine the intersection at the southwest corner of Johnson Drive and 435. We know anything along 435 is very important to I think the development of the City. It is certainly a corridor there that is obviously highly visible, a lot of land. It may have some challenges as we all know, but challenges are opportunities as far as I’m concerned. And I think that’s very, very important. Shawnee EDC will request that as part of this study options for access to the northwest corner of Shawnee Mission Parkway and I-435 be included in that study as well. And I believe that’s commonly known as the Hodgkin property. And next, establishing and implementing a plan to assess a targeted site to critical, successful marketing and obtaining a significant impact project along the stretch of 435.
I mean as the City has grown over the years and developed and moved west, 435 clearly is an area that it will continue to be an area of focus for many, many years to come.
[Priority #5 – Make EcoCommerce Business Park shovel ready slide]
And the fifth priority, as you can see they’re making EcoCommerce Business Park shovel ready. That’s been discussed before. On March 27th, the City Council approved an agreement with Johnson County for the commission of a sanitary sewer improvement study for Cedar Mill Watershed which serves the EcoCommerce site. And that was a, I think a really critical step in moving that project forward. GBA architects and engineers is currently administering the study with a completion date by the end of June of this year. The Shawnee EDC has partnered with an experienced development professional to provide insight in connections with the regional and national development community. Shawnee EDC and City staff continue to meet with local and regional development groups to obtain input for updating the vision based on existing future market trends. Once this study is completed the Shawnee EDC and staff will meet to establish a plan moving forward.
In summary, before I -- I did not advance the slide and get things out of order here. You know, I believe there is a lot of opportunities in our city right now. I think we’ve, you know, we’ve gone through some changes, but we think we certainly are primed and can take advantage of what’s going on throughout the metropolitan area. And I look forward to working with all of you on the Council and as well as obviously the members of the staff of the City and the Chamber of Commerce. So, thank you for the opportunity.
COUNCILMEMBER KENIG: Thank you. Questions or comments from the Council?
[Shawnee Chamber of Commerce Corporation’s Organization Shift slide]
MR. BROWN: So, as I come up to wrap up the presentation from our organization, it’s been a busy year this year. It’s been very busy this year over off 67th Street. And as I came into leadership, I’ve been with the Chamber for leadership for the last three years. As I took over the chair this year, there was a lot of discussion as to what the future focus of what the Chamber should be moving forward. We had a very good robust meeting on January 19th with several community stakeholders. I want to say upwards of 60-plus that showed up for the Economic Development Summit. And around the discussion of the priorities Mr. Nunnink had just shared with everyone basically revolved around the target of and being and this is what drills down to what the mission really is, is how do we get closer to that 30 percent tax base. How do we take some of the tax pressure off the residents to be able to have the necessary services that they need. So ultimately as we know from the relationship that we share with the City, economic development can help be a solution in that equation. So, with that there has been several -- there has been lots of dialogue that’s taken place. We over at the chamber went through an exercise where there was a task force that was commissioned back in February of this year to review the feasibility and functionality of the organization of what it has been, what it currently is and what it needs to be moving forward relative to the focus and the core functions that we provide. From that there is a decision and recommendations that were made and weighed against stakeholders as well as to what the potential of the future of the organizational structure needs to look like.
And so on the 8th of January there was a meeting of the Board of Directors. And what we have done is we have restructured the organization effective March 8th to move from a primarily member services support contracting in managing the economic development contract as well as the tourism contract to have a primary focus and function of being economic development. And this has been, once again an outcome from the exercise of A, visiting with what’s important to the City. We’re providing a service to the City with regards to executing the contract for you. And so based on the priorities that were communicated by Mr. Nunnink this is something that needs to be wrapped around so we can actually quantify not just the activities and accomplishments that Ms. Bowen had shared with you, but those things that are important to the community as a whole as well as you the Governing Body.
[Shawnee Chamber of Commerce Corporation Organizational Chart slide]
So, what we’ve done at this time is we’ve restructured the organization to have where we had a President, CEO, then had the directors of both the Visit Shawnee division as well as the Economic Development division reporting to the CEO to align it as such to where the Economic Development Director will now become the CEO/ President of the organization. With that, they will move and shift from a focus of being a hundred percent focused in economic development to an estimated 75 percent focus in economic development and 25 percent focused in managing the purview of the Chamber.
If you’re familiar with other area chambers of commerce this would be very similar to the structure that say Olathe has where Tim McKee is the Economic Development Director as well as the CEO/President, where Brad Cornell also operates as the COO and oversees the function of the chamber operations. So very similar, but obviously different because of scale and geographic location. Currently we’ve gone through a process that after the board has approved the structure we initially moved to commission a search committee that exists of six individuals. Many members that sit on the executive committee as well as City Manager Gonzales have been working very diligently. We have identified and vetted out several executive recruiting search firms. We went through the process, weighed and evaluated which ones would be most effective in understanding and meeting the needs that we have to satisfy who that individual is, which by the way we’re going to be very remiss. Linda Leeper who has been the leader for the Chamber for the last 17 years and been on the board five years prior to that has announced her retirement. So, we’re going to be losing a tremendous leader sometime this year. We will miss her. She’s had a great impact in this market. And so with that we had a somewhat bittersweet task to be able to try to figure out what this looks like moving forward. So, with that towards the end of March we identified who the recruiting firm is which is EFL, which is a subset of CBIZ here. During the time we met with the organization we outlined the parameters of what we’re looking for, identified a short list of individuals we thought would be appropriate, gave them the mission to not just limit your search. They are looking nationally as well locally for who this dynamic individual will be. Ultimately knowing what is important from the identified priorities that came from the summit as well as those that are wrapped around the Chamber’s strategic plan are very important in defining what the talent’s roles and goals of this individual will be and matching the individual relative in assessing what the needed skill set will be to execute the Chamber plan moving forward.
So, with that we are in the process now to where we will get to the point of sitting down and looking at candidates at the beginning of June going through the interview process. And we are very optimistic that by the end of June we’ll have an offer to be able to be made. At which time if this individual requires a 30-day notice we are, knock on wood, if this wood, not composite wood, are speculating we could have the leader identified and on board by the first of August.
So with that, if you look at the organizational chart, one of the things you’ll notice that’s very different, if you look under SEDC, the executive director, you’ll two SEDC FTEs that have been identified currently. We are slated to have an executive director and a business development director and also a retention specialist. What we would do is we would add an FTE to make our economic development services more robust. Ultimately if you do the math we have one -- we currently before we made the change have one director, one business development person. So, that’s two individuals dedicated a hundred percent to economic development. With the shift that we make that technically will become 1.75 because that executive director/CEO/president will have some responsibility to manage the overview of the Chamber.
So, in order to make the services more robust we know that the market is very timely. We are happy about the shift that we’re making. We see a lot of opportunity out there on the market. We know that there is density that is coming to Shawnee as well. There are a lot of rooftops that have been slated to be built which means more residents which means more demands. So, as being a partner to the City we’re very, very happy and eager to meet that need moving forward. Ultimately we know we have to have the capacity and capability to meet the need of what’s going to happen. And we feel that with having the ongoing discussions that we’ve had, and there have been a lot of discussions over the last five to six months. This structure will help us be successful in meeting that need.
So, with that, I thank you for your time tonight and I will open the floor and entertain any questions for me and my team at this time.
COUNCILMEMBER KENIG: Eric.
COUNCILMEMBER JENKINS: Yeah. Just a couple things. You talked about getting us to that 30 percent level.
MR. BROWN: Yes, sir.
COUNCILMEMBER JENKINS: And I was just curious at what level are we at now so I kind of get an idea if you’ve got to go from here to here.
MR. BROWN: At this point in time, Carol, do you want -- I’ve heard of range, but I don’t know specifics.
COUNCILMEMBER JENKINS: Yeah. I assume it’s not going to be an exact figure.
CITY MANAGER GONZALES: 26.1.
COUNCILMEMBER JENKINS: Pardon me?
CITY MANAGER GONZALES: 26.1.
COUNCILMEMBER JENKINS: Oh, okay. We’re pretty -- not that far off.
MR. BROWN: Yeah.
COUNCILMEMBER JENKINS: So, it sounds very doable. The other item I was just wanting to talk about that was that -- you talked engaging -- you engaged with over 50 different potential I guess businesses to come in here this year, that one slide that showed your level of activity being at 50.
MR. BROWN: Yes, sir.
COUNCILMEMBER JENKINS: And I was just kind of curious, okay, we’re doing 50, but out of that what was the end result? Where do we go with that? I mean that certainly that gives you an idea of a level of activity.
MR. BROWN: Certainly.
COUNCILMEMBER JENKINS: But what was the level of success at that point?
MR. BROWN: And I think that’s a good question. To answer your question specifically I’d like to bring Ms. Bowen up to actually address that specifically if I can.
MS. BOWEN: That’s a hard metric to quantify simply because a lot of the larger developments take much longer than 12 months. So, some of the successes we saw in 2016 were a product of probably originally marketing that project back in 2014. So, certainly we did not have 50 successes.
COUNCILMEMBER JENKINS: I’m sure of that, yeah.
MS. BOWEN: -- of the 50 attraction projects opened. I would say -- I can get that specific information for you of what that percentage was in ‘16.
COUNCILMEMBER JENKINS: Yeah. I was just trying to get a general idea of how, you know, success rate. Okay. We work our tails off. We go out and identify 50 of them and we’re working with these folks and everything. And okay how far do we get with this.
MS. BOWEN: Sure.
COUNCILMEMBER JENKINS: I mean just kind of get a feel for that. I know that numbers can’t be exact because as you well pointed out. Obviously some of these things take years before you bring them to fruition.
MS. BOWEN: Right.
COUNCILMEMBER JENKINS: But just trying to get kind of a feel for it, I guess a sense of what our success rate is with that. So, if you could help with that that would be great.
MS. BOWEN: Yeah. And I could certainly get you some concrete information. Standing up here guessing I would say of the 50 attraction projects that were opened half of those I would say are still ongoing. I would say a quarter of those have dropped off due to lack of available real estate or, you know, going elsewhere. Certainly the metropolitan area is very, very competitive, not only in Johnson County but on the Missouri side as well. So, certainly our goal is to bring all those projects to a success, but continuing to fill up that pot simply kind of the law of numbers.
COUNCILMEMBER JENKINS: No. And I’m not putting you on the spot to say.
MS. BOWEN: Sure.
COUNCILMEMBER JENKINS: -- wow, show me a hundred percent of this.
MS. BOWEN: Yeah.
COUNCILMEMBER JENKINS: That’s not going to happen.
MS. BOWEN: Yeah.
COUNCILMEMBER JENKINS: I mean let’s get realistic here. But I’m just trying to get a feel for how well are we doing competitively within the metropolitan area and battling for these folks to come here with others. Are we landing five percent of these or are we, you know, I just kind of -- it would be just kind of nice to know that.
UNIDENTIFIED SPEAKER: Five to ten.
MS. BOWEN: Yeah. Probably, yeah, five to ten. Certainly right now I think our biggest challenge is lack of available product, whether that is shovel-ready ground or existing infrastructure. I think Leo mentioned the development timeline overall for the community is greatly shorter than what it used to be. So, we’re looking at people coming in wanting to be up and operational in 12 to 18 months and that’s starting from scratch. So, if we’re working, looking at a site that’s going to take two years to bring sewer all of those opportunities are going elsewhere which I think is what has caused us to develop some of the strategic priorities that were listed for you this evening.
COUNCILMEMBER JENKINS: Okay. Well, thanks for your response. That’s kind of -- and I understand this is indefinable some of those things.
MS. BOWEN: Yeah.
COUNCILMEMBER JENKINS: So, I wasn’t putting you on the spot.
MS. BOWEN: But something to focus on certainly.
COUNCILMEMBER JENKINS: But I was just trying to get a feel for it more than anything.
MS. BOWEN: Yeah.
COUNCILMEMBER JENKINS: And I think I have a feel for where we’re at, so I appreciate that. Thank you.
MS. BOWEN: Okay. Sure.
COUNCILMEMBER KENIG: Okay. Stephanie, then Jeff, then Jim.
COUNCILMEMBER MEYER: Okay. Mine is less of a question and more of a comment. I just want to I guess applaud everyone with the Chamber, Brian and everyone who has worked on this. I’ve watched over the last six, seven, eight months, however long it’s been and there’s been a great deal of heavy lifting, a lot of conversations with a lot of community members. I know many of us were solicited for our feedback as well to get to the model that you’re at now. And I think it’s a really great idea and a really dynamic model. And I appreciate you bringing that to us. And I think to kind of echo what Leo said I think we’re really primed in Shawnee to take advantage of the good work we’ve done in the past. And now with this new model kind of move forward and have even more growth and progress. So, thank you for that.
MR. BROWN: And thank you as well. Once again, I can’t understate we appreciate your collaboration in the process. So, thank you.
COUNCILMEMBER KENIG: Jeff.
COUNCILMEMBER VAUGHT: Yeah. I’d just second what Stephanie said. I totally agree. I think this will help us succeed and move forward and kind of compete with our neighbors. A couple things I would ask. So, we sit here as a Council and we listen to these presentations about economic development. We look at the amount of dollars we spend. Sometimes, and I don’t mean as a dig, but sometimes I feel like there’s a disconnect with the Planning Commission. That they’re kind of running -- I know they’re autonomous, but could this same presentation maybe Elli be presented to the Planning Commission so they understand what the EDC and the investment we make and the time and effort that is spent so that -- because talked about -- we just talked about mixed use. I just sent an article to the Council from the Business Journal [inaudible] write it, but, you know, unless we’re building mixed use and Townsquare it’s not going to happen because our maximum density is 12, and they’re building one in Lenexa that’s 44. So, we can talk about this, but if we don’t come together through the entire system of approval from staff up through Planning Commission to us so everybody understands that this is what we want to accomplish because this is great. And this is the direction we absolutely need to go. But I want everybody on board. I want everybody to understand where we’re trying to go. And obviously we disagree up here and we’re going to. We’re elected. We’re supposed to. But I think the general idea of where we’re going to end up is there. And I think everybody else needs to understand that I feel that that vision and leadership comes from us. And, yes, the Planning Commission is autonomous, yes, they’re going to do what they’re going to do. But I think they need to understand the investment and what we’re trying to accomplish and where we want to go. And so I would ask that this, you know, I know we’re talking about a meeting between us maybe and maybe it’s a good time for the presentation again.
CITY MANAGER GONZALES: Yeah. And actually coincidentally, or not coincidentally, probably intentionally, but Planning Director Chaffee presented the Strategic Plan to the Planning Commission just a few weeks ago that Mr. Nunnink presented tonight, that portion.
COUNCILMEMBER VAUGHT: Okay. Fantastic.
CITY MANAGER GONZALES: But to see these numbers that Elli presented would be very helpful.
COUNCILMEMBER VAUGHT: Absolutely.
CITY MANAGER GONZALES: And we have looked at some dates that I need to check with some folks in late August and September for a joint meeting between the Planning Commission and the Council. So, we are working on that and trying to develop an agenda which gets longer every day. So, we may want to have more than one meeting.
COUNCILMEMBER VAUGHT: And the only other thing I’m thinking is, so recently we started getting feedback from staff after Planning Commission meetings kind of what happened. Did it pass, didn’t it pass, why, or any, you know, some of the -- or basically just a synopsis of what happened, not necessarily the, you know, whys. But I’m assuming on the EDC level, you know, if we’re competing on a project and we lose it there is feedback as to why. Would that be -- it would be interesting to have some of that feedback come back to us. I think we as Councilmembers when, you know, there’s so many projects that are happening and sometimes we’re in the game for a very short period of time. Sometimes we’re in the game till the end. Sometimes we don’t know that we’re in the game. But very rarely do we know why we lost it as a Council. And so I think it would be really helpful for them to have feedback. I mean this is a development community. And if there is reasons they’re not coming here, if things are happening, I mean I think it helps us as Councilmembers to know why because that helps us kind of, okay, what needs to happen in this community. What can we change or what can we do better or what can we correct. And so I think getting that feedback, whether it’s a monthly report or whatever, you know, anytime we get that feedback, I think if that’s fed back to us that would be very helpful for kind of getting a better understanding of what we’re up against.
COUNCILMEMBER KENIG: Okay. Jim.
COUNCILMEMBER NEIGHBOR: Yes. I’ve always felt real strongly that a stronger chamber and a strong city go together. There’s a synergy there working together that we can accomplish a whole lot more working together than we can on our own separate tag. So, that having been said, I applaud the Board of Directors of the Chamber and the executive committee for taking this step moving forward. I think it’s important for the future of going forward. This 30 percent is always going to be out there. But when I got on here it was 22 percent, but that’s taken seven years. So, it is a time consuming thing, but I’m excited about the strategic principles. It’s here in black and white for everybody to know about, to ask questions, to focus what we’re going to go about doing. And I look forward to working with you with the new structure. Lastly, I would like to say to Mrs. Leeper, thank you, thank you, thank you for your time and support of our City.
MR. BROWN: Thank you very much, Councilman Neighbor.
COUNCILMEMBER KENIG: Thank you. Carol.
MR. BROWN: If I can just one more, just make one last comment if I can. I was remiss and did not quite finish and so I would like to if I can just throw in a real quick word.
COUNCILMEMBER KENIG: Oh, absolutely.
MR. BROWN: So, ultimately as you saw we have an additional FTE that we placed on the org chart. With the request for funding we’re not looking at -- asking for funding for that FTE at this point in time. But what we’d like to do is if we -- once we get the individual put in place that’s going to be the leader for the organization, have them be involved in the process and identifying what his needs are for his organization to be able to carry out the strategic plans is sometime during the year coming back and having a dialogue and conversation with the Governing Body to potentially look at requesting funding for that FTE at that time. So, thank you very much for your time.
[Economic Development Fund, Fund Number 217 slide]
CITY MANAGER GONZALES: Okay. Just to run -- look at the Economic Development Fund, which is where the contract with the Chamber is funded out of and a number of other things as you all know. So, the revenue into that fund is about $1.7 million. It comes from the impact fee from the landfill. That is really the man source of revenue. We do fund a benefit district out of here and get some special assessment revenue also.
[Economic Development Fund - Highlights slide]
So, down on the Expenditures side, in 2017, there are several things in those numbers. The ED Programming includes things like SEED grants that we have approved, placeholders for SEED grants for projects that we hope may happen such as Shawnee Crossings building, some of those that we want to make sure that we are holding funds in case something comes along.
Other approved projects, Westglen, the VA hospital. You approved an agreement with them. We have not paid that money out. But when that development happens hopefully then we’ve got that money identified and held in the fund. So, those things are included under the programming.
Under the Product Development is more of the infrastructure costs. And so as you can look at that and the debt payments, those numbers are the numbers we’ve been talking about as we’ve approved things for Nieman Now! Pieces of that, some with the Parks and Pipes revenue and some of the additional has been supplemented through the Economic Development Fund. We do hope that, and kind of further out programmed that at some point some of those can drop back into the Debt Service Fund in the future. There isn’t that capacity right now, but we hope that could happen which would free up more of the Economic Development Fund for the future.
Additional programming, design marketing, those are dollars that we’ve identified for potential projects. We met this week and Councilmember Kenig may speak to this with the entrepreneurial opportunities and grant opportunities that we may want to allocate some funds for. And so those are placeholders in those line items for that. And then the contract amount, and as Mr. Brown said, that new position is not included. We’re recommending just three percent normal increase to that contract at this time. But come September or October we’ll need to redo the contract with the Chamber, update it to reflect the new structure. And at that time we’ll bring forward a discussion about additional position and other changes to that contract. The budget authority would be there in the Economic Development Fund should you decide to increase it at that time.
So, I think those are the main things in the fund. Any questions about the Economic Development Fund?
COUNCILMEMBER KENIG: Any questions or comments? Okay. I just have a comment. Going on what City Manager Gonzales said, just wanted to follow up on that. There was a meeting last week with Digital Sandbox of Kansas City on ways that we could partner with them. And I just want to highlight, I think that’s why this fund is so critical because it’s one of the few tools we have in our toolbox to strategically innovate and come up with new programs and new ideas and new ways of reaching out to grow business in our City, thinking outside of the box. So, being able to have a healthy fund balance to be able to do that is key. We’ve had three to four entrepreneurs that have come to us with ideas, very innovative product ideas, and they’ve been scouting the landscape and they’ve been told by several people, well, if you want, you know, assistance with that idea you need to go to Olathe or you need to move to Missouri because those are really the only two places that offer grant assistance to entrepreneurs at the SEED level of development. SEED comes before Angel. So, if you’re typically seeking Angel investment you have a product that’s already developed out or a service. If you are at the SEED level you’re seeking to build that minimally viable product. You’re at the conceptual stage. You have the idea but you need resources to be able to build that idea and show a product that can go to market. And so that’s where there’s a large gap with most cities and programs that they offer that doesn’t meet that need right there. So, you know, in consultation with several of these entrepreneurs that have come forward with several of these concerns we have people who live in Shawnee that have these ideas that don’t want to move. So, that precipitated this meeting we had with Digital Sandbox, looking at potential partnership opportunities to be able to provide financing for these entrepreneurs. So, just to highlight that there is such a variety of ways that this fund can be used. So, you know, to follow up on what Mr. Nunnink said, you know, he mentioned the word opportunities. There’s so many opportunities before us and this is just one of many. But I think it’s a constant need to reassess and look at different ways that we can reach out to all entrepreneurs, business owners at various stages and a life cycle, business life cycle process to grow business in Shawnee, retain and grow. So, exciting challenges ahead of us. Thank you.
CITY MANAGER GONZALES: That’s the end of this part of the presentation. You guys are all welcome to say of course. But we’re going to just shift over then into department presentations. Do you want to keep moving through a few of those before we take a break?
COUNCILMEMBER KENIG: Right. I think we’ll move through one or two of those and then we’ll break and then reconvene.
CITY MANAGER GONZALES: Okay.
Budget 2017R and 2018
POLICE CHIEF MOSER: We’ll get everything fixed up here after Brian messed it all up. Are we good to go? All right. Thanks, Brian. Appreciate you.
MR. BROWN: Thanks, Chief.
POLICE CHIEF MOSER: Good evening. Rob Moser, Chief of Police. First, I want to recognize the Command Staff that I have sitting back there with me. To Mr. Jenkins’ point earlier, in the Police Department that’s how we build our budget. It starts at the Division Command Level. The captains, the majors and the deputy chief build the budget, present it to the department head and then we present it forward just as the City Manager suggested. So, I wanted to give a shout out to the Command Staff for showing up tonight and taking an interest and working months ago in starting to develop the budget.
[2017R - 2018 Functional/Department Work Plan slides]
Okay. This is our department work plan. I’ll try and highlight a couple of these as we go through each slide. On this one I want to talk about the firearms range, which you’ve probably heard some about, the potential of us being able to do something in cooperation with Overland Park on the property that they own out there next to the landfill. There currently are some funds allocated for the feasibility study that’s nearing completion. And when that’s completed I’ll have much more information to bring forward about the feasibility of a range. But what you do have is an unmet needs sheet that shows a recommendation of allocating $50,000 a year over a period of five years which would be $250,000, to go toward the actual construction development of that range. That is not as much as what I’m hearing and seeing Overland Park putting towards this project. And when you think about the fact that their department is bigger than us, is probably going to be using it more, it’s simply a numbers game, that stands to reason. So again, that’s the suggestion is the unmet needs sheet in there. The other opportunity might be to use the Public Safety Fund. The fund balance in there would support doing the full $250,000 out of that at one time.
On this slide I want to talk about the fact that the Police Department is advancing toward national accreditation as some of the other departments in the city have done. Greg Collins is our lead on that and we hope that -- the goal is in 2019 to have our onsite assessment to be awarded accreditation, national accreditation through CALEA.
[Budget Highlights slide]
Some of the highlights of the budget that we formulated this year, expanding the co-responder program which we started last year from a half-time to a full-time contracted position. We currently split it half-time with Lenexa. I met with Chief Hongslo of Lenexa a while back and we both agreed very quickly that each of our cities can support a full-time mental health co-responder to better help those folks in getting the services they need and deserve. Currently our half-time co-responder has about 20 contacts total each week on average. That would include personal contacts and then coming in and following up for things that she missed when she was spending her time in Lenexa. So, that’s kind of what I want to hit on is what she’s missing when she’s in Lenexa and having to come back and follow up with later. Those folks are a lot of times in crises mode and they need that help right then. And that’s why having a full-time responder is going to be a benefit to each of our cities. You throw in the fact to that that one in five arrestees exhibit some form of mental health behavior. And those folks too are also in immediate crisis mode sometimes. And so there’s a true need to have a full-time responder there. And it would help us to become much more proactive and getting this community that help as opposed to right now we’re very reactive with it. So, I don’t mean to say that what we did last year in implementing a co-responder half-time was a good thing. It was a very good thing. It’s just that both us and Lenexa agree that it can be much better and needs to be much better by both supporting a full-time.
So, the pictures you see there are the awning that we’re recommending to be constructed out at the Justice Center for the police cars. The top one shows what can happen without the awning. That is an actual picture of our police cars on the back line after a snowstorm. And then the bottom picture is a rendering of what we’d like to put out there to help protect the cars during inclement weather. Obviously keep snow and ice off of it. The officers when they come out and they’re moving cars around they have to scrape ice or brush snow off, it delays the time they can get on the road with that car. It’s not very efficient and it’s a hassle and it’s kind of a danger actually working around the car in slippery conditions to do those things. And as we were developing the thought and the need to go forward with this, I learned that this would benefit more than just the Police Department. Our IT folks advised that they would very much appreciate this as well because they’re often out to the department doing work on computers in the cars and they’re working in the inclement conditions themselves when they’re doing that. So, this would protect them as well.
[Police General Fund slide]
There’s our General Fund. Under the Capital Outlay there you can see the $233,000 that we believe the awning would cost in the back parking lot of the Police Department there. Again, that is for these marked City-owned police vehicles.
[Public Safety Equipment Fund slide]
Under the Public Safety Equipment Fund, I thought I would highlight the fact that it jumps up in the 2017R under Police Equipment and then goes back again in ‘18. That’s for the WatchGuard cameras that we’re switching over to in the cars that were approved last year. Those were plugged in to get that project done this year, and then it goes back down.
The Public Safety Fund down there, the Justice Center debt that’s the fund that does show a current healthy enough balance to support $250,000 to be plugged right in toward that range project.
[Special Alcohol Abuse Fund]
Special Alcohol Abuse Fund is what supports our four school resource officers, salaries and training out of that.
[Equipment & Facilities Reserve Fund]
Police Facilities down there, that actually -- that 97,000 actually is -- we’re referring to the old Police Department on that, some work that’s being done there.
[Special Narcotics Fund]
The Special Narcotics Fund on this slide, the fund balance that kind of -- due to some staffing in that unit and things like that it had gotten kind of low over the years. But we’re kind of expecting revenues with some recent cases that have developed to pick up in there a little bit. But the fund obviously does have the balance to support the things we’re doing with that money in there. And that’s -- we buy our tasers out of there and then replace our tasers out of there. And then the K-9, we’re going to do some K-9 training. We have three K-9s now with getting the grant for the third dog last year. And we’re actually going to send one of our K-9 officers to be trained to be a trainer. And so in the future we see that as a cost savings. Because instead of sending all of our K-9 officers away, which is very expensive for several weeks to get trained, we hope to do more of that in-house by getting him trained up out of this fund.
So, I will -- well, I don’t want to go through to Fire right now, that’s for sure. I would be happy to opine on any questions you have about Fire. I’m sure John would love me to do that for him. But if you have any questions about the Police budget I’m -- I can stand for questions.
COUNCILMEMBER KENIG: Any questions or comments from the Council? Eric.
COUNCILMEMBER JENKINS: Just a couple quick ones. You talked about that mental health co-responder, is that person an FTE that’s paid as a City employee or is that a contracted position?
POLICE CHIEF MOSER: Contracted position, Johnson County employee.
COUNCILMEMBER JENKINS: Okay. Great. That’s what I was hoping it was because that’s what I would definitely prefer.
POLICE CHIEF MOSER: Correct.
COUNCILMEMBER JENKINS: And that’s something I would favor because I think that’s kind of a disgrace that we have in this country and that’s the emphasis we place on taking care of these mentally ill people. And I know I’ve got a -- when I was on the Johnson County Charter Commission we got a briefing from the Johnson County Sheriff and he talked about how he was the largest mental health facility in the state of Kansas. And that’s a pretty said commentary that we don’t address that really big issue. So, you know, I think I would definitely lean towards supporting moving in that direction. So, thank you.
COUNCILMEMBER KENIG: Okay. Any other questions? Okay.
POLICE CHIEF MOSER: Thank you.
COUNCILMEMBER KENIG: Thank you, Chief.
POLICE CHIEF MOSER: Thank you.
COUNCILMEMBER KENIG: I appreciate it.
POLICE CHIEF MOSER: Yeah. I’ll go ahead with John’s now. Love to.
Fire[2017R -2018 Functional/Department Work Plan slides]
FIRE CHIEF MATTOX: Well, good evening. John Mattox, Fire Chief. So, as you’ll see tonight the Functional Department Work Plans are at the beginning. I’m just going to touch on a couple. The first one I want to touch on on this screen, and Chief Moser alluded to, one of our goals in the work plan was to finalize the accreditation process. In case you didn’t know we did have our site visit the second week of April from the site team, and they are recommending us for accreditation. And so a couple members of the chief staff will be traveling to Charlotte the end of July to be roasted by the commission in hopes that we receive accreditation. Not that I’m paying attention, July 28th, 12:45 p.m. is when our hearing is. So, if you nothing better to do those are broadcast live through the CFIA website.
So, the other one, obviously a really big one for us is to procure the appropriate site, create a functional fire station design and begin construction of Station 74. We started that process really at the beginning of this year. And in case you don’t know the neighborhood meeting is tomorrow night and I invite all of you to come out, the Riverview Elementary School from 6:00 to 7:30. We have some great visual aids to share with the community. So, if you’re available, please come. But that is one of our huge projects for ‘17 and ‘18.
[General Fund slide]
Our budget, the General Fund, you can see the jump from ‘16 to ‘17 was with the staffing for the new station. That’s what pushed that up. Kind of dropped, revised in ‘17 because we have not hired all of them. ‘18, we expect to, so it’ll jump back up. The rest of it is kind of doing business type things, some adjustments. Like Maureen said, you know, we all used the same numbers and estimates for fuel and utilities and things like that. So, there’s not a big change there. I was real excited when I saw were saving $80,000, then I realized we just weren’t buying staff vehicles in ‘18. So, really not saving anything, but that’s what that line would show.
And then in the Fire Equipment Fund, a large portion of that is outdoor warning siren replacement program as well as it’s time to replace our TICs, excuse me, our thermal imaging cameras. Those have a life expectancy. And as any electronic the technology in those changes like crazy. In fact, our new SCBAs, our air packs that we got the grant for, we actually bought five masks that have a thermal imaging camera built into them that we’re training with right now. And those are -- the plan is once those go in service that we’ll have one of those on each truck. And as technology advances in that we’re going to look to add some more of those. But the idea is whoever is in front on that nozzle will probably be wearing that and will be able to see as just part of their mask. So, pretty impressive. The way it is now the captain and one of the firefighters is carrying a handheld. They’ve gotten much, much better. When I started it was about the size of this laptop and they were very expensive. The new ones now kind of hang around your next and it’s a small screen about like this, but the detail is amazing. So, we’ll be updating some of those, and hope to in ‘18.
And then also we’ve talked earlier today, probably going to be bringing back later this year an accelerated program to replace those outdoor warning sirens. After this year’s replacement we’ll still have eight on the program. And for those of you that saw the news here about a month ago when Dallas’ outdoor warning sirens got hacked the county has had meetings and looked into it. And there is a few still in the county that are not capable of being upgraded to prevent that hacking. And surprise, we have ten of those. Two are in the process of being replaced now. That’ll leave us eight. So, we’re thinking maybe later this year we’ll bring back and accelerate replacing those eight and not waiting four more years. Because it turns out you can -- if you have some technology you could drive by and actually set those sirens off right now. So, look for that to come back later this year. We think there is money in that Public Safety Fund to do that. But this will all come about in the middle of budget, so it’s tied in here right now.
The Facility, Equipment and Facility Reserve Fund, you’re going to hear more of that in Mr. Whitacre’s presentation later. That’s in that combo fund that does all that, and the Justice Center Debt Fund.
And that’s all I have. Do you have any questions for Fire?
COUNCILMEMBER KENIG: Okay. Not seeing any. Thank you, Chief Mattox. Appreciate it.
Okay. I think we’ll go ahead and take a ten-minute break if everybody is favor of that. Do we have a motion to break?
COUNCILMEMBER SANDIFER: Motion to break.
COUNCILMEMBER NEIGHBOR: Second.
COUNCILMEMBER KENIG: Okay. We have a motion to break. All those in favor say aye.
COUNCILMEMBER KENIG: All those opposed? We break.
[Therefore, the motion was made by Councilmember Sandifer and seconded by Councilmember Neighbor to recess for ten minutes. The motion carried 7-0.]
(Shawnee Council Committee in Recess from 8:27 p.m. to 8:39 p.m.)
COUNCILMEMBER KENIG: Okay. We’re back in session. And so now we have a presentation on the Municipal Court.
Municipal Court[2017R - 2018 Functional/Department Work Plan slide]
CITY CLERK POWELL: Stephen Powell, City Clerk. And I’ll run through Municipal Court. We have one item on the work plan for this year, and that is to analyze the cost of our off-site storage for old court records. As you know, a couple years ago our court got new court software and we scanned all of our current case files, so now we’re a completely paperless court. So, we have some capacity to bring some of our historical records back on site. Right now we pay Iron Mountain to house those for us. And they have a fairly long retention life span, 50 years by state law. So, we’re going to look at if it’s cost effective to bring that back up.
Okay. This computer.
COUNCILMEMBER VAUGHT: So, you’re the problem.
CITY CLERK POWELL: It must be me. Geez. All right. Okay.
CITY CLERK POWELL: All right. I’m not going to touch it. I’m going to stand back here. I’m not touching anything.
[Budget Highlights slide]
Okay. We have a couple of budget highlights. We are -- you have an unmet needs sheet for additional court security, which would include a part-time bailiff, which we have a part-time bailiff now. So, a new, a second bailiff and then the equipment to scan folks as they come through court for their sessions. So, that would be the position and the equipment for the scanning.
And then we also have an unmet needs sheet to convert one of our part-time prosecutors to a full-time position. Our case load in court is growing pretty quickly, so we felt now with some changes going on in court right now would be a good time to include that in as an unmet need.
COUNCILMEMBER KENIG: City Manager Gonzales.
CITY MANAGER GONZALES: And if I could just clarify for just a minute. So, we’re calling these unmet needs sheets. And kind of to your question earlier, Mr. Jenkins, so in the very back of your packet are truly unmet needs, the sheets, some of them from last year, some new things. Those are things that are not included in the budget. These that we’re calling budget highlights this year are unmet needs from last year that we have now included in the budget, thus, they become highlights. So, they fit in the budget.
COUNCILMEMBER KENIG: Okay.
CITY MANAGER GONZALES: So, the things that departments are reviewing and calling highlights are things that are already in the budget. And then the actual unmet needs sheets in the back are not included. So, I just wanted to clarify that because we --
COUNCILMEMBER JENKINS: I’m just curious .
CITY MANAGER GONZALES: [Inaudible; talking off mic] interchangeable.
COUNCILMEMBER JENKINS: I’m just curious looking at this one, Steve, how we get by for 8,000 on going from part-time to full-time for the lawyer.
CITY CLERK POWELL: Our current -- we have two part-time prosecutors. And one of them works, gosh, 34-36 hours a week now, so --
COUNCILMEMBER JENKINS: Okay. So, part-time 34-36 hours. It’s almost --
CITY CLERK POWELL: So, this would be bringing it up to --
COUNCILMEMBER JENKINS: Okay.
CITY CLERK POWELL: -- 40 hours.
COUNCILMEMBER JENKINS: I was wondering.
CITY CLERK POWELL: So, it’s a minimal increase.
COUNCILMEMBER JENKINS: You’re going to go from part-time to full-time for $8,000. That’s pretty –
CITY CLERK POWELL: And that prosecutor actually took a position as a magistrate judge, so that position will be vacant fairly quickly. So, just the timing kind of worked out for all of that to really more forward with that.
[General Fund slide]
Okay. Our Personal Services, you can see the increase in the 2017R. That’s because our judge is retiring this year. And so that’ll go back down in 2018. Our Contractual Services go up by $36,000. And that is we are including $36,000 to look at hiring a second public defender. That case load and those dockets are growing quickly as well. So, we felt like now is the time to start looking at having another contract position to do public defender services.
And then for our Commodities, in 2017R, you see the increase which includes the equipment for the court security. And then that kind of drops back off in 2018 because that’s a one-time expense for the scanners and equipment that the second bailiff would need.
[Public Safety Fund, Debt Service Fund - Court slide]
And this slide kind of shows how some of the costs for court are funded through the Public Safety Fund as well the Debt Service Fund.
And that’s all I have for court. I’d be happy to answer any questions you might have.
COUNCILMEMBER KENIG: Jeff.
COUNCILMEMBER VAUGHT: Just real quick, when you’re talking about storage, so that’s one that you said those are highlights. So, is that one -- or functional work plan.
CITY CLERK POWELL: That’s just in our work plan for this, one of the items in the City Manager’s work plan.
COUNCILMEMBER VAUGHT: So, but right now are we storing all of our digital files local on-site?
CITY CLERK POWELL: Our digital files are stored on a server.
COUNCILMEMBER VAUGHT: Hmm. Are they like redundant where, I mean, is it a redundant storage all redundant local? I mean if we’re required to keep them 50 years and something happens to that file, what happens? Do we, you know, do we get in trouble? Do we get, you know, hand slapped? Because I mean usually off-site, I mean, secure storage, typically when you’re doing storage you’re doing like, you know, a two or three time redundant storage off-site where it’s mirrored across
CITY CLERK POWELL: Yeah.
COUNCILMEMBER VAUGHT: -- several servers. So, is that kind of what we’re doing, or is it --
CITY CLERK POWELL: We back up the data every night. So, we could always restore from that.
COUNCILMEMBER VAUGHT: Back up and then it’s held local as well? Just curious. Just trying to get my head around that.
MR. BUNTING: Mel Bunting, IT Director. Our backups, we complete backups nightly. We pretty much back up all our electronic data. We then, because we have two data sites, we back it up to the primary server here at City Hall. So, all the data we pull it here. And then we replicate the data then to the Justice Center.
COUNCILMEMBER VAUGHT: Okay.
MR. BUNTING: So, we have the data in two different locations. And then we keep the weekly backups for approximately a month and then we keep the monthly, and then we roll that into one monthly backup and then we keep the monthly backups for a year.
COUNCILMEMBER VAUGHT: So, but if it’s all in the same system, and I guess where I’m going with this is, you know, you look at what just happened in Europe. So, if it’s all in the same system and it gets hacked and you get the ransomware you either pay the ransom or you lose your data because it’s all in the same system versus when you talk about off-site. I mean I would say it’s probably something that we need to spend the money on is if it’s data that we’re required to keep, no different than other organizations, requirements even in real estate is you, you know, you back it up to an off-site service, so if your system gets hammered at least that data is safe someplace else and it’s not subject to ransomware.
MR. BUNTING: Yeah. Right now I would feel pretty confident we’d be able to restore our data.
COUNCILMEMBER VAUGHT: Okay.
MR. BUNTING: To the level or the timeline, we’ll say it that way, the timeline, that’s the X-factor, how egregious was the attack or the breach and, you know, how much data was impacted. We’ve had instances before similar shall we say, and our security tools were in place and identified the problem, shut it down. However, it did do some damage shall we say, encrypt some applications or data, and we simply just restored it. You know, our risk is probably a 24-hour window. So, to say it another way, you know, we back up every night. So, if it happened right after our backup somebody made some file modifications right after our backup, it would be 24 hours before we were to back that up again. So, you know, the basic takeaway is that we would lose that modification of data. So, we have kind of a 24-hour window risk if you will.
COUNCILMEMBER VAUGHT: All right. Thanks.
MR. BUNTING: That’s a good question by the way.
COUNCILMEMBER VAUGHT: There are no bad questions.
COUNCILMEMBER KENIG: Any other questions, comments for Stephen? Okay. Thank you, Stephen.
[2017R - 2018 Functional/Department Work Plan slide]
MR. WHITACRE: Doug Whitacre, Public Works Director. We’ll highlight like the others have tonight a couple of our major items in our work plan for this year. The major one that Public Works is facing is with the increase in the stormwater fee. The second one there is to implement the strategic Stormwater Management Plan that we wanted to put in place. That coordinator and maintenance person has been put in place and we’re attacking the CSRS from our field workers at this time. Also with the additional funds that we will receive this year from the increased fee is we had about a 1.4 million pipe repair contract which was our 2016/2017 combined. We’re 95 percent through that already. We got very good pricing. It was approved back in November. We got very good pricing and we’re about 95 percent complete on those 30 projects at this time.
And then also the videoing as you remember, part of the plan was to double the amount of pipe inspection we were doing with video services. And we’re already 60 with that contract with those two outfits that you approved. We’re already 60 percent through that right now with the actual videoing, so we’re already starting to evaluate from that standpoint of what pipes we are, which will again give us a better feel of where are the bad pipes and try to get ahead of them.
COUNCILMEMBER JENKINS: He’s hiding behind the Kevlar, he’s expecting something maybe.
COUNCILMEMBER NEIGHBOR: It came unplugged.
COUNCILMEMBER NEIGHBOR: That’s cool.
MR. WHITACRE: I thought he went looking for a stormwater pipe. I wasn’t sure what was going on, so.
The second item, the last one is on the Traffic Master Plan, which was a major or was one of the -- in the Customer Service Fund, you know, looking at our traffic congestion, and we’ve got that high level schedule put together on that plan that we presented back to you back at the December time frame. We’re also working with IT very heavily and trying to get some additional fiber network in place so we can get access to our major corridors as far as timing sequence and signal timing. And we’ve added ten signals already to that network this year. And we have purchased all of the controllers. I think we have like 67 traffic signals. We have purchased all of the controllers we need and are in the process of upgrading, finishing that upgrade so that we’ll have all the new technology, so that as we can get fiber to them we can get them all connected and get better sequencing on them.
The second sheet here, I’ll highlight the last one there is really the -- establish the Facility Strategic Plan and consolidating service and maintenance contracts. Just before I think I came in they created a Facilities department. And we’ve begun trying to consolidate and just get some economies of scale with some of our maintenance contracts and like that with the City. We’ve already got an electrical. We’re doing pavement, ceiling, and then roofing, just try to manage those and get better pricing, et cetera, to save some funds there.
[Budget Highlights slide]
Budget Highlights for this year. We have the third covered parking structure out there at Public Works. And this structure, the two that were approved last year, those structures are in the final stages of completion which will take care of all of the trucks and the salt spreaders et cetera for cover. This additional structure would then take care of like, we’ve got the skid steers, tractors, the mowers and all that just sit outside in the weather right now. And this would provide protection for them.
The next item there is the Streetlight Purchase Study. We will complete a study in ‘18 to see whether we should purchase the streetlights from KCP&L. Other cities, our neighboring cities have done that. And currently we’re gathering the inventory from KCP&L so that we can start that analysis to make sure that it’s economically feasible and not just we’re buying and then we’ll spend more money trying to maintain themselves.
The third item is Hope Lutheran Pipe Repair. That will be our major stormwater project for 2018. If you’re not familiar over there we’ve got a huge sinkhole that we put a fence around to protect the children over there from falling in from the school. And so this would -- it’s about a $700,000 repair to take care of that. And we will -- big impact to their property obviously. So, the plan is we’ll start design late this year and then probably do construction after school is out in May so that we can open everything up when we don’t have all of the school students there.
And then the last item, the Chamber kind of alluded it, is I-435 and Johnson Drive. In anticipation of that upcoming I-435 bridge repairs at Midland that we went through last year that was delayed, we are budgeting for a traffic study to really look at those, the intersections up there on Johnson Drive. Because we know when that happens there will be obviously some issues, traffic issues there on Johnson Drive. But we also know we currently already have some issues there and so we want to look at that, to look at the alignment and traffic signals and do a good study there to move forward with in ‘18.
[General Fund slide]
As far as the General Fund for Public Works, just two highlights is Commodities you see dropped from a million to 600,000 and back up to a million. That is salt and snow supplies. Obviously we had another very mild winter and so we didn’t need the funds. Our salt barns are full, and so we backed the money out in 17R because we don’t need to go out and buy salt. We’ll maintain through the end of the year. But then if we were to go into a hard winter next year obviously we’re budgeting back for those full supplies going in in’18.
And then Capital Outlay, that would be the funding for the third covered shelter is what bumped that back up from 17R to ‘18.
[Special Highway Fund slide]
On the Special Highway Fund really that’s where we do all of our mill and overlay work out of. Just want to highlight here is if you look at the third line down there, the SIP Reconstruction of Ditch Sections, that will be our first project where we’ve been kind of saving the money up from that sales tax. That’s the eighth cent to save up. And this will be that Flint from Johnson Drive to West 67th Terrace. And so that project will be work done and completed.
CITY MANAGER GONZALES: 62nd.
MR. WHITACRE: 62nd, I’m sorry. I meant 62nd. And that’s where we’ll replace the ditch section with curb and gutter, et cetera.
[Economic Development Fund - Debt Service Fund slide]
Basically on these, this is just the Economic Development Fund. And this slide just shows the debt payments on projects previously approved by the Council and is just is outlining those expenses.
[Parks and Pipes Fund slide]
Parks and Pipes, this is the debt payment that would go out on the Nieman Now! Project going forward. And obviously we will not have any expenses in ‘17 or ‘18. Those won’t really kick in until ‘19, so that’s why you’re not seeing any expenses there. But this would be the fund that would be used towards the Nieman Now! Project.
[Stormwater Utility Fund slide]
Stormwater Utility, this obviously is the Stormwater Fund. Obviously the increases you see especially in the capital outlay is because we got the additional funding from the increase in the Stormwater Fee. I just want to note on contractual that goes up and down. But the reason that’s increasing is obviously as we have more pipe repair we’re going to have more design services. That’s where the design services are paid for when we have to redesign pipes that are being repaired or replaced.
And then in the Capital I want to note the reduction that you’re seeing there from ‘17 to ‘18 is not that we aren’t spending the money on the pipe, but we did that ‘16 as we implemented a new stormwater plan this year. The money from ‘16, if you look, we didn’t spend a lot of money in ‘16. ‘16 and ‘17 were rolled together. And so that kind of moved forward. So, there’s about a $350,000 carryover from ‘16 to ‘17. So, when that drops back out it’s about 1.7 with the new funding is what we’d be spending a year on pipe repairs and replacement.
[Equipment and Facility Reserve Fund slides]
The Equipment and Facility Fund, as they alluded handing off to me, this is just the Public Works portion. And I’ll talk more in the next two slides on the facilities and the equipment.
And if you want, in your packet memo, if you want the details behind each of these areas, line items on page 34 for this, for the vehicles and equipment. Basically the establishment of the Equipment and Facility Reserve Fund has been developed over the last seven years. The account provides the dedicated funding source needed to replace and maintain the City equipment and Facilities required to provide the various services, you know, to our citizens.
So, this is the equipment that would be slated for replacement in ‘18. And again, we follow a scheduled replacement based on age, mileage and cost of repairs that has been developed out. And then on page 35 in your packet would be the details behind the facility improvements that we have again in taking care of roof, office, parking lot and HVAC for the various facilities throughout the City.
And I think that takes care of me, so I can take any questions.
COUNCILMEMBER KENIG: Okay. Thank you, Doug. Yes, Eric.
COUNCILMEMBER JENKINS: Not really a question, just a comment. I think that’s really great the way you’re moving along so quickly on some of those, getting those contracts done and signed and getting us better deals actually by getting them out early. So, just wanted to commend you on that.
[2017R - 2018 Functional/Department Work Plan slides]
MR. WESSELSCHMIDT: Good evening. Doug Wesselschmidt, Director of Development Services and City Engineer. With the ten full-time and one part-time people in Development Services, I think I’d say we probably haven’t been busier than we’ve ever been before. As know there’s a great amount of work going on on the capital improvement side, but on the private development side with the subdivisions the commercial work, it’s keeping that section of our group very busy as well.
But on this particular sheet what I wanted to highlight was what’s been touched on previously particularly on the economic development side is the work we’re doing hand-in-hand with Johnson County Wastewater District and their engineering consultant George Butler Associates to take a look at the, what we call the Eco-Commerce Center, that area of 43rd Street west of K-7. And based on the plan that we’ve presented to them on how we would like to see that area develop, what would it take to sewer that perhaps on a temporary basis an then also on a long-term basis. So, they have a study that’s looking into those options. As indicated earlier tonight we expect to see a draft of that report by the end of June. And we’re looking forward to seeing that because that’ll give us a lot of direction on how we can then go forward in this area. It is really what -- the last area that 43rd Street east and west of K-7 area of our City for any large scale commercial, industrial business development.
On this page what I’d like to highlight would be, again, this was touched on earlier in the Economic development section was taking a look at some of the other remaining areas of our City, particularly that would sustain residential development as far as retail development and just determine what the infrastructure needs are on that area so that we can be ready for that and perhaps get some of that SEED growth going out there. But that would be not only take a look at some of the road network needs, but some of the other utility needs. Is water out there, is sewer out there, so that we can be working with those agencies to say, hey, you know, like we’re doing with the Eco-Commerce Center, this is an area that we’re seeing as a residential area of development and see that all of these agencies are prepared to help us develop that area.
And on this page what I’d like to point out is some of the other ways that we’re looking for development to occur, particularly west of K-7 where we may have more of a rural residential setting, what are some other infrastructure design standards that we could have such as streets with ditch sections with the BMPs built into the roadside ditches and all. So, in order to have the options for the different types of development we want to be ready in that area as well. And I believe this is my last page here.
What I’d like to highlight would be the full implementation of our Capital Improvement Management Software program. And the very first of this year we went live with the program. It’s an outside vendor called E-Builder. It’s been used in the construction industry for a while and it’s now been made applicable for public works, engineering departments at the municipal and basically at the government level. We’re very pleased with it, pleased with the implementation, pleased with the product. So, some of the first products or projects that we’ve got implemented in that software management is all of our Nieman Now! projects. So, as we go forward taking on new projects, getting them, using that software program, it basically it allows us to be completely paperless. Our plans are coming electronically. They’re being reviewed electronically. All of our bids going out to contractors literally nationwide, worldwide is all electronic. The bids are submitted electronically. They’re opened up electronically. And once we get things under construction, all the inspections are electronic, pay estimates are electronic. So, it’s all web-based, so our inspectors can be using it in the field. Our consultants are using it in their offices. We’re using it in our offices. And basically we’re using it at home too, so we can monitor our projects 24/7. So, very pleased with that. So, what we’re highlighting here is the full implementation of that software.
[General Fund slide]
And on this sheet our big ticket item is in the contractual services area. This is where we hire surveyors, engineers, real estate appraisers to do a lot of the work that’s not associated with one of the larger capital improvement projects because those costs are included in that capital project. But like, for example, our biennial bridge inspection would be included in this area. The funding of our CIP management software is in this area. So, nothing really different this year than what we’ve had in the past. So, the numbers generally reflect that.
At this point I would take any questions related to what we do in Development Services.
COUNCILMEMBER KENIG: Doug, I had a quick question. One of the items was developing a public infrastructure inspection manual. Is that something that’s new that we didn’t have before? And would that be to like proactively monitor for deterioration, get ahead of cost? What is the -- can you explain kind of the purpose behind that?
MR. WESSELSCHMIDT: Yeah. You know, there are some manuals that are put out nationwide. They’re very general. What we want to do is, you know, go from something like that, but modify it so that it reflects how we do our business here or how we do business here in the Midwest. So, that when we have a new employee, particularly in the inspection area, we have a manual that we can give them. Also it would be a manual that we would want our contracted inspectors or consultants to be using when they’re inspecting in our area. So, there is various sources out there. It’s just a matter of compiling that together to have something that’s tailored to what we do here.
COUNCILMEMBER KENIG: Okay. Thank you. Okay. Thank you very much.
Parks and Recreation
COUNCILMEMBER KENIG: Next up we have Director Neil Holman with Parks and Recreation. Welcome, Neil.
MR. HOLMAN: All right. Neil Holman, Parks and Recreation Director. I also have Tonya Lecuru, Deputy Parks and Recreation Director. And then if there’s any hard questions, I’ll have Rob come up.
[2017R - 2018 Functional/Department Work Plan slides]
So, need to apologize for my work plan. It is quite large. We usually have division staff supervisors and individuals with special projects are kind of on the work plan, so we will get through this.
I’m going to highlight one or two out of each slide. Design and build the Nieman Corridor Hub Park and Entryway. I know obviously we’re building. They’ve stained the stone-lined ditch today or part of it. It’s looking good. But this is a neat project that I’m happy to be on. The other one didn’t go, so this is kind of a fun one, the one from Shawnee to Merriam, so.
I know Carol talked about this one, complete the Mid-America Sports Complex Feasibility Study. And we are trying to put together a presentation to come back. So, that will be down the road once we get that established.
If you’ve driven past Shawnee Town you’ve seen a lot of movement down there. We’ve got the creek. We’ve moved some utilities. We’ve got the grading plan. We’ve installed new drainage for town out in the field and also the creeks were moved and nice new smooth ground for Old Shawnee Days coming up here in the next 2½ weeks. So, hopefully if it rains we’ll see how that drainage system works. So, it’s all good.
Oh, and that was another one. Yeah. The other one that I wanted to talk about. If you’re out west and you walk Clear Creek Parkway or you live out there along the parkway, we’ve got a lot of huge areas that we’ve killed and we are looking at -- we are going to next year come back with a pollination mix for bees and butterflies. You know, that’s kind of a big thing. And it is in this area because I-35, that corridor is their migration from Canada to Mexico. So, this is a major corridor area and we’re right along the corridor. So, I know if you’ve been in Shawnee Mission Park they’ve done hundreds, almost a thousand acres of this pollination mix. And so we’re going to start putting that. It also putting spots along Clear Creek, it also helps with thistle, Johnson grass and those unwanted weeds that grow up next to the trails. So, we’ll see that coming in the next few years of really starting to pop.
Complete Connect Shawnee. They’ve got -- Clear Creek is done. They just set the bridge last week and into this week over to Gamblin Park. I know they’ve got the footings and everything going at Gum Springs. So, it’s moving along real nicely, been a good project.
Another neat project, Tonya got a grant from -- it’s Live Well Johnson County. It was a three-part grant. One of the sections of the grant is working with the Johnson County Department of Health and Environmental, and then along with the Shawnee Police Department. We are looking at -- we are doing swim lessons, free swim lessons at the apartments at Park 67 Apartments up off of Nieman. Oh, those are off Quivira. Yeah. Quivira. So, those are kids that can’t, either both parents work, they can’t make it to the pool. It’s too far for them to ride up there at 75th and Quivira. So, we’re taking the swim lessons to them. Hopefully we can get a few more of the apartments on board. So, that would be a neat project.
The other one is Step Up to the Plate. It’s kind of a walking program with the kids that are at the ballpark, so the parents can have some activity and they can walk. And then there is also the, and we did have it earlier this year, was the wellness women’s retreat at the Civic Centre that was nicely attended. So, it’s a nice -- it’s a $15,000 grant, without we divided it up, broke it up into five sections.
Conduct the Western Community Center Program Study. We will probably getting -- this is earmarked for 2018, so we would have staff, citizens do a program charrette of the building. It kind of builds on how big the building will be, what will be in it. And then also probably a master plan that will encompass that whole area and then maybe some elevations that will kind of get people excited or just kind of -- well, what’s it going to look like. Well, it will look kind of like this. So, that will be coming in 2018. And that was also dollars from Parks and Pipes that came over from the trail that didn’t go.
[Budget Highlights slide]
So, these are the Budget Highlights and unmet needs. We are at capacity of what staff can offer on the recreation coordinator position. We have grown our adult and senior programs, but our youth programs have really shrunk. And that’s a really neat niche, a niche that we should be in. Just with everything we’ve kind of let that shrink a little too much. This position would be able to reestablish program opportunities for instructional and preschool classes. The demand is there by all the phone calls and e-mails we get. The revenue generated by offering these programs would offset the additional expenses of the position. So, the expenses that would come from that would pay for that position.
Our goal is, as through all of our programs, we have been able to offer quality programs and cover all direct costs of all the programs. We believe that the dedicated emphasis on youth programs, sponsorship development we can grow. We can grow and expand our service to the community and produce greater revenue in all of the other divisions as well, pools, seniors, adults, so the staff would have more time to focus in on what they’re doing. So, that would be a terrific opportunity to have.
The next one, the Community Center, we’ve talked about. That one is coming up.
The Park Tech position. I know everyone has the sheets. I’m going to pull out just a second. Since 2002, the City has gained 233 acres, but has had a 20 percent reduction in staff. And that mainly happened around 2008 and down there. So, we have nine full-time staff members. And this is just on the Parks side. And then I’ll explain a little bit more on that. So, we have over a thousand acres that nine people maintain, two aquatic centers, an outdoor museum, a skate park, Civic Centre, and then we also maintain -- so, that’s just on the Parks side. But we also -- you asked the question of how do we budget. Well, for me I see what’s being built because Parks usually has to maintain that. The Justice Center. We are now taking over maintenance of the Downtown Shawnee. Nieman Now!, the Parks Department will maintain that. The trails, all the landscaping, all the trees. The new Clear Creek Parkway that’s just being built, huge roundabout, tons of landscaping at Bellmont, Parks will be taking care of that. So, with that -- this position is very much needed. Contracting can do so much, but you have to manage the contracts. You have to do those extra things just besides having to watch somebody mow. That’s just not -- there’s just more to it on that position. So, that position is really needed.
[General Fund slide]
On the budget side, on the General Fund side, probably the biggest increase is Contractual Services and that was ‘17. The mowing contract increased, utilities, and then the Stormwater Utility Fee, that doubled. And we do pay for that, so that doubled from -- almost to 100,000 for us. So, just in that one little line item.
[Park & Recreation Land Use Fund slide]
Now, we get to the Park and Recreation Land Use Fund. Really this one is the purchase of the Johnson, Albert and Edie Johnson right up north of the -- northwest of the community center, the Civic Centre, excuse me.
[Parks and Pipes Fund slide]
Parks and Pipes, we’ve got the Stump Park stabilization and then we have the community center study in there.
Cemetery Fund is good. No real improvements on that.
[Equipment & Facilities Reserve Fund]
And then Doug went over all of our equipment and park facilities, and you have those in the packet.
[Special Park and Rec]
Pioneer Crossing, our debt payment in Special Parks and Rec that goes out to 2021. So, we’re still paying on that. But Stump Park as you see we own it now. It’s ours. We got it all paid off.
Shawnee Town 1929 Phase, the 384, that’s for the next two buildings that we got everything done this year, so we can move -- we’ve got Strata starting to design the Chevy dealership and then we’ll start building next year. So, that will be nice to see.
All right. Any questions? Okay. All right.
COUNCILMEMBER KENIG: Okay. Thank you.
MR. HOLMAN: Thank you.
COUNCILMEMBER KENIG: Oh, sorry. Paul Chaffee with Planning. Paul.
[2017R - 2018 Functional/Department Work Plan slide]
MR. CHAFFEE: Paul Chaffee, Planning Director. On our work plan I’m going to hit three of the items that are included. And each of them is a little different so that’s why I wanted to highlight them.
The first one is implementation of additional proactive Code Enforcement approaches and measures. Both in response to citizen surveys and what we have seen over the years we’ve made attempts to be more proactive in our code enforcement approaches. So, some of things that we’ll do, and we discussed at the Committee meeting some of those options are to move to geographic areas for the code enforcement officers, have them become more familiar with a specific part of time and at the same time be more efficient in our delivery of services. Add annual external commercial building drive-bys, take a look. And also add duplexes and multi-family exterior inspections throughout the year. And then also to do some enhancements to the repeat offender program for tall grass and weeds, so we’re not having to go visit the same people year after year after year. Just the notification time gets smaller as we go.
The second item is to revise design criteria for the downtown area south of 60th Street based on TAP grant recommendations as well as other recommendations from the community over the next few years. And our goal here is to create the vision for what we want Nieman Road to look like and get some guidelines and policies in place before the street gets completed. So, as we begin getting inquiries we can relate to developers as they develop new or redevelop existing parcels as to what we expect and what our vision is.
And then a third item is to refine the CityWorks database for Code Enforcement. Code Enforcement was the first module that we used CityWorks for, and it’s worked pretty well. But there are some, not necessarily issues, but some ways that we think that the program can be enhanced, so our code enforcement officers can move through the system a little more quickly. And this will be also important as the next year we build the module for all of our development plans where we do the planning stream and the development services stream and the building inspections stream all together into one module, so we can see how projects are flowing and make sure that if a certain item needs to be approved before anything goes further that those are locked in place along the way.
[Budget Highlights slide]
Budget Highlights. Economic development, this is our big project for 2017 and ‘18 is obviously the stormwater projects and the street improvement project. So, it’s in the Planning presentation just because this is one area that is multi-departmental. You’ve seen the budgets in Parks, Public Works, Development Services, and then the issues that Planning will be working with along the Nieman Now! Projects also.
[General Fund slide]
This is our budget. Just a reminder, under Contractual Services, this is where we have the human service funding that the City provides to some human service providers on an annual basis. And it’s also the place where if we need to go out and mow weeds or clean up a lot that that’s where these funds come out of.
[Neighborhood Revitalization Fund slide]
Then we have the Neighborhood Revitalization Fund. This is the NRA projects as well as for downtown expenditures. The grants, loans and interest rate by grants or the programs that we have available for the external grants. We have some internal grants. We have a grant that we’ve established for grease traps in buildings where maybe a restaurant wants to locate, but there’s not a grease trap there. And that’s a pretty hefty expense for a restauranteur to install, so we have -- provide some assistance there as well as we have some assistance provided for fire suppression systems which can be an expensive proposition also.
Then the refunds under Area A and Area B. Area A was the original area which is pretty much the downtown, 57th to Shawnee Mission Parkway, Switzer to Quivira. And then Area B sort of wraps around the original area and goes in some places near Pflumm up to 55th Street. And we have some of the area that goes down Nieman Road to 67th Street. So, those number fluctuate year after year. In Area B, as new projects are undertaken and folks qualify for the NRA. And then Area A fluctuates. We’ve gone through the first ten-year period. So, we have some businesses that have received their ten years’ worth of rebates and drop out and then we have new businesses obviously that are in the area that come into the program.
[Special Alcohol Abuse Fund slide]
The Special Alcohol Abuse Fund, this is a portion of the state tax that’s collected on liquor by the drink. Some of the funds go into a consortium that the City has with Overland Park, Olathe and Mission and Lenexa, all the communities in Johnson County. And then United Community Services reviews applications and makes recommended allocations to different providers for treatment for intervention and also for school education programs.
[CID/TIF/TDD Fund slide]
And the final slide is the reimbursements to developers. These are the reimbursements that are made from the sales taxes collected or property taxes collected for CIDs, TIFs and the TDDs.
Any questions for Planning?
COUNCILMEMBER KENIG: Eric.
COUNCILMEMBER JENKINS: Not really a question. Paul, could I see you just briefly after we conclude here? I need just about a minute of your time.
MR. CHAFFEE: Sure.
COUNCILMEMBER KENIG: Anybody else? Thank you, Paul.
And before Carol begins I was going to just make a quick comment. I forgot to do a follow-up to Neil. I just wanted to recognize and thank Neil and his staff for all the work they do with a limited budget, limited resources. I think a lot of times we take for granted kind of the, especially the beautification of the City that we all kind of recognize and come to expect. And really what you and your staff do is responsible for the quality of life factors that draw in residents and visitors. And I was reminded about this because my cousin’s wife took her sons to Old Shawnee Town about a week ago, and she lives in Tonganoxie and came all the way over and had a great time. So, just wanted to recognize that and just also as a reminder the Parks Technician position is something that for several years now has been an unmet need and was kind of whittled down last year during the budget process when we were looking at core priorities with the taxation. So, I know that that’s kind of been a long-standing need by you guys. But just wanted to recognize and thank you for what you guys do. Thank you.
[General Fund slide]
CITY MANAGER GONZALES: Okay. We really are winding down. The last three to go and they’re short ones, so. So, under the General Government function the City Council budget is the first one, and it’s a relatively simple budget. Not any real big changes. I did increase the allocation to Sister City amount from $5,000 to $7,500. That hadn’t been increased for many years, so that’s in the Contractual Services. But other than that very little change.
City Manager’s Office
[2017R - 2018 Functional/Department Work Plan slide]
City Manager’s Office includes a number of divisions, court being one of those. But in the functional approach the court was over under Public Safety. But other than that that includes City Manager’s Office, Legal, Human Resources, Communications, and a general overhead account. So, those are encompassed in the function of the City Manager’s office.
So, a few things on our work plan. We’ve been using Lotus Notes for our database for our agenda for quite some time now, eight, nine, ten years. And there’s a lot of good products out there, and so Stephen has been doing some research. And we’ve honed in on a few and we think that you will really like a much more streamlined agenda process. So, that’s a goal and included in the budget. They’re surprisingly not that expensive of software products to buy. So, we’re kind of waiting until the moment of having enough gap in work time that we can fit it in. And so Stephen thinks he can get that done this year, ‘18.
CITY CLERK POWELL: We’ll shoot for [inaudible].
CITY MANAGER GONZALES: There you go.
Human Resources to date has filled just this year 19 new full-time positions, 13 seasonal positions, 148 pool positions, and they currently are working 7 vacancies. So, needless to say that is eating our lunch and just really taking an awful lot of time. So, that will correspond to the Budget Highlight of the human resources positions that we’re recommending. They do a fantastic job, but then what that means is other things get not done as much because we’ve got to fill these positions. They don’t fill them as fast as we would like because we have too many open as an ongoing basis. And currently a couple things going on. You know, we’ve still got a number of people who are about to be, or already eligible for retirement. So, that retirement pattern is going to continue for at least the next ten years. And we’re also seeing, just as we all know, younger people come and they don’t stay as long as those of us who began our careers early and stayed in a place for a long time. We had a resignation this morning from a maintenance worker who had been here maybe two years. Moving on to a different job, something new and different. Nothing wrong with this job, but he’s going to be a groundskeeper in Phoenix. So, obviously a goal of his. But just a lot more movement than we’ve had in the past and recruitment has become a big part of their job. So, we do an outstanding job of recruitment I think as you can tell by the people that we hire. But it’s a big lift for HR.
Implement the new City website. We’re excited about that. On schedule for October hopefully. And then the -- a few of the goals that you’ve seen from the Eco-Devo, the five strategic priorities that were set at the January Workshop. As Leo said, several of those are more City staff led. And so one of those is the planning process that Dave Holtwick will lead in terms of a more streamlined development process and that’s already well under way. Part of that process also relates to with the new CityWorks product that we’re using, we’re kind of paralleling those of what Paul talked about a little bit with the CSRs similar development, the streamline and the technology along with the process. And so we’re trying to make those two work together. So, it’ll be a good project. And that’s the Shawnee Development Center.
[Budget Highlights slide]
So, Budget Highlights, we talked about the agenda software, an additional Human Resources position. That also has shown up as an unmet need for many years, and as I was talking about just the recruitment load especially that we’re carrying now. We’ve always been leanly staffed, but the recruitment load has really put it over the edge in terms of we just need the staff hours to get those positions filled and maintained along with all the other HR work that they do. Then a smaller easy way to get a few more hours is we do have a -- we actually have only one full-time HR person and two regular part-time. And so this would convert one of the regular part-time positions to a full-time position also. I believe she works 24 to 30 hours a week. We sometime start out at 24 and then there’s just work to get done, so that schedule has increased, but bringing that position to full-time.
We’ve implemented our new HR software, which unfortunately we haven’t had as much time as we would like to actually dig in and learn it. The Human Resources Specialist is the person who has been lead on it in terms of learning it for HR purposes. And so to have her expertise a little bit, a few more hours would be very, very helpful.
[General Fund slide]
So, this is the City Manager’s office budget, includes all of those items that -- all of those different divisions, the legal division that we talked about, general overhead.
[Equipment and Facilities Fund slide]
Equipment and Facilities Fund, that list, as Doug mentioned in your packet, I did want to mention that in the Facility Fund we did -- were able to fit the final improvements to this room that we’d like to do including finishing out the office in the back, putting the seal on the wall, getting some of the staining of the doors to match all the dais and doors. So, that funding is currently included in the budget.
Any questions for me? Okay.
COUNCILMEMBER KENIG: We have Maureen Rogers with Finance. Welcome, Maureen.
MS. ROGERS: Thank you.
[2017R - 2018 Functional/Department Work Plan slide]
The main item on our work plan has been in and out of this budget for several years, maybe even before I came. It’s a new financial software with the capability to integrate with other major systems within the City. Our system now is about 11 years old, which is a typical end of life. Unfortunately this system is on a platform that became obsolete fairly early in the life of us having it. And it keeps books well, but there’s many things that we’re not able to move forward with. Just like Mr. Wesselschmidt said the new E-Builder software is able to have paperless workflow. When it gets to use we have to stop and print paper off and go through the paper process. And there’s a number of functions within the City that would like us to be able to upgrade. It is expensive so that’s why it’s been in and out of the budget. Obviously security requirements are much different than they were 11 years ago. And there very much needs to be enhanced security. Our processes are very entwined with Lotus Notes. And so moving to a new system would be -- allow us to get off of that. We would like to be able to provide more useful information, both inside our organization and also the public facing types of information to be able to integrate with maybe those types of software that provide that that we’re not able to do at this point.
There’s a number of efficiencies that would be possible. We’ve been researching the -- what would be involved in that cost-wise and the different vendors. There’s a fairly short list of vendors that would be appropriate for our size of city and our organization, so we’ll be looking more at that.
[Budget Highlights slide]
Then that’s, of course, one of our budget highlights. We’ve budgeted $100,000 to get us started in 17R for selection. $350,000 in ‘18. From my research so far it looks like that is a pretty good indication of -- if we don’t have to spend that we won’t. But we want to be able to get the functionality that we need to be able to move forward.
The other item is a Finance Generalist position at $89,000. This is a restored position that was eliminated during the recession. We used to have five people. As you’ve heard about all the activity and projects that are going on in all the departments and as well as the SEDC, we actually touch almost all of those projects. So, our workload has grown significantly over the last few years. Another area that really wasn’t even contemplated at the time that the position was eliminated several years ago is the tracking of all the Economic development contracts and TIFs and CIDs and TDDs. And those kind of accumulate as those go forward. And they may go on for several years. Also working with those projects as they get started. It’s really important in finance functions to be able to cross-train, to always have someone else who can step in to every function, especially critical items like payroll and accounts payable. And it’s becoming very difficult to be able to stop our regular work and say, okay, you need to go work on payroll, then stay up to date on it every so often. So, all those checks and balances and cross-training are becoming very difficult to do. So, that’s the rationale behind that position, that request. And there’s a backup sheet in your Budget Highlights about the position.
[General Fund slide]
In our budget the position is included in the 2018 under Personal Services.
There’s a little bit of an increase in contractual services. Here in a couple months we’ll be bidding out our audit services. And so we put in a little extra not knowing what those bids would come in. We’ve been with our current auditor for quite some time. In the Commodities, there’s an increase in ‘18 for the maintenance for a new system. Not sure what the timing would be on when that would kick in. We already pay around $35,000 a year for the system we have in maintenance. And so we put in another 50. I don’t know whether there would be overlap. If that’s not needed, we would definitely not use it.
If there’s any questions.
COUNCILMEMBER KENIG: Okay. Thank you.
COUNCILMEMBER KENIG: Welcome. Last presentation.
MR. BUNTING: Yeah, the last. We’ll save the best for last.
[2017 - 2018 Functional/Department Work Plan slide]
Well, guess what our first set of slides are? The Information Technology work plans, our focus has been predominately on the Lotus Notes reset. We’ve been vetting out a lot of applications, solutions specifically for our software applications. And that’s been a, oh, to be honest with you a three-year endeavor. We’ve looked at a lot of applications solutions and they just don’t meet what we’re trying to do. We believe we’ve found an application that will help us. It’s an application development tool called OutSystems. And we’re going to be vetted that out here over the next year or 12 months. It’s a rapid application development architecture. It helps us build out an application ASP, then the new .NET. And also allows us to deploy a mobile device application. It’s a pretty slick application and we’re really excited about what this application can do. And we’ve spent a lot of time and energy trying to find this application. So, we feel like we’ve got it. Keep our fingers crossed.
We also will be vetting out or researching our next generation of e-mail. And so we’ll be looking at that as we move forward. Also we have a large support role and we’re supporting the Police Department, Finance Department, HR, and even the web and all those applications, so.
Our networking hardware, we’re going to be resetting our networking hardware. It’s hard to believe that all our networking equipment has a rule of thumb is ten years old. It’s been running in the closets 24 hours a day, seven days a week. It does not take holidays off. And that equipment currently is at end of life and it’s going to be end of support within the Cisco world. So, what that means is we’ll no longer get IOS updates, security patches if there’s vulnerabilities inside the networking equipment. So, we’re going to be resetting that equipment and looking at next generation of technology for our networking.
We’re going to continue to build out our CityWorks software. We still have a lot of applications within the Lotus Notes suite if you will that could fit in that. We kind of vet them out and work with the user departments to make sure that works in there.
Also we’re going to continue to work with our fiber, part of our fiber master plan, and I’ve got some more information on that coming up here.
Security, we touched on that briefly. We want to continue to protect our assets, our physical assets being our buildings and those employees that are inside those buildings as well as our information technology assets that we want to protect. And so we’re constantly looking, you know. WannaCry, and so that came about. And so, you know, cat and mouse. So, we’re what does that mean to us, what are we doing, how are we protecting ourselves, and what can we do to continue to stay so to speak ahead of that curve. So, that’s a big priority within our team.
[Budget Highlights slide]
So, Budget Highlights, we’re going to build out our fiber infrastructure in the western community. We have some opportunities with the new fire station potentially coming on board to see what we can do to work with the neighboring city of Lenexa as well as potentially the school district out there to see if there’s way we can co-locate fiber and get some parts and pieces in place for our fiber assets.
Just in five short years since we’ve really started putting the master plan together, real briefly, we’ve put out 13, over 13 miles of fiber. And the best part about this is we put it out under $7 a foot. That’s pretty good. When the trend was in 2012 about $15 a foot we’ve put out 69,000 feet at about a price of about $7 a foot. That includes the Quivira corridor from 65th to 87th. It also includes City Hall to the Justice Center, Nieman corridor from Johnson Drive to 75th Street, 75th Street from Nieman to Quivira, 67th from Nieman from Caenen. What did I say? 65th or 67th? Okay. So, 65th, Quivira to Nieman, 67th from Nieman to Caenen. And so that’s a really good story to tell and I feel real good to get that infrastructure in the ground and it’s a good story.
[Active Hardware Projects slide]
What you have in front of you now is basically a snapshot of our projects and what we have going on within the IT Department, support all the activities that involve technology. And this is just a refresh of what we did last year. And so it’s basically that. It shows the funding and the timelines.
The switch network, we hope to release that RFP yet this month. That will be for the 2017 money that is already in place. The laptops are five years old for the police vehicles. The E-ticketing hardware, which is the scanners, the driver’s license scanners and the ticketing, the actual printers that print off the tickets, they’re now three years old, believe it or not. And the vendor, we’re going to continue to verify that, but when we purchased that they only offered a three-year maintenance because of the high use of that equipment. It becomes wore out after three years.
[Active Software Projects slide]
This is our software activities that we’ve got going on. Most of these projects we’ve talked about in tonight’s presentation, CityWorks Phase 2 and 3, the capital improvement software. Lotus Notes reset, we talked about that.
[IT Projects - Future slide]
And then here are some projects that we have coming up in the future. If are successful with our OutSystems build-out, then we’ve got about a hundred-plus applications, 170 applications that we need to reset and build out into new architecture.
Some other things coming down the pike is that we will have new phones. We’ve got phones, believe it or not, they’re now ten years old. That’ll be coming up in ‘19 and ‘20.
[General Fund slide]
Just a budget recap. We’ve had an uptick in our contractual services. That’s mostly for software subscriptions and renewals. That cost continues to go up. We have bought some new equipment in support of our phone upgrades because some of the devices that we have are at end of life under the capital outlay.
[Equipment & Facility Reserve Fund slide]
And this is the budgeted allocations or expenditures for the Equipment and Facility Fund specifically for information technology, equipment and software.
COUNCILMEMBER KENIG: Any questions for Mel? Jeff.
COUNCILMEMBER VAUGHT: Real quick, Mel. I’m sorry, I’ve got a question for you. When we talk about, and I don’t want to sound bad, but when we look at Lotus Notes and so you talk about looking at different systems, I mean there’s a lot of cities out there that are all, I mean, it seems like, and maybe it’s the only way we can do it. I mean do we get individual cities become that different from other cities to what we’re doing? Is that different or, I mean I would like property management. You know you have a property management software and hundreds of companies basically mold into that same property management software. There’s only so many of them out there. So, I mean when we look at what we do, is it truly trying to tailor something to fit, how do I say that, you go and kind of develop a software to fit into this or do you more fit into a software? I mean you design it on this is everything we want or, I mean, or, you know, that question. And also, I mean, look at another city. I mean do cities just go to another city and say what are using and can we replicate that, or -- and I’m not trying to -- I mean I know it’s a big challenge, but it’s --
MR. BUNTING: Well --
COUNCILMEMBER VAUGHT: -- seems we reinvent the wheel sometimes.
MR. BUNTING: Yeah. So, what -- that’s a lot. That’s a lot to answer. So, what we try to do is we take each initiative or project to focus if you will, and we go out and reach out to what other cities are doing. And, you know, Lee’s Summit they’re using CityWorks. Overland Park, they went with EnerGov. Am I saying that right? No. A product that we looked at. Is it EnerGov? Okay. And we actually went with that. We did an RFQ. That was years ago because we reached out what other cities were doing and we found, okay, Stella was one of them and that was very expensive. So, you know, that was just one application or one initiative. And so we settled in – EnerGov did not vet out. Don’t want to go down too far into that, but it just didn’t work for where we were trying to go with that with a single application suite. What we try to do here at the City is we try to find an application that can address a large focus of what we try to do as a business. EnerGov, which is what Overland Park, their just focusing it, if I’m right, is just on their permitting. But we were trying to capture a whole broad base of things and they use a different application for the service request system. And so it became -- in that situation the EnerGov application didn’t work for us. So, we then went to our second RFQ selection which was CityWorks. And then we vetted that all out and went down that road. So, then we’ve also taken some of the, what I call off the shelf software solutions and we’ve been replacing some of our Lotus Notes applications in that application world. You know, our payroll application Ultipro is taking some of those applications out. So, we’ve been, you know, taking them out of the Lotus Notes world and building them up in the applications that we’ve built. We then went out, and we’ve reached out to different, even Lenexa and Overland Park, what are you using in these other areas, and we’ve been, I mean, SharePoint became part of that. CRM type applications became part of that. Salesforce became part of that conversation. I mean we’ve gone down in, I mean, we could, you know, we’ve gone down through a lot of things over the past couple years and they didn’t fit what we were trying to do, whether that was through cost or application integration. And so it became that was where came to a point where we needed to find something we could build applications. And that’s why we’ve settled in on an out systems application.
COUNCILMEMBER VAUGHT: So, is there nobody in the -- I guess I’m fascinated by that. And my wife is in healthcare and she used to work for Meditech. And so you look at Meditech, you look at Cerner and they’re, you know, they’re medical solution software and then you have components. You add to it. It’s insanely expensive. Meditech is insanely expensive. So, do you want the pharmacy solution. Do you want -- and so you can add these components all under one umbrella, but is there nobody that has a municipal software that is kind of that all-encompassing where you can choose a component too? I mean thousands of cities in this country, you think somebody would --
CITY MANAGER GONZALES: Yeah. The lines of business are so different. Essentially that’s what we had done with Lotus Notes.
COUNCILMEMBER VAUGHT: But they’re different and they’re the same. I mean you would you think that somebody would have the vision to say, I mean, at the end of the day it’s Government.
CITY MANAGER GONZALES: The lines of business that we do as a city. So, in our city we need a police records management system that can talk to the entire county and then we need a finance system and then we need a database to track projects and a citizen service request. So, there really isn’t a software product --
COUNCILMEMBER VAUGHT: Amazing.
CITY MANAGER GONZALES: -- for cities. They’re all different packages. Yeah. It’s odd.
COUNCILMEMBER VAUGHT: I mean the medical one, you look at Cerner. That’s a multi-billion dollar industry and there’s a lot more cities than there are hospitals. I mean you just think somebody would have the vision to say –
CITY MANAGER GONZALES: Yeah.
COUNCILMEMBER VAUGHT: -- how do we get -- and it is, it’s you could, well, we don’t need a court system. Okay. So, you don’t have that part. We don’t need it. So, but it’s compartments that you put together, but they all talk to each other because it’s all written on the same code. And I don’t know that’s just kind of crazy.
CITY MANAGER GONZALES: Even HR and Finance, you know, we went looking for an HR package that would do payroll and HR and there isn’t an umbrella. You would think even those two lines there would be a company that would create those two packages together with different modules that we could pick from, and there just isn’t. It doesn’t exist.
COUNCILMEMBER VAUGHT: My code writing skills aren’t enough to really accomplish that either I can tell you write now, so.
COUNCILMEMBER MEYER: I don’t think anyone was asking you.
COUNCILMEMBER KENIG: Thank you, Mel.
CITY MANAGER GONZALES: I’m just going to wrap up. I think as I told you at the very beginning of this process, which hasn’t been that long ago because we’ve got a pretty expedited process, I’m very proud of this budget. I think we all should be. We’ve worked very hard for many years. And to have these funds set up and resources to protect our assets. I did that little history of the budget kind of presentation and we’ve been using that term we need to protect our assets since about 2007. And we really have finally this year gotten to the point where those funds are funded in the places they need to be to replace equipment, to take care of our facilities, to replace our technology, to take care of our streets because of the additional revenue sources that you all approved to take care of our stormwater system. There’s just a little gap there, but we’ve made great progress. And so this budget really illustrates all of those things. And finally it has come to the point of, wow, we can really take care of the things that we own the way that we should. We have increased staffing due to especially last year your all’s increase to the budget. That has made all of us feel better. These four positions that we’re recommending as part of this budget are really the support staff kind of positions that support those out in the field positions, other than the Parks Maintenance Tech, is absolutely out in the field. But with those four positions additions this year, it’s really a good place to be. Very proud of it. There’s obviously plenty of other things back in the back part of your packet that aren’t funded, things that we need, things that we could use in the future. There will be other budgets in the future, but we’ll recommend other things I’m sure and keep moving forward. But feel very good about the budget I’m recommending to you. So, with that, June 6th we’ve kind of set as a wrap-up. If there are questions more you have about things we’ve presented tonight, if there are discussion you want to have about why I’ve recommended the things that I’ve recommended, why department heads have recommended they have we can have those discussions. Remember June 6 is the Special Call, so we will have the public hearing prior to that. But then the Committee meeting will be solely devoted to budget wrap-up. So, if there’s any direction you want to give, or you want to contact me, let me know if there’s things you want us to explore further we are glad to. Otherwise, we’ll probably come forward with just a summary document of what’s included in the budget as it was presented tonight.
COUNCILMEMBER KENIG: Stephanie.
COUNCILMEMBER MEYER: I just had one question. I know in the last meeting we had kind of a preliminary discussion about the courthouse sales tax funding. How does that get worked into the rest of the budget conversation?
CITY MANAGER GONZALES: Well, the revenue and the expenditure side are in there. I think in that one chart you’ll see where it says unallocated. And so the direction I took from that meeting was two further projects to research further, the streetlight purchase and the renovation of Station 71. So, we will track those revenues as they come in. We will keep them placeholders with those. And then through the -- so, the budget authority would be available although neither one of those projects are things we could afford to do even in ‘18 because we’ll have to accumulate some funds. So, my hope would be that we would have more discussion about Station 71 over the next six to eight months and develop a good plan for that. And once the study on the streetlights is conducted, then that would come forward too. And then you all can make that decision at that time if you wanted to allocate that revenue for those projects. Does that work?
COUNCILMEMBER KENIG: So, to follow-up on Stephanie’s question, so is six, eight months, is that the timeline? When is like the drop dead date that we have to make a decision to allocate those funds?
CITY MANAGER GONZALES: You don’t. You don’t.
COUNCILMEMBER KENIG: Okay.
CITY MANAGER GONZALES: I mean they are in the budget. They will carry over. If not spent we aren’t going to spend them until you all approve expenditures for them. So, they’ll just be part of our reserves. But we will know to the penny how much that they are.
COUNCILMEMBER KENIG: Okay. Any final wrap-up questions, comments, discussion from the Council? Well, that concludes our presentations for tonight. Is there anybody from the public that wishes to comment on any items tonight? Please don’t all speak at once. One at a time. Okay.
COUNCILMEMBER SANDIFER: Motion to adjourn.
COUNCILMEMBER MEYER: Second.
COUNCILMEMBER KENIG: This item was for informational purposes. So, we have a motion and a second. All those say aye.
COUNCILMEMBER KENIG: All those opposed. We’re adjourned.
[Therefore, the motion was made by Councilmember Sandifer and seconded by Councilmember Meyer to adjourn. The motion carried 7-0.]
(Shawnee City Council Committee Meeting Adjourned at 9:59 p.m.)
I certify that the foregoing is a correct transcript from the electronic sound recording of the proceedings in the above-entitled matter.
/das May 29, 2017
Deborah A. Sweeney, Recording Secretary
Stephen Powell, City Clerk