2026-09-22 - City Council Workshop
Summary
Based on auto-generated captions; names and numbers may be misheard. The video opens with the regular City Council meeting (about the first hour) before the workshop begins.
Regular meeting
- Council approved the September 8 and 15 minutes and, on the Board of Bids and Contracts report, awards including $467,850 for water and sewer work at Bridger at Central Addition phase 2, $428,451.85 for utilities and paving at Pier Point Acres Second Addition, a three-year $528,214.58 renewal of the NEOGOV hiring software, and $268,695.24 for airport vehicle movement area transmitters; riprap bids were rejected.
- Mayor Wu received gift-limit exceptions for the Heartland Summit in Bentonville (estimated $1,710) and the Aspen Ideas Economy Forum in Tulsa ($1,200), at no expense to the city, and the council made one District Advisory Board appointment.
- During the public agenda, council voted to open one-minute comments to additional speakers. Housing developers asked the city to ease infill barriers and one nonprofit asked it to waive or reduce a letter of credit for public infrastructure on a 44-home project (see Infill Housing Barriers and New Leaf Grove Letter of Credit). A neighboring business owner asked the city again for action on the Commodore property (see Commodore Property Nuisance).
- Consent agenda item 3A, a lease of the Woodland Park and North Park facility at $500 a month for a one-year term with four renewals, was discussed separately.
Workshop
- Water plant power failure: After a power blip on September 16, staff manually switched to generators ahead of storms, a long-standing practice. A third generator failed to start because of a programmed set point, causing a protective shutdown and a pressure drop at Central and Main from about 90 to 40 PSI in four minutes. Power returned about 5:45 a.m., a boil water advisory was approved by the state health department, and testing found no contamination. The set point was lowered, pre-storm manual switching is paused, and a root-cause assessment is expected in about 30 days. Council members asked about alerts for apartment residents. See Water Plant Power Failure and Boil Water Advisory.
- New water treatment plant: Performance testing was accepted September 10 and the certificate of occupancy signed; test water of up to 17 million gallons a day is flowing, with full operation around the second quarter of 2027. The project budget is $557 million against $553 million initially approved in 2019. See Water Treatment Plant Startup.
- Nutrient removal and odor control: The $387 million project approved in March 2024 is 65 percent complete, with no new funding requested so far. See Biological Nutrient Removal Project.
- Bleckley drainage: Limits are now Kellogg to Elm; phase one is substantially complete, and the total budget is $36 million ($13.8 million approved February 25, 2025 plus $22.2 million in the 2027 to 2036 capital plan). See Bleckley Drive Drainage Improvements. Paul Gunsman presented.
- Legislative preview: Staff outlined 16 topics for the election-year session, led by property tax relief, the state budget deficit, local control and preemption, and water. See 2027 State Legislative Priorities.
- Economic development tools: Finance staff and the Greater Wichita Partnership reviewed the city's incentive history and tools (17 community improvement districts, TIF districts, STAR bonds and industrial revenue bonds, which carry about $498 million of new assessed value). Council members broadly favored reviving the Neighborhood Revitalization Area program, using the Rural Housing Incentive District, scaled abatements and benchmarks. Maggie Ballard proposed a task force; the mayor asked for better public reporting on outstanding bonds. A new economic development director is expected by the end of October. See Economic Development Incentive Tools Review and Economic Development Task Force.
Issues discussed
- Water Plant Power Failure and Boil Water Advisory
- Water Treatment Plant Startup
- Biological Nutrient Removal Project
- Bleckley Drive Drainage Improvements
- Economic Development Incentive Tools Review
- Economic Development Task Force
- 2027 State Legislative Priorities
- Infill Housing Barriers and New Leaf Grove Letter of Credit
- Commodore Property Nuisance
Related information
Related to Water Plant Power Failure and Boil Water Advisory: On September 16, 2026 at about 5 a.m. the main water treatment plant, more than 80 years old, lost power for about 45 minutes while on backup generators after the previous night's storms. The pressure loss triggered a boil water advisory covering about 500,000 people in Wichita, Derby, Rose Hill, Valley Center, Bel Aire, Benton, Kechi, Park City and three rural water districts, and some schools closed. Wichita's advisory was lifted the evening of September 17 and the surrounding communities' by September 20 after testing found no bacteriological contamination.
- KCTV5, Wichita boil advisory impacting about 500K water customers remains in effect (2026-09-16)
- KCTV5, Wichita boil advisory impacting about 500K water customers, cancels school for some students (2026-09-16)
- KCTV5, Boil water advisory update: City of Wichita provides insight into when order could end (2026-09-16)
Sources
Video
Transcript
These are auto-generated captions; names and numbers may be misheard.
Transcript
00:01Madame clerk, please call the first
00:03item.
00:06>> Approve the minutes of the regular
00:08meeting September 8th, 2026 and
00:11September 15, 2026.
00:15Council members, any items to be edited?
00:18I see none. With that, I move to approve
00:20the minutes for meetings for September
00:238th, 2026 and September 15, 2026.
00:27>> Second.
00:28>> Motion second. discussion. See none. All
00:31those in favor say I. I. All those
00:34opposed, same sign. Motion passes. 70.
00:38Madame clerk, please call the next item.
00:45Public agenda. From the city's recently
00:48adopted civility pledge. The city
00:50council is committed to promoting
00:52civility. They stand united. They lead
00:55with respect and dignity. and they honor
00:58every resident and all communities. They
01:01are working to create an environment
01:02that values shared goals with increased
01:05empathy and genuine dialogue. We now
01:08come to public agenda. The public agenda
01:11allows for up to five speakers to have
01:14five minutes each to address the
01:16council. Please bear in mind that this
01:18is not a period of dialogue with council
01:21or a question and answer period. This is
01:24your opportunity to address the city
01:26council with your concerns. I ask that
01:29you address your remarks to the city
01:30council as a body and not to any
01:33individual council member. No action
01:36will be taken relative to items on the
01:38public agenda other than referral to the
01:41city manager for information as
01:43necessary. Speakers will speak into the
01:46microphone. Please state their name and
01:49address for the record. A time clock
01:51will display the speaker's remaining
01:53time to speak. Order and rules of
01:55decorum will be observed. The first
01:58speaker is Naylor Bay Youth, Economic
02:03[snorts]
02:03Tools for Housing Projects.
02:13>> Good morning. My name is Dela Booth from
02:15312 South Laura Street, Witchaw.
02:19Thank you for taking the time to listen
02:21to my remarks. I am um a longtime
02:23Witchaw resident and business owner,
02:25very involved in our real estate
02:27communities. Um as you guys prepare to
02:29have your workshop today, I just wanted
02:31to share some experiences we've had in
02:34the market. Um my partners and I have
02:36been developing uh workforce housing
02:39here in Witchaw and have several
02:40projects, one that's complete and two
02:42that are in the works and hoping to
02:43bring more to the table. Um, I've also
02:46participated in the landlord tenant um,
02:48task force and I'm very committed to
02:51continuing to improve our housing
02:53standards in the community as well as
02:55affordability. Um, and that's what we're
02:57hoping that we can work with the council
03:00um, to achieve. Uh, as far as the
03:04challenges, um, what we find is that for
03:07lowincome housing, there are resources.
03:09For luxury apartments, there's the
03:12necessary rents to make those
03:14sustainable, but it's the middle of the
03:16road that's really the need. And that's
03:19where I think a partnership between
03:20municipalities and private developers
03:22needs to happen to make more of that
03:24come online. And really that challenge
03:27of economics goes into a lot of
03:29different things. So what we've seen is
03:31when you don't have enough inventory,
03:33rent rates go way up. And that's what's
03:35happened. And recently we're also facing
03:37a lot of other expenses related to just
03:40the operating environment from
03:41construction costs, materials with
03:43tariffs, interest rates, labor costs,
03:46gasoline prices. All these things are
03:49real costs that inflate what it takes to
03:52build a project. However, rent rates
03:54can't just continue to go up in tandem
03:56with that. But banks require a debt
03:58service coverage ratio to give you a
04:01loan. And so if you can't cover the uh
04:05debt service by 1.2 1.25,
04:09you can't get a bank loan. And so, um,
04:13as the construction costs are pretty
04:15much the same in every neighborhood,
04:16rent rates aren't necessarily. Every
04:19neighborhood has different economics.
04:20And so, the neighborhoods that really
04:22need the most development in the core
04:24are very limited by those variables. And
04:27that's where we see a disparity and why
04:29housing hasn't come online in many of
04:31those situations. Um, and we know for
04:34the city it's actually economically more
04:36beneficial to use infield development as
04:38there's already infrastructure in place
04:40and just continuing to have a sprawl to
04:43the outskirts.
04:44Um, so
04:48as we try to do more infield
04:49development, those are kind of some of
04:51the limiting variables that um, you
04:53know, we have to figure out how to
04:55address that economic gap. And there are
04:58three areas that I see how the city
05:00could potentially help us to achieve
05:02these joint goals. Uh first is
05:05streamline the development process. So a
05:08lot of times there's a very clear
05:10process for more of the suburban
05:13development, but in infill core
05:15development, it's a lot more challenging
05:17and it's not clear. So sometimes the
05:19approval processes can take six months
05:22whether it be zoning um getting certain
05:25permissions that we're going to tie up
05:26into city mains all these kind of little
05:28details and so a developer has to spend
05:30hundreds of thousands of dollars to get
05:33to that point before they ever know if
05:34they can even build or not. And so I
05:37think there's some things that could be
05:38done to help with zoning. like if you're
05:41building this type of project in this
05:43area, you know, let's simplify the
05:45zoning process so we don't have to take
05:47three months or have clear standards of
05:50how those infrastructure components tie
05:52in or approvals. Um the decisions need
05:56to happen early and consistently because
05:58that's where the confusion comes from
06:00and every month you have holding cost is
06:02tens of thousands of dollars and all of
06:04that eventually either goes back to rent
06:06or you don't have a sustainable project
06:08to move forward on. Um the second area
06:11is infrastructure. So like I said, the
06:13benefit of infill should be uh that
06:16there's infrastructure
06:18um already available. But we found that
06:20we have to put in fire hydrants. We have
06:22to sometimes pave alleyways. And at Hyde
06:25Park, for example, for 800 square feet
06:28of alley paving, the bid was $38,000
06:31and it should be about $6,000. But
06:33because of some of the um costs that go
06:37into uh the requirements of the PPP
06:40bond, civil engineering, things of that
06:42nature, um it's quite costly. So I think
06:45if there was a way for the city to help
06:47participate in infrastructure
06:49improvements with the developer because
06:52everybody gets the benefit of that, it
06:53would be highly advantageous. And the
06:56third is to create predictable
06:57incentives for infill workforce housing.
06:59And so things that don't require
07:02or legal direction that are really
07:05costly but maybe more simplified
07:07processes. I'm going to run out of time.
07:09There's a lot to cover. But uh anyway,
07:11our larger point is simple. We just want
07:13Witchaw to have more attainable housing
07:16and we want to make it easier to produce
07:18that. Um I have some leave behinds for
07:20you guys. I know that's probably
07:46Thank you, Nella. Can you please, Madame
07:49Clerk, call the next individual,
07:53Eric Leschuk, Infill Housing Challenges.
07:58Morning,
08:02[clears throat]
08:04council and mayor. Um,
08:07appreciate you guys pri uh prioritizing
08:09housing and um and as a as a priority in
08:12our city and visiting our projects. Um,
08:15you guys have made decisions based on
08:18what we've told you and then you've been
08:19able to come and see, you know, what the
08:22result is. I'm here really to talk about
08:25um the real world challenges a lot like
08:27Nella. Uh a little bit about myself, you
08:30know, um 30 years of self-employment,
08:34entrepreneur, business owner, been in
08:37our community, called it home for 40
08:39years, lived every in all the districts
08:42pretty much that you represent. Um so
08:44I'm not from one side of town or
08:46another. I've lived all over, so I've
08:48seen all of it. Um,
08:52we also, uh, but for the last 20 years,
08:55I've had my businesses in the core of
08:57the city. So, I travel a lot, obviously,
09:00downtown and see a lot of what's going
09:02on and what's what the opportunities
09:04are.
09:06I'm here just kind of to represent the
09:08team of people that are working on
09:10infill housing projects in in the core
09:14of the city, whether it be the
09:15subcontractors,
09:17um the con, you know, construction
09:19company, um the different uh small the
09:23small subcontractors like, you know,
09:25Midwest Fire, uh Electric Tech, uh Hard
09:29Layer Services, you know, the investors,
09:31the John's, the Mats, the Peters, the
09:33Tims, the Tererry's, the Chases of the
09:35world. You they're all local folks
09:38wanting to improve our community and um
09:41and offer a product that uh that fits
09:44that mid range. Uh as Nella said,
09:47there's a lot of help in the lower area
09:50and then above area takes care of
09:52itself. Uh but that mid-range is a very
09:55difficult challenge in a u in all a
09:58changing environment which she covered
09:59most of that. So, the process, the
10:02investment, and the construction costs
10:03are kind of my focus. Um, back to the re
10:08reszoning and uh working with all the
10:11different departments, which they all do
10:12their job and uh we've been very um it
10:16it's worked out well, but there's just
10:19nobody doing the whole job. It's really
10:21up to the the creator to figure it all
10:24out and to keep the ball moving. Um time
10:28is attack. she kind of covered that the
10:30longer things take uh it just goes in,
10:33you know, it's something you don't see
10:34on the spreadsheet, but it goes into the
10:36cost. It just does. Infrastructure is
10:38the other one which she's mainly covered
10:39that as well. Um
10:43but I did want to talk about um the tax
10:46base. You know, we want we we like
10:49win-wins. We like win for the investor.
10:51We like win for the tenant. We like win
10:53for the community, win for the city. Um
10:57when you do infield development on
10:59subacre lots, the tax base is enormous
11:04for our community and it's a way that
11:06you know we've already got the
11:07infrastructure mainly there. Um
11:10everything just has to work a little
11:11harder. We don't have to add more
11:13generally to it. and with the the
11:17subacre we had this conversation with u
11:20with one of the members you know with a
11:22bait what I call housing tools
11:24abatements IRBs you know infrastructure
11:28those are things that everybody can win
11:31immediately so for instance at second
11:32and piatt where we're looking at doing a
11:34property that's been vacant for 30 years
11:37the tax revenues say $500 a year the um
11:41property tax value immediately after
11:45that's built, if it's built, and that's
11:47really the question we want you guys to
11:49entertain is how do we supercharge more
11:51people want to take that risk. Um, even
11:55at a 85% abatement, let's just use that
11:58as a for 10 years. The immediate revenue
12:01to the city is like $9,000, $910,000
12:05year one. And then in in year 11, if
12:07it's a 10-year deal, it doesn't just
12:10inch up, it jumps up. it goes to 60 70
12:13$80,000. So if you have if we have these
12:16projects going along in the core of the
12:18community, we make the city makes more
12:21money for their resources and then
12:23eventually it really makes a lot more
12:25money compared to other things that
12:26could be um done on those particular
12:29lots.
12:31Obviously
12:34the the housing tools need to be limited
12:36and uh and time uh but also you know
12:40with the infrastructure uh uh the
12:43infrastructure is does go directly to
12:45the rents whether it be several things
12:47that she mentioned whether it be fire
12:49hydrants or so forth and so on. My four
12:52practical asks are develop a point
12:54person for this project. You know that
12:57that not only the the creator can do
13:00this but then that point person so when
13:02you run into a zoning issue you run into
13:04where's the water man coming from
13:06where's the water come all these
13:08different challenges that that affect
13:10these projects that someone's champion
13:13that process so it just doesn't take
13:15months. um created maybe an automatic
13:18zoning section with the standards that
13:20that the city wants so that as if you're
13:22doing something in the core multifamily
13:25subacres sub you know you have the
13:27automatic ability and the last thing is
13:29um you know structuring infrastructure
13:32tools you know so that we can have some
13:34uh some transparency and then uh
13:37publishing a a step-by-step playbook
13:40that's the biggest thing we've ch we've
13:42had the challenge with is trying to
13:43figure everything out. So if there was a
13:45playbook, [snorts] I think more people
13:47would be encouraged.
13:49Thank you for your time.
13:54>> Thank you, Eric.
14:04Thank you, Eric. Madame clerk, please
14:06call the next individual.
14:09>> Matthew Tanahill, New Leaf Grove.
14:16>> All right. Good morning, mayor, city
14:18council members. Again, my name is
14:19Matthew Tanahill and I serve as
14:21president of One Rise, which is the
14:23organization residing in 67217,
14:25uh, Council Member Dalton Glass Cox, uh,
14:28district here. Uh so I appreciate the
14:29opportunity to introduce you to New Leaf
14:31Grove, a supportive transitional housing
14:33community we are developing on the
14:35campus again in South Witchah. Um we're
14:39proud to be investing in this part of
14:40Witchah and believe New Leaf Grove can
14:42become an important asset for not only
14:44District 4, but for the broader
14:46community. Uh at One Rise, our focus is
14:48on the space between crisis and
14:51long-term stability. We're fortunate as
14:53a community to have some incredible
14:55organizations responding to mental
14:57health challenges, substance uh misuse,
15:00violence, homelessness, and other
15:02crisis. But one of the challenges we
15:04continue to see is what happens next. A
15:07person can successfully complete
15:08treatment, stabilize their health, or
15:10move through a crisis and still face
15:11tremendous barriers if they do not have
15:13a safe place to live, employment
15:15opportunities, transportation, or a
15:18support system around them. New Leaf
15:20Grove is being created to help address
15:22that gap. Uh the community will provide
15:24a small highquality homes and a
15:26supportive environment where individuals
15:28can work uh can continue working with
15:30community partners while rebuilding
15:32stability, pursuing employment, and
15:34preparing for independent uh housing.
15:36This is not intended to be permanent
15:38housing, but the goal is progression. We
15:40want someone to come to New Leaf Grove
15:41at a difficult transition point in their
15:43life, have the time and support
15:45necessary to become stable and
15:47ultimately move forward into independent
15:49housing and make that home available for
15:51the next person who needs it. Uh, one of
15:53the things that also makes the project
15:55different is how we are building it. We
15:57are partnering with Prime Craftsman
15:58Homes, a witchaw modular manufacturer uh
16:01to construct construct the homes locally
16:03while much of the infrastructure work is
16:05occurring on the Wonder Ice campus. uh
16:07instead of waiting for all roads, water,
16:09sewer and other infrastructure to be
16:11completed before vertical construction
16:12can begin. Uh the modular approach
16:15allows those processes to happen
16:16concurrently. [snorts] Uh our
16:18expectation is that the majority of
16:20these homes can be substantially
16:21complete while the public infrastructure
16:23is being completed. Once the sites are
16:25ready, the homes can be transported and
16:27installed. Uh that creates an
16:29opportunity to deliver needed housing
16:31much faster than a traditional uh
16:33sequential development model. This also
16:36changes the risk picture for the city um
16:39is being weighed to ask. A letter of
16:41credit exists to protect against
16:43infrastructure stalling out while
16:45nothing is built to show for it. Because
16:47our homes are manufactured concurrently
16:49and delivered to the sites as
16:51infrastructure near completion, we
16:53aren't asking the city to extend
16:55confidence towards homes that exist only
16:57on paper. By the time the public
16:59infrastructure is subsequentially
17:01completed, the homes themselves are
17:03already built, staged, and ready for
17:05placement. A tangible asset sitting on
17:07site, not a future promise. That's a
17:09materially different risk than the one
17:12the letter credit requirement was
17:13designed for. And we think it's directly
17:15relevant to how the city thinks about
17:17supporting a project like this. And that
17:19brings me to why uh I'm here today. One
17:22arise is asking the city for assistance
17:24regarding the letter of credit
17:25associated with the public
17:26infrastructure for this development. Um
17:29we understand why financial guarantees
17:31exist. The city has a responsibility to
17:34make sure public improvements are
17:35completed and that taxpayers are
17:37protected. Our challenge is that one is
17:39a 501c3 not for profofit. Unlike a
17:42traditional developer, we do not have
17:44large amounts of unrestricted uh
17:46development capital sitting on a balance
17:48sheet. The dollars we raise are intended
17:50to go directly into homes,
17:51infrastructure programs, and ultimately
17:53serving people. Uh when significant
17:56financial uh capacity has to be reserved
17:58to support a letter of credit, the same
18:00capacity cannot be deployed into moving
18:02the project forward. Uh we have already
18:04secured the funding for the first 20
18:06homes and the community care center.
18:09Those gifts were made to build them. If
18:11that donor money has to be redirected to
18:13support a letter of credit, the impact
18:15goes beyond timing. It would delay
18:17homes. It could affect the future giving
18:19because donors need to see their gifts
18:21going into homes and programs not held
18:23in reserve. Our request is not about
18:25avoiding our responsibility to complete
18:28the infrastructure. It's about finding a
18:30way for the city to recognize the unique
18:32structure of this non-for-profit project
18:34and help us keep limited charitable
18:36capital working directly in the
18:37development. Uh, New Leaf Grove uh,
18:40represents what we believe can happen
18:41when philanthropy, nonprofit
18:43organizations, local government, and
18:45private sector partners work together.
18:47We're excited to make this investment
18:4867217 and District 4. We appreciate the
18:51city's consideration and continued
18:53partnership as we bring uh to these
18:55these homes to our community and the
18:57opportunities that come with them. So,
18:59thank you all.
19:01>> Real quick, if I may, mayor, um, how
19:03many homes are you looking to uh, get a
19:05letter of credit for? So right now for
19:08the developments 20 20 homes um for
19:11phase 1 A.
19:12>> Okay.
19:13>> Um and then the total with 1B would be
19:1544 homes and then one community care
19:17center.
19:18>> Okay. I appreciate that. Um do you guys
19:20do you know if you're on uh the rural
19:23water district or are you on city water?
19:25>> I believe we're at city water.
19:26>> Okay. Thank you.
19:27>> You're welcome.
19:28>> One last question. I know we're meeting
19:29this afternoon and so if you could have
19:31like a one sheeter of everything you
19:33said. uh the two previous speakers, this
19:35was incredibly helpful uh for the future
19:37as well with specific asks and action
19:39items and so um if there is that would
19:41be really helpful. Thank you.
19:43>> Thank you.
19:44>> What what's your bank quoting on a
19:46letter credit? What percent?
19:47>> So I believe when we look at typical uh
19:51uh
19:53uh development on this, it's about 35%
19:55of what those infrastructure costs are.
19:57So around $400,000
19:59is what we're looking Yeah. Well, I used
20:01to get a letter credit for 1% of my
20:03project value.
20:04>> Well, then I would love to follow up
20:06with you and see how you can see what
20:08the difference is.
20:09>> Yeah.
20:09>> So, Okay. Okay. I was curious about
20:11that. Thank you.
20:12>> Thank you.
20:14>> Now, the letter of credit, I should say,
20:16what's the cost of the letter of credit?
20:18>> Well, there there's no cost of a letter
20:20of credit to my understanding. It's it's
20:22it's the risk that the city puts on that
20:24to make sure the infrastructurees
20:26>> the bank charges you for letter credit.
20:28>> Yeah. I I don't have that number right
20:30now, but I can
20:31>> generally 1% of the project cost.
20:33>> Yeah.
20:33>> So, what's your total project cost?
20:36>> Uh it for this first phase is around
20:38$2.3 million.
20:40>> Okay. Okay. Thank you.
20:42>> Thank you.
20:48>> Thank you, Matt. Madame clerk, can you
20:50please call the next individual?
20:54>> Leanne Miller, New Leaf Grove.
21:03Good morning, council and mayor. Um,
21:05Leanne Miller. Um, I reside at 906 North
21:08Bo Jardan in Derby, Kansas. I'm a
21:11lifelong Witchan. Um, born and raised.
21:15Good morning and I appreciate the
21:16opportunity to speak with you today. Um,
21:20I work alongside Matthew um and our
21:23partners in advancing the vision and
21:24mission of One Rise and New Leaf Grove.
21:27Matthew talked about why New Leaf Grove
21:29is needed and I want to spend a few
21:31minutes talking about how we are
21:33approaching the project and why the
21:36city's partnership at this stage is
21:37important. This is a project being built
21:40right here in South Witchah in 67217 and
21:43District 4. And whenever possible, we
21:46want that investment involved um in
21:49creating to benefit our local community
21:51as well. From the beginning, we have
21:53challenged oursel to ask a simple
21:55question. How can we deliver quality
21:56housing more efficiently without
21:59sacrificing the dignity or the quality
22:01of the home? That is one of the reasons
22:04we're partnered with CRA Prime Craftsman
22:06Homes. Prime Craftsman Homes builds
22:08modular housing here in Witchah. Rather
22:10than constructing each home entirely
22:13outdoors at the project site, the homes
22:15are built in a controlled manufacturing
22:17environment and then transported to the
22:19development for final installation. For
22:22New Leaf Grove, the changes um the ch
22:25that changes the development timeline
22:27considerably. While contractors are
22:29working on roads, utilities, drainage,
22:32and the other infrastructure needed to
22:33support the community, prime craftsmen
22:36can simultaneously be building the homes
22:38within about 30 days. Um, those are
22:41normally two processes that would
22:43largely occur one after another. For New
22:45Leaf Grove, they can occur at the same
22:47time. Our plan is that as public
22:51infrastructure approaches completion,
22:52the majority of the homes will also be
22:54approaching completion. That means we
22:57can move much more quickly from
22:58development to actual occupancy. And for
23:01us, speed matters. Not because we want
23:04to cut corners, but because shortening
23:06the development timeline allows these
23:08homes to begin serving the community
23:10sooner. It's worth pausing on what that
23:12means from a risk standpoint since I
23:15know that's part of today's broader
23:16conversation about how the city supports
23:19project like ours. The letter of credit
23:21requirement, as Matt mentioned, um,
23:23exists to guard against unfinished
23:25infrastructure with no offsetting asset
23:28behind it. But because the homes are
23:30being built offsite while infrastructure
23:32work is underway by the time the roads
23:34and utilities are substantially
23:36complete, the homes aren't a projection,
23:39they are already on site, ready for
23:41final installation and occupancy. In
23:44that sense, the delivery model itself
23:46functions as a form of security. It
23:48shortens the window of exposure and
23:50reduces the odds of a half-finish
23:52project which is exactly the risk and
23:54letter of the the risk the letter of
23:57credit requirement is meant to address.
23:59There is one other um side of that
24:01equation though and that's financing. Um
24:05as a nonprofit onerise has to be
24:07extremely intentional with every dollar
24:10of capital available to us. New Leaf
24:12Growth is being developed for a
24:14charitable purpose. The financial
24:16resources we raise and borrow are being
24:18assembled to create the infrastructure,
24:20construct the homes, and establish a
24:23community that can serve people for
24:24years to come. That is why the letter of
24:27requ letter of credit requirement has
24:29such a significant impact on a project
24:32like ours. We recognize the purpose of
24:35the city's financial projections and the
24:37importance of ensuring that
24:38infrastructure is completed. But when a
24:41nonprofit has to dedicate significant
24:43financial capacity to a letter of
24:45credit, those resources are effectively
24:47unavailable for the construction we are
24:49simultaneously trying to advance. For an
24:52organization with limited unrestricted
24:54capital, that can have a very different
24:56impact than it does for traditional
24:58development.
25:00We are therefore asking the city to
25:02consider waving the letter of credit
25:04requirement for this project while
25:06maintaining the appropriate
25:07accountability for completing the
25:09infrastructure. New Leaf Grove brings
25:11together nonprofit leadership, local
25:14manufacturing, philanthropy, private
25:16sector expertise, community service
25:19partners, and local government. And the
25:21result is more than the construction of
25:23houses. It is creating a pathway for
25:26those who are receiving our services
25:29from crisis to sus to disability to
25:32employment, independence, and ultimately
25:34a permanent home somewhere in our
25:37community. We appreciate the city's
25:40consideration and its continued
25:42partnership with OneIrise and with this
25:44this investment in district 4. Thank
25:46you.
25:48>> Thank you, Leanne. I actually have a
25:49couple questions. Sure. First and
25:51foremost, uh for folks that don't know,
25:53this is Meridian and I235 wi which is
25:56where uh the new um mental health
25:59hospital will be built or is being
26:02built. Can do you know when that will be
26:04completed and when your project is
26:06supposed to come online? Kind of talk
26:08about the timeline.
26:09>> So the state psychiatric hospital will
26:11be completed and we don't have control
26:13over this. This is a state project. Um
26:16they're anticipating the end of
26:18December, first part of January. They
26:20hope to be operational in the first part
26:22of February. They will be bringing
26:23clients online um very slowly as they st
26:27they staff up and are able to ramp up.
26:30Our project um has been slowed um due to
26:34site improvements, the letter of credit
26:37um and we have the capital ready to
26:40deploy for the homes. Um and we have the
26:43land donation um as well as um a lead
26:46contribution um from Prime Craftsman and
26:49Mr. Steve Felmmyer. Um so when we can
26:52move forward with the site improvements,
26:55we will be ready to deploy. We
26:57anticipate probably early spring
27:02>> and more on that timeline. Um what
27:04you're asking for is something that
27:06you'll be speaking with uh council
27:08member for that district, council member
27:10Glascock, but my question then was uh
27:13you talked about a waiver, but also we
27:16as a council want to protect taxpayers.
27:18So what types of guarantees in terms of
27:21timeline that would be able to show um
27:25that you're going to complete this this
27:27at a specific time frame?
27:32Yeah, I'm gonna have Matt come up and
27:33answer that question.
27:38>> So, we'll be working with Lane
27:39Development team to carry out the
27:41improvements on that, but Prime
27:42Craftsman Homes has indicated what their
27:44timeline would be for the housing
27:46specifically. Um, speaking with Prime
27:48Craftsman, they look typically look at a
27:5030-day window for building those homes.
27:53And so as quickly as we can get um the
27:56petitions filed and get everything going
27:58um I mean we would follow the timeline
28:02that's set out by the development team
28:03to carry that out as effectively as we
28:07can
28:11>> and the infrastructure improvements. I
28:13think one of the questions that council
28:15member Hohisel asked was this is still
28:17within the city limits of Witchah. So
28:19this is Witchaw water. Um, how long are
28:22you anticipating these um, public
28:24improvements to be constructed and is
28:27there a timeline for those?
28:28>> I believe I believe and I'll I'll double
28:31check on this, mayor, and get you
28:32accurate statements here, but from
28:34timeline for when that starts to when we
28:36could start private infrastructure, I
28:38think they're looking from a four to
28:40five month time frame.
28:43And on that, mayor, I do believe that um
28:45it was uh county until we started this
28:49project and then it got pulled in. So
28:51that's why I was asking about the rural
28:53water district because I know there's
28:55some issues out there as far as um water
28:58stability. So that might be something
29:00that we look into as far as improving
29:03that particular area as well.
29:05One of the things that the development
29:08team has shared with us um is because of
29:10the hospital where we're actually laying
29:13out this project, it's very close
29:15proximity to the hospital. So we our
29:18costs for infrastructure are a little
29:20bit less because there's actually a road
29:22that's already going in. So we plan the
29:24development according to that to try and
29:26help reduce some of those costs.
29:30I'm I'm curious how this is going to
29:32contribute to the coordinated care
29:34system that we are working to promote in
29:38terms of making sure that we're all
29:40working together. You talked a lot about
29:42Prime's craftsman's homes and and I'm
29:45curious how you're working with our
29:46housing department and how are we going
29:47to ensure that we're creating an
29:48ecosystem that works together and
29:50doesn't compete against each other.
29:52>> Do you want to answer? You want me to
29:54answer? speak to. So we actually haveus
29:57already in place within the ecosystem.
29:59Second light is one of those. Um
30:00Breakthrough Episcopal Social Services
30:02is one of those. Um Habitat for Humanity
30:05um as well as other partners like Wu
30:07Tech uh in terms of employment and their
30:10new financial tech university. So our
30:12our our vision within this is to be a
30:15convenor. So when we look at the
30:18projects that are already happening
30:19within the ecosystem of those that we
30:21intend to care for, it's how can we be a
30:24good steward to those things that are
30:25happening. I know speaking with um mayor
30:28um and working with the housing
30:30department here with the city is another
30:32aspect of that as they look at
30:33developing their housing on the second
30:36light side and how we can be a
30:37continuation for those that are in that
30:39facility as well. So it's very
30:41strategically thinking and we want to
30:42make sure that uh the greater ecosystem
30:45is felt as the work that we do is
30:47carried out.
30:48>> Um so when you sayou will you be using
30:51our HMIS system?
30:53>> So we would be working we we would want
30:56to work with the COC system. Um we
30:58haven't dove into if we would be in the
31:00HMIS system but if we're going to be
31:02coordinated entry with those that are
31:04experiencing homelessness then yeah we
31:05would want to be a part of that system.
31:06I would really like to see that,
31:08especially if we get to the point where
31:10we give this letter of credit. Of
31:12course, I'll let the council member um
31:14whose district it's falling in lead on
31:15that. I would love to have a follow-up
31:17conversation following him out of
31:19respect for him. Um but I think we need
31:22everybody who is participating in the
31:23ecosystem to utilize that HMIS system so
31:26we can track the data and also track the
31:28measurable success.
31:29>> Absolutely.
31:33>> Thank you, Leanne, and thank you, Matt.
31:35Thank you for your time.
31:37>> Madame clerk, please call the next
31:38individual.
31:41>> Leanne Miller.
31:43>> I'm sorry, Alison Bell. Deteriorating
31:46conditions downtown and on Broadway.
31:51>> Hello.
31:52Good morning, mayor and members of city
31:54council. My name is Dr. Allison Bell,
31:56and I was here just six months ago to
31:58discuss the Commodore property. As a
32:00quick reminder, I own an ABA service
32:01clinic on at 609 North Broadway,
32:04immediately adjacent to Commodore. Six
32:06months ago, I stood up here and I asked
32:07the city council for help with the
32:08Commodore property. I want to take take
32:10a second to make sure that Councilwoman
32:12Ballard understands how thankful I am to
32:14her and her immediate response. Maggie
32:16has been extraordinarily attentive,
32:17responsive, and genuinely helpful
32:19through this entire ordeal. Her and
32:21MACBD have been working aggressively,
32:23but they cannot solve a structural,
32:25legal, and criminal nuisance on their
32:27own. They need the entirety of the city
32:28council. Since January, my weekday
32:31morning has started at 7 a.m. Not inside
32:33preparing for my patients, but outside
32:35cleaning up human waste, picking up
32:36trash, asking individuals who are
32:38unhoused to move along so that my staff
32:40and patients can enter the building
32:41safely. I have been called every name in
32:43the book when simply asking people to
32:45keep moving, and kindly letting know
32:47that there are children in my building.
32:49I've been trapped in my car under the
32:51threat of violence, and I've been told
32:52that they would kill me and my whole
32:54family. I've had my car urinated on. My
32:57cleaner's car has had a peanut butter
32:58and jelly smeared all over it and a man
33:00nearly odeed in the stoop of the
33:02Commodore. This is not just an
33:04inconvenience and it's not this is not
33:06normal. This has invaded my personal
33:08life and my business operations to the
33:10point that my husband called my business
33:11partner and said that the ten that that
33:13it's not tenable for us to remain in
33:15downtown um for the sake of my business
33:18and for the sake of my mental health. So
33:20I grew up in downtown. I grew up at
33:22Maple and Cynica. I was right by
33:24Lawrence Dumont Stadium. I refuse to be
33:26run out of my own neighborhood by
33:28California business owners who are
33:30careless. So, my parking lot is
33:32consistently being used as a public
33:34toilet, a place to rest, and a dumping
33:36ground. This weekend, I cleaned up five
33:37bags of clothes that were dumped in my
33:40parking lot overnight. I spent my
33:42morning yesterday sitting in court with
33:44another or handling another issue
33:46stemming directly from an unhoused woman
33:47that is known to sit in the front yard
33:49of the Commodore who exposed herself to
33:51one of my pediatric patients in my
33:52parking lot. Over the last weekend and
33:55then again yesterday, the police spent
33:56hours clearing the building because a
33:58door leading to the basement of the
33:59Commodore was finally breached after
34:01weeks of being compromised and had been
34:03repeatedly communicated to the owners as
34:05a concern. I have done the leg work. I
34:08located the property owners. I emailed
34:09them repeatedly after finding their
34:11contact information and when their out
34:12of office replies gave me a cell phone
34:14number, I've been contacting them that
34:15way. I have gotten zero responses
34:18through any um channels that I have
34:20tried with them. The owners are
34:22completely MIA proving that voluntary
34:24compliance will not happen.
34:27I am keeping a detailed invoice of the
34:29time that I spend handling their
34:31negligence to send to them directly. And
34:32as a doctorate level board certified
34:34behavior analyst, I am certain that my
34:36billable hour is outside of their
34:37budget.
34:38I've been in this building for nine
34:40months and over those nine months, every
34:42week has gotten progressively harder to
34:43keep my staff and my pediatric patients
34:45safe. I'm asking the city council for
34:47three things. One, establish a permanent
34:49and standing no trespass directive on
34:51file with the police department so that
34:52offers officers can enforce trespass
34:55citations immediately every single time
34:56there are individuals on or in the
34:58property. I've often been told that
35:00there is nothing I can do as an adjacent
35:01business owner with individuals
35:03littering on that property even with the
35:05close proximity to my property line
35:07where is where they like to congregate.
35:09Second, I'm asking that we required the
35:11city attorney to initiate the public
35:12nuisance abatement proceedings against
35:13the odors or place it in a court-ordered
35:15receiverhip so it can be secured,
35:17repaired, and repurposed. Last and most
35:19importantly, I'd like to fix the three
35:21areas on the north and the east sides of
35:22the building that are most frequently
35:23trespassed and loitered in. until
35:25receiverhip can be accomplished. Help me
35:27eliminate the areas that are most often
35:28abused. Along the north side of the
35:30building, there's a stairwell with a
35:31door, the same one that was broken open
35:33over the last weekend. And in that
35:34stairwell, there is consistently trash
35:35and human waste. It is a place where
35:38people hide in, and I've even had to run
35:39people off who went down there to have
35:41sex when children are not more than 20
35:42ft away. to that to the west of that
35:45stairwell, there is a cove between two
35:46brick structures that leaves a small 10
35:48by7 area that people sit and hide in
35:50because there is a concrete footing to
35:52to sit on and protects them from the
35:54elements from all four sides. This is
35:56where the man nearly odeed. Finally,
35:58there's an inset doorway on the east
35:59side of the building that is often used
36:00as a community toilet and smells of
36:02human waste. The doorway has been welded
36:04shut and but but because the doorway is
36:05inset, it creates the privacy that draws
36:07people in. We cannot continue to allow
36:09Jeff Glossky in Kansas City, Jim Shu,
36:11Ryan Mansour, and Nicholas Bicklson of
36:13California to continue to be absent
36:14owners while a local Witchaw native
36:16business owner pays the price in court,
36:18lost time, and safety risks. If they
36:20won't step up, and we know that they
36:22won't, I'm asking you to.
36:24So,
36:26>> Dr. Bell, um, hearing your account of
36:29these last nine months breaks my heart
36:31and also angers me. Um, so what I would
36:34like to see from the city manager is to
36:36find out from Witchaw police and Witchaw
36:38fire how many incidents have occurred in
36:41that area solidify a real uh strong um
36:46letter to these absent owners. In
36:48addition, the three asks that she um has
36:51requested, can this be vetted through
36:53the city attorney and provide a
36:56recommendation for the city council to
36:58act upon? Um, this is unacceptable and
37:01as a longtime Witchaw resident myself,
37:04um, it angers me that you and your
37:07family would feel and your staff would
37:08feel unsafe in an area not too far away
37:11from city hall.
37:12>> Yes, I actually walked here. So,
37:15>> thank you, Dr. Bell. And I'm sorry that
37:17you have had to come back uh multiple
37:18times, but I'm grateful that council
37:20member Ballard is helping you. U, but
37:22this council also wants to help you. Um
37:25so city attorney um city manager can you
37:28please ask the city attorney uh to find
37:31a recommendation for this council to
37:33move forward with some of these items?
37:35>> We will.
37:36>> Uh mayor, I'd like to share a few
37:38things. Um Chris, could you come up from
37:40MABCD and just talk about um what has
37:45transpired in the last few days and what
37:49we're doing and what the plan is moving
37:50forward because we are being more
37:52aggressive. um because it's been so
37:55non-responsive.
37:56>> Yeah. And yes, ma'am. So, going back a
37:58little bit and Dr. Bell's been great to
38:00work with us and and help us out. She's
38:02been really good to staff and reporting.
38:03So, we've done our best to cooperate
38:05there and appreciate that. Uh we um as
38:09you all know with the title 30
38:10registration option um albeit not a big
38:15um fee in association with what they
38:18have we with with what they've got going
38:20but we had moved it to that point and
38:22stated we would disconnect the power. Um
38:24the there are cell towers on the top of
38:27this building which um is of course what
38:30uh I guess the business owners are you
38:32know getting some income from that
38:34obviously but the fact that there's
38:36electricity the building is what we feel
38:37makes it extra attractive to um
38:40[clears throat] the population. So uh
38:43when we did that they actually responded
38:45to us and did take some efforts to
38:47secure the building and to u try to
38:50police the and secure the perimeter. uh
38:52that obviously faded uh fairly quickly.
38:55Now we've gotten back to the situation.
38:57So we have now boarded done an emergency
38:59board up ourselves, secured the building
39:01the best we could and I asked EverGy as
39:03of yesterday. We started this discussion
39:05Friday and as of yesterday uh I sent the
39:08order to EverGy to disconnect the power.
39:10Um then we are informing the owners that
39:14they will need to in that they need to
39:16further inform any of their clients that
39:18they will be without power probably by
39:20the end of this week.
39:22So with the title 30 because I don't
39:24know all of the specifics about it. Is
39:26that speak to the nuisance
39:29letter that maybe we have sent to some
39:31other businesses that are
39:34using a lot of our resources um at the
39:38expense of the rest of the community?
39:40>> Yes, ma'am. And and we do serve them
39:42with a letter that uh the maximum fee
39:45for that is I think $3,500 which this
39:48building is large enough it would incur
39:50that. uh and then uh they are required
39:53to pay that registration fee and then to
39:54provide us with their plan for uh
39:58correction of of the issues that we
40:01identify.
40:02>> Is there a way to be more aggressive on
40:05the fee because I feel like we have
40:07tried to work with them and have been
40:10beyond patient along with uh Dr. bell.
40:13Um, when they're making hundreds of
40:15thousands of dollars off of the power on
40:18the roof is very hard to sit on $3,500
40:24fine and
40:26>> just feel like that is kind of
40:27laughable, but I know that that's the
40:29policy, but is there anything else that
40:31we can do to
40:34press them?
40:35>> And and that [clears throat] is a great
40:36question, ma'am. So the ordinance limits
40:38that registration fee. So I am limited
40:41by that. Uh they are being charged for
40:44the abatement actions that we take. Um
40:46outside of that I don't have any tools
40:49or authority to levy a any any higher
40:52penalties. I would have to defer to
40:54others.
40:54>> Hopefully the loss of power gets their
40:56attention.
40:57>> Yes ma'am.
40:57>> I appreciate it. Thank you for
40:58everything. And Allison, thank you so
41:00much for coming.
41:02>> I just want to make a note. City
41:04manager. Thank you Chris. Um, I I think
41:06I'm very sensitive to the topic. I I
41:09deal with things like this in district
41:11every day, including this morning. And I
41:13think there's two separate issues here.
41:15There's one regarding the the management
41:17of the property, which I heard a lot
41:18about today, but I also think it's
41:20important to recognize the humanity of
41:23the folks who may be in that area. So,
41:25if we can maybe work with our housing to
41:27get navigators out there because if
41:29there's an opportunity to get those
41:30folks help, let's get them help. Um, so
41:33that way we can engage with them.
41:35>> I have contacted the hot team repeatedly
41:37just I've I actually have many emails
41:40about specific individuals who I've good
41:42morning Sheila like making sure that
41:43I've made friends with some of the
41:44unhoused individuals that are out there.
41:46Um, so the hot team has been involved
41:49down there to some extent.
41:50>> Awesome. Thank you so much. I know that
41:52we have some resources through our
41:54housing department that might be able to
41:55help. And then also as a reminder um 988
41:59I know that we had an onbank on this but
42:01for folks who are in mental health
42:03crisis or who appear to be in a
42:05situation where they need more
42:06supportive resources utilizing that 988
42:09comare crisis center. Again I just I
42:11want to be able to separate the two
42:13issues and I understand your need but
42:15also recognizing the humanity and
42:16dignity of the individuals who might
42:18need a little bit more help.
42:23>> Thank you. Um there are five spots in
42:25public agenda, but I also see that this
42:27is a packed room. Um and I think many
42:30people don't even understand that a
42:31workshop is really simply for the city
42:34council members to get information and
42:37discuss possible policy discussions to
42:40then direct staff uh to craft something
42:43to come back during a city council
42:45meeting because of that. And um I got a
42:48text message from council member
42:49Hohheisel. Um what I would like to uh
42:52move is I move that we open up public
42:54agenda uh for anyone who would like to
42:56speak for only one minute um for the
43:00next few minutes that we have.
43:04>> Second
43:04>> motion second. Any discussion?
43:09Council member Tuttle.
43:10>> I just want to clarify with legal
43:13Jennifer. Can we do that? we have
43:15policies regarding public agenda and how
43:17long people can speak. And so I just I
43:19just want to make sure that we're not
43:20doing anything because I know one time
43:22during a council meeting it was proposed
43:24that we speak let people speak for three
43:26minutes instead of five and we violated
43:28an ordinance. So I just I just want to
43:30make sure we can
43:32>> Thank you. That's a um good question.
43:34The ordinance doesn't prohibit expanding
43:37speakers. I think we're okay to expand,
43:40not restrict rights of speakers. But
43:42thank you for raising the question.
43:45With that, we have a motion and a
43:47second. Any discussion? See none, Madame
43:50Clerk. All those in favor say I.
43:52>> I. All those opposed, same sign.
43:55>> Motion passes. 6. We will now open it up
43:58for public comment for one minute per
44:00individual.
44:01>> George The 2115
44:05South Chiakqua. Uh Mike, thank you.
44:07Thank you, mayor. Um my wife hates this
44:10shirt. That's why I wear it. Um, every
44:13citizen pays a fee on cats in six cities
44:16our size. Too hard to implement in
44:19Witchah. I guess I'm having trouble
44:22finding words. So, my wife had me go get
44:25a cognitive test. I'm glad to declare I
44:27got 30 out of 30, so I aced the test
44:30like Trump. I have been to numerous city
44:33council meetings and brought up a lack
44:36of collecting dog license fees. We are
44:39leaving over $2 million on the table.
44:41The council has no appetite to fully
44:44address this. I was chairperson of a
44:46licensing subcommittee and we put out a
44:49very good product, but police didn't
44:52want to work it. So, tomorrow at the
44:55animal advisory meeting, I'm going to
44:57bring out something that hopefully um it
45:01gets passed by our animal board and then
45:04it's brought to you. So, stay tuned for
45:075:30 tomorrow. Thank you guys for
45:09letting me speak. Would
45:14anyone else from the community like to
45:15speak?
45:24Thank you for this opportunity. Most of
45:26you know me. I'm Darcy Smith. Hope on
45:28the streets love and action. We are
45:30officially a nonprofit as of Friday. But
45:33I also want to say that as sitting here
45:35today listening about how homelessness
45:39downtown is an issue, we need houses.
45:43I go out and I talk to these people and
45:45tell them about the shelters and
45:47everything. We can't do it alone. We
45:49need you citizens to help us do this. It
45:52takes all of us to come together and
45:54love them and show them that we are
45:57there for them.
46:00people saying they're having they're
46:02urinating. Where else you want them to
46:04go?
46:06Businesses won't let them use the
46:07bathrooms.
46:09When we were hot and it's hot outside,
46:12they wouldn't even let them go into jump
46:13start and get water and ice.
46:16I was out here every day in 105 degree
46:18weather for 8 to 10 hours.
46:22Have more compassion for him.
46:25water stations, bathrooms,
46:29services downtown. I'm looking for a
46:31building downtown. Yesterday, I found
46:33one. They want $1,800 a month. I'm a
46:36nonprofit starting out.
46:39Last week, we got $45 to go towards
46:42bread and peanut butter and jelly. Thank
46:44you for allowing us to serve our meal at
46:46Second Light this month. We're looking
46:48into it next month, but dates aren't
46:52going the way that needs to. But we are
46:54there for these people and we are not
46:57going to stop. Homelessness takes all of
47:01us to help every single one of them in
47:03every single one of your guys'
47:04districts.
47:06Thank you.
47:07>> Thank you.
47:08>> Thank you, Darcy.
47:11>> Mayor, if I may, I just want to say,
47:13Darcy, thank you for your hard work and
47:16compassion and congratulations on
47:17getting that 50c3 up and running. And I
47:20agree with you 125% which is why I
47:22wanted to make sure that we separated
47:24the two issues. It's important to talk
47:25about property rights and protecting the
47:27folks who have the right to, you know,
47:30have their properties the way that they
47:31want them to and not be distracted so
47:33that they can do their work. At the same
47:35time, we have to make sure that we
47:37recognize the humanity and the dignity
47:39and the people who need the help. And
47:41I'll say that over and over and over
47:42again. And I think every time we speak
47:44to these issues, we need to be saying it
47:45as well. So, thank you for elevating
47:47that conversation.
47:50Margaret Shabbaz. Um, just along the
47:53same lines, I'm about breaking down
47:55barriers. I know the city is
47:57compassionate and they have jobs.
48:00They have showers and they have vans.
48:04We can break down a barrier for some of
48:06them right there. Can we hire some
48:09unhoused? Can we show the rest of the
48:11city, our compassion city,
48:15to hire some of them? They have skills.
48:18Let's get some of them hired. Therefore,
48:21they're not looking for a section 8.
48:23They're not looking for a voucher. Now,
48:25they have money where they can go and
48:28afford a place to stay. Thank you.
48:34>> Thank you, Margaret.
48:37Would anyone else from the community
48:38like to speak? I see none. With that,
48:43um, thank you for the eight public
48:46speakers that spoke during public
48:47agenda. And for the record, the vote was
48:505 to one to extend that public agenda.
48:54Council member Shepard had stepped out.
48:57>> JB.
48:58>> Yes. And JB was the no vote. All right.
49:01With that, Madame Clerk, can you please
49:03call the next item?
49:06>> Consent agenda items 1 through 16.
49:10Council members, any items to be pulled
49:13from the consent?
49:14>> I'd like to pull 3A.
49:16>> 3A.
49:18Any other items, council members?
49:23>> I see none. With that, I move to approve
49:25the consent agenda without 3A.
49:29>> Second.
49:30>> Motion second. Discussion.
49:32See none. Madame clerk, please open the
49:35All those in favor say I.
49:36>> I.
49:37>> All those opposed, same sign. Motion
49:39passes. 70.
49:41We are now going to speak about consent
49:44agenda item 3A, Woodland Park, North
49:48Park facility lease in district number
49:50six.
49:50>> Thank you, Mayor Reggie, if you could
49:52just um share and highlight um this
49:55item. It's very exciting exciting. We've
49:58been working on it for a long time. So,
49:59I just wanted to give a real high level
50:01um explanation for for what's going on
50:04over there.
50:05>> Sure. Uh so we work uh with uh WSU for
50:09the PPMC to do a community assessment to
50:12look at how the community want to see
50:14the facility be used to meet the need
50:15meet their needs. And through that
50:17process we were able to put together an
50:19assessment that we put out at RFP for
50:21individuals in the community to respond
50:23to. And through that process we had two
50:25respondents the staff selection
50:27committee decided with one particular
50:29entity to be able to occupy the space
50:31moving forward. So, we're looking to
50:34move forward with them taking space at
50:36on the October the 1st with starting
50:38providing services there in the
50:40community.
50:41>> And just for my colleagues in the
50:42community, we're talking about the La
50:43Familia building. So, uh super excited
50:46about that and excited to see what they
50:48can do with it.
50:49>> Thank you, Reggie.
50:50>> I have a couple questions. Uh followup.
50:52Thank you so very much. Um again, this
50:55is over in district number six. Um I was
50:58curious what is the facility's
50:59assessment on that building and how long
51:01this building has been around.
51:03>> Sure. So I know uh we went in with
51:06public works and did an assessment of it
51:08as part of the transition with the
51:10current provider that's there into the
51:12new facility and there's a report that's
51:14there that we can share that shows the
51:15condition of it. I don't have the
51:16details of that here in front of me but
51:19the previous tenant have been in that
51:20location since I believe 2009 or 2012.
51:24uh and part of that was the dynamics of
51:27the community had changed. So there was
51:29uh uh responses from the community to
51:31see how the desk space can be utilized
51:33to better meet the community needs.
51:35>> And according to this um agreement, it
51:38looks like the city will be responsible
51:40for um major capital improvement
51:44uh impro improvements in general. Does
51:47this group understand that everything
51:49else will be under their responsibility?
51:53I think it's outlined uh here, but
51:55that's why I wanted to know if the
51:56facilities assessment had been provided
51:58to them.
51:59>> Yes. Uh we did do a walkthrough with
52:01them to show exactly where we are as far
52:03as condition of the building. And we
52:05have specific things that they're
52:06responsible for as part of that is that
52:08we will do annual inspections to look at
52:10the facility. They will also be
52:12responsible for the day-to-day
52:13operations and maintenance of the
52:14facility. you have to provide uh records
52:17of showing that that maintenance is
52:18being done to make sure that our HVAC
52:20system and other things are being
52:21maintained to the level that we expect
52:23and then if that's not being done then
52:25we determine what expenses they may
52:27incur, what expenses we may incur for
52:29any repairs.
52:30>> I also was um looking at this agreement
52:33and saw how different this is from the
52:35Witchah Boat House agreement. Um, so can
52:38we talk about uh some of the some of the
52:42improvements that have been made in
52:43these contracts to again safeguard
52:46taxpayers and make sure that the tenant
52:48or whoever is uh utilizing that space
52:51knows that they have a responsibility as
52:53well.
52:53>> Yes. So part of that process in the
52:55transition we worked with public works
52:57and utilities and did a walkthrough of
52:58the facility do an assessment of where
53:00they are currently and then put in
53:02parameters of what those specific things
53:03they will be responsible for and what we
53:05will be responsible for as a city and
53:07then as part of that we put in check uh
53:10points to be able to make sure that
53:11we're holding them accountable for those
53:13things on an annual basis. Our agreement
53:15is for one year with four one-year
53:17renewables. And part of that process, we
53:19have to go in and do inspections and
53:21walk through with them [snorts] to make
53:22sure those requirements are being
53:23upheld.
53:24>> Is this similar to the one at Clap Park
53:27with the uh disc golf uh tenant?
53:30>> It is uh once we transition over there,
53:33that was part of it. We wanted to make
53:34sure that any of the residents or anyone
53:36that's using that space goes through a
53:38competitive bid process so we can get
53:39the best value for the city moving
53:41forward. And thank you because uh the
53:43previous tenant was not paying any rent
53:45and this tenant is now going to pay 500
53:48per month in rent. Um and so those
53:51dollars will go back into the park and
53:53wreck fund. Is that accurate?
53:55>> Uh it goes back into the general fund.
53:56Uh but yes, it will be something that's
53:58collected that's different from what the
53:59previous tenant had.
54:01>> I want to make sure that again this is
54:02an older building. It will eventually
54:04have some issues whether it's the roof,
54:07etc. I want to make sure that the
54:09dollars that are being collected go back
54:11into some sort of maintenance fund. Um
54:13because what I've seen so far in three
54:16years in office is that we keep
54:18forgetting that things have wear and
54:21tear and we need to have a kitty fund to
54:24make sure that we are taking care of
54:26those buildings specifically. Um, so I
54:29would instead of seeing it go to the
54:30general fund, I would actually like to
54:32see the $500 go into a a maintenance
54:36fund uh for this building and really
54:38other buildings around uh that are
54:40cityowned.
54:42>> Mayor, I would echo those sentiments and
54:44and I agree. I think I think Park and
54:47Wreck has many facilities that need a
54:49lot of love and if they are collecting
54:52dollars for rent for their facilities, I
54:54would like to see how we can get at
54:55least a percentage of those funds back
54:57into the park and rep budget to address
55:00any deferred maintenance or maintenance
55:02needs for all of their facilities. I
55:04don't think a lot of people know that
55:06even like community services buildings
55:08like the Atwater Neighborhood Resource
55:09Center is managed by Parker Rec in some
55:11regards in some ways. And so I think
55:13having those dollars available to assist
55:15with those needs are important. Um and
55:18and so mayor, I would support you in
55:20that. The second question I have is
55:22Reggie, when you did the walk through,
55:24do we have like um like a checklist?
55:27Like I I remember when I moved into my
55:29apartment, you know, I do my
55:31walkthrough, but there's a document
55:33where I can say like, hey, there's some
55:35wear and tear here, or you know, this
55:37was here when I moved in. and then I'm
55:39responsible for signing it off and then
55:40the property management company signs it
55:42off to that way we have it on record. Do
55:45we do we do that before we lease our
55:47facilities out with the agents that
55:50might be interested in leasing
55:51facilities from us?
55:52>> Well, I can speak specifically for what
55:54we did for Woodland Park. So, parks and
55:56wreck and public work uh team went
55:58through and did a walk through prior to
55:59the actual tenant going in to look at
56:01the condition of it to be able to look
56:03at any things that we need to see that
56:04will be addressed. Then we did a walk
56:06through with them to have them look at
56:08things that they may have concerns with.
56:09And then we compared those two list to
56:11determine what we have as a baseline of
56:13what we're going to do with maintenance
56:14moving forward.
56:15>> And do they sign that or
56:17>> that's part that's part of the uh lease
56:19agreement is outlining what those things
56:21are that they're responsible for.
56:22>> Perfect. I just want to commend you all
56:24for the robust process that you all go
56:27through. I think it's a replicatable
56:29model that I think we should try to see
56:31how we apply that across the board
56:32across city hall. So thank you. And I
56:35echo that same sentiment. And I think on
56:37our green sheet it specifically
56:39highlights Salude Buenestar will be
56:42responsible for all other facility
56:44related costs including routine and
56:46preventative maintenance, code
56:48compliance, utilities, landscaping, snow
56:51removal, graffiti removal, litter
56:54pickup, and repairs beyond reasonable
56:56wear and tear. So again, thank you for
56:59um having this agreement that is much
57:01more solid uh than we've seen in
57:03previous years. I really appreciate
57:05that. Again, you're protecting
57:07taxpayers. And second of all, um I
57:09simply wanted to say that uh salute
57:12masses um this group right here um is
57:16going to focus a lot on
57:18intergenerational
57:20um activities. and the city uh came back
57:23into the AARP age friendly communities
57:27initiative. And so this works really
57:30well with that um goal that this is a
57:32city that welcomes all ages. Um and so I
57:35appreciate that this is uh the new
57:37tenant for that building.
57:40With that, I see no further comments
57:42from the council. We will now open it up
57:45for public comment regarding this
57:47specific item.
57:49I see no one from the community who
57:51would like to speak on this item. We
57:52will now bring it back to the bench in
57:54council member Ballard's district.
57:57>> Thank you, mayor. I move to approve the
57:59lease agreement and authorize the
58:01necessary signatures.
58:02>> Second.
58:03>> Motion second. Discussion. See none. All
58:06those in favor say I. I. All those
58:09opposed, same sign. Motion passes. 70.
58:12Madame clerk, please call the next item.
58:16Board of Bids and Contracts dated
58:18September 21st, 2026.
58:26>> Morning, Mayor [clears throat] and City
58:28Council, Josh Lober, Department of
58:29Finance. Uh, the board of bids and
58:31contracts convened yesterday, September
58:3321st, 2026 for 12 items for your
58:36consideration. We have for engineering
58:39the water distribution system sanitary
58:41sewer improvements to serve Bridger at
58:43central edition phase 2 for Mcola
58:46excavation incorporated for an aggregate
58:48bid total of $467,850.
58:54We have the water distribution system,
58:57sanitary sewer, paving and storm water
58:59drain to serve Pier Point acres, second
59:02edition for Pearson Construction LLC
59:06in the amount of $428,451.85.
59:12For purchasing, we have the RIP wrap 5x9
59:1518inch and 24 in contract rejecting all
59:17bids.
59:19We have the on call emergency equipment
59:21outfitting service for city vehicles
59:24recommending the firm's Midwest Truck
59:26Equipment Incorporated and Superior
59:28Emergency Response Vehicles LLC for
59:30fixed rates for a contract term of one
59:32year with two one-year options to renew.
59:35We have the NEOGV Human Resource and
59:37Application Tracking and Vetting System
59:39Renewal for Government Jobs Incorporated
59:42for a three-year aggregate total of
59:44$528,214.58.
59:49We have the scrap metal contract change
59:51order for all metal recycling. We're
59:52requesting your authorization to extend
59:54the contract six months ending March
59:5631st, 2027 to allow us to publish an RFP
59:59process.
1:00:01We have the special waste disposal
1:00:02facility contract change order for waste
1:00:04connections of Kansas Incorporated
1:00:06requesting our authorization to extend
1:00:08to three months while we facilitate an
1:00:09RFP process.
1:00:11>> [snorts]
1:00:11>> And we have the telescoping steel sign
1:00:13post systems change order for centerline
1:00:16supply for an amended amount of 46,448
1:00:20estimated annually per year. And we have
1:00:23the scattera system maintenance contract
1:00:26change order for re Pedraati company
1:00:29incorporated requesting your
1:00:30authorization to extend the contract
1:00:32three months while we have the incumbent
1:00:34change over to a new provider. [snorts]
1:00:36And we had the solidification and
1:00:38disposal of non-hazardous liquid waste
1:00:40change order contract for ready
1:00:43industries incorporated for requesting
1:00:45authorization of three months while we
1:00:47facilitate a new procurement bid
1:00:49process.
1:00:50And [snorts] we have the citizen
1:00:52engagement survey contract change order
1:00:54for policy confluence incorporated doing
1:00:57business as PCO in the amount of $50,250
1:01:01requesting your authorization to extend
1:01:02our 2022 contract for one year. [snorts]
1:01:06And for airport, we have the vehicle
1:01:08movement area transmitters for you,
1:01:11AvonX Corporation for base bid with
1:01:14options one through six of 268,69524.
1:01:21This is how to become a vendor with the
1:01:22city. This is our purchasing calendar of
1:01:25small business resource partner events
1:01:27that the city's hosting or participating
1:01:29in. And this is our list of open public
1:01:32opportunities out on the street today.
1:01:35and I'd be happy to try to answer your
1:01:36questions and recommend your approval.
1:01:41>> Thank you, Josh. Questions for staff?
1:01:44Uh, only one. Can you go back to slide
1:01:46number five?
1:01:47>> Sure.
1:01:48>> This is a reject all bids.
1:01:50>> Yes.
1:01:51>> Can you explain this one?
1:01:52>> Absolutely. So, city staff facilitated a
1:01:54procurement process where we had a
1:01:57vendor um respond uh during contract
1:02:00negotiations. the u negotiations broke
1:02:03down because the vendor requested
1:02:05alternative payment method deliveries uh
1:02:07delivery methods, excuse me. Um
1:02:09including prepayment, paying the
1:02:12supplier. That was something I was not
1:02:13comfortable with. I shut it down. So, we
1:02:15will be reviewing um going back out uh
1:02:18possibly doing what's called a um
1:02:20purchase order agreement where we just
1:02:22have a purchase standing purchase order
1:02:24on file for the department's needs. um
1:02:26as the on on call fixed rates for a
1:02:29contract did not work out.
1:02:33>> Thank you, Josh. I see no further
1:02:36questions for Josh. With that, I will
1:02:39approve and move the board of bids and
1:02:41contracts dated September 21st, 2026.
1:02:44>> Second.
1:02:45>> Motion second. Discussion. See none. All
1:02:48those in favor say I. I. All those
1:02:50opposed, same sign. Motion passes 70.
1:02:54Madame clerk, please call the next item.
1:02:57Council member agenda to approve to
1:03:00exceed the gift limit established by the
1:03:02ethics ordinance for Mayor Woo to accept
1:03:05travel and expenses to attend the 2026
1:03:09Heartland Summit and Heartland
1:03:11Leadership Forum in Bentonville,
1:03:13Arkansas September 29th through October
1:03:161st, 2026 for the purpose of
1:03:19representing the city of Witchah and
1:03:22engaging with leaders in the heartland.
1:03:24The summit is hosted by the nonprofit
1:03:27Heartland Forward for the purpose of
1:03:29education, collaboration, professional
1:03:32development. The summit serves as a
1:03:34platform for sharing best practices,
1:03:36fostering cross- sector collaboration to
1:03:39inspire investment in midsize cities.
1:03:42The convening
1:03:44will bring together members of the
1:03:46Heartland Mayor's Network, Hartland AI
1:03:49Caucus, Hartland Health Caucus, State
1:03:52Broadband Offices, and leaders from
1:03:55business, philanthrop philanthropy,
1:03:58excuse me, education and public policy
1:04:01to examine how the Heartland can lead
1:04:03the next era of economic growth. The
1:04:06estimated gift amount for program
1:04:08travel, hotel, and meals is $1,710.
1:04:13There will be no expense to the city.
1:04:18>> I move to approve and [snorts] exceed
1:04:20the gift limit.
1:04:21>> Second.
1:04:22>> Motion second. Discussion. See none. All
1:04:25those in favor say I. I. All those
1:04:27opposed, same sign. Motion passes. 70.
1:04:31Madame clerk, please call the next item.
1:04:34to approve to exceed the gift limit
1:04:36established by the ethics ordinance for
1:04:38Mayor Woo to accept travel and expenses
1:04:41to attend the Aspen Ideas Economy Forum
1:04:44for community leaders from government,
1:04:46business, philanthropy, academia
1:04:51and civil society in Tulsa, Oklahoma,
1:04:54October 13th through the 14th, 2026 for
1:04:57the purpose of representing the city and
1:04:59engaging in topics of growing the
1:05:02economy. The Aspen Ideas Economy is
1:05:04hosted by the Aspen Institute for the
1:05:07purpose of equipping local leaders to
1:05:10better serve their communities by
1:05:12participating and attending the mayor's
1:05:14roundt. The estimated gift amount for
1:05:18program travel, hotel, and meals is
1:05:201,200.
1:05:21There will be no expense to the city.
1:05:24>> I move to approve that travel and
1:05:26approve the exceeding of the gift limit.
1:05:29>> Second.
1:05:29>> Motion second. Discussion. See none. All
1:05:32those in favor say I. I. All those
1:05:34opposed, same sign. Motion passes. 70.
1:05:38Madame clerk, please call the next item.
1:05:40>> Council member, appointments and
1:05:42comments.
1:05:44>> No appointments comments.
1:05:45>> Any appointments? Council members,
1:05:47>> I have one appointment.
1:05:49>> I would like to appoint Matthew I'm
1:05:51sorry, I'm going to get your name wrong.
1:05:54Al Jalter
1:05:56for district advisory board.
1:05:59>> Second.
1:06:01Motion [snorts] second. Discussion.
1:06:03Seeing none. All those in favor say I.
1:06:05I. All those opposed, same sign. Motion
1:06:08passes. 70. Council member comments.
1:06:11>> I have one. Um like thanks city manager
1:06:15for getting a sign up for free parking
1:06:18on uh for our lots. However, it's well
1:06:20hidden behind a behind a tree. You can't
1:06:23see it. I have asked him this morning if
1:06:25he we can put those on the signs, the
1:06:28parking signs as you enter the parking
1:06:31lots at the three locations. So, he
1:06:34doesn't see any reason we can do that.
1:06:36So, I will ask city staff to if they can
1:06:38do that to have the option of free
1:06:40parking uh to the west. So, uh if we can
1:06:45get that done, I appreciate it.
1:06:49>> Thank you. Um you sure don't want to
1:06:50just cut the tree down?
1:06:54Sorry. Um, just like to get Maggie
1:06:58going. Um, I'd like to recognize uh
1:07:00Brock Booker, the new District Three um,
1:07:04city council or school board member. I'm
1:07:07sorry.
1:07:07>> For real?
1:07:08>> Yeah. I'm I'm on my way out quick here.
1:07:10So, um, thank you for, uh, showing up
1:07:13again today, Brock, and good luck in the
1:07:15future, and I look forward to working
1:07:17with you.
1:07:21I see no further comments. I'm just
1:07:23going to say uh if Reggie is still here,
1:07:26I just wanted to say thank you to your
1:07:27entire team at Park and Recreation for
1:07:30organizing the last three Open Street
1:07:32ICTs this year uh on Sunday. It was very
1:07:36well attended on Douglas and we're very
1:07:38appreciative of the entire staff, all
1:07:40the sponsors and the vendors and
1:07:42everyone who participated.
1:07:44>> I'd just like to add to that. I was also
1:07:46going to thank Reggie and Park and Reck
1:07:47and we we've had chat since but also
1:07:50thanks to public works, thanks to
1:07:51Witchaw Police Department and Witchaw
1:07:53Fire Department who also play a big role
1:07:56in making sure that the event is
1:07:58successful and keep everyone safe.
1:08:02>> With that, I see no further comments. I
1:08:04move to adjourn this meeting.
1:08:06>> Second.
1:08:07>> Motion second. Discussion seeing none.
1:08:10Mo uh all those in favor say I. I. All
1:08:12those opposed, same sign. Motion passes
1:08:1570. We adjourn at 10:11. We will now
1:08:18begin the workshop. City Manager Mars.
1:08:21>> Thank you, Mayor and Council members. We
1:08:23have a couple items for you today. Um
1:08:26we're going to rearrange our uh order
1:08:29today and we're going to start out with
1:08:30our legislative update. You have
1:08:32information in your packet in front of
1:08:34you as council members and some
1:08:36information was left at the table as
1:08:37people came in to the meeting room
1:08:39today. So, I'm going invite uh Jim Jonas
1:08:42to come up and then we'll turn it over
1:08:43to Kimberly Swatty. But I do want to
1:08:45highlight uh certainly from my
1:08:47perspective and for you as council
1:08:49members knowing we're going to highlight
1:08:51this is an election year that we will
1:08:53have a change no matter what in Topeka
1:08:56and our legislative leaders and our
1:08:58governor's office. um try to make sure
1:09:01that we as a city of Witchaw get ahead
1:09:04of that and try to accelerate our
1:09:06legislative discussions so that we can
1:09:09have some of our information to our
1:09:12newly elected legislators before they
1:09:14start the session in January. And so
1:09:17that's part of our goal is to make sure
1:09:19that you have some of the topics that we
1:09:21think will be important for us to
1:09:23advocate for in the legislative session
1:09:25in January, but to make sure we're
1:09:27engaging with our legislators uh even in
1:09:30December, if not November. And so I'll
1:09:32now ask Jim Jonas to uh do the
1:09:35introductions.
1:09:36>> City Manager, you took uh every one of
1:09:38my bullet points. I I I will not uh
1:09:41belabor it, but I I do want to uh
1:09:44acknowledge that that all of us any you
1:09:46cannot turn the television on these days
1:09:49uh without seeing one of those ads. We
1:09:50are in political silly season
1:09:53officially. The countdown's begun. Uh
1:09:56stay away from TVs and radios and
1:09:58billboards as best you can. Uh but the
1:10:01manager's right. uh this uh this time of
1:10:04year uh particularly with this election
1:10:06and with the consequences the uh new
1:10:09legislature could have uh it's important
1:10:11that we start getting ahead of uh uh
1:10:14what the legislature may get themselves
1:10:17into uh this coming session. So
1:10:21Kimberly's here to give us a breakdown
1:10:23as much of a watch list as it is an
1:10:26agenda. Uh we've had the the be the
1:10:29beginning conversations with uh with
1:10:31council about what's on their mind and
1:10:33what they want to see. Kimberly is going
1:10:35to really try to set us up to understand
1:10:38what are our risks, what are our
1:10:40opportunities, where can we uh where
1:10:43should we be most focused going into uh
1:10:46January session. So I won't belabor it.
1:10:49Kimberly, floor is yours.
1:10:59Okay. Good morning, Madame Mayor and
1:11:02Council. I appreciate the opportunity to
1:11:04be before uh you all this morning. And
1:11:06again, as Jim and as the city manager
1:11:09spoke about this, the information that's
1:11:11put before you this morning is really a
1:11:14frame for us to begin our conversations
1:11:16about what we want our legislative
1:11:18agenda to look like. Um, but first
1:11:21before we do that, I just want to take a
1:11:22moment to to look backward because there
1:11:25were things that we had on our
1:11:27legislative agenda last session and we
1:11:29were very successful in accomplishing
1:11:32virtually all of those goals. And so,
1:11:34just one moment to pause uh on behalf of
1:11:37Gary Jansen and and the public uh works
1:11:40team, we really were focused on the
1:11:42water reuse issue. And so we did pass
1:11:45legislation this last session that
1:11:47pushes KDH along in making those water
1:11:50reuse regulations and we continue to
1:11:52hold um them accountable to getting
1:11:55those regulations developed and advanced
1:11:57so we can begin to expand our water
1:12:00resource uh supplies. Uh we also
1:12:03actually um passed legislation allowing
1:12:05for the golf carts to move along on the
1:12:07city sidewalks. And most notably, we
1:12:10also um secured an additional $35
1:12:13million of um state general fund funding
1:12:16for the water plant. Josh, as you know,
1:12:19serves on the statewide water task
1:12:21force, which I mean Josh is my business
1:12:23partner and husband, but so he is on
1:12:25that water task force and they are
1:12:27working to develop a long-term and a
1:12:29near-term plan for um both water quality
1:12:33and quantity in the state of Kansas.
1:12:34That's an incredibly important
1:12:36conversation for the city of Witchah. Uh
1:12:38we defeated legislation that enacted a
1:12:41new city county uh sales tax formula
1:12:43that had a nearly $1 million immediate
1:12:46financial impact to the city. Uh and
1:12:48then we engaged mightily on uh Senate
1:12:51Bill 418, which is the buy housing bill,
1:12:54in order to make sure that the bill's
1:12:56language um was in fact workable for
1:12:58cities and did in fact encourage
1:13:01affordable housing. Uh there were
1:13:03several other um elements and bills that
1:13:06we engaged in, but I wanted to make sure
1:13:08that we were definitely noting those
1:13:10issues. We were in very uh very involved
1:13:12in some of the rent qualification
1:13:14preeemption bill, um the contingency fee
1:13:17issues for legal contracts, and then uh
1:13:20the consequential damage and public
1:13:22nuisance debates uh as well. So just
1:13:25want to highlight those issues. we were
1:13:27we were involved in a lot of issues
1:13:29across the board. And so the document
1:13:32that you have before you is really, you
1:13:36know, as I as we sit back and we look
1:13:39regardless of who takes office, we've
1:13:43highlighted um on the first page, you
1:13:46know, four buckets of topics, but really
1:13:49on the ensuing pages, there are 16
1:13:53topics for your consideration. and and
1:13:55actually I know it's only bulleted out
1:13:57to 15, but there's actually 8A and 8B
1:14:00which are separate topics even though
1:14:02they are absolutely in the same vein. So
1:14:04that's how we get to the 16. But I want
1:14:07to take a moment and just say that um
1:14:10the the four topics on the front we're
1:14:12going to spend the most time but we're
1:14:14going to spend the most time discussing
1:14:15this morning. But the 16 topics,
1:14:17regardless of who is in office, these
1:14:20topics in some form or fashion will be
1:14:24major issues this session. Um,
1:14:28again, depending on who is in office,
1:14:31we'll stress how much time we spend on
1:14:35this bucket of issues or this bucket of
1:14:38issues. And then also, we will
1:14:40potentially see uh we are going to see
1:14:43new leadership in the House. we are
1:14:45potentially going to see new leadership
1:14:46in the Senate as well and that will come
1:14:50with a kind of a new stress on and not
1:14:53stress in a negative way but just like
1:14:55stressing the issues uh any number of
1:14:58these kind of 16 topics. So, as you can
1:15:00see, all 16 have sub bullets um that we
1:15:08will be engaged in that will impact all
1:15:11city operations and the ability for the
1:15:14city to operate and address community
1:15:16needs as it best see sees fit. Um, so
1:15:20focusing on the top four, and I do want
1:15:23this, I do want you to interject with
1:15:24questions at any time, but focusing on
1:15:26the top four, regardless of who you talk
1:15:30to, regardless of candidate, these are
1:15:33the these are the issues. So, property
1:15:36tax relief, what that looks like,
1:15:39property valuation reform. So the
1:15:42challenge is of course the state only
1:15:44levies you know 20 mills 20% essentially
1:15:47of the the whole property tax formula
1:15:51and the rest is is left to the locals.
1:15:54And so the only way the legislature can
1:15:56really address property tax relief is to
1:15:59either reduce or eliminate the 20 mills
1:16:03or to dictate to local government. Those
1:16:06are your two options. So, and and the um
1:16:10candidates have different perspectives
1:16:12on kind of both of those. So, it'll be
1:16:15interesting to see which combination of
1:16:17issues we really focus on depending on
1:16:20who is elected. Uh but one thing I do
1:16:22want to note is the use of tax
1:16:24incentives for economic development will
1:16:26absolutely be part of that conversation.
1:16:31um the state budget and revenue growth
1:16:33through through 2030. You know, the
1:16:36state is projected to have a sizable
1:16:38budget deficit uh in the 2029 2030 time
1:16:41frame. Although we are seeing some of
1:16:44our receipts come back in a fairly more
1:16:47positive way and that that could push
1:16:49those numbers out. We have to wait for
1:16:50the consensus revenue estimates in
1:16:52November to see if we're looking in a
1:16:552029 budget deficit or 2030. and it's
1:16:58still projected to be very sizable.
1:17:01That will bleed down onto local
1:17:04government and uh we could see some
1:17:07additional programmatic cuts uh to
1:17:10statewide programs that then those
1:17:12responsibilities are pushed down to the
1:17:14local units of government. Um, I, you
1:17:16know, think back on the 20, uh, 2009,200
1:17:20when the state was in a real budget
1:17:22situation after the 2008 fiscal crisis
1:17:24and Josh was a secretary and there were
1:17:27a lot of really important state programs
1:17:30the department of a ran that the
1:17:32department of a had to cut and if the
1:17:35cities wanted to continue to have, you
1:17:37know, strong inspections, food safety,
1:17:39so on and so forth, that the cities
1:17:41would have to pick up that slack um
1:17:43because the state couldn't do it. So,
1:17:46are when do we find ourselves in that
1:17:48time period? Again, um local government
1:17:51versus state preeemption. This is a a
1:17:53very large conversation that we're
1:17:55having. Um working very closely with Mr.
1:17:57Jansen and his team as it relates to
1:18:00conversation about rightway and
1:18:02franchise fees and and creating some
1:18:05sort of parody between our broadband
1:18:07providers and the cable providers and
1:18:09telecom providers that pay franchise
1:18:10versus broadband that that don't. And so
1:18:14the question is if we move to advance
1:18:17legislation that creates parody between
1:18:19those forms of technology so everyone's
1:18:21paying something to the state for the or
1:18:24into the city for the use of the public
1:18:25rightway that's mandated by the state
1:18:28but then we have to make sure that we
1:18:31are retaining local controls over how
1:18:34our rideway is being utilized and
1:18:36inspected and permitted. So a lot of
1:18:38conversation there. Um the city county
1:18:41uh sales tax formula absolutely going to
1:18:43be out there again this coming
1:18:45legislative session. I know there are
1:18:47several cities within the south central
1:18:49area and then northeast um like in the
1:18:52Johnson County area that are trying to
1:18:54work on a a formula. I know Witchah
1:18:56State has been engaged in that
1:18:58conversation as well. But anything that
1:19:00comes with an immediate impact of more
1:19:02than a million dollars or more to the
1:19:04city feels like a non-starter, not a
1:19:06place to start from. So what what will
1:19:10that look like? And um at this time the
1:19:13state may mandate again what that
1:19:15formula change is. So um actually had a
1:19:19really interesting conversation recently
1:19:21with the Senate majority leader. Uh we
1:19:23were talking with a bunch of city clerks
1:19:25about the
1:19:28influx of Kora requests that are coming
1:19:31also not only from citizens but from AI
1:19:34bots or they are AI requests. they are
1:19:37AI generated requests and so how does
1:19:40the legislature get a handle on that and
1:19:43making sure that you know city staff
1:19:45isn't literally drowning in in their
1:19:48time in responding to hundreds and
1:19:50hundreds of core requests that are being
1:19:52generated by AI and sometimes submitted
1:19:55by someone locally but oftentimes not so
1:19:59that's we know that that's going to be a
1:20:01large issue um fire code changes fire
1:20:05code is around 69 94 pages long. We're
1:20:08looking at updating that fire code or
1:20:10the state and the fire marshall are
1:20:11looking at updating that fire code. Uh
1:20:14the governor has created a task force
1:20:16which actually only met for a day, but
1:20:19um they are looking at significant
1:20:21upgrades to that code. So what do those
1:20:23look like? Uh the document is very
1:20:26redlined. So it almost feels like
1:20:28there's more red lines um and
1:20:30strikethroughs than existing text when
1:20:33reading it. So it's a little
1:20:34mind-numbing, but that's going to be a
1:20:35big issue. And these are really
1:20:36important, you know, very in the weeds
1:20:39conversations that we're going to be a
1:20:40part of. And then we talk a little bit
1:20:43also about water quality, quantity, and
1:20:45project funding. So,
1:20:46>> can I go back to number three, local
1:20:48government versus state preeemption,
1:20:50please? Uh, you left out unsheltered
1:20:52cost impact and homebased business
1:20:54regulations, but um unsheltered costs.
1:20:57Um what we have seen here in Witchah,
1:20:59yes we have individuals who in our own
1:21:02community are facing homelessness, but
1:21:05we have also seen individuals that are
1:21:07not from Witchah facing homelessness
1:21:10coming into Witchah. Um can you talk
1:21:13about what um the two candidates I guess
1:21:16are are they emphasizing any of the
1:21:19costs that the city of Witchaw has to
1:21:21bear, the taxpayers of Witchaw having to
1:21:24bear?
1:21:25>> No. Thank you, Madame Mayor, for that
1:21:26question. And I intentionally um I don't
1:21:28want anyone to think that I wasn't going
1:21:30to address those two topics. Wanted to
1:21:32to spend a little bit more time on them
1:21:34toward uh in in the larger document.
1:21:38That is actually it's it's interesting.
1:21:41two two sessions ago and three sessions
1:21:43ago, this was a topic that really a lot
1:21:46of people were talking about, policy
1:21:48makers were talking about um and and
1:21:50particularly as um and shelters
1:21:52individuals were, you know, coming to
1:21:54larger communities from smaller areas or
1:21:57other states and that um is there's not
1:22:01been as much talk about that particular
1:22:04element um in recent years. Not to say
1:22:07that we're not going to spend time
1:22:09discussing it because
1:22:13it continues to be a very significant
1:22:15issue, but I
1:22:18perhaps have just not been at the right
1:22:19events, but I've not heard either
1:22:22candidate thus far speak specifically to
1:22:24that issue.
1:22:28And sorry, as a followup, um you talked
1:22:30about how various individuals are
1:22:33stressing specific topics, um and that
1:22:36will really be shaped come November, but
1:22:40which issues are being stressed by
1:22:42either the two candidates or Senate and
1:22:46and House?
1:22:47>> Absolutely.
1:22:48So, uh, for example, um, let me make
1:22:53sure I've got the two the two candidates
1:22:57for governor, not speaking on behalf of
1:22:59either of them, of course, um, have a
1:23:02different perspective on how we're
1:23:03handling property tax, for example. And
1:23:06so, um, you know, one probably is more
1:23:09focused on, you know, cutting and and
1:23:12cutting the state's contribution.
1:23:15um that would help bring down the mill
1:23:19um from a local standpoint. The other is
1:23:23definitely focused on making sure
1:23:25there's quality of life and
1:23:27affordability components while
1:23:29maintaining
1:23:31um you know a strong property tax base.
1:23:35So trying not to speak uh on either of
1:23:38theirs behalf, but to just identify that
1:23:41they're coming they're looking at it
1:23:42from a different perspective. Um, to
1:23:46that end, I think that that's I've seen
1:23:49both of them talk about the economic
1:23:51development incentives and I know that
1:23:53the Senate there are some leaders in the
1:23:55Senate that are very keen to reduce many
1:23:59of the economic development tools and
1:24:01incentives that exist um like peak and
1:24:04hip and star bonds. Um, we know that
1:24:07many of the sales tax exemptions or that
1:24:11are granted or property tax exemptions
1:24:13that are granted are going to be uh
1:24:15really examined and pushed hard on this
1:24:17legislative session. So, we we can see
1:24:19that. Um, we also know that the K12
1:24:24finance formula will expire in this this
1:24:28year. So, that formula will have to be
1:24:31redone. And in the process of doing
1:24:34that, again, you'll see um different
1:24:39groups that will have kind of different
1:24:41perspectives and different priorities in
1:24:43how it is that we go about funding that.
1:24:46So, there are uh some individuals that
1:24:49are talking about judicial reform,
1:24:52not really adhering to the state supreme
1:24:54court's ruling related to K12 education.
1:24:58Is is that the path? And so that
1:25:00provides a whole different type of
1:25:02school finance, how you build that
1:25:04formula or are we still focusing on the
1:25:07state supreme court ruling and and
1:25:09meeting those thresholds. So lot of a
1:25:12lot of um unknowns there that I think
1:25:14will begin to answer after November. But
1:25:18those are hopefully a couple examples.
1:25:21>> And sorry, one more question. What about
1:25:23the length of time of um the session
1:25:27this year versus other years? Oh, I'm so
1:25:29glad you asked that. Uh, there are a lot
1:25:31of us that work around the state
1:25:33legislative process that
1:25:35>> felt that last legislative session, we
1:25:38just didn't there was there was hardly a
1:25:41moment to even begin to have a
1:25:43conversation with anyone to really spend
1:25:48a handful of minutes talking about
1:25:50outrageously heady and consequential
1:25:52topics. the speed at which the session
1:25:55moved. Um, and I think that that was
1:25:59heard loud and clear. It also impacted
1:26:02our ability to um be able to review and
1:26:05vet bills and for legislators to review
1:26:07and cra craft bills and have them
1:26:09introduced or amendments. All of that
1:26:11was really compressed and so a lot was
1:26:14left hanging out to dry if you will. Uh
1:26:18we believe that we are going to return
1:26:20to a standard a much more standard
1:26:23session. Go in we will go in the um
1:26:25second Monday of January work all the
1:26:28way through April May. We'll have a
1:26:31little bit of a break there in April as
1:26:32they do the consensus revenue estimates
1:26:34but then we'll work through that May
1:26:36time period. So these are I I would I've
1:26:40suggested to many and did outline this
1:26:42in the document that I believe this is
1:26:45probably one of the most consequential
1:26:46sessions that we've seen in the modern
1:26:49era and in many cases going back clear
1:26:52back to the 1960s. We have um
1:26:57there's just a lot of change and the
1:27:00deck chairs are probably going to move
1:27:01in a way that we've not seen in a long
1:27:04time. And and so we are going to need
1:27:07every ounce, every minute of all of
1:27:09those days in order to really get
1:27:11through the agendas that the different
1:27:14um candidates are putting forward and
1:27:15different members of leadership are
1:27:17interested in.
1:27:18>> Yeah. Council member,
1:27:20>> thank you. Um, is there any discussion
1:27:22about more targeted property tax relief
1:27:25such as uh the golden years um
1:27:28stabilization, I guess you would call
1:27:30it, or anything along those lines?
1:27:33>> No, I think that's a great question.
1:27:34There are definitely legislators that
1:27:37are very interested in specific elements
1:27:39of property tax relief for seniors, for
1:27:41veterans, um,
1:27:43increasing the the threshold that can be
1:27:46property tax exempt. I think all of
1:27:48those elements as they typically do
1:27:50become part of a larger bill. Uh but you
1:27:54know, maybe we can get get back to a
1:27:55place where we can focus on just you
1:27:57know specific um elements of that
1:27:59property tax discussion as opposed to
1:28:02merging them all into one big cake and
1:28:04seeing where we are at the end.
1:28:06>> Thank you.
1:28:10>> What other questions can I answer for
1:28:12anyone?
1:28:13>> Are are they are you talking the entire
1:28:15legislative? I was saving some
1:28:16questions.
1:28:18>> Oh,
1:28:18>> so are you talking just the first four
1:28:20or
1:28:20>> any of them?
1:28:22>> Okay. I just um just like to reiterate
1:28:25some support u for looking at LITC
1:28:28credits and how those are awarded. I
1:28:29know that's the Kansas Housing
1:28:32Corporation. And so it's separate from
1:28:33the legislature, but um that's
1:28:36definitely something I think we see a
1:28:38barrier for getting um multiple
1:28:42um projects off the ground here in
1:28:44Witchah because of some of the the
1:28:46barriers in place there. Um I do hear on
1:28:49behalf of some of our museums such as
1:28:51Cow Town about the film tax credits. I
1:28:54don't know if there's um any appetite
1:28:57for that, but that could be something
1:28:58that definitely uh helps a lot of um
1:29:03museums and businesses and commerce here
1:29:05in the city. Um some changes with the
1:29:09Department of Agriculture that would
1:29:10help ease the burden on our animal
1:29:12shelter. Um that's contributing to our
1:29:16high kill rate. um that we can't move
1:29:19some animals out without um a lengthy
1:29:22process. I think like a six week waiting
1:29:24period there. Um and then as always,
1:29:27Medicaid expansion I support. So just
1:29:29putting that out there.
1:29:34>> Kimberly, I told you I'd give you an
1:29:36update. Um and I've talked to Jim about
1:29:38this just briefly, but item number nine
1:29:40regarding child care reform is something
1:29:42that I've been passionately work on. I
1:29:44know others do care as well. Um, and one
1:29:46of the items is we've we're talking with
1:29:48folks at the state is about a tri share
1:29:51model. Michigan has adopted this where
1:29:53an employee pays a third, an employer
1:29:56pays a third, and the state pays a third
1:29:58of child care to help with workforce
1:30:00shortages. And I'm happy to announce
1:30:02that the workforce alliance with support
1:30:05of our child care workforce coalition
1:30:08has received $200,000 in funding to do a
1:30:12pilot tri share program. So, it will be
1:30:15we'll be see they'll be seeking out 15
1:30:18potential employers. It'll be focused on
1:30:20Ellis families um and hopefully to have
1:30:2460 different participants. But the great
1:30:27news not only for the funding for the
1:30:28workforce alliance and for our
1:30:30community, but we hope then the goal was
1:30:33that this will be a pilot program for
1:30:35the state of Kansas that now we will
1:30:37have data and information to be able to
1:30:40take to the state legislature for our
1:30:42case for this to be a tri share program
1:30:44for the state of Kansas and this will
1:30:47help address workforce and economic
1:30:49development needs in our community. So
1:30:51great job to the workforce alliance and
1:30:53look forward to continue to work with
1:30:55them on child care issues.
1:30:56>> That's wonderful. Congratulations.
1:31:01I just wanted to also note in this
1:31:03document um I broke it out into segment.
1:31:06So there's your projected top four
1:31:08topics on the front page and then there
1:31:10are three different buckets if you will
1:31:13of talk of topics. So segment A those
1:31:16topics are directly going to impact the
1:31:19city regard you know in in a variety of
1:31:22different ways they are going to
1:31:23directly impact the city. Uh segment B
1:31:26topics they will impact city functions
1:31:29um sometimes directly sometimes
1:31:30indirectly and then segment C topics are
1:31:33just indirect impact on city functions.
1:31:36So I didn't want anyone to walk away
1:31:38thinking that you know this was in
1:31:39numerical order like a prioritization
1:31:41document. it was just there are three
1:31:43different buckets and here are the
1:31:45issues um that we see in those
1:31:48particular buckets. So uh we will
1:31:52continue to meet with the balance of the
1:31:54council. Uh we are continuing to work
1:31:56with staff and whatnot to to really
1:31:59flesh out that agenda. As I mentioned,
1:32:02these are the this is what we see coming
1:32:06and then we can really uh specify what
1:32:09we want to see as a the city of Witchah
1:32:12advancing on behalf of uh the community
1:32:14as it relates to the legislature.
1:32:16>> I just have a couple of questions for
1:32:18you and are you recommending that we
1:32:21focus on four or I I guess what what's
1:32:25the precedence? Do we typically only
1:32:27choose a certain amount? Obviously, we
1:32:29can't do everything. I think that might
1:32:31be a little in of an ineffective
1:32:33strategy. So,
1:32:36>> um, so I wanted to that I defer to you
1:32:39all honestly and and to the manager and
1:32:42how you want to develop that. Um, that's
1:32:44why I've tried to put forward to you
1:32:47what we really think are going to be
1:32:49kind of the broad table of issues and
1:32:51then you can begin to winnow that down.
1:32:54But those four that are on the front,
1:32:58that's going to have the most direct
1:32:59impact on the city. I think all of the
1:33:02other issues can stem from those four.
1:33:05>> Okay. And if I may, um I would say
1:33:08council, as you're evaluating this, part
1:33:11of our approach is to work with our
1:33:13partners from the county as well as the
1:33:16chamber and other uh business interests
1:33:19in the community. And so if you want to
1:33:21focus on items that you think have a
1:33:24broader collaborative
1:33:27um lobbying effort I think is a focus. I
1:33:30would suggest as we have in here as Miss
1:33:33Wat's outlined 15 16 items on here
1:33:37looking at the first by numeric um what
1:33:41is truly impactful for the city is
1:33:44through number six that we focus on
1:33:47those flesh those out a little bit but
1:33:49then see on the other ones if we're
1:33:52working with the school system there's
1:33:53some issues in there for the school as a
1:33:55partner if there are a couple others in
1:33:57the remaining six or seven that we want
1:34:01to elevate. But I think if we come up
1:34:03with our city, but also recognizing we
1:34:06have some partners who will have some
1:34:08similar interests on property tax relief
1:34:10and other things, how we can expand our
1:34:12coalition of um different groups within
1:34:15the Witchaw area who can help us make
1:34:18our point to our legislators would be
1:34:20how I think we can structure this.
1:34:22>> Thank you, city manager. Would we have
1:34:25an opportunity at an onbunk to maybe
1:34:28have these conversations? I don't know
1:34:29when the next try gov meeting is.
1:34:32>> We will not have an onbunk until after
1:34:35the election. We may have one more in
1:34:38December, so before the end of the year.
1:34:41So definitely that would be part of um
1:34:42the conversation. Our intention is to
1:34:46have some type of legislative gathering,
1:34:50breakfast, whatever in December. And so
1:34:52trying to see if we can get our
1:34:53legislative focus finalized, I would say
1:34:56by the end of November. Okay. Um, and
1:34:59what would be helpful for me then as it
1:35:02relates to a lot of these topics, seeing
1:35:04seeing some numbers on how it actually
1:35:07impacts our our people here in Witchah.
1:35:10Um, particularly like even looking at
1:35:13the K through2 school finance. Uh, my
1:35:15understanding is that we are adequately
1:35:18uh funding general education, but
1:35:20there's a a major conversation about
1:35:22fully funding special education. And so
1:35:24really looking at what the impact and
1:35:26implication on that is as well as um I
1:35:29saw there was uh number 10 workforce
1:35:31devel workforce development in higher
1:35:33education. I know Witchaw State that
1:35:35falls in District 1. There was an
1:35:37article recently that they were denied
1:35:39the opportunity to provide instate
1:35:41tuition for undocumented or DACA
1:35:43recipients. So you know what impact does
1:35:45that have on workforce development?
1:35:47That's a major concern for me,
1:35:49especially as we look at the economic
1:35:51outlook of becoming a majority minority
1:35:53state. Um, not saying that everybody
1:35:55that is a part of a particular
1:35:57population is undocumented, but a
1:35:59substantial amount. So, what does that
1:36:01look like uh as we look at the impact
1:36:03that it has on our workforce and
1:36:04economic development? And then the same
1:36:07for um number five, I I'd be curious
1:36:10what these candidates perception is on
1:36:12sales tax exemptions. are they trying to
1:36:15eliminate that and what that does to our
1:36:17nonprofit sector. I know that many of
1:36:19them come to us at the local level for
1:36:21sales tax exemptions and they need those
1:36:23exemptions from the state as well. We
1:36:25heard from a nonprofit even at the
1:36:27beginning of the council agenda that
1:36:28they don't have a lot of money. They
1:36:30don't have a lot of capital. So, every
1:36:31opportunity that they can partner with
1:36:33the city or the state to be able to
1:36:35bring their their vision to fruition is
1:36:37important. And I know that there are
1:36:38several projects happening in in my
1:36:41district and in Witchaw, be it at the
1:36:43Nomar Theater, be it at Storytime
1:36:45Village, they rely on those exemptions.
1:36:47And so I just really encourage us to not
1:36:49just take what feels easy to accomplish
1:36:53or advocate for, but really look at the
1:36:55needs of our community and have those
1:36:56tough conversations. Um because I feel
1:36:59that many people, at least in my
1:37:01district, don't feel that we are willing
1:37:03to have the conversations out of fear of
1:37:06political backlash. But the health care
1:37:08conversation is also really important.
1:37:10Medicare, Medicaid expansion. So, um
1:37:13those are the things that I feel that we
1:37:14need to have conversations about and I
1:37:16hope that we can collectively come to an
1:37:18agreement that uh we can lean into some
1:37:21of those tough conversations.
1:37:23>> And council member, I appreciate your
1:37:25comments on that. And what's interesting
1:37:27um oftentimes when you put together a
1:37:30list like this and and they all those
1:37:33topics they seem siloed in many
1:37:36instances and then what you find is that
1:37:38in fact uh you tug a little over here
1:37:41and you've pulled a big thread over here
1:37:43or a little more over here and the next
1:37:44thing there's a big thread over there.
1:37:46Uh, as it relates to the exemptions, we
1:37:48seem to have this conversation fairly
1:37:50regularly about every seven years on um
1:37:54eliminating many of the sales tax and
1:37:56property tax exemptions, but the state
1:37:58provides uh gives out however you want
1:38:00to term it, somewhere around $8 billion
1:38:02in lost revenue every year due to
1:38:04exemptions, whether they're property tax
1:38:06or sales tax. And so if you're trying to
1:38:08change the property tax structure then
1:38:12and then you also know that you're
1:38:13staring at you know a state budget
1:38:15that's in the red and you you know
1:38:18there's only a couple of ways that you
1:38:20can glean new revenue or adjust those
1:38:23budget uh budget numbers. And so we are
1:38:26again in that cycle of do we look at the
1:38:29I think we're now up to triple N of
1:38:34sales tax exemptions that the state
1:38:36gives out all of which are are so
1:38:38justified um by many organizations but
1:38:42then you know again when you're talking
1:38:43about property tax relief for the state
1:38:45budget and then K12 again it's that
1:38:48pulling a little bit over here creates
1:38:50that big threat over there and so that
1:38:51the issues do become very interrelated
1:38:53very quickly. So, I appreciate that
1:38:55observation.
1:38:59Uh, and the last thing I'll mention, if
1:39:00there aren't any other questions, is uh,
1:39:02speaking about partnerships, um, I
1:39:04appreciate the opportunity to go a
1:39:06little bit early. I would like to
1:39:06actually hear Mr. Jansen's comments um
1:39:09with some excitement this last week, but
1:39:12uh we are headed out as a large
1:39:13consortium of canons along with the
1:39:16Witchah Chamber uh and other businesses
1:39:18from the area out to DC this afternoon
1:39:21where we'll be for the next several days
1:39:22working with our local and state elected
1:39:25and federal elected officials and their
1:39:27staffs. So, uh to that partnership
1:39:29standpoint, but I'm happy to answer any
1:39:31other questions or you always know where
1:39:33to find me.
1:39:35Okay. Thank you.
1:39:38for our Thank you very much. Safe
1:39:41travels. For our um next agenda item
1:39:44today in the workshop is our monthly
1:39:46update from Witaw Waterworks. And I'll
1:39:49have um Gary Jansen, director of
1:39:51utilities and public works, come up and
1:39:54tee that up for our monthly update on
1:39:56our new treatment plant expansion.
1:40:11>> [clears throat]
1:40:11>> Thank you, manager. Good morning, Gary
1:40:12Jansen, public works and utilities. Uh,
1:40:15mayor and city council members wanted to
1:40:17provide our monthly update on Witchaw
1:40:19Waterworks.
1:40:20Looks a little bit different than where
1:40:22we have been. Uh, Ron Coker with Waw
1:40:24Water Partners is here. Uh, I think I'm
1:40:26going to be able to work through all of
1:40:27this. Don't intentionally mean to leave
1:40:29Ron out, but if you've got questions for
1:40:30him, he is here. So, we we completed uh
1:40:34performance testing that we've talked
1:40:36about. All of the clarifier repairs were
1:40:38completed. The performance testing was
1:40:40completed and accepted on September
1:40:4210th. Both parties signed a certificate
1:40:44of occupancy which allows city staff to
1:40:47begin advanced training on all
1:40:48operational and maintenance components.
1:40:50So, we have staff um in the facility now
1:40:54uh working on uh understanding the
1:40:56operations and the maintenance of the
1:40:59plant going forward. We've got 15
1:41:02full-time staff working 247 shifts.
1:41:04We've got a couple of positions open. We
1:41:07also have some supervisory staff on top
1:41:09of that. So, fairly normal numbers.
1:41:10We're a little bit slim right now. WTOW
1:41:13Water Partners uh will provide
1:41:14transitional operations support as
1:41:16needed. So, they've got folks that are
1:41:17still there. We worked through with them
1:41:19over the last few weeks what that plan
1:41:21looked like. Uh and they will prov
1:41:24provide support as needed probably over
1:41:25the next 30 to 60 days. The certificate
1:41:29does not constitute final acceptance,
1:41:31nor does it trigger additional payment
1:41:32at this time. So, we have a phase three
1:41:34of this work that we've talked about for
1:41:36some time. Waw Water Partners remains
1:41:38responsible for that phase three work.
1:41:41Um, when we're ready to go, we think
1:41:43I've talked about this for some time
1:41:45that we're going to operate this plant
1:41:46for six months. We're going to learn the
1:41:48operations for six months. I'll hit on
1:41:50that again in just a minute. uh when we
1:41:53are ready to go to the system with this
1:41:55plant there's some work that still needs
1:41:56to be done that was part of the original
1:41:58contract connecting the dots effectively
1:42:00so that we can go to distribution
1:42:02there's some work that still needs to be
1:42:04done to test the high service pump
1:42:05station on site those things remain a
1:42:08part of phase three we want to issue
1:42:10final acceptance on the project until
1:42:12that point in time I mentioned we've got
1:42:1515 staff uh working 247 shifts chemical
1:42:19dosing just to kind of hit on a summary
1:42:20of activities chemical dosing is being
1:42:22adjusted for various scenarios and raw
1:42:24water blends. So, we're working the
1:42:26plant through its paces. Uh, this plant
1:42:29has more flexibility than we currently
1:42:31do at the main water treatment plant
1:42:33with the ability [snorts] to treat
1:42:34groundwater only, surface water only,
1:42:36and we will mostly be in a mode where
1:42:39we'll treat a blend of water. But we're
1:42:41working through all those scenarios,
1:42:42different volumes at different times.
1:42:45Uh, we are completing sampling every
1:42:46four hours to ensure continued
1:42:48compliance with drinking water
1:42:49standards. Same thing that happens at
1:42:51our current plant that will stay on
1:42:54through all of this time even when we
1:42:56come online. So we have a discuss a lot
1:42:59about test water as we continue over
1:43:01this next six months until the point in
1:43:03time that we connect to the system. We
1:43:06will still have test water running
1:43:07through the facility. Up to 17 million
1:43:10gallons a day flow rate is being
1:43:13directed to the main water treatment
1:43:14plant for distribution to the system and
1:43:16this will continue. So, as we speak
1:43:19right now, we've got water coming out of
1:43:20the Witchaw Waterworks new water
1:43:23treatment plant through the pipeline. It
1:43:25is being directed through our current
1:43:26plant and is going to the system. So, we
1:43:29are providing water to Witchaw right now
1:43:31from this plant. Have been for some time
1:43:33and will continue to do so.
1:43:36So, what happens next? Uh staff
1:43:38anticipates training and testing for six
1:43:40months with full operations sometime
1:43:42around the second quarter of 2027.
1:43:45Uh beyond that, discussions continue
1:43:46with Witto Water Partners regarding our
1:43:48claim for negotiated damages and cost
1:43:50recovery related to energy, chemicals,
1:43:53staffing, and other components related
1:43:54to defective construction.
1:43:57And the last comment I want to make,
1:43:59same thing I've talked about for some
1:44:00time now, is the city will not be
1:44:01responsible for costs related to the
1:44:03clarifier, redesign, and repairs that
1:44:05are now completed. One thing I did want
1:44:08to show as a reminder, I haven't talked
1:44:10about for some time is this project cost
1:44:13summary for Witchaw Waterworks is on our
1:44:16website and it can be found in the
1:44:17public works and utilities page. There's
1:44:20two pieces of this because I just
1:44:22couldn't fit it all in one and and I
1:44:24split it up. The top part of this is the
1:44:26contract itself, the design build
1:44:29contract with Witaw Water Partners. The
1:44:31bottom part of this is shows the overall
1:44:34budget of $557 million. Everything in
1:44:37between here uh is what we've talked
1:44:40about before. Just as a quick reminder,
1:44:41again, this is available on the website.
1:44:43There is a lot that happens on these
1:44:45projects outside of the design and
1:44:48construction component, especially on a
1:44:50project this size. You know, we worked
1:44:53with Evergy. Uh there had to be a
1:44:55separate substation built, a power plant
1:44:58just for this facility. uh the cost
1:45:01reached nearly $12 million. There's a
1:45:03lot happens behind the scenes um uh for
1:45:06advisory services outside council. Our
1:45:09owners rep with Garver has been critical
1:45:10to this. But anyway, this has got a good
1:45:13breakdown of all the project costs uh
1:45:14where we've been and I just wanted to
1:45:17remind everybody where that's at because
1:45:18I get questions sometimes about where
1:45:20we're at. This is available on the
1:45:22website.
1:45:22>> I just have a quick question. Um thank
1:45:24you director. Um you said it's on the
1:45:26website. Is it on the city website or is
1:45:28it at the Witchah water?
1:45:30>> It's on the city website.
1:45:32>> So, if somebody was curious where might
1:45:33might they find it? Is it under the
1:45:35public works department?
1:45:36>> So, in the public works and utilities
1:45:37page.
1:45:38>> Okay.
1:45:38>> Uh within the water section of that this
1:45:41project, Witchaw Waterworks is on our
1:45:43page and this information is included
1:45:45there.
1:45:45>> And then a question that I get asked,
1:45:47you know, because of the controversy and
1:45:49you know, some of the issues that we've
1:45:50had, original budget versus actual
1:45:53budget, what would be the variance? I
1:45:55can go and look, but just curious like
1:45:57has the project come in on budget?
1:46:00>> So, if you look at the and there's a
1:46:02little bit fine print here and I not no
1:46:04intention there, but I'll tell you
1:46:05what's on the bottom of this page. The
1:46:08initial overall project budget that was
1:46:10approved in 2019 was $553 million. The
1:46:14current budget, which was approved by
1:46:16the city council on October 4th, October
1:46:1914th, 2025, is $557 million. So, the
1:46:23overall project budget
1:46:26uh has gone up by $4 million since 2019.
1:46:29>> Thank you very much. That's great.
1:46:33>> That's all I have for this. I'd be happy
1:46:34to answer any questions.
1:46:36>> I have a couple of questions. Um when
1:46:38this project was first considered, it
1:46:40was uh before many of us on this council
1:46:43were um members. Can you talk about um
1:46:47this water treatment plant would
1:46:50eventually um have water that would go
1:46:52to the Hes pump station to pump it out
1:46:55to all the customers. Was the Hes pump
1:46:58station ever considered to be rebuilt
1:47:00along with this water treatment plant?
1:47:01Can you talk about what happened in
1:47:032019?
1:47:04>> It was and I'm just going to give you a
1:47:06rough estimation estimation because this
1:47:08question has been asked over time. So,
1:47:10as you know, um, and I can't tell you
1:47:13when Hess Pump Station was built, but
1:47:15our current water treatment plant has
1:47:17been there since 1939.
1:47:19Uh, and Hes Pump Station has been there
1:47:21just about as long, providing the
1:47:24ability to distribute water, treated
1:47:26water to our system. Um, we have a lot
1:47:29of large facilities within Hes Pump
1:47:31Station. We've got eight pumps that are
1:47:332,000 horsepower. There's a lot
1:47:35happening. There's big pipes. More
1:47:37importantly, that's kind of the hub for
1:47:40our system. We've got 84 inch diameter
1:47:42pipes coming out of there, spreading out
1:47:43to our system. To contemplate moving
1:47:45that to the same location as Witchaw
1:47:49Waterworks and having to redo the
1:47:51system, it was going to be another three
1:47:53or 400 million to do that. We didn't see
1:47:56the value in that. So when Witto
1:47:59Waterworks comes online, uh we've got a
1:48:0364 inch diameter pipeline between that
1:48:05and Hasp station that will continue to
1:48:07operate in the same way that it does
1:48:09now.
1:48:11>> And you also mentioned that there's
1:48:13already water that's being treated at
1:48:15the new water treatment plant that then
1:48:17goes to the current main water treatment
1:48:19plant and then gets pumped out to
1:48:21customers at the pump station. When was
1:48:24that? When did water from the new water
1:48:27treatment plant already start going
1:48:28through the system?
1:48:29>> We started doing that
1:48:32probably late last summer, uh, early
1:48:35fall during the testing stages. At that
1:48:39point in time, uh, our engineers and
1:48:41staff were able to find a way, very
1:48:44innovative way, um, to to go ahead and
1:48:47bring that water through that pipeline.
1:48:48We were just bypassing there and
1:48:50discharging into the Ark River. Uh, but
1:48:53we were able to take it into what we
1:48:54call our east plant. The current main
1:48:56water treatment plant is kind of split
1:48:58up in two pieces. We were able to take
1:48:59it into that east plant. That water does
1:49:02go through filt filtration and
1:49:04disinfection before it goes to the
1:49:06system, but we've been able to capture a
1:49:08lot of that test water going forward.
1:49:10So, I know the last time I asked um
1:49:14right before we moved into the facility
1:49:16um and some of the last testing that was
1:49:18done, they were testing at about 18
1:49:20million gallons a day. So, we were
1:49:22taking nearly all of that water into the
1:49:24plant to the system, not wasting
1:49:27anything.
1:49:31>> Topical. Um, does the new water
1:49:34treatment facility have the ability to
1:49:37um jump back and forth between emergency
1:49:40generators in case of power outages? Is
1:49:43that different compared to the current
1:49:45water treatment?
1:49:46>> It does. And let me just hit on that
1:49:47real quick and I'll come back to that on
1:49:49the next item. I did a poor job
1:49:51explaining before what the issue was.
1:49:54Um, even though I knew it, they just
1:49:56didn't explain it very well. So, what
1:49:58happens with the backup generators at
1:50:00the new plant, it is automatic trans,
1:50:03there's automatic transfer switches. If
1:50:05we lose power at the new facility, it
1:50:07automatically go to generators.
1:50:10As long as it stays on automatic,
1:50:13that system when it detects that power
1:50:15is back, it'll automatically switch back
1:50:17to grid power. Our current facility does
1:50:20the same thing. What we have done
1:50:23historically because of the potential
1:50:25for damage to equipment
1:50:28primarily and I'll talk about that again
1:50:29more here in a little bit. We have
1:50:32turned off the automatic switch. We have
1:50:34manually gone to generation [snorts]
1:50:36to generator power. That's what was
1:50:38happening last Tuesday night and
1:50:41Wednesday when the incident happened
1:50:42that resulted in the boil water
1:50:44advisory. We had gone manually to
1:50:46generation. We've done that for 8 to 10
1:50:47years. We've done it hundreds of times.
1:50:50There are things that happen when you
1:50:52have an unexpected,
1:50:54unplanned interruption of power with
1:50:57equipment like this and equipment of
1:50:59this size, very large, very expensive
1:51:01equipment we have to be very protective
1:51:03of. That's why we had historically gone
1:51:06manually to generators. What happens is
1:51:10when you turn off the automatic switch
1:51:11like we always do, there is no way to
1:51:14automatically go back. At least not yet.
1:51:17We are looking into that. Our electric
1:51:19and power engineers think that they may
1:51:21be able to find a way. If we choose to
1:51:24move forward with that practice, which
1:51:26we are putting on hold for now. If we
1:51:28choose to move forward with that
1:51:29practice, we are looking for a see if
1:51:32there's a way. If we choose to manually
1:51:35go to generation power and we lose that,
1:51:38can we automatically go back? So, that
1:51:41was the nuance that I didn't explain
1:51:43very well before. We are fully set up at
1:51:45both plants to automatically switch
1:51:48between power sources until the point in
1:51:51time that we remove ourself from that
1:51:53automatic system.
1:51:56>> Hopefully that made some sense.
1:51:59>> Gary,
1:52:00>> sorry, can I do a followup to that
1:52:01question? So, does that mean that the
1:52:03new water treatment plant if someone
1:52:06manually went and went to um backup
1:52:10generator would then automatically go
1:52:12back to the grid even though they went
1:52:14manual first?
1:52:15>> It won't right now because I think we
1:52:18can all recognize what happens if you if
1:52:21you go to manual power. If you go to the
1:52:23generators and the automatic switch is
1:52:25on, it'll just automatically hop back to
1:52:27grid power. We have to override that
1:52:29through the logic in the programming
1:52:32that it recognizes we chose to manually
1:52:35go to generator power. We only want it
1:52:38to switch back if we lose that power.
1:52:40That's what we're going to work on.
1:52:43We're going to evaluate, and I'll hit on
1:52:45this more, but I'll go ahead and finish
1:52:47this thought now. We're going to
1:52:48evaluate where we've been with this
1:52:49practice. We're pausing that. We're not
1:52:52doing that anymore. We did not do that
1:52:53Saturday night with the storms coming
1:52:55in. We're we're not doing that anymore
1:52:57for right now. We're going to pause that
1:52:58for right now. We're going to evaluate
1:53:00everything that we've done in this
1:53:01practice and see what makes sense going
1:53:03forward. I think with the discussions
1:53:06I've had with staff since last week, we
1:53:08have found that there may be some things
1:53:10we want to look at. There may be some
1:53:12changes we could make to buy down our
1:53:15risk and remove some of these issues
1:53:18that we had that led to the event on
1:53:20Wednesday. They both work the same right
1:53:23now. they both work the way they need
1:53:25to. If we stay in automatic mode and we
1:53:28lose power, we just run into a lot of
1:53:30potential issues with an unexpected
1:53:33power interruption. And I know I've
1:53:34belabored that, but I'll talk about that
1:53:35again a little bit more on the next
1:53:37item, too.
1:53:41>> Gary, I I know that the new water
1:53:43treatment facility is is utilizing some
1:53:46technology that obviously our old one
1:53:48did not have. And one of the questions
1:53:50that I'm I'm being asked from some
1:53:52constituents is um have we have we
1:53:56already outlined like a standard
1:53:57operating procedure in the case of
1:53:58someone can hack into the system? What
1:54:01the risk are, who owns what risk, etc.
1:54:03from from that technology standpoint.
1:54:05And I think the last time you gave the
1:54:07update, I asked this before, but I
1:54:09wanted to ask again so that way I can
1:54:11communicate with the public um that
1:54:13we've taken this into account if we
1:54:14have.
1:54:15>> So I think if I heard you talking about
1:54:17cyber security issues. Absolutely.
1:54:19>> So, we have done a what I would consider
1:54:22a tremendous job in being prepared on
1:54:25the cyber security side and we have
1:54:27worked with it, we've worked with the
1:54:28auditor's office um as part of the
1:54:31design and construction of the new
1:54:32facility, but even as part of our entire
1:54:34system, our current facilities, we have
1:54:38layers upon layers of protection for
1:54:41cyber security. One of the uh first
1:54:46layers of protection for us is our SCADA
1:54:49system and and what our SCADA it's
1:54:51supervisory control and data acquisition
1:54:53and I don't want to bore you with a lot
1:54:54of acronyms but our system our
1:54:57technology system for capturing data for
1:55:00operating our systems for everything
1:55:01that we do for operator controls it is
1:55:04not internetf facing it is its own
1:55:07separate system effectively off the web
1:55:10if that makes sense. There was uh if you
1:55:13hear about some of the most recent
1:55:15issues that have happened in facilities
1:55:17across the country what we have seen
1:55:20most of those were tied into the
1:55:22internet they were internetf facing
1:55:24which makes it much easier to get to
1:55:27that alone provides a barrier that a lot
1:55:30of folks don't have and it provides a
1:55:32very solid first layer of protection but
1:55:34we were tasked uh by the former city
1:55:37manager and I've committed to the
1:55:39current city manager it will remain a
1:55:41top priority for us. We are continuing
1:55:43to work on everything related to
1:55:46security and that includes
1:55:48security of the facility, who can get in
1:55:51and out, when they can get in and out,
1:55:52our ability to know who's in the
1:55:55facility at any point in time. I feel
1:55:57very confident in where we're at. You
1:55:59know, I can never stand here and say
1:56:00that everything's 100% foolproof, but I
1:56:02appreciate you asking the question, and
1:56:03it remains a very top priority for us.
1:56:12And last but not least, um can you just
1:56:14reiterate the city has not taken full
1:56:16ownership of this new water treatment
1:56:18plant. Is that accurate?
1:56:20>> Correct. So with this certificate of
1:56:22occupancy and what we called for partial
1:56:24final acceptance was for everything that
1:56:26we've done to this point within the
1:56:27contract. There still is phase three
1:56:29work. There's remaining work to be done
1:56:31by Witto Water Partners. Um we're
1:56:34working through everything to learn and
1:56:36understand the operations and
1:56:37maintenance now. until we get to the
1:56:39point of being ready to go to the
1:56:41system. Um
1:56:43then with that phase three work
1:56:45completed will be when we look at final
1:56:47acceptance and then through that point
1:56:49in time we'll look at final payment. But
1:56:51there's still there's still other phases
1:56:53here to be completed.
1:56:56>> Thank you Gary. And for those that uh
1:56:58council member Tuttle was asking the
1:57:00website is witchah.govwater GV/water
1:57:04and all of the documents including the
1:57:06cost breakdown um according to 9212026
1:57:11is located in the documents portion. So
1:57:14again witchah.govwater.
1:57:18>> Thank you mayor. I should have done a
1:57:19better job with that.
1:57:23>> Let's go ahead and move on. We're going
1:57:25to [clears throat] add to uh the
1:57:27presentation today based upon last
1:57:29week's events with the power failure at
1:57:32the pump station and treatment plant.
1:57:35We'll give the uh overview and then
1:57:36council, you have a timeline in front of
1:57:38you and we've provided a timeline
1:57:41um for the public consumption as well.
1:57:44And I'll ask Mr. Jansen to walk through
1:57:46that.
1:57:47>> Thank you, Mr. Manager. Um, so we had
1:57:49multiple discussions since last
1:57:51Wednesday. Um, and and it's taken me
1:57:54some time to catch up on a few things,
1:57:55spend a lot of time with staff. Some of
1:57:58the information we provided now is now
1:58:00I'm I'm able to update this is still
1:58:03we're still working through this. Um, we
1:58:06had a a good discussion with all staff
1:58:09yesterday. Uh, multiple staff are
1:58:11meeting with our electrical and power
1:58:13engineers this afternoon to evaluate
1:58:15what we do going forward. But I wanted
1:58:17to give you the information we've got so
1:58:19far, clarify some things of where we've
1:58:21been. So, Wednesday evening, uh, and I
1:58:24want to be very clear and state
1:58:26something because, you know, I heard
1:58:28from a lot of folks, some of you heard
1:58:30from those in the community that made
1:58:32the assumption that we don't have backup
1:58:33power. And so, I wanted to be very clear
1:58:36that we do have backup power generation
1:58:38at this water plant, at all of our major
1:58:41facilities. is I will tell you, you
1:58:43might be surprised to hear that these
1:58:45generators were only built and put in
1:58:46place in 2009. So, prior to that, we did
1:58:49not have backup power to this water
1:58:50treatment facility. It's a good thing
1:58:52that we do now. Um, the issue that we
1:58:55had, and I'm going to get into in just a
1:58:57minute and reiterate and talk about had
1:58:59more to do with our processes. There was
1:59:01no human error involved here. Uh, but
1:59:03some changes that we're going to make to
1:59:05programming, we think we found the root
1:59:07cause of why the generator stopped
1:59:08working. But there's more to it than
1:59:11that. and we need to continue looking at
1:59:12our processes going forward. So on
1:59:16Tuesday evening, there were active
1:59:17storms in the area. We had a whether was
1:59:21a brief loss of power. We refer to that
1:59:23as a blip before. We can call it
1:59:24whatever we want. That was just our term
1:59:26for it. There was a power interruption
1:59:29in the plant that uh triggered an alarm
1:59:32and prompted a call in of additional
1:59:34staff. So we had an alarm likely from a
1:59:37pump VFT VFD going off. So historically,
1:59:40I'll just say again, over the last 8 to
1:59:4210 years,
1:59:44when we have seen the potential for
1:59:46storms, it varies on the type, it varies
1:59:50on the size. Uh we looked at the radar
1:59:53at this point. There were storms lined
1:59:55up all the way to Oklahoma border. It
1:59:56was a long line of storms that night. We
1:59:59brought in more staff. We made the
2:00:01decision to switch manually to backup
2:00:04power. Same thing we've done for 8 to 10
2:00:06years. I'm not here to tell you that
2:00:08we're going to keep doing that because
2:00:10that's what we've always done. That's
2:00:11not the point. Uh we did not expect this
2:00:14to happen obviously. Um it was an issue
2:00:17within the programming I'm going to talk
2:00:19about here shortly that we have found.
2:00:23So around just after 8:00 um we made a
2:00:26decision to move to backup power. I
2:00:28mentioned again that that middle bullet.
2:00:31We've done this for quite some time.
2:00:33What happens during an unexpected power
2:00:36interruption is just like in your house
2:00:39if you lose power and potentially it
2:00:40trips breakers. Um the same things
2:00:43happens here. So we have variable
2:00:45frequency drives on our large pumps.
2:00:47Helps control the speed of the pumps.
2:00:49Helps protect the equipment long term.
2:00:52When we have an unexpected power
2:00:54interruption, we have things like VFDs
2:00:56that get tripped. We have decided over
2:01:00time that we need to manually reset
2:01:02those because of the sensitivity of this
2:01:04equipment because of what our task is.
2:01:08We need to make sure that nothing has
2:01:09happened. If it was a lightning strike,
2:01:11you could have arcing between equipment.
2:01:13Unfortunately, you can see over time
2:01:15there could be fires and equipment. We
2:01:18need to get people there to make sure
2:01:20everything's good. We need to reset
2:01:22those VFDs. That takes time. I'm going
2:01:25to illustrate something to you here in
2:01:27just a minute on another bullet of what
2:01:28happens for us with time and how quick
2:01:32pressure can drop in the system. The
2:01:34problem we had here that led to the boil
2:01:37water advisory was loss of pressure.
2:01:40So by proactively moving manually to
2:01:44backup generation, it's a seamless
2:01:46transition. We don't lose power. The
2:01:48system syncs itself and it switches
2:01:51without losing power. We don't have to
2:01:53worry about any of those issues of
2:01:54resetting VFDs. And all the time we have
2:01:57done this, we have not had an issue with
2:01:59that backup power staying on and staying
2:02:02running.
2:02:04But obviously with what's happened here,
2:02:06we're going to take a step back and
2:02:07we're going to take another look to see
2:02:08if this makes sense going forward. Plant
2:02:11transfer to generators is easy on
2:02:13equipment overall and it's seamless for
2:02:15operations. So just after 5:00 am on
2:02:18Wednesday, we had normal operations in
2:02:21the plant. Uh what I would with as far
2:02:23as staffing
2:02:255:00 a.m. on most summer mornings, we
2:02:28start to see a peak in demand because of
2:02:30irrigation systems coming on. People are
2:02:32beginning their days, but primarily for
2:02:34irrigation.
2:02:36So there was a need to call for another
2:02:39pump. Two pumps were running. We need to
2:02:41call for another pump. I might mention
2:02:43again, we've got eight pumps. These are
2:02:452,000 horsepower pumps. This is not a
2:02:47good comparison to 99% of the world's
2:02:51industries on how big these pumps are.
2:02:53And that's probably an overestimation,
2:02:54but I've heard from a lot of folks
2:02:56saying, "You shouldn't need to do that.
2:02:58We've got backup generators and they
2:03:00work just fine." This is not normal
2:03:02equipment. You only find pumps this big
2:03:06uh in industries like ours and in oil
2:03:08and gas, major industries, large cities
2:03:11for distribution to this many people. As
2:03:14you know, we're providing water to
2:03:15500,000 people and we're covering 166
2:03:18square miles of Witchto plus a little
2:03:20bit more. That becomes a factor in these
2:03:23decisions that we make because of the
2:03:26size and sensitivity of this equipment.
2:03:29We have to be very careful and how we do
2:03:31things here. And if we have an
2:03:33interrupted
2:03:34uh
2:03:36power outage, a a an interruption in the
2:03:39power, unexpected interruption in the
2:03:40power that can cause damage to
2:03:42equipment. One of these pumps alone and
2:03:44the equipment goes with it is likely a
2:03:46million dollars to replace trying to
2:03:48protect our investment. Having said all
2:03:50that, I also recognize the impact we had
2:03:52on the community with the boil water
2:03:54advisory. So our first task here and our
2:03:57primary task is find every way we can to
2:04:00avoid having this in the future.
2:04:04During that period of time, what
2:04:05happened after 503? We got power back
2:04:08momentarily and then lost it again. So,
2:04:13it's never a good time to deal with
2:04:14these type of issues. It's certainly
2:04:16compounded at 5:00 in the morning,
2:04:17right? We've got staff fully trained to
2:04:19deal with these issues uh and be able to
2:04:22respond to them. They're trying to
2:04:23figure out what's going on. We've got
2:04:25backup battery power that at least keeps
2:04:28the lights on, but there's no way you
2:04:31can have a backup battery system that
2:04:33will bring these size of pumps back on.
2:04:35And I've heard that from a lot of people
2:04:38saying, "Well, we got a backup system
2:04:39and it keeps our building systems
2:04:41going." That's probably true, but it's
2:04:42not going to run a 2,000 horsepower
2:04:45pump. We got to get power back going
2:04:50during the first four minutes. So, our
2:04:52normal pressure on our system, we
2:04:54measure it, our first measurement we
2:04:56take is at central and main. It's always
2:04:58been historically that we've done that.
2:05:00It's fairly close to our plant. That's
2:05:01normally around 90 PSI system pressure.
2:05:05In four minutes that pressure dropped to
2:05:0740 PSI. So you can understand the impact
2:05:10of time here. Anytime we get to
2:05:14below 20 PSI in the system, that is when
2:05:17we have to start looking at whether a
2:05:19boil water advisory is necessary. That's
2:05:22a regulation we work on, have
2:05:24discussions with the KDHE
2:05:27because at that point in time, as we
2:05:29talked before, if you get below a
2:05:30certain pressure in the system below
2:05:33that 20 PSI,
2:05:36you introduce the possibility in areas
2:05:39of groundwater that you could introduce
2:05:40contaminants that could get back into
2:05:43microscopic openings in the pipe. That's
2:05:45what we're trying to combat. That's why
2:05:46we try to maintain the same pressure. Is
2:05:48is there like a time period for that to
2:05:50be 20 PSR or is it just simply hitting
2:05:53that mid
2:05:54>> there's a lot of factors involved um and
2:05:56it's why we have a very close contact
2:05:59and conversation with KDHE
2:06:02um it's not always automatic uh that
2:06:05just because some portion of the system
2:06:07dropped below 20 PSI that we
2:06:09automatically go to boil water there's
2:06:12multiple factors involved um we rely on
2:06:15the expertise of KDH of talking through
2:06:16it and having understanding ing. We've
2:06:19seen times before, as you can imagine,
2:06:21as we get further out in our system, we
2:06:23start to see lower normal pressures.
2:06:25Anyway, 90 PSI at central and Maine.
2:06:28Right now, as we get out towards the
2:06:30edges of the city, we're probably around
2:06:3140 in some areas, 40 to 50. We the very
2:06:36day before I took this position that I'm
2:06:38in on a Sunday, we were in this room
2:06:41contemplating whether we need to have a
2:06:42boil water advisory because we had an
2:06:45upset in the system at the water
2:06:47treatment plant and we did have that
2:06:49very discussion of where in the system
2:06:52we were at with 20 PSI. We were able to
2:06:55figure out with the data that we could
2:06:57mine from our system that we could avoid
2:06:59the boil water. We did not have to do
2:07:02that. I just offer that as an example of
2:07:04no two situations are the same. Pressure
2:07:06is critical here. Our goal during this
2:07:09period of time is to get everything
2:07:10fired back up and reressurize the system
2:07:14primarily for fire flows, right? We've
2:07:16got to get fire flows going again. Chief
2:07:19Mir and I have had a conversation now
2:07:22just in the last week about making sure
2:07:25we are in step going forward and and we
2:07:27will be and we have been but we got the
2:07:30system back up I think as quick I know
2:07:32as quick as we could to reressurize the
2:07:34system so every power was restored
2:07:36around 5:45 so we had a period of time
2:07:39there of almost 45 minutes without power
2:07:41all pumps and supporting equipment were
2:07:43restarted by 603 with the system at hess
2:07:48fully pressurized by around 606. So we
2:07:50were able to restore
2:07:52um pressure coming out of Hess at that
2:07:55point in time.
2:07:57Our system is big enough. We probably
2:07:59did we don't instantaneously restore
2:08:01that full system pressure. It likely
2:08:03took maybe even up to an hour to restore
2:08:06pressure across all of the system. Um,
2:08:09but during that period of time when
2:08:12these things are happening, I'm talking
2:08:14to staff, I'm talking to the manager,
2:08:16we're talking to comps, we're talking to
2:08:18KDHE,
2:08:19first priority is reestablished pressure
2:08:21and then try to evaluate time frame
2:08:24where we were at. It became apparent
2:08:27just in what we were hearing from people
2:08:28across the community that we lost
2:08:30pressure in the system completely in
2:08:32some areas which led to making a
2:08:35determination of the boil water
2:08:37advisory. And so we went back to Everg's
2:08:41power, the main power source.
2:08:42>> We did,
2:08:44>> we flipped the automatic switch so we
2:08:45would go back to EverG because we knew
2:08:47it was available because we had manually
2:08:50gone to
2:08:51uh generators for all the reasons I
2:08:54talked about to avoid having a loss of
2:08:56power in a storm.
2:08:58>> I one question on that. um like what
2:09:02what's in our procedure as far as the
2:09:04all clear that the storms have passed
2:09:06that we would go back to um the main
2:09:09power source and off of the generators.
2:09:11>> That is a very good question and
2:09:13something that we are re-evaluating
2:09:15within our process is historically what
2:09:18we have done is we've waited till shift
2:09:20change which is around 7 to 7:30 in the
2:09:24morning. It's just operationally for us
2:09:26it works a little bit better to just
2:09:28stay in that mode
2:09:30in a situation like this. From what I
2:09:32can tell, I think the storms were
2:09:34through. So even if we consider
2:09:39staying with this process that we've
2:09:40done for some time, we're going to
2:09:42clearly evaluate that at what point in
2:09:45time we switch back to ever power
2:09:48because it's we probably need to step
2:09:50away from waiting for shift change.
2:09:52Maybe that's going to be part of our
2:09:54evaluation going forward.
2:09:56>> Thank you.
2:09:58>> So th keep walking through where we've
2:10:00been. Thursday was spent collecting and
2:10:02testing samples and diagnosing and
2:10:03analyze operational factors. So we were
2:10:05already digging in then to what will
2:10:07happen, but our very focus was on
2:10:08collecting these samples, getting them
2:10:10into the lab as quick as we can because
2:10:12we know we've got this 24-hour clock. Um
2:10:14I think staff did a wonderful job with
2:10:16that. I will tell you
2:10:18um talk about some of the improvements
2:10:20we've made over time. We have 195 test
2:10:22stations across the community. You've
2:10:23probably seen them. It's a blue pole
2:10:26with a box on top of it. You may not
2:10:27recognize what it is, but they're all
2:10:29over the city. We put those in probably
2:10:32within the last five to seven years. We
2:10:35used to go uh into people's houses and
2:10:38businesses and ask to take water samples
2:10:40so that we could verify where we're at
2:10:42with the system. We have made it a lot
2:10:44more user friendly, not just for a boil
2:10:47water, but for us consistently to sample
2:10:49the system. So that was a great thing
2:10:51that we did. Surprisingly, we didn't
2:10:53have that sooner, but we were able to.
2:10:54It still takes time. It's 195 stations
2:10:57across the community, so we had to
2:10:59deploy staff as quick as we could. I
2:11:01think we did a great job with that. All
2:11:03four generators underwent extensive
2:11:05offload and full load testing on Friday
2:11:08with steady staff, the equipment vendor,
2:11:10and our consultant for electrical and uh
2:11:14power. Testing did identify a generator
2:11:17programming issue. I'm not going to
2:11:19spend a lot of time on this because if
2:11:20you ask me too many questions, I
2:11:21probably can't explain it to you good
2:11:23enough. Anyway, we did find a problem
2:11:25and what's called what I call a problem
2:11:27an an incorrect or a setting uh within
2:11:31the generators what we call a set point
2:11:33that was not allowing the additional
2:11:36power to come online.
2:11:38This is also a measure for protection of
2:11:41equipment. So when you think about uh
2:11:45equipment of this size, you don't run
2:11:48any of it at small load and you don't
2:11:50run any of it at 100% load. There's this
2:11:52spot where it works optimally or you'll
2:11:55start damaging equipment. So these set
2:11:57points
2:11:59are put in place so that you can
2:12:01optimize the power supply and don't risk
2:12:03damaging equipment. This part we haven't
2:12:06quite figured out why. What happened is
2:12:08we had two generators running. it
2:12:09reached the set point for the capacity
2:12:11of those generators. When we called for
2:12:13a an additional pump,
2:12:16the third generator was trying to come
2:12:18on and it couldn't because of where that
2:12:20set point was. And I know this won't
2:12:22make entire sense because it doesn't
2:12:23make entire sense to me. We're still
2:12:25looking into it. Instead of it
2:12:28recognized that it couldn't bring on
2:12:29that third generator because it was
2:12:31already at capacity. It didn't have the
2:12:33time. My question has been why didn't it
2:12:36ignore the call for the additional pump
2:12:39and keep those two running instead it
2:12:41shut everything down to protect again a
2:12:45lot of what happens here and the logic
2:12:47of this programming is first and
2:12:49foremost to protect equipment we've got
2:12:50to overcome that part we changed the set
2:12:54point lower to where this won't happen
2:12:56again in that same scenario what this
2:12:59illustrates is even with our best
2:13:02intentions with programming and what we
2:13:04do um across our system. There's a
2:13:08million in one scenarios and this was a
2:13:10million and two right that we had not
2:13:13seen in the past that caused this
2:13:15situation. We've made that change. We
2:13:17think that is the root cause. I
2:13:19apologize that I can't get any more
2:13:20technical with on that because I'd be
2:13:22making it up if I did. But we're still
2:13:24looking into that. It makes sense that
2:13:26that was the issue. We're going to
2:13:28overcome that going forward.
2:13:30We also have two substations, electro
2:13:34substations belong to us on the Hes
2:13:36campus. One of those we are aware it's
2:13:41the switch gear likely failed at that
2:13:43point in time somewhere in that period
2:13:45of time. That may have led to the power
2:13:46outage.
2:13:48We have since operated successfully.
2:13:50It's working fine. Still investigating
2:13:52what might have happened there. That
2:13:54could be part of the cause also. So, a
2:13:56lot of stuff still more moving forward.
2:13:58Things we're looking at. I'll mention
2:13:59again, uh, Saturday when we saw storms
2:14:02coming in, we stayed in automatic mode.
2:14:05We did not go to the generators
2:14:07manually. We brought in more staff to
2:14:10make sure we had somebody at the
2:14:12generator building, somebody at house
2:14:14pump station. Luckily, no issues. We're
2:14:16going to continue doing that going
2:14:18forward. I'll just mention that the
2:14:20generators are exercised monthly.
2:14:22Previous tests identified no problems.
2:14:24So, we do a very good job of
2:14:25preventative maintenance, monthly upkeep
2:14:28of these generators, making sure
2:14:29everything's in order. We do that uh
2:14:31across our entire utility. So, I'm going
2:14:34to keep going here. So, just to
2:14:37summarize for strengthening
2:14:38strengthening our operational
2:14:40resilience, generator programming was
2:14:43adjusted. So, additional generation
2:14:45starts sooner. All four generators were
2:14:48tested under offload and fullload
2:14:50conditions. Everything's fine. generator
2:14:52and switch gear performance retested and
2:14:55passed. That failure during the event is
2:14:57still under assessment because that
2:14:58could be a contributing factor. So,
2:15:01what's under evaluation going forward?
2:15:03Generators normally operate in automatic
2:15:05transfer mode. I don't need to spend a
2:15:07lot of time on this uh but I talked
2:15:09about what we've done. We're going to
2:15:11find out if there's a way if we wanted
2:15:13to do this in the future that we can
2:15:14automatically come out of it. In the
2:15:16meantime, we're going to stay in
2:15:17automatic mode. If we choose to maintain
2:15:20this practice going forward, which is
2:15:21yet to be determined, we'll include
2:15:23additional staff and then we've got a
2:15:25complete investigation of that switch
2:15:27gear I talked about.
2:15:29So, um, having said all of that, we
2:15:32recognize that redundant equipment and
2:15:34preventive maintenance reduce
2:15:35operational risk, but we cannot ever
2:15:38rule out mechanical or electrical system
2:15:41failures entirely. So what we need to
2:15:43do, our goal is to find every way we can
2:15:47to not end up in this situation again.
2:15:49We've got to provide backup systems and
2:15:52we need to ensure multiple paths to
2:15:54recover when an individual component
2:15:56does not perform as expected. had some
2:15:58really good conversations since late
2:16:00last week with staff uh with our
2:16:02consultant with our experts uh that it
2:16:06it that I think are going to lead us I
2:16:08know is going to take us in a better
2:16:11place moving forward because I'll
2:16:13mention again uh that I mentioned before
2:16:17pump station stays in place to your
2:16:19question mayor uh even when the new
2:16:21water treatment plant comes online these
2:16:22generators will remain there for backup
2:16:25power for house pump stations so we need
2:16:27to make sure our practices are great are
2:16:29in the right place moving forward.
2:16:32We conduct an afteraction review
2:16:34following significant events every
2:16:36single time to identify operational
2:16:38equipment, communication and procedural
2:16:40improvements. We started that on Friday.
2:16:42We had a a meeting with all everybody
2:16:45yesterday that will be ongoing and
2:16:47findings from this event will be
2:16:49incorporated into SOP's emergency
2:16:50response plans and training as
2:16:52appropriate.
2:16:54Last slide. Uh particular focus will be
2:16:57placed on the long-term resilience of
2:16:59Hes Pump Station because I mentioned
2:17:00again it will continue to serve the
2:17:03distribution system when Witaw
2:17:05Waterworks is fully operational as a
2:17:08result of the of this incident and the
2:17:10loss of generator power on September
2:17:1216th.
2:17:14The long-standing practice of switching
2:17:16to generators in advance of weather
2:17:17events will be paused and additional
2:17:20studio staff will be on duty during
2:17:23weather events. So, we're holding on
2:17:24this. It doesn't make sense to keep
2:17:26moving forward the way we were until we
2:17:28can have a better understanding.
2:17:29[snorts]
2:17:30I think the practice did make sense. I
2:17:32think we were doing the right thing to
2:17:33protect our equipment, but I also think
2:17:36we can potentially enhance our practices
2:17:38and find some ways
2:17:41to automatically
2:17:44reset VFDs and things like that. That's
2:17:46my goal. The diagnosis and analysis of
2:17:49root cause factors, root cause factors
2:17:52is expected to be complete in the next
2:17:5330 days. We're going to get that done as
2:17:55soon as we can. And as I mentioned
2:17:57before, we're going to have an
2:17:58independent analysis of everything that
2:18:00we do related to the utilization of
2:18:03backup generation. Uh that'll help lead
2:18:06us forward, not just with HS, but even
2:18:09with our new water treatment plant when
2:18:10it comes online. With all that, I'd be
2:18:13happy to answer any questions.
2:18:15Um, I know we've invested quite a bit in
2:18:19uh the infrastructure in the Hes pump
2:18:20station over the last couple of years.
2:18:23Um,
2:18:24is there any way we can get maybe a
2:18:26breakdown in in the next couple of weeks
2:18:28of how much we've invested and what the
2:18:31priorities are moving forward as far as
2:18:34uh maintaining the infrastructure at the
2:18:35Hesp pump station.
2:18:36>> We certainly can that all that
2:18:38information is readily available. Well,
2:18:40there's funding in the CIP now uh to
2:18:43continue doing work there. All of the
2:18:45work that you see happening out in front
2:18:47of house now kind of over here by the
2:18:49art museum across the Indian museum
2:18:53um isn't directly related to Hess, but
2:18:55has to do with our underground
2:18:57reservoirs, the flow of water, the aging
2:18:59of water, it all ties together. So,
2:19:02we've got a lot of investment happening
2:19:04now and more investment coming.
2:19:06>> Yeah, I'm trying to dust off the five
2:19:07years I've been up here and Sure. I do
2:19:09remember pumps, you know, we've replaced
2:19:12a couple of pumps out there and so yeah,
2:19:14just maybe getting a breakdown of that
2:19:16moving forward.
2:19:17>> I know uh council member Ballard and I
2:19:19at times have joked about how many times
2:19:22Hess shows up on the council agenda
2:19:25because there's just a lot to that needs
2:19:26to be done there on that campus. So,
2:19:28we've got a lot of information. We'll
2:19:29get that for you.
2:19:30>> Appreciate that. Um,
2:19:34when we do the testing, when KDHE does
2:19:37the testing, is it strictly just
2:19:38bacteria that they test for
2:19:41>> for when for the
2:19:42>> during an emergency like this?
2:19:45>> Uh, that and chlorine residuals which we
2:19:47provided up front, but effectively it's
2:19:49for bacteria. Yeah. Non-olififor and
2:19:51E.coli. Yeah.
2:19:52>> Okay. Is there potential for any of that
2:19:55getting into the system too through the
2:19:56microractures you have? Well, our
2:19:58testing showed that it there was no
2:20:01contamination.
2:20:02>> Okay.
2:20:03>> So, and that's what makes a difference
2:20:05when our systems pressurized. That
2:20:08effectively for the most part eliminates
2:20:11that possibility. But disinfection,
2:20:14continuous disinfection in our system is
2:20:16what helps overcome that also in the
2:20:18event that there are any issues.
2:20:20>> But the regular testing tests for the
2:20:22forever chemicals and whatnot.
2:20:24>> It does. It does. We test our water
2:20:25every four hours. Um, we've got reports
2:20:28we have to submit to KDHE monthly,
2:20:31quarterly, and annually uh about our
2:20:33water quality. Anything that's out of
2:20:35alignment, we are required to report to
2:20:37KDH. But it's it's an ongoing process,
2:20:41part of normal operations.
2:20:42>> Okay. And last thing, I I've heard from
2:20:45uh a number of residents about how can
2:20:47we better communicate to them. Some
2:20:49people received the text messages and
2:20:51emails and some did not. So, I guess
2:20:54maybe that's something that just us as a
2:20:56city has to maybe evaluate how we can do
2:20:59that a little better. Um, I didn't hear
2:21:02it the the first time. I didn't hear any
2:21:04of those complaints necessarily, but may
2:21:07have just been different circumstances.
2:21:09So, just putting that out there as well.
2:21:11>> And I appreciate that. And we will
2:21:12continue to work with comms absolutely
2:21:15on making sure we did I I think we did a
2:21:18really good job in responding in light
2:21:20of of of the situation. But but we can
2:21:23always learn from that. So some of it
2:21:26depends on what our citizens are signed
2:21:28up for,
2:21:29>> right?
2:21:30>> And I think what we need to do and and I
2:21:32don't want to speak for comms, but is to
2:21:34remind everybody here's how you can get
2:21:37information from the city because I feel
2:21:39pretty confident we sent information out
2:21:42to everybody who has signed up, who has
2:21:44registered. We have contact information
2:21:46for all of our water customers. So we
2:21:48send out notices 150,000 some people by
2:21:51that method.
2:21:52>> Yeah.
2:21:53>> Um obviously social media and everything
2:21:55else but we'll continue to work with
2:21:56comms on that.
2:21:57>> No I Yeah. And it's not on comms. It's
2:21:59just
2:22:01>> it's just more the gaps to where it's a
2:22:04difficult thing nowadays to communicate
2:22:06with people because they get their
2:22:08information from so many different
2:22:09sources. So
2:22:10>> Sure.
2:22:13>> I just want to clarify with u the
2:22:15emergency alerts. We sent that out to
2:22:17all of our water customers. So, if
2:22:19you're the primary contact, primary
2:22:21email, that sort of thing on the water
2:22:22bill, those are the people who got the
2:22:25text alerts, the voicemail alerts. So,
2:22:27not everybody throughout the community.
2:22:28I think a lot of people are thinking
2:22:29that we would utilize the uh emergency
2:22:31alert system through Seduit County and
2:22:34they have u I guess standards, protocols
2:22:37that uh boil water does not rise to the
2:22:39level of using the emergency alerts.
2:22:41Those are for life safety,
2:22:43life-threatening incidents. So, we
2:22:45thought in 2021 that that's a system we
2:22:47were going to use. We learned back then
2:22:49that that was an issue and we didn't
2:22:50have a system to notify our residents.
2:22:52Had another boil water before we could
2:22:54get something in place. But since those
2:22:56previous two, we have implemented this
2:22:58system so we can at least notify all of
2:22:59our customers. And then, like I said, if
2:23:01you go to witchaw.gov/connect, we have
2:23:03uh signups for email signups for boil
2:23:06water advisories, emergency alerts, and
2:23:08lots of other things. So, there's lots
2:23:09of different ways we encourage people to
2:23:11uh connect with us to get those alerts.
2:23:13Yeah, Tyler, I appreciate that. Yeah,
2:23:14>> to your point, I thank you for that. Um,
2:23:18I had some constituents reach out and
2:23:19said that the communication was actually
2:23:22stronger than last time and much more
2:23:23efficient. Right. So, learning moments,
2:23:25we take these learning moments, we grow
2:23:27from them, and hopefully we do better.
2:23:29Uh, but to your point, I I think it's a
2:23:31clear distinction between those who are
2:23:34signed up as the property owners for the
2:23:36water updates. I live in an apartment.
2:23:39Um, I didn't get a communication
2:23:41directly, but I received one from my
2:23:43property management company. And, um, so
2:23:46I've now signed up for the boil water
2:23:48advisory updates, the drought updates,
2:23:50and the emergency alerts. And there's
2:23:52several other opportunities that they
2:23:54can get alerted for too, including the
2:23:56food and farm council. Um, so if we can
2:23:59just mobilize residents who may not be
2:24:02signed up by way of being the person on
2:24:05that water bill, it looks like we
2:24:07already have a mechanism in place. and
2:24:08just wanted to give you kudos, not for
2:24:10me, but from the community who said this
2:24:12was much more efficient and more timely
2:24:14than in the past. Um, when we're in
2:24:16crisis, I know it's very difficult to
2:24:18manage all of the things that are going
2:24:20on. And then with KDH, I don't think a
2:24:22lot of people understand that we can't
2:24:24we can't give the green light before
2:24:25they give us the green light. So, also
2:24:27kudos to the manager who I believe was
2:24:30really trying to manage communicating
2:24:31with us before the public. And I know it
2:24:34doesn't work out the way we always
2:24:36wanted to, but grace in these moments
2:24:38and acknowledging where we have gotten
2:24:40better is critical to encourage our
2:24:42staff to continue to figure out ways to
2:24:44be more efficient and timely with those
2:24:46responses.
2:24:47>> And that there just reminded me uh that
2:24:49that's something we learned with this
2:24:50system this time is maybe in our initial
2:24:52notice that goes out to water customers,
2:24:54we need to put a note, hey, if you're a
2:24:56property owner or have apartments,
2:24:58notify your residents because they might
2:24:59not get the notification. That's
2:25:00something we learned this time that we
2:25:02probably need to include in the
2:25:03messaging. And then another thing I
2:25:04found from some people is they called in
2:25:06like, "Hey, I I have a water account.
2:25:08Why didn't I get a notification?" Well,
2:25:10their emails had changed, like they were
2:25:12using their previous work email or their
2:25:14phone numbers. So, we encourage people
2:25:16to log into your water bill or your
2:25:17water system account and update your
2:25:19contact information so we can get a hold
2:25:21of you in these events.
2:25:23>> And that's what I was just going to ask
2:25:24you, Tyler, is is there a call to action
2:25:26to the community? because now I'm
2:25:28thinking I I don't remember what email
2:25:30address is tied to my water account or
2:25:32what phone number. So I probably need to
2:25:34check that too. So obviously we have a
2:25:36call to action for our public works
2:25:38department and it sounds like they have
2:25:39their lessons learned and next steps.
2:25:41And then I think the next call out is
2:25:43for the community of you know making
2:25:45sure that you're signed up for alerts,
2:25:47making sure that your information on
2:25:48your water bill is accurate. The other
2:25:50thing that I would mention is I used to
2:25:52work at the county and I worked in the
2:25:54health department and we were
2:25:55responsible for public health
2:25:56emergencies and they maintain a list
2:25:59serve of faith-based organizations
2:26:01within the community and I'd be happy to
2:26:03help connect you with that because then
2:26:05the faith-based communities send
2:26:07something out to all of their members
2:26:10which is a pretty you know wides so
2:26:12there's maybe other even entities that
2:26:14we can utilize even though I understand
2:26:16not the public the public um the
2:26:18emergency contact But there's other ways
2:26:21that I know the county because of public
2:26:23health emergencies gets the information
2:26:25out. But I just I want to share again,
2:26:27thank you to communications. I think you
2:26:29all did an amazing job. Thanks to the
2:26:31city manager. I know that you were
2:26:32communicating with us as soon as you
2:26:34heard something. And then thanks to our
2:26:37public works team.
2:26:38>> Tyler, to that end, where can people
2:26:40sign up for all the alerts?
2:26:43>> So witchaw.gov/connect, /connect. I
2:26:45believe we have all of our alerts, uh,
2:26:47advisories, newsletters, all of that's
2:26:49on that page there.
2:26:50>> Thank you. Yeah, I I appreciate
2:26:52especially the work that communications
2:26:54did in sending out to the water
2:26:55customers responding to 144,000 people,
2:26:58400 or 144,940. It's pretty incredible
2:27:02to be able to synthesize all that. It
2:27:04looks like to email subscribers, the
2:27:06city has 4,086, which is a very small
2:27:09number, which I know it's trying to get
2:27:10people involved and people often don't
2:27:12care until it directly affects them. And
2:27:14so hopefully to our friends in the media
2:27:16as well. Please let the public know on
2:27:19how they can engage uh with us. There is
2:27:21a question. So I just want to give a
2:27:22shout out to communications for the work
2:27:24on as much as we could disseminate,
2:27:26making sure that we disseminate to the
2:27:28public. I do have a question about
2:27:30communication with KDH, which wouldn't
2:27:31be a Tyler question, probably be a maybe
2:27:34Dennis or Gary question. I notice on the
2:27:37maybe there are two questions I have
2:27:39with KDH. Number one, um it looks like
2:27:42that we left a voicemail for KDH at
2:27:466:40. Um obviously we must have had some
2:27:49communication between 6:40 and 7:04 to
2:27:52them to approve. I imagine they just
2:27:53didn't approve it based on a voicemail.
2:27:55So, when did we actually have that
2:27:57initial maybe conversation with KDH
2:27:59between those two times?
2:28:02>> Um, the best I've got and I can get you
2:28:04additional information, but you'll see
2:28:06at 704 was when the KDH approved our
2:28:09plan to declare the boil water advisory.
2:28:11So, somewhere in between there is
2:28:13probably when we reached them. I you you
2:28:15mentioned the 640. We left the
2:28:17voicemail. I think that the next time we
2:28:19heard back from them was around 7
2:28:21o'clock.
2:28:22>> Okay. So, I know we maybe have some
2:28:24communication with KDH on the front end
2:28:27and maybe I imagine they probably have
2:28:29somebody working 247 in this role um
2:28:32when this happens and so maybe they just
2:28:33had stepped away from the phone at 640
2:28:35or is that typical for us to leave
2:28:38voicemails on for them to respond?
2:28:39>> We do have the authority. That's a very
2:28:41good question because I asked that same
2:28:43thing of what what what if this happens
2:28:45at 2 o'clock in the morning. They don't
2:28:46necessarily have somebody 247. we do
2:28:49have the authority
2:28:51uh to move forward with issuing a boil
2:28:53water advisory at our discretion and
2:28:55obviously under our best judgment. Um we
2:28:58still like to whenever we have the
2:28:59opportunity to absolutely touch base
2:29:01with them first. Um I don't think at
2:29:04that point in time we had much doubt
2:29:06that that's what we needed to do. Uh but
2:29:08that's one thing we've talked about and
2:29:10I've spent some time talking to Don and
2:29:12our staff about is uh considering timing
2:29:15and and how we do that going forward.
2:29:17Well, maybe that's something that we
2:29:18talked to our friends at the state about
2:29:21how do we correspond with KDH, you know,
2:29:23at the end as well. Um, I found out
2:29:26because I was at a restaurant who found
2:29:28out from a bartender who found out from
2:29:31Facebook about KDH. And I know that KDH
2:29:34may have released the information before
2:29:35the city released the information, which
2:29:37in this case, all was clear, all was
2:29:39good, the water was safe, makes sense to
2:29:42have people drinking it. Let's say that
2:29:44the reverse happened and I found out
2:29:46from a bartender who found out from
2:29:47Facebook that the water is contaminated.
2:29:50I have a problem with that in terms of
2:29:52communication to the city council who's
2:29:55supposed to be able to also communicate
2:29:57to the general public as well. And so I
2:29:59just hope maybe as one of the action
2:30:00items we figure out maybe a timeline
2:30:02with KDH um so that we can be looped
2:30:05into that conversation. Again, this was
2:30:07best scenario that it was able to get
2:30:08back and um the the water was tested
2:30:12correctly, but if there was
2:30:14contamination, I think that there could
2:30:16have been much more um challenges from
2:30:18that.
2:30:19>> I appreciate that. I'll I'll provide one
2:30:21quick comment. So, I was on the call.
2:30:23Here's what I think happens. Truly
2:30:25instantaneous information sharing
2:30:27because to your point, what I was able
2:30:29to gather when the advisory was lifted,
2:30:31we we were on the phone with KDH at
2:30:345:15. We had four tests remaining coming
2:30:36in at 517.
2:30:38They absolutely have to be the ones to
2:30:41lift the boil water advisory. As soon as
2:30:43we heard at 517, all was clear. Um they
2:30:47were hanging up the on the call they
2:30:50were going to issue the boil water
2:30:51advisory. It couldn't have been 30
2:30:54seconds later and I saw the media had
2:30:56picked it up. So there's and that's
2:30:58fine. folks were watching KDH website
2:31:02and instantaneously saw that put the
2:31:04notice out. I don't even think we could
2:31:06move that fast. So, I was kind of
2:31:07surprised to see how that went down to
2:31:09your point.
2:31:11Still things were we learned along the
2:31:13way and I appreciate what you said. I'm
2:31:15not sure we could have got in front of
2:31:16that any quicker on the release part,
2:31:17but but I appreciate the question. We do
2:31:20want to be as much in alignment as we
2:31:22can, especially with city council.
2:31:25I I just want to say um thank you to all
2:31:27staff public works comms um anytime
2:31:31something like this comes up. I know you
2:31:32guys are scrambling uh either out there
2:31:35or getting out of bed even with these
2:31:38alerts. So I I do want to thank all
2:31:40staff for their hard work on this issue.
2:31:42Again, you never hope for something like
2:31:45this and there's always things that you
2:31:46can learn from it, but um you guys are
2:31:49doing a lot of hard work out there. So,
2:31:51just again expressing my appreciation
2:31:53for all the work that you guys do.
2:31:55>> I appreciate that. And I I want to thank
2:31:57staff real quick, too. I'll tell you
2:31:58what, this is not easy on people when
2:32:00these things happen. Uh we train staff,
2:32:03we prepare for these things, even though
2:32:04we never want to see them, especially in
2:32:07what ended up being a real anomaly
2:32:09situation here, I would say. But they
2:32:11they take it personal. We have some very
2:32:13talented people that care a lot about
2:32:15what they do. So, it's hard on staff. We
2:32:18will learn from it. We'll move forward.
2:32:19But I appreciate that.
2:32:25>> Thank you, Gary. I see no further
2:32:28comments. Um, I just want to add one
2:32:30more thing. I think the main message is
2:32:32we wanted to get a debrief. Um, but I
2:32:34think that this is still going to be an
2:32:36ongoing uh debrief. Um, and I appreciate
2:32:39the detail uh that was provided at this
2:32:42debrief just a few days from that uh
2:32:45news conference. The main goal of that
2:32:48debrief is how do we not have this
2:32:50happen again and I know that you guys
2:32:52are still working hard on that. Um, I
2:32:55would like to see that information be
2:32:58updated on the website. Um, whether it's
2:33:02the timeline that we just received, um,
2:33:05as well as this clip of this workshop
2:33:10>> and mayor, thank you very much. As we
2:33:12move forward and to all council members,
2:33:14certainly thank you. During this
2:33:15process, we will be sending out a
2:33:17follow-up thank you to the community.
2:33:20Um, as well as about the call to action
2:33:22about ways they can engage for
2:33:24communications as well. And then we will
2:33:27be highlighting the information that
2:33:29we've presented today will be available
2:33:31on the website for everyone to have the
2:33:33debrief on this as well. So, we are
2:33:35going to do a community follow-up. And I
2:33:37will say that if you happen to catch the
2:33:40fact that this impacted medical
2:33:42providers, school system, certainly
2:33:45businesses, residents, um we did have a
2:33:48lot of good stories out there, people
2:33:50willing to provide water. We had
2:33:52communications from a billboard company
2:33:54about the boil alert. So, we had a lot
2:33:57of community pull together to assist in
2:34:00this. So, clearly a big thank you to our
2:34:02city staff. Um but we also had a lot of
2:34:04community partners who I know had a
2:34:07hardship but pulled together. So
2:34:09certainly an opportunity when we have
2:34:10struggles good to see people come
2:34:12together. So for the next 10 minutes we
2:34:16have two topics and we're going to go
2:34:19quickly through just an update on the
2:34:21bio
2:34:23nutrient removal construction and then
2:34:25we'll do one more on the drainage of
2:34:27Bleley.
2:34:27>> Yes sir. Thank you manager. Uh this is a
2:34:30lot better news story. I want to give
2:34:32you an update on the BNR project. We've
2:34:34uh talked about this over time. I want
2:34:35to let you know where we're at. Just as
2:34:37a reminder, this project uh became
2:34:39necessary in response to updated
2:34:41discharge permit requirements that had
2:34:44to be in place by 2027.
2:34:46Specifically, phosphorus and nitro
2:34:48nitrogen removal limits have changed.
2:34:51And at the same time, the city has a
2:34:53desire to implement odor control as part
2:34:55of the project. The project budget of
2:34:59just over $387 million was approved in
2:35:02March of 2024 by the city council uh
2:35:05along with an awarding of one of the
2:35:07construction packages of that time.
2:35:09Somewhere around $60 million of that
2:35:11budget is dedicated specifically to odor
2:35:13control. We didn't start out that way.
2:35:15This again uh was a
2:35:19mandate from uh through KDH and EPA to
2:35:23remove nutrients from our wastewater
2:35:25stream. We took the opportunity as we
2:35:27worked through developing this project
2:35:29and and finding financing for it uh to
2:35:32do everything we can to impact the odor
2:35:34issues that have been there for a long
2:35:36long time. Uh change orders for package
2:35:39two and three so far have effectively
2:35:41used up the budget contingency. Just as
2:35:43a quick side note, however, we do
2:35:46continue to value engineer the other
2:35:47phase of the project. cost savings
2:35:49continue to be identified and so far
2:35:52those offsetting upcoming changes
2:35:55uh will not require additional funding.
2:35:57So we're still doing good on the funding
2:35:58side. Project completion overall is
2:36:01scheduled for late next year. Some
2:36:04individual packages have had a few
2:36:06weather delays um but overall that
2:36:09completion date remains the same.
2:36:12Duration of the project is 65% complete.
2:36:14Highlight some of the work that we've
2:36:16done. and the primary clarifiers where
2:36:17we see a lot of the odor issues from.
2:36:20Two of the three primary clarifiers have
2:36:21been cleaned, rehabilitated, and have
2:36:23covers placed over them. The third one
2:36:26is coming soon. The digesttors, two of
2:36:28the four digesttors have been emptied,
2:36:30rehabilitated, and are back in
2:36:32operation. I might call your attention
2:36:34to the size of some of our facilities.
2:36:36If you look at that second picture and
2:36:38see the people inside that digtor, it
2:36:41just gives you some idea of the
2:36:43magnitude and the size of these
2:36:44facilities. That's how you get to almost
2:36:46$400 million in a project. The BNR
2:36:49structure, this is the main component of
2:36:52the whole nutrient removal we talked
2:36:54about. Very large facility. Uh the
2:36:57concrete for the structure is complete
2:36:59and has passed water tightness testing.
2:37:02The new thickening, I'll just run
2:37:04through a couple of things here without
2:37:05going into a lot of detail. The new
2:37:07thickening facility is in operation.
2:37:09It'll replace the old system. the
2:37:11influent wet well at the head of the
2:37:13plant has been rehabilitated and bar
2:37:15screens have been replaced. That
2:37:16influent wet well, this is where
2:37:18everything flows in. Uh, as we were that
2:37:21was not originally part of this project.
2:37:24We were trying to focus on the the the
2:37:26BNR components, the odor control. As we
2:37:29got into construction, we found that
2:37:31that wet well was in very deteriorated
2:37:34condition. Now is the time to make those
2:37:36changes. That is an additional cost that
2:37:37we're working into the contract.
2:37:39Hopefully we can offset it with other
2:37:41costs that we are not using. UV
2:37:43disinfection has been upgraded and
2:37:45expanded. Two of the four odor control
2:37:47systems. So along with the covers we're
2:37:50putting on the clarifiers. Uh two of we
2:37:52have four odor control systems being
2:37:54constructed. Two of the four have passed
2:37:57performance testing. We will see
2:37:59noticeable changes in odor by the second
2:38:01quarter of 2027. We are seeing changes
2:38:03already. We've got monitors on the
2:38:05perimeter of the the facility and we are
2:38:08seeing overall a change in odors. A lot
2:38:11of things can impact that. And while
2:38:13we're building this project around an
2:38:15operating facility, there's things that
2:38:18change daily. Some systems come offline,
2:38:20the odors can spike back up. Once we get
2:38:23to next spring, we'll start to see a
2:38:25really big difference. Upcoming
2:38:27activities, uh, the last primary
2:38:29clarifier,
2:38:31uh, we'll have the cover installed soon.
2:38:33The third of four digesttors is being
2:38:35rehabilitated. Aiation basins,
2:38:37centrifuge building uh will eliminate
2:38:41the old belt filter presses. This is big
2:38:44for us operationally going forward. The
2:38:47lab and operators area at the admin
2:38:48building will be updated.
2:38:51Um testing and commissioning current
2:38:53operations staff is being trained on
2:38:55each system as it constructed and comes
2:38:57online. We will need 13 additional staff
2:39:00required for all of the new components.
2:39:03Uh interviewing and hiring for the
2:39:05highest priority positions is underway.
2:39:07This is included in the current budget.
2:39:09That's all I've got for BNR. Happy to
2:39:10answer any questions.
2:39:12>> Thank you Gary for doing these updates.
2:39:15Um I have asked for this so that uh the
2:39:18major infrastructure projects get a look
2:39:21during workshop uh not just when we have
2:39:23change orders. So, thank you for the
2:39:26work on the BNR and you're going to move
2:39:27on to Bleley.
2:39:30>> I'm going to kick this off and then I'm
2:39:31going to let Paul take this. I have been
2:39:33with the city for 31 years, started our
2:39:36construction group. I've been involved a
2:39:38lot of designing and building projects.
2:39:39I can remember back in the first couple
2:39:41months I worked here about Bleley
2:39:43drainage. It's been an issue for a long
2:39:45time. This neighborhood was built
2:39:47effectively in an old creek bed. Um, if
2:39:50you've ever gone on First Street and
2:39:53stood at Bleley and looked at both ways,
2:39:55you're standing in a valley, you can get
2:39:56why there's been drainage concerns here.
2:39:59It has been a life safety risk issue for
2:40:02many, many years. Uh, we've talked about
2:40:05over the over the course of time trying
2:40:07to find a way to address the drainage
2:40:09issues. Cost has been a factor. In 2017,
2:40:12the city council implemented a $1 base
2:40:14rate uh addition to the storm water
2:40:18utility fee. We've used that $1 increase
2:40:21since that time effectively to build up
2:40:24funding for this project. $36 million
2:40:26Paul will talk about. He's going to talk
2:40:28you through the phases where we've been,
2:40:30where we're going. This is an issue that
2:40:32we have been trying to address for a
2:40:34long time. I'm just want to say one last
2:40:35thing. Projects like this, big projects
2:40:38like this do impact the neighborhood.
2:40:40They impact the neighbors. We know that.
2:40:43We are sensitive to that. We will
2:40:44continue to be. Um we've had great
2:40:47conversations with Council Member
2:40:48Shepard, Council Member Johnson prior to
2:40:51him. We will continue to listen. We're
2:40:54going to continue to look for ways to
2:40:56improve uh going forward uh what
2:40:59construction looks like and the impact
2:41:00of property owners. Paul's going to hit
2:41:02on a lot of those, but I just want to
2:41:03let you know we're not done as we stand
2:41:06here today with the phases of
2:41:08construction that's still going. We're
2:41:09looking for every opportunity we can to
2:41:11minimize that impact to the adjacent
2:41:13property owners. I'm going to let Paul.
2:41:16>> Thank you, Gary. [clears throat]
2:41:19Um I want to remind uh city council the
2:41:21project limits the uh original study had
2:41:25gone up to um 13th Street near Claude
2:41:28Lamb Park. However, due to um after
2:41:31evaluating the level of impact and
2:41:33costs, the project limits are now from
2:41:36basically Kellogg to Elm Street as shown
2:41:38in blue. Um we've had quite a bit of
2:41:41history on this project beginning with
2:41:43public meetings back in 2022.
2:41:46Um we've held meetings throughout um
2:41:49additional meeting in spring of 2024.
2:41:52Um design of the channel began in 2023
2:41:55which is south um of Waterman
2:41:57[clears throat] Street. And then we've
2:41:59uh began some utility relocation for
2:42:01phase two in late 2025
2:42:05as well as um additional meetings in
2:42:09summer of 2025.
2:42:11Began property acquisitions for
2:42:13easements in May of 2026.
2:42:16We had an open house for those and then
2:42:18another public meeting as council member
2:42:21Shepard sent out um last Wednesday
2:42:23night.
2:42:25This project is about public safety. As
2:42:27Gary had mentioned, um Blackley um
2:42:30rescues require a different type um of
2:42:35response due to the velocity of the
2:42:37water, not necessarily the depth, but
2:42:39the velocity of the water. And during
2:42:42some events, emergency vehicles um can't
2:42:44get out to residents or residents can't
2:42:46leave their houses.
2:42:49People in vehicles have also been swept
2:42:51down um with heavy rains.
2:42:55I quickly go over this chart here. Um,
2:42:58USGS um have guidelines identifying
2:43:02hazardous conditions based on depth and
2:43:05velocity. And I'll kind of point to your
2:43:07attention to English Street there. Um
2:43:11the boxes, anything in yellow is less
2:43:14than a foot of depth and anywhere up to
2:43:18six inches can stall a vehicle or cause
2:43:21uh loss of control of the vehicle. The
2:43:24orange represents one to two foot and a
2:43:27foot will um float many passenger
2:43:30vehicles and then the red is more than
2:43:33two feet. So at English Street during
2:43:36this particular event in July of 2015,
2:43:40the depth of water was 2 1/2 ft. The
2:43:43velocity of water was 4.8 ft per second
2:43:46leading to a waiting safety factor of 12
2:43:49point over 12 and um anything over 10 um
2:43:54by per the USGS
2:43:57is a hazardous condition for adults.
2:44:01the proposed you know to the right of
2:44:03the screen the post construction using
2:44:07that same rain event uh English street
2:44:10the max depth is 1.21 ft with a velocity
2:44:13of 1.5 for waiting factor of 1.82 82.
2:44:17So, it's substantial um improvement and
2:44:20you can see that as you read down the
2:44:22table and throughout the rest of the
2:44:24corridor
2:44:27showing this a little bit different uh
2:44:29way. The um
2:44:32[clears throat] depth of the water shown
2:44:34in blue um lesser depth is lighter blue,
2:44:38darker um depth is um deeper. You can
2:44:42see some quite a bit of change there
2:44:44with the proposed improvements there
2:44:47towards the center of the screen at
2:44:48Robinson School south of Central.
2:44:52And you can see a lot more light blue as
2:44:54the proposed uh improvements are
2:44:57completed.
2:45:00Mentioned the project phasing. Phase one
2:45:02was between Waterman and Kellogg which
2:45:03rebuilt the channel. That is
2:45:05substantially complete. Phase two will
2:45:09um construct sewer and reconstruct the
2:45:12sewer and water utilities from Waterman
2:45:14to Second Street. That project is uh
2:45:17anticipate anticipated begin in 2027
2:45:21with the blue phase and I'll get into
2:45:23these a little bit more starting in
2:45:25quarter 3 of 2027 that were actually
2:45:27construct the storm water box.
2:45:30>> Hey Paul, quick question on phase one.
2:45:32Um I drove by there this weekend and it
2:45:34looks pretty much done. However, there
2:45:36was some what looked like a railing. Is
2:45:40there going to be railing on that?
2:45:42>> There will be a more um yes, permanent
2:45:44railing that will be put on that. Yes,
2:45:46right now it's 2x4s, I believe. So, but
2:45:48there there will be a more permanent
2:45:50railing railing installed on top of that
2:45:52wall.
2:45:53>> How much was phase one?
2:45:55>> I will get to that here at the last
2:45:57towards the end of the slides here.
2:45:59Mayor, um phase two, as I mentioned, so
2:46:02this uh this drawing here is a 3D view.
2:46:05Um the brown of course is under the
2:46:07grass and the two green um pipes are
2:46:11sanitary sewer that we will be
2:46:13constructed and the two blue pipes are
2:46:16uh new water lines and the red
2:46:18identifies the u rightway slash public
2:46:22property lines. Uh trees within the
2:46:24rideway will be uh removed with the
2:46:27project to install the box. Um and then
2:46:30we will also put some um access roads on
2:46:34either side of Bleley Street and I will
2:46:36show that in a little bit more detail.
2:46:38So this is an extensive uh project as
2:46:41Gary mentioned um and [clears throat] we
2:46:45will be going block by block.
2:46:47Installation will be slow. Um dis
2:46:50disruption to the residents within that
2:46:52block will last four to five months. As
2:46:55council member Shepard had mentioned at
2:46:57the meeting, um he had met with quite a
2:47:00few folks. Staff is exploring um with
2:47:03the consultant whether or not there are
2:47:05any ways to reduce the amount of time
2:47:06that residents will be um you know will
2:47:10experience the disruption. So we will
2:47:12continue to work through that with the
2:47:15consultant.
2:47:18I mentioned easement acquisitions. We
2:47:20have approximately 70% of the easements
2:47:23required for the project as shown in
2:47:26green. And these easements are really um
2:47:30needed to construct these temporary
2:47:32roads on either side of Bleley Street.
2:47:34These temporary roads will provide
2:47:36access to the you know driveways of the
2:47:38residents
2:47:40as well as we have met with Witchaw Fire
2:47:43and EMS. Um although you can't take a
2:47:45large truck down there, they can get
2:47:47their squad trucks down and it would be
2:47:49accessible for uh ambulance service to
2:47:52drive down those. Speaking, you know,
2:47:54hearing from the public, we want to
2:47:56limit, you know, who drives down those
2:47:58roads. I can't imagine anybody with the
2:48:00exception of the residents would be on
2:48:02those, but we will um look at signage to
2:48:04uh prevent anybody else that might want
2:48:07to cut down through Bleley and use those
2:48:09access roads. other than residents.
2:48:13[clears throat] We have worked with the
2:48:14residents quite extensively. We um on
2:48:17trees especially on private property um
2:48:20you know anytime we can protect the root
2:48:24zone in green if we don't have much much
2:48:27excavation that's a good thing. The
2:48:30yellow would require some uh root
2:48:34pruning as well as some of the canopy
2:48:37pruning to hopefully salvage that tree.
2:48:40And anything in red, um we would
2:48:42recommend that the tree be removed. Um
2:48:45you know, if it wasn't, it may live for
2:48:49a year or two, but damage to the root
2:48:51structure, the last thing we'd want to
2:48:52do is have a windstorm and then, you
2:48:55know, it blow over. So we have done
2:48:57everything we can to uh minimize the
2:49:00impact of any trees that might be on on
2:49:03private property.
2:49:05We have a tree planting replacement pro
2:49:08uh tree replanting or replacement
2:49:13design with the project. We have worked
2:49:15with um area residents to talk and to
2:49:19talk about you know species of trees
2:49:21that they might want back spacing of
2:49:23trees etc. So, we will continue to work
2:49:26with those residents who may lose trees
2:49:29throughout this process.
2:49:33Whoa, that is small. It's a project cost
2:49:36to date. I apologize for that, mayor.
2:49:39The uh the um phase one construction, we
2:49:43are estimated that to be um just a
2:49:46little over $6.5 million at this time.
2:49:50And then other design costs, etc. Um we
2:49:54are approximately 9 million um a little
2:49:57over $9 million at this time to project
2:49:59cost to date
2:50:02>> and the total project is 36 or 37.
2:50:06>> That's the next slide. So the existing
2:50:07budget of 13.8 million was approved by
2:50:10city council on February 25th of 2025.
2:50:13The 2027 through 36 adopted capital
2:50:17improvement program includes an
2:50:18additional 22.2 $2 million for a total
2:50:22budget of $36 billion utilizing storm
2:50:25water utility funds.
2:50:29>> How much has been collected in that
2:50:31storm water utility fund uh that started
2:50:33with $1 back in was it 2017?
2:50:37>> I don't have an answer for you that I'm
2:50:40not sure.
2:50:48Um, I can get you that information. It's
2:50:50kind of hard to [clears throat] give you
2:50:51exact number because we look at a
2:50:52balance between cash funding and
2:50:55and bonding part of the projects, too.
2:50:58But I'll get with our experts and get
2:50:59you a number.
2:51:04All right. Then one last slide I believe
2:51:07is the next steps. We will wrap up
2:51:08easement acquisitions. I mentioned the
2:51:11private utility relocations have been
2:51:13completed there between Waterman and
2:51:15Second Street. and then we anticipate
2:51:17final design of the uh remaining phases
2:51:21to be um provided to us in October next
2:51:25month.
2:51:26Um I want to say thank you to Council
2:51:28Member Sheepard for um working alongside
2:51:32with public works and hosting a couple
2:51:34of um listening sessions. Um but also
2:51:38we've been getting emails as well. I
2:51:40think other individuals even in
2:51:42community um drive through this area and
2:51:45so they have they may not know uh that
2:51:48timeline that you provided. So thank you
2:51:50for providing a timeline. Um the scope
2:51:54of this work is extensive. It's a $36
2:51:58million project. Um I wanted to know if
2:52:02there have been any considerations to
2:52:04reduce the scope during this time frame.
2:52:08We had originally and we have you know I
2:52:11think originally this project um you
2:52:13know this original study was back in
2:52:152018 you know 2022 we had an original
2:52:20estimate of hund00 million on one of
2:52:22these due to you know just completely
2:52:25taken out some of these properties total
2:52:28property acquisition instead of just
2:52:29temporary easements. So we have reduced
2:52:32the scope of the project. We believe
2:52:34this this proposed scope is where we
2:52:36need to be to make it safe for area
2:52:39residents and folks traveling through
2:52:41this area.
2:52:42>> And for the folks that ask questions
2:52:44such as we see that phase one has been
2:52:47completed and there have been some
2:52:49improvements. Um however phases two and
2:52:52three have not. Um what is your answer
2:52:55to why phase two and three are still
2:52:58critical to this project working? I
2:53:01think it goes back to those original
2:53:02pictures and even this one where we, you
2:53:05know, folks either consciously or not,
2:53:08they get trapped in that water and then
2:53:10they're carried downstream. So, this
2:53:12will um which puts them at risk. It puts
2:53:15our our life safety folks at risk, fire
2:53:17department at risk to save those folks.
2:53:20So, um they responded to quite a few of
2:53:22those over the last 20 years.
2:53:29Paul and Gary, I just um couple of
2:53:32things. So, this project obviously has
2:53:35been discussed amongst the council well
2:53:37before my time. going back to 2022 is
2:53:40when I can see that we've started the
2:53:42public discussions with the community
2:53:43and I think many of my colleagues were a
2:53:45part of these discussions prior to me
2:53:47and I and I certainly want to share with
2:53:50the community that I understand the
2:53:51frustration of inconvenience and as I
2:53:54mentioned uh to public works staff
2:53:56there's many valid concerns that I look
2:53:58forward to working with you all with to
2:54:00include like how are we going to
2:54:01mitigate um concerns about the the
2:54:04toxins that might come from the
2:54:06constructions or how can we assure that
2:54:08folks with health concerns in that
2:54:10community don't need to be concerned
2:54:12that this construction is going to
2:54:14heighten their risk for for health
2:54:16concerns. Um, and then I also know that
2:54:19the trees are a very sensitive subject
2:54:20not just to this part of of our city but
2:54:24everywhere in Witchah. We know that we
2:54:26need our tree canopy. Uh, that said, um,
2:54:29I also want to thank our management
2:54:31fellows. They went with me to the
2:54:34protest that actually occurred right
2:54:36before the meeting. And I think it's
2:54:38important that when community is
2:54:40protesting, I think it's their god-given
2:54:42right. But we were there to listen. Our
2:54:43management fellows documented every
2:54:45single one of those concerns. I want to
2:54:47say it was a total of 36 concerns when
2:54:50they actually disagregated what the
2:54:52concerns were. Um we have also collected
2:54:55they collected the information for every
2:54:57single resident who wanted to talk to me
2:55:00directly and wanted a meeting. Uh I
2:55:02completed those calls last Friday. Um
2:55:04and then in addition to that I know that
2:55:06public works has already started looking
2:55:08at some different opportunities to meet
2:55:11people where they are. And in terms of
2:55:13immediate next steps to ensure that the
2:55:15community knows that the city is
2:55:16committed to them. Um, I'm going to be
2:55:18holding monthly meetings with those who
2:55:21um are interested in continuing the
2:55:23conversation. It'll be virtual and in
2:55:25person, but once a month I commit to
2:55:27doing that. I'm not going to commit our
2:55:29staff to that um because I want to be
2:55:31mindful of their capacity, but I will be
2:55:33there and I will be present. And then in
2:55:35addition, uh, we talked with comms last
2:55:38week about, um, surveying those on that
2:55:41Bleckley block as while I understand the
2:55:43entire neighborhood will be impacted,
2:55:45I'm I'm really concerned about the
2:55:47people's thoughts who will be directly
2:55:48impacted. So surveying what their number
2:55:51one concerns are or top three concerns
2:55:52are, and seeing from that data what we
2:55:55can actually address. So, um, I just
2:55:57want to reiterate again, and I feel like
2:55:59I do this a lot, but as folks are
2:56:00reaching out to my colleagues about this
2:56:02project happening in District 1. I
2:56:04certainly appreciate and value that they
2:56:06have relationships, but please come and
2:56:08talk to me because I'm the one fielding
2:56:10those concerns. I want to be able to
2:56:12hear from the community and I want to be
2:56:14able to address uh any concerns. But
2:56:19I don't believe that we should pause a
2:56:22project because of of its inconvenience
2:56:26when we know what the what the life
2:56:28consequences could be if we don't
2:56:30address this. And when we have children
2:56:33who water is coming up to their waist or
2:56:36uh our fire and rescue team is going out
2:56:38and they're saying this is a serious
2:56:39concern. I I think it's it's time for us
2:56:42to actually move forward. And I realize
2:56:44that it's inconvenient and I know that
2:56:46there are many concerns. I wish I had a
2:56:48magic wand to just complete this project
2:56:50so that it wasn't an inconvenience. And
2:56:52this is the tough part of government,
2:56:54making decisions even when people hate
2:56:57you for it. But our job is to serve and
2:57:00to make decisions in the best interest
2:57:02of people long term, not just now. So
2:57:05that's my thought process behind why I'm
2:57:07supportive of this. And I encourage any
2:57:09of my colleagues who have friends,
2:57:11family members in that area who have
2:57:13concerns to come and talk to me directly
2:57:15and we can work together on how we can
2:57:16move forward.
2:57:24All right. Thank you very much for
2:57:26letting us do those updates to give you
2:57:28a a flavor of all the work going on in a
2:57:30big city. So, it's good to uh have some
2:57:32great teamwork going on. Our last item
2:57:35today is economic development. So, I
2:57:37will ask Mark Manning to come up to kick
2:57:41us off and then we'll have a couple
2:57:44other presenters and then we'll open up
2:57:46for council input. This is a workshop
2:57:49session. So, this is the first of I
2:57:51think several conversations on economic
2:57:53development. I will also share with you
2:57:55as we go down this process some of the
2:57:58tweaks that we're making to the economic
2:57:59development staffing and department. Um,
2:58:01so we have, I think, a good opportunity
2:58:04to evaluate where council is on
2:58:06incentives, then how we implement it as
2:58:08staff with our new staff members. So
2:58:10Mark, take it away.
2:58:12>> Good morning. Mark Manning with the
2:58:14Department of Finance.
2:58:15>> Thanks.
2:58:16>> Uh, today, this morning, or still this
2:58:18morning, I want to lead off with just a
2:58:20very brief summary of how we got to
2:58:22where we are based on our policies and
2:58:24goals and objectives in economic
2:58:26development. Uh then uh I'll turn it
2:58:28over to Andrew with the Witchaw Greater
2:58:30Partnership. Uh he'll talk about uh
2:58:32maybe give you a broader perspective,
2:58:34talk about best practices and
2:58:35nationalwide trends, talk about our
2:58:37tools that we use here, some of the
2:58:39guidelines and the guardrails and some
2:58:40of our experience. Uh then he'll morph
2:58:43into some of the discussion that we've
2:58:45had recently particularly in 2025 and
2:58:47and and the bearing of or the relevance
2:58:49of that. And then we'll talk about uh
2:58:51considerations and things that you might
2:58:53want to think about in refining our
2:58:55policy. Uh so the furthest I have can
2:58:59been able to find economic development
2:59:00policy here in Witchaw is 1976 and just
2:59:03for pers for perspective at that point
2:59:07uh our objectives were to attract
2:59:09private investment and to increase
2:59:11community income and you'll see over the
2:59:13years that those uh two uh goals have
2:59:16basically stayed the same. We've just uh
2:59:18built on them over the years. In uh 2004
2:59:21uh we talked about enhancing the private
2:59:23investment to provide jobs. We talked
2:59:25about recognizing the importance of
2:59:27quality of life and economic development
2:59:30and we talked about recognizing the
2:59:32importance of expanding the tax base. So
2:59:34again we kind of refined and built on
2:59:36our objectives from 1976.
2:59:39In 2012 again we restated that jobs,
2:59:42capital investment and tax base
2:59:44expansion were important and we added
2:59:46references to the importance of regional
2:59:48efforts and we also talked about the
2:59:50importance of quality housing. So
2:59:51quality housing made it into our policy
2:59:54in 2020.
2:59:56And then in 20 uh 2020 again we we kind
3:00:00of expanded our policy to recognize the
3:00:02importance of global markets because we
3:00:04participate in a global marketplace here
3:00:06in Witchaw. And we also talked about the
3:00:08importance of neighborhood redevelopment
3:00:10from an economic development standpoint.
3:00:12And finally we talked about the
3:00:14importance of educating the community
3:00:15about the benefits of our economic
3:00:18development strategies.
3:00:21Sorry. Uh that we did have some workshop
3:00:25discussion in 2024 2025 that fits in a
3:00:28little bit better with Andrew's
3:00:29discussion. So he'll uh summarize that a
3:00:31little bit more. U what I want to move
3:00:34to now is our strategic plan which we
3:00:36created in 2025. Again kind of a
3:00:39formulation of the same themes. Uh you
3:00:41can see on this slide here that we want
3:00:43to encourage private investment, expand
3:00:45job opportunities. Uh we want uh we
3:00:48focused on housing options uh in this
3:00:50case affordable and then we also talked
3:00:53about h how we want to reduce city risk
3:00:55in our economic uh development uh
3:00:57programs. Of course we did all this
3:01:00because economic development is one of
3:01:01our five pillars. Uh we want to grow our
3:01:04economy. Uh so that's why we had those
3:01:07economic development goals.
3:01:10Uh last slide I'll present is I wanted
3:01:12to show you briefly our tax base and how
3:01:14it's uh important to target some of our
3:01:16efforts. Again, we want to expand the
3:01:17tax base. Well, our tax base is about uh
3:01:2170% or so based on residential
3:01:25valuation. Commercial valuation is only
3:01:27about 30% of our tax base. You can see
3:01:30on the chart above the same is true of
3:01:32uh zoning in our our city. zoning for
3:01:34residential somewhere in the
3:01:35neighborhood of 70% where commercial is
3:01:38uh considerably sizable or smaller. So
3:01:41why is that relevant? Commercial
3:01:43property produces property tax much more
3:01:46efficiently for us based on the way it's
3:01:48classified under the state constitution.
3:01:50Uh commercial property is classified at
3:01:5225% where residential is only at 11 and
3:01:54a half%. So again, takeaway just is
3:01:57expanding the tax base is
3:02:00more efficient or easier uh if we expand
3:02:03the tax base in uh commercial uh
3:02:07valuation rather than residential. Not
3:02:09that residential isn't important uh but
3:02:11commercial valuation is what generates
3:02:13most property tax revenues uh for the
3:02:15city. Uh so with that, Andrew's I'm
3:02:18going to turn it over to him. He's going
3:02:19to focus more on a a broader
3:02:21perspective, talk about some
3:02:23nationalwide trends, and uh talk about
3:02:25some of the tools that we use here at
3:02:27the city of Witchaw and what our
3:02:28experience has been with him.
3:02:34>> Thank you, Mark. Mr. Manager, thank you
3:02:36for the invitation. And council and
3:02:39mayor, thank you for our ongoing work
3:02:41together in economic development. Happy
3:02:42to happy to be here. And Andrew Nave
3:02:45with the partnership. Um, I'm the chief
3:02:47economic development officer. Uh, and I
3:02:49think I have the the great benefit of
3:02:52having the the history and the
3:02:54connection back uh being here nine years
3:02:57now to several of those iterations that
3:03:00Mark uh showed about kind of where we've
3:03:02been with the guidelines and the policy.
3:03:04So happy to to to pull back into my
3:03:06memory and kind of reconnect and and
3:03:08talk about where we've been. But I I
3:03:11love the fact that you all are asking
3:03:12the right question of where are we going
3:03:14with our economic incentive tools and
3:03:15our guidelines. So really appreciate
3:03:17that. We wanted to kind of start with
3:03:18the why. Kind of why do we do these
3:03:20things? This is threaded across um your
3:03:22work and and and your strategic planning
3:03:25work of why do we do economic
3:03:26development, but if we could just boil
3:03:28it down to not completely overwhelm you
3:03:30with with bullet points and numbers,
3:03:32these graphics, I think, do a pretty
3:03:33good job of showing that of why we do
3:03:35economic development. It is about family
3:03:37supporting jobs. It's not merely jobs.
3:03:40It is absolutely about wealth and income
3:03:42and broadening our tax base. Those are
3:03:44threaded across all of the the strategic
3:03:46planning documents that are already um
3:03:49referenced in your guidelines. The first
3:03:51couple pages of your guidelines walks
3:03:52through kind of the why we do economic
3:03:54development in those two. Certainly
3:03:56community pride. We're trying to expand
3:03:58the notoriety of our community and
3:04:00industry diversification is also
3:04:02important. But the the one that I would
3:04:04I would really want to make sure that
3:04:06that is called out specifically is
3:04:08they're all important, but the
3:04:11competition that there is nationally and
3:04:13internationally for wealth and income
3:04:16and broadening our tax base or or think
3:04:18capital investment. We are in a
3:04:20competition. You are in a competition
3:04:23with the 19,000 other cities in America
3:04:26competing for a revenue stream of
3:04:28payroll or revenue stream of new taxes.
3:04:32a a company is going to put that
3:04:33somewhere and many times they're a
3:04:36company that's already here and we're
3:04:37trying to convince them to do it again
3:04:38and to keep doing it again. You're in a
3:04:41you're competitors for us. You are
3:04:42competing for that revenue stream and
3:04:45that's that's the mindset that that I
3:04:47work from and I'd love to to continue
3:04:49with you all is that we're having to
3:04:51compete uh for this. This is this is a
3:04:53lot of narrative but um we we want to
3:04:55kind of why do we design economic
3:04:57development tools or incentives? How do
3:04:59we kind of come at those? you've got the
3:05:01this just the simple standard definition
3:05:03of what incentives are. But I've loved
3:05:06this quote uh for a few years that I've
3:05:07seen and it's a little bit old now. The
3:05:08freconomics guys are not uh top of the
3:05:11New York Times bestseller lists anymore,
3:05:12but I love uh that book and I love these
3:05:14authors and and really economics, the
3:05:16study of economic development. Economics
3:05:18is a is at its root a study of
3:05:20incentives. What we all learned in kind
3:05:22of freshman econ class, how people get
3:05:24what they want or need, especially when
3:05:27other people want or need the same
3:05:28thing. It's the same thing for cities.
3:05:31Absolutely. There's a competition. An
3:05:32incentive is a bullet, a lever, a key.
3:05:34It's an often tiny object with
3:05:37astonishing power. That's so critical
3:05:40for you all to to continue to hold on to
3:05:42and appreciate that this is the one
3:05:44thing that you have to influence the
3:05:47massively complex economy. All of the
3:05:49things that go in to our local economy,
3:05:51to the regional economy, the state
3:05:52economy, you you can't possibly
3:05:54influence those things. But this is the
3:05:56one lever that you have to have some
3:05:58influence in what a company or a
3:06:01nonprofit or an organization might do
3:06:03with their capital. So I I just remind
3:06:06that it's it's kind of obvious, but I
3:06:07think it's really important to remember
3:06:08this is this is your tool. It really is
3:06:11uh to help our economy. And certainly
3:06:12there's the goals that we've we've kind
3:06:14of talked about in other ways. Some best
3:06:16practices. Mark asked me to kind of
3:06:18share some best practices of what um
3:06:20what are kind of common uh economic
3:06:22development guidelines and strategies
3:06:24around economic incentives or tools. Uh
3:06:27there's two different groups here. So on
3:06:28the left is the International Economic
3:06:30Development Council. That's the National
3:06:31Association, the National Trade
3:06:33Organization for the Economic
3:06:34Development Profession. I won't go
3:06:36through all of those point by point, but
3:06:37you can see that they're they're they're
3:06:39very specific in terms of what do they
3:06:41recommend for crafting a comprehensive
3:06:44um quality economic incentive toolkit
3:06:47would be a stated purpose and targeted
3:06:50uh a targeted approach and a
3:06:52comprehensive approach at that minimum
3:06:54criteria and maximum criteria have some
3:06:56range of what you're looking for. Data
3:06:58collection is something that I'm very
3:06:59proud that this this city and our staff
3:07:01do a really good job of. On the flip
3:07:03side, there's another organization, a
3:07:04for-profit consulting firm called Smart
3:07:07Incentives, which is highly thought of
3:07:09in the economic development circles, and
3:07:11they kind of list out some of similar
3:07:13what are some of the key bullet points
3:07:14that we should look for when crafting an
3:07:16economic incentive uh toolkit. In fact,
3:07:19as a matter of fact, I'll be with uh um
3:07:21the owner of that firm, the proprietor
3:07:23of that firm later this week in
3:07:25Washington DC. So, I'm going to bend her
3:07:27ear a little bit more about, hey, my
3:07:28community is is leaning forward in this
3:07:30conversations. These are some of the
3:07:32best practices. But what are we missing?
3:07:34What are the new trends that we can be
3:07:36looking at when it comes uh to our
3:07:37economic development tools, some
3:07:40additional trends and kind of food for
3:07:41thought kind of where economic incentive
3:07:43tools are going. Um you're going to see
3:07:44there that the number of jobs per
3:07:47project. This isn't a this isn't a hard
3:07:49and fast. This isn't a perfect
3:07:50depiction, but as a general rule, and it
3:07:53makes sense intuitively when we
3:07:55understand with innovation, with
3:07:57automation and technology that there's
3:08:00more work being done, more output being
3:08:02produced with less labor. So that's
3:08:04that's becoming more common, not across
3:08:06the board, not in every occupation, but
3:08:07that's a general rule. And you're also
3:08:09seeing massive investments in capital,
3:08:12whether it's capital equipment, whether
3:08:13it's real estate, that is happening
3:08:15globally, not just here in Witchah. So,
3:08:17we're seeing the the average capital
3:08:19investment per project grow and increase
3:08:21and then the number of jobs oftentimes,
3:08:23not every, but oftentimes decreasing.
3:08:26You're seeing a shift from all-inclusive
3:08:27eligibility that kind of throw a blanket
3:08:29of it over a a project or a company or
3:08:31an industry and everyone uh is eligible
3:08:35to more of a target approach. What do we
3:08:36want to see as a community? What does
3:08:38our economy really excel at? What kind
3:08:40of occupations do we have that we should
3:08:42target those kinds of projects, those
3:08:44opportunities in a little more specific
3:08:46fashion? Cash and upfront payments are
3:08:49decreasing in utilization nationally.
3:08:51You all are a leader in that. Your your
3:08:53your predecessors on the council were
3:08:55leaders in that when we adjusted the
3:08:56policy a few years ago that we moved
3:08:58away from that maybe a little ahead of
3:09:00the curve. Uh that's happened
3:09:01nationally.
3:09:03Interestingly though, for mega projects,
3:09:05for major projects, the incentive awards
3:09:08are going up significantly. And I won't
3:09:10go through a lot of data, but some data
3:09:12I pulled this morning from site
3:09:13selection group, which is a national uh
3:09:15economic development consulting firm
3:09:17that tracks incentives nationally. 16
3:09:20billion dollars of incentives were
3:09:22offered on the projects that they
3:09:24tracked just last year across the
3:09:26country. That comes to an average of
3:09:27$25,000 per job that was incentivized or
3:09:32about $3.5 million worth of incentives
3:09:34per project. So there's a on on there's
3:09:37a scale here that's that's going up
3:09:39considerably for the kind of the halves
3:09:41and the have nots or the communities and
3:09:42the states that are really really
3:09:44aggressive with with economic incentives
3:09:46and and the places that are not. North
3:09:48Carolina is one example has a1 billion
3:09:51dollar fund and that's what North
3:09:52Carolina is not Texas. That's not a huge
3:09:54economy 10 times our size. That's a
3:09:56state that's a little bit bigger than
3:09:57our economy in Kansas, but they have a
3:09:59billion dollar a year incentive fund
3:10:02just in the state of North Carolina. Um,
3:10:04in our state, there's incentive awards
3:10:06and you you all know that incentives
3:10:08happen at various levels of government.
3:10:10Wherever there's a revenue stream of
3:10:11government, you can think of that as an
3:10:13incentive. So, there's some aspects at
3:10:15the federal level with our federal
3:10:17taxes. mainly at the state level. The
3:10:19lion share of economic incentives
3:10:20happens at the state level where the
3:10:22state taxes flow. And then certainly
3:10:24we'll talk about at the local level, but
3:10:26at the state level, there's been some
3:10:28pretty aggressive posturing and
3:10:29incentives over the last few years.
3:10:31Certainly, we're all familiar with the
3:10:32Panasonic project that happened up in
3:10:33the Kansas City area. This year, about
3:10:36nine months ago, in Oland Park, a
3:10:38company called Fifth Serve was offered
3:10:40$155 million of state incentives. We
3:10:44haven't had a project of that scale in
3:10:46our neck of the woods. We've been kind
3:10:47of runner up a couple times and had some
3:10:50near misses on some projects, but we
3:10:51haven't had one of that scale. But those
3:10:53resources even exist even within our own
3:10:55state. So, it's not just some far-off
3:10:57place.
3:11:00[clears throat] Mark mentioned kind of
3:11:00the history of kind of where we got uh
3:11:02from a goals standpoint, but just to
3:11:05remind you about the economic incentive
3:11:07guidelines themselves. This isn't an
3:11:09exhaustive summary or history, but it I
3:11:11think it does a pretty good job of
3:11:12depicting it and keeping in mind that in
3:11:142004 is when the actual policy was
3:11:17shared and it was became a joint policy
3:11:19between the city of Witchah and Cedric
3:11:21County government. And what you had
3:11:23prior to that was that you had
3:11:24especially in our industrial districts
3:11:26where the approval process for some
3:11:28levels of government programs are a
3:11:30little different. you had some
3:11:33situations where applicants would
3:11:35effectively jurisdiction shop or
3:11:37incentive shop or maybe said and I'm I'm
3:11:40going to mix up you know which entity
3:11:41was which but maybe the city of
3:11:43Witchah's application fee was higher
3:11:46county's permitting process was a little
3:11:47bit longer and so they would look at the
3:11:49two jurisdictions back and forth one of
3:11:52the things not in totality but one of
3:11:53the things that a shared guidelines did
3:11:55at that time was eliminate that for in
3:11:57the industrial districts there's no
3:11:59point to incentive shop now because the
3:12:00policies are the same. Additionally to
3:12:03that, because this is Sedick County's
3:12:05policy, obviously their purview is
3:12:07within the unincorporated areas of
3:12:08Sedick County, many of the other cities
3:12:11in Sedick County have adopted this
3:12:13policy because it's the county's policy.
3:12:16They've kind of adopted onto it. So
3:12:17effectively what you all have done by
3:12:19setting your policy, you have set an
3:12:21example across Cedric County for smaller
3:12:23communities like Park City, like Bair,
3:12:26like some of the other cities that have
3:12:28some they have their own authority and
3:12:29their own discretion and there's maybe a
3:12:31slightly different direction or tool
3:12:32that some of them want to implement, but
3:12:33by and large most of those cities have
3:12:36adopted y'all's policy for for these
3:12:39guidelines. So I think that's that's
3:12:40helpful and productive.
3:12:41>> Can you go back to that slide really
3:12:43quick? Sorry. Sure. Yeah. So this was
3:12:45updated back in 2004. If I am doing my
3:12:48math correctly, that was five mayors
3:12:51ago. Was that led by the council asking
3:12:54for a joint policy or was this at the
3:12:57city manager, county manager level?
3:13:00>> The the direction and the desire at that
3:13:03time was pre was before my time as well,
3:13:05mayor. I what I understood and what I
3:13:07believe to be true is that it was driven
3:13:10by the local units of government, the
3:13:12staff of whether it's the city manager's
3:13:14office or the county manager's office
3:13:16because of the jurisdiction shopping
3:13:17because of the applicants in the
3:13:19industrial district. Sometimes maybe
3:13:21they weren't even shopping for a better
3:13:22deal. They were just confused as to do I
3:13:24go to the county first, do I go to the
3:13:25city first? And so there was a desire at
3:13:27the staff level from my understanding to
3:13:29bring that together. And that's when the
3:13:31policy and I know that also prior to
3:13:33that the actual tax abatement portion
3:13:36that we'll get into tax abatement
3:13:38guidelines hadn't been touched in many
3:13:39many years. So 2004 think of that as the
3:13:42first time that we really did a a clean
3:13:44sweep and a refresh of the economic
3:13:46incentive tools. But the point was that
3:13:48it's a shared policy and it's maintained
3:13:50that uh since then.
3:13:53>> And maybe a question on this as well.
3:13:55>> Sure.
3:13:55>> Um is there any concern or what has the
3:13:58data shown because if
3:14:00other local municipalities are adopting
3:14:03the same tools that we are now. We're in
3:14:05competition with them as far as the tax
3:14:08revenue, keeping it here in Witchah,
3:14:10growing the tax base here in Witchah.
3:14:12So, is there any data that shows maybe
3:14:16the bleed from Witchah to some of the
3:14:18surrounding communities?
3:14:19>> I would Yeah, I understand that concern,
3:14:21Councilman. I would say that the data
3:14:23wouldn't there's I don't know of a lot
3:14:25of data that would support that. There's
3:14:26a lot of um instances of companies in a
3:14:30community in Cedric County moving within
3:14:32Cedric County to another city for
3:14:34incentives. When that does happen, and
3:14:37it has happened on occasion, it's almost
3:14:38always entirely about, and it goes both
3:14:41ways. It's not just leaving Witchah, the
3:14:43big city, and going to a smaller place.
3:14:45Well, I'm in a I'm in a this off West
3:14:48Street on a small lot and I've expanded
3:14:50my building as much as I can and the lot
3:14:52is physically not big enough for me to
3:14:55keep expanding. I need another 20 acres.
3:14:57There's not 20 acres on West Street. I'm
3:14:59going to go to Maize. Or conversely, the
3:15:01other has happened. We've had businesses
3:15:03that were in Bair that moved to the uh
3:15:06K96 corridor in Witchah. Typically,
3:15:09that's a real estate decision. In my
3:15:11nine years, I can't think of a single
3:15:12instance where a suburban company has
3:15:15moved into Witchah or vice versa, a
3:15:17Witchah company has left to go to the
3:15:20suburbs in Sedick County entirely
3:15:23because of incentives. It just I I don't
3:15:24remember an instance. Andrew, I just
3:15:26want to make make sure I understand what
3:15:28you said in in my mind because just FYI,
3:15:32so our policy is joint with the county,
3:15:36but that doesn't mean the 19 other
3:15:38cities within the within the county also
3:15:42fall under that because they're their
3:15:43own entity just like you guys are. Yeah.
3:15:45So Goddard may have their own policies
3:15:47because I, you know, I see in the media
3:15:49I see on social media Hayes Hayesville
3:15:52just adopted something for example. So,
3:15:54I just want to make sure it's clear that
3:15:55Sedwick County is an entity and then all
3:15:58of the 19 other cities have their own
3:16:00policies, I'm assuming. Yes. Am I
3:16:02correct,
3:16:02>> Council? Absolutely correct. Um,
3:16:05technically, I think legally speaking,
3:16:06it would affect the unincorporated areas
3:16:08of Cedric County is the two policies.
3:16:11Um, but many of the cities in Cedric
3:16:13County do follow this. Now, some of
3:16:15them, to your point, some of them were
3:16:17Goddard approved an RHID program. So,
3:16:19they were a little more interested in
3:16:20that. So absolutely some have taken some
3:16:22deviations. But I guess the point I was
3:16:24trying to make is the theme that you
3:16:25have set has has rippled across the
3:16:28county that you guys have led by
3:16:30example. You're the biggest city
3:16:31obviously and you're going to you've led
3:16:32by example with setting your policy and
3:16:34honestly I think it helps the smaller
3:16:36communities to know this is what
3:16:38Witchah's priorities are. This is where
3:16:40the largest city that we depend on
3:16:43economically. These suburban communities
3:16:44absolutely depend on Witchah. I think
3:16:46that helps them, but absolutely they
3:16:48have their own their own direction.
3:16:50>> Thank you.
3:16:52>> So, but yeah, that's just a quick uh
3:16:55kind of brings us up to where we are. I
3:16:57did want to talk about in the middle of
3:16:58there, we talk about the LIPA study, the
3:17:00local incentive policy analysis, because
3:17:03that's the the kind of the most recent
3:17:04deep dive that we together took. We we
3:17:07engaged the partnership engaged a firm
3:17:09called Atti Advantage. It's a national
3:17:12uh economic development consulting firm.
3:17:14uh they ended up subcont subcontracting
3:17:16with a a gentleman out of Meguire Woods
3:17:19law firm who's one of the country's
3:17:20leading site consultants and so they
3:17:22produced in 2019 uh some recommendations
3:17:25a study for us that did a comprehensive
3:17:27look at both the state level and they
3:17:28looked at four different states and at
3:17:30the local level so they looked at four
3:17:32different metros across the country so
3:17:34De Moines Tulsa Omaha and then
3:17:37Greenville as kind of a aerospace kind
3:17:39of outlier um they looked at four
3:17:41different metros and both the local
3:17:43incentives like tax abatement and tiff
3:17:45and c. They looked at those but then
3:17:47also at the state level at the state
3:17:48tolls and did a comparison and what they
3:17:50came back with was these six
3:17:52recommendations I would say um that that
3:17:55were basically this is what we would
3:17:57like to see ch what we would recommend
3:18:00keeping up with kind of the the national
3:18:02best practices and kind of where maybe
3:18:04our policy um gotten a little out of uh
3:18:06out of out of bounds. These were their
3:18:08recommendations and I'm proud to stand
3:18:10before you and say nearly all of these
3:18:11have been adopted in one form or another
3:18:13that over the the the very whether it
3:18:15was 2019 or 2020 or the subsequent uh
3:18:18updates that we've had in in workshops
3:18:21or to the guidelines. We've updated all
3:18:23of these. So the regional growth plan is
3:18:25our comprehensive economic development
3:18:27strategy that highlights seven core
3:18:29industry clusters in our region. We
3:18:31aligned your guidelines aligned to those
3:18:33seven core industries. adapting the the
3:18:35program structure was was really about
3:18:38aligning to state statute that there was
3:18:40many instances where we were far far
3:18:42more restrictive than the state statute
3:18:43called for. So we were kind of pairing
3:18:45that back or looking at adjusting that
3:18:46from a competitiveness standpoint. So we
3:18:48adapted the program structure. Adjusted
3:18:51the benefit to cost ratio was a big part
3:18:52of that discussion in 2019. Uh
3:18:54Councilman Tuttle, I think you remember
3:18:56that that that was a big analysis that
3:18:58we had to look at was adjusting that
3:19:00focusing on post performance. We've
3:19:01talked about that that we're not doing
3:19:02upfront cash. We're looking at
3:19:04incentives that that that trail
3:19:06alongside of a a project. Educating
3:19:08stakeholders is the one area where I
3:19:10would give us kind of a u maybe a half
3:19:12score in the sense that we've done some
3:19:14of that. I think you the city's economic
3:19:16development report is a really good tool
3:19:17in that. I know we saw a big uptick in
3:19:19interest from the public when we had the
3:19:20economic development report and I know
3:19:22that's being worked on again. Uh I think
3:19:24the partnership we're a big part of that
3:19:25as well. We need to do more when it
3:19:27comes to educating citizenry and the
3:19:29business community about these economic
3:19:32guidelines and the economic tools.
3:19:34>> Oh, I'm sorry.
3:19:36>> Oh, sure. Yeah.
3:19:36>> Um, do you guys independently of us
3:19:39evaluate the the benefit to cost ratio
3:19:42of projects after they're through? So,
3:19:44do you go back and look and make sure
3:19:46that they performed
3:19:49relatively well to uh what the
3:19:51projections were?
3:19:52>> So, your sta your economic development
3:19:53staff does that. We kind of talk about
3:19:55it with the 5 plus5 review which is
3:19:57unique. Yeah. That's a part of that
3:19:58process. So the partnership staff we do
3:20:00not necessarily now we do informally on
3:20:03the projects that we've worked on to
3:20:05make sure that they're in compliance and
3:20:06it's not just at your guys's uh
3:20:09incentive tools but at the state
3:20:10incentive whether it's HPIP or peak or
3:20:12the other programs that that company has
3:20:13garnered. We're looking over their
3:20:15shoulder to make sure hey did you turn
3:20:16in that HPIP application or hey you
3:20:18committed to this for peak where are you
3:20:21at on that? So we do that informally but
3:20:23we don't have a formal capacity. Your
3:20:24staff does that.
3:20:25>> Thank you.
3:20:27>> Um [clears throat] I won't go through
3:20:28again all of these just in the deference
3:20:30of time but again a lot of these were
3:20:31were utilized. These were some
3:20:33additional LIPO recommendations. Land
3:20:35acquisition previously was not allowed
3:20:37under like the TIFF statute or the TIFF
3:20:39um guidelines that was kind of brought
3:20:41back in in terms of uh the 2019
3:20:44recommendations. Um tenency
3:20:46restrictions. There was a lot of
3:20:47discussion about we don't want national
3:20:49retail chains. we only want local
3:20:51change. There was a discussion about
3:20:52tenency uh and and so that was
3:20:54incorporated.
3:20:56In the interest of time, I'm going to
3:20:57fly through these because I think you
3:20:58guys know these a little bit, but I
3:21:00think for all of us, it does a does a
3:21:02breath of fresh air just to kind of
3:21:03remember the tools that we have. Um so
3:21:05I'm going to go through these pretty
3:21:07quickly, but I wanted to denote and the
3:21:09reason that Mark was gracious to let me
3:21:10kind of break out the slides this way.
3:21:12Um that we have I think it's helpful to
3:21:15have a paradigm or a thought process
3:21:16that we have two different types of
3:21:18incentive tools. What I would consider
3:21:20this slide that shows our CI, our TIF,
3:21:22our star bonds, those tools, think of
3:21:25those as development tools. Those aren't
3:21:28necessarily designed in the in the
3:21:30statutes for an individual company to
3:21:33perform a a specific task like creating
3:21:36jobs or creating capital investment.
3:21:38It's really about an these tools are
3:21:39about a geography, about an area for
3:21:42development. They're trying to get a
3:21:43place ready. Now, they because of our
3:21:45tax structure in Kansas, they lend
3:21:46themselves to commercial development. We
3:21:49can get into that, but think of these
3:21:50tools as development tools more than
3:21:54this slide would speak to our what I
3:21:57would consider our job or our employer
3:21:59incentives. These tools are specifically
3:22:01designed in their statutes and their and
3:22:03their criteria to elicit a response from
3:22:06the company, a job creation response or
3:22:08an investment in capital. So, they're
3:22:10two they fundamentally do two different
3:22:12things, but I know sometimes it's it can
3:22:14be easy to to have them conflated or
3:22:15have the the public misunderstand uh
3:22:17what they're about. So, I'll just start
3:22:19with CD. I think you're familiar with
3:22:21CD. Community improvement districts have
3:22:23been around for since about 2010. This
3:22:26is an additional development tool that
3:22:28creates an additional level of sales tax
3:22:30on a codified jurisdiction. you create a
3:22:33boundary a district and there's an up to
3:22:35additional two cents of sales tax that's
3:22:38um produced in that area pro proceeds go
3:22:42to public costs there's a much wider um
3:22:44discretion of what those costs can can
3:22:47reimburse or pay for than under the tiff
3:22:49statute so it's this program this tool
3:22:52was brought about as kind of an
3:22:53enhancement to the tiff tool was it was
3:22:56seen as tiff was limited in some parts
3:22:58of the state so this tool was brought in
3:23:00to broaden that um can be you can see it
3:23:02can be for public improvements reimburse
3:23:04private costs it's a a very wide
3:23:07latitude of things that it can do
3:23:10eligibility for CD uh it has to attract
3:23:12development um obviously needs to
3:23:15promote um new growth uh projects in the
3:23:18central business district or
3:23:19redevelopment areas are prioritized that
3:23:21was from the 2024 workshop that you all
3:23:24kind of prioritize that we want to see
3:23:26CIDs in these areas first and foremost
3:23:28not exclusively we're not going to
3:23:30restrict but we're going prioritize
3:23:32projects in in these in the central
3:23:33business district or redevelopment
3:23:35areas.
3:23:36Um, in terms of risk considerations, the
3:23:39statute allows for CI bonding capacity,
3:23:42but again, our preference, your
3:23:44preference is to have a what you call
3:23:46payo, pay as you go method. So, um, that
3:23:49that's codified in our guidelines. Um,
3:23:52there's obviously some restrictions on
3:23:53if it's a sales tax CD, we have kind of
3:23:55a debt coverage ratio of 1.2 to limiting
3:23:58some projects that we we don't want
3:24:00projects that uh that are too small to
3:24:02probably cover that. Um and again, if we
3:24:05get into the debt instrument, which we
3:24:06don't do very often, there's a
3:24:08prioritization of of uh special
3:24:10obligation rather than geo bonds. This
3:24:13is just a a quick depiction of the CIDs
3:24:15that we have in the community and we
3:24:17have over 17 of them. The K96 C has been
3:24:20performing uh well and is uh probably
3:24:24had performed well was scheduled to last
3:24:27uh till 2035 and it was stopped after
3:24:30seven years because it uh it achieved
3:24:32its goals and it and was able to
3:24:34reimburse everything. So yes, exactly it
3:24:35met its goals far ahead of schedule. Uh
3:24:38we have 17 CIDs total only one the
3:24:41stadium CID is the only debt instrument
3:24:43CI that we have as a community.
3:24:46taxer group financing completely
3:24:48different uh tool uh one of the most
3:24:50common tools that exists in the United
3:24:52States in fact you can see there 49 uh
3:24:56states have a version of tax increment
3:24:58financing so I think it's important to
3:24:59know that this is an extremely common
3:25:01tool uh around the United States it same
3:25:04kind of a thing it's a development tool
3:25:06so it captures an area typically a
3:25:08redevelopment area or a conservation
3:25:09area an area that we're wanting to
3:25:11conserve and preserve and then it
3:25:13captures the incremental taxes above
3:25:14that the main distinction there is that
3:25:16it only pays for horizontal
3:25:18improvements. So, it's not as wide or
3:25:20the latitude isn't as broad, but it only
3:25:22pays think of roughly infrastructure.
3:25:24The other interesting dynamic that I
3:25:26think it's important for you all to see,
3:25:27it's not embedded in our guidelines, is
3:25:29that our tax structure in Witchah is
3:25:31unique because we don't have a local
3:25:34option sales tax. We don't use tiff the
3:25:37way almost every other city in our well
3:25:39certainly every other large city in our
3:25:40state does because most other cities
3:25:43have a local onecent or sometimes now
3:25:46two cent local tax and that can be
3:25:48captured in the tiff. We don't have
3:25:52that. We only we only have a dedicated
3:25:54tax countywide. The state the tiff
3:25:56statute in Kansas doesn't allow for us
3:25:57to capture that. So, all of the tiffs
3:25:59that you're familiar with are property
3:26:00tax increment tiffs. In Johnson County
3:26:03and in Selen County and in um Manhattan
3:26:07and and Douglas County, they're
3:26:09utilizing tiff with the property tax
3:26:11side, but primarily with the sales tax
3:26:14side. So, you see tiffs more common for
3:26:16retail shopping centers and commercial
3:26:18developments than you do here because we
3:26:20don't have that local option tax that is
3:26:23even eligible to grab. So, it's a it's
3:26:24an important distinction that I think
3:26:26frames kind of how we use these tools a
3:26:29little bit differently.
3:26:31You have guidelines uh pretty clear
3:26:33guidelines for TIFF eligibility. So, I
3:26:34won't go through all of those, but it's
3:26:35needs to support our plans and needs to
3:26:37enhance the quality of life. Uh fairly
3:26:39straightforward.
3:26:40Again, we've put in risk considerations.
3:26:42The staff have kind of called out what
3:26:44you have been enhanced enhancing your
3:26:46tools over the years. We have minimum uh
3:26:49requirements of of debt coverage of
3:26:51three to 3 to one. Uh developer needs to
3:26:54kick in equity of at least 15%. We have
3:26:58po we don't generally look at uh tiff
3:27:01debt or developer debt but we can look
3:27:04at that. And so those are the the
3:27:05criteria that we are putting in place to
3:27:07protect the taxpayer. We have that
3:27:08already codified in in the uh policy.
3:27:13As a recap of tiff, the city has 14
3:27:15different tiffs. You can see there, nine
3:27:16of those tiff districts are current with
3:27:18the uh the current increase of the
3:27:20property tax evaluation of $75 million.
3:27:23Um that's generated $2.5 million of new
3:27:26tax revenue. So we have successful tiffs
3:27:28that have closed out that have already
3:27:30generated um this this value back to the
3:27:33community and we're starting to see
3:27:34that. Oldtown is the perfect example of
3:27:36that. In fact, it's won a national award
3:27:39uh for its utilization and how it
3:27:41brought back a very underutilized uh
3:27:43area. Uh you can see the central and
3:27:46hillside tiff also al also transform
3:27:47that area by the hospital in less than
3:27:49four years way ahead of schedule. So
3:27:51there definitely is some areas where the
3:27:53tiff projects sometimes don't meet
3:27:55projections and sometimes those need to
3:27:57be rained in. But there's definitely
3:27:58examples of where they've performed to
3:28:00expectations and even exceeded those.
3:28:02This is a just a depiction of that
3:28:04central and hillside tiff. On the left
3:28:06is kind of what that area looked like
3:28:08before and then you can see clearly on
3:28:09the right the the density difference.
3:28:12Starbonds. I'll be quick about
3:28:13starbonds. So obviously this is a a
3:28:15major development tool for major
3:28:17commercial development. Um the
3:28:18distinction there is that it's this
3:28:20utilizing the states portion of sales
3:28:22tax. So that 6 and a.5% of state sales
3:28:25tax kicks in here which obviously uh
3:28:27changes the changes the calculus quite a
3:28:29bit. Um so it's the it's think of it as
3:28:32a super tiff. It's like tiff. It does
3:28:34the same things as tiff. It just
3:28:36captures that state's portion and it's
3:28:37more restricted on its use because of
3:28:39its aimed for kind of major commercial
3:28:42development. Um you can see there that
3:28:45the the criteria is not only outlined in
3:28:47state statute but uh the applications
3:28:49are actually approved by the Kansas
3:28:50Department of Commerce and the and the
3:28:52governor's office. Minimum criteria $50
3:28:54million. So it's not for every project.
3:28:57It's meant again for significant uh
3:28:59projects. Our guidelines have gone a
3:29:01little bit have strengthened that a
3:29:02little bit and asked for you know we
3:29:04wanting to see an increase in the city
3:29:05tax base with high quality development
3:29:07encouraging surrounding development and
3:29:08redevelopment as a priority.
3:29:11Again, we have risk mitigation built in
3:29:13uh to the guidelines already. Developer
3:29:15equity requirement of at least 15%.
3:29:18Physibility study is required by us and
3:29:20the and the state. And then um issued a
3:29:23special if if they were to consider uh
3:29:26debt instruments, uh we require a
3:29:28special obligation rather than geo bond.
3:29:31We have two star bonds districts in the
3:29:33community. Obviously, the one downtown
3:29:34on the river and then the K96 in Green
3:29:36Witch. You can see kind of the scale of
3:29:38those and the and the amount of
3:29:40investment uh that each of those two
3:29:42star bond districts have. Now,
3:29:44industrial revenue bonds. I'll I'll go
3:29:46through these because this again, this
3:29:48is our employer incentives. These are
3:29:49the tools that we have to generate
3:29:51whether it's job creation or new capital
3:29:54investment, new spending. This is the
3:29:56mechanism we have for that. And IRBs are
3:29:59a financing mechanism, but they're not
3:30:01your financing. It's privately they're
3:30:03technically from a tax standpoint a
3:30:05private activity bond. So they're
3:30:06private debt instruments that you're
3:30:08using your your mechanism uh to to bas
3:30:12basically implement. So that that second
3:30:13bullet point is the most key. There is
3:30:15no obligation for the city with tax
3:30:18abatement. I know you all know that and
3:30:19you've been continuing to to communicate
3:30:21that to the to the citizens. are
3:30:24definitely based on our guidelines that
3:30:25we have spelled out. And again, I would
3:30:27argue too that we do tax abatement in
3:30:30kind of two two mechanisms here. We call
3:30:32them IRB or EDX, but it's all property
3:30:34tax abatement. It's the same type of
3:30:36tool. And there's some form of property
3:30:38tax abatement in all 50 states. This is
3:30:40the most common economic development
3:30:42tool that exists at local government. We
3:30:44just have two separate mechanisms uh to
3:30:47do them. The abatement matrix applies
3:30:49both to the same of IRBs and ADX. And I
3:30:51think you guys know that there's just
3:30:52different criteria for how you get an
3:30:54IRB versus an EDX. Um, we can talk about
3:30:56that, but the the policy and kind of the
3:30:59the scoring matrix, if you will. What
3:31:01does the company receive and benefit is
3:31:03the same for both. And it's based on
3:31:06your guys's priorities. More capital
3:31:08investment, the more investment in the
3:31:10community, the more percentage of
3:31:12benefit, the more percentage of
3:31:13abatement. The more job creation that
3:31:15happens, the more percentage of
3:31:16abatement. And then based on the last
3:31:18couple the LIPA study and then the last
3:31:20couple workshops we've done we've really
3:31:22tried to encourage here at the bottom
3:31:23where you can see these kind of extra
3:31:24additional percentage points are for
3:31:26those behaviors that we're wanting to
3:31:28see is that company or that applicant
3:31:30utilizing state federal or utility think
3:31:33EverG or Kansas Gas. They using other
3:31:36entities benefits and programs and
3:31:38incentives too. So we're leveraging the
3:31:41city tax dollars with other tax dollars.
3:31:43We obviously we want to encourage
3:31:44sustainable development. talent
3:31:45attraction plan was was talked about in
3:31:48the last update being located in a
3:31:50redevelopment area, workforce benefits.
3:31:52So, all of these are things are things
3:31:54that a company can do and document to
3:31:56your staff that encourages a higher
3:31:58investment and a higher benefit period
3:32:00in tax payment.
3:32:03Again, the city is a conduit issuer.
3:32:04This is we are not responsible for this
3:32:06this debt instrument. Even though it's a
3:32:08bond, it sounds like a debt instrument.
3:32:10um the amount of the bond issuance is
3:32:12not the amount of the taxes abated. That
3:32:14that seems to get a lot of coverage in
3:32:16the media that when there's a new
3:32:17application for a tax abatement, it's
3:32:19the total amount of the bond issuance.
3:32:21And that's what's the numbers that's
3:32:23thrown out there in the public. We need
3:32:24to do a better job of communicating.
3:32:25That's not the same thing of what the
3:32:26amount of taxes are that are baited.
3:32:28That number is much much smaller. But
3:32:30that oftentimes just carries uh carries
3:32:33the in in the article.
3:32:35The other thing [clears throat] that I'm
3:32:36really proud of is that your staff does
3:32:37this exemptions are a five plus five.
3:32:40That's not call called out in the state
3:32:42statute. It's a 10-year tax abatement.
3:32:45The state leaves latitude for however
3:32:47you enforce that. How we enforce it is
3:32:49in year five is when your staff will do
3:32:51a review and make sure did that company
3:32:54provide and and commit to what they said
3:32:56they were going to do. Did they actually
3:32:57perform on what they said? And then
3:32:59their encouragement of the next five
3:33:01years after that. That's not required in
3:33:03the state statute. something that we
3:33:04have asked our applicants to adhere to
3:33:06and I think it's a good policy. In fact,
3:33:08it's been called out by other
3:33:10organizations as we have one of the
3:33:12better um clawbacks and economic
3:33:15incentive guidelines. Yes, Councilman.
3:33:17>> Um are there other are there some that
3:33:20are maybe three years and six year look
3:33:22back? Do we have any examples of
3:33:24anything like that or is it kind of the
3:33:26five and five uh best practice
3:33:29throughout? I would say the most common
3:33:30is to look back at the end of the
3:33:32abatement period or it is it is not
3:33:35uncommon for typically when you're
3:33:37seeing tax abatements you're seeing in
3:33:38much smaller cities than Witchah and so
3:33:41where we have dozens of these other
3:33:43cities have one or two and so it's not
3:33:45uncommon for them to do an annual review
3:33:47or an annual ask of where are you at on
3:33:49your job creation where you at on your
3:33:51spending where you at on your capital
3:33:52investment typically because they they
3:33:54know that company in town at the edge of
3:33:56town they have a pretty good
3:33:57relationship with them or they know
3:33:59them. So, there are absolutely cities
3:34:00that do it annually. Um,
3:34:04there's I don't know of any that do it
3:34:05at the three or the the multi I know
3:34:07there's plenty of cities that wait till
3:34:08the end of the 10-year tax abatement and
3:34:10look back then is also common.
3:34:13>> Thank you.
3:34:16>> So, we talked about the kind of the
3:34:17staff review.
3:34:19I wanted to give you just rather than
3:34:20all of the data that's thrown at you. I
3:34:21know it's been a long day. So, a couple
3:34:23just anecdotal testimonials of the
3:34:26effectiveness of this tool. You've got a
3:34:28lot of examples out there, but I wanted
3:34:30I know that this has been an impactful
3:34:32tool and impactful benefit to our
3:34:34economic development uh strategies. And
3:34:36so Alex Aila is the a partner with the
3:34:40capital group that's the think of them
3:34:41as the parent company or the owner of
3:34:43JTM foods which is at 21st and 135. And
3:34:46so, um, they looked all across the
3:34:48country, did a heavy analysis, and what
3:34:50they found was the flexibility and the
3:34:53resourcefulness and the responsiveness
3:34:55of this community and largely city hall.
3:34:58They didn't find that in most of the
3:34:59East Coast and other larger cities in
3:35:01the Midwest that they they worked with.
3:35:03Yes, the tax abatement financially was a
3:35:05benefit to them, but that engagement
3:35:06with with your staff and with your team
3:35:08was was even more even more important.
3:35:11And and again, I asked him to kind of
3:35:12call that out just as a testimonial
3:35:14quote that this tool did have bearing on
3:35:16their being located here. Obviously,
3:35:19more locally in southeast Witchah, the
3:35:21Boeing Corporation has continued to make
3:35:23massive investments in our community.
3:35:25Um, and this is a considerable tool uh
3:35:28to their to their growth and their
3:35:29investment strategy going forward. But
3:35:31obviously they have multiple locations
3:35:32all across the country and the globe.
3:35:34And the fact that we have real property
3:35:36tax abatement and some of these economic
3:35:38incentive tools helps them make those
3:35:40investments to continue to invest and
3:35:42grow their witchaw site.
3:35:46[clears throat] Um we're getting close
3:35:47to the end here. So just a couple more
3:35:48slides on tax abatement. So this just
3:35:50kind of depicts um from IRBs approved
3:35:54over kind of that 10-year period of 08
3:35:56to 18 the estimated assessed value
3:35:58increase. So just the assessment value
3:36:00was $143 million. Of that the new
3:36:04property taxes generated kind of
3:36:05beginning in 2027 is over a million
3:36:07dollars a year in those property tax
3:36:09abayments. As of end of last year, there
3:36:13was about a hundred outstanding IRBs
3:36:17that are that that are that your team is
3:36:19evaluating and continuing to maintain.
3:36:21You add up the total capital investment,
3:36:23the total project cost of all of those,
3:36:25you're looking at $1.8 8 billion that
3:36:28was brought into this community that was
3:36:29leveraged into this community with those
3:36:31100 tax abatements based on the those
3:36:35projects the kind of the going forward
3:36:36and you know they're all going to some
3:36:38of them going to expire a different
3:36:39year. Some of them have one or two years
3:36:40left. Some of them that you just
3:36:41approved this year have 10 years left.
3:36:43But of that that kind of sliding scale,
3:36:46you're looking at $498 million of new
3:36:48assessed value based on those tax
3:36:51abatements or not quite $4 million a
3:36:53year of new property taxes just to the
3:36:55city. That's not school and county.
3:36:57Those several million dollars more of
3:36:59other jurisdictions, but just your
3:37:00portion based on those tax payments that
3:37:03are outstanding.
3:37:03>> Quick question on this, especially with
3:37:05[clears throat] the last point.
3:37:06Obviously each year we're going to have
3:37:08a different amount that comes back on
3:37:10the tax rules. Quick question for Mark
3:37:12and you have stand up. I imagine that's
3:37:15incorporated in our budget perform
3:37:19$3.9 million just over what what year
3:37:23would be differently?
3:37:26How do we track that in our budget
3:37:28documents to project for future
3:37:29earnings? So next year obviously some um
3:37:31IRBs are going to be completed that
3:37:33we're going to put things more back on
3:37:34the tax rules. Yeah, we do a couple
3:37:36things actually. The county when they
3:37:37provide us with our estimated assess
3:37:39valuation in June, they will identify uh
3:37:42expiring abatements and the valuation
3:37:44associated with that. And then we
3:37:46obviously have our own tracking
3:37:48mechanism that we know the IRB is
3:37:50outstanding. We know when they uh when
3:37:52they reach the end of their period. So
3:37:54>> So what's that projected for just the
3:37:552027 budget line item?
3:37:57>> What's that? I'm sorry.
3:37:58>> What's that projected for the 2027
3:38:00budget that's brought back in?
3:38:02>> Uh I couldn't tell you off the top of my
3:38:03head on that.
3:38:05town. That's fine. Thank you.
3:38:07>> Mark, does does the county ever miss one
3:38:10and not get it back on the tax tax roles
3:38:13at the proper time?
3:38:15>> Uh, I think they've had some challenges
3:38:17with some issues that we're working with
3:38:19them on.
3:38:21>> Okay. Do we track it also to remind them
3:38:24to bring it on the tax roles?
3:38:27>> We work very closely with them on
3:38:29resolving issues like that.
3:38:31>> Okay. Thank you. A follow-up question to
3:38:34that. Since you mentioned there's
3:38:35roughly a hundred that are outstanding,
3:38:37where is that located on our the city's
3:38:40website? Because I'm looking at uh the
3:38:42IRBs, but there's not a list of 100
3:38:46projects.
3:38:48>> Uh we actually that number is reported
3:38:50in our uh annual audit in the footnotes
3:38:53of our annual audit. Uh to your point,
3:38:56mayor, I don't know that we do list
3:38:57those. We certainly could. It's a lot of
3:38:59detail, but we certainly could list
3:39:00those if that's desired. I think at the
3:39:02very least uh this website needs to have
3:39:06much more information. Um the 100
3:39:09projects don't need to be listed one
3:39:12line item by line item if it's already
3:39:14in the financials. However, linking it
3:39:17to the financials would be that added
3:39:19step. Um I know I've heard from
3:39:21community members that want to know um
3:39:24what is coming back online um when that
3:39:26abatement is done. So what is a
3:39:30mechanism that would be helpful again
3:39:32for not just the county keeping track
3:39:35and finance in the city keeping track
3:39:37but also community members who are
3:39:39curious what's in their own districts
3:39:41coming back online.
3:39:43>> One thing to add to that mayor I think
3:39:44you're absolutely right and I know that
3:39:46the the city's economic development
3:39:47report gets at some of that as well and
3:39:49so I think that will be included there.
3:39:52Um the state of Kansas has a
3:39:54transparency database and it originally
3:39:57was created to maintain transparency for
3:40:00their state and pro programs but over
3:40:02the last several years they have added
3:40:03the ability of cities to inform and to
3:40:06include so the the citizenry can go to
3:40:09one place and find all economic
3:40:11incentives within the state of Kansas in
3:40:13one spot. And so I believe, don't quote
3:40:16me on this, but I I remember seeing City
3:40:19of Witchah tax abatements in there. Now,
3:40:21it has a number of fields and a number
3:40:23of things that could be filled in. And I
3:40:25don't I don't believe all of the
3:40:26criteria is filled in. What I'm guessing
3:40:28is that they probably pulled a report
3:40:30from the county and then inserted what
3:40:32they could or the data that the county
3:40:34report had is what I'm guessing. But the
3:40:36point is is that the the the portal the
3:40:39website exists for a citizen to go and
3:40:41find as much information. If we can
3:40:43continue to to maintain and input that
3:40:45data, I think that would be a good
3:40:47solution to what you're asking where
3:40:48it's all in one spot.
3:40:51Any other questions?
3:40:54So this kind of depicts kind of the
3:40:57investments over the last few years um
3:41:00uh kind of adding up all economic
3:41:01incentive tools. So more than 1.4 4
3:41:03billion in capital investment has been
3:41:05brought into the community through the
3:41:07combination of these tools. I think it's
3:41:09important to that second bullet point to
3:41:10point out that the vast majority 70% of
3:41:13these are again those employer
3:41:16incentives those tools that you're
3:41:17getting job creation or capital
3:41:18investment commitments out of uh tiffs
3:41:21and CIS and starbonds are very very
3:41:23important but they're a developer to
3:41:24development tool they're trying to
3:41:26accomplish something different within a
3:41:27ge geographic area and they can be
3:41:30considerable obviously our starbond
3:41:31projects are very very large but the
3:41:33vast majority of ours are for job
3:41:35creation and and for capital investment
3:41:39So to kind of wrap this up, the previous
3:41:42discussion we've kind of pulled from a
3:41:43couple different workshops in 2024 and
3:41:462025. You've had multiple conversations.
3:41:49Some of those conversations were around
3:41:51formatting and alignment of the various
3:41:54plans that we have whether they're kind
3:41:56of community development plans or
3:41:58economic development plans. So that's
3:42:00certainly depicted here. The regional
3:42:01growth plan has been has been talked
3:42:02about and added. Now we have Heather
3:42:04Schroers in the back of the room. We
3:42:05have the downtown action plan which has
3:42:07also brought in an element and a
3:42:09perspective on uh the gap of of
3:42:12viability that exists between investing
3:42:15in a very very expensive urban downtown
3:42:18project versus what market rates right
3:42:20now can get and so there's a gap there
3:42:22and so the the downtown action plan has
3:42:24talked about that. incorporating uh all
3:42:26of those alignment of plans has been
3:42:28discussed. Uh additional tools primarily
3:42:31in the area of housing and we're going
3:42:33to talk about a couple of those and and
3:42:35strategic investments in very uh
3:42:37designated areas or finite areas. But I
3:42:40was asked to speak about housing just
3:42:42briefly and I I would offer you that I'm
3:42:44not a housing expert. I've done this a
3:42:46little bit and so I can tap dance here a
3:42:48little bit but I would highly encourage
3:42:49you to to bring in Sally Stang and your
3:42:51housing and community development team
3:42:52to have those conversations as well. Um,
3:42:54but a couple tools that I think we've
3:42:56we've talked a little bit about and
3:42:58looking at especially when it comes to
3:42:59affordable housing or workforce housing.
3:43:01You guys have made great strides by
3:43:03waving building permit fees when it
3:43:05comes to your light applications. That
3:43:06helps immensely that applicant uh
3:43:08receive uh positive support from the
3:43:10state for those credits, but there's
3:43:13some still some more things that could
3:43:14be done uh especially when it comes to
3:43:16incorporating housing. Um the NRA
3:43:19program is the one if you leave today.
3:43:20This is the one tool. There's other
3:43:22ideas that I have, but this is one tool
3:43:24that I think from a housing perspective
3:43:26that we are leaving a tool on the table
3:43:28on the shelf. We've put it in the
3:43:30toolbox and we haven't we've locked it.
3:43:31We haven't utilized this. We used to
3:43:33have the NRA program. The neighborhood
3:43:35revitalization act is a very highly
3:43:36thought of program across the state.
3:43:38Many much smaller communities use it to
3:43:40great success. We used to have it here
3:43:42and it expired. It allows the
3:43:45flexibility of giving a property tax
3:43:47rebate to to an applicant. It can be a
3:43:51it can be an individual. It can be a
3:43:52family that's fixing up their home and
3:43:54they get a rebate of the value of my
3:43:56home is worth $100,000 today. I'm going
3:43:57to fix it up and it's going to be worth
3:43:59150. That $50,000 delta, I can get a
3:44:01rebate on that tax differential. And the
3:44:03beauty of it is it's it does the same
3:44:06thing as a tax abayment, but it's not as
3:44:08complicated or exhaustive as a tax
3:44:09abatement. Right now, with tax, you have
3:44:11to have a lawyer that's familiar in
3:44:13public finance and the financing tools
3:44:15and have that application fee has to be
3:44:17vetted through the cost benefit study.
3:44:19we go through all these steps as we
3:44:20should. Those are the right things to do
3:44:22for those those tools, but the NRA
3:44:24program skips a lot of that. It's more
3:44:26of an administrative tool in most cities
3:44:28in Kansas. And so I highly encourage you
3:44:30to think about that. It's also a really
3:44:32effective tool can be it can be a very
3:44:34fast and efficient turnaround for
3:44:36approval for a small business owner. So
3:44:38if you're looking to engage whether it's
3:44:40small business or residential housing,
3:44:42the NRA program can be highly effective.
3:44:45It's just limited in its scope and
3:44:46geography. have to draw a boundary
3:44:48around where we want it. But some cities
3:44:50in our state have multiple NASAs. We had
3:44:53one giant one in our city and there was
3:44:55some discussion or debate as to whether
3:44:57we should shrink it. I would offer up to
3:44:59you maybe shrink it to where it's most
3:45:01needed, but have multiple NAS if you
3:45:03feel like there's different areas of our
3:45:05community that are in need. That's
3:45:07there's nothing stops you in the statute
3:45:08from having multiple NAS.
3:45:11>> Is that property tax um I guess rebate?
3:45:15>> It's a rebate of real estate taxes.
3:45:16property taxes. Yeah.
3:45:18>> So, does that that has to go for rehab
3:45:22of the units essentially?
3:45:24>> It has Well, it doesn't have to be a
3:45:25rehab as much as it has to change the
3:45:27value to create an increment. So,
3:45:28whatever it is today, it could be a
3:45:30vacant lot and you just build a new
3:45:31house on that vacant lot. That in and of
3:45:33itself creates a new increment of real
3:45:35estate taxes.
3:45:37>> Okay.
3:45:37>> What I really like about it is that it's
3:45:39administratively approved. It's a little
3:45:42bit of a booger to get it approved at
3:45:43the front end because we have to to go
3:45:45through this process. The state statute
3:45:47requires you. You all have to approve
3:45:49it. The county has to approve it. The
3:45:50school district has to approve it. Every
3:45:52jurisdiction that's going to participate
3:45:53in it has to approve it now, which can
3:45:56be a little bit of an effort. But then
3:45:58going forward, not every jurisdiction
3:46:00has to receive every application because
3:46:02the goal is my go my hope would be that
3:46:04we would get several of these a week of
3:46:06a homeowner that's wanting to fix up
3:46:08their home or maybe a small developer
3:46:09that's wanting to do infill development.
3:46:11It would be more than would hit your
3:46:13agenda schedule per se, but it's
3:46:16administratively approved. It can be a
3:46:18very swift and efficient tool and other
3:46:20cities have seen that across the state.
3:46:22>> That's what I was going to ask you if it
3:46:24was a good opportunity for infill. It is
3:46:26that that most cities use it that way.
3:46:28>> Great. Thank you.
3:46:29>> And can you talk to why I I heard that
3:46:32it wasn't used at all. That's why it got
3:46:34dropped. Is that is that true or
3:46:37>> I do think it utilization was was um
3:46:40reduced. It got dropped about the time I
3:46:43got here. So I don't have the it's not
3:46:45fair for me, sir, to give you the full
3:46:46depiction as to why it wasn't utilized.
3:46:49Um I don't think it was communicated
3:46:50very well. the the cities that I've seen
3:46:52that have used it very well have really
3:46:54had to communicate and talk about this
3:46:56program as a benefit when somebody comes
3:46:58in to um get a new building permit. It's
3:47:01being talked about like it's highly
3:47:03communicated at that individual level.
3:47:06Um but I couldn't speak to I I do know
3:47:08there was some tension and disagreement
3:47:09of where it was. Um, it can have you
3:47:12absolutely should engage the school
3:47:13district in this conversation because
3:47:14they're going to be heavily involved
3:47:16because you can imagine as we utilize
3:47:18tools to increase residential that is
3:47:21going to have a much different effect
3:47:22and impact on our school districts than
3:47:25it does on a an industrial part going
3:47:27in. So, a conversation with the schools
3:47:29and I'm not here to say that the schools
3:47:30was the issue, but I do know there was
3:47:32some disconnect
3:47:34on should the program go forward, how
3:47:35should it go, where should it go
3:47:37forward, and then its expiration got to
3:47:39us. And then it's easier to renew it
3:47:41than it is to create a whole new one.
3:47:43And so, we lost the ability to to renew
3:47:45it. And so then I think it's just sat in
3:47:47my opinion, it's just sat dormant since
3:47:48then.
3:47:49>> It sounds like a great onbunk
3:47:50conversation. And then in addition it
3:47:53says for a period determined by the
3:47:54interlocal agreement on average
3:47:57>> I know we haven't had [clears throat]
3:47:58this 10 years
3:47:59>> average 10 years I think it can go
3:48:03longer than that it's not on this slide
3:48:06um I want to say it can go 25 years if I
3:48:08remember right but don't quote me on
3:48:09that. Okay. Thank you.
3:48:12>> So, high highly encouraged, we would
3:48:14love to help you reevaluate this or your
3:48:16housing team to evaluate this to a
3:48:18little bit.
3:48:18>> Can you maybe walk through a real life
3:48:20example? We had a speaker right here
3:48:22talk about second and piatt um a vacant
3:48:25lot that is not been active for 30
3:48:29years. Would that be beneficial for
3:48:32that? And how would that tool work? It
3:48:33could theoretically if that if that
3:48:35location that intersection was located
3:48:37in the NRA where the way I've seen it
3:48:39used before doesn't mean that it would
3:48:40have to be used this way here but and I
3:48:42think there are different uh sizes and
3:48:45shapes around the state of how the tool
3:48:47is utilized but an applicant would come
3:48:49forward and say um whether it's probably
3:48:52before construction or certainly before
3:48:54the project is completed and say hey I'm
3:48:56going to be putting a home on this lot
3:48:59and the participants of the program the
3:49:01city the county the school district,
3:49:03every jurisdiction has agreed to it. And
3:49:06so upon completion of that new valuation
3:49:09increase of that home being completed or
3:49:11a small apartment building or whatever,
3:49:13they get a rebate of those portions of
3:49:15every entity that's contributing to
3:49:17that. They get a rebate. Different
3:49:19cities do it different ways. If it's
3:49:21annually or semianually or the payment
3:49:23schedule, I'm I'm less concrete on my
3:49:26answer of the the frequency of the the
3:49:28rebate, but I know it's a rebate after
3:49:30the fact.
3:49:32I always thought very good fan of this.
3:49:34I asked about it right when I got on
3:49:36council.
3:49:36>> Yeah.
3:49:37>> Um asked why it wasn't and I think that
3:49:40the focus of it was to improve your
3:49:42house going from 150,000 to 200,000 or
3:49:46100,000 to 150,000. Um would it apply
3:49:49also to these uh uh developers that are
3:49:52putting in these threetory
3:49:55apartment buildings like like in
3:49:57district uh four there? um these would
3:50:01it would apply to them too going from a
3:50:02vacant lot to these they they would love
3:50:05that I know
3:50:06>> I believe it would
3:50:07>> it would
3:50:08>> yes I'm trying to think of ones in my
3:50:09past where we've used it that way and I
3:50:11can't think of one but I don't remember
3:50:13anything in the statute that says you
3:50:14couldn't be used that way so that's
3:50:16something to dig in a little bit when
3:50:17we're happy to help dig into that a
3:50:19little bit deeper but I believe it would
3:50:20>> that would s that would certainly insp
3:50:27one one thing to chew on and to think a
3:50:28little bit about uh RHID, reinvestment
3:50:30and housing incentive district. This is
3:50:32a relatively new tool. Just in the last
3:50:34few years, I think we've talked a little
3:50:35bit about it before. Previously, it was
3:50:37called the rural housing incentive
3:50:38district. In our jurisdiction, the city
3:50:40of Witchaw was not even eligible. Since
3:50:42then, they've updated the state statute.
3:50:43Now, we are eligible for it. Cities over
3:50:4560,000 in population have more
3:50:47restrictions. So, you have more
3:50:48utilization. So, I wouldn't say that
3:50:50this is a a silver bullet by any
3:50:52definition, but it does allow for
3:50:53subdivision infrastructure and upper
3:50:55story. Uh those would be the two areas
3:50:57that I think Witchah could benefit from
3:50:59this. Think of this as a tiff district.
3:51:01It's a tiff district for housing. That's
3:51:04what this is. It uses the same concept.
3:51:06It captures the incremental growth and
3:51:08the valuation of property taxes to kind
3:51:10of reimburse or pay off improvements. So
3:51:13it's the same concept just structured a
3:51:15little bit differently.
3:51:18So those are the two housing programs we
3:51:20can talk about. Certainly talk about
3:51:21other ideas uh as well. some other
3:51:23considerations that that have been
3:51:25discussed or concepts that were brought
3:51:27up. Um, under statute, the city does
3:51:30notice whether it's IRBs or TIFF and and
3:51:32and TIF districts are a little bit
3:51:34different, but we do notice other
3:51:36jurisdictions, be it the county and the
3:51:37school district. We're required to
3:51:39notice them under the TIFF statute.
3:51:41You're familiar that they accidentally
3:51:42required to be noticed, but they have a
3:51:4430-day um period where they can approve
3:51:46or reject the the the TIFF approval. So,
3:51:49a little bit more stringent criteria
3:51:52there with with TIFF. There was also a
3:51:53suggestion about kind of step down or
3:51:55scale to tax abatements. Could we look
3:51:57at a over a 10-year period of tax
3:51:58abatement, could that percentage of tax
3:51:59abatement be scaled down? I want you to
3:52:02know that that has been offered in the
3:52:04past. We have had applicants say, "Hey,
3:52:06I don't want to go from year 10% of tax
3:52:10forgiveness to then year 11, 100% that I
3:52:13owe. Could I stairst step it?" And we've
3:52:15absolutely offered that. I don't believe
3:52:17anybody once we got into the actual IRB
3:52:19financing and the bonding that those
3:52:20applicants actually move forward with
3:52:22their project. So I don't believe we've
3:52:23actually that would be something a
3:52:24question for your staff if we actually
3:52:25have had one utilize it. But the but the
3:52:28tool exists today that you can kind of
3:52:30stairst step that down.
3:52:32>> They'd be giving up a lot of
3:52:35tax abatements if they did that.
3:52:36>> Yeah. Well and typically what the way we
3:52:38did it when we offered it was it was
3:52:40based on their eligibility score. So
3:52:41it's not somebody that was eligible for
3:52:42100% tax abatement because there'd be no
3:52:44stair if it was 100%. This was somebody
3:52:46that was eligible for 80% tax abatement
3:52:48and then you you phased it to equalize
3:52:5080% over the 10 years.
3:52:53>> Does that make sense?
3:52:54>> Yeah.
3:52:55>> It just doesn't happen. You're right.
3:52:56The
3:52:57>> have the money up front though. I know
3:52:59>> a lot of them do. Yeah. But I guess my
3:53:00point is this was suggested as an
3:53:02option. It's the option exists.
3:53:05>> Um some other things that we heard. Are
3:53:07there objective strategic goals aligned
3:53:08with the current council parties? We
3:53:10think we'd love to hear from you all
3:53:11about that. Is that what you're hearing
3:53:13and what we're seeing that are already
3:53:14reflected in the guidelines? Should we
3:53:16change the eligibility or guidelines to
3:53:18incentivize investment in different
3:53:19areas in designated areas, more targeted
3:53:21areas? Um, what level of risk? We I
3:53:25think you are protecting the taxpayers
3:53:27and the citizens well, but that doesn't
3:53:28mean that that couldn't be enhanced and
3:53:30improved. Um, should the city adjust the
3:53:33amount of abatement the project receives
3:53:34kind of whether that's step down or just
3:53:36across the board? That's been uh
3:53:38discussed. So, those are some
3:53:39considerations. Last thing I'll say is
3:53:41in terms of next steps, we want to be
3:53:44engaged with you on this at the
3:53:45partnership and I know that the staff
3:53:46does as well. Um, we will help in
3:53:49whatever way you see fit. If that's
3:53:50engaging or bringing on a third party
3:53:53consultant like we've done in the past,
3:53:54we're willing to engage and see is there
3:53:56an aspect of a program or an area that
3:53:58you want a little more uh perspective on
3:54:01or national lens on. We're more than
3:54:03happy to do that. Engage. We want to
3:54:05remain competitive as I know you do. We
3:54:07want to have these tools uh to help our
3:54:09community grow. economically. So, how we
3:54:11can help you, whether that's at the
3:54:13partnership, we have a a committee uh
3:54:15that the mayor sits on called the SAT
3:54:17committee, the strategic advisory team.
3:54:18We've used that group as a sounding
3:54:20board group. Harvey happens to sit on
3:54:22that as well. Um we've used that group
3:54:23to kind of chew into these issues to
3:54:25give you a private sector group sounding
3:54:27board group. So, we're happy to to
3:54:28employ that if if if you feel that's
3:54:30that's helpful for the the conversation.
3:54:32So, manager, I was trying to go fast in
3:54:35the interest of time, but I am happy to
3:54:37answer questions or kick around more
3:54:39discussion at your your discretion.
3:54:42>> I would just say I appreciate Sorry, I'm
3:54:44just going to jump in. Um, I appreciate
3:54:46all of this information. It's a lot. Um,
3:54:49>> yeah.
3:54:50>> But I appreciate the conversation
3:54:51because we do hear often,
3:54:55good or bad, about the incentives or
3:54:59tools in the toolbox, how whatever we
3:55:01want to call them today. Um, and it's
3:55:03unfortunate that
3:55:06there has been some deals that have been
3:55:09less than great in the past. And so it
3:55:12kind I feel like it kind of gives
3:55:14everything a black eye moving forward.
3:55:18And so, you know, there's been some bad
3:55:20contracts and all of that stuff, but
3:55:24I would just be interested in in look
3:55:26digging a little bit more into this as
3:55:29far as what some of the other like
3:55:31Oklahoma City and I know those
3:55:32conversations are happening, what some
3:55:34of these other cities are doing because
3:55:36I feel like in in some respects, Witchah
3:55:39is just getting left behind because some
3:55:42of these other um Kansas City, Tulsa,
3:55:45Oklahoma City, you know, have figured
3:55:47out a A um but it also takes community
3:55:50support. So
3:55:52>> that's well said, council member. I I
3:55:53think that's true. And I would here to
3:55:55tell you networking and connecting with
3:55:57my economic development colleagues
3:55:59around the country, they have those same
3:56:00instances of bad actors and bad
3:56:03instances and where the projects didn't
3:56:04completely meet the criteria.
3:56:06Absolutely. I mean, we're not alone
3:56:08>> in that for sure.
3:56:09>> It just when we're trying to do good
3:56:11things now and we have, you know,
3:56:13businesses that are wanting to come here
3:56:14and do business
3:56:17the media doesn't always help us out
3:56:19when the focus has been on, you know,
3:56:21things that happened 10 and 20 years ago
3:56:23that are just kind of coming to the end.
3:56:26Thankfully, um but yeah, I just I really
3:56:30appreciate all of all of this and um
3:56:33would be curious what some of my other
3:56:34colleagues have to say.
3:56:36>> I would agree with you. I I think hiring
3:56:38a consultant and seeing what these other
3:56:39cities do would be very good. Um I I
3:56:43think we can benchmark it and give us
3:56:46some backing too. Sure.
3:56:47>> Of a reasoning. Yeah.
3:56:48>> And I'd also be interested in a step
3:56:50down for tax abatements for industry.
3:56:54You know, like Councilman Glascock
3:56:55mentioned while quite a while ago, 100%
3:56:5890% 80% 70%. You know, that and then I'd
3:57:02also be interested in the the
3:57:04Neighborhood Revitalization Act. I know
3:57:06it's a lot of work getting it up because
3:57:08you have to get everybody to agree, but
3:57:10I'd be very interested in something like
3:57:11that, too.
3:57:12>> Yeah,
3:57:14>> we can certainly look into that. So, I
3:57:15would remind you, and I think you've
3:57:17already caught it, that when you have
3:57:18the step down, if you're doing that cart
3:57:20blanch across the board, what you're
3:57:22effectively saying is we're only going
3:57:24to have a maximum amount of incentives
3:57:26of something less than whatever. And so
3:57:28there are going to be places where it it
3:57:30does not it is not uncommon at all for
3:57:32us to receive a request especially we
3:57:34get further into a project where the
3:57:36expectation is 100% taxment or 95% tax
3:57:40abayment is that's the only tool we have
3:57:42that we're at a competitive
3:57:44disadvantage.
3:57:44>> Yeah I wouldn't say it's the only tool
3:57:46we have but maybe in certain instances
3:57:48it is the tool that would be available
3:57:51but for a company like Boeing they're
3:57:53not going to be interested in that. They
3:57:55they want 100% tax abatement because the
3:57:56number of jobs they bring. So that
3:57:58should still be available to them. But
3:58:00in other instances, I can see where a
3:58:02step down would be a good thing.
3:58:04>> Understand?
3:58:06>> I just have a couple quick thoughts.
3:58:07Echo everything Councilman Johnson said.
3:58:10A couple years ago, I think it was my
3:58:11first year here. You provided me a list
3:58:13of all the incentives that other
3:58:15municipalities use. I think that was
3:58:16very helpful. It was through GWP. So
3:58:18that might be a tool that's already
3:58:19available. Um, I don't know the last
3:58:21time that that has been updated, uh,
3:58:23because I think it was an older document
3:58:25when I had received it, but that was
3:58:26really helpful.
3:58:27>> Yeah, it was in the LIO study and we
3:58:28were trying to save more of the data,
3:58:30but I'm happy to get you that.
3:58:31>> It was really thick. I just remember it
3:58:33was very boring reading, but it was
3:58:34really good. Um, two other things, uh,
3:58:36NRA program, very interested in that.
3:58:38RHID as well. Those are tools that we
3:58:40really haven't used since I've been on
3:58:41the council. We talk a lot about
3:58:43housing. I think those are going to be
3:58:44able to open up a lot of opportunities.
3:58:46Um really the other two things actually
3:58:48one of the public speakers this morning
3:58:51um one of the action items they said
3:58:53currently accessing these tools can
3:58:55require outside consultants and legal
3:58:56counsel and it talks about faster
3:58:58approvals for different projects and on
3:59:00page 13 you don't have to go to it or
3:59:02slide 13 it talked about how can we use
3:59:05these tools for small businesses a
3:59:06little bit more um often a larger
3:59:09company knows how to be able to navigate
3:59:10this they have specialized teams for
3:59:12this but we've had this conversation I
3:59:14think when Troy was here as Well, but
3:59:17about how are we talking to businesses
3:59:19when they come in with lenders and uh
3:59:21how are we equipping our banking
3:59:23community to be able to let people know
3:59:24a lot of these tools for small
3:59:26businesses, whether it's an unbudsman
3:59:28that can work people and navigate them
3:59:30through the process. I think that could
3:59:31be a useful tool. So, just thinking of
3:59:33that. Um last two things, I know we
3:59:36talked briefly about the county and just
3:59:37making sure that these things get back
3:59:39on rolls when they're supposed to. I
3:59:41think that's probably rare that they
3:59:43don't, but that's also lost revenue that
3:59:46could be able to add. And then the final
3:59:47thing is timelines. Sometimes we approve
3:59:50a project, an incentive for a project,
3:59:52and then, you know, we get a notice,
3:59:54well, they start the construction four
3:59:56years afterward. And so, if we give an
3:59:59incentive, if we go through a hearing, I
4:00:01want to see a timeline of, hey,
4:00:03construction has to start by this date
4:00:05because we have the community
4:00:06conversation and then the community asks
4:00:08questions. Well, hey, we haven't seen
4:00:09something happen in six years. So, I I
4:00:12want to tie some incentives to timelines
4:00:15to make sure we get these projects
4:00:16moving a little bit quicker.
4:00:18>> Understood.
4:00:19>> And to piggy back off that, um that is
4:00:22something I'd like to look at maybe,
4:00:24like I said, three or six years with the
4:00:25IRBs just to make sure that the
4:00:28project's moving along and they are
4:00:29hitting their benchmarks and then also
4:00:31sticking to their benchmarks. I know
4:00:33I've seen a number that have come before
4:00:35us. Some of it's understandable because
4:00:37of COVID fallout.
4:00:39>> Sure.
4:00:39>> Um but it seems like there's a been a
4:00:41few times where it's come before us and
4:00:43oh, they didn't meet their benchmark,
4:00:44but here's this other area that we can
4:00:47wave the the jobs benchmark because of
4:00:50this or that. So I maybe a little more
4:00:52clarity on that. Um I would like to see
4:00:56us look at a lot more about community
4:00:58benefits agreements with this. Um, for
4:01:01example, one of the things that I really
4:01:03care about is a safe route to school.
4:01:06So, if there can be a set aside, a
4:01:08portion of this will go towards um the
4:01:11funding that the city has to work on uh
4:01:15routes to school, school zones and
4:01:16whatnot. Uh, that would be something I
4:01:18would be really interested in as well.
4:01:21Um, the stair step I agree with as well.
4:01:25Um, I would like to see us maybe um work
4:01:28on some language that would encourage
4:01:30and maybe this is the um the NRA aspect
4:01:33of it, but hotel motel incentives for
4:01:37trans um for
4:01:39um rehabbing them for affordable housing
4:01:42or some sort of housing. I know I have a
4:01:45number of um hotels and motel in my
4:01:48district along Broadway um other parts
4:01:50of the city as well, North Broadway,
4:01:52West Kellogg. Um where something like
4:01:54that could help address the housing
4:01:56crisis. Um that's something I do think
4:01:59we definitely need to focus on. I
4:02:01understand the numbers earlier that we
4:02:04focused more on uh jobs and commerce and
4:02:07um some of that, but right now we're
4:02:09just in such a pinch as far as housing
4:02:11goes that
4:02:12>> um redesigning some of these so that way
4:02:15we can get more housing done. Um I think
4:02:18that is something that is uh I would be
4:02:20very um interested in as well. Um, I
4:02:24know I hear from some of our colleagues
4:02:26on the um the school board and the
4:02:30county and you might correct me, Mark,
4:02:33if the county can only turn down IRBs if
4:02:37it's an unincorporated.
4:02:39So, aside from that, they really have no
4:02:40means as far as protesting. Um, I don't
4:02:44know if it's necessary, but maybe some
4:02:48some way that they can come in and have
4:02:50some sort of say on a lot of these tax
4:02:52abatements that affect them as well. It
4:02:55might just be like, oh, a super majority
4:02:56is needed if they protest, but something
4:02:58like that.
4:03:00>> Um,
4:03:02I I think we could do a better job kind
4:03:04of defining IRBs and what we
4:03:08do. We want them to include industrial,
4:03:10affordable housing. I do like affordable
4:03:12housing requirements, but I am open to
4:03:14the conversations
4:03:16of um workforce housing and trying to
4:03:19get more workforce housing done as well.
4:03:21I think we need to stay away from maybe
4:03:23the luxury apartments and whatnot and
4:03:26just focus on workforce housing and
4:03:28affordable housing. And it doesn't have
4:03:30to be just affordable, but maybe there's
4:03:32an extra 5% in there or something like
4:03:34that if you
4:03:35>> and that would be absolutely how I would
4:03:36encourage you [snorts] to look at it
4:03:37from an inducement standpoint and try to
4:03:39the extent there's there's absolutely
4:03:42appropriate and good um reasons why you
4:03:45all as our elected officials need to
4:03:46restrict and to to rein in certain types
4:03:49of behaviors and habit and and
4:03:52activities. to the extent possible that
4:03:55you can refrain from restricting and and
4:03:58encouraging or inducing more. So again,
4:04:00the the simpler analogy is more carrot
4:04:02less stick,
4:04:03>> right?
4:04:04>> That would be the strong advocation I
4:04:06would give you.
4:04:06>> Yeah. And then maybe another little
4:04:09section [snorts] for infills. So that
4:04:10way again we don't have to build a lot
4:04:13of these, you know, the infrastructure
4:04:15on the the peripheries of the city. Um,
4:04:20I know we might have to have a
4:04:21conversation about the facade program
4:04:23with the C. I do think it was good that
4:04:26we moved it over to the CD to take away
4:04:28from uh risk of the taxpayers, but maybe
4:04:32we just need to have that discussion on
4:04:34to how do we define that a little
4:04:36better. Um, and then I guess two
4:04:39questions. One for the city manager. Um,
4:04:41do we have a timeline on when our
4:04:43economic um the new positions that we
4:04:46have in our economic development
4:04:48department come come on board?
4:04:53>> Thank you for asking. We should have the
4:04:55new economic development director on
4:04:57board hopefully by the end of October.
4:05:00>> Okay.
4:05:00>> And then we'll have one more position
4:05:02after that that they'll get a fill.
4:05:04>> Okay. Um, the second one is I know we've
4:05:06had some issues with the IRBs on the
4:05:09county side going through the um I don't
4:05:12remember if it's a treasurer's office,
4:05:15somebody over there. Have we had that
4:05:17communication with the county and do we
4:05:19feel comfortable? Is that resolved? Are
4:05:22they undergoing the proper
4:05:25um fixes on that? I know Commissioner
4:05:27Batty's been working on that as well.
4:05:33>> [snorts]
4:05:37>> Council member, we continue to work with
4:05:38them. They've been very cooperative with
4:05:41us and I think that we'll reach a good
4:05:44conclusion from that.
4:05:46>> You think it'll be relatively soon that
4:05:48we figure that one out?
4:05:50>> I don't want to commit to timeline
4:05:52because it involves our friends at the
4:05:54county, but they they're they're they
4:05:56understand the issues and they've been
4:05:57very cooperative with us.
4:05:58>> Okay. Thank you.
4:06:01Just a few thoughts for me. Um, first,
4:06:03thank you Mark and thank you Andrew.
4:06:04Thank you Andrew for joining us here
4:06:06today. I also see Jeff from the Greater
4:06:07Witchah Partnership and Heather. Thank
4:06:09you. Appreciate your time today. Um, I
4:06:11also wanted to applaud um, city manager
4:06:14Marshall for having an economic
4:06:16development department. I think this
4:06:18shows our commitment to our invest to
4:06:21investing in ourselves and growing our
4:06:23economy. It's one of our four pillars of
4:06:25our mission. It's also the only way that
4:06:27we are going to increase our re one of
4:06:29the only ways we can increase our
4:06:31revenue so that the CA city can provide
4:06:34effective and efficient services. So I
4:06:36really applaud you for being forward
4:06:38thinking and making this come to
4:06:39fruition. Um, I did want to just mention
4:06:43one of and it kind of got brought up
4:06:44during one of the first speakers on on
4:06:46public agenda, but one of the things
4:06:49that we did in the past that was wildly
4:06:52successful, I think, was we developed a
4:06:54landlord tenant task force. We had
4:06:57issues with landlords um, and that we
4:07:00were going to maybe take some steps and
4:07:02the community said, "Wait, wait, wait.
4:07:04That's not the way we want to go." And
4:07:06so we brought together tenants and
4:07:08landlords. And I learned really quickly,
4:07:10no one hates a bad landlord more than a
4:07:13good landlord. Um, and so I think in
4:07:16this case, no one hates a bad developer
4:07:19more than a good developer. And so I
4:07:22talked to city manager yesterday. I
4:07:24talked to Andrew about the concept of
4:07:26could we put together some sort of task
4:07:28force with entities that have utilized
4:07:31our economic development tools. We heard
4:07:33from one of the speakers today. They
4:07:35said our process is cumbersome, that
4:07:37it's not always consistent, they don't
4:07:39have a go-to person. I don't think any
4:07:42of us on this bench have ever utilized
4:07:44our economic development tools. I don't
4:07:46think in anyone on our staff have ever
4:07:48utilized our economic development tools.
4:07:51So having a task force from entities in
4:07:53the community who have utilized them
4:07:56would give us a better reference of what
4:07:58we can do to make our process more
4:08:00effective and efficient and more
4:08:02streamlined and more user friendly. um
4:08:04and also more fair and consistent. So, I
4:08:07would I would highly recommend that we
4:08:09put together that task force. It might
4:08:10be a great first project for our new
4:08:12economic development director. Um the
4:08:15other thing that I just wanted to
4:08:16mention really quickly is that one of
4:08:18the things that I've learned in the
4:08:19years that I've had the privilege of
4:08:21serving in this role is that when it
4:08:24comes to economic development, people
4:08:25get really upset. Um people have lots of
4:08:28concerns. They make lots of assumptions,
4:08:30but it's because we're not communicating
4:08:32it well. Um, and it's not our
4:08:34communications team's fault. It's that
4:08:36it's really complicated. I'll admit
4:08:38before I was in council, I couldn't have
4:08:40told you what a TIFF, a C, an IRB, a
4:08:42starbond was. And we talk to the
4:08:45community like we expect them to
4:08:46understand it. So, I think that we can
4:08:49do a better job. And it's more than just
4:08:51putting it on the website. I don't know
4:08:52anyone who's cruising the city of
4:08:53Witchah website on a Saturday night,
4:08:55right? It's we need to get the
4:08:57information out there in a way so that
4:08:59it builds the trust in our community
4:09:02because we do have a good process. We're
4:09:04conscientious about followup. We look at
4:09:07return on investment. We do all the
4:09:10things but people don't think we do. And
4:09:12I think that's on us. So that's one
4:09:14thing I'd like to see. And then also
4:09:16woven into that is sharing our
4:09:18successes. Um Mark Andrew briefly um
4:09:22highlighted it, but I'll do a little woo
4:09:23woo again. For example, the C at
4:09:26Greenwich Green, which in 96 um could
4:09:29have been paid off in 22 years and it
4:09:31was paid off in seven. And that whole
4:09:33corridor now is booming with economic
4:09:36development and the new Starbond project
4:09:38that'll be coming. And so, you know,
4:09:40that's something that we can highlight
4:09:41of this is a chance when it we can say
4:09:44this is how it worked and it worked well
4:09:46and how it's supposed to work. And then
4:09:48finally, I'll be interested in having
4:09:50conversations some of my colleagues
4:09:52discussed, but I'm going to be really
4:09:55hesitant for anything that makes it
4:09:56harder for housing. I know we need more
4:09:59workforce housing. Everybody agrees with
4:10:01that. But we need all types of housing.
4:10:04We need all types of housing, even
4:10:06higherend housing so that people can
4:10:08move up so that then people can move in.
4:10:11And so if it's going to be something
4:10:13that makes it restrictive for any type
4:10:15of housing, that's something that I
4:10:17would like to have a further debate
4:10:18with. Um, thanks again. I amen to a lot
4:10:23of what you said, Council Member Tuttle.
4:10:25I I agree with you. Um, I also had
4:10:27written down that um, we have projects
4:10:31that have worked extremely well and we
4:10:35have shifted our council meetings to
4:10:37highlighting amazing community members.
4:10:39And I and I think I would like to engage
4:10:41our colleagues on how we can at least
4:10:42once a quarter highlight a project that
4:10:45has worked really well. Um because I
4:10:48think that people need to see a physical
4:10:50manifestation of where their dollars
4:10:52have gone or where the city has invested
4:10:54and how it benefits their life. Um there
4:10:57are several that have happened in
4:10:58district 1 related to workforce housing
4:11:00that have been great. And so, um, you
4:11:03know, one of the things I really love,
4:11:04you walk into Greater Witchaw
4:11:05Partnership and on the wall they have
4:11:07all those projects that have been
4:11:08successful. I mean, something as simple
4:11:11as somebody being able to see, um, the
4:11:13power of of these economic incentive
4:11:16tools, it makes a world of a difference.
4:11:18Um, I also have had the opportunity,
4:11:20thanks to Andrew, prior to my time being
4:11:22on council, to be a part of site
4:11:24selections where um, b businesses are
4:11:27coming to our city and they are asking
4:11:30lots of questions. And I would love to
4:11:32utilize the data that Andrew has shared
4:11:34of what we are hearing around um the
4:11:37conversation across the nation, not just
4:11:39in Kansas, of why are other people
4:11:41choosing other places other than Witchah
4:11:44and then incorporating some of those
4:11:45thoughts um into our economic
4:11:47development incentive packages. But for
4:11:49folks who have not had the opportunity
4:11:51to be a part of site selections, that
4:11:53that is a huge part. Um those tools are
4:11:56literally tools to bring in those jobs,
4:11:58to bring in those opportunities. and we
4:12:00know that the people in our community
4:12:01deserve good paying jobs and it boosts
4:12:04our economy. Um, I'm not opposed to
4:12:07hiring a consultant. I would just say
4:12:08that if we're going to hire a
4:12:10consultant, I would like to see us
4:12:12attach like a timeline and expectation
4:12:14of how long we are going to sit with
4:12:16this framework. Um, I I love
4:12:19>> I love that we are are revisiting this
4:12:22conversation, but it's kind of
4:12:26I'm questioning why we're revisiting the
4:12:28conversation when we just had this
4:12:29conversation not too long ago in my
4:12:30mind. And it feels that um maybe it's in
4:12:33response to what we're hearing from
4:12:34community, which as a public servant
4:12:36always want to be responsive to
4:12:38community, but also want to make sure
4:12:39that those decisions are rooted in fact
4:12:41and not just the narrative. And
4:12:43sometimes I fear that when we talk about
4:12:45eco or development, there's a narrative
4:12:47or perception that sweetheart deals are
4:12:50happening or backdoor deals. And I can
4:12:53tell you I don't see how anybody could
4:12:55make that happen, but it it certainly
4:12:58happened as mentioned in terms of bad
4:12:59deals, but I think that that has been
4:13:01decades ago. And I think we really need
4:13:03to move forward. Um I believe that our
4:13:06business community, our board of
4:13:07education community, and the county
4:13:09should certainly be a part of that
4:13:10conversation. And finally, I would say
4:13:13also the folks who don't utilize our
4:13:15tools because the process is so
4:13:17difficult. You know, if we are enamored
4:13:20by the conversations that are happening
4:13:21before us from from businesses that are
4:13:24coming and saying, "Listen, this is very
4:13:26difficult." Imagine being a minority or
4:13:28small business owner that has even less
4:13:30resources and needs to take advantage of
4:13:32this. um northeast Witchah could have it
4:13:36could be a prime opportunity for um
4:13:39development um and yet a lot of people
4:13:42who have the interest or even want to
4:13:44start some of that get get that capital
4:13:46going don't know how to navigate these
4:13:48processes and I want to thank Corey and
4:13:50Leah God bless them I've been sending
4:13:52emails over to them from nonprofits to
4:13:55small businesses who want to learn more
4:13:57about our economic development tools but
4:13:59it's also taught me that this process is
4:14:01very difficult um even for the ones most
4:14:03educated and we do need somebody who is
4:14:05going to consistently walk with people
4:14:07through the process so that everybody
4:14:10feels that these tools are available to
4:14:12them not just a subset to include our
4:14:14nonprofit community. Storytime Village
4:14:17um ICTSOS is engaging with the city as
4:14:19well and several other nonprofits. So
4:14:22it's not just business that we want uh
4:14:24to take advantage of these tools. Um, I
4:14:27talked to the city manager about this,
4:14:28but very similar to how we have
4:14:30opportunity zones at the state level, I
4:14:32would love to see how we can um, I do
4:14:35think we should give a 100% tax
4:14:36abatement if developers are coming in
4:14:38and developing in areas that are highly
4:14:41disinvested in and need that love. And I
4:14:44think that if we are serious about
4:14:46making sure every corner of our city has
4:14:49affordable housing, has um economic
4:14:52development in terms of business, we do
4:14:54know that in some areas of our city,
4:14:56we're going to have to in incentivize
4:14:58that very differently. I know that for
4:15:00parts of my community, I would be 100%
4:15:03in and saying 100% tax abatement uh for
4:15:07this part of our community. and um
4:15:10really want to just connect these tools
4:15:13back to major plans that we approve. Uh
4:15:17we just approved the downtown Witchaw
4:15:18action plan. Um one of the things that I
4:15:21have heard from community is they are so
4:15:23excited about that action plan, but they
4:15:26are so worried about is it really going
4:15:28to happen? And I think one of the ways
4:15:30that we can encourage the execution of
4:15:33these things that are in the plan is by
4:15:34lending the help that we have available.
4:15:36And I see these economic tools um as a
4:15:39way to do that. So how do we ensure that
4:15:41we are connecting these tools to some of
4:15:43these major plans that we know we need
4:15:45to become a city where people want to
4:15:47live, learn, work, and play, but also
4:15:49serve as a tourist attraction so we can
4:15:51get some of those dollars from folks who
4:15:52don't live in Witchah. So those are my
4:15:54thoughts.
4:15:56And I'll close out with how council
4:15:58member Ballard began and that is in the
4:16:01past this city has done some things that
4:16:04were sweetheart deals and that has not
4:16:07happened since 2026.
4:16:09And so we as a city and as a council
4:16:11need to acknowledge that. And so that is
4:16:14part of the reason why conversations
4:16:17from 20 years ago are now being
4:16:18resurfaced in 2026 when this council was
4:16:22not around during that time or a city
4:16:24manager or many of the staff members
4:16:27during that time.
4:16:28>> We're economic developer.
4:16:30>> And so I appreciate council member
4:16:32Ballard for bringing that up because
4:16:34that distrust has caused a lot of damage
4:16:38to the city. Um but also to repair that
4:16:42trust is to expose what has happened in
4:16:44the past and fully have a documentation
4:16:48of it without again um with delineation
4:16:53of what has been learned and what is
4:16:56different since 20 years ago. And I
4:16:59think that that is appropriate and that
4:17:01is part of communication. it is
4:17:03important to have a recollection of
4:17:06history and that we won't repeat history
4:17:09and that now in 2026 we want to refine
4:17:12these tools. And so my recommendation to
4:17:16the city manager is that
4:17:19the internal auditor be able to show
4:17:22some of what has been deemed in the
4:17:25community as sweetheart deals and have
4:17:28that recollection of the past of what no
4:17:30longer happens. Um I think uh Andrew has
4:17:34highlighted it multiple times. There's
4:17:36no blank check that is given from the
4:17:38city of Witchah to a developer. Did it
4:17:41happen in the past? Yes. And so what has
4:17:45happened in the past needs to be
4:17:47recollected and captured so that you can
4:17:50say these were the mistakes of the past
4:17:53that are not being repeated in 2026.
4:17:56>> Mayor, so sorry mayor, go ahead. And so
4:17:59I really think that that is one area
4:18:01that I would like to see the website um
4:18:04have a recollection of that portion
4:18:08within economic development. Um so that
4:18:10is a question I would like to ask the
4:18:12city manager if that is possible number
4:18:14one for the internal auditor to have
4:18:18that um data and then be able to provide
4:18:22it to the council and then eventually be
4:18:24able to provide it on a public website
4:18:26which is witchaw.gov.
4:18:28Mayor, if I
4:18:30>> No, no, no. Go ahead.
4:18:33>> I'm sorry. I don't know if I understand
4:18:34what you're asking.
4:18:37>> Do you you want deals that
4:18:41are determined to be bad to be
4:18:43highlighted?
4:18:44>> Yes.
4:18:46>> And I and I think that the challenge
4:18:48with that is going to be the criteria
4:18:52for what you think is a bad deal versus
4:18:54someone else thinks is a bad deal. And
4:18:56then also if there was a deal and maybe
4:19:00it didn't go exactly as planned, but
4:19:03portions of it still did or maybe things
4:19:06came to fruition that weren't intended.
4:19:08So, you know,
4:19:11everyone views things through a
4:19:13different lens. So, I'm not sure who's
4:19:15going to determine what the criteria is
4:19:17for a bad deal. Um, and then instead of
4:19:21highlighting what's a bad deal, could we
4:19:23maybe highlight what are the good things
4:19:24that have happened? like I mentioned the
4:19:26CD that paid off in seven years instead
4:19:28of 22 or you know because of and I'm
4:19:31just using that one. I'm sorry not
4:19:32trying to be you know promoting district
4:19:34two. I'm sure there's lots of other
4:19:37examples but I just get a little
4:19:39worrisome that
4:19:42how do you determine what a bad deal is?
4:19:45and and that's something that we can
4:19:47certainly even with the if we do develop
4:19:49the task force, you know, they can give
4:19:50us some criteria and some feedback, but
4:19:53I I just want to make sure that it's
4:19:55fair. We're not throwing stones at past
4:19:57councils. I say all the time, future
4:19:59councils are going to question what
4:20:01we're doing in 2026. They're going to
4:20:03say, "Why in the world did they do
4:20:04that?" Because the world will change,
4:20:06the economy will change, people's
4:20:08attitudes will change, everything will
4:20:10change. So, yeah. Thank you,
4:20:14>> Council Member Tuttle. Thank you so
4:20:15much. And and mayor, I want to I want to
4:20:17back up and thanks for clarifying. I I
4:20:19agree. There have been some deals that
4:20:21have been problematic and troublesome in
4:20:25the past. And so, I don't want to
4:20:27disregard that that that has not
4:20:29happened. And I guess my my clarity was
4:20:31um I think sometimes we fixate so much
4:20:34on the past that it's very hard to move
4:20:36forward even when uh the gaps are so
4:20:39visible and we and we have to do
4:20:41something to address those gaps. So I
4:20:43just want to acknowledge your clarity
4:20:45and I thank you for that because I was
4:20:46not trying to say that they never happen
4:20:48or they don't happen. But to council
4:20:50member Tuttles's point, I wanted to add
4:20:51some some context. So, uh, a lot of
4:20:54folks talk about the Kimar Plaza deal
4:20:56and I'm I am lucky enough to have many
4:20:59of my predecessors or the folks who have
4:21:02come before me still around and that was
4:21:04something that I asked about when I was
4:21:06coming in. And so, uh, you talked about
4:21:08history. I I will be the first one to
4:21:10say that history is important. And the
4:21:12truth about history is that there are
4:21:14parts of our community to include
4:21:15northeast Witchah, a predominantly black
4:21:17community, that has not seen the level
4:21:19of economic development and investment
4:21:21at rates as other communities. And that
4:21:24has led to some serious implications for
4:21:26that community that we have to address
4:21:28and we have to address it fast. Um, but
4:21:31the reason why that Kimmar Plaza deal
4:21:33was created the way it was was because
4:21:35they wanted to remove any barriers
4:21:37possible to encourage people to develop
4:21:40in an area that doesn't seem um ideal or
4:21:44attractive for developers when they
4:21:46consider all factors of where they're
4:21:47going to place their business or where
4:21:49they're going to develop their
4:21:50particular industry. We now know today,
4:21:53right, that we probably should not have
4:21:55done it that way and there should have
4:21:56been clawbacks and safeguards. But I I
4:21:59appreciate former mayor Carl Brewer and
4:22:02former council member Levanta Williams
4:22:04for being willing to acknowledge that
4:22:06that that community, that predominantly
4:22:08black community that has some of the
4:22:10highest disparities, not just in our
4:22:12city, not just in our state, but even in
4:22:15our nation in some regards when we start
4:22:16talking about infant mortality rates
4:22:18need access to economic development to
4:22:21increase social determinance of health
4:22:23and to increase quality of life. So when
4:22:25we talk about putting these things out
4:22:26there, what I don't like doing is that
4:22:28it it's kind of the struggle I have with
4:22:30some public speakers is they'll come and
4:22:32they'll share about the bad, but they'll
4:22:35leave out all the other context. And
4:22:37what it does is it creates a narrative
4:22:39and a perception that puts us as a
4:22:42council in a very uncompromising
4:22:44position. So, while I understand why you
4:22:47want a dashboard, I would just encourage
4:22:49us to maybe think through how we can do
4:22:51this in a holistic way where our
4:22:53developers don't feel like we don't like
4:22:56them and we don't want to do business
4:22:57with them because we're giving them a
4:22:59black eye, but our community doesn't
4:23:00feel like we're not being transparent. I
4:23:03just think that we have to strike a
4:23:04balance. And then finally, I think I
4:23:07think Council Member Tuttles's
4:23:09suggestion of allowing the task force to
4:23:11work through some of that is going to be
4:23:13critical because then you have all those
4:23:14stakeholders at the table. Um, and so I
4:23:17just wanted to share that with you
4:23:19because you mentioned history and I
4:23:21wanted to share some of that history and
4:23:23also talk about how that history as it
4:23:24relates to economic development is
4:23:26sorely hurting an area of my district um
4:23:31that doesn't get the opportunity that I
4:23:33feel like it deserves. and I'm going to
4:23:34fight for them to get that opportunity
4:23:36and we need to start talking about the
4:23:38context behind why these incentives are
4:23:40needed too.
4:23:41>> And I greatly appreciate both council
4:23:44members for sharing their thoughts
4:23:45regarding what needs to be transparent
4:23:48on a website. I think that again in
4:23:51highlighting a failure and what you've
4:23:54learned from the failure is important. I
4:23:57think it's in not acknowledging a
4:23:59failure that then creates this distrust
4:24:02with community and uh that learning is
4:24:06the context that is oftentimes missing
4:24:09in public dialogue and so I would like
4:24:12to see both the failures and as council
4:24:16member Tuttle said the successes. So if
4:24:19you can highlight both failures that
4:24:22have happened within the city especially
4:24:25in economic development um both
4:24:28successes and failures I really believe
4:24:30that that is a step forward um because
4:24:34you need to highlight what has been a
4:24:36mistake learn from that mistake and show
4:24:38how in 2026
4:24:41this is a different type of city than it
4:24:43was in 2006. Mayor, I think we should
4:24:47call them learning moments and I
4:24:48wouldn't single out our economic
4:24:50development department. There's learning
4:24:52moments that we have had. I mean, right?
4:24:54Like there's some things that we have
4:24:55done as a council that ooh we that's a
4:24:58learning moment and there's learning
4:25:00moments all across the city, but the
4:25:02city is not unique. Everyone should have
4:25:05learning moments that they reflect on
4:25:06and maybe choose a few and how we've
4:25:09corrected and moved forward. Our
4:25:10clawbacks is a great example of learning
4:25:12moments. So shout out to law and Jerry
4:25:15and the way that we don't do contracts
4:25:16the way we used to. That's a great
4:25:18learning moment and it does build trust
4:25:20and transparency.
4:25:21>> Yeah, the word failure I think is is not
4:25:23the way to go. And then again I just
4:25:25question the criteria of you know what
4:25:29what council member Hullheisle thinks
4:25:32about something and what I think about
4:25:34something and even if there was
4:25:35something that didn't go exactly like it
4:25:37was supposed to, I bet there was
4:25:38something that still was gleamed from
4:25:40it. I I'm just I'm not sure
4:25:45what good it's going to bring other than
4:25:48just the misconception that the city of
4:25:52Witchah isn't transparent. I I think it
4:25:56for the public servants in the past who
4:25:59probably were not in any way nefarious.
4:26:01Maybe the environment changed, something
4:26:03happened. I've mentioned before as the
4:26:05only council member who was here during
4:26:07COVID, the plans and thoughts that we
4:26:09had in 2019 were no longer the same as
4:26:12the plans and thoughts that we had in
4:26:142021. Right? We had to adjust. We had to
4:26:17rethink. Some things that we tried in
4:26:192020 didn't work, but we did the best we
4:26:23could with what we had. And so I think
4:26:26kind of looking back at past public
4:26:29servants and calling things failure,
4:26:31that's not moving Witchah forward.
4:26:33That's just kind of tearing us back
4:26:35down.
4:26:36>> I I agree. Um we we should learn from
4:26:39our mistakes. I don't think we need to
4:26:41highlight our mistakes.
4:26:43Um I we highlight our successes. Yes.
4:26:47But, uh, as a city council, I think we
4:26:49need to look forward, move forward, and
4:26:52and not forget the past, but we've
4:26:55already fixed a lot of those things in
4:26:56our contracts. So, I I think we just
4:26:59need to move forward.
4:27:01>> So, I will be the lone person that's
4:27:03asking for something that I do consider
4:27:06as a failure because I hear it from our
4:27:08community. I've been elected by the
4:27:10community. I am not the city manager. I
4:27:13don't manage the 3,100 employees.
4:27:16However, I do hear from community and
4:27:19what I hear from community is we don't
4:27:21trust portions of economic development.
4:27:25And so if they don't understand the
4:27:27history, the learnings, and what is
4:27:30different in 2026, we can't move
4:27:32forward. We'll still be stuck on a
4:27:34conversation of rebuilding trust. So I
4:27:37do believe that you can call them
4:27:39failures because that is what that
4:27:42though many of the things that we have
4:27:44been talking about are and it's not a
4:27:47bad thing to learn from failures. Um
4:27:49that is honest and I think that that is
4:27:51something that our community expects
4:27:53from city government to actually be
4:27:56honest and transparent.
4:27:57>> Mayor, if I may just offer another
4:27:59interpretation. I feel your passion on
4:28:01this and I can appreciate where you're
4:28:04coming from. [clears throat]
4:28:07I think we're one I don't think you're
4:28:09alone in saying like we want to be
4:28:11transparent. I don't think you're alone
4:28:12in that. Um
4:28:15>> I I I think we need to figure out and
4:28:19work with the city manager on what this
4:28:20can look like realistically.
4:28:23As mentioned, we're not going to cruise
4:28:25the website. People aren't looking to go
4:28:27cruise the website and read all these
4:28:28things. And I and I get maybe it's a a
4:28:31dashboard. I mean, we have models in
4:28:33place, be it a transparency portal, um,
4:28:37something of that nature. I know finance
4:28:38is also working on putting things like
4:28:41credit card transactions on the website.
4:28:43I mean, let's just really think through
4:28:45this through a methodical lens. And I
4:28:47just don't want unintended consequences,
4:28:49but I I'm with you. I want to I want
4:28:52trust and transparency. I think it works
4:28:54both ways, though. We can't just
4:28:56highlight the darkness because that's
4:28:59all people will feel is darkness. There
4:29:02is light in what we are doing. There is
4:29:04light in what our community is doing.
4:29:06Um, and what developers are doing. And
4:29:08one of the things I've heard from those
4:29:11those developers, small businesses,
4:29:14small developers, subcontractors, is we
4:29:17feel like we are automatically enemy
4:29:20number one when we come before the city
4:29:22council because business is a dirty
4:29:24word. And I just I reject that
4:29:26sentiment. as a former student leader
4:29:29who was a truly flipping over tables
4:29:32about innovation campus. We don't want
4:29:35this here. This is not good. And I look
4:29:37today and now I say thank God these
4:29:40opportunities are here and the jobs that
4:29:42it's creating. Is there more work to do
4:29:44in connecting with community and and
4:29:46bridging the gap? Absolutely.
4:29:49But I but I think we've got some work to
4:29:51do in regards to bridging some gaps. And
4:29:54if we only spew darkness, that's all
4:29:56people are going to feel about economic
4:29:58development, our city, and the people
4:30:00who who have been elected to serve them.
4:30:02>> And I'm just going to add on to that,
4:30:04city manager. Maybe this would be
4:30:06another great project for our new
4:30:07economic development director because,
4:30:10you know, hopefully this task force can
4:30:11come to fruition, but we're also going
4:30:13to hire someone who's an expert in
4:30:15economic development. And I would really
4:30:17value their opinion on if a strategy
4:30:21such as, you know, highlighting
4:30:23failures, which again, I hope we don't
4:30:24use that word, is going to help
4:30:28with transparency. It's not. And it's
4:30:30certainly not going to help foster
4:30:32economic development. If you're a
4:30:34company in California looking to move to
4:30:37Witchaw and you come to our economic
4:30:39development page and you see all the
4:30:41failures,
4:30:42that's not that's not going to help. Um,
4:30:45and so I I think that yes, a way for
4:30:48lessons learned, but not disrespectful
4:30:51to past electeds or past staff, but this
4:30:54could be a charge for our new economic
4:30:57development director. So, um, I'm sure
4:30:59we're going to find someone great um,
4:31:01who I, as I mentioned, is a content
4:31:04expert and can help us find strategies
4:31:06to move forward and not just think about
4:31:08the past.
4:31:09>> Yeah. And mayor and council members, if
4:31:10I may, I do think you're right. we will
4:31:12lean on to our staff expertise that
4:31:14we're bringing in. But I do think what
4:31:16you've all have said and what we've all
4:31:18recognized, I think, in this
4:31:20conversation is we're talking about
4:31:22economic development incentive tools
4:31:24because not every tool fits the project
4:31:28at hand. And that's why we've had
4:31:30different structures in different
4:31:33contracts. Why it may have made sense we
4:31:35did a 99-year lease in one deal doesn't
4:31:38seem to be the appetite for now or other
4:31:40deals. How we structured some incentives
4:31:43in one deal doesn't seem to be the
4:31:46appetite or the appropriate lever to
4:31:49pull to bring in another deal. And so I
4:31:51think it just reflects that we've had
4:31:54complicated um deals that have all had
4:31:56their own unique structures to them. But
4:31:59I think where I think you all might land
4:32:01and we'll talk this through um in the
4:32:04coming weeks here is I do think there is
4:32:06value that we could highlight what has
4:32:09changed and kind of our basic structure
4:32:12for economic development. That's why I'm
4:32:14talking about the incentives. But as I
4:32:15talked about, I think it's in the
4:32:16contracts, what changes we've made where
4:32:19we've acknowledged that maybe that
4:32:21wasn't the best structure for a longer
4:32:23term lease and kind of focus in on the
4:32:25short-term lease with renewals, whatever
4:32:27it may be. We have the five-year
4:32:29check-ins. I think there's a way to
4:32:31highlight that our basic economic
4:32:34development structure has these
4:32:36components and then people can take
4:32:38those components and line them up to
4:32:41past deals and see where they were or
4:32:43were not. And I think that may be uh a
4:32:46path that you all would be interested
4:32:48in. So, we'll talk that through some
4:32:49more.
4:32:50>> I I can appreciate that in just a little
4:32:52bit here. Um I think the task force is a
4:32:55great idea. I think just getting
4:32:56eyeballs on it. Um showing again the
4:32:59lessons that we've learned. Um but the
4:33:02most important thing that we have our
4:33:04duty up here is to make sure that we
4:33:06have a good program going forward, good
4:33:08policy going forward. So that's
4:33:11definitely something that we need to
4:33:12highlight. So that's I think job number
4:33:14one with this. We can relitigate the
4:33:17past all we want, but the most important
4:33:19thing is that we're setting up for the
4:33:22future to expand our economic
4:33:24development here in the city and refine
4:33:28it to the areas that we think are
4:33:29appropriate. So,
4:33:31>> and I will echo that the task force
4:33:33would be a great step forward um if it
4:33:36can mirror a lot of what the landlord
4:33:38tenant uh task force looks like.
4:33:41However, in that task force, the mayor
4:33:43had more recommendations in terms of
4:33:46individuals. I would rather see each of
4:33:49the individuals on the council get two
4:33:51individuals to serve on that task force.
4:33:54So, that would be 14 members. And I
4:33:57would like to see one person who has
4:34:00used the tools and one person who's a
4:34:02community member that is either an
4:34:05advocate or even an activist in our
4:34:07community uh that would like to serve on
4:34:10that task force regarding economic
4:34:12development.
4:34:12>> I hope almost everybody on the task
4:34:14force has used our economic development
4:34:16tools. I mean I can understand a couple
4:34:18community members too who are you know
4:34:20advocates but I mean part of the purpose
4:34:22is to find out how we can improve the
4:34:24system and to see how to improve the
4:34:26system is you know somebody who's gone
4:34:28through it as as the speaker mentioned
4:34:30that wasn't effective um didn't know who
4:34:33to go to wasn't always consistent so I
4:34:36think people with lived experiences of
4:34:38the process that was my entire point so
4:34:42>> well mine is to include Celeste reset
4:34:44into that that is the reason And why I
4:34:46bring that up because I don't think she
4:34:47has utilized said incentives, but um she
4:34:51has been vocal regarding incentive tools
4:34:53and I would like to see her on that task
4:34:55force. So that's for the record.
4:34:57>> Oh, we have to vote on task force
4:34:59members.
4:35:00>> Celeste will not have my vote.
4:35:05>> Uh city manager, regarding your second
4:35:07position that you'll be hiring, um I
4:35:09believe it's called a small business
4:35:11manager. Um, from what I heard from the
4:35:14public agenda, um, I would like to see
4:35:17something like a development concierge.
4:35:20So, someone that can help. Again, they
4:35:23highlighted several things such as, uh,
4:35:25the speed in moving zoning and all these
4:35:29um, portions of local government that
4:35:32are not within economic development, but
4:35:34they're spread out, whether it's in the
4:35:35city or at the county with MABC.
4:35:39Maybe your second role that you'll get
4:35:41to hire for, can that have a function of
4:35:46such as a development concierge type of
4:35:48individual that can see these projects
4:35:51to actual fruition? Especially uh
4:35:53hearing vice mayor talk about timelines
4:35:56and if incentives are tied to timelines,
4:35:59one of those aspects to timelines is the
4:36:03procedures that we have within the city
4:36:04of Witchah that may be cumbersome. The
4:36:07uh second position that we're
4:36:10envisioning is a business retention and
4:36:14expansion manager is the identified
4:36:17title. And as I've said, I think your
4:36:19concier approach mirrors what I was
4:36:22thinking for customer service. Um how
4:36:25staff, no matter who on our economic
4:36:28development team going forward, helps
4:36:30people along a process. Um that
4:36:32certainly is part of it. Um but I think
4:36:35we have some similar views on that about
4:36:38how we think more about customer service
4:36:40or concier. And so um that is the
4:36:43general framework that I'll be glad to
4:36:45expand on um for you. But that's how we
4:36:47have it structured now.
4:36:49>> Uh can we go to slide number 76 really
4:36:52quick since everyone has mentioned uh
4:36:54some sort of consultant. How much was
4:36:56this consultant back in 2019?
4:37:00>> Oh, Mayor. Um, that's a good question.
4:37:04That was a joint venture partnership
4:37:06between the city, the county, and uh the
4:37:09partnership.
4:37:11Um,
4:37:13I will get you that number for sure. I
4:37:15hesitate to throw it out. I want to say
4:37:16it was around $30,000 total. So, I think
4:37:18each entity was 10,000, but I'm doing
4:37:20that from memory and I've slept since
4:37:23then. Sorry.
4:37:23>> Thank you. And um I think since we have
4:37:26one new council member on this council
4:37:28since the last lipa lipa uh
4:37:31conversation, can that be re-shared with
4:37:33the entire council via email? Um so then
4:37:36everyone has the same information that
4:37:38Vice Mayor Glascock was uh alluding to.
4:37:41>> Sure.
4:37:41>> And last but not least, um I want to
4:37:44just uh say thank you to the city
4:37:46manager uh both the last one and this
4:37:48current one. Um, since becoming mayor, I
4:37:52asked the green sheet to have more
4:37:54detail, uh, especially when it came to
4:37:56economic development. And so, um, in
4:37:59particular, I'm looking at September
4:38:0116th of 2025. Um, today in the consent
4:38:05agenda, we had a revision or an
4:38:08extension to that agenda item in consent
4:38:11agenda number five, and that was
4:38:13actually workforce housing. uh that
4:38:16developer received 50% property tax
4:38:19abatement and a sales tax exemption. And
4:38:22if you recall in September of 2025, that
4:38:26green sheet had a boilerplate that now
4:38:28has been on every green sheet regarding
4:38:31economic development tools to explain
4:38:33what those tools are. Um, but what I'd
4:38:36like to see is a more robust uh green
4:38:38sheet. And I specifically um have asked
4:38:41for several questions that need to be
4:38:43answered in that green sheet. Number
4:38:46one, is it necessary? And what is the
4:38:49risk to the city? Number two, is there a
4:38:52clear public benefit? Number three, has
4:38:56the project and the sponsor been
4:38:58thoroughly vetted? And number four, does
4:39:01the agreement protect taxpayers? Um so
4:39:05those answers can be uh within either
4:39:08the green sheet which would be
4:39:10preferable as that is the document that
4:39:12people look at even prior to the council
4:39:15meeting but also highlighting it in the
4:39:17actual presentation.
4:39:19>> Mayor
4:39:19>> I have a question.
4:39:20>> Oh go ahead.
4:39:21>> What is necessary and who deems what is
4:39:24necessary and not so
4:39:26>> and what is the vetting
4:39:27>> and yeah what is the vetting? So again
4:39:30um that can't be a directive from one
4:39:32council member. There has to be a
4:39:34consensus. So, I think Dennis, you're
4:39:35going to have to shop that idea and see
4:39:37if we truly are going to change the way
4:39:39we do the green sheets. But, you know,
4:39:42what's necessary again to I'm going to
4:39:44keep picking on you, but what's
4:39:45necessary to council member Hole Heisel
4:39:47may not be necessary to me. I I there's
4:39:50a lot of things that may not like do you
4:39:52mean is it a necessary asset to the
4:39:55community? Well, no. we may not, you
4:39:58know, perish as a city if we don't have
4:40:00blank, but it also may be a benefit.
4:40:02And, you know, like I can think of a
4:40:06dozen examples off the top of my head
4:40:07where um, you know, it wasn't like water
4:40:10to the community, but it's something
4:40:12that's bringing economic development and
4:40:14making our our community a better place
4:40:17to live, learn, earn, play, and pray.
4:40:19So, um, I I just again, there's a lot of
4:40:22values in economic development. you
4:40:25know, what you think is a good deal
4:40:26versus what I think is a good deal. And
4:40:28so, um, Dennis, Godspeed to you to try
4:40:30and figure out how to move forward with
4:40:32that one. I'm very specific rather on
4:40:35the it is it the it is actually the
4:40:40economic development tool, not the
4:40:42project. Is the tool necessary and what
4:40:46is the risk to the city? So
4:40:49>> necessary
4:40:50>> is the tool necessary and that can be
4:40:53the applicant saying but for that tool I
4:40:56can't move forward. That's how that
4:40:58works and that is actually how it's
4:41:01written currently in our ordinance.
4:41:03>> It's our ordinance and the state statute
4:41:06but they need to say it but for this
4:41:08tool this project can't move forward. I
4:41:13believe that it's important for the
4:41:15developer to vocalize that this tool is
4:41:19not being because I don't want these
4:41:21tools to be haphazardously
4:41:23or uh much more judiciously provided to
4:41:28developers rather than liberally given
4:41:32to everybody. So again, I would like an
4:41:35actual verbalized or written uh of why
4:41:38but for this tool this project can't
4:41:41move forward.
4:41:42>> With all due respect, a developer will
4:41:44always say it's necessary.
4:41:47Um I think it's up to the council to
4:41:49decide whether it is necessary or not.
4:41:53And I'll refer back to the C for
4:41:55margaritas.
4:41:56He was already started.
4:41:59>> I know it. But he's already started. we
4:42:01we have to put in our own judgment to
4:42:03see if it is necessary or not.
4:42:06>> And something else I'd like to make a
4:42:07note of, the public doesn't see every
4:42:10application that comes down the pipe. Uh
4:42:12there's a number of things that are
4:42:13stopped with our economic development
4:42:15department and before council, too,
4:42:18because a lot of times they get shopped
4:42:20around with us beforehand. So, just to
4:42:22let the public know, not every project
4:42:24that is submitted gets heard by council
4:42:27because we do have controls in place to
4:42:29kick out a lot of the bad ones or the
4:42:31ones that don't qualify.
4:42:35And I do think a part of the green sheet
4:42:38information that we share in there
4:42:40already for council's deliberation is
4:42:43the ROI, the return on investment. So
4:42:46depends on what instrument or what tool
4:42:49is being requested. But we do need more
4:42:52conversation because when you look at
4:42:53some of the housing the multifamily
4:42:56housing um projects that have come
4:42:58through recently that have asked for the
4:43:01sales tax abatement there hasn't been
4:43:04much policy discussion around are there
4:43:07thresholds for that um investment if you
4:43:11have a higher investment or higher
4:43:13number of units. um is there some
4:43:15housing goals you want to achieve with
4:43:16that? So those are still some of the um
4:43:19I think conversation we want to have
4:43:21around the full spectrum of the tools
4:43:24and how they're used. But I would say
4:43:26part of your evaluation is ROI and we
4:43:28use Witto State to do that assessment
4:43:31for us. So you have that as a data point
4:43:34as you consider the factors for
4:43:37different projects.
4:43:39I'll be curious to see how it goes in
4:43:41the next couple weeks when we have a
4:43:43large very big project from
4:43:45bazillionaires that are coming downtown
4:43:47that will be asking us for incentives
4:43:50and it goes to the point that you just
4:43:52made about what did you say you said
4:43:55>> is it necessary
4:43:56>> yeah is it necessary so I'll be curious
4:43:58to see how those conversations go moving
4:44:00forward
4:44:08That's all we had for you today. We'll
4:44:10do the follow. Thank you very much. So,
4:44:13thank you for your time and information.