eNewsletter December 7, 2011

From City Council . . . to the Business Council

Prepared by Rich Groves, Executive Director, North Kansas City Business Council

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Recent topics from City Hall as of December 7, 2011 . . .

After two weeks with no City Council meetings, several interesting topics were addressed at the December 6 meeting. Here are highlights from that meeting.

• Termination of the pre-development agreement with LADCO Development
• Approval of the contract for demolition of the ADM facility
• Changes to administration of Police Officers and Firefighters’ Retirement Fund
• Update about the valuation of the Police Officers and Firefighters’ Retirement Fund
• Update about tax increase options
• Update about the injury to the North Kansas City police dog

Termination of the LADCO Pre-Development Agreement

Inadequate financial resources of the contractor (LADCO Development, Inc) have led to the cancellation of the contract between the City of North Kansas City and LADCO. This is the organization that has been doing pre-development work for several months related to the anticipated re-development project east of I-29/I-35 and south of Armour Rd (current sites of ADM, Sutherland and other businesses). North Kansas City has been released from any additional financial commitments to LADCO.

The pre-development phase of this project will be re-submitted for bids. A decision on a successful bidder will probably not materialize until at least March, 2012.

Contract for Demolition of the ADM Facility

In spite of the need to find a different contractor for pre-development planning activities, progress will continue to clear the land for the anticipated re-development project described above. The successful bidder from eleven qualified bids for demolition work is Mid-America Roofing Construction & Supply Co., Inc.

The City opted for the “Alternate bid” which specifies that concrete from the facility be pulverized to aggregate form and be left on the property instead of being hauled away. This allowed a savings of over $300 thousand as well as preservation of a resource that can be used for future development. According to the contract approved by the City Council the project is expected to cost not more than $1,063,330. Per the contract, the project is supposed to be completed within 195 calendar days (6 1⁄2 months) after receipt of the contract from the City.

From a personal standpoint, the process of de-constructing the ADM facility should be extremely interesting to observe during the first half of 2012. This landmark of North Kansas City that has been there since the first half of the last century.

Changes to Administration of the Police Officers and Firefighters’ Pension Fund

Several changes were proposed and approved concerning administration of the Police Officers and Firefighters’ Pension Fund. These changes include: 1) Allow an alternate to represent the Police Chief or the Fire Chief when they are unable to attend Fund Board meetings; 2) Include duty-caused disability to be an allowed cause for retirement; 3) Authorize City staff to perform most of the administrative support tasks, but final approval of recommendations must be authorized by the fund Board; and 4) Indemnify and protect any trustee, alternate trustee or employee of the city providing services to the retirement fund against any or all claims, costs, damages or liabilities, including the defense thereof, arising out of a trustee, alternate trustee or employee’s responsibilities with respect to the retirement fund.

Valuation of the Police Officers and Firefighters Retirement Fund

Traci Christian, actuarial accountant from the firm of McCloud & Nichols, gave an update about the status of and outlook for the unfunded portion of the Police Officers and Firefighters’ Retirement Fund. The unfortunate news is that the unfunded portion of the fund has declined from zero a few years ago to more than 20%. One reason is that investment values have declined in the last 3 years, just as for virtually any other investment. Unfortunately, the rate of deposits to the fund has not been adequate to maintain an appropriate level in the fund. According to actuarial projections from Ms Christian, the City needs to allocate $756,208 per year to the fund for the next 20 years to allow it to become fully funded again. State statutes could go into effect if the unfunded portion of the fund is allowed to decline to more than 40%.

City Administrator Shatto did not attempt to explain why the needed level of deposits had not been made before he came to North Kansas City, but pledged that he and others on the staff would evaluate the situation and make recommendations to the City Council early in 2012.

Tax Increase Options

City Counselor Tom Barzee and City Finance Manager Shirley Land explained the ramifications of two types of possible tax increases the City Council had expressed interest in. There was little further interest in an increase in the Health/Solid Waste/Museum Levy (a property tax) which could possibly generate another $500,000. There was interest, however, in a possible Storm Water Control/Parks Sales Tax increase which could generate as much as $1,350,000 more income to be used for storm water and park projects.

No additional taxes can be invoked, however, without a vote of approval by North Kansas City voters.

Update about the injury to the missing North Kansas City police dog

Police Chief Ladd explained that the trained police and narcotics detection dog that was lost last weekend had been found but that it was injured and would need surgery. He believes the outlook for recovery is good and that an $4,000 investment for the surgery should be made due to the unique training and dual capabilities of the dog and the veterinarians’ evaluation of the injury.

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What is this?

This is the 10th in a series of e-newsletters that will bring to you, twice a month, any relevant news for the business community from the City Council meetings that I attend each week, as well as other happenings at City Hall.

Why do we do it?

This communication is intended to be an additional Benefit of Membership for members of the North Kansas City Business Council. If you know of other businesses who are NOT members – but who probably would benefit by being a member – please let them know this is one thing they are missing.

If you have good "leads" for prospective new members, please let me know. Call 472-7700 or e-mail richard@nkcbusinesscouncil.com.