MINUTES

CITY COUNCIL MEETING

GLADSTONE, MISSOURI

MONDAY, OCTOBER 25, 2010

ADJOURNMENT TO CLOSED EXECUTIVE SESSION

6:15 PM

Mayor Les Smith opened the City Council Meeting to adjourn to a Closed Executive Session on October 25, 2010, at 6:15 PM. Mayor Pro Tem Barry McCullough made a motion to adjourn to Closed Executive Session pursuant to Missouri Open Meeting Act Exemption 610.021(1) for Litigation and Confidential or Privileged Communications with Legal Counsel, and 610.021(2) for Real Estate Acquisition Discussion, and 610.021(3) for Personnel Discussion. Councilman Mark Revenaugh seconded.

Roll Call Vote: All “aye” – Councilman Mark Revenaugh, Mayor Pro Tem Barry McCullough, and Mayor Les Smith. (3-0)

Councilmember Carol Suter was absent from the vote, but was present at the Closed Executive Session.

Councilman Carol Rudi was absent from the Closed Executive Session.

Mayor Les Smith recessed the Closed Executive Session to go into the Regular City Council meeting.

REGULAR CITY COUNCIL MEETING

7:30 PM

PRESENT: Mayor Les Smith

Mayor Pro Tem Barry McCullough

Councilman Mark Revenaugh

Councilmember Carol Suter

City Manager Kirk Davis

Assistant City Manager Scott Wingerson

Interim City Counselor Chris Williams

City Clerk Cathy Swenson

ABSENT: Councilman Carol Rudi

Item 2. on the Agenda. ROLL CALL

Mayor Les Smith opened the Regular October 25, 2010, City Council Meeting at 7:30 PM in the Gladstone City Council Chambers, and noted that all Council members were present, except for Councilman Carol Rudi, who was ill.

Item 3. on the Agenda. PLEDGE OF ALLEGIANCE.

Mayor Les Smith led the Pledge of Allegiance, in which all joined.

Item 4. on the Agenda. APPROVAL OF THE REGULAR OCTOBER 11, 2010, CITY COUNCIL MEETING MINUTES.

Mayor Pro Tem Barry McCullough moved to approve the Regular October 11, 2010, City Council Meeting Minutes as presented. Councilmember Carol Suter seconded. The vote: All “aye” – Councilmember Carol Suter, Councilman Mark Revenaugh, Mayor Pro Tem Barry McCullough and Mayor Les Smith. (4-0).

Item 5. on the Agenda. PROCLAMATION: offering congratulations to ST. PIUS X HIGH SCHOOL, which was recently recognized as one of the “TOP 50 CATHOLIC HIGH SCHOOLS IN THE UNITED STATES”.

Mayor Smith invited Mr. Joseph Monachino, Principal of St. Pius X High School to join him at the Council dais, where he read and presented the Proclamation to Mr. Monachino, who was accompanied by Ms. Mary Ann Litras, Vice Principal of School Advancement.

Mr. Monachino thanked the Mayor and the City Council for this recognition, and said St. Pius X High School has been serving the Northland for a long time, and it is a pleasure for them to continue a long standing tradition. This award is the culmination of a lot of hard work by a lot of good people over many years. Mr. Monachino said he was blessed to work with a lot of great people and great kids, and it is a pleasure to serve the Northland.

Ms. Litras thanked the Mayor and City Council.

Mayor Smith said that three years ago Mr. Monachino’s father was recognized by the City Council. Mayor Smith invited the St. Pius X High School students who were present to stand up and introduce themselves as follows: Theresa Gaul, Alexandria Sweeney, Amelia Miller, and Quinn Morris, all of whom were sophomores at the high school. Nelsie Sweeney, who accompanied the students, also introduced herself.

Mr. Monachino commented that the students were present at the meeting as part of their debate class, and just happened to be present this evening.

Mayor Smith, who said he graduated from St. Pius X High School, the class of 1975, congratulated Mr. Monachino and the high school. Mayor Smith said that the audience may have noticed that one of the young ladies who introduced herself, had the last name Sweeney. She is the daughter of Nelsie Sweeney, who was at one time the Executive Director of the Gladstone Area Chamber of Commerce. Mayor Smith said it was good to see her again.

Item 6. on the Agenda. CONSENT AGENDA

Councilmember Carol Suter moved to approve the Consent Agenda as presented. Councilman Mark Revenaugh seconded. The vote: All “aye” – Councilmember Carol Suter, Councilman Mark Revenaugh, Mayor Pro Tem Barry McCullough and Mayor Les Smith. (4-0).

Councilmember Carol Suter moved to adopt RESOLUTION R-10-59, authorizing the Mayor, City Council members, City Manager, Director of Parks and Recreation, and Chairman of the Parks and Recreation Advisory Board to execute all necessary applications and other documents to seek a grant-in-aid under the Missouri Department of Natural Resources Land and Water Conservation Fund for City of Gladstone Park Improvements. Councilman Mark Revenaugh seconded. The vote: All “aye” – Councilmember Carol Suter, Councilman Mark Revenaugh, Mayor Pro Tem Barry McCullough and Mayor Les Smith. (4-0).

Councilmember Carol Suter moved to adopt RESOLUTION R-10-60, authorizing execution of a contract with Playworld Systems, Incorporated, in the total amount not to exceed $135,000.00 for the Happy Rock Park East Playground Replacement Project. Councilman Mark Revenaugh seconded. The vote: All “aye” – Councilmember Carol Suter, Councilman Mark Revenaugh, Mayor Pro Tem Barry McCullough and Mayor Les Smith. (4-0).

Councilmember Carol Suter moved to adopt RESOLUTION R-10-61, authorizing the City of Gladstone, Missouri to execute a partner pledge with the Freedom’s Frontier National Heritage Area. Councilman Mark Revenaugh seconded. The vote: All “aye” – Councilmember Carol Suter, Councilman Mark Revenaugh, Mayor Pro Tem Barry McCullough and Mayor Les Smith. (4-0).

Councilmember Carol Suter moved to adopt RESOLUTION R-10-62, accepting Permanent and Temporary Construction Easements from certain property owners in conjunction with the Northeast 76^th Terrace and North Lydia Drainage Project. Councilman Mark Revenaugh seconded. The vote: All “aye” – Councilmember Carol Suter, Councilman Mark Revenaugh, Mayor Pro Tem Barry McCullough and Mayor Les Smith. (4-0).

Councilmember Carol Suter moved to adopt RESOLUTION R-10-63, authorizing the City Manager to execute an agreement with Clay County Realty Company to return the “Letter of Credit” pursuant to the terms of its settlement agreement for Phase I repair items to be completed by October 31, 2010. Councilman Mark Revenaugh seconded. The vote: All “aye” – Councilmember Carol Suter, Councilman Mark Revenaugh, Mayor Pro Tem Barry McCullough and Mayor Les Smith. (4-0).

Councilmember Carol Suter moved to approve the SEPTEMBER 2010 FINANCIAL REPORT. Councilman Mark Revenaugh seconded. The vote: All “aye” – Councilmember Carol Suter, Councilman Mark Revenaugh, Mayor Pro Tem Barry McCullough and Mayor Les Smith. (4-0).

REGULAR AGENDA.

Item 7. on the Agenda. COMMUNICATIONS FROM THE AUDIENCE.

Freddie Nichols, 5233 Old Pike Road, began by saying that she has been a resident of Gladstone on and off since 1955 or 1956, and for 38 straight years lately. Ms. Nichols said she was present at this meeting wearing two hats. Ms. Nichols said first she wished to compliment and say a huge thank you to the City Council and staff for their assistance on Saturday, when the William Boydston Chapter of the Daughters of the American Revolution performed the dedication of the historical marker. Ms. Nichols said she also wished to extend a thank you for the help of the City staff throughout that period. Public Information Officer Richard King acted as the historian, Planning Specialist Chris Helmer, and Economic Development Coordinator Melinda Mehaffy provided guidance as to how to get all the material together. These people made a difference throughout the effort, and it only took two years to get this project completed. The National Daughters of the American Revolution do a lot of “double dots on the i” on projects.

Ms. Nichols continued by saying that as a Health Board member, but most importantly, as Chairman of Missouri Local Boards of Health, and as a member of the board of the National Local Boards of Health, she was surprised as she traveled down North Oak Trafficway to see a Hookah Bar listed on Gladstone Plaza’s sign. This has been a priority on the part of the national association of Local Boards of Health for quite some time. Ms. Nichols said they were made aware in 2008, at a national conference about this issue. Ms. Nichols provided copies to the City Council of the National Association of Local Boards of Health Position Statement regarding Hookah Smoking and Lounges. Ms. Nichols read the following excerpt from the position statement:

Hookah smoking consists of tobacco, heated by quick-lighting charcoal, filtered through water, and distributed to the consumer via a plastic or leather hose. Persons smoke a single hookah over an average 45-50 minute period equating to the consumption of smoke from 100 cigarettes. Smoking sessions at hookah lounges also increase the risk of spreading infectious diseases such as herpes, hepatitis, influenza and tuberculosis if the hookahs are not property disinfected between users.

Ms. Nichols, at this point, stated that in many of the bars, people will bring their own pipes to insert, and it is a community smoke, not a single smoke. If the hookah tubes are not properly cleaned, that is where the problem lies. Ms. Nichols concluded reading from the position statement with the following sentence:

Hookah lounges place consumers and employees at an increased risk of the same poor outcomes that cigarette smoking does.

Ms. Nichols said this is a real concern, and these have been popping up in college towns, and it shocked her that one came to Gladstone Plaza, as their drawing crowd is older teens. Ms. Nichols said that Springfield, Massachusetts has created an Ordinance, and she has the information, but she would not be so presumptuous as to present that to the City Council this evening. Ms. Nichols said she wanted to raise a concern and let the City Council know that this is truly a national health issue, and that our communicable disease rate is raising in Clay County, and she recently heard that we are almost surpassing Jackson County, and that is bad. Ms. Nichols concluded by thanking the City Council again for their assistance with the historical markers, and said she very much appreciates the City Council members.

Donald Harper, 1606 NE 68 Terrace, stated that Parks and Recreation Director Sheila Lillis earlier this evening made reference to Clay County Senior Services, and he would like pay special tribute to Director Lillis and her staff. The funding that Clay County Senior Services provides to the Gladstone Community Center is one of the best investments they have any place in the County. Anyone can go to the Community Center any day and watch the Seniors in their exercise classes, and it shows how really great it is for all of us, and for not only Gladstone, but a lot of people come from other areas as well. Mr. Harper said this program is offered with Liberty and North Kansas City, and a couple of hospitals, but Gladstone is head and shoulders ahead of the curve in getting people involved in this and working with the Seniors to encourage them to do this. Mr. Harper said from the Clay County Seniors’ standpoint, they appreciate all that Gladstone does for this program. Exercise programs are being given credit for helping to stave off Alzheimer’s disease. Any place one looks, the benefits are so profound, it is unbelievable. Mr. Harper said he wished to thank Director Lillis and her staff for being partners with them, and doing what he believes is really good work. Mr. Harper said it has not been announced yet, but yes, they are going to receive an increase in funding for 2011.

Item 8. on the Agenda. COMMUNICATIONS FROM THE CITY COUNCIL.

Councilmember Carol Suter stated to Ms. Nichols that she would be interested in seeing the information she has about Ordinances related to water pipes.

Mayor Smith said he would also be interested in that information.

Ms. Nichols said she would provide that information to them.

Councilman Mark Revenaugh stated that usually when you see City staff in the paper, especially what comes to mind is the picture of a Kansas City employee sleeping in a truck, that is so opposite of the way our staff operates. Our City started a brand new enterprise like the Community Center, an 18 to 20 million-dollar facility, and for the third year in a row we are making money on it, which is unbelievable, and we are doing that in large part with no outside management. It is all City staff driven. City Council and staff will be going through a Goal Setting session this Wednesday, and one of the things that City Council members were asked to consider is what makes Gladstone special. Councilman Revenaugh said he would suggest that our Theatre in the Park program that is provided to citizens free of charge is a wonderful benefit to the community, and we do such a great job with it. We are teaching kids to swim, and by Director Lillis’s numbers, close to 1,200 kids learned to swim, and probably will not drown, as a result of participating in our learn to swim classes. Councilman Revenaugh said when he reflects on what makes Gladstone unique, he believes he would have to start with the City’s Parks and Recreation group. They do a fabulous job, and he would like to extend congratulations to Director Lillis and the rest of the staff, because he has never seen a City staff operate at the level that this one does, and our staff is certainly one of the things that has to be at the top of the list when one thinks of what makes Gladstone special.

Mayor Pro Tem Barry McCullough said he wished to extend a special appreciation to the St. Pius Debate members who were present. It is great to have young people in the crowd, and it is always exciting to see the engagement. Mayor Pro Tem McCullough thanked them for attending the meeting.

Mayor Les Smith stated that he remembered the Debate teacher’s name when he was in high school, Ms. Gorsky, and joking said that he was not Ms. Gorsky’s favorite student! Mayor Smith offered congratulations to the Debate team members present. Mayor Smith thanked Ms. Nichols for the ceremony at the Atkins Johnson Farm, and said the City is honored to have the marker dedicated, which is helping recognize the historical significance of the Farm. Mayor Smith said he is glad that the Council, staff and community members are committed to it – it is a wonderful project.

Item 9. on the Agenda. COMMUNICATIONS FROM THE CITY MANAGER.

City Manager Kirk Davis began by saying there was a person in the audience who deserves some recognition because of her commitment to the City in the past, and that is, for those who don’t know her, Nelsie Sweeney, who ran the Gladstone Area Chamber of Commerce for a period of time.

City Manager Davis mentioned that the Friday Night Fright Night would be held on October 29.

City Manager Davis reported that the City received a double A rating on the bond issues, and he believes it is the highest rating the City has ever received. It comes at a time when most cities have their ratings fall, versus actually improving. It says a lot about our city’s financial condition, and the work that the Department Heads do, the budgets that are set, and the history of how we managed our money. City Manager Davis offered Kudos to all involved, including the City Council and staff on the double A bond rating. This is a pretty big deal, and he is not sure how many suburban communities in Missouri have a double A rating, but he would venture to guess that there are very few. City Manager Davis said our city received a double A rating on the General Obligation Bonds, and a double A-1 rating on the Revenue Bonds.

Mayor Smith stated that the City Council does not wish to take action on the next two items on the agenda at this time, and asked Interim City Counselor Chris Williams if they may be continued to a “date certain”?

Counselor Williams agreed that would be fine, but did ask if the Bills would be completely rewritten.

City Manager Davis said the Bills would be adjusted, to which Rick McConnell of Gilmore and Bell, agreed. City Manager Davis said what we are talking about are two Bills relative to the issuance of those bonds. The City was notified late Thursday that we had been approved by the State of Missouri for Recovery Zone Economic Development Bond Re-allocation funds that affects these bonds in a couple of different ways. It makes them taxable versus not taxable, but also we get reimbursed 45 percent of the interest costs on the bonds, resulting in about a $350,000 savings over the course of twelve years. City Manager Davis explained this came up late, but he believes it is worth looking in to delaying any action Council might take on these bonds for a couple of weeks. City Manager Davis invited Greg Bricker, of George K. Baum, to discuss this issue.

Greg Bricker, of George K. Baum, began by saying that communication was received from the Department of Economic Development at roughly 1:00 PM on Thursday afternoon, which preceded the initial offering of the two series of bonds by roughly 18 hours. An application was submitted on June 30, to participate in a State program that we had initially been not approved to participate in. There had been enough communities that elected not to use their allocation, and had been returned back to the State, that they now had authorization to distribute to those people who had not been originally approved. Gladstone was on that list, and notification was received that the entire seven million dollar application we had made in late June had been granted.

Mr. Bricker said the average interest rate that we had originally anticipated for the General Obligation Bond was roughly 2.5 percent, and running that issue through this program will lower the average interest rate down to probably the 2.1 percent range. That will translate into an $85,000 savings on the Street Bonds, and on the Revenue Bonds, we had estimated an average interest rate of roughly 2.7 percent, and it should lower the average interest rate on that to the 2.2 percent range, which would translate into roughly a $275,000 savings. On a combined basis, this is a roughly $350,000 savings to the City for a little extra work and delaying the financing by roughly two weeks. If this communication had come in today at 1:00 PM, it would have been too late, so the timing is sometimes everything. Mr. Bricker said it was his professional recommendation to take advantage of this program, and it is his understanding that City staff concurs. These bonds will be marketed as taxable bonds, and the actual interest rate on the bonds themselves will be a higher interest rate than what we would have incurred on a tax-exempt basis. As City Manager Davis indicated, this program will reimburse the City 45 percent of the interest expense every six months, so after bringing in the subsidy into the equation, there is a roughly $350,000 benefit to the City, with very little or no hoops to jump through after the financing concludes. There is some moderate document reconstruction that is required that we could not do in the roughly 18 hour period of time that was available to meet the original

calendar, so tonight’s action items for the two Bills will be tabled until November 8, which is the current calendar.

Councilmember Suter inquired into the new issue date.

Mr. Bricker replied that date would be November 8. Mr. Bricker stated he would like to compliment Finance Director Debra Daily for completing the application.

Mayor Smith asked Counselor Williams what his preference would be.

Counselor Williams agreed that continuing the next two items on the agenda, until the next City Council meeting would be fine.

Item 10. on the Agenda. FIRST READING BILL 10-38, authorizing and directing the issuance, sale and delivery of $2,000,000 principal amount of General Obligation Street Improvement Bonds, Series 2010, of the City of Gladstone, Missouri, and authorizing certain other documents and actions in connection therewith.

Mayor Smith said that Item 10., First Reading of Bill 10-38, would be continued to the November 8, 2010, City Council meeting.

Item 11. on the Agenda. FIRST READING BILL 10-39, authorizing the issuance of Combined Waterworks and Sewerage System Refunding and Improvement Revenue Bonds, Series 2010, of the City of Gladstone, Missouri; prescribing the form and details of said Bonds and the covenants and agreements to provide for the payment and security thereof; and authorizing certain actions and documents and prescribing other matters relating thereto.

Mayor Smith said that Item 11., First Reading of Bill 10-39, would be continued to the November 8, 2010, City Council meeting.

Item 12. on the Agenda. Other Business.

There was no other business to come before the City Council.

Item 13. on the Agenda. Questions from the News Media.

There were no News Media present.

Item 14. on the Agenda. Adjournment.

There being no further business to come before the October 25, 2010, Gladstone Regular City Council Meeting, Mayor Les Smith adjourned the regular meeting.

Respectfully submitted:

______________________________

Cathy Swenson, City Clerk

Approved as submitted: ___

Approved as corrected/amended: ___

______________________________

Mayor Les Smith