2017
Annual Report
Photo by Chad Godfrey • Summit Video Services
Contents Mayor and City Council.............3 Message to Residents.............4 Lee’s Summit At A Glance .............5 Management Team.............6 Fiscal Sustainability..............6 The Big Picture...From Above!.........7 Department & Division Highlights..............8-17 Audit Recommendation........18-19
MAYOR & CITY COUNCIL
Mayor Randall Rhoads
DISTRICT 1
Mayor Pro Tempore Robert Binney
DISTRICT 2
Councilmember Diane Forte
Councilmember Trish Carlyle
DISTRICT 3
Councilmember Diane Seif
Councilmember Craig Faith
DISTRICT 4
Councilmember Phyllis Edson
Councilmember Dave Mosby
Councilmember Fred DeMoro
Vision
A culturally rich community with diverse economic sectors to create a prosperous and dynamic community in perpetuity.
Mission
Our mission is to create positive community relationships and a progressive organization delivering valued programs and services.
Core Values Accountability • Communication • Trustworthiness • Engaged Professional • Innovative • Customer Focus-Driven • Collaborative Page 3
Message to Residents One of the keys to success for any person or organization is to follow an old but true axiom… ”Keep the Big Picture in Mind.” When we look back at 2017, we find a combination of many successes as well as some challenges that still need to be resolved. We should be proud of our ability to address important matters today while keeping the perspective of The Big Picture. As we continue to move ahead on long-term projects and begin new initiatives, keen consideration is given to how a project affects our citizens and the future of our community. Does this project fit the big picture envisioned by our citizens? To answer this, we consistently refer to and utilize broad-based citizen input that has been the hallmark of our development and growth as a city. Hundreds of citizens, whether they are involved in a standing committee or a one-time review, set the course for our future by helping the City determine major initiatives and the prioritization of City resources. The new Water Utilities Service Center is an excellent example of a 2017 project completed with considerable input and vision from citizens who served on community advisory groups and the Water Utilities Advisory Board. Much success is achieved when citizens have a seat at the table and 2018 will be no exception.
The Big Picture
Our employees have always been the critical foundation of our operations. Their dedication to public service is evident in the long-term commitments seen in our employee base. We recognize that working for the City of Lee’s Summit is not a stopping off point in a career, but rather a place to grow, flourish and make a lasting impact. Our workforce provides the level of quality municipal services that are expected today and in the future. This underscores the importance of processes such as the Human Resource Services reorganization and Compensation and Benefit Study which we executed this year. Both reflect our commitment to a fair and equitable workplace while developing talented employees who understand the importance of public service. This past year saw the retirement of Parks and Recreation Administrator Tom Lovell and City Clerk Denise Chisum who during their 70 years of combined service, left a lasting imprint on the City. Longevity such as theirs exists across our departments and contributes to the stability, professionalism and positive culture we see among our employees. This culture has helped the City attract incredible new talent this year who bring with them fresh perspectives that energize our work. When you combine these new perspectives with our tenured employees, you have an outstanding organization! We will continue to keep the Big Picture in mind as we look to 2018. It is an honor to work and provide quality services for a community comprised of citizens who care about their city and are engaged in the important decisions that will impact generations to come.
City Manager Stephen Arbo
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At A Glance Awards & Achievements Digital Cities 3rd in population category
City Area: 65.87 square miles Population: 97,135 2017 Non-residential building permits 271,129 square feet 2017 Residential permits 774 issued
379 multifamily
Best Places to Raise a Family Ranked No. 24 by Niche Best Places to Raise a Family in Missouri Ranked No. 13 by WalletHub
389 singlefamily
Top Organization of 2017 Top blood donations - 2017 compared to 2016
The number of building permits issued in 2017 suggest Lee’s Summit is steadily growing again. We are seeing increased redevelopment activity over prior years with non-residential. In 2017, redevelopment comprised 21% of overall permitted square footage.
Median Age: 38.2*
80,494*
Best Places to Buy a Forever Home Ranked No. 46 by GoodCall.com Best Places to Live in 2017 No. 92 by Money Magazine
Units Permitted
6 duplex
America’s Best Cities to Live Ranked No. 19 in 24/7 Wall St.
Median Household Income
Community for All Ages Bronze level achievement Chamber Hall of Fame Airport inducted into the Lee’s Summit Chamber of Commerce Hall of Fame Mid-American Snow and Equipment Expo 3rd: Kansas City Metro Chapter of the American Public Works Association (APWA) Public Works Project of the Year By the Kansas City Metro Chapter of the American Public Works Association (APWA in the transportation category ($5m-24.9m))
*US Census American Community Survey 2016
School Districts within Lee’s Summit Blue Springs
Lee’s Summit
Independence .03%
Governor’s Conspicuous Service Medal City Attorney Brian Head Honored Elected Mid-America Regional Council Secretary Mayor Randy Rhoads Employee of the Year Craig Gentry, ITS
Grandview Hickman Mills Raymore-Peculiar
LS CARES Reflections of Character Award Officer James Brock
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MANAGEMENT TEAM City Manager Stephen Arbo; City Attorney Brian Head; Assistant City Manager - Operations Christal Kliewer Weber; Assistant City Manager Development Services/ Communications Mark Dunning
Finance Director Conrad Lamb; Parks & Recreation Administrator Joe Snook; Police Chief Travis Forbes; Fire Chief Rick Poeschl
Water Utilities Director Mark Schaufler; Public Works Director Dena Mezger; Director of Planning & Special Projects Robert McKay; Director of Development Center Ryan Elam
Assistant City Manager Administrative Services Nick Edwards; Chief Technology Officer Steve Marsh; Creative Services Manager Cheryl Nash; Interim Human Resources Director Jackie Heanue
FISCAL SUSTAINABILITY General Fund Year-end Reserve Balance (in $millions)
Aaa rating
In 2017, the City of Lee’s Summit achieved a triple A (Aaa) credit rating from Moody’s Investors Service. According to Moody’s, “The upgrade to Aaa reflects the city’s historical trend of strong fiscal management and healthy reserve position. The rating also considers the city’s large and growing tax base favorably located in the Kansas City, MO metropolitan area; strong resident income levels, and manageable debt and pension burdens.” Much like a person’s individual credit rating, this achievement will allow for lower interest rates on City issued debt thereby allowing more money to be invested in the community. It is estimated that this rating will save the City approximately $150,000 in interest expenses. The reserve balance calculation that occurs on July 1 of each year does not fully illustrate the financial condition from a cash standpoint.
THE BIG PICTURE...FROM ABOVE! The Lee’s Summit Municipal Airport began a brand new chapter in its history this September when city leaders and project partners unveiled a new north/south runway. The new runway, extended from 4,014 feet to 5,501 feet, will enable heavier corporate jets to take-off and land at the Lee’s Summit airport. Opening the door to an exciting new customer base, this extended runway is expected to serve as a catalyst for airport growth and provide aircraft users another option when flying into the Kansas City metropolitan area. A number of additional upgrades were completed at the airport including: • 4,000 ft. crosswind runway, extended from 3,800 ft. • 100 ft. wide north/south runway, widened from 75 ft. • Nine inches of pavement thickness on the north/south runway • 60,000 lb. aircraft capacity • Improved airfield lighting In 2016 the City purchased Hanger 1, a 40,000 square-foot hangar available for business or corporate aircraft and/ or itinerant stays. Hanger 1 can accommodate several based corporate aircraft with additional room for overnight, transient aircraft in this fully enclosed, heated space. Amenities such as a pilot’s lounge, meeting rooms, concierge services and office space have been added to Hanger 1 to make it attractive to both the business and leisure traveler. This facility and the new upgrades position the Lee’s Summit Municipal Airport to be the new gateway to the Kansas City metro. The $18.9 million project, funded by a combination of federal and state grants and a 5 percent local match by the City of Lee’s Summit, fulfills a long-term vision set forth in the Airport Master Plan developed over 20 years ago.
“This has been an important project for our City and represents a real game-changer in the delivery of aviation services for the entire Kansas City metropolitan area. With the runway extension we can serve heavier aircraft and attract business jet traffic, greatly increasing the number of companies visiting and doing business in our great City. We look forward to an exciting future for our airport and the many opportunities it has created for Lee’s Summit.” ~Mayor Randy Rhoads Airport Ribbon Cutting
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DEPARTMENT & DIVISION HIGHLIGHTS DEPARTMENTAL UPDATES Administration Great organizations have the ability to make assessments and adjust based upon observations and critical thinking. Growth-oriented communities such as the City of Lee’s Summit often find it challenging to manage the operational issues associated with increasing demands while continuing to provide quality services to the existing community. In general, the City has done well in planning for growth and implementing those plans. As a community grows larger in population and business activities, the municipal service organization must also increase in capacity or be at risk of diminishing service levels to existing residents and community investors. In 2017, the Administration Department took on some fairly tough issues related to the organization and its ability to provide quality municipal services to the citizens. Below is a quick overview of three key performance areas that were reviewed through an assessment process and have the promise of producing better outcomes for both the organization and community.
Compensation and Benefit Study
what matters
One of the most challenging and important tasks for a City is to create fair and equitable compensation programs that a) attract and retain outstanding individuals who have a desire for public service, b) provide a pay structure that rewards outstanding performance, c) provide a compensation and benefit program that can be sustained, and d) communicates to the employee base the good intention and commitment of the City as their employer. In November 2016, the City commissioned a study to review the compensation structure and benefit programs currently provided to the City of Lee’s Summit employees. The study made comparisons to other employers that may compete for the same pool of candidates or possibly attract an existing City of Lee’s Summit employee. Based upon the consultant’s analysis, a series of presentations were made to the City Council with recommendations regarding a new compensation structure. The City Council has taken the Springsted report and recommendation under advisement, but has not been able to reach a consensus regarding the necessary steps forward on this matter. The City of Lee’s Summit employees have three “collective bargaining units” that represent the police officers, firefighters, and the Water and Public Works operational employees. Finding common ground that will allow the City to implement improvements has been very challenging and engages broader political bases within the City of Lee’s Summit. This matter has consumed substantial resources for the Administration Department. As stated earlier, it is one of the most important matters of the organization and certainly deserves the energy required to find positive outcomes that can be supported by the community.
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compensation & benefits Quality
Delivery
Cost
Reorganization of Human Resource Services With the incremental growth of the organization, there is also a need to transform Human Resources from a “transactional” operation to one that is more strategic and supportive of training and workforce development needs. The human resource profession has changed significantly in the last few decades from a group that monitored sick leave usage and enforced personnel rules and regulations, to a field of work dedicated to supporting organizational leaders in making key decisions related to organizational structure, human resource allocation, employee engagement, and many other valuable endeavors that help create “top performing” places to work. The City of Lee’s Summit, as well as many municipalities in United States, has been lagging in making the changes necessary to create a “strategic-based” human resources department. In June 2017, the City Council authorized a comprehensive study of the City’s existing Human Resources. Through that study with a nationally recognized consulting firm, Novak Consulting, a three-year transformational plan was adopted to build Human Resources that will better meet the needs of employees, department heads, and organizational leaders. Many of the first steps of the plan have already been approved by the City Council and implemented. Further enhancements that align with the three-year plan will be implemented in FY 2019-20 subject to adoption of the City Manager’s recommended budget. Full reports on these studies and recommendations can be found by visiting the City of Lee’s Summit’s website (cityofLS.net) and searching for keyword phrases such as “Springsted Study” or “Novak Study.” City Charter Revision With the guidance of the City Attorney’s Office and City Clerk’s Office, a complete review of the City of Lee’s Summit Charter was completed in 2017. This review culminated into 12 ballot questions that were considered by the City of Lee’s Summit voters in April 2017. All 12 of the ballot questions were approved by the voters. The City Charter serves as the City’s “constitution” regarding the powers granted to specific office holders, legislative authority of the City Council, and establishes many of the general operating parameters of the City. The City is grateful for the citizen leadership of Ron Williams and Gladys Bratton in conjunction with the other 10 citizens who served on the Charter Review Committee during 2016 and 2017. As mentioned, there was also significant staff support provided by City Attorney Brian Head and Denise Chisum, the recently retired city clerk. The revised City Charter may be located on the City’s website, cityofLS.net. This year has been challenging for the Administrative Team due to the important activities that have been mentioned, as well as many other crucial endeavors. In local government, changes are typically not completed without significant energy. Work is done in a political environment that creates new opportunities to assure the City’s direction is aligned with the community’s values. It is in this environment Administration strives to serve the City in the best manner possible. The three topics described above are vital to the City’s continued success and its ability to serve Lee’s Summit. Administration will continue to focus on the balance of meeting the existing needs of the community, conducting analysis where necessary to make positive changes, and continuing to allow growth that enhances the City. Page 9
The marketing of the City Blood Drives along with special incentives offered by the Community Blood Center helped bring 120 more units of blood in 2017 compared to 2016, which earned the City the “Top Organization of 2017” award! This amount of blood is enough to impact over 240 lives locally.
City Manager Stephen Arbo presents Craig Gentry with the Employee of the Year plaque.
Airport The highlight of the year for the Lee’s Summit Municipal Airport was the completion of runway improvements. The project was unique in that it included a 21-day continuous closure of the runways for intersection construction, which meant flights could not take off or land at the airport during that timeframe. North/south runway 18-36 was extended from 4,014 ft. x 75 ft. to 5,501 ft. x 100 ft. The longer runway allows greater capabilities for corporate aircraft users to take off and land at the airport, giving many business jets another airport option in the Kansas City metropolitan area. The crosswind runway 11-29 was also extended from 3,800 ft. x 75 ft. to 4,000 ft. x 75 ft. The runway improvements were celebrated at a ribbon cutting in late September, complete with fireworks and a flyover. These improvements are expected to boost economic development and redevelopment activity in the City by providing another option for transportation and accessibility.
THE NEW GATEWAY TO THE KANSAS CITY METRO
• 5,501 ft. grooved runway • Easy access to Kansas City • 40,000 sq. ft. indoor heated hangar • 4,000 ft. crosswind runway • Full service FBO
In 2017, design work also began for the relocation of Taxiway Alpha and the construction of 28 replacement T-hangars which are expected to be complete by fall 2018.
• Fuel volume discounts • Full-time concierge service • Pilot’s lounge • Crew cars
Animal Control Animal Control has put special emphasis this year on finding forever homes and rescues for the hundreds of senior dogs brought into the shelter. Senior dogs are particularly hard to place because they can possess a myriad of medical problems ranging from minor wounds to more severe long-term issues. By partnering with several rescue organizations over a 10-month period, over 100 dogs were adopted into different rescues and families throughout the United States including South Dakota, Colorado, Iowa, Nebraska, Minnesota, Wisconsin and Texas. Three dogs even traveled to Canada to meet their family! The rescue organizations have many resources and are able to provide transportation to help the animals reach their forever homes. In some instances, chains of families transport the animals hundreds of miles and some rescue groups are able to fly the dogs to their destination. Animal Control will continue to work with rescue groups in 2018 to expand the adoption network.
Volunteer Hours
Adoption Rate
Adoption Events Attended Page 10
Impounded Wild & Domestic Animals
DEPARTMENT & DIVISION HIGHLIGHTS Central Building Services Central Building Services completed 175 work orders and responded to numerous email maintenance and repair requests. By utilizing the expertise of in-house building services staff, the City recognizes significant savings and the 18 city-owned facilities are kept in excellent working condition. Office space on the second floor of City Hall (formerly occupied by the Water Utilities) was designed and reconfigured by Central Building Services to meet the operational needs of the new Creative Services Division. Central Building Services is currently in the process of upgrading the 17 year-old energy management controls system at the Maintenance Facility. The new controls upgrade will allow the system to run more efficiently, which will prolong the life of the HVAC system and result in a lower energy bill.
Development Services Development Services reorganization progress continued with the hiring of an Assistant Director of Plan Services and an Assistant Director of Field Services. With increased development activity, these roles will provide the oversight needed to maintain excellent customer service levels. With many new staff members and training needs in recent years, staff began documenting and developing standard operating procedures (SOP’s) to serve as training guides on business and development-related processes. The SOP’s have also allowed staff to revisit and redefine processes in order to ensure practices are efficient and up-to-date. One major accomplishment of 2017 was reducing the department’s Insurance Services Office (ISO) rating from a level 4 to a level 3 for commercial, saving taxpayers money on their insurance premiums. Initiatives for the department in 2018 include: (1) creating a Quality Housing Program, which would further define basic maintenance and housing requirements throughout the city, (2) evaluating the 2018 editions of the International Code Council (ICC) model codes for modification and adoption and (3) beginning the process of implementing technology enhancements such as moving inspection scheduling, permitting and licensing online. Economic activity remained strong in 2017, as residential construction saw an increase in single-family homes with 391 building permits issued. Luxury multi-family housing contributed to additional increases in residential development with 308 apartment units and 6 duplex units being permitted. Significant projects over 50,000 square feet include Summit Square Apartments and the remodeled B&B Theatre off Douglas. With activity remaining high and many large projects in the pipeline, 2018 expects to be a busy year.
Development Services Applicant Meeting
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Fire As an “all-hazards” response agency, the Lee’s Summit Fire Department (LSFD) is committed to providing the highest level of service to protect lives and property. LSFD completed 2017 with a record demand on services; responding to 10,387 calls. In addition to responding to calls, the department provided a number of non-emergency services primarily related to fire prevention and development. Even with the demands of a growing community, the department still strives to improve the quality and efficiency of the services provided through a philosophy of continuous improvement.
“The Lee’s Summit Fire Department continues to improve and serve with “PRIDE”; Professionalism, Respect, Integrity, Duty and Excellence – our citizens deserve nothing less.”
In 2016 voters approved a “No-Tax Increase” General Obligation Bond to fund public safety improvements. In 2017 those improvements were in progress or completed. A) Eighty-five complete sets of self-contained breathing apparatus (SCBA) were placed in service throughout the department. This included additional spare air cylinders, compressors and compressor upgrades, and thermal imaging face masks that allow firefighters to see through smoke. This project came in under budget. B) With money saved from the SCBA, exhaust filtration systems were installed in all existing fire stations (with the exception of Station No. 3). The filtration systems in the garages remove diesel emissions from fire trucks and ambulances, providing for cleaner air for fire personnel in the building. This is also part of the department’s cancer reduction initiative. C) The replacement of Fire Station No. 3 at NW Pryor Road and NW Shamrock is moving forward. The process of designing the building is underway, with construction anticipated to begin in the last half of 2018.
self-contained breathing apparatus (SCBA)
D) The radio system upgrade is underway that will bring all Lee’s Summit public safety departments up to current FCC standards and include Lee’s Summit in the Metropolitan Area Regional Radio System (MARRS), improving communications within our City and our neighboring public safety agencies. A radio vendor has been selected to design and build out the system with tentative installation by the end of 2018. Progress was made to meet the increasing demand for emergency medical services by placing a sixth full-time ambulance in service at Fire Station No. 6. As a result of providing and supporting quality fire protection service, the City and LSFD saw an improvement in its Insurance Service Organizations (ISO) Public Protection Classification rating from a 3 to a 2. This is a measure of fire department services and helps insurance underwriters determine insurance rates.
EMS w/transfers
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Fire
HazMat
Rescue
DEPARTMENT & DIVISION HIGHLIGHTS Finance
Fleet
During 2017, the Finance Department facilitated the sale of $14.6 million in General Obligation debt for public safety improvements. Moody’s Investors Service improved the City’s credit rating to Aaa enabling the bonds to be sold with an average interest cost of 1.5036 percent. The department also assisted with an advance refunding of Tax Increment Financing bonds connected to the Summit Fair shopping center resulting in interest savings of approximately 1.89 percent. Both the City’s Procurement Policy and Investment Policy were updated and presented to the City Council for adoption. The Procurement Policy included increased thresholds for bidding requirements. The Investment Policy was updated based upon changes to the State Treasurer’s Model Investment Policy. Staff worked alongside IT staff to implement a major upgrade to the Infor Enterprise Software System. The transition of the EMS Ambulance billing function from the Fire Department to the Finance Department was completed.
Fleet is in the process of working with Public Works to bid out the design and build of a central fuel site that will be located at Douglas and Main Street. The new fueling site will serve all city vehicles including public safety. Efforts are underway to determine the cost to remove the previous central fuel site located behind Fire Department headquarters. Land will be processed and replaced according to state and federal regulations with minimal disruption to the Fire Department. Estimated completion date for removal of the current site is fall 2018. Fleet continues to work with vocational learning institutes in the metro area to encourage and grow the number of students looking for a career in the Fleet Services field. Using the Vehicle and Equipment Replacement Program (VERP), Fleet continues to evaluate each city vehicle to determine the vehicle’s optimal life cycle and the most cost effective replacement.
The City received the Government Finance Officers Association Certificate of Achievement in Financial Reporting for the 39th consecutive year.
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Information Technology Information Technology Services (ITS) was recognized as a leader in digital technology with the 2017 Digital Cities Survey award. The award was the result of the department’s ongoing efforts to maximize the efficiency and effectiveness of the technology investments used by City staff and the public. ITS conducted an internal audit of city-owned cell phones and data plans which included an analysis of usage patterns and department needs to ensure the usage of proper phone plans. In many cases, audit recommendations increased services while decreasing costs. Pooled plans were developed, some cell phones were eliminated, and the bill payment process was streamlined to create further savings for the City. The movement to mobile technology continued in 2017. Both the Water Utilities and Public Works departments rolled out new iPad based mobile mapping solutions. Water Utilities is using these tools to review online up-to-date mapping, replacing the need to comb through old and potentially inaccurate paper maps. The mobile devices allowed for the adoption of a fully digital workflow for work orders, service requests, and inspections using CityWorks. Public Works supervisors are using CityWorks on the iPads to create efficiencies in the customer response process. The time between a citizen request and work order has been shortened and work orders can now be created on site eliminating the need to take notes in the field and transcribe once back in the office. With the ever-present danger posed by hackers and cyber criminals, cyber security training has been added to required safety training for all staff. The training includes strategies on how to identify phishing emails, potential ransomware attacks and other common threats. These tools can make staff more cyber savvy at work and at home.
Law The Law Department continues to provide an increased level of litigation coverage and general municipal law coverage by internal Law Department lawyers. The department is now able to provide effective representation for most claims filed against the City. This includes civil rights, collections, eminent domain and other types of cases. As previously predicted, the handling of condemnation cases has continued to grow and all such cases have been handled in house for the last two years. We expect this to continue for the near future. The Law Department will continue efforts to reduce costs associated with property and liability insurance through internal claims and litigation management and by utilizing in-house litigation capabilities. Finally, the Law Department continues to expand and implement the role of Contract Compliance Manager and expects to conclude the multiyear effort to create a system to track all contracts entered into by the City.
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iPad based mobile mapping solutions in use.
DEPARTMENT & DIVISION HIGHLIGHTS Municipal Court Lee’s Summit Municipal Court spent the past year continuing to meet the needs of the court customer emphasizing transparency and user friendliness. All court records, court dockets, and court calendars are now available online through Missouri Case.Net. Court customers also have several options when it comes to making payments. Payments can be made online through Case.Net, a private vendor or in person. The Municipal Court will begin exploring additional debt collection options in the coming year. By direction of the Office of the State Courts Administrator, the Court will begin to move toward participation in the updated court management system Show Me Courts. This system will enable the Lee’s Summit Court to become an e-filing/paperless court.
Planning and Special Projects Planning and Special Projects (PSP) continues to manage and monitor the City Comprehensive Plan for potential updates necessary to provide a roadmap for future development serving Lee’s Summit citizens. A draft of proposed amendments was completed by staff in preparation for public comment and eventually, public hearings in 2018. PSP manages the Block Grant Program from HUD providing needed funding opportunities to benefit the low and moderate income population through many service organizations as well as providing funds for the Minor Home Repair and First-Time Home Buyer Programs. Work was completed for the annual 2017-18 Annual Action Plan which sets the course for carrying out the Block Grant Program and the 2016-17 “CAPER” (Consolidated Annual Performance and Evaluation Report), which reports out the accomplishments for the year. Design Standards were adopted for the EnVision LS Master Development Plan - the 175 acres around the new M-291 and 50 Highway interchange. A portion of the proposed West Pryor Village Master Development Plan was rezoned but still waiting on approval of the overall development plan and draft Design Standards. Major initiatives included preparing the Unified Development Ordinance for placement on the MuniCode platform for web browser ease of use. This effort will be continued in 2018 given the large scope of the project. Another initiative included work toward the Bronze “Awareness Level” for the Communities for All Ages program through the Mid-America Regional Council (MARC). The City achieved bronze level and work continues toward the silver and gold levels which are expected in the fall of 2018. This program seeks to meet the needs of the very old, the very young and everyone in between, in essence, to become more “age friendly.” Lee’s Summit awarded the Bronze level recognition by the Mid-America Regional Council
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Parks and Recreation Over 1 million people participated in or visited a Lee’s Summit park, facility, special event, or program in 2017. With 42 full-time employees and more than 400 part-time employees, Lee’s Summit Parks and Recreation (LSPR) continues to provide outstanding parks and recreation services funded by the 16 percent property tax, ¼ sales tax and participant fees and charges.
Hartman Park • $185,000 renovation including new playground equipment
This year, LSPR had 3,329 volunteers contributing more than 98,000 hours, which provided an estimated $2,400,000 in value to the community. The citizens of Lee’s Summit also overwhelmingly (78 percent) passed a sales tax ballot issue to continue a 1/4 cent sales tax to support parks and recreation projects for 15 years, beginning in April 2018. The new sales tax is projected to generate over $52 million and will contribute to the development of several projects throughout the community. In April 2017, Tom Lovell retired as the administrator of parks and recreation after a distinguished 38-year career and former Assistant Administrator Joe Snook was appointed interim administrator of parks and recreation.
Legacy Park • Practice and tee ball fields completed • Added 8 batting/pitching tunnels • Added 8 infield skins • Added tee ball field for girls’ softball Sidewalks • Sidewalk connecting Harris Park to Downtown Lee’s Summit between 4th and 5th streets completed
Public Works - Engineering In spring 2017, OATS transit services expanded within Lee’s Summit with reduced fares, increased hours of operation, and an expanded service area. The service operated by OATS, under contract with the City, provides place-to-place transit trips for any person, regardless of age or ability, and for nearly any purpose. Several construction projects were completed in 2017: Tudor Road Bridge connecting Ward Road to Douglas Street over the Union Pacific railroad tracks; Jefferson Street from Stuart Road to Persels Road; Todd George Parkway shoulders; and repairs to the Chipman Road and SW Main Street bridges. In spring 2017, voters approved the continuation of the ½ cent Capital Improvement Sales Tax for an additional 15 years which will provide funding for future road, transportation-related, and stormwater projects. The City of Lee’s Summit celebrated the groundbreaking of the 291/50 Interchange project in partnership with the Missouri Department of Transportation (MoDOT); the project is expected to be complete in 2018. Another City and MoDOT project – the Blackwell Interchange – opened fall of 2017.
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291/50 Hwy Interchange Groundbreaking Ceremony
Police It was a challenging year for the Police Department due to the untimely deaths of Police Officer Thomas Orr and Detective Shawn Rath; both dedicated public servants who served the community with pride. The Police Department continued work on joining the Kansas City Metropolitan Area Regional Radio System (MARRS) to improve radio communications within Lee’s Summit and with our regional partners. This will better prepare Lee’s Summit to handle large scale emergencies. The system was staged in Chicago in December and development work will proceed throughout 2018. The Police Department instituted new community outreach programs to continue to build a positive, transparent relationship with citizens which is vital to reducing crime and disorder. Field officer training was enhanced with the implementation of a computer-based tracking system. An additional position was added to Detention to handle increased demands for service and to maintain a safe and secure environment. The Police Chaplain Program was also expanded to better
Water Utilities In December Water Utilities opened the Water Utilities Service Center, which consolidated the entire department into a single location, centralizing services and improving operational effectiveness -- meaning better services for current and future customers. The 38,000 square-foot building features plenty of office and workspace for all current and anticipated employees, equipment and material storage facilities, an equipment wash bay and fuel dock, and other accommodations that will help the departmental staff provide efficient and reliable water and sewer services for years to come. This $14.6 million project was fully funded through utility rates without the issuance of debt. In addition to the completion of the Service Center, Water Utilities has continued to invest in infrastructure growth, maintenance and rehabilitation. Water lines were upgraded
reflect the community and to provide support for both the department and citizens during times of need.
Procurement and Contract Services Procurement and Contract Services partnered with the Lee’s Summit Chamber to host “How to do Business with the City.” The focus of the event was to educate local businesses about the City’s public procurement process. Twenty-four businesses attended the presentation which included information on registering as a vendor, the bid process and purchase order/contract information. Procurement and Contract Services created a new Procurement Policy with participation from every City department. The new policy was presented to and passed by City Council in October. Training for staff on the new policy will be conducted in 2018 as well as added to the onboarding process for new hires. Through the utilization of City solicitation processes and utilization of cooperative contracts, Procurement and Contract Services has demonstrated a three-year average of $2,251,329 in cost avoidance/savings.
going east along U.S. 50 Highway from Blackwell to Harris roads in order to meet the projected demands of future growth and to increase the level of service for the existing customers located in the southeast portion of the service area. Additionally, Water Utilities has continued with the Neighborhood Water Main Replacement Program, which has replaced more than 14 miles of water main in various areas around the City since 2008. Another 16 miles is scheduled for replacement through 2020. On the wastewater side, the Community Sewer Line Rehabilitation program has lined another seven miles of sanitary sewer lines throughout the community and an additional number of undersized small neighborhood sewer mains have been replaced to increase capacity and level of service. The department has also increased efforts to test and replace aging water meters – replacing nearly 2,500 in 2017 – in order to increase meter and billing accuracy.
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Audit Recommendation
Pursuant to Article IX, Section 2.552 of the City Code of Ordinances, the City Manager is required to prepare and submit to the City Council a written recommendation of any matter relative to the City government or any City operation or program the City Manager deems appropriate for a management/ performance review for consideration by the City Council for possible funding in the next fiscal year budget. To this extent, the City Manager has recommended three areas to determine best practices through a performance audit process: General Administration Charges to Enterprise and Special Revenue Funds (FY19/20) During the annual budget review and presentations, “General Administration” costs are assigned to certain departments. This is a method used to better account for shared support activities. Typically, these activities listed below, are important resources used by all operational departments. Some of these departments have funding resources, such as user fees, water rates, and designated property or sales taxes. These departments are Water Utilities, Airport Operations, and Parks and Recreation. General administration costs are calculated for these departments to account for the use of resources that should not be the burden of the General Fund revenues. These support functions include: • Human Resources • Legal Advisory Services • Financial / Accounting / Procurement Services • General Municipal Administration Services/ Legislative Processes / Liability Coverages The proposed analysis would review the existing formulas and methods of determining general administration charges and recommend any new methodologies that improve the accuracy of this cost allocation program. Based upon this information, the City can determine what modifications, if any, should be made to the general administration cost allocation program. Replacement Funds Starting in 1985/86, the City realized that instead of budgeting for “peaks and valleys” regarding the replacement costs of city vehicles, such as Fire Pumpers, Police Cruisers, 1-Ton Trucks, etc., it would be in a better position if a fund was created based upon the annual incremental replacement costs of the vehicle fleet. Over time, this has allowed the City to normalize fleet replacement costs and make business decisions regarding optimum life cycles of city vehicles. This single concept has been expanded to many other critical equipment and structural needs. With humor, these funds are referred to as “erps” or equipment replacement programs (not to be confused with “burps”). Today, the following equipment replacement programs or “erps” are used to provide a stable and predictable approach for almost all major purchases that are critical assets to municipal service delivery: • VERP - Vehicle Equipment Replacement • MERP - Management Equipment Replacement (Information Technology) • BERP - Building Equipment • PSERP -Public Safety Equipment • WSERP - Water Sewer Equipment Internal Services Charges Internal Services is a cost tracking mechanism that provides an accounting of operational costs for all city departments. The City of Lee’s Summit is a hybrid of “General Fund” and “Enterprise Fund” operations. A General Fund operation is used to fund activities typically considered core, basic municipal services, such as Public Works, Police Services, Fire and Emergency Management Services, Code Administration, etc. Enterprise operations are activities that have specific revenue sources. An example of an Enterprise Fund would be Water Utilities that is primarily funded with revenues from water and sewer rate charges to users. An internal financial mechanism is used to assign costs that are shared with all municipal operations, Page 18
regardless if the operation falls within the General Fund or is an Enterprise Fund. This mechanism is called “internal services.” Essentially, an operational cost is tracked and assigned for centralized activities such as Technology Services, Building Services and Fleet Services. The goal is to show an accurate financial statement regarding the operations of each department and to be reimbursed for the services provided to the Enterprise Fund departments. Both of these financial tools, Replacement Funds and Internal Service Charges, have served the City very well both in building a stable funding program for large expenditures, and showing a “true cost” accounting of various municipal operations. Over time these tools have been adjusted based upon life cycle experience and cost allocation formulas. The cost assignments for both of these programs are sizable when looking at the non-personnel portions of each department. As the City continues to provide the best work environment for its employees - by providing quality buildings, equipment, and internal services - it finds itself challenged by the growth of personnel costs. It would be beneficial to the organization to conduct an independent performance audit of each of these three financial programs (General Administration Charges, Replacement Funds and Internal Services Charges) to determine if the best cost-allocation formulas and cost-recovery methods are being used. The targeted outcome is to provide a higher level of assurance to departmental leaders and specialty revenue department managers that these programs are accurately implemented. It is anticipated that all three of these performance areas may be included in a single scope of work for a consulting firm with expertise in these fields. Although the findings will not be beneficial to the FY 2018-19 Operating Budget, the organization would intend to implement any approved enhancements for the FY 2019-20 Operating Budget.
Yours Truly,
220 SE Green Street | Lee’s Summit, MO 64063 | 816.969.1000 | cityofLS.net