Olathe City Council Meeting and Planning Session - July 7, 2026

The Olathe City Council convened on July 7, 2026, at 7:00 PM for a regular meeting followed by a planning session. Key actions included tabling a proposed switch of the city's self-funded medical and pharmacy claims administrator to Aetna, approving the renewal of the Marathon Health onsite clinic contract, adopting ordinance updates for procurement and the major street map, and receiving the City Manager's 2027 proposed budget presentation.

Consent Calendar

The Council approved the Consent Agenda (items A through K) unanimously (7-0). This included the approval of meeting minutes, license renewals, final plats (Lone Elm Commerce Center Sixth Plat and 175 Commerce Center East), change orders for the 119th Street Improvements and Pioneer Park projects, an agreement with Johnson County for watershed studies, additional contract spending authority, renewal of pump/mixer/motor services, and a defibrillator service plan for the Fire Department.

Public Comments & Testimony

Yvonne Frigerio (Vice President of Account Management, Cigna Healthcare) spoke on behalf of Cigna during the General Issues and Concerns of Citizens segment. She highlighted the 13-year partnership and a medical trend of 0.04% in 2025, advocating for the retention of Cigna as the city's health plan administrator.

Discussion Items

Public Hearing Major Street Map Update (Ordinance 26-35): The Council held a public hearing on amending the Olathe Municipal Code Section 10.08.010 regarding the Major Street Map, which had not been updated since 2016. No public comments were presented. The hearing was closed and the ordinance was approved unanimously (7-0).

Self-Funded Medical and Pharmacy Claims (Contract with Aetna): Matt Filing of Lockton presented the results of a marketing process that narrowed the selection to Cigna and Aetna. Aetna was recommended based on financial savings, enhanced employee wellness programs, and lower provider disruption (Aetna's network covering an estimated 98.4% of current in-network claims compared to Cigna's estimated 89.2% coverage). Mayor Bacon questioned the potential disruption. Councilmember Denault asked about specific employee advantages and whether employee surveys were conducted. City Manager Susan Sherman stated no formal survey was conducted, emphasizing the Council's role in ensuring the health fund's long-term sustainability. Councilmember Creighton expressed the need for more time, a sentiment echoed by Councilmember Vakas. Outcome: The Council voted unanimously (7-0) to table the item to the July 14, 2026, special meeting.

Marathon Health Onsite Clinic Renewal: Hollie Allen of Marathon Health reported on 10 years of results, including nearly 30,000 visits, 79% of patients improving their health biometrics, 97% patient satisfaction, and savings of over $3,500 per year in claims costs for engaged patients. The Council strongly praised the program's performance. Outcome: The Council unanimously approved (7-0) the contract renewal for up to two one-year terms, which included two new no-cost services.

Procurement Policy Update (Ordinance 26-36): The Council approved amendments to align solicitation requirements for public improvement project contracts with general procurement policies. Outcome: Approved unanimously (7-0).

Planning Session Reports: The Council accepted reports on the 2027 Community Development Block Grant (CDBG) funding recommendations, a voluntary annexation request for approximately 70.99 acres north of W. 175th Street and U.S. 169 Highway (ANX26-0002), and proposed amendments to the Public Offense Code and Traffic Ordinance. On the annexation, Councilmember Creighton inquired about zoning conflicts with adjacent Spring Hill properties, which Chief Community Development Officer Chet Belcher confirmed did not exist. Councilmember Felter highlighted a change to make rules for UTVs equal to those for golf carts, thanking the City Attorney's office for the rapid turnaround.

2027 Proposed Budget Presentation: City Manager Susan Sherman presented the proposed $468 million operating budget (a 4.6% increase over the previous year's budget). Key features included no increase in the property tax mill levy, a reduction in the assumed property tax growth rate to 3%, and strategies to address a structural imbalance through a freeze on general fund positions, delaying some capital projects, and limiting spending increases to essential items. Councilmembers Felter and Creighton thanked staff for constraining budget growth. Councilmember Vakas and Mayor Bacon reminded the public of upcoming budget workshops and opportunities for input.

Key Outcomes

• Tabled: The vote on a final contract award for self-funded claims administration (Aetna) was tabled to July 14, 2026 (7-0).
• Approved: Ordinance 26-35 (Major Street Map) (7-0).
• Approved: Ordinance 26-36 (Procurement Policies) (7-0).
• Approved: Marathon Health onsite clinic contract renewal (7-0).
• Approved: Consent Agenda (7-0).
• Presented: 2027 Proposed Budget ($468M, no mill levy increase).
• Next Steps: Budget workshops begin July 14, 2026. Final budget adoption scheduled for September 15, 2026.