Derby City Council

CITY OF DERBY MEETING OF THE CITY COUNCIL REGULAR MEETING September 9, 2014 6:30 P.M. Our mission is to create vibrant neighborhoods, nurture a strong business community, and preserve beautiful green spaces. 1. CALL MEETING TO ORDER 2. FLAG SALUTE 3. INVOCATION-- Pastor Brad Beets, Pleasantview Baptist Church 4. ROLL CALL 5. CONSIDERATION OF MINUTES 5. A. Regular Meeting Minutes - August 26, 2014 Recommend a Motion to: Approve the regular meeting minutes of August 26, 2014, as presented. 6. PUBLIC FORUM 7. PROCLAMATION 7. A. Proclamation for Suicide Prevention Week 8. NEW BUSINESS 8. A. Issuance of Industrial Revenue Bonds to Cynergy Enterprises LLC for Clearwater Engineering, Inc. Recommend a Motion to: 1  Adopt an ordinance authorizing issuance of taxable industrial revenue bonds in an amount not to exceed $850,000 and authorize the mayor and city clerk to sign all documents related to the bonds. 8. B. Defeasance of General Obligation Bonds Series 2010-B Recommend a Motion to: Approve an ordinance directing defeasance of the bonds as presented. 8. C. Agreement to Provide Services to the Derby Public Library Recommend a Motion to: Authorize execution of the agreement with the Derby Public Library. 8. D. Updates to the City Council's List of Priorities Recommend a Motion to: Approve the Council's updated list of priorities. 9. CONSENT AGENDA Recommend a Motion to: Approve the Consent Agenda. 9. A. Delegates to Annual League of Kansas Municipalities Meeting 9. B. Sanitary Sewer and Waterline Improvements to serve The Oaks Addition - Phase 9 10. EXECUTIVE SESSION 11. ADJOURNMENT 2 City Council Meeting 5. A. Meeting Date: 09/09/2014 Submitted By: Karen Friend, City Clerk Agenda Category: New Business Subject: Regular Meeting Minutes - August 26, 2014 Recommend a Motion to: Approve the regular meeting minutes of August 26, 2014, as presented. Attachments Regular Meeting Minutes - August 26, 2014 3  CITY OF DERBY MEETING OF THE CITY COUNCIL REGULAR MEETING August 26, 2014 6:30 P.M. Our mission is to create vibrant neighborhoods, nurture a strong business community, and preserve beautiful green spaces. 1. CALL MEETING TO ORDER 2. FLAG SALUTE 3. INVOCATION--Council Member Tom Haynes 4. ROLL CALL: COUNCIL MEMBERS PRESENT: WARD I Darrell Downing, Randy White WARD II Jim Craig, Vaughn Nun WARD III Cheryl Bannon, Chuck Warren WARD IV Tom Haynes, Mark Staats 5. CONSIDERATION OF MINUTES 5. A. Regular Meeting Minutes - August 12, 2014 Recommend a Motion to: Approve the regular meeting minutes of August 12, 2014, as presented. Moved by Jim Craig, seconded by Cheryl Bannon, to approve the regular meeting minutes of August 12, 2014, as presented. Vote: 8 - 0 6. PUBLIC FORUM 7. PRESENTATIONS 7. A. 2015 Derby BBQ Festival 4 August 26, 2014 Page 1 of 8  Jennifer Keller, Director of Community Marketing, presented information about the Derby Barbeque Festival. We have a new logo and have moved the date to the second weekend of September. We have added pig races, a photo booth, and a rock climbing wall. We have improved the kids area with some inflatables and face painting, caricature artist and henna tattoos. The best part is there is free admission. There is a new Anything Bacon contest. With the help of The Derby Informer, we have received an increase in sponsorship dollars. We will have a large hospitality tent in front of the stage where people can eat and drink and enjoy the music in the shade. We have an expanded partnership with The Derby Informer, Clear Channel Radio and The Wichita Eagle. We have sent out postcards to residents in the Derby zip code to remind people about the upcoming event. Flyers are going home with USD 260 elementary students to promote the cookie contest. We have increased our social media contacts as well. She provided an overview of the schedule of events. We have two bands, Kentucky Gentlemen and Linnaberry Wine who will perform on the mainstage. There is a car show and the money raised goes to the Kansas Food Bank and to McConnell. We increased the number of plates from 500 to 1,000 for the People's Choice Cook-off. There will be three barbeque food vendors: Rip's Rib Shak, Brickyard BBQ and Park-n-Pork BBQ for attendees to purchase barbeque. The Lions Club will have a beverage tent and the money raised will go to the McConnell Family Readiness Program. Sig's Gourmet Butcher Ship is sponsoring the Backyard BBQ cook-off. Meritrust is sponsoring the bacon contest and cookie baking contest. She thanked all of the sponsors and volunteers. Council Member White said he understands the decision to cancel the Friday night events to not compete with the local football game. Moving the hospitality tent in front of the band is a good idea. Council Member Bannon asked what time the bands are scheduled to play. Mrs. Keller replied the bands will be playing from 10:00 a.m. until 3:30 p.m. The Kentucky Gentlemen are scheduled to play first and then Linnaberry Wine will have two sets. Mayor Avello said it was a good idea to increase the number of plates to 1,000. Mrs. Keller said last year we ran out of plates early so we increased the number this year. 7. B. Key to the City to Ken Mulanax Mayor Avello presented the Key to the City to Ken Mulanax. Mr. Mulanax has 5 August 26, 2014 Page 2 of 8  Mayor Avello presented the Key to the City to Ken Mulanax. Mr. Mulanax has volunteered for the city for 25 years. He served on the Library Board from 1990 to 1998; the Planning Commission from 1998 to 1999; the City Council from 2000 to 2007 and then back to the Planning Commission from 2007 to 2009. He served on the Derby Recreation Commission Board from 2010 to 2014. Council Member Bannon said she served with Mr. Mulanax for four years on the City Council. He served on the Library Board during some very pivotable years. She thanked him for his years of service and dedication to this city. Mr. Mulanax thanked the Mayor and Council. The 25 years have gone by so fast and he volunteered his service because he loves Derby. He was a part of creating many good things for this community. 8. NEW BUSINESS 8. A. Final Plat of Ridge Point Commercial Addition Background: The City has received a request to re-plat 9.3 acres of property located at the southeast corner of Patriot Ave. and Buckner St. to facilitate commercial development of the land. The area proposed for platting is all of Lot 1 and Lot 2, Block A, Ridge Point 4th Addition. The re-plat is proposed to divide the land into 6 smaller lots. The final plat was recommended for approval by the Planning Commission (8-0) on July 17, 2014. Minutes of the Planning Commission meeting are attached. As part of the platting process, the applicant has submitted financial guarantees for required infrastructure improvements to serve the development. Petitions were submitted for sanitary sewer, stormwater sewer, sidewalks, a right turn lane on Buckner St., and an accel/decel lane on Patriot Ave. The applicant has submitted a developer's agreement guaranteeing installation of public improvements and addressing maintenance of the property. Financial/Sustainability Considerations: Approval of the final plat will facilitate development of the property for commercial uses, ultimately increasing the City's tax base. Petitions guaranteeing construction of the required public improvements have been submitted by the developer. 6 August 26, 2014 Page 3 of 8  The petitions total $334,000 which will be paid entirely by the improvement districts. Resolutions for the required improvements are attached. The property being platted is subject to existing special assessments for a previously constructed project. An ordinance reassessing the existing special assessments is needed to specify how the existing assessments will be levied against the newly configured lots. The re-spreading of the existing special assessments will not result in any additional costs to the city-at-large. Legal Considerations: By approving the proposed plat, the Planning Commission determined that it conforms to Kansas law and the City's Subdivision Regulations. The resolutions for the required improvements were prepared by the City's bond counsel, Gilmore & Bell, P.C. An ordinance reassessing the original assessments is needed to specify how existing special assessments will be spread to the newly configured and re-platted property. Policy Considerations: The proposed plat of Ridge Point Commercial Addition is consistent with the City's Comprehensive Plan. The applicant has complied with all requirements of the City's Subdivision Regulations. The petitions and corresponding resolutions were prepared in accordance with the City's Policy on Municipal Financing of Public Improvements. Recommend a Motion to: Approve the final plat of Ridge Point Commercial Addition; adopt resolutions for construction of public improvements to serve the addition; adopt an ordinance to re-spread existing special assessments; authorize the Mayor to sign and direct staff to record the plat, resolutions, developer's agreement, and re-spread agreement. Cody Bird, City Planner, presented the staff report. Council Member Bannon asked if the 10-foot utility easement at the rear of the property and inset from that easement is a 5-foot wall easement. Are we creating a dead area in between the wall and the adjacent property owners property line? Mr. Bird said that was an existing condition. The wall was constructed outside of that easement. It was done intentionally, and the additional 10 feet is currently maintained by the existing residential property owners. The property 7 August 26, 2014 Page 4 of 8  currently maintained by the existing residential property owners. The property is still owned by the applicant of this replat. Council Member Bannon asked if these property owners continue mowing this area, does this create an issue for adverse possession in the future. Mr. Bird replied he is not prepared to answer that question. Jacque Butler, City Attorney, said adverse possession is 15 years and there are some other conditions to consider. Mowing the property would not necessarily meet the criteria. Mayor Avello asked if we received any citizen complaints about lighting for this site during any of the Planning Commission meetings. Mr. Bird said lighting will be discussed at site plan review. Moved by Cheryl Bannon, seconded by Tom Haynes, to approve the final plat of Ridge Point Commercial Addition; adopt resolutions for construction of public improvements to serve the addition; adopt an ordinance to re-spread existing special assessments; authorize the Mayor to sign and direct staff to record the plat, resolutions, developer's agreement, and re-spread agreement. Vote: 8 - 0 9. CONSENT AGENDA Recommend a Motion to: Approve the Consent Agenda. 9. A. Legislative Liaison Services Background: On August 28, 2012, the City Council approved an agreement with Schneider Public Strategies, LLC to provide legislative liaison services for the City of Derby. This agreement expires August 31, 2014. The use of these services over the past two years has been beneficial because of the limited time staff has to devote to keeping up with current happenings in Topeka during fast-paced legislative sessions without neglecting other duties. There is no substitute to having a person in Topeka to communicate one-on-one with legislators at key times to explain the effects of legislative actions on Derby. The proposed agreement would extend these services through August 31, 8 August 26, 2014 Page 5 of 8  The proposed agreement would extend these services through August 31, 2015. Minor changes from the previous agreement include: A statement that both parties agree that the Consultant will not provide legal services and/or advice to City. The term will be for only one year with no renewal clause. In January 2014, Scott Schneider, in partnership with Jason Watkins, founded Watkins and Schneider Consulting, LLC. Mr. Schneider will continue to be our liaison and provide the following services: Monitor state legislation that affects or is of interest to the City. Advance the City's legislative agenda. Make routine reports to the City and coordinate with City staff. Financial/Sustainability Considerations: The fee for these services continues to be $19,000. Legal Considerations: The City Attorney has reviewed the agreement and approved as to form. Recommend a Motion to: Authorize execution of an agreement with Watkins & Schneider Consulting, LLC in substantially the form presented. 9. B. Request for Use of Street Rights-Of-Way Background: The Derby High School Student Council has requested the use of city street rights-of-way to hold its annual Homecoming Parade on Thursday, September 18, 2014 at 6:30 p.m. The parade will start at the corner of Market and Westview and proceed west on Market Street to Georgie, north on Georgie to Madison and east on Madison to the stadium parking lot. This route is identical to the route used last year. Financial/Sustainability Considerations: The City will supply police patrol, barricades and traffic cones. Legal Considerations: The Council is within its legal purview to allow usage of streets and public rights-of-way for such uses. Recommend a Motion to: Approve the request of the Derby High School Student Council for their parade. 9 August 26, 2014 Page 6 of 8  parade. 9. C. Assessment Ordinance for Nuisance Abatement Background: City ordinance requires debris be removed from properties and lawns be maintained at 10 inches or less to protect the public health and safety. The City has incurred costs in abating nuisances found to exist upon certain properties. This ordinance includes 9 properties, of which 2 are owner occupied, 3 are vacant and 4 are possibly in foreclosure. Each owner of record at the time the charges were incurred was sent notification that the City Council will consider assessment of the charges by ordinance. Ordinances are brought before the City Council for action as soon as possible so that recovery of the City's costs can occur from the owner of record at the time of assessment. Because affected lots are often in foreclosure or in process of being sold, timely assessment is important to an equitable recovery of City funds. Financial/Sustainability Considerations: Costs total $1,380, which included the City's mowing and trash removal costs plus administrative fees. Legal Considerations: City ordinance authorized staff to mow excessively tall vegetation and remove trash when owners fail to do so. Staff seeks to collect reimbursement through informal efforts to avoid the need for formal remedies. Charges not timely paid may be assessed against the properties on which the work was performed. Recommend a Motion to: Adopt an ordinance levying a special assessment upon certain properties the costs incurred by the City of Derby in abating nuisances found to exist thereon. Kathy Sexton, City Manager, presented the staff report. Moved by Jim Craig, seconded by Darrell Downing, to approve the Consent Agenda, as presented. Vote: 8 - 0 Mayor Avello recessed the meeting at 6:50 p.m. to hold the meeting of the El Paso Water Company. 10 August 26, 2014 Page 7 of 8 10. EXECUTIVE SESSION Mayor Avello reconvened the meeting at 7:00 p.m. Moved by Jim Craig, seconded by Chuck Warren, to recess to executive session for discussion of the following six topics: 1. Discussion of confidential data relating to the financial affairs or trade secrets of second parties, specifically a developer that has recently contacted the city about a potential new public-private opportunity. 2. Discussion of personnel matters of nonelected personnel, specifically the employment agreement with the city manager. 3. Consultation with the City Attorney on the following four matters deemed to be of attorney-client privilege: a. Real property negotiations, b. Municipal Court operations, c. Personnel Matters, d. Interpretation of state statutes. and reconvene the open meeting here in the Council Room no sooner than 8:00 p.m. Vote: 8 - 0 The Council returned from Executive Session at 8:48 p.m. Council Member Craig stated no binding action was taken during Executive Session. 11. ADJOURNMENT Moved by Jim Craig, seconded by Tom Haynes, to adjourn the meeting at 8:49 p.m. Vote: 8 - 0 __________________________________ Dion P. Avello, Mayor ATTEST: ____________________________________ Karen Friend, City Clerk 11 August 26, 2014 Page 8 of 8 City Council Meeting 7. A. Meeting Date: 09/09/2014 Submitted For: Robert Lee, Police Chief Submitted By: Rebecca Likiardopoulos, Management Assistant Agenda Category: Presentation Subject: Proclamation for Suicide Prevention Week Guests: Mr. Rick Burr, a member of the Greater Kansas Chapter of the American Foundation for Suicide Prevention Attachments Suicide Prevention Proclamation 12  Of THE CITY OF DERBY, KANSAS Founded in 1869 WHEREAS, in the United States, one person dies by suicide every 13 minutes; WHEREAS, in our country, suicide is the 3rd leading cause of death for 15-24 year olds and is the 10th leading cause of death for people of all ages; WHEREAS, many of those people who died never received effective behavioral health services, for many reasons including the difficulty of accessing services and the stigma of using behavioral health treatment; WHEREAS, the Suicide Prevention Subcommittee of the Governor’s Behavioral Health Services Planning Council urges that all Kansans:  Recognize suicide as a significant public health problem and declare suicide prevention a statewide priority  Support development of accessible behavioral health services  Acknowledge that no single suicide prevention effort will be sufficient for all THEREFORE BE IT RESOLVED that, I, Dion Avello, Mayor of the City of Derby, do hereby pro- claim September 8th through 14th of 2014, as Suicide Prevention Week in the City of Derby, Kansas and urge all citizens to join in this observance. Mayor, City of Derby 13 City Council Meeting 8. A. Meeting Date: 09/09/2014 Submitted By: Jean Epperson, Director of Finance Agenda Category: New Business Subject: Issuance of Industrial Revenue Bonds to Cynergy Enterprises LLC for Clearwater Engineering, Inc. Guests: David Cool, President, Clearwater Engineering, Inc. Sarah Steele, Gilmore & Bell Background: On July 22, the City Council directed staff to develop a resolution to issue industrial revenue bonds on behalf of Clearwater Engineering, Inc. and schedule a public hearing. The public hearing was held August 12, and the Resolution of Intent and agreement with Clearwater Engineering Inc. for payment in lieu of taxes (PILOT) was approved. The Clearwater Engineering proposal calls for acquisition, remodeling and equipping of the facility at 301 N. River St., which is the former Q Corporation building and land totaling 11.2 acres. As proposed, the incentives would include: A 100% property tax abatement for ten years if performance criteria are met. Taxable industrial revenue bond financing in an amount not to exceed $3,300,000. The applicant has proposed to complete the project in two phases. Phase one consists of acquisition, remodeling and equipping the existing facility, a 20,000 sq. ft. expansion of the facility, and addition of 17 FTE (full-time equivalent) employees by the end of year five of the tax abatement. Phase two involves adding another 34 FTE employees in years six through ten of the tax abatement for a total of 51 new jobs. The property tax abatement would be administered using the PILOT agreement. Clearwater Engineering has agreed to maintain its current employment level of 25 FTE employees plus add at least 17 FTE during years one through five. A review of the company's progress will be conducted at the 5-year mark. If the addition is not constructed, the tax abatement will terminate at the end of year five unless extended by further action of the City. If the tax abatement is extended in years 6-10, the director of finance will conduct an annual review of employment at Clearwater Engineering and report the results to the City Council. The Council will determine if the growth in employment qualifies the project for continued abatement. A schedule of full-time employment is included in the PILOT agreement, 14  A schedule of full-time employment is included in the PILOT agreement, reflecting a gradual increase in employees from 42 in year five, to 76 in year ten. The bond documents include several additional items: An Ordinance authorizing issuance of up to $850,000 of taxable industrial revenue bonds. A Bond Agreement between the City, Fidelity Bank (the Bank) and Cynergy Enterprises LLC detailing the terms of the bonds and the duties of each party. A Guaranty Agreement between Clearwater Engineering Inc., Cynergy Enterprises LLC, David and Diane Cool, individually, and the Bank which defines the obligations of each party in the financial relationship and guarantees payments when due to the Bank. David and Diane Cool, owners of Clearwater Engineering have formed Cynergy Enterprises LLC, which will purchase the property. A Lease between the City and Cynergy Enterprises LLC (the Tenant) providing for rent payments to cover the debt service. A Collateral Assignment of Lease between Cynergy Enterprises LLC and the Bank. An Assignment of Lease from the City to the Bank. Financial/Sustainability Considerations: In issuing the bonds, the City acts only as a conduit for project financing. As the financing conduit, the City has no financial liability in the event the beneficiary does not satisfy the financial obligations of the bonds. These bonds do not contribute to the City's debt load per state statute. These bonds will not affect the City's bond rating or credit rating. The proposed ordinance provides for three series of bonds in an aggregate amount not to exceed $850,000. Costs associated with issuance of bonds will be paid by the Tenant. The Tenant will pay rent to the Bank as an assignee of the City to fully cover bond debt payments. The Tenant will maintain adequate insurance coverage for general accident and public liability, statutory worker's compensation, and all buildings and improvements; as well as performance, payment and statutory bonds for the project. Tenant will also keep the improvements continuously insured against loss or damage for Full Insurable Value throughout the life of the bonds. Tenant, Issuer and the Bank shall all be named on the policies. Legal Considerations: Issuance of IRBs and granting of tax exemptions for economic development purposes are authorized by Kansas law. Bond documents have been prepared by the City's bond counsel, Gilmore & Bell. The City incurs no liability in the event the bonds are not ultimately issued. The tax abatement is not final until approved by the State Board of Tax Appeals. 15 Recommend a Motion to: Adopt an ordinance authorizing issuance of taxable industrial revenue bonds in an amount not to exceed $850,000 and authorize the mayor and city clerk to sign all documents related to the bonds. Attachments IRB Bond Ordinance 16  (Published in The Derby Weekly Informer, September 17, 2014) ORDINANCE NO. ___ AN ORDINANCE AUTHORIZING THE CITY OF DERBY, KANSAS TO ISSUE ITS TAXABLE INDUSTRIAL REVENUE BONDS, SERIES 2014-A, SERIES 2014-B AND SERIES 2014-C (CYNERGY ENTERPRISES, LLC) FOR THE PURPOSE OF THE ACQUISITION AND RENOVATING OF AN EXISTING MANUFACTURING FACILITY; AND AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS IN CONNECTION THEREWITH. THE GOVERNING BODY OF THE CITY OF DERBY, KANSAS HAS FOUND AND DETERMINED: A. The City of Derby, Kansas (the "Issuer") is authorized by K.S.A. 12-1740 et seq., as amended (the "Act"), to acquire, construct, improve and equip certain facilities (as defined in the Act) for commercial, industrial and manufacturing purposes, to enter into leases and lease-purchase agreements with any person, firm or corporation for such facilities. B. The Issuer's governing body finds that it is necessary and desirable in connection with the issuance of the Series 2014-A, Series 2014-B and Series 2014-C Bonds (collectively, the “Bonds” to execute and deliver the following documents (collectively, the "Bond Documents"): (i) a Bond Agreement dated as of the Issue Date of the Bonds (the "Bond Agreement"), among the Issuer, the Tenant and Fidelity Bank, Wichita, Kansas (the "Bank") prescribing the terms and conditions of issuing and securing the Bonds; (ii) a Lease dated as of the Issue Date of the Bonds (the "Lease"), with the Tenant, under which the Issuer will acquire and renovate the Project and lease it to the Tenant in consideration of Basic Rent and other payments; and (iii) an Agreement for Payment in Lieu of Taxes (the "Agreement for Payment in Lieu of Taxes") with the Tenant, under which the Tenant will make certain payments in lieu of taxes for each year after issuance of the Bonds that the Project is exempt from ad valorem taxation. C. The Issuer's governing body has found that under the provisions of K.S.A. 79-201a Twenty- Fourth, the Project purchased or constructed with the proceeds of the Bonds is eligible for exemption from ad valorem property taxes for up to 10 years, commencing in the calendar year following the calendar year in which the Bonds are issued, if proper application is made. The Issuer's governing body has further found that the Project should be exempt from ad valorem property taxes for a period of 10 years, subject to a payment in lieu of taxes for each year of the exemption, as more particularly described in the Agreement for Payment in Lieu of Taxes. Prior to making this determination, the governing body of the Issuer has conducted the public hearing and reviewed the analysis of costs and benefits of such exemption required by K.S.A. 12-1749d. NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF DERBY, KANSAS: Section 1. Definition of Terms. All terms and phrases not otherwise defined in this Ordinance will have the meanings set forth in the Bond Agreement and the Lease. 17  Section 2. Authority to Cause the Project to Be Purchased and Renovated. The Issuer is authorized to cause the Project to be acquired and renovated in the manner described in the Bond Agreement and the Lease. Section 3. Authorization of and Security for the Bonds. The Issuer is authorized and directed to issue the Bonds, to be designated " City of Derby Kansas Taxable Industrial Revenue Bonds, Series 2014-A, Series 2014-B and Series 2014-C (Cynergy Enterprises, LLC)" in the aggregate principal amount of not to exceed $[850,000], for the purpose of providing funds to pay the costs of the acquiring and renovating the Project. The Bonds will be in such principal amount, will be dated and bear interest, will mature and be payable at such times, will be in such forms, will be subject to redemption and payment prior to maturity, and will be issued according to the provisions, covenants and agreements in the Bond Agreement. The Bonds will be special limited obligations of the Issuer payable solely from the revenues derived from the Lease of the Project. The Bonds will not be general obligations of the Issuer, nor constitute a pledge of the faith and credit of the Issuer, and will not be payable in any manner by taxation. Section 4. Authorization of Bond Agreement. The Issuer is authorized to enter into the Bond Agreement with the Bank and the Tenant in the form approved in this Ordinance. The Issuer will issue and sell the Bonds and provide for payment of the Bonds and interest thereon from the revenues derived by the Issuer under the Lease and other moneys as described in the Bond Agreement, all on the terms and conditions in the Bond Agreement. Section 5. Lease of the Project. The Issuer will acquire and renovate the Project and lease it to the Tenant according to the provisions of the Lease in the form approved in this Ordinance. The proposed sublease of the Project to Clearwater Engineering, Inc., a Kansas corporation (the "Subtenant") is approved by the Issuer. Section 6. Approval of the Guaranty Agreement. The form of the Guaranty Agreement dated as of the Issue Date of the Bonds among the Tenant and the other guarantors named, and the Bank, for the benefit of the owners of the Bonds is approved. Section 7. Execution of Bonds and Bond Documents. The Mayor of the Issuer is authorized and directed to execute the Bonds and deliver them to the Bank for authentication on behalf of the Issuer in the manner provided by the Act and in the Bond Agreement. The Mayor or member of the Issuer's governing body authorized by law to exercise the powers and duties of the Mayor in the Mayor's absence is further authorized and directed to execute and deliver the Bond Documents on behalf of the Issuer in substantially the forms presented for review prior to passage of this Ordinance, with such corrections or amendments as the Mayor or other person lawfully acting in the absence of the Mayor may approve, which approval shall be evidenced by his or her signature. The authorized signatory may sign and deliver all other documents, certificates or instruments as may be necessary or desirable to carry out the purposes and intent of this Ordinance and the Bond Documents. The City Clerk or the Deputy City Clerk of the Issuer is hereby authorized and directed to attest the execution of the Bonds, the Bond Documents and such other documents, certificates and instruments as may be necessary or desirable to carry out the intent of this Ordinance under the Issuer's corporate seal. Section 8. Property Tax Exemption; Payment in Lieu of Taxes. The Project will be exempt from ad valorem property taxes for 10 years, commencing in the calendar year after the calendar year in which the Bonds are issued. The Tenant will prepare the application for exemption and submit it to the Issuer for its review. After its review, the Issuer will submit the application for exemption to the State Board of Tax Appeals. The Issuer is authorized to enter into the Agreement for Payment in Lieu of Taxes in substantially the form presented for review prior to passage of this Ordinance. SOS\600183.170\ORDINANCE 18  Section 9. Pledge of the Project and Net Lease Rentals. The Issuer hereby pledges the Project and the net rentals generated under the Lease to the payment of the Bonds in accordance with K.S.A. 12-1744. The lien created by the pledge will be discharged when all of the Bonds are paid or deemed to have been paid in accordance with the terms of the Bond Agreement. Section 10. Authority To Correct Errors, Etc. The Mayor or member of the Issuer's governing body authorized to exercise the powers and duties of the Mayor in the Mayor's absence, the City Clerk and any Deputy City Clerk are hereby authorized and directed to make any alterations, changes or additions in the instruments herein approved, authorized and confirmed which may be necessary to correct errors or omissions therein or to conform the same to the other provisions of said instruments or to the provisions of this Ordinance. Section 11. Further Authority. The officials, officers, agents and employees of the Issuer are authorized and directed to take whatever action and execute whatever other documents or certificates as may be necessary or desirable to carry out the provisions of this Ordinance and to carry out and perform the duties of the Issuer with respect to the Bonds and the Bond Documents. Section 12. Effective Date. This Ordinance shall take effect after its passage by the governing body of the Issuer, signature by the Mayor and publication once in the Issuer's official newspaper. PASSED by the governing body of the Issuer on September 9, 2014 and APPROVED AND SIGNED by the Mayor. (SEAL) Mayor ATTEST: City Clerk [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] SOS\600183.170\ORDINANCE 19 City Council Meeting 8. B. Meeting Date: 09/09/2014 Submitted By: Jean Epperson, Director of Finance Agenda Category: New Business Subject: Defeasance of General Obligation Bonds Series 2010-B Background: In 2007, Derby voters authorized a 1/2 cent city-wide retail sales tax for construction of a new library upon expiration of the sales tax for the aquatic park. The following year, temporary financing was issued to begin construction in anticipation of the library sales tax becoming effective in 2010. The city-wide sales tax dedicated to the aquatic park sunset on December 31, 2009, and the tax dedicated to the library began January 1, 2010. General Obligation Series 2010-B Bonds in the amount of $7,300,000 were issued to pay off temporary notes that paid for construction of the library. The call date was December 1, 2014. Due to steady growth in commercial businesses in Derby, sales tax receipts have accumulated in the reserve account to provide for defeasance of the G.O. 2010-B Series (the "bonds"). It is recommended that the defeasance occur in December, and the library sales tax sunset on December 31, 2014. Once the bonds are defeased, the Derby Difference Sales Tax which was approved by the voters in October 2013, can become effective January 1, 2015. The proposed ordinance directs the call for redemption of the bonds and authorization of the subsequent notice. The Notice of Call for Redemption will be provided to the State Treasurer and UMB Bank, N.A., underwriter of the bonds, 45 days prior to the redemption date of December 1. Financial/Sustainability Considerations: Currently, bonds totaling $4,540,000 remain outstanding. Redemption of the bonds on December 1 will save interest costs of $168,127.50 through 2017. The Library Sales Tax Fund is expected to have funds available to pay for the defeasance plus a carryover at year-end of approximately $638,000. The carryover amount will continue to be used for library operating expenses in 2015 and 2016 until depleted. 20 Legal Considerations: The instruments pursuant to which the bonds were issued authorize the City to accomplish this defeasance and establish the procedure for doing so. Defeasance documents were prepared by the City's bond counsel, Gilmore & Bell. Policy Considerations: Redemption of the Bonds in 2014 will result in prudent cash management to eliminate interest costs associated with bond maturities in 2015 through 2017. Recommend a Motion to: Approve an ordinance directing defeasance of the bonds as presented. Attachments Sales Tax Termination Ordinance 21  Gilmore & Bell, P.C. 08/21/2014 ORDINANCE NO. [____] AN ORDINANCE OF THE CITY OF DERBY, KANSAS, AUTHORIZING THE REDEMPTION OF THE CITY’S OUTSTANDING GENERAL OBLIGATION SALES TAX BONDS, SERIES 2010-B; REQUESTING THE TERMINATION OF AN EXISTING ONE-HALF PERCENT (1/2%) CITY-WIDE RETAILERS’ SALES TAX APPROVED BY THE ELECTORS OF THE CITY AT AN ELECTION HELD ON OCTOBER 16, 2007; CONFIRMING THE IMPOSITION OF A ONE-HALF PERCENT (1/2%) CITY-WIDE RETAILERS’ SALES TAX APPROVED BY THE ELECTORS OF THE CITY AT AN ELECTION HELD ON OCTOBER 8, 2013; AND AUTHORIZING CERTAIN ACTIONS TO BE TAKEN IN CONJUNCTION THEREWITH. WHEREAS, pursuant to Resolution No. 47-2007 of the City of Derby, Kansas (the “City”) and K.S.A. 12-187 et seq. (the “Act”), as amended, a special election was duly held in the City on October 16, 2007, on the following question: Shall the City of Derby, Kansas be authorized, upon the expiration of the existing one- half percent (1/2%) city-wide retailers' sales tax imposed in the City to finance the costs of a municipal aquatic park facility and related appurtenances thereto and payment of operating and maintenance costs thereof (the “Aquatic Park Sales Tax”), to: (1) impose a one-half percent (1/2%) city-wide retailers' sales tax (the “Library Sales Tax”), the proceeds of which shall be used only to finance the costs of construction and equipping of a new public library and related appurtenances thereto (the “Derby Public Library Project”) and payment of operating and maintenance costs thereof; the collection of such Library Sales Tax to commence upon the expiration of the Aquatic Park Sales Tax and shall terminate upon the earlier of the following: (a) accumulation of sufficient revenues to provide for: (i) payment of the principal of and interest on the Bonds and (ii) provision of an operation and maintenance reserve; or (b) ten years after its commencement; and (2) issue sales tax/general obligation bonds in a principal amount of not to exceed $9,435,000 to pay the costs of the Derby Public Library Project and associated financing costs; all pursuant to the provisions of K.S.A. 12-187 et seq., as amended and K.S.A. 10-101 et seq., as amended? WHEREAS, it was found and determined that more than a majority of the qualified electors of the City voting on the question had voted in favor of the imposition of the Library Sales Tax and the issuance of the sales tax/general obligation bonds to pay the costs of the Derby Public Library Project and associated financing costs; and WHEREAS, pursuant to Ordinance No. 1911, the City authorized the levy of the Library Sales Tax, the collection of which commenced on January 1, 2010; and WHEREAS, pursuant to Ordinance No. 2019 and Resolution No. 24-2010 (collectively the “Bond Resolution”), the City issued its General Obligation Sales Tax Bonds, Series 2010-B, in the original principal amount of $7,300,000, to pay the costs of the Derby Public Library Project and related expenses (the “Bonds”); and JLN\600183.70268\SALES TAX TERMINATION ORDINANCE (08-21-14) 22  WHEREAS, the City has not heretofore issued any Additional Bonds (as defined in the Bond Resolution); and WHEREAS, the Bond Resolution provides, in substance, that when all costs associated with the financing of the construction of the Derby Public Library Project have been paid (including the payment of the debt service requirements on the Bonds, or provision has been made in accordance with the Bond Resolution) and there are sufficient revenues to provide for an operation and maintenance reserve, the City will provide for early redemption of the Bonds and termination of the Library Sales Tax; and WHEREAS, sufficient funds are held pursuant to, and in funds and accounts created by, the Bond Resolution, and pursuant to the provisions of the Bond Resolution and the Act, the governing body of the City deems it necessary and advisable to provide for: (a) the redemption of the Bonds on December 1, 2014, or as soon thereafter as permitted by law (the “Redemption Date”), (b) the funding of the Operation and Maintenance Reserve Account at the Operation and Maintenance Reserve Requirement, and (c) the termination of the Library Sales Tax on December 31, 2014, or as soon thereafter as permitted by law (the “Termination Date”); and WHEREAS, pursuant to Ordinance No. 2175, the City authorized the levy of a one-half percent (1/2%) city-wide retailers' sales tax (“The Derby Difference Sales Tax”) approved at an election held October 8, 2013, the proceeds of which shall be used only to finance the: (i) development of new and existing public parks (the “Park Projects”); (ii) payment of operating and maintenance costs of the Derby Public Library; and (iii) payment of operating and maintenance costs of the Derby Fire and Rescue Department; and to pay the debt service requirements of any sales tax/general obligations bonds issued to pay the costs of the Park Projects, the collection of The Derby Difference Sales Tax to commence upon expiration of the Library Sales Tax on the Termination Date and shall terminate ten years after its commencement; and WHEREAS, the governing body of the City deems it necessary and advisable to confirm to the Secretary of the Department of Revenue of the State of Kansas (the “Secretary”) the desire for the collection of The Derby Difference Sales Tax to begin on January 1, 2015, in conjunction with the termination of the Library Sales Tax on the Termination Date. NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF DERBY, KANSAS, AS FOLLOWS: Section 1. Definitions of Words and Terms. Capitalized terms not otherwise defined herein shall have the meaning ascribed thereto in the Bond Resolution. Section 2. Redemption of the Bonds. The Mayor, Director of Finance, Clerk and the other officers and representatives of the Issuer, Piper Jaffray & Co. and The Public Finance Group, Inc. (collectively the “Financial Advisor”), and Gilmore & Bell, P.C. (“Bond Counsel”) are hereby authorized to take all actions as are necessary to implement the intent of this Resolution, including providing for the payment and redemption of the Bonds on the Redemption Date in accordance with the provisions of the Bond Resolution and to provide for notice of redemption of the Bonds. Such officials are also authorized to transfer funds from the Operation and Maintenance Reserve Account in an amount sufficient to provide for the payment and redemption of the Bonds on the Redemption Date and related expenses, and to pay any rebatable arbitrage in accordance with the federal tax certificate for the Bonds. Section 3. Transfer of Funds to Operation and Maintenance Reserve Account. After providing for the payments required by Section 2, all other moneys and investments held in the funds and accounts established in the Bond Resolution (other than the Operations Account and Operation and 23 Maintenance Reserve) and Library Sales Tax revenues received by the City from the State after the Redemption Date shall be transferred to the Operation and Maintenance Reserve Account. Notwithstanding the termination of the covenants, requirements and rights under the Bond Resolution as a result of the redemption of the Bonds, amounts remaining in or transferred to the Operations Account and Operation and Maintenance Reserve Account shall be applied solely and only for the purposes set forth in the Bond Resolution. Section 4. Termination of the Library Sales Tax; Confirmation of Imposition of The Derby Difference Sales Tax. Upon deposit of the funds described in Sections 2 and 3, provision will have been made for payment of the debt service requirements of the Bonds and funding of the Operation and Maintenance Reserve Account at the Operation and Maintenance Reserve Requirement, all in accordance with the Bond Resolution. The Secretary is hereby requested to cause the termination of the Library Sales Tax at the earliest possible date permitted by the provisions of the Act, which is anticipated to be December 31, 2014. Additionally, the Secretary is hereby requested to cause the implementation and collection of The Derby Difference Sales Tax to begin at the earliest possible date permitted by the provisions of the Act, which is anticipated to be January 1, 2015. The Clerk is hereby directed to cause a copy of this Ordinance to be forward to the Secretary. Section 5. Severability. In case any one or more of the provisions of this Ordinance shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of this Ordinance, but this Ordinance shall be construed and enforced as if such illegal or invalid provision had not been contained herein. In case any covenant, stipulation, obligation or agreement contained in this Ordinance shall for any reason be held to be in violation of law, then such covenant, stipulation, obligation or agreement shall be deemed to be the covenant, stipulation, obligation or agreement of the City to the full extent permitted by law. Section 6. Further Authority. The officers of the City, including the Mayor, Director of Finance, and Clerk, shall be and hereby are authorized and directed to: (a) execute all documents and take such actions as they may deem necessary or advisable in order to carry out and perform the purposes of this Ordinance; and (b) to make alterations, changes or additions in the foregoing agreements, statements, instruments and other documents herein approved, authorized and confirmed which they may approve, and the execution or taking of such action shall be conclusive evidence of such necessity or advisability. Section 7. Governing Law. This Ordinance shall be governed exclusively by and constructed in accordance with the applicable laws of the State. Section 8. Effective Date. This Ordinance shall take effect and be in full force from and after its passage by the governing body of the City, approval by the Mayor and publication in the official City newspaper. PASSED by the governing body of the City of Derby, Kansas on September 9, 2014, and APPROVED AND SIGNED by the Mayor. (SEAL) Mayor ATTEST: Clerk 24 City Council Meeting 8. C. Meeting Date: 09/09/2014 Submitted For: Kathy Sexton, City Manager Submitted By: Jenny Turner, Human Resources Director Agenda Category: New Business Subject: Agreement to Provide Services to the Derby Public Library Background: Since 1994, the City has processed Library employee payrolls and included Library employees on its health and dental insurance policies. In 2010, the Library was added to the City’s worker’s compensation insurance policy. That same year, the City began handling Family Medical Leave Act (FMLA) notices, reviewing disciplinary actions and changes to personnel policies, and advising on specific personnel situations for the Library. This increased activity later prompted consideration of a more formal agreement between the two entities to ensure expectations are clear, protect the interests of both parties, and provide a clear method to resolve differences. On August 27, 2014, the Derby Public Library board voted unanimously to authorize the Library Board President to execute the Human Resources and Legal Services Agreement with the City. Financial/Sustainability Considerations: The Library saves considerable money by using the services of the City’s human resources professionals and licensed attorney. The Library pays its share of premiums but has lower premiums by being part of the City’s health and dental insurance and workers compensation program. Library staff is invited to participate in employee training, as well as the City’s safety program, and wellness opportunities. Library and City staffs have developed positive working relationships as a result of the interaction at multiple events. Several city training sessions have been hosted in the Library’s computer lab, as well as in the large meeting room. Legal Considerations: The agreement was drafted by Derby city attornies and reviewed by legal counsel and other advisors to the Derby Public Library. This agreement provides a method to define the relationship between the two entities and thereby better protect their interests. 25 Policy Considerations: By continuing to provide human resources and legal services to the Derby Public Library, the City is able to help the library keep its costs down, which benefits taxpayers. Recommend a Motion to: Authorize execution of the agreement with the Derby Public Library. Attachments HR and Legal Svcs Agmt 26  DPL 082714 HUMAN RESOURCES AND LEGAL SERVICES AGREEMENT THIS AGREEMENT made and entered into this _____ day of _______, 2014, by and between: THE CITY OF DERBY, KANSAS, a municipal corporation existing under the laws of the State of Kansas (the “City”); and THE BOARD OF TRUSTEES OF THE DERBY PUBLIC LIBRARY, a body corporate and politic established pursuant to the laws of the State of Kansas (the “Derby Library”). WHEREAS, the City organized and established the Derby Library pursuant to K.S.A. 12-1218 et seq.; and WHEREAS, the Derby Library has and will continue to function as an autonomous agency; and WHEREAS, the City employs both a human resources professional and a licensed attorney; and WHEREAS, the parties find that their mutual interest requires that the City’s human resources and legal services be available to assist the Derby Library personnel, all on the terms and conditions set forth herein; NOW THEREFORE, in consideration of the mutual promises herein contained, the parties hereby agree as follows: 1. Services provided by City to Derby Library. A. Human Resources Services. The City shall make its Director of Human Resources available to provide advice, make recommendations and review all policies and procedures applicable to Derby Library personnel whenever requested by its Board of Trustees or the Director; provided, that the Director of Human Resources may decline to advise the Derby Library. In the event the Derby Library or its director chooses a course of action that is inconsistent with advice provided by the Director of Human Resources, the Derby Library agrees to indemnify the City against and hold it harmless from any and all loss or damage resulting from said action. B. Legal Services. Subject to the Derby Library’s right to retain separate counsel when it deems appropriate, the City shall make its City Attorney available to provide legal advice or representation to the Derby Library whenever requested 27  DPL 082714 by its Board of Trustees or the Director; provided, that the City Attorney may decline to advise or represent the Derby Library. C. Payroll Services. The City agrees to process the Derby Library’s payroll, including issuance of a payroll check or, when direct deposit has been authorized, advice of payment, to each Derby Library employee entitled thereto based upon information furnished by the Derby Library and using Derby Library funds. The City agrees to withhold employee contributions for benefits and other required purposes and to process payroll taxes through the City’s federal tax identification number. Notwithstanding this or any other provision of this agreement, it is understood and agreed that Derby Library personnel are employees of the Derby Library and not of the City. D. Benefit Services and Training. The City agrees to administer benefits for Library employees on the same terms provided to City employees, provided that the Library must pay the employer portions for all such benefits and employees will pay the employee portions. City agrees to include Library employees in training opportunities provided in-house to City employees. E. Representations Regarding Services Performed by City. The Derby Library shall not, in its Personnel Policy Manual or any other administrative or operational policy, procedure or directive, represent that a service will be provided or a task performed by the City unless such service or task is specifically provided for in this agreement; nor shall the Director represent that services or tasks not provided for in this agreement are or may be provided or performed by City personnel. 2. Term of Agreement; Termination. The term of this Agreement shall commence upon its execution by both parties and terminate on December 31, 2015; provided, that this agreement shall renew from year to year thereafter unless terminated pursuant to its terms. Either party may terminate this agreement without notice in the event of a material breach by the other party and otherwise by written notice to the other, given at least 60 days in advance of the next following renewal date. 3. Nondiscrimination. During the performance of the Agreement, the Derby Library shall not discriminate against any employee or applicant for employment based on race, color, religion, gender, age, national origin, marital status, citizenship, status as a qualified individual with a disability, military status or any other protected characteristic as established by law. 28  DPL 082714 4. Amendments to Agreement. No amendment or modification of this agreement shall be effective unless reduced to writing and approved by both parties. 5. Application of Kansas Tort Claims Act. Each party is a governmental entity within the meaning of the Kansas Tort Claims Act (KTCA), K.S.A. 75-6101 et seq., and the liability of each for the acts or omission of its officers, employees and agents shall be determined pursuant to the provisions of the KTCA. Neither party shall be deemed to have waived any defense available to it under the provisions of the KTCA, whether against the other or against third parties. 6. Assignment. This Agreement shall not be assigned by either party, except with the express written consent of the other. 7. Relationship of Parties. Except as otherwise provided herein, nothing in the Agreement shall be construed to create or imply an agency, partnership or joint venture between the parties hereto, nor shall any officer, employee or agent of the Derby Library or City be deemed to be an officer, employee or agent of the other for any purpose. 8. Resolution of Disputes. All disputes concerning the application or interpretation of the Agreement shall be resolved by agreement of the City Manager and the Director; provided, that disputes not so resolved shall be resolved by agreement of the City Manager and the Library Board; and provided further, that disputes not so resolved may end in termination of the agreement by either party, effective immediately. 9. Binding Effect. This agreement shall be binding upon and inure the benefit of the parties and their respective successors and assigns. 10. Addresses. For the purpose of this agreement, all notices required herein shall be made in writing and addressed to the parties as follows: City Manager Director City of Derby, Kansas Derby Public Library 611 Mulberry 1600 East Walnut Grove Derby, KS 67037 Derby, KS 67037 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed the day and year first above written. Approved as to form: 29  DPL 082714 _______________________________ Jacque Butler, City Attorney Attest: ______________________________ Linda Slack, Library Board Secretary CITY OF DERBY, KANSAS ______________________________ Dion P. Avello, Mayor DERBY PUBLIC LIBRARY ______________________________ John McIntosh, President, Library Board 30 City Council Meeting 8. D. Meeting Date: 09/09/2014 Submitted By: Kathy Sexton, City Manager Agenda Category: New Business Subject: Updates to the City Council's List of Priorities Background: On May 27, the Council last updated its list of priorities. Since then, staff have worked on many of the priorities, although none are considered "done" and so not ready for removal from the list. Based on issues that have surfaced in the past few months, five items are proposed for the Council's consideration of whether to add them to the list: Draft incentives for redevelopment in older parts of the city. Update zoning code and ordinance. Develop a plan for managing The Venue & other new park facilities available for rental. Develop program for sidewalk maintenance. Update municipal code to provide for removal of board appointees. During the Council meeting, the progress and status of each item will be reviewed. Policy Considerations: When a governing body agrees on a set of priorities, staff time is used most productively. The list does not represent everything the Council has directed staff to accomplish and does not include many tasks routinely performed, rather it includes enhancement projects and programs to be worked on as time allows amid other responsibilities. Recommend a Motion to: Approve the Council's updated list of priorities. Attachments Priorities List 31 32 City Council Meeting 9. A. Meeting Date: 09/09/2014 Submitted By: Rebecca Likiardopoulos, Management Assistant Agenda Category: Consent Subject: Delegates to Annual League of Kansas Municipalities Meeting Background: The annual League of Kansas Municipalities meeting is scheduled for October 11-13 in Wichita. The meeting includes a session to review and approve the policy positions of the League. Delegates from all member cities vote on the official policy statement which is the basis for League lobbying efforts with the Legislature and other branches of state government. Member cities are given a weighted voting system based on population. The City of Derby is entitled to four official voting delegates and four alternate delegates in case the voting delegates are unable to fulfill their duties. Elected officials and staff can serve as delegates and alternates. Those planning to attend the conference and available to serve as delegates are: Dion Avello, Mayor Kathy Sexton, City Manager-Alternate Recommend a Motion to: Appoint voting delegates to the 2014 League meeting as presented. 33 City Council Meeting 9. B. Meeting Date: 09/09/2014 Submitted For: Dan Squires, City Engineer Submitted By: Stephanie Cox, Engineering Coordinator Agenda Category: Consent Subject: Sanitary Sewer and Waterline Improvements to serve The Oaks Addition - Phase 9 Background: Phase 9 in The Oaks is the new area of single family homes southeast of Waters Edge to be named Lookout Pointe. On August 26, the following bids were received for construction of sanitary sewer and water line improvements for The Oaks Addition, Phase 9: CONTRACTOR SANITARY SEWER WATER LINE BID BID TOTAL BID Dondlinger $207,393.00 $132,827.00 $340,220.00 Construction Mies Construction $196,848.00 $117,244.00 $314,092.00 Nowak Construction $179,751.00 $117,885.50 $297,636.50 Engineer's Estimate $187,084.00 $129,931.00 $317,015.00 *Engineer's estimate prepared by Baughman Company, PA. Streets for the Lookout Pointe neighborhood are currently being designed, and a bidding process will follow. Streets are traditionally constructed following installation of water and sewer lines. Financial/Sustainability Considerations: The cost for the improvements will be paid 100% by the improvement district. Recommend a Motion to: Authorize execution of a contract with Nowak Construction Co., Inc. in the amount of $297,636.50 for construction of sanitary sewer and water line improvements to serve The Oaks Addition, Phase 9. 34