Derby City Council

AGENDA City Council Meeting 10:30 A.M. - Thursday, April 9, 2020 Council Room Page 1. CALL MEETING TO ORDER 2. FLAG SALUTE 3. INVOCATION-- MAYOR RANDY WHITE 4. ROLL CALL 5. CONSIDERATION OF MINUTES 5.1. Adoption of Minutes 3 - 15 Recommended Motion: Approve the regular meeting minutes, as presented. City Council - 24 Mar 2020 - Minutes - Pdf 6. PRESENTATIONS 6.1. Request from Rock Regional Hospital for a Loan Guarantee 17 Agenda Item Report - AIR-20-079 - Pdf 7. EXECUTIVE SESSION-- IF NEEDED, TO DISCUSS DATA RELATING TO FINANCIAL AFFAIRS OR TRADE SECRETS OF SECOND PARTIES AND/OR MATTERS DEEMED TO BE OF ATTORNEY-CLIENT PRIVILEGE 8. NEW BUSINESS 8.1. Repeal of Municipal Code Provision on Special Meetings 19 - 20 Recommended Motion: Adopt an ordinance repealing Section 2.04.030 of the Derby Municipal Code. Agenda Item Report - AIR-20-078 - Pdf 8.2. Purchase of Land for Future Street Project 21 - 24 Recommended Motion: Authorize the City Manager to negotiate and enter into a written agreement for $100,000 for the purchase of real property at 2612, 2618 and 2624 N. Nelson Dr. on such other terms as are acceptable to the City Manager and authorize the City Manager, in her discretion, to sign documents and take other steps necessary to finalize and close the transaction following review of the title and environmental assessments. Agenda Item Report - AIR-20-076 - Pdf 8.3. Authority to Close Municipal Court Operations 25 - 26 Recommended Motion: Close the Derby Municipal Court for pending Page 1 of 26  AGENDA City Council Meeting 10:30 A.M. - Thursday, April 9, 2020 Council Room Page 1. CALL MEETING TO ORDER 2. FLAG SALUTE 3. INVOCATION-- MAYOR RANDY WHITE 4. ROLL CALL 5. CONSIDERATION OF MINUTES 5.1. Adoption of Minutes 3 - 15 Recommended Motion: Approve the regular meeting minutes, as presented. City Council - 24 Mar 2020 - Minutes - Pdf 6. PRESENTATIONS 6.1. Request from Rock Regional Hospital for a Loan Guarantee 17 Agenda Item Report - AIR-20-079 - Pdf 7. EXECUTIVE SESSION-- IF NEEDED, TO DISCUSS DATA RELATING TO FINANCIAL AFFAIRS OR TRADE SECRETS OF SECOND PARTIES AND/OR MATTERS DEEMED TO BE OF ATTORNEY-CLIENT PRIVILEGE 8. NEW BUSINESS 8.1. Repeal of Municipal Code Provision on Special Meetings 19 - 20 Recommended Motion: Adopt an ordinance repealing Section 2.04.030 of the Derby Municipal Code. Agenda Item Report - AIR-20-078 - Pdf 8.2. Purchase of Land for Future Street Project 21 - 24 Recommended Motion: Authorize the City Manager to negotiate and enter into a written agreement for $100,000 for the purchase of real property at 2612, 2618 and 2624 N. Nelson Dr. on such other terms as are acceptable to the City Manager and authorize the City Manager, in her discretion, to sign documents and take other steps necessary to finalize and close the transaction following review of the title and environmental assessments. Agenda Item Report - AIR-20-076 - Pdf 8.3. Authority to Close Municipal Court Operations 25 - 26 Recommended Motion: Close the Derby Municipal Court for pending Page 1 of 26 where social distancing guidelines may be maintained, to respond to public safety risks, and to respond to no-contact orders and persons in custody and further to delegate to the City Manager authority to extend the closure of the municipal court as necessary to protect the public health. Page 26 of 26  appearances through April 23 subject to the authority of the municipal judge to grant exceptions to the closure to address individual matters where social distancing guidelines may be maintained, to respond to public safety risks, and to respond to no-contact orders and persons in custody and further to delegate to the City Manager authority to extend the closure of the municipal court as necessary to protect the public health. Agenda Item Report - AIR-20-081 - Pdf 9. ADJOURNMENT Page 2 of 26  DRAFT MINUTES City Council Meeting 6:30 PM - Tuesday, March 24, 2020 Council Room 1 CALL MEETING TO ORDER The City Council of the City of Derby was called to order on March 24,2020, at 6:30 p.m., in the Council Room. 2 FLAG SALUTE Mayor Randy White led the flag salute. 3 INVOCATION-- MAYOR RANDY WHITE 4 ROLL CALL PRESENT: Council Member Rocky Cornejo Council Member Jack Hezlep via phone Council Member John McIntosh via phone Council Member Nick Engle Mayor Randy White Council Member Andrew Swindle Council President Tom Keil via phone Council Member Vaughn Nun via phone Council Member Jenny Webster ABSENT: NONE Andrew Swindle moved, seconded by Nick Engle, to add to the agenda after item 6.2, a new agenda item titled “Violation of Public Health Order Ordinance.” RESULT: Carried MOVER: Andrew Swindle SECONDER: Nick Engle AYES: Rocky Cornejo, Jack Hezlep, John McIntosh, Nick Engle, Andrew Swindle, Tom Keil, Vaughn Nun, and Jenny Webster 5 CONSIDERATION OF MINUTES 1) Adoption of Minutes Andrew Swindle moved, seconded by Nick Engle, to approve the regular meeting minutes, as presented. RESULT: Carried MOVER: Andrew Swindle SECONDER: Nick Engle Page 1 of 13 Page 3 of 26  AYES: Rocky Cornejo, Jack Hezlep, John McIntosh, Nick Engle, Andrew Swindle, Tom Keil, Vaughn Nun, and Jenny Webster 6 NEW BUSINESS 1) Sale of STAR Bonds Series 2020A Kathy Sexton, City Manager, presented the agenda report, noting that the recommended motion in the agenda packet is no longer recommended since the bonds have not yet sold. BACKGROUND: • The proposed action is to approve the sale of the Series 2020A STAR Bonds. • These bonds will provide $8.1 million to be used to construct infrastructure and provide a portion of the costs of the project, as noted in the STAR Bond Project Plan and approved by the City Council and Kansas Secretary of Commerce on January 28, 2020. • The Project Plan approved in January provides for this Phase 2 project in the expanded District and includes the following: o Use of $3,158,197 of bond proceeds remaining from the 2017 STAR bond issue for construction of infrastructure and Derby Sports Zone. o Use of $8,095,564 of STAR bonds (net proceeds) for construction of infrastructure and a portion of Derby Sports Zone. Derby Sports Zone is expected to include indoor and outdoor sports courts, outdoor sand courts and games area, and a restaurant. • On March 10, the City Council engaged the firm of Crews & Associates, Inc. to serve as underwriter of these bonds and approved a resolution establishing parameters for the sale, including interest rate and aggregate principal. • Staff, with the assistance of the City's bond counsel and municipal financial advisor, have negotiated a purchase contract for the bonds with Crews & Associates, Inc. • Similar to other negotiated bond sales the City has held, a purchase contract for the bonds is planned to be entered into prior to the meeting; the proposed ordinance will ratify the bond purchase contract. FINANCIAL/SUSTAINABILITY CONSIDERATIONS: • Resolution 8-2020 authorized the sale of the bonds and provided that the aggregate principal amount shall not exceed $9.5 million. o The current estimate for a total amount is $9.0 million, but $9.5 million was used in the resolution to provide some room to adjust the final sizing of the bond issue as needed. o The same is true with the interest rate. Section 1 of the resolution notes the true interest cost shall not exceed 5.0%, but the expected rate may be lower. • The principal amount of the bonds is left blank in the recommended motion because the amount of bonds is unknown at the time the staff report is being prepared. Page 2 of 13 Page 4 of 26 LEGAL CONSIDERATIONS: • Gilmore & Bell serves as the City's bond counsel and has verified this issue is in full compliance with state laws and local resolutions and ordinances. RECOMMENDED MOTION • Adopt an ordinance authorizing and providing for issuance of $______ principal amount of Sales Tax Special Obligation Revenue Bonds, Series 2020A, and authorize the mayor, city manager and city clerk to sign all documents related to the bonds. Mayor White asked what is the interest range we are looking at for these bonds. Joe Norton via phone, Gilmore and Bell, said the maximum percentage is set at 5%. Mayor White asked when the last STAR bond sold what the percentage was. Ms. Sexton said the last series of STAR bonds sold was in 2017, and we do not recall the interest rate and will get back to you. Council Member Engle asked if there is a deadline when the bonds had to be sold. Mr. Norton said there is no time limit in the resolution the Council passed. Council Member Hezlep asked how we know the bonds will sell, given that this situation is so fluid. Ms. Sexton said we cannot be certain right now. Several members of staff had a conference call with our underwriter this morning. He was upbeat with the market activity today and said he still thinks the bonds will sell if the market sees continued stabilization for a few weeks. Council Member Keil asked what aspects of the project are being halted since the bonds haven’t sold yet. Ms. Sexton said all engineering and construction activity is in a holding pattern until the bonds sell. Once the bonds actually sell and close, the developer will move forward on the project. Council Member Keil asked once the market stabilizes, are we sure the economy will be in a place for these projects to move forward? Ms. Sexton said at this point we don’t want to predict bad news or good news. We will just have to wait a few weeks and see how it goes. Page 3 of 13 Page 5 of 26 2) Emergency Resolution in Response to COVID-19 Jacque Butler, City Attorney, presented the agenda report and noted the new section 1 added since the agenda packet was published last Thursday. BACKGROUND: • COVID-19 is a respiratory disease that spreads easily from person to person and may result in serious illness or death. Cases of infection and deaths associated with COVID-19 have been confirmed in Kansas. • National, state, and countywide states of emergency have been declared by leaders in response to COVID-19. • The response to COVID-19 remains very fluid with executive orders, public health directives, legislation, and guidelines changing on a daily basis. • Currently, COVID-19 is impacting multiple areas of City operations. The emergency has already resulted in the need to close public access to facilities, a strain on the ability to obtain supplies & other items for operations, as well as multiple concerns for employees faced with quarantines and school closures. • The City Manager is vested with broad authority and responsibility in her role as the Chief Administrative Officer of the City. o Charter Ordinance 53 establishes a non-exhaustive list of 15 categories of the powers and duties of the City Manager. These duties include, but are not limited to, being responsible to the Governing Body for the efficient administration of its affairs, the supervision of all non-elected employees, and the exercise of general supervision and control over all City purchases and expenditures in accordance with the budget and specified guidelines. o Similarly, the City Manager's employment agreement states that the City is employing the City Manager to perform the functions and duties as its chief administrative office. It includes a non-exhaustive list of 15 categories of duties & responsibilities similar to those found in Charter Ordinance 53. • However, the City Manager's authority is not absolute, and her actions are largely delegated to her from the prior authority granted by the Council through ordinances, policies, or procedures. o Many of the policies & procedures grant discretion to the City Manager to make exceptions to the policy or to authorize emergency actions; however, the City Manager generally exercises this discretion on a case-by-case basis in individual instances. o Examples of this discretion include the authority for emergency purchases, the ability of the City Manager to grant exceptions to the personnel policy manual, or the ability to authorize certain types of leave. • Generally, recommendations for personnel policy changes and purchasing authority are brought to the City Council for review & approval. • Due to the changing nature of the COVID-19 emergency, the attached resolution is recommended by the City Attorney to clarify the temporary authority of the City Manager & Deputy City Manager to make decisions Page 4 of 13 Page 6 of 26  necessary to maintain City operations, make necessary purchases, and support employees during the emergency. o This resolution will allow the City Manager & Deputy City Manager to make necessary decisions in response to the COVID-19 emergency without worry that the decision falls outside of the broad authority granted to them to administer the affairs of the City. o The other value to clarifying this authority is that it limits potential challenges to City actions during this uncertain time. • The resolution also temporarily suspends the voluntary public forum portion of public meetings, affirmatively authorizes remote participation in public meetings by elected officials and board members, and authorizes the cancellation of public meetings. o These actions are recommended in response to recent guidance and orders issued regarding limitations on number of individuals in certain locations. o The actions anticipate a possibility that future meetings may need to be held remotely while still adhering to the requirements of the Kansas Open Meetings Act. • Finally, out of an abundance of caution, the resolution ratifies recent decisions made by the City Manager and Deputy City Manager in response to the COVID-19 emergency. RECOMMENDED MOTION • Adopt a resolution regarding City operations in response to the COVID-19 Pandemic. Council Member Cornejo asked if there was a reason why Section 5B said the Council would be informed of updates at the next council meeting instead of sooner. Ms. Butler said that is the cleanest way to comply with the Kansas Open Meetings Act since it has a mandatory reporting requirement. However, the City Manager can give you more frequent updates at her discretion. Council Member Swindle asked what the end of this resolution looks like. When would we walk this legislation back after the virus pandemic is over and we are back to normal? Ms. Butler said the resolution proposed is open ended at this point. Sedgwick County's order is in effect for 30 days but can be expanded if needed. The best choice would be to adopt a resolution in the future rescinding the expanded authority and maybe at some point in the future look at adding further language in the code. Council Member Swindle said maybe once things calm down after this emergency, we should look at getting more expressed powers to the City Manager for future emergencies. Council Member Webster thanked Jacque and Kathy for all the hard work and updates that keep us informed on how the City of Derby is doing. Page 5 of 13 Page 7 of 26  Mayor White noted we have a tendency not to worry about the little things during times of large crisis, but sometimes it is important we worry about the little things. Thank you to staff for keeping the city running. If staff needs assistance or clarity on anything from the Council, then we would be happy to hold a special meeting. It is our job and responsibility as Council members to do that. Andrew Swindle moved, seconded by Jenny Webster, to adopt a resolution regarding City operations in response to the COVID-19 Pandemic. RESULT: Carried MOVER: Andrew Swindle SECONDER: Jenny Webster AYES: Rocky Cornejo, Jack Hezlep, John McIntosh, Nick Engle, Andrew Swindle, Tom Keil, Vaughn Nun, and Jenny Webster 3) Violation of Public Health Order Ordinance Jacque Butler, City Attorney, presented the agenda report. BACKGROUND: • The COVID-19 pandemic has triggered orders, declarations, and guidance from multiple sources and multiple levels of government. • The flurry of activity has also triggered confusion regarding who has authority to enforce various orders and what orders are enforceable as mandatory requirements versus those that are merely suggestive of best practices and guidance. • Within Kansas, the COVID-19 emergency has triggered statewide orders from Governor Kelly, as well as county orders such as the Johnson, Wyandotte, Douglas & Leavenworth County "stay at home" orders. • The Sedgwick County Commission, sitting as the Board of Health, has recommended a countywide "stay at home" order be entered by the local health officer. o The draft order contains a statement ordering law enforcement officers of political subdivisions within Sedgwick County, Kansas "to assist in the execution or enforcement" of the order. • The attached ordinance proposal establishes a local offense for violation of a county health order. o The new offense would be a Class C violation and would be prosecuted through Derby Municipal Court. o Class C violations are punishable by jail for a period not exceeding one month, a fine not exceeding $500, or a combination of jail time & a fine. LEGAL CONSIDERATIONS: • The proposed ordinance provides a local enforcement mechanism for a county health order. • However, addition of the local offense does not replace other enforcement mechanisms that may be available under state law. • Similar to their enforcement of other ordinances, Derby officers will retain discretion in how they respond to and enforce the local offense. Page 6 of 13 Page 8 of 26 POLICY IMPLICATIONS: • Typically ordinances advancing substantially new policy are handled with a first reading and second reading in accordance with Section 27 of the Council's Code of Meeting Procedure. • The requirement for a first & second reading may be waived by a majority vote of the Council. • Given the emergency nature responding to COVID-19 and the likelihood that there will be a forthcoming county health order, staff recommends waiving a second reading of the proposed ordinance. RECOMMENDED MOTION • Waive a second reading and adopt an ordinance adding the offense of Violating a Public Health Order to the Derby Municipal Code. Council Member McIntosh asked who has the authority to make a decision about prosecution. Ms. Butler said while police officers issue a citation, then it goes to your City Prosecutor to assess the evidence and make a decision on whether to prosecute. Council Member Engle said he is happy staff is keeping an eye on the legislation and cleaning up the grey areas. He asked if this will stay on the books permanently or be removed after the crisis is over. Ms. Butler said it will be permanent unless the Council rescinds it later. Council Member Swindle asked if this proposed action just puts the legislation on the books but doesn’t talk anything about enforcement. Ms. Butler said that is correct. There are still some questions to be answered regarding enforcement. At the press conference earlier today, the Wichita Police Chief, County Sheriff and District Attorney said they are going to focus on education, not enforcement. That's the message you will also hear in Derby. This gives officers clear authority to ask questions and investigate situations. It allows officers to follow through and cite if necessary, but that's not the primary purpose of passing this. Council Member Swindle said certain activities are exempt, and it may be a challenge for our officers to verify activities of residents that might be exempt. There are also some exemptions in the stay-at-home order that seem to conflict. Ms. Butler said some ordinances are clear; a good example is speeding. Either you are over the speed limit or not. Others aren't that easy. An example is use of a wireless device in cars. The police department, Municipal Court, and I will coordinate to evaluate our police practices. This is primarily so our officers can operate comfortably knowing they can investigate and enforce based on action being taken tonight. Council Member Nun asked about the consequences of a Class C violation. Page 7 of 13 Page 9 of 26  Ms. Butler said Class C violations are the least serious offense. It's considered a misdemeanor and in line with the violations in state law. Council Nun asked for the maximum fine and jail time tied to this violation. Ms. Butler said that maximum range is tied to your public offense code. There are specific ranges for each class violation from A to C. Mr. Hezlep asked how we determine what is a violation and what isn't when there are such ambiguous orders from the state. Ms. Butler said we looked primarily at the difference between prohibited and restricted. The order given today from Sedgwick County is a lot cleaner and more direct than orders from last week, which were written to be more advisory than enforceable. Mr. Hezlep asked how we can tell the difference between advisories and orders. Ms. Butler said it's written into state law. They are defined under a particular statute. Ms. Sexton said last week we first got orders from the governor that said “prohibit or restrict” gatherings. Because of my public health background, I immediately began asking who enforces the order. We called the sheriff and Jacque spoke with other city attorneys. That is how we learned these orders were not strict bans and were not to be enforced by law enforcement officers. Now, there's an actual doctor who has made a real public health order and needs to know that law enforcement will help enforce it, if needed. Nick Engle moved, seconded by Andrew Swindle, to waive a second reading and adopt an ordinance adding the offense of Violating a Public Health Order to the Derby Municipal Code. RESULT: Carried MOVER: Nick Engle SECONDER: Andrew Swindle AYES: Rocky Cornejo, Jack Hezlep, John McIntosh, Nick Engle, Andrew Swindle, Tom Keil, Vaughn Nun, and Jenny Webster 7 CONSENT AGENDA 1) 2020 Arbor Day Proclamation BACKGROUND: • This is the 27th year the City has been recognized as a Tree City USA by the National Arbor Day Foundation. We celebrate Arbor Day every year with activities in the community. o This year, at Spring into Art, the Parks and Urban Forestry Board will host a booth and have a short ceremony commemorating Arbor Day, and City staff will plant a tree. RECOMMENDED MOTION Page 8 of 13 Page 10 of 26  • Receive and file the proclamation. 2) Derby Recreation Commission Annual Report and Audit BACKGROUND: • Each year, the Derby Recreation Commission publishes a report about its activities and financial information. • The report is presented to the Board of Education and the City Council because these two organizations jointly established the commission more than 30 years ago to serve not only city residents but also the entire Derby school district by providing quality recreational and leisure opportunities to the community. FINANCIAL/SUSTAINABILITY CONSIDERATIONS: • Each year, the DRC also provides the City with a copy of its annual financial audit. This document is attached for City Council review. RECOMMENDED MOTION • Receive and file the report and audit. 3) Replacement of Postage Machine BACKGROUND: • The City Hall postage machine, purchased in 2014, has required a great deal of maintenance in the last few months and has reached the end of its expected life. • There are three companies approved to provide postage machines in our area: Pitney Bowes, Midwest Single Source, and 360 Document Solutions. o Pitney Bowes is not recommended due to a lack of a local representative. The postage machine is a high maintenance piece of equipment that requires regular updates and routine maintenance. Local staffing is desired to provide prompt service. • Pricing for the units was compared, and Midwest Single Source found to be significantly lower than 360 Document Solutions for a five year cost ($10,461 vs. $14,697). • Midwest Single Source will lease the machine for five years (expected life span) for $10,660. o The additional $200 would allow the City not to pay the $4,000 purchase price up front, and the vendor will take the machine back after five years, which relieves the City from having to get rid of the machine. • The City pays a postage meter rental fee ($55/month) to the Postal Service. That amount remains constant no matter which vendor is selected to provide the postage machine. FINANCIAL/SUSTAINABILITY CONSIDERATIONS: • The first year of the lease ($2,132.04) will be paid from the Miscellaneous Building Improvement line. Future year lease payments would be included in the maintenance line item identified for maintenance of copiers and postage machines. Page 9 of 13 Page 11 of 26  • Bid Board has reviewed and approved this recommendation. LEGAL CONSIDERATIONS: • The City Attorney has reviewed the lease and associated documents. • Under state law a multi-year lease purchase agreement requires an affirmative vote of 5 Council members to pass. RECOMMENDED MOTION • Authorize execution of a lease agreement with Midwest Single Source to provide a postage machine. 4 Issuance of Cereal Malt Beverage License BACKGROUND: • Vendors of cereal malt beverages are required to be licensed by the City. • An application for a cereal malt beverage license for calendar year 2020 has been received from Corner Market 114 LLC, dba Corner Market (Kelsey Stout, manager), located at 230 S. Baltimore Ave. • The application has been reviewed and approved by the Police Chief and Fire Chief, and complies with city requirements. LEGAL CONSIDERATIONS: • The Municipal Code establishes qualifications for issuance of cereal malt beverage licenses. A license may not be issued until all qualifications have been met. • The applicant has met the requirements of the Municipal Code and applicable state statutes. • If the applicant is qualified as provided by law, the Municipal Code states that the Governing Body shall direct the City Clerk to issue the license. RECOMMENDED MOTION • Authorize issuance of a cereal malt beverage license, to Corner Market 114 LLC, dba Corner Market. 5) Assessment Ordinance for Sanitary Sewer and Stormwater Fees BACKGROUND: • Properties within the City of Derby that are not connected to either the sanitary sewer or water distribution systems are billed semi-annually for the stormwater utility fee. • Properties not connected to the water distribution system but have sanitary sewer service are billed monthly. Delinquent sewer accounts cannot be disconnected from the system as easily as water accounts, so levy of assessments is recommended. • The stormwater fee is $3 per month per residential unit and $2 per month per ERU (equivalent residential unit) for non-residential properties. Some assessments are smaller than others because of payments received during this time period. The larger assessments are Page 10 of 13 Page 12 of 26  mostly on non-residential property or, if on several residential properties, include sanitary sewer charges. • Each owner of record at the time the fee was incurred was sent notification that the City Council will consider assessment of the fees by ordinance. FINANCIAL/SUSTAINABILITY CONSIDERATIONS: • Assessments total $3,668.61 on 27 properties. LEGAL CONSIDERATIONS: • Staff routinely exhausts all available informal options for collection of delinquent sanitary sewer and stormwater fees before recommending levying as a special assessment. • City ordinance authorizes the assessment of sanitary sewer and stormwater fees that are not paid on a timely basis. Assessments are routinely performed following other attempts to collect payments. RECOMMENDED MOTION • Adopt an ordinance levying a special assessment upon certain properties for unpaid sanitary sewer and stormwater fees. 6) Donations for Derby Senior Center BACKGROUND: • The Senior Center has many members and community individuals who graciously give donations throughout the year. • Often times when someone active at the Senior Center passes away, they name the Senior Center for memorial donations. Donated funds are used to offset the costs of programming at the Senior Center. • The Senior Center Board also sends out fundraising letters to members every other year to help offset the cost of supplies at the Senior Center and make facility improvements. • Some people donate to the Senior Center at large to enhance programming. Others donate to the Derby Dash to assist with transportation costs for those in the community who might otherwise not be able to ride due to cost. • Donations listed below total $260. • Donations of less than $500 or those who want to remain anonymous are recognized quarterly on the Consent Agenda. • Donors listed below made contributions to the Senior Center or Derby Dash between December 9, 2019 and now. Each donor was also sent a letter from the Mayor thanking them. Donors Donation Area Amount Eugene Epperson at-large $20 Doris Harvey at-large $25 Paul and Peggy McKenzie at-large $100 Harold Kelly at-large $75 James Anderson at-large $20 Page 11 of 13 Page 13 of 26  Gisela Bette at-large $20 RECOMMENDED MOTION • Recognize the donations. 7) Paving Improvements to serve Phase 1 of Cedar Ranch Estates BACKGROUND: • Cedar Ranch Estates is a unique Residential Planned Unit Development (RPUD) generally located south of Madison Avenue and East of Webb Road (see attached map). o The 176-acre tract of land is platted into 129 single-family residential lots that are larger than typical single-family lots and will provide a semi-rural feel to the neighborhood. • The landowners desire to develop the addition in phases. Construction of the initial phase of water and sanitary sewer improvements is underway. • Construction of paving improvements, along with incidental stormwater and grading, will complete the first phase of public improvements. On March 10, the following bids were opened: APAC - Kansas, Inc. $668,757.00 Conspec Inc. $670,580.00 Cornejo & Sons $717,885.00 Mies Construction $677,483.40 Pearson Construction $661,200.00 Engineer's Estimate $707,949.00 Engineer's estimate provided by Baughman Company, PA. FINANCIAL/SUSTAINABILITY CONSIDERATIONS: • The project costs will be paid 100% by the benefit district. RECOMMENDED MOTION • Authorize execution of a contract with Pearson Construction in the amount of $661,200 for construction of Paving Improvements to serve Phase 1 of Cedar Ranch Estates. Andrew Swindle moved, seconded by Nick Engle, to approve the Consent Agenda, as presented. RESULT: Carried MOVER: Andrew Swindle SECONDER: Nick Engle AYES: Rocky Cornejo, Jack Hezlep, John McIntosh, Nick Engle, Andrew Swindle, Tom Keil, Vaughn Nun, and Jenny Webster 8 ADJOURNMENT Andrew Swindle moved, seconded by Jenny Webster, to adjourn the meeting at 7:23 p.m. RESULT: Carried Page 12 of 13 Page 14 of 26 MOVER: Andrew Swindle SECONDER: Jenny Webster AYES: Rocky Cornejo, Jack Hezlep, John McIntosh, Nick Engle, Andrew Swindle, Tom Keil, Vaughn Nun, and Jenny Webster City Clerk Mayor Page 13 of 13 Page 15 of 26 Page 16 of 26 Presentation Subject: Request from Rock Regional Hospital for a Loan Guarantee Meeting: Special City Council - 09 Apr 2020 Presented by: Kathy Sexton, City Manager Guests: Kevin Hicks, Rock Regional Hospital BACKGROUND: • On April 1, representatives of Rock Regional Hospital made a verbal request to the City to guarantee $1 million of a bank loan for which it is applying. Subsequently, a similar request for $2 million was made to Sedgwick County. o The hospital was considering applying for a bank loan to provide bridge funding to (a) purchase personal protective equipment (PPE) for its staff to be ready for COVID-19 patients, (b) combat COVID-19, and (c) provide general hospital operations during this time of severely reduced elective surgeries. o This loan was intended to provide operational funding until such time as federal stimulus funding arrives and routine hospital operations resume and generate regular revenues. • The Board of County Commissioners heard the request at its regular meeting on Wednesday, April 8 and denied it. Subsequently, the hospital withdrew its request of Derby and requested instead that its new management be introduced at the City Council meeting and relay its vision for the hospital going forward. • On Monday, April 6, a new hospital Interim CEO, Teresa Collins, was appointed by Kevin Hicks, CEO of CABE Consulting, who is the new Manager of Rock Regional Hospital. o Since opening in 2019, the hospital has been managed by Candor Healthcare out of Texas, but Candor is no longer involved with the hospital. • Rock Regional Hospital, LLC is a private company owned by a hospital operating company, Rock Medical Assets, LLC. The hospital operating company is owned by a real estate investment firm, private equity firms and capital investment firms, individual investors, and Via Christi Hospitals of Wichita (Ascension Health). o Physician investors (30+) are invested in Rock Regional Hospital through a real estate investment group and a hospital management company. POLICY IMPLICATIONS: • While located in the STAR bond district, Rock Regional Hospital has not previously asked for or received public funding. Several years ago, the hospital developer targeted Derby and was zeroing in on the area of Rock Road and Patriot Avenue prior to any knowledge that another developer was working on setting up a STAR bond district there. Many other businesses also are in the STAR bond district but have not received state or city funding. • While the City of Derby is glad to have a hospital in town, the City has never considered investing in a hospital or participating financially in any way until this week. Page 17 of 26 Page 18 of 26 New Business Item Subject: Repeal of Municipal Code Provision on Special Meetings Meeting: Special City Council - 09 Apr 2020 Presented by: Jacque Butler, City Attorney BACKGROUND: • Section 2.04.030 of the Derby Municipal Code provides that special meetings may be called by the Mayor on written request of not less than three members of the Council, specifying the object and purpose of the meeting. o When the need for a special meeting is known in advance, Derby has typically scheduled special meetings by Council vote during a regular, open meeting. The date, time, & purpose of the special meeting are made known to the Council and the public by this process. • The code provision was added during the 1996 republication and closely tracks the language of a state statute concerning special meetings of cities of the second class. However, the code provision duplicates state law and will be outdated when Derby converts to a city of the first class later this year. • The Kansas Open Meetings Act does not specify how special meetings shall be called or held other than limiting the business of the meeting to those topics related to the call for the meeting. RECOMMENDED MOTION: • Adopt an ordinance repealing Section 2.04.030 of the Derby Municipal Code. ATTACHMENTS: Ordinance Page 19 of 26  04092020 Special Meetings Repeal Passed: ____________________ Published: __________________ ORDINANCE NO. ____ AN ORDINANCE REPEALING SECTION 2.04.030 OF THE DERBY MUNICIPAL CODE RELATED TO THE CALLING OF SPECIAL MEETINGS OF THE DERBY CITY COUNCIL. BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF DERBY, KANSAS: Section 1. Section 2.04.030 – Special Meetings of the Derby Municipal Code is hereby repealed. Section number 2.04.030 of the Derby Municipal Code is hereby reserved for future use. Section 2. Severability Should any section, clause, sentence, or phrase of this ordinance be found to be unconstitutional or is otherwise held invalid by any court of competent jurisdiction, such invalidity shall not affect the validity of any remaining provisions herein. Section 3. Effective Date This Ordinance shall take effect and be in force from and after its passage and publication of the ordinance or a summary thereof once in the City’s official newspaper as provided by state law. PASSED by the City Council this ____ day of April, 2020 and SIGNED by the Mayor. Randy White, Mayor Seal Attest: Hillary Lawrence, City Clerk Approved as to form: Jacqueline R. Butler, City Attorney Page 20 of 26 New Business Item Subject: Purchase of Land for Future Street Project Meeting: Special City Council - 09 Apr 2020 Presented by: Dan Squires, Director of Planning & Engineering BACKGROUND: • In 2010, the City completed a traffic engineering study of the Nelson Dr. corridor. o The study was completed through the Kansas Department of Transportation's Traffic Engineering Assistance Program (TEAP). o The study identified alternatives to improve safety where Nelson Dr. intersects several arterial roadways, including Patriot Ave. o One recommendation of the TEAP study is to realign Nelson Dr. to line up with Commerce Dr. at Patriot Ave., and signalize the intersection. • In 2019, the City completed the K-15 Area Plan which included a traffic analysis and incorporated the recommendation of the TEAP study to realign Nelson Dr. The K-15 Area Plan concept drawing is attached. • Also in 2019, while working with the owner of several properties along Nelson Dr. to address code concerns, the owner indicated she may be willing to sell the properties to the City. o Purchase of the properties would allow the realignment project to be designed using more City property and reducing the impact to other properties. • City staff has begun negotiating an agreement for purchase of the properties, but a few minor issues have not been finalized at this time (form of the deed and time to terminate following inspection). Terms agreed on are as follows: o The City would pay $100,000 for three properties located at 2612, 2618 and 2624 N. Nelson Dr. (location map attached). The properties total 34,889 sq. ft. and include 3 structures. Cost per square foot: $2.87. o The property would be purchased in "as-is" condition subject to satisfactory results of Phase 1 and Phase 2 environmental assessments and title requirements. o The existing buildings are not habitable and will be removed at an estimated cost of $55,000. FINANCIAL/SUSTAINABILITY CONSIDERATIONS: • The total cost for purchase of the properties and removal of existing structures is estimated to be $155,000 ($4.44/square foot). Funding is available in the CIP Reserve Fund. • A state KDHE grant of $8,700 has been approved to perform the environmental assessment. POLICY IMPLICATIONS: • This purchase facilitates future improvements to Nelson Dr., provides an immediate aesthetic improvement to the area, and furthers the goals of the K-15 Area Plan. Page 21 of 26 RECOMMENDED MOTION: • Authorize the City Manager to negotiate and enter into a written agreement for $100,000 for the purchase of real property at 2612, 2618 and 2624 N. Nelson Dr. on such other terms as are acceptable to the City Manager and authorize the City Manager, in her discretion, to sign documents and take other steps necessary to finalize and close the transaction following review of the title and environmental assessments. ATTACHMENTS: 040920 Nelson Land Location Map 040920 K 15 Area Plan Concept Page 22 of 26  Patriot Ave. (63rd St. S.) 407 2636 2624 N. Nelson Dr. r. lson D 12,850 SF N. Ne 2630 2624 2612 N. Nelson Dr. 10,711 SF 2612 2618 2618 N. Nelson Dr. 2606 11,338 SF 2600 2536 2526 Properties to be Purchased City-Owned Properties 1" = 200' Proposed Land Purchase for Future Street Project Page 23 of 26  Patriot Ave. (63rd St. S.) Properties for Purchase r. Hwy. lson D K-15 N. Ne Buckner St. Red Powell Dr. Meadowlark Blvd. (71st St. S.) K-15 Area Plan Concept Page 24 of 26 New Business Item Subject: Authority to Close Municipal Court Operations Meeting: Special City Council - 09 Apr 2020 Presented by: Jacque Butler, City Attorney BACKGROUND: • On March 24, 2020, the City Council adopted Resolution 09-2020 granting temporary expanded authority to the City Manager and the Deputy City Manager to respond to the COVID19 pandemic, including the authority to close facilities and suspend City operations. • On March 31, 2020, Municipal Judge James Murfin issued an administrative order concerning operations of Derby Municipal Court. o The administrative order was designed to comply with government orders and guidance limiting the size of public gatherings and honoring social distancing guidelines. o The administrative order generally rescheduled pending matters scheduled before the court in the next few weeks to future dates in late April and May. The order also allowed for individuals to request exceptions to the rescheduled dates. o Cases involving public safety risk, no contact orders, or individuals in custody are evaluated individually and may remain on the docket with restrictions necessary to comply with social distancing guidelines. o Court clerk and court services staff are maintaining normal office hours to perform essential functions and assist the public with routine transactions such as payment of fines and scheduling of future court appearances. Probation reporting is ongoing and is being conducted by telephone in most cases. • On April 3, 2020, the Chief Justice of the Kansas Supreme Court issued an administrative order suspending certain deadlines and time limitations in Kansas Municipal Courts. The order specifically extends the deadlines in circumstances where a municipal court "is closed by its governing body because of the COVID-19 pandemic." • The language of the Chief Justice's order has raised questions regarding whether the closure of a municipal court by a municipal judge or city manager is sufficient to trigger the suspension of deadlines and time limitations associated with constitutional & statutory protections of defendants. • Out of an abundance of caution, staff is asking the Council to clarify the status of municipal court operations by officially closing the municipal court for pending appearances through April 23, subject to the authority of the municipal judge to grant exceptions to the closure, and to delegate to the City Manager authority to extend the closure of the municipal court as necessary to protect the public health. RECOMMENDED MOTION: • Close the Derby Municipal Court for pending appearances through April 23 subject to the authority of the municipal judge to grant exceptions to the closure to address individual matters Page 25 of 26 where social distancing guidelines may be maintained, to respond to public safety risks, and to respond to no-contact orders and persons in custody and further to delegate to the City Manager authority to extend the closure of the municipal court as necessary to protect the public health. Page 26 of 26