CITY OF DERBY MEETING OF THE CITY COUNCIL REGULAR MEETING October 13, 2015 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 Bruce Freeman, Cross of Glory
4. ROLL CALL
5. CONSIDERATION OF MINUTES
5. A. Regular Meeting Minutes - September 22, 2015
Recommend a Motion to:
Approve the regular meeting minutes of September 22, 2015, as presented.
6. PUBLIC FORUM
7. PROCLAMATION
7. A. United Way of the Plains Proclamation
8. NEW BUSINESS
8. A. Resolution Authorizing the Sale of General Obligation Bonds
Recommend a Motion to:
Approve a resolution authorizing the sale of General Obligation Bond 1 Approve a resolution authorizing the sale of General Obligation Bond Series 2015-C of the City of Derby.
8. B. Dump Truck Replacement
Recommend a Motion to:
Authorize purchase of a 2016, 20-ton dump truck from Kansas Truck Center in the amount of $120,394.
8. C. Zone Change Request from R-1 to I-1 at the Northwest Corner of Louisa St. and Westview Dr.
Recommend a Motion to:
Approve an ordinance rezoning a 1.7 acre tract at the northwest corner of Louisa St. and Westview Dr. from R-1 "Single-family Residential" to I-1 "Institutional District" based on the Planning Commission's findings of fact.
8. D. First Reading: Mobile Food Vending Ordinance
Recommend a Motion to:
Schedule a second reading of the Mobile Food Vending Ordinance for October 27.
8. E. Proposal to Reduce Development Fees in West End and Buckner Business District
Recommend a Motion to:
Adopt the fee resolution as proposed.
8. F. Purchasing Policy
Recommend a Motion to:
Approve the Purchasing Policy as presented. 2 Approve the Purchasing Policy as presented.
9. CONSENT AGENDA
Recommend a Motion to:
Approve the Consent Agenda.
9. A. Copier Replacement
9. B. Set Public Hearing for Repair or Removal of Unsafe or Dangerous Structure
9. C. Vacate a Portion of the Platted Access Control and Front Yard Setback on Lot 2, Block A, Brookwood 3rd Addition
9. D. Assessment Ordinance for Nuisance Abatement
9. E. Brush Grinding
10. ADJOURNMENT
3 City Council Meeting 5. A. Meeting Date: 10/13/2015 Submitted By: Karen Friend, City Clerk Agenda Category: New Business
Subject: Regular Meeting Minutes - September 22, 2015
Recommend a Motion to: Approve the regular meeting minutes of September 22, 2015, as presented.
Attachments 101315City Council Minutes
4 CITY OF DERBY MEETING OF THE CITY COUNCIL REGULAR MEETING September 22, 2015 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 Ed Friesen, Madison Avenue United Methodist Church
4. ROLL CALL COUNCIL MEMBERS PRESENT: MAYOR Randy White WARD I Rocky Cornejo, Tom Keil WARD II Vaughn Nun WARD III Cheryl Bannon, Chuck Warren WARD IV Tom Haynes COUNCIL MEMBERS ABSENT: WARD II Jack Hezlep WARD IV Mark Staats
5. CONSIDERATION OF MINUTES
5. A. Regular Meeting Minutes - September 8, 2015
Recommend a Motion to: Approve the regular meeting minutes of September 8, 2015, as presented.
Moved by Tom Haynes, seconded by Vaughn Nun, to approve the regular meeting minutes of September 8, 2015, as presented. Vote: 6 - 0
September5 22, 2015 Page 1 of 13
Other: Jack Hezlep (ABSENT) Mark Staats (ABSENT)
6. PUBLIC FORUM
Eric Gustafson, Library Director, introduced Cori Dodds who is the Event Coordinator which is a new joint position with the City and the library. She will primarily handle booking the facility and meeting spaces for The Venue, Warren Riverview Park, and library. Cori will do some other things like publicity for the library, but primarily the next year and a half, she will be focused on the new facilities, promoting them, getting a web presence established and booking reservations. She came to us from Via Christi, where she wrote internal and external publications. She also worked forThe Wichita Eagle, and previously worked at the library.
Ms. Dodds said she is excited for the opportunity. It will be a lot of new space and new ground. She is entering a position that has not been done before, but she knows there is a lot of great support.
Council Member Bannon said thank you for the moment of silence. Jim Craig passed away peacefully in the arms of his wife surrounded by friends, after a three year battle with cancer. Here are some things she learned from Jim: Make each day count, we don't know how many we have. Pick your battles, you don't have to die on every hill. No matter how you look, don't hide, be present. Be proud of who you are and what you stand for. Give of yourself to others. Never give up the fight to the end.
Mayor White said everyone involved with the BBQ deserved a big thank you. It was another successful Derby event. Our sponsors did a fabulous job, and we look forward to next year's event. We will have some challenges next year because we will be in the middle of a road construction project.
Kathy Sexton, City Manager, introduced Dennis Poteete from the Planning Commission and Andrew Nelson, owner & operator of Chick-fil-A. Mr. Nelson was part of the ball fields research team.
7. PRESENTATIONS
7. A. Ball Field Research Presentation
Steve White, Assistant Public Works Director, gave a presentation on ball field
September6 22, 2015 Page 2 of 13
Steve White, Assistant Public Works Director, gave a presentation on ball field research. He introduced the research team: Chris Drum, DRC Director of Facilities, Darren Hornbeck, DRC Assistant Sports Director, Andrew Nelson, Mike Day, Robert Mendoza and Steve White.
Mayor White asked how many acres are in the Bixby, Oklahoma park.
Mr. White responded the Bixby Sports Complex is 114 acres.
Mayor White asked how big is the Great Bend park.
Mr. White replied they have a total of 61 acres, and 24 acres of those 61 are irrigated.
Council Member Warren asked of the sites you looked at, what sites did you like and why.
Mr. White said each site had unique features. Whether it be the splash pad, or playground structure or their infields or shade structures, concession stands, each one of them had some uniqueness. We want to take a little of each one of those and incorporate them into Decarsky Park.
Council Member Warren asked how many fields will we need to be competitive to bring in tournaments. Are eight fields going to be enough? One park showed twelve.
Mr. White said that is one of the challenges we expect - to be able to identify how many fields we need, what size of fields, do we want to go with turf or grass infields, and how are we going to do this. A lot of this is going to be dependent on the type of programming information that we will receive from the DRC.
Council Member Warren asked as families travel to these tournaments, a lot of them use campers. Have we thought about identifying areas for a campground? Is that one of the things on our radar?
Kathy Sexton, City Manager, said the Mulvane casino built one. They ended up building it bigger than they originally planned. We will keep an eye on it. It is a good location right off the highway and pretty close to us.
Council Member Warren asked if there any design firms you want to stay away from? Are there some that you want to be sure you contact?
Mr. White said there is one we want to include in the process.
Council Member Warren asked if the dog park was incorporated in the sales
September7 22, 2015 Page 3 of 13
tax election information. Was it included in the vote? Are we locked into this park for the dog park? Is the option available for us to look at another location within the city? If we decide to build twelve diamonds instead of eight diamonds, could we put those on this location and go elsewhere for the dog park?
Ms. Sexton said the dog park was a part of the informational campaign about the sales tax. We definitely promised the voters we would have a dog park funded by the sales tax. It was very minor part, about $100,000. We have to think about parks in a global sense. We can't think of Derby, which is the 18th largest city in the state, limiting ourselves to one dog park. The dog parks are not huge; it is a small area with a fence and amenities. It is not something you could replace and add one more ball field to this park. We have always said the dog park would be a small one at this location.
Council Member Warren said we have seen dog parks that are three to five acres. You can put a number of ball fields on three to five acres.
Ms. Sexton said she remembers stating and writing in documents that this would be a small dog park. High Park is 121 acres and Garrett Park is 40 acres. This park will be between the size of Garrett Park and High Park. Does that mean that is the only dog park planned for the city? No. Originally before this park was planned, we were looking at Riley Park, and asked if that one ball field was big enough for a dog park. Those options could accommodate a large dog and a small dog park.
Council Member Bannon asked if Tomp Decarsky was not only supporting baseball and softball but was part of this land donation planned for a dog park as well.
Ms. Sexton said yes.
Council Member Bannon asked When we design this, are we going for a dream field, and we will have to find out how to finance it? Are we going for a more practical or realistic design?
Mr. White said many of these complexes wished they had more ball fields. Pratt has a four-plex and they wish they had more fields. We need to think long-term 20 or 30 years down the road for the city's long-term growth and to attract regional tournaments to our city.
Council Member Bannon said the land and space is going to limit that. We are going to wish we had space for more. She is talking about turf and all of the amenities that you can put in, versus having different levels on building it. We don't have a funding source for this right now. Are we dream designing this or are we realistically designing this?
September8 22, 2015 Page 4 of 13
Ms. Sexton answered the research team was formed to learn about other's successes, as well as their mistakes, so we know better as we hire an architect and contractors, so we can direct this project in a more intelligent fashion. The team with the DRC and our park and facilities employees is stronger than it has been in many years. There is a team approach going on. The questions you are asking will be Council decisions. We told the voters that there were many things to be done. We told the Council when you voted for Central Park, if you do this signature park in the middle of town, we will have less money for the ball fields park. When we went to the voters for the sales tax, we thought we had $1 to $1.5 million from the DRC for the ball fields park, but that went away. We started the sales tax with current projections, not able to build with all of the bells and whistles. We said throughout the election campaign for the sales tax that we wanted to think big thoughts, design for what we want and need for now and in the future, but build what we can afford. Some of these master plans have not all been built, and they come in phases. We are at least a year away from making those decisions. When we hire architects, we want to base financial decisions upon facts and projections. We know how many tournaments will be held. We have four fields at High Park and several good fields at Garrett Park. We want to have three good parks with several ball fields at each one. We have been making substantial improvements to these parks. In summer ball, everyone wants to play at the same time. We will have local recreational leagues, high school kids, adult ball and tournaments that will come to town. We will include people involved in ball leagues in town, and we have rec commission people who are very interested. We will include them and have some healthy discussions. Everyone will not get what they want.
Council Member Bannon said that answered many questions. Citizens will want these answers.
Council Member Keil asked about the City's role and commitment versus the program side.
Ms. Sexton said that is sort of like a summer swimming pool. In a community like Derby that has a 30-year history of having a rec commission to do programming, to organize summer ball leagues, and to run summer pools. We have one of the premier, well-funded and well-organized rec commissions in the state and we're proud of that. That means the city staff do not do that. We build facilities like Rock River Rapids. The DRC runs it through a contract with us. We need to respect the history that this community has, but there are other players besides the rec commission, whether that be individuals who decide to start a league, traveling teams, or competitive leagues. They are the ones that choose to travel out of town for games. There will be decisions made about whether we host such tournaments or are the priorities to have Derby kids on Derby rec leagues as opposed to driving to Haysville or west Wichita or
September9 22, 2015 Page 5 of 13
Mulvane because they can't get on a team here in Derby.
Mayor White said this was an outstanding presentation. We need to copy other people's ideas. He looks forward to the involvement of the community as we get into the process. It seems to be a hot item with some segments of the population. He likes the shade ideas from other ball fields. He asked if the study of other ball fields included warm-up areas for the players? How many times has a stray ball during warm-up hit a spectator?
Mr. White said Hays has ample areas for player warm-up areas. We also saw a couple of ball fields that were too crowded together for safety.
Mayor White said we will have issues with noise and lighting, and we will hear that from the neighbors. He is a big fan of splash parks. He does not know if it is doable, but he would not immediately mark it off the list either.
8. NEW BUSINESS
8. A. Legislative Update
Background: During the 2015 legislative session, several bills affecting cities were passed by the Kansas Legislature. City staff reviews applicable laws to determine options for implementation of the law. This summary includes bills that will require changes in City ordinances, policies, or operations to comply with the new state laws. HB 2104: Moves municipal elections from the spring to the fall of odd years, keeping them separate from state and national elections. Terms that were set to end in April 2017 are now extended to January 2018. Candidates must file for office at the Sedgwick County Election Office instead of City Hall. The City Clerk must notify the Election Office by May 1 of any upcoming openings in the council. The filing deadline for city offices is June 1. Primary elections are the first Tuesday in August with the general election occurring on the first Tuesday following a Monday in November. Compliance with this law will require amendments to current ordinances, which will be drafted and presented at an upcoming City Council meeting. HB 2183: Prohibits cities and counties from regulating or prohibiting the placement or number of political signs on private property and the unpaved right-of-way for city streets and county roads. Cities and counties are still allowed to regulate size and establish a setback distance. These prohibitions are
September10 22, 2015 Page 6 of 13
in place for 45 days before an election and two days after. The City’s zoning code is currently being updated to comply with this law and will be brought before the Council for approval at the November 10 meeting.
HB 2331: Prohibits cities from regulating the sale of firearms and ammunition. The bill prevents requiring any fees, licenses, permits or taxation (except retail sales tax). This law may affect multiple city ordinances including business registration and the zoning code. Staff continues to analyze and will bring recommendations to a future City Council meeting.
SB 45: Allows anyone over the age of 21 to carry a concealed firearm unless they are otherwise prohibited by state or federal law. Under the law, cities may prohibit firearm possession by employees in places other than public buildings. For purposes of public buildings, concealed carry without a license is considered the same as with a license. The City’s personnel policy is being updated to comply with this law and will be brought before the Council for approval on October 27.
Other bills of note this session include:
HB 2256: Gives the Attorney General authority (was previously the District Attorney) to police the Kansas Open Meetings Act and Kansas Open Records Act. If the Attorney General finds a public agency in violation of either act, he can enter into administrative remedies with the agency, including civil fines and consent orders requiring all members of the public agency to complete approved training concerning the act violated.
H Sub for SB 117: The Transportation Network Company Services Act. Known as the “UBER bill,” this legislation establishes requirements for drivers as well as protection for lienholder’s interest in the vehicles used. Cities are prohibited from applying taxicab ordinances to these networks or their drivers but are free to create ordinances specific to a transportation network company.
HB 2223: Provides cities with a mechanism to allow small liquor-related businesses in a commercial district to be located within 200 feet from a school or church.
HB 2003: Requires annexation of any city-owned land be approved by a 2/3 majority vote of the county commission in the same way as land not adjoining the City.
Sen. Sub for HB 2109: Imposes a new tax lid on local governments beginning in 2018 and requires cities and counties to hold a public election to raise property tax revenue by more than the rate of inflation (CPI).
Legal Considerations:
September11 22, 2015 Page 7 of 13
Incorporating state requirements into the city code improves transparency, prevents inconsistent regulations, and assists the public in understanding applicable requirements. Necessary amendments to criminal laws will be incorporated during the annual update to the public offense code. Recommend a Motion to: Receive and file the report.
Rebecca Likiardopoulos, Management Assistant, presented the staff report.
Mayor White said it was so easy to come to City Hall and file our documents for candidacy with our City Clerk. It will be difficult to have to go to another building to file.
Council Member Keil asked about history on this bill. Is this the consensus of city governments across the state that wanted this?
Kathy Sexton, City Manager, said we don't know of any city or school district that were in favor of this bill. Senator Dan Kerschen, who represents a little bit of the west side of Derby, said none of the school boards or city councils in his district were in favor of this. Derby opposed it and worked against it. Some legislators had their minds made up to pass it. Some legislators found middle ground on a couple of the particulars to make this bill not quite so onerous on cities and school boards.
Council Member Bannon asked what if we want to have a special election.
Ms. Sexton said that was one of the concessions made. Cities worked against that pretty hard. The legislature wanted to restrict any city or school board from having any election other than in August or November, but that did not pass.
Council Member Warren asked Ms. Butler if regulating the political signs did not change other signs. Do you anticipate a free speech challenge based on the content of the sign?
Jacque Butler, City Attorney, replied House Bill 2183 only applied to political signs. However, the U.S. Supreme Court issued an opinion this summer that deals with content regulation. We are currently reviewing that and how it is going to interplay with House Bill 2183. She and Austin Parker, Assistant City Attorney, will attend some training in a few weeks where sign regulation and how to merge these two is going to be discussed. For this initial clean-up of the zoning code that is coming before the Planning Commission and then to you at the November 10th meeting, we will amend the sign regulations to comply with House Bill 2183. As we get some additional analysis and training, we will
September12 22, 2015 Page 8 of 13
probably be coming back with Article 7 which is our sign regulation, to address the larger content issue in the future.
Tom Haynes moved, Cheryl Bannon seconded, to receive and file the report.
VOTE: 6-0 Other: Hezlep (ABSENT) Staats (ABSENT)
Council Member Bannon said our lack of attitude is not due to your report. It is more what is in the substance of this report. We are all taken aback by what the state leadership is currently doing.
8. B. Elimination of ACE Grant Program
Background: On February 24, some members of the City Council expressed interest in re-considering the purpose of ACE grants. On April 1, the ACE Grant Committee discussed options and determined the original mission of ACE grants set in 2006 (to expand the types of events held in Derby) has been accomplished. The committee recommended elimination of the program. Key events (such as the BBQ Festival, Shop Derby and perhaps others) could be continued using the normal budget process. The annual call for new grant applications could be eliminated. At the June 2 City Council Budget Workshop, a review was conducted of how the fee revenue collected from fireworks vendors is spent on public safety education and equipment, ACE grants, the annual fireworks event on July 4, and other public events and community enhancements. On July 7 at the City Council Retreat, Council members discussed various options and directed staff to prepare an amendment to the fireworks section of the municipal code to eliminate the ACE grant program. The attached ordinance eliminates the ACE grant program and includes several other minor updates. Liability insurance requirements are updated to match recommendations from Traveler's, which is the City's insurance provider. The baseline allocation for the annual public fireworks display on July 4 is updated from $12,000 set in 2009 to $14,000. The 5% accelerator is continued to provide adequate funding for the event and fireworks-related activities. Financial/Sustainability Considerations:
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$12,610 was included in the 2015 budget for ACE grants ($3,000 for the BBQ Festival, $2,000 for Shop Derby, $1,500 for the Kite Festival, and $3,000 for shade structures at Garrett Park). These commitments have either already been paid or will be honored over the next several months. $12,616 was included in the 2016 budget for the ACE grant program. This budget will provide for annual City-sponsored events (BBQ Festival and Shop Derby) at the 2015 rates unless the Council determines otherwise in the future. The DRC has been informed of the notion of eliminating the grant program and has indicated it has appreciated the City underwriting the Kite Festival in its initial three years and does not need the City's continued funding for future events. Requests for special projects (like park shade structures or Christmas holiday lights) or outside requests (like Summerfest or Derby Twins Baseball) will be reviewed when received and presented to the City Council for consideration. Recommend a Motion to: Approve the ordinance as presented.
Kathy Sexton, City Manager, presented the staff report.
Council Member Haynes said this is the evolution of the continuation of this process and the next step to move forward as the city evolves.
Moved by Tom Haynes, seconded by Vaughn Nun, to approve the ordinance as presented. Vote: 6 - 0
Other: Jack Hezlep (ABSENT) Mark Staats (ABSENT)
9. CONSENT AGENDA
Recommend a Motion to: Approve the Consent Agenda.
9. A. Land Acquisition for the Nelson Dr. and Meadowlark Blvd. Intersection Project
Background: The Capital Improvement Plan (CIP) includes a project to re-align Nelson
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Dr. at Meadowlark Blvd. A traffic engineering study found the accident rate at the intersection to be more than triple the average rate for intersections along the state highway system. The study recommended re-alignment of the intersection to improve safety. The City secured federal safety funding administered by the Kansas Department of Transportation (KDOT) to help re-align the intersection. Realignment will require the City to acquire land from several property owners. Due to the federal funding for the project, land acquisition must be completed in compliance with strict federal guidelines. The City has contracted with Land Acquisitions Inc. (LAI) to assist in valuing the properties and negotiating purchases in accordance with federal requirements. LAI has recommended payment of $30,000 to Derby Pentecostal Holiness Church which owns the property at 230 Fernell St. In exchange for payment, the City will receive the right-of-way and temporary easement necessary to construct the project. The recommended purchase price includes payment for trees, driveway relocation and other impacts of the project. The City has agreed that the Church will not be required to relocate its existing sign along Nelson Dr. as part of the project, and to construct an approach along Nelson Dr. to serve a future parking lot. The Church has agreed to accept the $30,000 as full and fair compensation for the real estate and damages of the other impacts. Financial/Sustainability Considerations: The CIP anticipates the need for and includes funding to acquire land for this and other street projects. Payment of $30,000 appropriately balances the needs of the public with the impact to the church property. Recommend a Motion to: Authorize execution of an agreement with Derby Pentecostal Holiness Church in the amount of $30,000 to purchase land and easement rights necessary for construction of improvements at the intersection of Nelson Dr. and Meadowlark Blvd.
9. B. 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.
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The City has incurred costs in abating nuisances found to exist upon certain properties. This ordinance includes 11 properties, of which 2 are possibly in foreclosure, 4 are rentals, 3 are vacant, and 2 are owner occupied. 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 the 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 $1,295 which includes the City's mowing and trash removal costs plus administrative fees. Legal Considerations: City ordinance authorizes 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.
9. C. Design of Waterline Replacement Project
Background: In 2014, the City contracted with Professional Engineering Consultants (PEC) to develop a waterline replacement manual. The manual identifies and prioritizes repair of water infrastructure failures and alterations to benefit water pressure and fire flows throughout Derby. In 2015, Public Works implemented corrective measures to alleviate problematic mainline failure areas. This first project replaced waterlines, valves, hydrants and meters on two blocks of Derby Ave. between Lincoln Street and James Street. The 2016 scope of work includes Prairie Lane south of Meadowlark Blvd. to Kokomo Avenue; Kokomo south to Lincoln; and Lincoln from Buckner Street to Woodlawn Blvd. Work will replace and upsize existing water lines from 4 inches to 6 inches, replace valves and install fire hydrants.
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Financial/Sustainability Considerations: City staff negotiated a fee of $15,500 for design services with PEC. Funding is available in the 2015 budget. Recommend a Motion to: Authorize execution of a professional services agreement with PEC in the amount of $15,500 to design the 2016 Waterline Replacement Project.
Moved by Tom Haynes, seconded by Tom Keil, to approve the Consent Agenda, as presented. Vote: 6 - 0
Other: Jack Hezlep (ABSENT) Mark Staats (ABSENT)
10. ADJOURNMENT
Moved by Tom Haynes, seconded by Cheryl Bannon, to adjourn the meeting at 7:28 p.m. Vote: 6 - 0
Other: Jack Hezlep (ABSENT) Mark Staats (ABSENT)
______Randy White, Mayor
ATTEST:
______Karen Friend, City Clerk
September17 22, 2015 Page 13 of 13
City Council Meeting 7. A. Meeting Date: 10/13/2015 Submitted By: Rebecca Likiardopoulos, Management Assistant Agenda Category: Presentation
Subject: United Way of the Plains Proclamation
Guests: Kristy Bansemer, Public Information Officer, City of Derby Craig Wilford, Superintendent, Derby Public Schools
Background: The City of Derby is holding its annual United Way Employee Campaign October 5 to 23. Derby Public Schools also is holding its annual employee campaign this month and desires to participation in this public opportunity to promote the value of United Way to the Derby community.
Attachments United Way Proclamation
18 Of THE CITY OF DERBY, KANSAS Founded in 1869
WHEREAS, United Way of the Plains has been a constant source of support for our community for 93 years providing programs that make our community stronger in the areas of health, education and income;
WHEREAS, Derby residents received assistance through a United Way funded program nearly 6,500 times last year; and,
WHEREAS, United Way of the Plains provides Derby residents opportunities to become in- volved in their community through volunteer opportunities through the United Way Volunteer Center;
NOW, THEREFORE BE IT RESOLVED, I, Randy White, Mayor of the City of Derby, do hereby proclaim the week of October 19, 2015 as
UNITED WAY OF THE PLAINS WEEK
in the City of Derby, Kansas and urge all citizens to join in this observance.
Mayor, City of Derby
19 City Council Meeting 8. A. Meeting Date: 10/13/2015 Submitted By: Jean Epperson, Director of Finance Agenda Category: New Business
Subject: Resolution Authorizing the Sale of General Obligation Bonds
Background: The proposed action, which is the authorization to market bonds, is the final step before actual approval of the sale of general obligation bonds. Special Assessment portion: General Obligation Bond Series 2015-C will provide permanent financing for special assessment internal improvement projects within the City of Derby as follows: Tall Tree Addition Phase 2 - Street, water, sanitary sewer and storm sewer. USD 260 Middle School Addition - Street, storm sewer, water main, detention basin and mass grading, sanitary sewer, traffic signal at Rock Road and Freedom Street, accel/decel land on east side of Rock Road, internal sidewalk and Rock Road sidewalk. Anderson Farm Commercial - Left turn lane on Rock Road, accel/decel lanes and sidewalk on west side of Rock Road, and sanitary sewer. Stone Creek 4th Addition, Phase 2 - Street and water line. The "pay-in" period for advance payment of special assessments associated with this bond issue ended Tuesday, October 6th at noon. At that time, no pre-payments of specials were received. The bond sale will be held November 10, and the bids will be presented during the regular council meeting that evening. Bids for the bonds can be submitted via the Internet using the services of PARITY at www.tm3.com in addition to the usual methods of facsimile and mail. The proposed resolution provides authorization for redemption of one project in Temporary Note Series 2014-1, a sidewalk in the USD Middle School Addition, and the balance of Temporary Note Series 2013-1. These notes provided interim financing for most of the special assessment projects mentioned above.
20 Financial/Sustainability Considerations: Bonds to finance the special assessment projects are planned to be issued for $3,890,000. In addition to the special assessment projects, the bonds will provide permanent financing of $985,000 for reconstruction of the intersection at Nelson Drive and Meadowlark. The total cost of this project is estimated to be $1.6 million once design, land acquisition and the City's share of the construction are included. This project will be bid and managed by KDOT with state funding projected at $800,000. At this time, we are financing only a portion of the cost of Nelson Drive and Meadowlark to take advantage of the lower borrowing cost of "bank qualified" bonds. The City can issue up to $10 million per year of bonds as "bank qualified" which carry a lower interest rate than "non-bank qualified"' bonds. The balance of the project will be financed in 2016 with several other projects identified in the Capital Improvement Plan.
Legal Considerations: Gilmore & Bell serves as the City's bond counsel. The bonds would be issued in full compliance with the Constitution and statutes of the State of Kansas. Local resolutions, ordinances and policies have been adhered to. The resolution provides for approval of the Preliminary Official Statement in substantially the form presented which outlines the details of the offering to prospective buyers of the bonds.
Recommend a Motion to: Approve a resolution authorizing the sale of General Obligation Bond Series 2015-C of the City of Derby.
Attachments Bond Resolution Bond POS
21 Gilmore & Bell, P.C. 10/05/2015
RESOLUTION NO. [__]-2015
A RESOLUTION AUTHORIZING THE OFFERING FOR SALE OF GENERAL OBLIGATION BONDS, SERIES 2015-C, OF THE CITY OF DERBY, KANSAS.
WHEREAS, the City of Derby, Kansas (the “Issuer”), has previously authorized certain internal improvements described as follows (collectively the “Improvements”):
Authority Project Description Res. No. (K.S.A.) Amount Tall Tree Addition Storm Water Sewer, Phase 2 28-2010 12-6a01 et seq. $ 246,347.23 Streets, Phase 2 27-2010 12-6a01 et seq. 206,987.64 Water Line, Phase 2 26-2010 12-6a01 et seq. 73,221.13 Sanitary Sewer, Phase 2 25-2010 12-6a01 et seq. 74,260.26 USD 260 Middle School Addition Rock Road Sidewalk 31-2013 12-6a01 et seq. 24,584.45 Traffic Signalization 30-2013 12-6a01 et seq. 42,994.09 Water Main, Phase 1 24-2013 12-6a01 et seq. 251,071.32 Detention Basin and Mass Grading 28-2013 12-6a01 et seq. 702,521.04 Street and Storm Sewer, Phase 1 36-2013 12-6a01 et seq. 834,129.87 Internal Sanitary Sewer 23-2013 12-6a01 et seq. 201,087.41 Rock Road Accel/Decel Lane 29-2013 12-6a01 et seq. 117,426.56 Anderson Farm Commercial, Anderson Farm Commercial 2nd & USD 260 Middle School Additions Rock Road Left Turn Lane 21-2013/14-2015 12-6a01 et seq. 213,978.80 Rock Road Traffic Signalization 22-2013/15-2015 12-6a01 et seq. 54,745.17 Anderson Farm Commercial & USD 260 Middle 20-2013/9-2015 12-6a01 et seq. 105,998.23 School Additions – Sanitary Sewer Anderson Farm Commercial & Anderson Farm 35-2013/13-2015 12-6a01 et seq. 127,150.33 Commercial 2nd Additions – Rock Road – West Side Accel/Decel Lane Stone Creek 4th Addition Water Line, Phase 2 10-2010 12-6a01 et seq. 61,112.94 Streets, Phase 2 11-2010 12-6a01 et seq. 324,231.27 USD 260 Middle School Addition – Internal 32-2013 12-6a01 et seq. 74,842.14 Sidewalk Improvements-Phase 1 Anderson Farms Commercial 2nd Addition – 102-2007 12-6a01 et seq. 7,752.27 Sidewalk Anderson Farms Commercial 3rd Addition – 104-2007/16-2015 12-6a01 et seq. 15,226.72 Sidewalk Farborough Estates Addition – Street 45-2013 12-6a01 et seq. 38,202.38 Oak Ridge Estates Addition and adjoining parcels 46-2013 12-6a01 et seq. 47,128.75 – Street Nelson Drive and Meadowlark – Main Trafficway Ord. No. 2127/ 12-685 et seq. 1,910,000.00 Improvements Res. No. 31-2012
JLN\600183.70277\SALEDOCS (Signature Page to Sale Resolution) 22 Total $5,755,000.00
WHEREAS, the Issuer desires to issue its general obligation bonds in order to permanently finance the costs of such Improvements and to retire the following temporary notes of the Issuer, which were issued to temporarily finance a portion of the costs of the Improvements (collectively the “Notes”):
Dated Maturity Original Outstanding Redemption Redemption Series Date Date Amount Amount Amount Date 2013-1 09/17/2013 12/15/2015 $4,630,000 $4,630,000 $4,630,000 N/A 2014-1 12/15/2014 12/01/2017 3,885,000 3,885,000 75,000 12/15/2015
WHEREAS, the Issuer proposes to issue its general obligation bonds to pay the costs of the Improvements and to retire the Notes; and
WHEREAS, the Issuer has selected the firms of Piper Jaffray & Co., Leawood, Kansas and The Public Finance Group, Inc., Wichita, Kansas (collectively “Financial Advisor”) as financial advisor for Issuer; and
WHEREAS, the Issuer desires to authorize the Financial Advisor to proceed with the offering for sale of said general obligation bonds and related activities; and
WHEREAS, one of the duties and responsibilities of the Issuer is to prepare and distribute a preliminary official statement relating to said general obligation bonds; and
WHEREAS, the Issuer desires to authorize the Financial Advisor and Gilmore & Bell, P.C., Wichita, Kansas, the Issuer’s bond counsel (“Bond Counsel”), in conjunction with the Director of Finance and the Clerk, to proceed with the preparation and distribution of a preliminary official statement and notice of bond sale and to authorize the distribution thereof and all other preliminary action necessary to sell said general obligation bonds.
BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF DERBY, KANSAS, AS FOLLOWS:
Section 1. The Issuer is hereby authorized to offer for sale the Issuer’s General Obligation Bonds, Series 2015-C (the “Bonds”) described in the Notice of Bond Sale, which is hereby approved in substantially the form presented to the governing body this date. Proposals for the purchase of the Bonds shall be submitted upon the terms and conditions set forth in said Notice of Bond Sale, and shall be reviewed by the City Manager, Director of Finance, Financial Advisor and Bond Counsel as soon after the submittal hour as possible. The Director of Finance is hereby authorized to award the sale of the Bonds to the submitter of the best proposal as determined pursuant to the provisions of the Notice of Bond Sale or to reject all proposals; provided, however, that the principal amount of the Bonds shall not exceed $5,000,000 and the true interest cost of the Bonds shall not exceed 3.00%. All proposals for the purchase of the Bonds shall be delivered to the governing body at its meeting to be held on the sale date referenced in the Notice of Bond Sale, at which meeting the governing body shall ratify the award of the sale of the Bonds or the rejection of all proposals.
Section 2. The Preliminary Official Statement, dated October 13, 2015, is hereby approved in substantially the form presented to the governing body this date, with such changes or additions as the Mayor and Director of Finance shall deem necessary and appropriate, and such officials and other representatives of the Issuer are hereby authorized to use such document in connection with the sale of the Bonds.
23 Section 3. The Director of Finance, in conjunction with the Financial Advisor and Bond Counsel, is hereby authorized and directed to give notice of said bond sale by publishing a summary of the Notice of Bond Sale not less than 6 days before the date of the bond sale in a newspaper of general circulation in Sedgwick County, Kansas, and the Kansas Register and by distributing copies of the Notice of Bond Sale and Preliminary Official Statement to prospective purchasers of the Bonds.
Section 4. For the purpose of enabling the purchaser of the Bonds (the “Purchaser”) to comply with the requirements of Rule 15c2-12 of the Securities and Exchange Commission (the “Rule”), the Mayor and Director of Finance or other appropriate officers of the Issuer are hereby authorized: (a) to approve the form of said Preliminary Official Statement and to execute the “Certificate Deeming Preliminary Official Statement Final” in substantially the form attached hereto as Exhibit A as approval of the Preliminary Official Statement, such official’s signature thereon being conclusive evidence of such official’s and the Issuer’s approval thereof; (b) covenant to provide continuous secondary market disclosure by annually transmitting certain financial information and operating data and other information necessary to comply with the Rule to the Municipal Securities Rulemaking Board; and (c) take such other actions or execute such other documents as such officers in their reasonable judgment deem necessary to enable the Purchaser to comply with the requirement of the Rule.
Section 5. The Issuer agrees to provide to the Purchaser within seven business days of the date of the sale of Bonds or within sufficient time to accompany any confirmation that requests payment from any customer of the Purchaser, whichever is earlier, sufficient copies of the final Official Statement to enable the Purchaser to comply with the requirements of the Rule and with the requirements of Rule G-32 of the Municipal Securities Rulemaking Board.
Section 6. The Mayor, City Manager, Director of Finance, Clerk and the other officers and representatives of the Issuer, the Financial Advisor and Bond Counsel are hereby authorized and directed to take such other action as may be necessary to carry out the sale of the Bonds. Such officials are also directed and authorized to make provision for payment and/or redemption of the Notes from proceeds of the Bonds and other available funds.
Section 7. This Resolution shall be in full force and effect from and after its adoption.
ADOPTED by the governing body on October 13, 2015.
(SEAL) Mayor ATTEST:
Clerk
24 EXHIBIT A
CERTIFICATE DEEMING PRELIMINARY OFFICIAL STATEMENT FINAL
October 13, 2015
To:
Re: City of Derby, Kansas, General Obligation Bonds, Series 2015-C
The undersigned are the duly acting Mayor and Director of Finance of the City of Derby, Kansas (the “Issuer”), and are authorized to deliver this Certificate to the addressee (the “Purchaser”) on behalf of the Issuer. The Issuer has previously caused to be delivered to the Purchaser copies of the Preliminary Official Statement (the “Preliminary Official Statement”) relating to the above-referenced bonds (the “Bonds”).
For the purpose of enabling the Purchaser to comply with the requirements of Rule 15c2-12(b)(1) of the Securities and Exchange Commission (the “Rule”), the Issuer hereby deems the information regarding the Issuer contained in the Preliminary Official Statement to be final as of its date, except for the omission of such information as is permitted by the Rule, such as offering prices, interest rates, selling compensation, aggregate principal amount, principal per maturity, delivery dates, ratings, identity of the underwriters and other terms of the Bonds depending on such matters.
CITY OF DERBY, KANSAS
By: Title: Mayor
By: Title: Director of Finance
JLN\600183.70277\SALEDOCS (10-05-15) A-1 25 PRELIMINARY OFFICIAL STATEMENT NEW ISSUE – BOOK-ENTRY ONLY RATINGS: S&P “[____]” See “Bond Ratings” herein In the opinion of Gilmore & Bell, P.C., Bond Counsel to the Issuer, under existing law and assuming continued compliance with certain requirements of the Internal Revenue Code of 1986, as amended (the “Code”): (1) the interest on the Bonds [(including any original issue discount properly allocable to an owner thereof)] is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; (2) the interest on the Bonds is exempt from income taxation by the State of Kansas; and (3) the Bonds are “qualified tax-exempt obligations” within the meaning of Code § 265(b)(3). See “TAX MATTERS – Opinion of Bond Counsel” in this Official Statement. $4,875,000* CITY OF DERBY, KANSAS GENERAL OBLIGATION BONDS SERIES 2015-C Dated: December 10, 2015 Due: December 1, As shown on the inside cover The General Obligation Bonds, Series 2015-C (the “Bonds”) will be issued by the City of Derby, Kansas (the “Issuer”), as fully registered bonds, without coupons, and, when issued, will be registered in the name of Cede & Co., as
or shall there be any sale of these securities in any jurisdiction in registered owner and nominee for The Depository Trust Company (“DTC”), New York, New York. DTC will act as securities depository for the Bonds. Purchases of the Bonds will be made in book-entry form, in the denominations of $5,000 or any integral multiple thereof (the “Authorized Denomination”). Purchasers will not receive certificates representing their interests in Bonds purchased. So long as Cede & Co. is the registered owner of the Bonds, as nominee of DTC, references herein to the Bond owners or registered owners shall mean Cede & Co., as aforesaid, and shall not mean the Beneficial Owners (as herein defined) of the Bonds. Principal will be payable annually on December 1, beginning in 2016, and semiannual interest will be payable on June 1 and December 1, beginning on June 1, 2016 (the “Interest Payment Dates”). Principal will be payable upon presentation and surrender of the Bonds by the registered owners thereof at the office of the ities bemay not sold nor may offers beto buy accepted prior tothe Officialthe time Statement Treasurer of the State of Kansas, Topeka, Kansas, as paying agent and bond registrar (the “Paying Agent” and “Bond Registrar”). Interest payable on each Bond shall be paid to the persons who are the registered owners of the Bonds as of the close of business on the fifteenth day (whether or not a business day) of the calendar month preceding each interest payment date by check or draft of the Paying Agent mailed to such registered owner, or in the case of an interest payment to a registered owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer. So long as DTC or its nominee, Cede & Co., is the Owner of the Bonds, such payments will be made directly to DTC. DTC is expected, in turn, to remit such principal and interest to the DTC Participants (herein defined) for subsequent disbursement to the Beneficial Owners. The Bonds and the interest thereon will constitute general obligations of the Issuer, payable in part from special assessments levied upon the property benefited by the construction of certain public improvements (as hereinafter described in the section entitled “THE PROJECTS”), and if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer, with the balance payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. MATURITY SCHEDULE LISTED ON INSIDE COVER PAGE At the option of the Issuer, Bonds maturing on December 1, 2023, and thereafter will be subject to redemption and payment prior to maturity on December 1, 2022, or thereafter as described herein. [The Term Bonds are also subject to mandatory redemption as described herein.] See “THE BONDS - Redemption Provisions” herein. or to orunder the orlawssuch ofjurisdiction.registration securities qualification any The Bonds are offered when, as and if issued by the Issuer, subject to the approval of legality by Gilmore & Bell, P.C., Wichita, Kansas, Bond Counsel to the Issuer. Certain other legal matters will be passed upon by Jacqueline R. Butler, Esq., counsel for the Issuer. It is expected that the Bonds will be available for delivery through the facilities of DTC on or about December 10, 2015.
no circumstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy n BIDS WILL BE RECEIVED ON NOVEMBER 10, 2015 UNTIL 10:00 A.M., CENTRAL STANDARD TIME
THE COVER PAGE CONTAINS CERTAIN INFORMATION FOR QUICK REFERENCE ONLY. THE COVER PAGE IS NOT A SUMMARY OF THIS ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT, INCLUDING ALL APPENDICES ATTACHED HERETO TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION. “APPENDIX C – SUMMARY OF FINANCING DOCUMENTS” CONTAINS DEFINITIONS USED IN THIS OFFICIAL STATEMENT.
This Preliminary Official Statement and informationthecontained herein are subject to completionamendment.or These secur is delivered in final form. Under whichwould saleoffer, prior be unlawful such solicitation The date of this Preliminary Official Statement is October 13, 2015. * Subject to change. 26 $4,875,000* CITY OF DERBY, KANSAS GENERAL OBLIGATION BONDS SERIES 2015-C
MATURITY SCHEDULE
[SERIAL BONDS]
Stated Maturity Principal Annual Rate CUSIP 1 No. December 1 Amount* of Interest Yield (Base 249775) 2016 $ 60,000 ____% ____% 2017 295,000 ____% ____% 2018 295,000 ____% ____% 2019 300,000 ____% ____% 2020 310,000 ____% ____% 2021 310,000 ____% ____% 2022 325,000 ____% ____% 2023 325,000 ____% ____% 2024 330,000 ____% ____% 2025 340,000 ____% ____% 2026 340,000 ____% ____% 2027 270,000 ____% ____% 2028 280,000 ____% ____% 2029 280,000 ____% ____% 2030 290,000 ____% ____% 2031 220,000 ____% ____% 2032 55,000 ____% ____% 2033 60,000 ____% ____% 2034 60,000 ____% ____% 2035 65,000 ____% ____% 2036 65,000 ____% ____%
[TERM BONDS
Stated Maturity Principal Annual Rate CUSIP 1 No. December 1 Amount* of Interest Yield (Base 249775) $ ____% ____% ____% ____% 2036 ____% ____% ]
(All plus accrued interest, if any)
(1) CUSIP numbers have been assigned to this issue by Standard & Poor's CUSIP Service Bureau, a division of McGraw Hill Financial Inc., and are included solely for the convenience of the Owners of the Bonds. Neither the Issuer nor the Underwriter shall be responsible for the selection or correctness of the CUSIP numbers set forth above.
* Subject to change
27 IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICES OF THE BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.
THE BONDS HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE BONDS ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION. THE REGISTRATION, QUALIFICATION OR EXEMPTION OF THE BONDS IN ACCORDANCE WITH THE APPLICABLE SECURITIES LAW PROVISIONS OF THE JURISDICTIONS IN WHICH THESE SECURITIES HAVE BEEN REGISTERED, QUALIFIED OR EXEMPTED SHOULD NOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE JURISDICTIONS NOR ANY OF THEIR AGENCIES HAVE GUARANTEED OR PASSED UPON THE SAFETY OF THE BONDS AS AN INVESTMENT, UPON THE PROBABILITY OF ANY EARNINGS THEREON OR UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE.
THIS OFFICIAL STATEMENT CONTAINS STATEMENTS THAT ARE “FORWARD-LOOKING STATEMENTS” AS DEFINED IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. WHEN USED IN THIS OFFICIAL STATEMENT, THE WORDS “ESTIMATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. SUCH STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTEMPLATED IN SUCH FORWARD-LOOKING STATEMENTS. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF.
THIS PRELIMINARY OFFICIAL STATEMENT IS DEEMED TO BE FINAL (EXCEPT FOR PERMITTED OMISSIONS) BY THE ISSUER FOR PURPOSES OF COMPLYING WITH RULE 15c2-12 OF THE SECURITIES AND EXCHANGE COMMISSION.
IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED.
28 CITY OF DERBY, KANSAS
City Hall, 611 N. Mulberry Derby, Kansas 67037 (316) 788-1519
GOVERNING BODY
Randy White, Mayor
Rocky Cornejo, Councilmember Tom Keil, Councilmember Vaughn Nun, Councilmember Jack Hezlep, Councilmember Cheryl Bannon, Councilmember Chuck Warren, Councilmember Thomas Haynes, Council President & Councilmember Mark Staats, Councilmember
ADMINISTRATIVE OFFICERS
CITY MANAGER Kathleen B. Sexton
DIRECTOR OF FINANCE CITY CLERK Jean Epperson Karen Friend
CITY ENGINEER Daniel J. Squires, P.E.
CITY ATTORNEY BOND COUNSEL Jacqueline R. Butler, Esq. Gilmore & Bell, P.C. Derby, Kansas Wichita, Kansas
CERTIFIED PUBLIC ACCOUNTANTS Berberich Trahan & Co., P.A. Topeka, Kansas
FINANCIAL ADVISOR Piper Jaffray & Co. The Public Finance Group, Inc. Leawood, Kansas Wichita, Kansas
UNDERWRITER [TBD at Public Sale]
29 (i) No dealer, broker, salesman or other person has been authorized by the Issuer or the Underwriter to give any information or to make any representations with respect to the Bonds other than those contained in this Official Statement, and, if given or made, such other information or representations must not be relied upon as having been authorized by any of the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein concerning the Issuer has been furnished by the Issuer and other sources which are believed to be reliable, but such information is not guaranteed as to accuracy or completeness. The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the Federal Securities Laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Issuer since the date hereof. This Official Statement does not constitute a contract between the Issuer or the Underwriter and any one or more of the purchasers, Owners or Beneficial Owners of the Bonds. ______
TABLE OF CONTENTS
Page
INTRODUCTION ...... 1 THE BONDS ...... 2 THE DEPOSITORY TRUST COMPANY ...... 6 THE PROJECTS...... 8 SOURCES AND USES OF FUNDS ...... 9 RISK FACTORS AND INVESTMENT CONSIDERATIONS...... 9 BOND RATINGS ...... 11 LEGAL PROCEEDINGS...... 11 LEGAL MATTERS ...... 11 TAX MATTERS ...... 11 FINANCIAL ADVISOR...... 13 UNDERWRITING...... 13 AUTHORIZATION OF OFFICIAL STATEMENT ...... 13 APPENDIX A INFORMATION CONCERNING THE ISSUER ...... A-1 General ...... A-1 Economic Information ...... A-2 Financial Information...... A-6 Debt Structure...... A-13 APPENDIX B FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS (FOR THE FISCAL YEAR ENDED 12/31/2014)...... B-1 APPENDIX C SUMMARY OF FINANCING DOCUMENTS ...... C-1
[BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]
30 (ii) OFFICIAL STATEMENT
$4,875,000* CITY OF DERBY, KANSAS GENERAL OBLIGATION BONDS SERIES 2015-C
INTRODUCTION
General Matters
The purpose of this Official Statement is to furnish information relating to the City of Derby, Kansas (the “Issuer” or the “City”), and the General Obligation Bonds, Series 2015-C (the “Bonds”), of the Issuer, dated December 10, 2015 (the “Dated Date”).
The Appendices to this Official Statement are integral parts of this document, to be read in their entirety.
The Issuer is a municipal corporation duly organized and existing under the laws of the State of Kansas (the “State”). Additional information regarding the Issuer is contained in APPENDIX A to this Official Statement.
The materials contained on the cover page, in the body and in the Appendices to this Official Statement are to be read in their entirety. All financial and other information presented herein has been compiled by the Issuer. The presentation of information herein, including tables of receipts from various taxes, is intended to show recent historic information, and is not intended to indicate future or continuing trends in the financial position or other affairs of the Issuer. No representation is made that past experience, as might be shown by such financial or other information, will necessarily continue or be repeated in the future. Except to the extent described under the section captioned “LEGAL MATTERS,” Bond Counsel expresses no opinion as to the accuracy or sufficiency of any other information contained herein.
Definitions
Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in “APPENDIX C – SUMMARY OF FINANCING DOCUMENTS.”
Continuing Disclosure
The Securities and Exchange Commission (the “SEC”) has promulgated amendments to Rule 15c2-12 (the “Rule”), requiring continuous secondary market disclosure. In 2013 the Issuer adopted an Omnibus Continuing Disclosure Undertaking (the “Disclosure Undertaking”) wherein the Issuer covenants to provide annually certain Financial Information and Operating Data and other information necessary to comply with the Rule, and to transmit the same to the Municipal Securities Rulemaking Board. The Disclosure Undertaking modified previous undertakings the Issuer entered into pursuant to the Rule (the “Prior Undertakings”). In the Bond Resolution, hereinafter defined, the Issuer covenants with the Underwriter and the Beneficial Owners to apply the provisions of the Disclosure Undertaking to the Bonds. This covenant is for the benefit of and is enforceable by the Beneficial Owners of the Bonds.
In certain prior years, the Issuer has failed to file its Comprehensive Annual Financial Report (the “CAFR”) within the time period prescribed by the Disclosure Undertaking. The CAFRs contain the audited financial statements of, and statistical information regarding, the Issuer. The statistical information included in the CAFRs contains the information described as Operating Data in the Disclosure Undertaking; and contains most, but not all, of the information described as Operating Data in the Prior Undertakings. The Issuer’s filings for such years are set forth in the table below:
Fiscal Year Filing Time CAFR Ending December 31 Period (Days) Filing Date 2010 210 07/07/2011 2011 210 06/25/2012 1 2012 210 06/17/2013 2013 210 05/21/2014 2014 210 06/16/2015 2
1 The CAFR for the year ended December 31, 2011, was filed with EMMA on June 25, 2012, but was inadvertently only associated with the base CUSIP 249779. The CAFR was subsequently refiled with EMMA on August 27, 2012. 2 Additional operating data was filed with EMMA on July 21, 2015.
* Subject to change. 31 1 In addition, the Issuer issued numerous series of general obligation bonds and general obligation temporary notes in 2010 through 2015 payable from the same source of revenue as the Bonds. The official statements for such general obligation bonds and general obligation temporary notes were filed with the MSRB and have the same base CUSIP number as the Bonds (249775), and some, but not all, of such official statements were incorporated by reference in the filings made by the Issuer with respect to one or more series of then outstanding general obligation bonds and general obligation temporary notes.
During the past five years, the Issuer has made filings of event notices on EMMA with respect to bond calls, defeasances, and rating changes, however, during said time period, the Issuer may not have made timely filings of event notices on EMMA relating to all bond calls, defeasances or rating changes. The Issuer believes this information was disseminated or available through other sources.
For more information regarding the Disclosure Undertaking, see “APPENDIX C – SUMMARY OF FINANCING DOCUMENTS –THE DISCLOSURE UNDERTAKING.”
Additional Information
Additional information regarding the Issuer or the Bonds may be obtained from the Director of Finance of the Issuer at the address set forth in the preface to this Official Statement, or from the financial advisor, Piper Jaffray & Co., 11635 Rosewood Street, Leawood, Kansas 66211, Attention: Greg Vahrenberg at (913) 345-3374 or [email protected].
THE BONDS
Authority for the Bonds
The Bonds are being issued pursuant to and in full compliance with the Constitution and statutes of the State, including K.S.A. 10-101 to 10-125, inclusive, K.S.A. 10-620 et seq., K.S.A. 12-685 et seq. and K.S.A. 12-6a01 et seq., as amended and supplemented from time to time (collectively the “Act”), an ordinance passed by the governing body of the Issuer and a resolution adopted by the governing body of the Issuer on November 10, 2015 (collectively the “Bond Resolution”).
Security for the Bonds
The Bonds shall be general obligations of the Issuer payable as to both principal and interest in part from special assessments levied upon the property benefitted by the construction of certain public improvements (as hereinafter described in the section entitled “THE PROJECTS”), and if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The balance of the principal and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due.
Levy and Collection of Annual Tax, Transfer to Debt Service Account
The governing body of the Issuer shall annually make provision for the payment of principal of, premium, if any, and interest on the Bonds as the same become due by, to the extent necessary, levying and collecting the necessary taxes and/or assessments upon all of the taxable tangible property within the Issuer in the manner provided by law. Such taxes and/or assessments shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner as the other ad valorem taxes of the Issuer are levied and collected. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund, shall be kept separate and apart from all other funds of the Issuer, shall thereafter be transferred to the Debt Service Account and shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due, taking into account any scheduled mandatory redemptions, and the fees and expenses of the Paying Agent.
Description of the Bonds
The Bonds shall consist of fully registered book-entry-only bonds in an Authorized Denomination and shall be numbered in such manner as the Bond Registrar shall determine. All of the Bonds shall be dated as of the Dated Date, become due in the amounts on the Stated Maturities, subject to redemption and payment prior to their Stated Maturities, and 32 2 shall bear interest at the rates per annum set forth on the inside cover page of this Official Statement (computed on the basis of twelve 30-day months) from the later of the Dated Date or the most recent Interest Payment Date to which interest has been paid, on the Interest Payment Dates in the manner hereinafter set forth.
Designation of Paying Agent and Bond Registrar
The Issuer will at all times maintain a paying agent and bond registrar meeting the qualifications set forth in the Bond Resolution. The Issuer reserves the right to appoint a successor paying agent or bond registrar. No resignation or removal of the paying agent or bond registrar shall become effective until a successor has been appointed and has accepted the duties of paying agent or bond registrar. Every paying agent or bond registrar appointed by the Issuer shall at all times meet the requirements of Kansas law.
The Treasurer of the State of Kansas, Topeka, Kansas (the “Bond Registrar” and “Paying Agent”) has been designated by the Issuer as paying agent for the payment of principal of and interest on the Bonds and bond registrar with respect to the registration, transfer and exchange of Bonds.
Method and Place of Payment of the Bonds
The principal of, or Redemption Price, and interest on the Bonds shall be payable in any coin or currency which, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. The principal or Redemption Price of each Bond shall be paid at Maturity to the Person in whose name such Bond is registered on the Bond Register at the Maturity thereof, upon presentation and surrender of such Bond at the principal office of the Paying Agent.
The interest payable on each Bond on any Interest Payment Date shall be paid to the Owner of such Bond as shown on the Bond Register at the close of business on the Record Date for such interest (a) by check or draft mailed by the Paying Agent to the address of such Owner shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Owner upon written notice given to the Bond Registrar by such Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank, ABA routing number and account number to which such Owner wishes to have such transfer directed.
Notwithstanding the foregoing, any Defaulted Interest with respect to any Bond shall cease to be payable to the Owner of such Bond on the relevant Record Date and shall be payable to the Owner in whose name such Bond is registered at the close of business on the Special Record Date for the payment of such Defaulted Interest, which Special Record Date shall be fixed as hereinafter specified. The Issuer shall notify the Paying Agent in writing of the amount of Defaulted Interest proposed to be paid on each Bond and the date of the proposed payment (which date shall be at least 30 days after receipt of such notice by the Paying Agent) and shall deposit with the Paying Agent an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest. Following receipt of such funds the Paying Agent shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 days prior to the date of the proposed payment. The Paying Agent shall notify the Issuer of such Special Record Date and shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, by first class mail, postage prepaid, to each Owner of a Bond entitled to such notice not less than 10 days prior to such Special Record Date.
SO LONG AS CEDE & CO., REMAINS THE REGISTERED OWNER OF THE BONDS, THE PAYING AGENT SHALL TRANSMIT PAYMENTS TO THE SECURITIES DEPOSITORY, WHICH SHALL REMIT SUCH PAYMENTS IN ACCORDANCE WITH ITS NORMAL PROCEDURES. See “THE BONDS – Book-Entry Bonds; Securities Depository.”
Payments Due on Saturdays, Sundays and Holidays
In any case where a Bond Payment Date is not a Business Day, then payment of principal, Redemption Price or interest need not be made on such Bond Payment Date but may be made on the next succeeding Business Day with the same force and effect as if made on such Bond Payment Date, and no interest shall accrue for the period after such Bond Payment Date.
Book-Entry Bonds; Securities Depository
The Bonds shall initially be registered to Cede & Co., the nominee for the Securities Depository, and no Beneficial Owner will receive certificates representing their respective interests in the Bonds, except in the event the Bond Registrar issues Replacement Bonds. It is anticipated that during the term of the Bonds, the Securities Depository will make book- entry transfers among its Participants and receive and transmit payment of principal of, premium, if any, and interest on, the 33 3 Bonds to the Participants until and unless the Bond Registrar authenticates and delivers Replacement Bonds to the Beneficial Owners as described in the following paragraphs.
The Issuer may decide, subject to the requirements of the Operational Arrangements of DTC (or a successor Securities Depository), and the following provisions of this section to discontinue use of the system of book-entry transfers through DTC (or a successor Securities Depository):
(a) If the Issuer determines (1) that the Securities Depository is unable to properly discharge its responsibilities, or (2) that the Securities Depository is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, or (3) that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds; or
(b) if the Bond Registrar receives written notice from Participants having interest in not less than 50% of the Bonds Outstanding, as shown on the records of the Securities Depository (and certified to such effect by the Securities Depository), that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds, then the Bond Registrar shall notify the Owners of such determination or such notice and of the availability of certificates to owners requesting the same, and the Bond Registrar shall register in the name of and authenticate and deliver Replacement Bonds to the Beneficial Owners or their nominees in principal amounts representing the interest of each, making such adjustments as it may find necessary or appropriate as to accrued interest and previous calls for redemption; provided, that in the case of a determination under (a)(1) or (a)(2) of this paragraph, the Issuer, with the consent of the Bond Registrar, may select a successor securities depository in accordance with the following paragraph to effect book-entry transfers.
In such event, all references to the Securities Depository herein shall relate to the period of time when the Securities Depository has possession of at least one Bond. Upon the issuance of Replacement Bonds, all references herein to obligations imposed upon or to be performed by the Securities Depository shall be deemed to be imposed upon and performed by the Bond Registrar, to the extent applicable with respect to such Replacement Bonds. If the Securities Depository resigns and the Issuer, the Bond Registrar or Owners are unable to locate a qualified successor of the Securities Depository, then the Bond Registrar shall authenticate and cause delivery of Replacement Bonds to Owners, as provided herein. The Bond Registrar may rely on information from the Securities Depository and its Participants as to the names of the Beneficial Owners of the Bonds. The cost of printing, registration, authentication, and delivery of Replacement Bonds shall be paid for by the Issuer.
In the event the Securities Depository resigns, is unable to properly discharge its responsibilities, or is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, the Issuer may appoint a successor Securities Depository provided the Bond Registrar receives written evidence satisfactory to the Bond Registrar with respect to the ability of the successor Securities Depository to discharge its responsibilities. Any such successor Securities Depository shall be a securities depository which is a registered clearing agency under the Securities and Exchange Act of 1934, as amended, or other applicable statute or regulation that operates a securities depository upon reasonable and customary terms. The Bond Registrar upon its receipt of a Bond or Bonds for cancellation shall cause the delivery of the Bonds to the successor Securities Depository in appropriate denominations and form as provided in the Bond Resolution.
Registration, Transfer and Exchange of Bonds
As long as any of the Bonds remain Outstanding, each Bond when issued shall be registered in the name of the Owner thereof on the Bond Register. Bonds may be transferred and exchanged only on the Bond Register as hereinafter provided. Upon surrender of any Bond at the principal office of the Bond Registrar, the Bond Registrar shall transfer or exchange such Bond for a new Bond or Bonds in any authorized denomination of the same Stated Maturity and in the same aggregate principal amount as the Bond that was presented for transfer or exchange. Bonds presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in a form and with guarantee of signature satisfactory to the Bond Registrar, duly executed by the Owner thereof or by the Owner's duly authorized agent.
In all cases in which the privilege of transferring or exchanging Bonds is exercised, the Bond Registrar shall authenticate and deliver Bonds in accordance with the provisions of the Bond Resolution. The Issuer shall pay the fees and expenses of the Bond Registrar for the registration, transfer and exchange of Bonds. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, are the responsibility of the Owners of the Bonds. In the event any Owner fails to provide a correct taxpayer identification number to the Paying Agent, the Paying Agent may make a charge against such Owner sufficient to pay any governmental charge required to be paid as a result of such failure.
34 4 The Issuer and the Bond Registrar shall not be required (a) to register the transfer or exchange of any Bond that has been called for redemption after notice of such redemption has been mailed by the Paying Agent and during the period of 15 days next preceding the date of mailing of such notice of redemption; or (b) to register the transfer or exchange of any Bond during a period beginning at the opening of business on the day after receiving written notice from the Issuer of its intent to pay Defaulted Interest and ending at the close of business on the date fixed for the payment of Defaulted Interest.
Mutilated, Lost, Stolen or Destroyed Bonds
If (a) any mutilated Bond is surrendered to the Bond Registrar or the Bond Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Bond, and (b) there is delivered to the Issuer and the Bond Registrar such security or indemnity as may be required by each of them, then, in the absence of notice to the Issuer or the Bond Registrar that such Bond has been acquired by a bona fide purchaser, the Issuer shall execute and, upon the Issuer's request, the Bond Registrar shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Bond, a new Bond of the same Stated Maturity and of like tenor and principal amount. If any such mutilated, destroyed, lost or stolen Bond has become or is about to become due and payable, the Issuer, in its discretion, may pay such Bond instead of issuing a new Bond. Upon the issuance of any new Bond, the Issuer may require the payment by the Owner of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Paying Agent) connected therewith.
Nonpresentment of Bonds
If any Bond is not presented for payment when the principal thereof becomes due at Maturity, if funds sufficient to pay such Bond have been made available to the Paying Agent all liability of the Issuer to the Owner thereof for the payment of such Bond shall forthwith cease, determine and be completely discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for interest thereon, for the benefit of the Owner of such Bond, who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under this Bond Resolution or on, or with respect to, said Bond. If any Bond is not presented for payment within four (4) years following the date when such Bond becomes due at Maturity, the Paying Agent shall repay to the Issuer the funds theretofore held by it for payment of such Bond, and such Bond shall, subject to the defense of any applicable statute of limitation, thereafter be an unsecured obligation of the Issuer, and the Owner thereof shall be entitled to look only to the Issuer for payment, and then only to the extent of the amount so repaid to it by the Paying Agent, and the Issuer shall not be liable for any interest thereon and shall not be regarded as a trustee of such money.
Redemption Provisions
Optional Redemption. At the option of the Issuer, Bonds maturing on December 1 in the years 2023, and thereafter, will be subject to redemption and payment prior to their Stated Maturity on December 1, 2022, and thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the Redemption Price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the Redemption Date.
[ Mandatory Redemption. [(a) [____] Term Bonds . ]The [____] Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements hereinafter set forth at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The payments which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on December 1 in each year, the following principal amounts of such [____] Term Bonds:
Principal Amount Year $ * ______*Final Maturity
[(b) 2036 Term Bonds. ]The 2036 Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements hereinafter set forth at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The payments which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on December 1 in each year, the following principal amounts of such 2036 Term Bonds:
35 5 Principal Amount Year $ 2036* ______*Final Maturity
Selection of Bonds to be Redeemed. Bonds shall be redeemed only in an Authorized Denomination. When less than all of the Bonds are to be redeemed and paid prior to their Stated Maturity, such Bonds shall be redeemed in such manner as the Issuer shall determine, Bonds of less than a full Stated Maturity shall be selected by the Bond Registrar in minimum Authorized Denomination in such equitable manner as the Bond Registrar may determine. In the case of a partial redemption of Bonds by lot when Bonds of denominations greater than a minimum Authorized Denomination are then Outstanding, then for all purposes in connection with such redemption each minimum Authorized Denomination of face value shall be treated as though it were a separate Bond of a minimum Authorized Denomination. If it is determined that one or more, but not all, of the minimum Authorized Denomination value represented by any Bond is selected for redemption, then upon notice of intention to redeem such minimum Authorized Denomination, the Owner or the Owner's duly authorized agent shall forthwith present and surrender such Bond to the Bond Registrar: (1) for payment of the Redemption Price and interest to the Redemption Date of such minimum Authorized Denomination value called for redemption, and (2) for exchange, without charge to the Owner thereof, for a new Bond or Bonds of the aggregate principal amount of the unredeemed portion of the principal amount of such Bond. If the Owner of any such Bond fails to present such Bond to the Paying Agent for payment and exchange as aforesaid, such Bond shall, nevertheless, become due and payable on the redemption date to the extent of the minimum Authorized Denomination value called for redemption (and to that extent only).
Notice and Effect of Call for Redemption. Unless waived by any Owner of Bonds to be redeemed, if the Issuer shall call any Bonds for redemption and payment prior to the Stated Maturity thereof, the Issuer shall give written notice of its intention to call and pay said Bonds to the Bond Registrar and the Underwriter. In addition, the Issuer shall cause the Bond Registrar to give written notice of redemption to the Owners of said Bonds. Each of said written notices shall be deposited in the United States first class mail not less than 30 days prior to the Redemption Date.
All official notices of redemption shall be dated and shall contain the following information: (a) the Redemption Date; (b) the Redemption Price; (c) if less than all Outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption of any Bonds, the respective principal amounts) of the Bonds to be redeemed; (d) a statement that on the Redemption Date the Redemption Price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue from and after the Redemption Date; and (e) the place where such Bonds are to be surrendered for payment of the Redemption Price, which shall be the principal office of the Paying Agent. The failure of any Owner to receive notice given as heretofore provided or an immaterial defect therein shall not invalidate any redemption. Prior to any Redemption Date, the Issuer shall deposit with the Paying Agent an amount of money sufficient to pay the Redemption Price of all the Bonds or portions of Bonds that are to be redeemed on such Redemption Date. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds to be redeemed shall become due and payable on the Redemption Date, at the Redemption Price therein specified, and from and after the Redemption Date (unless the Issuer defaults in the payment of the Redemption Price) such Bonds or portion of Bonds shall cease to bear interest.
For so long as the Securities Depository is effecting book-entry transfers of the Bonds, the Bond Registrar shall provide the notices specified to the Securities Depository. It is expected that the Securities Depository shall, in turn, notify its Participants and that the Participants, in turn, will notify or cause to be notified the Beneficial Owners. Any failure on the part of the Securities Depository or a Participant, or failure on the part of a nominee of a Beneficial Owner of a Bond (having been mailed notice from the Bond Registrar, the Securities Depository, a Participant or otherwise) to notify the Beneficial Owner of the Bond so affected, shall not affect the validity of the redemption of such Bond.
In addition to the foregoing notice, the Issuer shall provide such notices of redemption as are required by the Disclosure Undertaking. The Paying Agent is also directed to comply with any mandatory or voluntary standards then in effect for processing redemptions of municipal securities established by the State or the Securities and Exchange Commission. Failure to comply with such standards shall not affect or invalidate the redemption of any Bond.
THE DEPOSITORY TRUST COMPANY
1. The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership
36 6 nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered bond certificate will be issued for each scheduled maturity of the Bonds, and will be deposited with DTC.
2. DTC, the world’s largest depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.6 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments from over 100 countries that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non- U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of “AA+”. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.
3. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the book-entry system for the Bonds is discontinued.
4. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.
5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
6. Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).
8. Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the Issuer or Paying Agent, on the payment date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC nor its nominee, the Paying Agent, or the Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Issuer or Paying
37 7 Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
9. A Beneficial Owner shall give notice to elect to have its Bonds purchased or tendered, through its Participant, to the Paying Agent, and shall effect delivery of such Bonds by causing the Direct Participant to transfer the Participant’s interest in the Bonds, on DTC’s records, to the Paying Agent. The requirement for physical delivery of the Bonds in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Bonds are transferred by Direct Participants on DTC’s records and followed by a book-entry credit of tendered Bonds to the Paying Agent’s DTC account.
10. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the Issuer or Paying Agent. Under such circumstances, in the event that a successor securities depository is not obtained, Bond certificates are required to be printed and delivered.
11. The Issuer may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered to DTC.
12. The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that the Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof.
THE PROJECTS
The Bonds are being issued for the purpose of providing permanent financing for the construction of certain street, sanitary sewer, storm water sewer, and water improvements (the “Improvements”), more specifically described as follows:
Project Description Res. No. Authority (K.S.A.) Amount Tall Tree Addition Storm Water Sewer, Phase 2 28-2010 12-6a01 et seq. $ 246,347.23 Streets, Phase 2 27-2010 12-6a01 et seq. 206,987.64 Water Line, Phase 2 26-2010 12-6a01 et seq. 73,221.13 Sanitary Sewer, Phase 2 25-2010 12-6a01 et seq. 74,260.26 USD 260 Middle School Addition Rock Road Sidewalk 31-2013 12-6a01 et seq. 24,584.45 Traffic Signalization 30-2013 12-6a01 et seq. 42,994.09 Water Main, Phase 1 24-2013 12-6a01 et seq. 251,071.32 Detention Basin and Mass Grading 28-2013 12-6a01 et seq. 702,521.04 Street and Storm Sewer, Phase 1 36-2013 12-6a01 et seq. 834,129.87 Internal Sanitary Sewer 23-2013 12-6a01 et seq. 201,087.41 Rock Road Accel/Decel Lane 29-2013 12-6a01 et seq. 117,426.56 Anderson Farm Commercial, Anderson Farm Commercial 2nd & USD 260 Middle School Additions Rock Road Left Turn Lane 21-2013/14-2015 12-6a01 et seq. 213,978.80 Rock Road Traffic Signalization 22-2013/15-2015 12-6a01 et seq. 54,745.17 Anderson Farm Commercial & USD 260 Middle 20-2013/9-2015 12-6a01 et seq. 105,998.23 School Additions – Sanitary Sewer Anderson Farm Commercial & Anderson Farm 35-2013/13-2015 12-6a01 et seq. 127,150.33 Commercial 2nd Additions – Rock Road – West Side Accel/Decel Lane Stone Creek 4th Addition Water Line, Phase 2 10-2010 12-6a01 et seq. 61,112.94 Streets, Phase 2 11-2010 12-6a01 et seq. 324,231.27 USD 260 Middle School Addition – Internal Sidewalk 32-2013 12-6a01 et seq. 74,842.14 Improvements-Phase 1 Anderson Farms Commercial 2nd Addition – Sidewalk 102-2007 12-6a01 et seq. 7,752.27 Anderson Farms Commercial 3rd Addition – Sidewalk 104-2007/16-2015 12-6a01 et seq. 15,226.72 Farborough Estates Addition – Street 45-2013 12-6a01 et seq. 38,202.38 Oak Ridge Estates Addition and adjoining parcels – 46-2013 12-6a01 et seq. 47,128.75 Street Nelson Drive and Meadowlark – Main Trafficway Ord. 2127/ 12-685 et seq. 1,910,000.00 Improvements Res. No. 31-2012 Total $5,755,000.00 38 8 A portion of the costs of the Improvements have been financed by the Refunded Notes, which will be retired from the proceeds of the Bonds and certain other funds.
SOURCES AND USES OF FUNDS
The following table summarizes the sources and uses of funds associated with the issuance of the Bonds:
Sources of Funds: Principal Amount of the Bonds $4,875,000*.00 Available funds of the Issuer Prepaid special assessments [Bid Premium] Total $
Uses of Funds: Deposit to Redemption Fund $[______] Deposit to Improvement Fund [Deposit to Debt Service Account] Costs of Issuance Total $
RISK FACTORS AND INVESTMENT CONSIDERATIONS
A PROSPECTIVE PURCHASER OF THE BONDS DESCRIBED HEREIN SHOULD BE AWARE THAT THERE ARE CERTAIN RISKS ASSOCIATED WITH THE BONDS WHICH MUST BE RECOGNIZED. THE FOLLOWING STATEMENTS REGARDING CERTAIN RISKS ASSOCIATED WITH THE OFFERING SHOULD NOT BE CONSIDERED AS A COMPLETE DESCRIPTION OF ALL RISKS TO BE CONSIDERED IN THE DECISION TO PURCHASE THE BONDS. PROSPECTIVE PURCHASERS OF THE BONDS SHOULD ANALYZE CAREFULLY THE INFORMATION CONTAINED IN THIS OFFICIAL STATEMENT AND ADDITIONAL INFORMATION IN THE FORM OF THE COMPLETE DOCUMENTS SUMMARIZED HEREIN, COPIES OF WHICH ARE AVAILABLE AND MAY BE OBTAINED FROM THE ISSUER OR THE UNDERWRITER.
Legal Matters
Various state and federal laws, regulations and constitutional provisions apply to the obligations created by the Bonds. There is no assurance that there will not be any change in, interpretation of, or addition to such applicable laws, provisions and regulations which would have a material effect, either directly or indirectly, on the Issuer or the taxing authority of the Issuer.
Limitations on Remedies Available to Owners of Bonds
The enforceability of the rights and remedies of the owners of Bonds, and the obligations incurred by the Issuer in issuing the Bonds, are subject to the following: the federal Bankruptcy Code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors' rights generally, now or hereafter in effect; usual equity principles which may limit the specific enforcement under state law of certain remedies; the exercise by the United States of America of the powers delegated to it by the United States Constitution; and the reasonable and necessary exercise, in certain unusual situations, of the police power inherent in the State of Kansas and its governmental subdivisions in the interest of serving a legitimate and significant public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could subject the owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy and otherwise, and consequently may involve risks of delay, limitation or modification of their rights.
Kansas Public Employees Retirement System
As described in “APPENDIX A – FINANCIAL INFORMATION – Pension and Employee Retirement Plans,” the Issuer participates in the Kansas Public Employees Retirement System (“KPERS”), as an instrumentality of the State to provide retirement and related benefits to public employees in Kansas. KPERS administers three statewide defined benefit retirement plans for public employees which are separate and distinct with different membership groups, actuarial assumptions, experience, contribution rates and benefit options. The Issuer participates in the Public Employees Retirement 39 9 System – Local Group and the Police and Firemen’s Retirement System (“KP&F”) (the “Plan”). Under existing law, employees make contributions and the Issuer makes all employer contributions to the Plan; neither the employees nor the Issuer are directly responsible for any unfunded accrued actuarial liability (“UAAL”); however, Plan contribution rates may be adjusted by legislative action over time to address any UAAL. According to KPERS’ Valuation Report, dated as of December 31, 2014, the Local Group had an UAAL of $1.488 billion and KP&F had an UAAL of $726 million.
Taxation of Interest on the Bonds
An opinion of Bond Counsel will be obtained to the effect that interest earned on the Bonds is excludable from gross income for federal income tax purposes under current provisions of the Internal Revenue Code of 1986, as amended (the “Code”), and applicable rulings and regulations under the Code; however, an application for a ruling has not been made and an opinion of counsel is not binding upon the Internal Revenue Service. There can be no assurance that the present provisions of the Code, or the rules and regulations thereunder, will not be adversely amended or modified, thereby rendering the interest earned on the Bonds includable in gross income for federal income tax purposes.
The Issuer has covenanted in the Bond Resolution and in other documents and certificates to be delivered in connection with the issuance of the Bonds to comply with the provisions of the Code, including those which require the Issuer to take or omit to take certain actions after the issuance of the Bonds. Because the existence and continuation of the excludability of the interest on the Bonds depends upon events occurring after the date of issuance of the Bonds, the opinion of Bond Counsel described under “TAX MATTERS” assumes the compliance by the Issuer with the provisions of the Code described above and the regulations relating thereto. No opinion is expressed by Bond Counsel with respect to the excludability of the interest on the Bonds in the event of noncompliance with such provisions. The failure of the Issuer to comply with the provisions described above may cause the interest on the Bonds to become includable in gross income as of the date of issuance.
Premium on Bonds
[The initial offering prices of certain maturities of the Bonds that are subject to optional redemption are in excess of the respective principal amounts thereof. ]Any person who purchases a Bond in excess of its principal amount, whether during the initial offering or in a secondary market transaction, should consider that the Bonds are subject to redemption at par under the various circumstances described under “THE BONDS – Redemption Provisions.”
No Additional Interest or Mandatory Redemption upon Event of Taxability
The Bond Resolution does not provide for the payment of additional interest or penalty on the Bonds or the mandatory redemption thereof if the interest thereon becomes includable in gross income for federal income tax purposes. Likewise, the Bond Resolution does not provide for the payment of any additional interest or penalty on the Bonds if the interest thereon becomes subject to income taxation by the State.
Suitability of Investment
The tax exempt feature of the Bonds is more valuable to high tax bracket investors than to investors who are in low tax brackets, and so the value of the interest compensation to any particular investor will vary with individual tax rates. Each prospective investor should carefully examine this Official Statement, including the Appendices hereto, and its own financial condition to make a judgment as to its ability to bear the economic risk of such an investment, and whether or not the Bonds are an appropriate investment.
Market for the Bonds
Bond Rating. The Bonds have been assigned the financial rating set forth in the section hereof entitled “BOND RATINGS.” There is no assurance that a particular rating will remain in effect for any given period of time or that it will not be revised, either downward or upward, or withdrawn entirely, if in the judgment of the agency originally establishing such rating, circumstances so warrant. Any downward revision or withdrawal of any rating may have an adverse affect on the market price of the Bonds.
Secondary Market. There is no assurance that a secondary market will develop for the purchase and sale of the Bonds. Prices of bonds traded in the secondary market, though, are subject to adjustment upward and downward in response to changes in the credit markets. From time to time it may be necessary to suspend indefinitely secondary market trading in the Bonds as a result of financial condition or market position of broker-dealers, prevailing market conditions, lack of adequate current financial information about the Issuer, or a material adverse change in the financial condition of the Issuer, whether or not the Bonds are in default as to principal and interest payments, and other factors which may give rise to uncertainty concerning prudent secondary market practices. 40 10 BOND RATINGS
Standard & Poor’s Ratings Services, a division of McGraw Hill Financial Inc., has assigned a rating of “[___]” to the Bonds. Such rating reflects only the view of such rating agency, and an explanation of the significance of such rating may be obtained therefrom. No such rating constitutes a recommendation to buy, sell, or hold any bonds, including the Bonds, or as to the market price or suitability thereof for a particular investor. The Issuer furnished such rating agency with certain information and materials relating to the Bonds that have not been included in this Official Statement. Generally, rating agencies base their ratings on the information and materials so furnished and on investigations, studies and assumptions by the rating agencies. There is no assurance that a particular rating will remain in effect for any given period of time or that it will not be revised, either downward or upward, or withdrawn entirely, if in the judgment of the agency originally establishing such rating, circumstances so warrant. Any downward revision or withdrawal of any rating may have an adverse affect on the market price of the Bonds.
LEGAL PROCEEDINGS
The Issuer, in the ordinary course of business, is a party to various legal proceedings. In the opinion of management of the Issuer, any judgment rendered against the Issuer in such proceedings would not materially adversely affect the financial position of the Issuer.
The Issuer certifies that there is no controversy, suit or other proceeding of any kind pending or threatened wherein or whereby any question is raised or may be raised, questioning, disputing or affecting in any way the legal organization of the Issuer or its boundaries, or the right or title of any of its officers to their respective offices, or the legality of any official act or the constitutionality or validity of the indebtedness represented by the Bonds or the validity of said Bonds, or any of the proceedings had in relation to the authorization, issuance or sale thereof, or the levy and collection of a tax to pay the principal and interest thereof.
LEGAL MATTERS
Approval of Bonds
All matters incident to the authorization and issuance of the Bonds are subject to the approval of Gilmore & Bell, P.C., Wichita, Kansas (“Bond Counsel”), bond counsel to the Issuer. The factual and financial information appearing herein has been supplied or reviewed by certain officials of the Issuer and its certified public accountants, as referred to herein. Bond Counsel has participated in the preparation of the Official Statement but expresses no opinion as to the accuracy or sufficiency thereof, except for the matters appearing in the sections of this Official Statement captioned “THE BONDS,” “LEGAL MATTERS,” “TAX MATTERS” and “APPENDIX C – SUMMARY OF FINANCING DOCUMENTS.” Payment of the legal fee of Bond Counsel is contingent upon the delivery of the Bonds. Certain legal matters have been passed on for the Issuer by Jacqueline R. Butler, Esq.
TAX MATTERS
The following is a summary of the material federal and State of Kansas income tax consequences of holding and disposing of the Bonds. This summary is based upon laws, regulations, rulings and judicial decisions now in effect, all of which are subject to change (possibly on a retroactive basis). This summary does not discuss all aspects of federal income taxation that may be relevant to investors in light of their personal investment circumstances or describe the tax consequences to certain types of holders subject to special treatment under the federal income tax laws (for example, dealers in securities or other persons who do not hold the Bonds as a capital asset, tax-exempt organizations, individual retirement accounts and other tax deferred accounts, and foreign taxpayers), and, except for the income tax laws of the State of Kansas, does not discuss the consequences to an owner under state, local or foreign tax laws. The summary does not deal with the tax treatment of persons who purchase the Bonds in the secondary market at a premium or a discount. Prospective investors are advised to consult their own tax advisors regarding federal, state, local and other tax considerations of holding and disposing of the Bonds.
41 11 Opinion of Bond Counsel
In the opinion of Bond Counsel, under the law existing as of the issue date of the Bonds:
Federal Tax Exemption. The interest on the Bonds [(including any original issue discount properly allocable to an owner thereof)] is excludable from gross income for federal income tax purposes.
Alternative Minimum Tax. Interest on the Bonds is not an item of tax preference for purposes of computing the federal alternative minimum tax imposed on individuals and corporations, but is taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on certain corporations.
Bank Qualification. The Bonds are “qualified tax-exempt obligations” within the meaning of Code § 265(b)(3).
Kansas Tax Exemption. The interest on the Bonds is exempt from income taxation by the State of Kansas.
Bond Counsel’s opinions are provided as of the date of the original issue of the Bonds, subject to the condition that the Issuer comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes. The Issuer has covenanted to comply with all of these requirements. Failure to comply with certain of these requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. Bond Counsel is expressing no opinion regarding other federal, state or local tax consequences arising with respect to the Bonds.
Other Tax Consequences
[ Original Issue Discount. For Federal income tax purposes, original issue discount (“OID”) is the excess of the stated redemption price at maturity of a Bond over its issue price. The issue price of a Bond is the first price at which a substantial amount of the Bonds of that maturity have been sold (ignoring sales to bond houses, brokers, or similar persons or organizations acting in the capacity of underwriters, placement agents, or wholesalers). Under Code § 1288, OID on tax- exempt bonds accrues on a compound basis. The amount of OID that accrues to an owner of a Bond during any accrual period generally equals: (a) the issue price of that Bond, plus the amount of OID accrued in all prior accrual periods; multiplied by (b) the yield to maturity on that Bond (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period); minus (c) any interest payable on that Bond during that accrual period. The amount of OID accrued in a particular accrual period will be considered to be received ratably on each day of the accrual period, will be excludable from gross income for Federal income tax purposes, and will increase the owner’s tax basis in that Bond. Prospective investors should consult their own tax advisors concerning the calculation and accrual of OID.]
[ Original Issue Premium. If a Bond is issued at a price that exceeds the stated redemption price at maturity of the Bond, the excess of the purchase price over the stated redemption price at maturity constitutes “premium” on that Bond. Under Code § 171, the purchaser of that Bond must amortize the premium over the term of the Bond using constant yield principles, based on the purchaser’s yield to maturity. As premium is amortized, the owner’s basis in the Bond and the amount of tax-exempt interest received will be reduced by the amount of amortizable premium properly allocable to the owner. This will result in an increase in the gain (or decrease in the loss) to be recognized for Federal income tax purposes on sale or disposition of the Bond prior to its maturity. Even though the owner’s basis is reduced, no Federal income tax deduction is allowed. Prospective investors should consult their own tax advisors concerning the calculation and accrual of bond premium.]
Sale, Exchange or Retirement of Bonds. Upon the sale, exchange or retirement (including redemption) of a Bond, an owner of the Bond generally will recognize gain or loss in an amount equal to the difference between the amount of cash and the fair market value of any property received on the sale, exchange or retirement of the Bond (other than in respect of accrued and unpaid interest) and such owner’s adjusted tax basis in the Bond. To the extent the Bonds are held as a capital asset, such gain or loss will be capital gain or loss and will be long-term capital gain or loss if the Bond has been held for more than 12 months at the time of sale, exchange or retirement.
Reporting Requirements. In general, information reporting requirements will apply to certain payments of principal, interest and premium paid on Bonds, and to the proceeds paid on the sale of Bonds, other than certain exempt recipients (such as corporations and foreign entities). A backup withholding tax will apply to such payments if the owner fails to provide a taxpayer identification number or certification of foreign or other exempt status or fails to report in full dividend and interest income. The amount of any backup withholding from a payment to an owner will be allowed as a credit against the owner’s federal income tax liability.
42 12 Collateral Federal Income Tax Consequences. Prospective purchasers of the Bonds should be aware that ownership of the Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, individual recipients of Social Security or Railroad Retirement benefits, certain S corporations with “excess net passive income,” foreign corporations subject to the branch profits tax, life insurance companies, and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry or have paid or incurred certain expenses allocable to the Bonds. Bond Counsel expresses no opinion regarding these tax consequences. Purchasers of Bonds should consult their tax advisors as to the applicability of these tax consequences and other federal income tax consequences of the purchase, ownership and disposition of the Bonds, including the possible application of state, local, foreign and other tax laws.
FINANCIAL ADVISOR
Piper Jaffray & Co., Leawood, Kansas and The Public Finance Group, Inc., Wichita, Kansas, have collectively acted as Financial Advisor to the Issuer in connection with the sale of the Bonds. The Financial Advisor is a “municipal advisor” as defined in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The Financial Advisor has assisted the Issuer in the preparation of this Official Statement and in other matters relating to the issuance of the Bonds. The Financial Advisor will not be a manager or a member of any underwriting group submitting a proposal for the purchase of the Bonds. The fees of the Financial Advisor are contingent upon the issuance of the Bonds.
UNDERWRITING
The Bonds have been sold at public sale by the Issuer to [Purchaser], [City, State] (the “Underwriter”) on the basis of lowest true interest cost. [__] bids were received by the Issuer. The Underwriter has agreed, subject to certain conditions, to purchase the Bonds at a price equal to the principal amount of the Bonds, plus accrued interest from the Dated Date to the Issue Date[, plus a premium of $______].
The Bonds will be offered to the public initially at the prices determined to produce the yield to maturity or applicable redemption date set forth on the inside cover page of this Official Statement. The Underwriter may offer and sell the Bonds to certain dealers (including dealers depositing the Bonds into investment trusts) at prices other than the price stated on the inside cover page hereof and may change the initial offering price from time to time subsequent to the date hereof. In connection with the offering, the Underwriter may overallot or effect transactions which stabilize or maintain the market price of the Bonds at a level above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time.
AUTHORIZATION OF OFFICIAL STATEMENT
The preparation of this Official Statement and its distribution has been authorized by the governing body of the Issuer as of the date on the cover page hereof. This Official Statement is submitted in connection with the issuance of the Bonds and may not be reproduced or used as a whole or in part for any other purpose. This Official Statement does not constitute a contract between the Issuer or the Underwriter and any one or more of the purchasers, Owners or Beneficial Owners of the Bonds.
CITY OF DERBY, KANSAS
By: Randy White, Mayor
By: Jean Epperson, Director of Finance
[BALANCE OF PAGE INTENTIONALLY LEFT BLANK]
43 13 APPENDIX A
INFORMATION CONCERNING THE ISSUER
GENERAL
Size and Location
The City of Derby, Kansas (the “City”) is in Sedgwick County, Kansas, and is located approximately three and one- half miles south of Wichita, Kansas. The City encompasses approximately 9.2 square miles and has a current estimated population of 23,234 persons.
Government and Organization of the Issuer
The City was incorporated in 1869 and is a city of the second class.
The City operates under the Mayor-Council-Manager form of government. The eight Councilmembers are elected by ward and serve four-year terms. The Mayor is elected at large for a four-year term, has veto power over certain Council action, presides over Council meetings and appoints certain City officials, subject to Council approval. The City Manager is appointed by the governing body and is charged with the efficient and effective administration of the City.
The following tables list the principal elected and appointed executive officers of the City:
Elected Officials
Name Title Term of Office Randy White Mayor 04/2015 to 04/2019 Rocky Cornejo Councilmember 04/2015 to 04/2019 Tom Keil Councilmember 06/2015 to 04/2019 Vaughn Nun Councilmember 10/2007 to 04/2018 Jack Hezlep Councilmember 04/2015 to 04/2019 Chuck Warren Councilmember 04/1999 to 04/2018 Cheryl Bannon Councilmember 04/2003 to 04/2019 Thomas Haynes Councilmember/ 04/2009 to 04/2017 Council President 04/2015 to 04/2016 Mark Staats Councilmember 04/2007 to 04/2015
Other Officials
Name Title Kathleen B. Sexton City Manager Jean Epperson Director of Finance Karen Friend City Clerk Jacqueline R. Butler, Esq. City Attorney Daniel J. Squires, P.E. City Engineer
Municipal Services and Utilities
The City owns and operates its own sewer utility system. In addition, the City owns 100% of the capital stock of the El Paso Water Co., which provides water service to the City. Effective January 1, 2008, all 9 of the El Paso Water Company employees became City of Derby employees. Westar Energy supplies electricity and Kansas Gas Service supplies natural gas to the City. Telephone service is provided by SBC and other local service providers. Cox Communications, Inc., operates a cable television system under franchise with the City. Effective October 1, 2009, Waste Connections Inc. became the sole provider of recycling and trash collection to residential properties through an agreement with the City.
The City has 47 full-time and two part-time sworn police officers. During 2005, the City began the transition to a career fire department. The fire department now consists of 23 full-time career firefighters and 35 volunteers that provide protection to the City. Sedgwick County Emergency Medical Service operates an emergency ambulance service for the City and surrounding area.
44 A-1 Transportation and Communication Facilities
The area is served by four major highways: I-135, U.S. Highway 54 (400) and Kansas Highway 15, and the Kansas Turnpike (I-35). Federal Express, Emery, Purolator, Airborne, Flying Tigers, Greyhound, U.P.S. and the U.S. Post Office are freight lines serving the City. Rail service is provided by the BNSF Railroad. Colonel James Jabara Airport is located within 10 miles of the City and provides a runway capable of handling private and corporate aircraft. Regularly scheduled air service is available at Wichita Dwight D. Eisenhower National Airport, located 10 miles from the City.
Educational Institutions and Facilities
Derby Public Schools (USD 260) operates nine elementary schools, one middle school, and one high school in the City and surrounding area. During the 2014-15 school year, the district had a total enrollment of approximately 7,068 students. In addition to the public school system, two parochial schools are located in the City. In 2008, Wichita State University (“WSU”) opened its south campus in the City offering general education classes and specialized courses such as the Accelerated Nursing Program. Friends University and Newman University are each located within 10 miles of the City, as is WSU’s main campus.
Medical and Health Facilities
Two major medical facilities, Wesley Medical Center and Via Christi Hospitals, are located within 12 miles of the City. Derby is also home to numerous medical practices with a variety of medical specialties, including family medicine, pediatrics, occupational health, internal medicine, physical therapy, orthopedics, and diagnostics. The City has two skilled nursing care facilities, Westview of Derby and Derby Health & Rehabilitation, and several assisted living and/or independent living facilities for seniors. In 2011, the first of three phases of Glen Carr House began providing assisted living services for memory care patients; phase two is also open.
Family MedCenters, PA, opened an ambulatory surgery center in 2006, to offer outpatient surgery services not previously available in the City. The facility offers convenient, state-of-the-art medical suites for procedures that include colonoscopies, upper endoscopies, pain management procedures and various types of surgeries such as hernia repair, gallbladder, tonsillectomy, spinal taps, orthopedic procedures, and appendectomies.
Recreational, Cultural and Religious Facilities
In 1980, voters of the City formed the Derby Recreation Commission, a board which administers more than 200 leisure programs and activities in and around the City. City recreation facilities include Garrett Park, High Park, the Derby Recreation Center and Rock River Rapids aquatic park. The 75,000 square foot Derby Recreation Center houses a fitness center, gymnasiums, running track, swimming pool, racquetball courts and locker room facilities. The aquatic park features a lap swimming pool, shallow pool, diving area, water slides and a lazy river. The Derby Golf and Country Club, a privately owned golf course, opened in 2004. In 2006, the City opened its new outdoor skate park. In 2007, the voters of the City authorized construction of a new library, which opened in 2009. In 2013, the voters of the City authorized construction of three new signature parks, and in 2014, the City accepted a donation of 63 acres for one of those three parks. Movie theaters, tennis courts, and league recreation are available within the City. Cultural opportunities such as music theater, symphony and museums are available within 12 miles of the City. Twenty churches serve the community.
ECONOMIC INFORMATION
The City is a modern, progressive community owning a water company, a complete system of sanitary sewers and sewage disposal facilities, public library, various City park facilities and approximately 287.3 miles of paved streets. The surrounding farm area is devoted principally to the production of wheat, corn, sorghum, soybeans and cattle. The City is in close proximity to large industries including Spirit AeroSystems, Textron Aviation, and Koch Industries.
45 A-2 Major Employers
Listed below are the major employers located in the City and the number employed by each:
Number of Major Employers Product/Service Full-time Equivalent Employees 1. U.S.D. No. 260 Education 1,105 2. Wal Mart Retail Sales 385 3. City of Derby Government 175 4. Lowes Retail 160 5. Shared Services, a division of Wal Mart Retail Sales Support 145 6. Dillons Grocery 130 7. Derby Health and Rehab Medical 99 8. Derby Recreation Commission Recreation 85 9. Kohl’s Retail 80 10. Westview Manor Elderly Housing 76
Source: Director of Finance
Labor Force
The following table sets forth labor force figures for Sedgwick County and the State of Kansas:
SEDGWICK COUNTY
Total Unemployed Year Labor Force Employed Unemployed Rate 2010 252,713 230,497 22,216 8.8% 2011 249,219 229,337 19,842 8.0% 2012 2,46548 22,9523 17,025 6.9% 2013 246,405 231,176 15,229 6.2% 2014 247,614 234,277 13,337 5.4%
STATE OF KANSAS
Total Unemployed Year Labor Force Employed Unemployed Rate 2010 1,500,764 1,394,958 105,806 7.1% 2011 1,491,258 1,394,230 97,028 6.5% 2012 1,484,016 1,398,681 85,335 5.8% 2013 1,486,764 1,407,562 79,202 5.3% 2014 1,500,353 1,432,359 67,994 4.5%
Source: Kansas Department of Labor
Retail Sales Tax Collections
The following table lists State of Kansas sales tax collections for the calendar years indicated and per capita sales tax collections for the fiscal years indicated for sales occurring in Sedgwick County, Kansas:
Year Sales Tax Collections Per Capita Sales Tax 2010 $408,062,880 $756.85 2011 459,773,654 899.10 2012 484,056,318 946.73 2013 492,551,072 969.64 2014 499,576,979 987.32
The statewide sales and use tax was increased from 4.25% to 4.90% effective July 1, 1992. It was subsequently increased to 6.3%, effective July 1, 2010, and decreased to 6.15%, effective July 1, 2013. Effective July 1, 2015, the statewide sales and use tax was increased to 6.50%.
Source: Kansas Department of Revenue (sales tax collections); Kansas Statistical Abstract (per capital sales tax)
46 A-3 Local Option Sales Taxes
Sedgwick County. In 1985, Sedgwick County voters approved a sales tax on retail sales within the County limits (the “County Sales Tax”). Pursuant to State law, the City receives a portion of the County Sales Tax. The City uses its portion of the County Sales Tax receipts to provide operating funds. The following table provides the amount of County Sales Tax received by the City during the years indicated:
Year Receipts 2010 $3,283,145 2011 3,401,284 2012 3,487,386 2013 3,665,408 2014 3,810,010 2015* 2,625,653
* As of August 2015 Source: Director of Finance
City of Derby. On October 16, 2007, City electors approved a one-half percent Citywide retailers’ sales tax (the “Library Sales Tax”) for the sole purpose of financing the costs of constructing and equipping a new public library and related appurtenances thereto within the City (the “Library Project”). Collection of the Library Sales Tax commenced on January 1, 2010 and had a provision to terminate upon the earlier of ten years after its commencement or when provision has been made for payment of any general obligation sales tax bonds issued to finance the Library Project (including the City’s Series 2010-B Bonds) and associated operation and maintenance reserves. Provision was made for the Library Sales Tax to terminate on December 31, 2014. On October 8, 2013, City electors again approved a one-half percent Citywide retailer’s sales tax (the “Derby Difference Sales Tax”) for the purpose of financing the development of new and existing public parks and payment of operating and maintenance costs of the Derby Fire and Rescue Department and the Derby Public Library. The Derby Difference Sales Tax began collection on January 1, 2015, upon the termination of the Library Sales Tax. The following table provides the amount of the Library Sales Tax (2010 – 2014) collected and received by the City during the years indicated:
Year Receipts 2010 $1,988,546 2011 2,001,128 2012 2,066,929 2013 2,130,908 2014 2,178,862 2015* 1,531,395
* As of August 2015 Source: Director of Finance
Oil Production
Oil production (in number of barrels) for Sedgwick County for the years listed is indicated in the following table:
Year Oil Production 2010 129,088 2011 134,272 2012 153,156 2013 173,255 2014 151,476
Source: Kansas Geological Survey
47 A-4 Financial and Banking Institutions
There are currently 41 banks located in Sedgwick County. For the years indicated, bank deposits (in millions of dollars) of the County’s banks are as follows:
Year Total Bank Deposits 2010 $ 9,577 2011 9,387 2012 10,992 2013 11,290 2014 11,672
Source: 2010-2013: Kansas Statistical Abstract, 2014: FDIC
Building Permits
The following table indicates the number of building permits and total valuation of these permits issued within the City for the years indicated. These numbers reflect permits issued either for new construction or for major renovation.
Number of Year Permits Issued Amount 2010 221 $30,716,329 2011 208 22,039,684 2012 143 25,132,870 2013 1 187 53,676,080 2014 2 193 41,124,915 2015 3 173 37,626,874
1 Permits issued in 2013 include $36,200,000 of school facilities which are exempt from property taxes. 2 Permits issued in 2014 include $16,376,000 of school facilities exempt from property taxes. 3 Permits through September 2015 Source: City of Derby/Planning & Engineering Department
Population Trends
The following table shows the approximate population of City and Sedgwick County in the years indicated:
City Sedgwick County Year Population Population 1980 9,786 367,088 1990 14,699 404,613 2000 17,807 453,491
2007 22,058 476,026 2008 22,517 482,863 2009 22,923 490,864 2010 22,158 498,365 2011 22,279 501,076 2012 22,943 503,889 2013 23,047 505,415 2014 23,234 508,803
The median age of persons in the City, Sedgwick County and the State of Kansas is 34.7, 34.2 and 36.0, respectively, per the 2010 Census.
Source: 1980, 1990, 2000 and 2010 data: U.S. Census Bureau; 2007 – 2009 and 2011 – 2014 data: Kansas Division of Budget
48 A-5 Personal Income Trends
Sedgwick County personal and per capita income and the State of Kansas per capita income are listed for the years indicated in the following table.
Sedgwick County Sedgwick County State of Kansas Personal Per Capita Per Capita Year Income Income Income 2009 $18,657,106,000 $37,691 $38,769 2010 18,585,930,000 37,227 38,811 2011 20,019,191,000 39,981 42,098 2012 20,767,836,000 41,252 43,380 2013 21,127,032,000 41,801 44,417
Source: U.S. Department of Commerce – Bureau of Economic Analysis
FINANCIAL INFORMATION
Accounting, Budgeting and Auditing Procedures
The City follows a modified accrual basis of accounting for all tax supported funds of the City, including the General Fund. An accrual basis of accounting is utilized for proprietary funds.
An annual budget of estimated receipts and disbursements for the coming calendar year is required by statute to be prepared for all funds (unless specifically exempted). The budget is prepared utilizing the modified accrual basis which is further modified by the encumbrance method of accounting. For example, commitments such as purchase orders and contracts, in addition to disbursements and accounts payable, are recorded as expenditures. The budget lists estimated receipts by funds and sources and estimated disbursements by funds and purposes. The proposed budget is presented to the governing body of the City prior to August 1, with a public hearing required to be held prior to August 15, with the final budget to be adopted by a majority vote of the governing body of the City prior to August 25 of each year. Budgets may be amended upon action of the governing body after notice and public hearing, provided that no additional tax revenues may be raised after the original budget is adopted.
The City may levy taxes in accordance with the requirements of its adopted budget. Property tax levies are based on the adopted budget of the City and the assessed valuations provided by the County appraiser. The 2015 Kansas Legislature passed legislation that, among other things, imposes an additional limit on the aggregate amount of property taxes that may be imposed by cities and counties, without a majority vote of qualified electors of the city or county (the “Tax Lid”). The Tax Lid has an effective date of January 1, 2018.
The Tax Lid provides that, subject to certain exceptions, no city or county may increase the amount of ad valorem tax to be levied over the amount levied in the prior year by an amount greater than the consumer price index without a majority vote of electors. Specific exceptions provided in the Tax Lid include increases in the ad valorem tax due to:
“(i) costs for new infrastructure or improvements to existing infrastructure to support new improvements to property exempt from property taxation pursuant to the provisions of K.S.A. 79-201 et seq., and amendments thereto, such as hospitals, schools and churches, or exempt additions to or improvements to property so exempt from property taxation; (ii) bond and interest payments; (iii) an increase in property subject to taxation as the result of the expiration of any abatement of property from property tax; (iv) increases in road construction costs when such construction has been once approved by a resolution of the governing body of the city or county; (v) special assessments; (vi) judgments levied against the city or county or expenses for legal counsel and for defense of legal actions against the city or county or officers of the city or county; (vii) new expenditures that are specifically mandated by federal or state law; or (viii) an increase in property subject to taxation as the result of new construction.”
Because of ambiguities in the Tax Lid, it is unclear how the various exceptions will be interpreted and how the Tax Lid will be implemented. As a result, is unclear how the Tax Lid will impact the City.
49 A-6 However, as described above, there is a specific exception in the Tax Lid for ad valorem tax increases necessary for “bond and interest payments.” This language has been interpreted in other contexts to include general obligation bonds and general obligation temporary notes. Therefore, the City is permitted under the Tax Lid to levy unlimited ad valorem taxes as necessary to pay principal of and interest on the Bonds, as required by the Bond Resolution.
The City cannot predict the impact of the Tax Lid on the ratings on the Bonds, or the general rating of the City. A change in the rating on the Bonds or a change in the general rating of the City may adversely impact the market price of the Bonds in the secondary market.
Kansas law prohibits governmental units from creating indebtedness unless there are funds on hand in the proper accounts and unencumbered by previous action with which to pay such indebtedness. An exception to this cash-basis operation is made where provision has been made for payment of obligations by bonds or other specific debt obligations authorized by law.
The financial records of the City are audited annually by a firm of independent certified public accountants in accordance with generally accepted auditing standards. In recent years, the annual audit has been performed by Berberich Trahan & Co., P.A., Topeka, Kansas. Copies of the audit reports for the past five (5) years are on file in the Clerk's office and are available for review. The audit for the Fiscal Year ended December 31, 2014, is attached hereto as APPENDIX B. The City has prepared a Comprehensive Annual Financial Report, which includes audited financial statements and other pertinent credit information.
The Governmental Accounting Standards Board (GASB) issued Statement No. 34, Basic Financial Statements–and Management’s Discussion and Analysis–for State and Local Governments in June 1999 (“Statement 34”), which established new requirements for the annual financial reports of state and local governments. Among the major changes embodied in Statement 34, governments will now be required to: (a) report on the overall state of the government’s financial health, not just its overall “funds” in a newly required Management’s Discussion and Analysis (MD&A), (b) provide the most complete information available about the cost of delivering services to their citizens in the annual report which will now also include financial statements prepared using full accrual accounting for all of the government’s activities, (c) include information about the government’s public infrastructure assets – such as bridges, roads and storm sewers, and (d) prepare an introductory narrative section analyzing the government’s financial performance. The City implemented Statement No. 34 for its financial statements for the fiscal year ending on December 31, 2005.
The financial information contained in the Appendices to this Official Statement are an integral part of this document and are intended to be read in conjunction herewith.
Sources of Revenue
The City finances its general operations through the local property tax levy, various other taxes, a variety of license and permit fees, and other miscellaneous sources as indicated below for the current fiscal year:
Source Percent Cash 41.23% Property Tax 13.61% Miscellaneous 7.04% Special Assessments 6.47% Sales Tax (County-wide) 6.29% Charges for Services 5.63% Reimbursements 4.96% City 1/2% Sales Tax 3.60% Franchise Fees 3.26% El Paso Water Co. Dividends 2.90% Inter-Fund Transfers 1.35% Motor Vehicle Taxes 1.34% Fines 1.11% Fees, Permits, Licenses 0.74% Fuel Sales 0.42% Interest 0.05% Total 100.00%
Source: Director of Finance
50 A-7 Property Valuations
The determination of assessed valuation and the collection of property taxes for all political subdivisions in the state of Kansas is the responsibility of the various counties under the direction of state statutes. The Sedgwick County Appraiser's office determines the assessed valuation that is to be used as a basis for the mill levy on property located in the Issuer.
Property subject to ad valorem taxation is divided into two classes, real property and personal property. Real property is divided into seven subclasses; there are six subclasses of personal property. The real property (Class 1) subclasses are: (i) real property used for residential purposes including multi-family mobile or manufactured homes and the real property on which such homes are located, assessed at 11.5%, (ii) agricultural land, valued on the basis of agricultural income or productivity, assessed at 30%, (iii) vacant lots, assessed at 12%, (iv) real property, owned and operated by a not-for-profit organization not subject to federal income taxation, pursuant to Code §501, assessed at 12%, (v) public utility real property, except railroad real property, assessed at the average rate that all other commercial and industrial property is assessed, assessed at 33%, (vi) real property used for commercial and industrial purposes and buildings and other improvements located on land devoted to agricultural use, assessed at 25%, and (vii) all other urban and real property not otherwise specifically classified, assessed at 30%. Tangible personal property (Class 2) subclasses are: (i) mobile homes used for residential purposes, assessed at 11.5%, (ii) mineral leasehold interests, except oil leasehold interests, the average daily production from which is 5 barrels or less, and natural gas leasehold interests, the average daily production from which is 100 mcf or less, which shall be assessed at 25%, assessed at 30%, (iii) public utility tangible personal property, including inventories thereof, except railroad personal property, including inventories thereof, which shall be assessed at the average rate all other commercial and industrial property is assessed, assessed at 33%, (iv) all categories of motor vehicles not defined and specifically valued and taxed pursuant to law enacted prior to January 1, 1985, assessed at 30%, (v) commercial and industrial machinery and equipment which if its economic life is 7 years or more, shall be valued at its retail cost, when new, less seven-year straight-line depreciation, or which, if its economic life is less than 7 years, shall be valued at its retail cost when new, less straight-line depreciation over its economic life, except that, the value so obtained for such property, notwithstanding its economic life and as long as such property is being used, shall not be less than 20% of the retail cost when new of such property, assessed at 25%, and (vi) all other tangible personal property not otherwise specifically classified, assessed at 30%. All property used exclusively for state, county, municipal, literary, educational, scientific, religious, benevolent and charitable purposes, farm machinery and equipment, merchants' and manufacturers' inventories, other than public utility inventories included in subclass (3) of class 2, livestock, and all household goods and personal effects not used for the production of income, shall be exempted from property taxation.
The Kansas Legislature reduced the applicable assessment rates on motor vehicles from 30% of market value to 20% of market value as of January 1, 2000.
The 2006 Kansas Legislature exempted from all property or ad valorem property taxes levied under the laws of the State all commercial, industrial, telecommunications and railroad machinery and equipment acquired by qualified purchase or lease after June 30, 2006 or transported into the State after June 30, 2006 for the purpose of expanding an existing business or creation of a new business.
Fair Market Value
The following table shows the fair market value of the taxable property (excludes fair market value of exempted properties and motor vehicles) within the City for the following years:
Year Fair Market Value 2011 $1,447,609,174 2012 1,467,371,633 2013 1,472,573,583 2014 1,504,579,472 2015* 1,534,443,446
* Preliminary 2015 Source: County Clerk
51 A-8 Assessed Valuation
The following table shows the assessed valuation of the taxable tangible property within the City for the following years:
Real Personal Motor Total Year Property Property Utilities Vehicles Valuation 2006 $126,596,735 $5,489,830 $4,651,299 $24,509,086 $161,246,950 2007 138,188,334 4,740,071 4,645,183 25,645,814 173,219,402 2008 154,463,187 3,931,941 4,439,197 26,237,032 189,071,357 2009 163,120,236 3,613,006 4,186,682 26,110,018 197,029,942 2010 169,797,854 2,450,928 4,396,296 25,791,351 202,436,429 2011 171,662,334 2,184,353 4,454,954 25,515,318 203,816,959 2012 174,536,259 2,011,624 4,470,862 26,381,444 207,400,189 2013 174,760,225 1,922,912 4,396,534 27,382,318 208,461,989 2014 179,508,156 1,339,570 4,380,760 27,923,062 213,151,548 2015 1 183,431,401 1,289,579 4,770,959 27,923,062 217,415,001
1 Preliminary 2015 assessed valuation figures used for budgeting purposes and to calculate the City’s bonded debt limit. 2015 motor vehicle valuation not yet available; 2014 data used for estimation purposes only. Source: County Clerk
Property Tax Levies and Collections
Tax Collections:
Tax statements are mailed November 1 each year and may be paid in full or one-half on or before December 20 with the remaining one-half due on or before May 10 of the following year. Taxes that are unpaid on the due dates are considered delinquent and accrue interest at a per annum rate established by State law until paid or until the property is sold for taxes. Real estate bearing unpaid taxes is advertised for sale on or before August 1 of each year and is sold by the County for taxes and all legal charges on the first Tuesday in September. Properties that are sold and not redeemed within two years after the tax sale are subject to foreclosure sale, except homestead properties which are subject to foreclosure sale after three years.
Personal taxes are due and may be paid in the same manner as real estate taxes, with the same interest applying to delinquencies. If personal taxes are not paid when due, and after written notice, warrants are issued and placed in the hands of the Sheriff for collection. If not paid on or before October 1, legal judgment is entered and the delinquent tax becomes a lien on the property. Unless renewed, a non-enforced lien expires five years after it is entered.
Motor vehicle taxes are collected periodically throughout the year concurrently with the renewal of motor vehicle tags based upon the value of such vehicles. Such tax receipts are distributed to all taxing subdivisions, including the State of Kansas, in proportion to the number of mills levied within each taxpayer's tax levy unit.
Tax Rates:
The City may levy taxes in accordance with the requirements of its adopted budget. Property tax levies are based on the adopted budget of the City and the assessed valuations provided by the County appraiser. The following table shows the City's mill levies by fund (per $1000 of assessed valuation) for each of the years indicated and the current year:
Year General Fund G.O. Bonds Misc. Funds Total Levy 2005/06 15.216 9.369 23.767 48.352 2006/07 36.550 6.187 5.439 48.176 2007/08 36.502 6.203 5.450 48.155 2008/09 35.890 6.157 5.709 47.756 2009/10 33.772 8.912 5.089 47.773 2010/11 31.566 11.577 4.675 47.818 2011/12 33.436 9.255 4.649 47.340 2012/13 34.843 7.680 4.630 47.153 2013/14 34.539 7.891 4.624 47.054 2014/15 32.211 10.302 4.636 47.149
Source: County Clerk
52 A-9 Aggregate Tax Levies:
The aggregate tax levies (per $1000 assessed valuation) of the City and overlapping jurisdictions for the years indicated are included in the following table:
Year City Sedgwick County School District State Cemetery District Total Levy 2005/06 48.352 28.758 52.082 1.5 1.627 132.319 2006/07 48.176 31.315 53.967 1.5 1.622 136.580 2007/08 48.155 31.333 51.405 1.5 1.272 133.665 2008/09 47.756 30.377 53.965 1.5 1.249 134.847 2009/10 47.773 29.868 54.122 1.5 1.031 134.294 2010/11 47.818 29.359 58.324 1.5 1.046 138.047 2011/12 47.340 29.428 57.631 1.5 1.040 136.939 2012/13 47.153 29.447 59.305 1.5 1.040 138.445 2013/14 47.054 29.377 60.082 1.5 1.058 139.071 2014/15 47.149 29.478 56.294 1.5 1.057 135.478
Source: County Clerk
Tax Collection Record:
The following table sets forth tax collection information for the City for the years indicated:
Total Total Taxes Amount of Current Amount of Current & Year Levy Levied Taxes Collected Delinquent Taxes Collected 2005/06 48.352 $6,241,170 $6,089,477 (98%) $6,175,920 (99%) 2006/07 48.176 6,596,052 6,446,254 (97%) 6,511,627 (99%) 2007/08 48.155 7,115,921 6,963,855 (98%) 7,021,292 (99%) 2008/09 47.756 7,730,746 7,562,210 (98%) 7,764,829 (101%) 2009/10 47.773 8,176,963 7,805,279 (95%) 7,928,318 (97%) 2010/11 47.818 8,446,919 8,035,759 (95%) 8,130,237 (96%) 2011/12 47.340 8,440,750 8,292,582 (98%) 8,364,011 (99%) 2012/13 47.153 8,543,051 8,356,145(98%) 8,487,638 (99%) 2013/14 47.054 8,524,135 8,372,568 (98%) 8,410,538 (100%) 2014/15* 47.149 8,733,258 8,559,257 (98%) N/A
* Collections as of September 4, 2015. Source: County Treasurer
Major Taxpayers:
The following table sets forth the ten largest taxpayers in the City for taxes levied in the tax collection period 2014/15:
Taxpayer Taxes Levied Assessed Valuation 1. Derby Marketplace LC $240,846.78 $5,108,228 2. Walmart Real Estate Business Trust 219,724.13 4,660,250 3. The Greens at Derby 165,026.69 3,500,142 4. Dillon Companies Inc 102,160.95 2,166,788 5. Kansas Gas & Electric-A Westar Energy Co 94,732.66 2,009,237 6. Target Corp 87,307.36 1,851,750 7. Fairways at Derby LP 84,038.09 1,782,410 8. Lowe’s Home Centers Inc 81,038.96 1,718,800 9. Kohl’s Illinois Inc 73,646.07 1,562,000 10. Kansas Gas Service-A Division of Oneok 60,608.39 1,285,477
Source: County Clerk
53 A-10 Risk Management
The City is insured against the risks arising from general liability by Phoenix Insurance Company and employee medical coverage (workers compensation) by Traveler’s Casualty and Surety Company.
History of Employment
The following table indicates the history of the Issuer's employment (including El Paso Water Company employees) for the years indicated.
Year Full-Time Employees Part-Time Employees Total 2011 163 26 189 2012 165 25 190 2013 166 24 190 2014 167 24 191 2015 174 30 204
Source: Director of Finance
Pension and Employee Retirement Plans
The Issuer participates in the Kansas Public Employees Retirement System (“KPERS”) established in 1962, as an instrumentality of the State, pursuant to K.S.A. 74-4901 et seq., to provide retirement and related benefits to public employees in Kansas. KPERS is governed by a board of trustees consisting of nine members, including four members appointed by the Governor subject to confirmation by the State Senate, one appointed by the President of the Senate, one appointed by the Speaker of the House of Representatives, two elected by members and retirants of the retirement system, which must be members of such system, and the State Treasurer. Members of the board of trustees serve four-year terms and elect a chairperson annually. The board of trustees appoints an Executive Director to serve as the managing officer of KPERS and employs a staff of approximately 95 people.
As of December 31, 2014, KPERS serves over 295,000 members and approximately 1,500 participating employers, including the State, school districts, counties, cities, public libraries, hospitals and other governmental units. KPERS administers the following three statewide, defined benefit retirement plans for public employees:
(a) Kansas Public Employees Retirement System; (b) Kansas Police and Firemen’s Retirement System; and (c) Kansas Retirement System for Judges.
These three plans are separate and distinct with different membership groups, actuarial assumptions, experience, contribution rates and benefit options. The Kansas Public Employees Retirement System is the largest of the three plans, accounting for more than 95% of the members. The Kansas Public Employees Retirement System is further divided into two separate groups, as follows:
(a) State/School Group - includes members employed by the State, school districts, community colleges, vocational-technical schools and educational cooperatives. The State of Kansas makes all employer contributions for this group, 85% of which comes from the State General Fund. State legislation enacted in 2003 made certain pre-1962 Board employees (which are part of a small group of pre-1962 Board and University of Kansas Hospital Authority employees known as the “TIAA Group”), special members of the State/School Group.
(b) Local Group - all participating cities, counties, library boards, water districts and political subdivisions are included in this group. Local employers contribute at a different rate than the State/School Group rate. State legislation enacted in 2003 made certain pre-1962 employees of the University of Kansas Hospital Authority (which are a part of a small group of pre-1962 Board and University of Kansas Hospital Authority employees known as the “TIAA Group”), special members of the Local Group.
KPERS is currently a qualified, governmental, § 401(a) defined benefit pension plan, and has received IRS determination letters attesting to the plan’s qualified status dated October 14, 1999 and March 5, 2001. KPERS is also a “contributory” defined benefit plan, meaning that employees make contributions to the plan. This contrasts it from noncontributory pension plans, which are funded solely by employer contributions. The Issuer's employees currently annually contribute 6% of their gross salary to the plan if such employees are KPERS Tier 1 members (covered employment prior to July 1, 2009) or KPERS Tier 2 members (covered employment on or after July 1, 2009).
54 A-11 In 2012, the Legislature created a new KPERS Tier 3 category (covered employment on or after January 1, 2015) based on a cash balance plan. Each Tier 3 member shall have a retirement annuity account to which such participant shall contribute 6% of their gross salary to the plan. The employer or State contribution varies based on longevity of participant service: (a) 3% for less than 5 years; (b) 4% for at least 5 years but less than 12 years; (c) 5% for at least 12 years but less than 24 years; and (d) 6% for 24 or more years. Such account shall receive an interest credit of 5.25% per annum, and under certain circumstances, shall receive additional interest credits. Subject to certain exceptions, a Tier 3 member, upon retirement, shall receive a single life annuity benefit.
Also in 2012, the Legislature adopted a number of other changes to KPERS including: (a) increasing the statutory maximum employer contribution annual increase from 0.6% per year (status quo) to 0.9% per year in 2014, 1.0% in 2015, 1.1% in 2016 and 1.2% per year in 2017 and thereafter, (b) eliminating COLA adjustments for Tier 2 member with corresponding benefit adjustments (effective January 1, 2014), (c) providing additional flexibility for alternative investments for the plan, and (d) providing additional contribution flexibility for Tier 1 members with corresponding benefit adjustments effective January 1, 2014, subject to approval by the IRS (the IRS issued a private letter ruling stating the election granted to Tier 1 members was impermissible; therefore, employee contributions for Tier 1 members increased to 5% of compensation effective January 1, 2014, and to 6% of compensation effective January 1, 2015).
In 2015, the Legislature authorized, subject to certain conditions, the issuance of revenue bonds in an amount not to exceed $1 billion (plus associated costs of issuance) (the “Revenue Bonds”), the proceeds of which must be applied to the unfunded actuarial pension liability as directed by KPERS. The repayment of the Revenue Bonds shall be subject to legislative annual appropriation, shall not be an obligation of the KPERS system, and the full faith and credit or taxing power of the State shall not be pledged to the repayment of the Revenue Bonds. Additionally, the statutory maximum annual increases to employer contributions for State/School Group and certain employees of the State department of corrections were modified as follows: (a) if the Revenue Bonds are issued and finance capitalized interest, an increase of 1.1% in 2015 and 1.2% in 2016 and thereafter; or (b) if such Revenue Bonds are not issued to finance capitalized interest, such rate of contribution shall be 10.91% in 2015 and 10.81% in 2016. The Revenue Bonds in the aggregate principal amount of $1,005,180,000 were issued on August 20, 2015, to finance a portion of the unfunded actuarial pension liability and costs of issuance, but did not finance capitalized interest.
The Issuer's contribution varies from year to year based upon the annual actuarial valuation and appraisal made by KPERS, subject to legislative caps on percentage increases. The Issuer's contribution is 9.48% of the employee’s gross salary for calendar year 2015. The rate is scheduled to change to 9.18% beginning January 1, 2016. In addition, the Issuer contributes 1% of the employee’s gross salary for Death and Disability Insurance for covered employees for the period beginning July 1, 2015, through June 30, 2016.
According to the Valuation Report as of December 31, 2014 (the “2014 Valuation Report”) the KPERS Local Group, of which the Issuer is a member, carried an unfunded accrued actuarial liability (“UAAL”) of $1.487 billion at the end of 2014. The 2014 Valuation Report includes additional information relating to the funded status of the KPERS Local Group, including recent trends in the funded status of the KPERS Local Group, and is available on the KPERS website at kpers.org/about/reports.html. The Issuer has no means to independently verify any of the information set forth on the KPERS website or in the 2014 Valuation Report, which is the most recent financial and actuarial information available on the KPERS website relating to the funded status of the KPERS Local Group. The 2014 Valuation Report sets the employer contribution rate for the period beginning January 1, 2017, for the KPERS Local Group, and KPERS’ actuaries identified that an employer contribution rate of 8.46% of covered payroll would be necessary, in addition to statutory contributions by covered employees, to eliminate the UAAL by 2033, the end of the actuarial period. The statutory contribution rate of employers currently equals the 2014 Valuation Report’s actuarial rate. As a result, members of the Local Group are adequately funding their projected actuarial liabilities and the UAAL can be expected to diminish over time. KPERS’ actuaries project the required employer contribution rate to increase by the maximum statutorily allowed rate, which is currently 0.9% in fiscal year 2014, then 1.0% in fiscal year 2015, 1.1% in fiscal year 2016 and 1.2% in fiscal year 2017 and thereafter.
The Issuer has established membership in the Kansas Police and Fire Retirement System (“KP&F”) for its police and fire personnel. KP&F is a division of and is administered by KPERS. Annual contributions are adjusted annually based on actuarial studies, subject to legislative caps on percentage increases. According to the 2014 Valuation Report, KP&F carried an UAAL of $726 million at the end of 2014. For the year beginning January 1, 2015, employees contributed 7.15% of gross compensation and the Issuer contributed 21.36% of employees’ gross compensation. Beginning January 1, 2016, the Issuer’s contribution will change to 20.42% of gross compensation. In 2013, the Legislature adopted a number of changes to the KP&F which included (a) raising the cap on maximum KP&F benefits from 80% to 90% of final average salary and (b) permitting certain active KP&F members to pay a lump sum amount prior to or on their retirement date to enhance the individual retirement benefit at their own cost.
55 A-12 In 2015, the Issuer is required to implement GASB 68 – Accounting and Financial Reporting for Pensions. According to KPERS’ Schedule of Employer and Nonemployer Allocations and Schedules of Pension Amounts by Employer and Nonemployer for the fiscal years ended June 30, 2014 and 2013 (the “GASB 68 Report”), the net pension liability allocated to the Issuer as of June 30, 2014, is $8,640,032. The GASB 68 Report is available on the KPERS website at kpers.org/about/reports.html. The Issuer has no means to independently verify any of the information set forth on the KPERS website or in the GASB 68 Report. It is important to note that under existing State law, the Issuer has no legal obligation for the UAAL or the net pension liability calculated by KPERS, and such figures are for informational purposes only.
DEBT STRUCTURE
Debt Summary
The following table summarizes certain key statistics with respect to the Issuer's general obligation debt, including the Bonds, and excluding the Refunded Notes:
Less Self Debt Summary (As of December 10, 2015) City Debt Supporting Debt Fair Market Value of Taxable Property 1 ...... $1,534,443,446 $1,534,443,446 Equalized Assessed Valuation of Tangible Valuation for Computation of Bonded Debt Limitations 2 ...... $217,415,001 $217,415,001 Legal limitation of Bonded Debt 3...... $65,224,500 $54,224,500 Outstanding General Obligation Debt ...... $64,380,000 $64,380,000 Statutory Exempt Debt ...... $23,499,543 --- Net Debt against Debt Limit Capacity ...... $40,880,457 --- Additional Debt Capacity...... $24,344,043 --- Less Self Supporting Debt 4 ...... --- $8,250,000 Non Self Supporting Debt ...... --- $56,130,000 Direct Debt Per Capita (Population = 23,234)...... $2,771 $2,416 Direct and Overlapping Debt Per Capita...... $4,176 $3,821 Direct Debt as a Percentage of Assessed Valuation ...... 29.61% 25.82% Direct and Overlapping Debt as a Percentage of Assessed Valuation...... 44.62% 40.83% Statutory Direct Debt as a Percentage of Assessed Valuation...... 18.80% --- Direct Debt as a Percentage of Actual Fair Market Value ...... 4.20% 3.66% Direct and Overlapping Debt as a Percentage of Actual Fair 6.32% 5.79% Market Value......
1 See “Property Valuations” infra. Preliminary 2015 value. 2 The assessed value of all tangible taxable property within the City, as certified to the County Clerk on the preceding August 25. Also includes the taxable value of motor vehicles within the City. 2015 motor vehicle valuation not yet available; 2014 data used for estimation purposes only. See K.S.A. 10-301 et seq. 3 See K.S.A. 10-301 et seq. 4 Series 2013-B Bonds (Water System), Refunding Portion of Series 2014-A Bonds (Water System), Series 2014-C Bonds and Series 2015-B Bonds (Derby Difference Sales Tax).
56 A-13 Current Indebtedness of the Issuer
The following table sets forth as of the date of issuance of the Bonds all of the outstanding obligations of the Issuer including the Bonds and excluding the Refunded Bonds:
GENERAL OBLIGATION BONDS
Original Exempt Category of Dated Final Principal Amount From Indebtedness Date Maturity Amount Outstanding Debt Limit Exempt % G.O. Bonds, Series 2008-B 12/01/08 12/01/21 $8,670,000 $3,075,000 $1,219,545 39.66% Taxable G.O. Bonds (Build America Bonds - 08/01/09 12/01/29 10,255,000 7,845,000 2,337,759 29.80% Direct Payment to Issuer), Series 2009-A G.O. Bonds, Series 2009-B 08/01/09 12/01/24 2,680,000 1,800,000 866,340 48.13% G.O. Bonds, Series 2010-A 06/01/10 12/01/25 3,020,000 2,205,000 1,379,889 62.58% G.O. Refunding Bonds, Series 2010-C 10/15/10 12/01/21 3,985,000 1,695,000 831,059 49.03% G.O. Refunding and Improvement Bonds, 9/15/11 12/01/31 9,650,000 6,470,000 3,422,630 52.90% Series 2011-A G.O. Refunding Bonds, Series 2012-A 03/15/12 12/01/23 7,585,000 5,455,000 2,135,087 39.14% G.O. Bonds, Series 2012-B 09/13/12 12/01/32 3,165,000 2,620,000 1,459,340 55.70% G.O. Refunding and Improvement Bonds, 05/09/13 06/01/33 6,200,000 5,160,000 611,099 16.27% Series 2013-A G.O. Water System Refunding Bonds, 09/17/13 12/01/22 3,375,000 3,280,000 3,280,000 100.00% Series 2013-B 1 G.O. Refunding and Improvement Bonds, 06/12/14 12/01/34 4,510,000 3,795,000 873,269 23.01% Series 2014-A 1 G.O. Refunding Bonds, Series 2014-B 12/15/14 12/01/21 3,300,000 2,560,000 681,958 26.64% G.O. Sales Tax Bonds, Series 2014-C 2 12/15/14 12/01/24 5,380,000 5,060,000 0 0.00% G.O. Refunding Bonds, Series 2015-A 04/01/15 12/01/24 3,165,000 3,120,000 1,237,392 39.66% G.O. Sales Tax Bonds, Series 2015-B 2 04/01/15 12/01/24 1,725,000 1,555,000 0 0.00% G.O. Bonds, Series 2015-C 12/10/15 12/01/35 4,875,000* 4,875,000* 2,344,875* 48.10% Total $60,570,000* $22,680,242*
1 Primarily payable from Net Revenues of the Water System (except only the Refunding Portion of the Series 2014-A Bonds is primarily payable from the Net Revenues of the Water System). 2 Primarily payable from revenues of the Derby Difference Sales Tax.
TEMPORARY NOTES
Original Exempt Category of Dated Final Principal Amount From Indebtedness Date Maturity Amount Outstanding Debt Limit Exempt % Taxable G.O. Temporary Notes, Series 2013-1 3 09/17/13 12/15/15 $4,630,000 $ 0 $ 0 63.51% Taxable G.O. Temporary Notes, Series 2014-1 3 12/15/14 12/01/17 3,885,000 3,810,000 819,301 21.50% Total $3,810,000 $819,301
3 Excludes Refunded Notes.
REVENUE OBLIGATIONS
As of the issuance of the Bonds, the City currently has no outstanding revenue obligations.
CAPITAL LEASE OBLIGATIONS
As of the issuance of the Bonds, the City currently has no outstanding capital lease obligations.
Source: Director of Finance
57 A-14 History of General Obligation Indebtedness
The following table sets forth general obligation debt (excluding temporary notes and self-supporting general obligation bonds) information pertaining to the City as of the end of each of the years indicated:
Year Total Debt Debt As % of Assessed Value Debt Per Capita 2005 $42,790,000 28.21% $2,177.61 2006 45,035,000 28.11% 2,162.75 2007 41,235,000 23.95% 1,954.17 2008 49,330,000 26.09% 2,236.38 2009 58,210,000 29.54% 2,585.16 2010 56,985,000 28.05% 2,571.76 2011 54,435,000 26.71% 2,456.67 2012 53,150,000 25.63% 2,385.65 2013 49,395,000 23.71% 2,152.94 2014 53,235,000 24.98% 2,309.85
Source: Director of Finance
The City has never in its history defaulted on the payment of any of its debt obligations.
State Loans
The City has entered into the following Loan Agreement (the “Loan”) with the Kansas Department of Health and Environment in the amount of $3,371,000 to finance improvements to the City's sewer utility system (the “System”). The term of this Loan is 20 years and provides for approximately level annual debt service payments. The Loan is a “draw- down” obligation with interest accruing on the advanced principal, which interest is payable on a semi-annual basis or at the option of the City, added as principal amount of the Loan. When the improvements are complete, the final principal amount of the Loan will be adjusted and Loan repayment terms will be re-amortized. In addition, the City was awarded funding from the American Recovery and Reinvestment Act (ARRA) in the form of principal forgiveness, not to exceed $1,600,000.
Purpose of Dated Final Original Amount Indebtedness Date Payment Date Principal Amount Outstanding Bio-solids waste handling equipment 2/10/2011 3/1/2032 $3,371,000 $1,227,293
Source: Director of Finance
Overlapping Indebtedness
The following table sets forth overlapping indebtedness as of December 10, 2015, and the percent attributable (on the basis of assessed valuation excluding motor vehicle valuation) to the City:
Outstanding Percent Amount Taxing Assessed General Obligation Applicable Applicable Jurisdiction Valuation 1 Indebtedness To City to City Sedgwick County $4,413,658,563 $67,780,000 2 4.29% $ 2,907,762 U.S.D. No. 260 387,834,926 61,330,000 48.48% 29,732,784 Total $32,640,546
1 Preliminary 2015 assessed valuation figures used for budgeting purposes. 2 Includes County’s $13,725,000 (approximate principal amount) General Obligation Refunding and Improvement Bonds, Series A, 2015, to be issued November 19, 2015.
Future Indebtedness
The City has adopted a plan to evaluate the issuance of temporary notes to finance the costs of certain internal improvements, primarily consisting of subdivision improvements, as well as parks and recreation projects for the Derby Recreation Commission. The City has also adopted a policy of issuing general obligation bonds annually or bi-annually, as necessary, to permanently finance such internal improvements.
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58 A-15 APPENDIX B
FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS (FOR THE FISCAL YEAR ENDED 12/31/2014)
59 APPENDIX C
SUMMARY OF FINANCING DOCUMENTS
60 City Council Meeting 8. B. Meeting Date: 10/13/2015 Submitted By: Robert Mendoza, Director of Public Works Agenda Category: New Business
Subject: Dump Truck Replacement
Background: The 2015 budget provides for replacement of a 20 ton dump truck, currently used for snow removal and carries a 1,600 gallon brine tank. The current truck has significant structural chassis issues, and cannot continue to serve in this capacity. Bids were opened on October 1, 2015 with three companies responding:
Kansas Truck Center $120,394 Summit Truck Group $120,840 American Road Machinery Company $157,000
Kanas Truck Center provided the low bid of $120,394. The Bid Board reviewed and approved the low bid on October 5, 2015.
Financial/Sustainability Considerations: The vehicle replacement budget provided $152,000.
Recommend a Motion to: Authorize purchase of a 2016, 20-ton dump truck from Kansas Truck Center in the amount of $120,394.
61 City Council Meeting 8. C. Meeting Date: 10/13/2015 Submitted By: Cody Bird, City Planner Agenda Category: New Business
Subject: Zone Change Request from R-1 to I-1 at the Northwest Corner of Louisa St. and Westview Dr.
Background: Cross Way Church has requested the zoning designation of its 1.7 acre site located at the northwest corner of Louisa St. and Westview Dr. be changed from the existing R-1 "Single-family Residential District" to I-1 "Institutional District." The existing church building was originally constructed in 1960 and is currently operated as a legal nonconforming use within the R-1 zoning district. The church requests the zone change to permit operation of a preschool. Both preschools and churches are permitted uses in the requested I-1 "Institutional District." The Planning Commission conducted the required public hearing at the September 17, 2015 meeting. No comments were made during the public hearing. City staff has not received any verbal or written communications since the close of the public hearing. Following the close of the public hearing, the Planning Commission voted unanimously to forward a recommendation for approval of the requested zone change to the City Council. The minutes of the Planning Commission meeting, including the written findings of fact used by the Planning Commission as a basis for its recommendation, are attached.
Financial/Sustainability Considerations: City services are already available at this location. Approval of the zone change request is not anticipated to result in an increased need for city services or create additional burden on city services that cannot be accommodated with existing resources.
62 Legal Considerations: All conditions precedent to Council's consideration of this requested zone change have been satisfied. No protest petition was filed within the prescribed 14-day protest period. The Zoning Act (K.S.A. 12-741 et seq.) provides that zoning matters are to be determined by the "governing body," which includes the mayor and council (K.S.A. 12-104). The Zoning Act confers an original vote on the mayor, and he may cast his vote equally as a member of the governing body. The governing body may take one of the following three actions when the Planning Commission submits a recommendation of approval or disapproval of a zone change request: 1. Adopt the recommendation of the Planning Commission by the affirmative votes of a majority of the members of the governing body (5 votes). 2. Override the recommendation of the Planning Commission by a "2/3 majority vote of the membership of the governing body" (6 votes). 3. Return the recommendation to the Planning Commission with a statement specifying the basis for the governing body's failure to approve or disapprove (5 votes).
Policy Considerations: The requested I-1 "Institutional District" zoning for the subject property is consistent with the City's Comprehensive Plan.
Recommend a Motion to: Approve an ordinance rezoning a 1.7 acre tract at the northwest corner of Louisa St. and Westview Dr. from R-1 "Single-family Residential" to I-1 "Institutional District" based on the Planning Commission's findings of fact.
Attachments Rezone Ordinance Location and Zoning Maps PC Minutes
63 Passed: Published:
ORDINANCE NO. ______
AN ORDINANCE REZONING REAL PROPERTY LOCATED WITHIN THE CITY OF DERBY, KANSAS, FROM R-1 “SINGLE-FAMILY RESIDENTIAL” TO I-1 “INSTITUTIONAL DISTRICT;” AND AMENDING THE OFFICIAL ZONING MAP OR MAPS OF THE CITY TO REFLECT SUCH AMENDMENT, ALL PURSUANT TO THE ZONING REGULATIONS OF THE CITY.
BE IT ORDAINED by the Governing Body of the City of Derby, Kansas:
SECTION 1. Having received the recommendation of the City Planning Commission following notice and hearing thereon as provided by law and pursuant to Zoning Regulations of the City of Derby, Kansas, the zoning of the following described real property is hereby amended from R-1 “Single-family Residential” to I-1 “Institutional District”:
South 250 feet of Lot 4, Gerteis Addition to Derby, Sedgwick County, Kansas.
General Property location: Northwest corner of Louisa Street and Westview Drive – 421 N Westview Drive
SECTION 2. The Zoning Ordinance of the City of Derby, Kansas, first adopted by City of Derby Ordinance Number 940 and subsequently amended, and the official zoning map of the City of Derby, Kansas are hereby amended in accordance with Section 1 of this Ordinance.
SECTION 3. 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 4. This ordinance shall take effect and be in force from and after its passage and publication once in the official city newspaper.
ADOPTED BY THE GOVERNING BODY this 13th day of October, 2015.
Randy White, Mayor ATTEST:
Karen Friend, City Clerk
64 Approved as to form:
Jacqueline R. Butler, City Attorney
2 65 Location Map: 421 N Westview Dr.
Proposed Rezone Area
N No Scale
66 Existing Zoning Map: 421 N Westview Dr.
R-1
B-4
B-4 I-1 R-1 R-3 Proposed Rezone Area
R-2 R-1 R-1 R-1
N No Scale
67 CITY OF DERBY MEETING OF THE PLANNING COMMISSION REGULAR MEETING September 17, 2015 6:30 P.M.
1. CALL MEETING TO ORDER
2. ROLL CALL
Commissioners Present
Mitch Adams Pat Baer Larry Gould Herman Hicks Paula Langworthy Dennis Poteete Jessica Rhein Edward Sheldon Van Willis Kathy Wills
3. CONSIDERATION OF MINUTES
3. A. Regular Meeting Minutes of September 3, 2015
Recommend a Motion to: Approve the regular meeting minutes of September 3, 2015 as presented.
Moved by Pat Baer, seconded by Dennis Poteete, to approve the regular meeting minutes of September 3, 2015 as presented. Vote: 7 - 0
Other: Paula Langworthy (ABSTAIN) Van Willis (ABSENT) Kathy Wills (ABSTAIN) 68
4. PUBLIC FORUM
5. NEW BUSINESS
5. A. Zone Change: Northwest corner of Louisa St. and Westview Dr. from R-1 "Single-family Residential District" to I-1 "Institutional District."
General Location: 421 N Westview Dr.
Applicant/Agent: Applicant: Cross Way Church Agent: Joplin Emberson, Lead Pastor
Reason for Request: Seeking appropriate zoning for existing church and to allow the church to operate a preschool
Background Information: Cross Way Church has requested that their church site at 421 N. Westview be rezoned from R-1 "Single-family Residential District" zoning to I-1 "Institutional District." The legal description of the property is the south 250 ft. of Lot 4, Gerteis Addition to Derby, Sedgwick County, Kansas. The property consists of approximately 1.7 acres. The existing church building was originally constructed in 1960 and is currently operated as a legal nonconforming use within the existing R-1 zoning district. Church staff originally contacted the City to request confirmation of the property's current zoning for an application to the State in order to operate a preschool. Preschools in R-1 zoning require approval of a conditional use. Churches also require conditional use approval within R-1 zoning districts unless the church is an existing legal nonconforming use. Both churches and preschools are permitted uses within the requested I-1 "Institutional District." If approved, the I-1 zoning designation would allow the church to operate a preschool without any additional zoning approvals. Zone change requests require a public hearing: Notice of the public hearing was published in the Derby Informer on August 26, 2015. Notices were mailed to neighboring property owners as prescribed by state law. Signs advertising the public hearing were placed on the property 14 days in advance of the public hearing. The official ownership list of the notification area is on file at City Hall.
Staff Comments: 69 Section 1100(I) of the zoning regulations provides the guidelines for development of Findings of Fact which act to support the Planning Commission's recommendation in a rezoning case. The Planning Commission may find that not all factors will be relevant to this zone change request. Factors determined to be relevant by the Commission should be given consideration relative to both positive and negative findings. In order to properly make a recommendation to the City Council, the Planning Commission must make specific and substantiated Findings of Fact supporting its recommendation. FINDINGS OF FACT
The following are the rezoning factors the Planning Commission must consider, a brief explanation of each factor, and staff's opinion of findings for each factor: 1. THE ZONING, USES AND CHARACTER OF THE NEIGHBORHOOD: (Factual description of the application area and surrounding property as to existing zoning, land uses, general condition, age of structures, etc.) The subject property is a 1.7 acre portion of a platted lot located at the northwest corner of Louisa St. and Westview Dr. The existing church structure was originally constructed in 1960 and continues to operate as a church. The existing parking lot serving the church is paved and is maintained in good condition. Structures on nearby properties appear to be in good repair and are being well maintained. Existing single-family homes were primarily built in the 1940's and 50's. Existing zoning and land uses adjacent to the proposed rezoning area are as follows:
Surrounding Zoning and Land Uses Direction Zoning Land Use North I-1 "Institutional District" - Skilled nursing and rehabilitation - Senior living East R-1 "Single-family - Public school facilities and Residential" athletic fields South R-1 "Single-family - Single-family homes Residential" - Public park - Duplexes R-2 "Two-family Residential" West R-1 "Single-family - Single-family homes Residential"
2. THE SUITABILITY OF THE SUBJECT PROPERTY FOR THE USES TO WHICH IT HAS BEEN RESTRICTED: (How is the property currently zoned and what uses are allowed on the property? Are there uses suitable given 70 surrounding zoning and site criteria? Are the current allowed uses the only ones that might be appropriate for this property?) The property is presently zoned R-1 "Single-family Residential" which is the city's most restrictive zoning district and is limited to single-family homes and accessory uses. Adjacent properties are developed for a variety of uses ranging from single- and two-family homes to skilled nursing facilities, public parks and public school facilities. Retail and commercial uses also exist in close proximity to the property. There are a variety of uses surrounding the property, including uses consistent with the I-1 zoning requested. The property is suitable for uses not allowed within the present R-1 zoning. Uses permitted in the requested I-1 zoning are suitable for the subject site.
3. EXTENT TO WHICH REMOVAL OF THE RESTRICTIONS WILL DETRIMENTALLY AFFECT NEARBY PROPERTY: (Can the uses allowed in the requested district be good neighbors to existing development? This is a subjective question. The focus should be on facts, not fears, and should be based on issues that zoning can address [for example, allowed uses, minimum lot size, height, setbacks, traffic generation, landscaping and screening, use limitations, etc.]) The requested I-1 zoning is intended for moderate density and moderate intensity institutional uses and limited office uses. I-1 zoning is generally used as a buffer between residential uses and more intense commercial uses or arterial streets. Building height and setback requirements for the requested I-1 zoning are generally compatible with the requirements of adjacent institutional and residential properties. I-1 zoning has requirements for providing a landscaped buffer along property lines adjacent to single- and two-family residential uses. The existing church parking lot is approximately 80 ft. from the nearest property line adjoining a single-family residential property, and existing trees are appropriate to meet the requirements for the landscaped buffer. Other property lines do not require buffering. The property was originally developed for church use and has continued to operate as such. The proposed rezoning is not expected to significantly impact traffic generation.
4. LENGTH OF TIME THE SUBJECT PROPERTY HAS REMAINED VACANT AS ZONED: (Factual information, but its importance may be somewhat subjective. A property may be vacant because the current zoning is unsuitable, but there may be other reasons not related to zoning. Some examples might be a glut of available property of the same zoning district, financing problems, land speculation, fragmented ownership, lack of available public services or other development problems.) The existing church facility was constructed in 1960 and the use has continued since that time. The significance of this factor may not be a relevant consideration in this zone change request since the property is not vacant. 71 5. RELATIVE GAIN TO THE PUBLIC HEALTH, SAFETY AND WELFARE AS COMPARED TO THE LOSS IN VALUE OR THE HARDSHIP IMPOSED UPON THE APPLICANT: (The protection of public health, safety and welfare is the primary basis for zoning. The relationship between the property owner's right to use and obtain value from their property and the City's responsibility to its citizens should be weighed.) Land use restrictions fall under the jurisdiction of police power, conferred to the City from the State. Police power includes the responsibility for a city to provide for the protection of the safety, health and welfare of the community. Zoning of land into categories or districts has long been recognized as an appropriate means of ensuring that proposed uses of land are compatible with neighboring land uses. The rezoning of the subject property from R-1 "Single-family Residential" to I-1 "Institutional District" should not have an adverse impact on the community's health, safety, or welfare. Rezoning of the property to allow for uses already existing at this location should not have any impact on the value of adjoining properties. Public infrastructure needed to serve the subject property is already in place and no negative impacts to community resources is anticipated.
6. CONFORMANCE OF THE REQUESTED CHANGE TO THE ADOPTED OR RECOGNIZED COMPREHENSIVE PLAN: (Does the request agree with the adopted plan recommendations? If not, is the plan out-of-date or are there mitigating circumstances which speak to the nonconformity?) The requested I-1 "Institutional District" zoning is consistent with the adopted Comprehensive Plan. The Comprehensive Plan identifies the property as being "Public/Semi-public," which includes churches and religious uses. The Comprehensive Plan encourages integration of compatible land uses rather than a strict segregation of uses. The proposed I-1 zoning is compatible with the adjacent properties, and is appropriate for integrating I-1 uses into this area.
7. IMPACT OF THE PROPOSED DEVELOPMENT ON COMMUNITY FACILITIES: (Are water and sewer available for extension? How are roads impacted? Can other community facilities [for example, police, fire, parks, libraries, and schools] handle the increased development? Should be based on factual information referencing standards used to make the determination.) Municipal utilities and services are already provided to serve this site and no additional burden is anticipated that cannot be accommodated with existing resources. Any impact on the library, parks or schools will be negligible.
8. OPPOSITION OR SUPPORT OF NEIGHBORHOOD RESIDENTS: (This is just one of the factors to be considered and by itself is not sufficient reason to approve or deny a request.) At the time of this writing, City staff has received one inquiry about the zone 72 change request: Staff responded to general questions about uses permitted in the I-1 zoning district and why the church has requested the zone change. The individual commented that he did not oppose the rezoning, and that he would likely not attend the public hearing.
9. RECOMMENDATION OF PROFESSIONAL STAFF: (Should be based on the preceding eight factors, adopted plans and policies, other technical reports [such as, Capital Improvement Plan, facility master plans, etc.] which speak to the topic and staff's best professional judgment.) Based on the preceding factors, City staff supports the requested zone change from R-1 "Single-family Residential District" to I-1 "Institutional District."
Recommend a Motion to: Approve the request to change the zoning district classification from R-1 "Single-family Residential District" to I-1 "Institutional District" based on the facts stated in the staff report and forward a recommendation of approval to the City Council.
PUBLIC HEARING OPEN
Chairman Adams opened the public hearing and determined that a quorum was present.
Cody Bird, City Planner announced that proper notice had been given in accordance with State law.
Adams noted that Commissioner Willis arrived at 6:35pm.
Adams asked commissioners to report any ex parte communications. No ex parte communications were reported.
Bird presented the staff report.
Adams asked the applicant if she had any comments.
The Cross Way Church representative did not share any additional comments.
PUBLIC HEARING CLOSED
Adams asked city staff to present a summary of the Findings of Fact.
Bird presented the findings provided in the written the staff report.
1. THE ZONING, USES AND CHARACTER OF THE NEIGHBORHOOD:
Commissioner Rhein asked what the current zoning district is for churches. 73 Bird said churches are typically zoned as I-1 "Institutional District;" however some churches are located in the R-1 "Single-Family Residential District" as legal nonconforming uses.
Adopted the written findings contained in the staff report.
2. THE SUITABILITY OF THE SUBJECT PROPERTY FOR THE USES TO WHICH IT HAS BEEN RESTRICTED:
Adopted the written findings contained in the staff report. No questions or comments.
3. EXTENT TO WHICH REMOVAL OF THE RESTRICTIONS WILL DETRIMENTALLY AFFECT NEARBY PROPERTY:
Commissioner Sheldon asked if the western portion of the property is located in a flood plain. Bird indicated that the significant of the flood plain is not a contributing factor relevant to this zone change request. Commissioner Willis asked if a flood plain would be of concern for parking areas. Bird said parking would not be affected and there were no changes proposed at this time.
4. LENGTH OF TIME SUBJECT PROPERTY HAS REMAINED VACANT AS ZONED:
Adopted the written findings contained in the staff report. No questions or comments.
5. RELATIVE GAIN TO THE PUBLIC HEALTH, SAFETY AND WELFARE AS COMPARED TO THE LOSS IN VALUE OR THE HARDSHIP IMPOSED UPON THE APPLICANT:
Adopted the written findings contained in the staff report. No questions or comments.
6. CONFORMANCE OF THE REQUESTED CHANGE TO THE ADOPTED OR RECOGNIZED COMPREHENSIVE PLAN:
Commissioner Poteete commended the church for requesting to change the zoning of the church property to be consistent with the Comprehensive Plan.
Adopted the written findings contained in the staff report.
7. IMPACT OF THE PROPOSED DEVELOPMENT ON COMMUNITY FACILITIES:
Adopted the written findings contained in the staff report. No questions or comments.
8. OPPOSITION OR SUPPORT OF NEIGHBORHOOD RESIDENTS:
Adopted the written findings contained in the staff report. No questions or comments.
74 9. RECOMMENDATION OF PROFESSIONAL STAFF:
Adopted the written findings contained in the staff report. No questions or comments.
Moved by Van Willis, seconded by Kathy Wills, to approve the request to change the zoning district classification from R-1 "Single-family Residential District" to I-1 "Institutional District" based on the facts stated in the staff report and forward a recommendation of approval to the City Council. Vote: 10 - 0
5. B. Vacation Request: Vacate a Portion of Platted Access Control and Platted Front Setback
General Location: 1015 E. Madison Avenue
Applicant/Agent: Applicant: Michael and Mary Thornton
Reason for Request: Construct new circular driveway entrance
Background Information: The owners of the residence at 1015 E. Madison have requested vacation of 20 ft. of platted access control to Madison Ave. along with 5 ft. of platted front yard setback on Lot 2, Block A, Brookwood 3rd Addition. The property is developed as a single-family residence. The owner desires to construct a circular driveway to better facilitate vehicular access to the site. The owner has a trailer which is backed into the carport on the site. Backing the trailer onto the existing driveway requires the owner to temporarily block traffic on Madison Ave. A circular driveway, if approved, would provide adequate space for a trailer to be maneuvered into position to be backed into the carport without obstructing the public street. Construction of the circular drive also allows vehicles to exit the residence without backing onto Madison Ave. In order to construct the circular driveway, 20 ft. of platted access control along Madison Ave. must be vacated to allow the new opening. The applicant has also requested vacation of a portion of the front yard setback in order to meet the regulation which limits the paved area in a required front yard to 850 sq. ft. The required front yard is defined as the area between the property line and the platted building setback line. A 5 ft. reduction of the required front yard would allow more of the driveway 75 City Council Meeting 8. D. Meeting Date: 10/13/2015 Submitted By: Cody Bird, City Planner Agenda Category: New Business
Subject: First Reading: Mobile Food Vending Ordinance
Background: The City's current code provisions in Chapter 5.12--Food Vending License are outdated and do not address the specific needs of food trucks and mobile food vending. Due to the difficulty in applying the existing code provisions, recent practice has been to regulate mobile food vendors through temporary use permits under the City's zoning ordinance. The existing temporary use regulations require a fixed location and limited duration. Current temporary use regulations limit vendors to 14 days per location, and restrict locations to no more than one sales event per location per consecutive 3-month period. Mobile food vendor operations are dependent on the ability to change location based upon demand which the existing regulations do not allow. The proposed ordinance provides flexibility for mobile food businesses by allowing food vendors to operate at multiple temporary locations pursuant to the registration process and promotes doing business in Derby. The ordinance proposes to allow food trucks and mobile food vendors to operate in non-residential zoning districts in Derby, subject to defined operating conditions: Completion of a registration process with the City. Location within an approved zoning district and in a manner that does not hinder traffic, pedestrian, or bicycle access. Written permission of the property owner. Hours of operation limited to 6:00 a.m. to 11:00 p.m. Vendors must show proof upon request of all applicable licenses and permits for use and operation of mobile food units from all appropriate jurisdictions. Any proposed event, location or use not meeting the terms of the proposed ordinance may still apply for a temporary use permit in accordance with zoning regulations.
76 Financial/Sustainability Considerations: The recommended registration fee includes options for the following permit periods: one-week ($25), one-month ($50), and six-month ($200). Fees are not set in this ordinance rather in the Fee Resolution.
Legal Considerations: Replacing outdated and unused ordinances is a good practice because it promotes consistent application and enforcement. The proposed ordinance was drafted by the City Attorney's office after review of case law and mobile vending ordinances in other Kansas cities. Regulating mobile food vending in the City Code is preferable to the Zoning Ordinance because it provides flexibility to address concerns and amendments as may arise.
Policy Considerations: Mobile food vending operations are an increasingly popular business model in the marketplace. Derby's existing regulations do not adequately address the location needs of the mobile food vending industry. "Food trucks" and other mobile food businesses are designed with the ability to change locations frequently to capitalize on locations or events where a large number of people are visiting. Regulations which provide flexibility for mobile food vendors will promote doing business in Derby as well as assist in hosting successful special events in Derby.
Recommend a Motion to: Schedule a second reading of the Mobile Food Vending Ordinance for October 27.
Attachments Ordinance for Mobile Food Vending
77 101315 Mobile Food Vending Registration
Passed:
Published:
ORDINANCE NO. ______
AN ORDINANCE PROVIDING FOR THE REGISTRATION OF MOBILE FOOD VENDORS WITHIN THE CITY OF DERBY, KANSAS BY AMENDING ALL OF CHAPTER 5.12 OF THE DERBY MUNICIPAL CODE AND REPEALING ALL OTHER CONFLICTING ORDINANCES AND PARTS OF ORDINANCES.
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF DERBY, KANSAS:
Section 1. Chapter 5.12 – Food Vending License is hereby amended to read as follows:
“Chapter 5.12 – MOBILE FOOD VENDING REGISTRATION
Sections:
5.12.010 - Definitions. 5.12.020 – Vending without registering with the City. 5.12.030 – Registration application. 5.12.040 – Fee. 5.12.050 – Certificate of registration. 5.12.060 – Operating conditions. 5.12.070 – Certificate denial, revocation, and appeal. 5.12.080 – Term and transferability. 5.12.090 – Parking to dispense products in public rights-of-way. 5.12.100 – Sound devices. 5.12.110 - Exemption. 5.12.120 – Posting. 5.12.130 – Penalty for violation. 5.12.140 – Severability.
5.12.010 – Definitions. The words and phrases listed below when used in this Chapter shall have the following meanings:
“City Approved Event” shall mean any event sponsored by the City, any event such as a community celebration or festival approved by the Governing Body, or any event sanctioned by a permit issued by the City, including but not limited to a Temporary Use Permit.
78 101315 Mobile Food Vending Registration
“Food and/or Beverage” shall mean (1) articles used for food or drink for humans or other animals, (2) chewing gum, and/or (3) articles used for components of any such article, in accordance with the definition of food within K.S.A. 65-656.
“Mobile Food Vending” shall mean to conduct, hold, carry on, pursue or operate a business of vending, peddling, hawking and/or selling any food and/or beverage from a Mobile Food Unit.
“Mobile Food Vendor” shall mean any person, corporation, association, or other entity, however organized, that offers any food or beverage for sale from a Mobile Food Unit.
“Mobile Food Unit” or “Unit” shall mean any self-contained vehicle, trailer, cart, wagon, or other type of conveyance from which any food and/or beverage is offered for sale.
“Person” shall mean an individual, corporation, partnership, company, agency, institution, or any other entity.
5.12.020 – Vending without registering with the City.
It is unlawful for any person to conduct Mobile Food Vending within the corporate limits of the City of Derby, Kansas, without obtaining a certificate of registration in accordance with this Chapter.
5.12.030 – Registration application.
Any person desiring to register under this Chapter shall complete a registration application provided by the office of the City Clerk. The application shall require the following information:
A. Name and permanent address of the applicant and the business, showing proof of identification. If the applicant is not an individual, the names and permanent addresses of the officers of the corporation or the members of the partnership, firm, association or other entity, as the case may be;
B. The name of the owner and the type, make and registration number of the vehicle(s) to be used;
C. A statement as to whether or not the applicant has ever had a mobile vending registration or other similar license or registration revoked or suspended under the Derby Municipal Code or the ordinances of the City of Derby or any other city. Such a revocation or suspension may result in the City’s refusal to process the requested registration.
D. A statement that the applicant understands and agrees that registration will not be used or represented in any way as an endorsement of the applicant by the City of Derby, Kansas or by any department, officer, or elected or appointed official of the City.
79 101315 Mobile Food Vending Registration
E. Proof of a valid driver’s license within the State of Kansas for operation of the class of vehicle identified in the application for the applicant and any agents or employees of the applicant who will be involved in driving the identified vehicle;
F. Proof that the applicant has secured commercial general liability insurance for the mobile vending operation to be maintained for the entire length of the registration, written by an insurance carrier licensed to do business in Kansas, with minimum limits of $500,000 combined, single limit for bodily and property damage, each occurrence and $1,000,000 in the general aggregate. Evidence of compliance with these insurance requirements shall be in the form of a certificate of insurance that shall be submitted with the application. Such insurance certificate shall not be cancellable without prior written notice to the City; and
G. Signatures of applicant, individually and/or by its members and officers, and any agents or employees of the applicant who will be involved in the applied-for mobile food vending certifying that all of the information provided in the application is true and correct.
5.12.040 – Fee. All applications for mobile food vending registration certificates shall be accompanied by a non-refundable registration fee as established by resolution of the governing body of the City.
5.12.050 – Certificate of registration.
If the facts stated in the application are satisfactory and the requirements of this Chapter are met, the City Clerk may issue a mobile food vending certificate of registration to the applicant. The issuance of a certificate of registration shall not constitute approval of the business or activity or otherwise prohibit enforcement of this Chapter or any other applicable laws, city code provisions, rules or regulations.
5.12.060 – Operating conditions. All mobile food vending registration certificates shall be subject to compliance with the following conditions:
1. Location. Mobile Food Vendors may vend on property within the City as permitted by the City’s then current Zoning Regulations subject to the following:
a. Mobile food vendors may not be located on property where the Unit or a line of customers would (1) hinder the flow of traffic on any street, (2) hinder the flow of bicycles within any bike lane or route, (3) hinder the flow of pedestrians along any sidewalks, (4) block or reduce to less than five feet in width any accessible route to persons with disabilities, (5) block, hinder, or obstruct the vehicular flow within any parking lot, or (6) block or obstruct access to any driveway or access point to any property;
80 101315 Mobile Food Vending Registration
b. No more than three (3) mobile food units may locate on any zoning lot at any given time except as part of a City Approved Event;
c. Mobile food vendors shall not locate on any City or public property without first applying for and securing a permit from the City in accordance with the provisions of Chapter 5.06 of the Derby Municipal Code;
d. Every Unit shall be stationary while vending; and
e. Whenever any vehicle is used for mobile food vending upon a street, alley, sidewalk or other public right-of-way within the City, the transaction shall occur on the right side of any such vehicle with the right wheels of the vehicle located next to the curb and the Unit shall not locate within two hundred (200) feet of any public street intersection.
2. Written Permission of Property Owner. All mobile food vendors operating on private property shall acquire and maintain the written permission of the property owner for the use of and location of the Unit on said property. Written permission of the property owner shall be kept in the Unit and produced upon request by the Chief of Police or designee or other public officer charged by the City Manager with enforcement of this Chapter.
3. Hours of Operation. Mobile food vendors are prohibited from offering for sale any food or beverage outside the hours of 6:00 a.m. to 11:00 p.m. Mobile food vendors are prohibited at all times from selling or offering for sale alcoholic beverages, cereal malt beverages, or tobacco products.
4. Lights. In accordance with the City Zoning Regulations, no flashing lights or attention attracting devices are permitted on or in association with the use of the Mobile Food Unit. No direct light from a Mobile Food Unit may be shined on adjacent property or cause a glare or distraction for vehicles, bicycles, or pedestrians.
5. Signs. Signage mounted on a Mobile Food Unit shall not exceed the dimensions of the Unit by more than one (1) foot in any direction. No sign on a Mobile Food Unit may be illuminated. A maximum of one (1) detached “A” frame sign may be permitted with a maximum area of eight (8) square feet and a maximum height of four (4) feet. “A” frame signs must be located within fifteen (15) feet of the associated Unit and may not interfere with vehicle access, pedestrian movement, or handicap-accessible routes to and around the Unit.
6. Trash and Site Cleanup. All Mobile Food Vendors shall ensure that a trash receptacle shall be provided with each Mobile Food Unit. Such receptacle must be attached to the Unit or located within fifteen (15) feet of the Unit and cannot interfere with vehicle access, pedestrian movement or handicap-accessible routes to and around the Unit. Immediately upon the cessation of vending, the Mobile Food
81 101315 Mobile Food Vending Registration
Vendor shall remove and properly dispose of all trash and litter accumulated at the vending site. 7. Licenses and Permits. All mobile food vendors shall acquire and maintain all required licenses and permits applicable to the use and operation of Mobile Food Units from all applicable jurisdictions. Evidence of such licenses and/or permits shall be kept in the Unit and produced upon request by the Chief of Police or designee or other public officer charged by the City Manager with enforcement of this Chapter.
5.12.070 – Certificate denial, revocation, and appeal.
A. If a certificate of registration is not issued, the City Clerk or designee shall indicate in writing the reason(s) for denial and inform the applicant of the applicant’s right to an appeal of the denial in accordance with the provisions of this Section.
B. A certificate of registration may be revoked if the applicant fails to provide true and correct information on the application, the applicant fails to continuously maintain insurance in accordance with requirements of this chapter, or upon a violation by the applicant or any involved agents or employees of any provision of this Chapter, City Code or any federal, state, or local law, rule or regulation applicable or related to the registered mobile food vending. Notice of such revocation shall be mailed by the City Clerk or designee to the applicant's address as shown on the registration application form, or to the applicant's last known address, indicating in writing the reason(s) for revocation and informing the applicant of the applicant’s right to an appeal of the revocation in the same manner as a denied application; however, any appeal of a certificate revocation shall not suspend the revocation during the pendency of the appeal.
C. Upon the City's denial of an application for or revocation of a mobile food vending certificate of registration, the applicant shall have the right to appeal such action within fourteen (14) days of the denial or revocation being mailed to the applicant's address as shown on the registration application form, or to the applicant's last known address. Such an appeal must be in the form of a written request, filed with the City Clerk, setting forth the grounds for the appeal. Upon receipt of such a written request, the City Clerk shall schedule the appeal hearing to take place during the next ten (10) days, before the City Manager. Notice of the appeal hearing shall be given to the appellant in the same manner as provided for in the mailing of the notice of certificate denial or revocation. The decision of the City Manager on the appeal shall be final and binding on all parties.
5.12.080 - Term and transferability.
Certificates of registration issued under this Chapter are available for periods of one week, one month, or six months. Such certificates may not be transferred.
5.12.090 - Parking to dispense products in public rights-of-way.
It is unlawful for the operator of any mobile food unit to stop, stand or park such vehicle in any street, alley, or sidewalk or other public right-of-way for the purpose of mobile food vending, so as to obstruct the free flow of vehicular traffic or within any zoning district of the
82 101315 Mobile Food Vending Registration
City of Derby which does not specifically permit mobile food vending to occur; except that an operator may temporarily stop, stand or park such vehicle with its right wheels next to the curb for a period of time not to exceed five minutes at any one location, other than upon or along an arterial or collector street, within any zoning district in the City of Derby for the purpose of mobile food vending.
5.12.100 - Sound devices.
The production of amplified music or chimes from a mobile food unit is allowed between the hours of 10:00 AM and 8:30 PM provided that the sound from the amplified music or chimes is inaudible at any distance greater than three hundred (300) feet from the vehicle.
5.12.110 - Exemption.
The provisions of this Chapter shall not apply to the following activities: The sale of farm or garden products or fruits grown by the seller or his or her employer; Vendors selling as part of a City Approved Event or recognized Farmers Market; and Individuals providing catering services to a private event and not open for the sale of food and/or beverage to the general public.
5.12.120 - Posting.
Any person registered under this Chapter must keep their certificate of registration posted in a conspicuous place inside the vehicle used for mobile food vending. Such license must be current and may be used only by the registered person.
5.12.130 - Penalty for violation.
Any person operating in violation of this Chapter shall be charged with an Unclassified Public Offense in accordance with Chapter 9.04 of the Derby Municipal Code and may be requested by the Chief of Police or designee or other public officer charged by the City Manager with enforcement of this Chapter to leave the premises on which they are conducting business. The fine for a violation of this Chapter shall be not more than five hundred dollars ($500.00).
5.12.140 – 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 2. All other ordinances or parts of other ordinances in conflict herewith are repealed. However, any section of an existing ordinance not in conflict herewith is not repealed and remains in full force and effect.
83 101315 Mobile Food Vending Registration
Section 3. This Ordinance shall take effect and be in force from and after publication in the official city newspaper.
ADOPTED BY THE GOVERNING BODY this ____ day of ______, 2015.
Randy White, Mayor Seal Attest:
Karen Friend, City Clerk
Approved as to form:
Jacqueline R. Butler, City Attorney
84 City Council Meeting 8. E. Meeting Date: 10/13/2015 Submitted By: Kathy Sexton, City Manager Agenda Category: New Business
Subject: Proposal to Reduce Development Fees in West End and Buckner Business District
Background: On September 8, the City Council approved a priority list of 11 items, which included goals to "Remove barriers to promote infill development" and "Re-invent the K-15 corridor." To promote commercial redevelopment in the West End and Buckner Business District, staff have been working on a proposal to waive certain fees and reduce by 50% the cost of building permits in these two areas of the city where the Council has previously indicated a desire to promote redevelopment and enhance the business climate. A map of the affected area is attached with updates to the Fee Resolution in red to implement the following: Although not a part of this recommendation on development fees, Section 2 of the resolution includes adjustment to the fees for mobile food vending to adjust to the changing marketplace for food trucks (see previous agenda item for more details). Section 5 of the resolution proposes a 50% reduction in all building permits for properties located in the Buckner Business District and West End. Such policy should help reduce the upfront costs of construction and remodeling. Section 5 also proposes that demolition permit fees be waived for any demolitions occurring in the Buckner Business District or West End. Although the $50 fee is minimal, such fee waiver shows property owners the City's desire to encourage cleaning up old structures to make land ready to build on or more likely to sell. A demolition permit would continue to be required. Section 5 also proposes waiver of the $50 permit fee for a permanent sign in the Buckner Business District and West End. The West End Study concluded that signage clutter is a concern along K15, making this fee waiver a first step in encouraging businesses to improve their signage. Section 9 includes waiver of the fee for filing a plat, which is usually a minimum of $500, in the Buckner Business District and West End. Section 9 also includes waiver of fees for lot splits ($250), vacations of alleys or street right-of-way ($250), and site plan reviews ($500) in the Buckner Business District and West End. 85 Procedures for obtaining City approval for each activity remains the same; only the fees would be waived.
Financial/Sustainability Considerations: The purpose of all development fees is to offset the City's cost of processing the transactions and ensure that "development pays for itself" rather than relying on the general taxes paid by all city property owners to cover such costs. In this case of reducing or waiving fees, the City would be making a decision to encourage redevelopment in two targeted commercial neighborhoods by forgoing fee revenue. Any estimate of the amount of lost revenue would have to consider not only the volume of development activity but also how much of that activity would not have happened but for this incentive. Also, redevelopment enhances the City's assessed valuation, making for a potentially stronger tax base in the future. Waiving City fees is generally appreciated by small businesses that otherwise may not qualify for formal incentive programs. Additional financial incentives for redevelopment in these targeted areas could be considered in the future. Any proposal to assist with upfront grants or reduced property taxes later would require more research and consideration during the budget process as to how to budget for the new program.
Recommend a Motion to: Adopt the fee resolution as proposed.
Attachments Fee Resolution
86
Resolution No. -2015
A RESOLUTION AMENDING RESOLUTION NO. 58-2014 OF THE CITY OF DERBY, KANSAS; ESTABLISHING FEES, CHARGES AND TAXES AUTHORIZED PURSUANT TO CITY ORDINANCE FOR SERVICES RELATED TO LAND USE APPLICATIONS; BUSINESS AND CONTRACTOR LICENSING AND BUILDING INSPECTION; ADMINISTRATIVE SERVICES; OPERATION OF THE MUNICIPAL COURT; AND OTHER SERVICES RENDERED BY OR THROUGH CITY FORCES; AND REPEALING ORIGINAL RESOLUTION NO. 58-2014.
WHEREAS, the Governing Body of the City of Derby, Kansas (the “City”) is authorized to establish by resolution various fees, charges and taxes to be paid in connection with requirements imposed or services provided pursuant to City ordinance;
WHEREAS, the Governing Body has heretofore adopted its resolution no. 58-2014 establishing such fees, charges and taxes, has from time to time amended specific provisions of the same, and now desires to repeal said resolution no. 58-2014 and all amendments thereto and to substitute therefore the fees, charges, and taxes for those established therein;
NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF DERBY:
Section 1. Fees established. As authorized by City ordinance, the following fees and charges are hereby established for the various requirements and services provided for in or authorized by the Derby Municipal Code and other ordinances of the City, as the same may from time to time be amended.
Section 2. Businesses.
Business registration Initial registration $20/year Renewal registration $20/year Late renewal (after January 31) $30/year
Insufficient Funds/Returned Check $40 each Re-Issuance of Adult Cabaret Entertainer License Upon Change of Business Name1 $20/adult cabaret entertainer Temporary Use Permit $25 each Pawnbroker/Precious Metal Dealer $100 application plus $25 license Mobile Food vending license $25/year One week $25/week One month $50/month Six months $200/six months
1 Fee for initial issuance and renewal of adult cabaret entertainer license is established in section 5.32.070 of City Code. 1
87
Taxi license $50/year -- first taxi $25/year -- second or more taxi Solid waste collection license- Non-residential only $100 + $100 per vehicle Peddler/solicitor license Fee per applicant: $50/day $200/month $600/6 months $750/year Oil and gas wells Application $250 (nonrefundable) Permit $100 Inspection $120 False alarm fee 3rd false alarm per calendar year $25 4th false alarm per calendar year $50 5th and subsequent false alarm per calendar year $75/each Appeal fee $10 Late fee $10/month
Funeral Escort Fee $50 per escort
Section 3. Cereal malt beverage and alcoholic liquor licensing.
Cereal malt beverage (inclusive of state stamp fee of $25) Limited retail Application fee $25 License $75/year General retail Application fee $25 License $225/year Change of licensed premises $50 Special Event Permit $50
Alcoholic liquor Application (all classes) $25 License Drinking establishment $500/biennially Class A club $500/biennially Class B club $500/biennially Caterer $500/biennially Sale of alcoholic liquor in original package $600/biennially Temporary permit $25/day
Note: No fee charged for extension of premises for liquor and cereal malt beverage sales.
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Section 4. Building trade licenses and certificates.
Contractor licenses Class A $300 biennially Class B $300 biennially Class C $225 biennially Class D $70 biennially Concrete Flatwork $70 biennially Roofing Contractor $70 biennially Siding Contractor $70 biennially Electrical $160 biennially Mechanical $160 biennially Plumbing $160 biennially Gas fitter $60 biennially Drain layer $60 biennially Lawn sprinkler $60 biennially Water system $60 biennially Swimming pool $60 biennially Water Well Driller $60 biennially Fire Alarm Contractor $60 biennially Fire Sprinkler Contractor $60 biennially
Certificates of qualification Master $ 40 biennially Journeyman $ 40 biennially Gas fitter $ 40 biennially Drain layer $ 40 biennially Lawn sprinkler $ 40 biennially Water systems $ 40 biennially Swimming pool $ 40 biennially
Section 5. Building trade and sign permits
Building Plan review 65% of applicable building permit fee Residential Building permit (based on valuation of work; includes new residential, residential remodel, residential additions, roofing, electrical, mechanical, plumbing, HVAC, swimming pools, concrete or masonry walls and accessory structures 120 square feet or greater). Permit issuance – Non Refundable $25 $1-500 $16.50 $501-2,000 $16.50 + $2.20 for each additional $100 or fraction thereof over $500 $2,001-25,000 $49.50 + $9.90 for each additional $1,000 or fraction thereof over $2,000
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$25,001-50,000 $277.20 + $7.15 for each additional $1,000 for fraction thereof over $25,000 $50,001-100,000 $455.95 + $4.95 for each additional $1,000 or fraction thereof over $50,000 $100,001-500,000 $703.45 + $3.85 for each additional $1,000 or fraction thereof over $100,000 $500,001-1,000,000 $2,243.45 + $3.30 for each additional $1,000 or fraction thereof over $500,000 $1,000,001 or greater $3,893.45 + $2.20 for each additional $1,000 or fraction thereof over $1,000,000
*Commercial Building permit (based on valuation of work; includes new commercial buildings, commercial remodels, commercial additions, electrical, mechanical, plumbing, HVAC, roofing.) Permit issuance – Non Refundable $25 $1-500 $19.50 $501-2,000 $19.50 + $2.60 for each additional $100 or fraction thereof over $500 $2,001-25,000 $58.50 + $11.70 for each additional $1,000 or fraction thereof over $2,000 $25,001-50,000 $327.60 + $8.45 for each additional $1,000 for fraction thereof over $25,000 $50,001-100,000 $538.85 + $5.85 for each additional $1,000 or fraction thereof over $50,000 $100,001-500,000 $831.35 + $4.55 for each additional $1,000 or fraction thereof over $100,000 $500,001-1,000,000 $2,651.35 + $3.90 for each additional $1,000 or fraction thereof over $500,000 $1,000,001 or greater $4601.35 + $2.60 for each additional $1,000 or fraction thereof over $1,000,000 *Both residential and commercial building permits are reduced 50% for properties located in the Buckner Business District and the West End (see attached map).
Fire Sprinkler System & Alarm Plan Review Permit Issuance – Non-Refundable $25 Plus: 1 – 19 dDevices or heads $50 4
90
20 – 100 dDevices or heads $125 101 – 200 dDevices or heads $175 201 – 300 dDevices or heads $225 301 – 400 dDevices or heads $275 401 – 500 dDevices or heads $325 501 – 700 dDevices or heads $375 701 – 900 dDevices or heads $425 901 – 1,100 dDevices or heads $475 Greater than 1,100 dDevices or heads $475* *(Plus $.50 per device or head greater than 1,100) After-hours Building Inspections $60 Re-inspection $30 Investigation Double the applicable permit fee Right-of-Way Permit $75 Repair/replacement of street improvements Actual cost + overhead Erosion remediation (additional permit fee) Actual cost + overhead Water service connection permit ¾” Meter Set $ 1,075 1” Meter Set $ 1,225 1 ½” Meter Set $ 3,200 2” Meter Set $ 3,400 Sanitary sewer connection permit (includes connection to pre-Built Tee and Riser) "R-1," "R-2," "R-3," and "R-4" residential districts Single family $1,000 Single family attached, two family & multifamily $1,000/unit Manufactured/mobile home $1,000/unit "I-1" institutional district $2,500 per connection "B-1" office district $2,500 per connection "B-2" neighborhood business district $2,500 per connection "B-3" general business district and "B-5" restricted business district $2,500 per connection “B-4" central shopping district $2,500 per connection "M-1" industrial district $2,500 per connection Plus Tap fee (if required) $500 ( any district) Grease Interceptor Annual Inspection $100 Demolition permit $50 *No permit fee shall apply to demolitions in the Buckner Business District or West End. Lawn sprinkler system permit $25 Driveway approach permit $25 Accessory structure permit of 119 sq. ft. or less (if no building permit required) $25 Fence permit $25 Occupancy permit $25
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Signs: Permanent sign $50 *No permit fees shall apply to permanent signs in the Buckner Business District or West End. Portable sign Single event (less than 15 days) $25 Release (return) of confiscated sign $ 5 per sign due to sign ordinance violation) Water Heater Replacement $25 Electric meter reset fee $25 Furnace/Air Conditioner Replacement: Residential $25 Commercial $50 Water Well Permit $25
Section 6. Retrieval, inspection, and copying of public records.
General Retrieval and inspection $25/hour -- staff time Copying $0.25/page Accident and fire reports $10 each
Section 7. Impoundment, storage and redemption of vehicles.
The following charges apply to vehicles impounded by or on behalf of any City agency, or stored in the City impound facility:
Impoundment and Towing Actual cost to the City Storage $5/day (after day of impoundment) Notification of impoundment and other administrative requirements $25
*Such charges shall be paid in full prior to redemption of the vehicle to which they apply by the owner or another authorized person. If such vehicle is not redeemed, they shall be paid out of the proceeds of sale of such vehicle as authorized by law.
Section 8. Pet licensing, impoundment, redemption and adoption.
Dogs and cats License Neutered or spayed $10/year Others $15/year Impoundment and redemption $25
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Section 9. Land use, development and engineering.
Plats Preliminary plat R-1 & R-2 districts $500 plus $10/lot B-4, MH-1, M-1, B-2A and other properties in the West End No fee All other districts $500 plus $10/acre Final plat No fee Final plat only: Residential $500 plus $10/lot Non-Residential $500 plus $10/acre Revised Preliminary or Final Plat $250 Recording of documents with Register of Deeds $50 New & revised petitions $150/petition *Lot split $250 *Vacation $250 Platting exemption $100 *Site plan review $500 *No fees shall apply to lot splits, vacations or site plan review in the Buckner Business District or West End. Variance $150 Special use permit $350 Conditional use permit $350 Appeal $150 Zone change $350 PUD (Planned Unit Development) $750 Engineering Plan review 3% of construction cost Inspection 4% of construction cost Design 8% of construction cost Administration 5% of total project cost
Section 10. Municipal court and prosecution.
Court costs (per case) are applicable to all citations and complaints not specifically exempted, unless waived by city prosecutor or remitted by municipal court:
Base cost -- Parking tickets, other than handicapped parking, if not paid prior to 1st appearance $10 All other cases $45.50 State-mandated fees Municipal judges’ training $0.50 Officers’ training $20
Other fees (per case, as applicable) Officers’ training (City fee) $6 7
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Technology fee $3 Warrant fee $50 Mailing fee $5 each Witness fee $2.50 day or any part of a day plus the current mileage rate applied by the Internal Revenue Service for actual driving distance in excess of 10 miles Pre-sentence evaluation $50 Indigent defense $150 Probation monitoring $75 City prosecutor’s diversion program Application $50 Monitoring $75 Termination for unsatisfactory performance $50 Expungement fee $75 Discovery fees Paper $15 Video/DVD $25 Photo/Audio $15 Booking Fees $10 Fingerprinting $10 Probation Extension $25
Section 11. Nuisance Abatement Fees
Nuisance Abatement – Actual cost to the City plus: Administrative fee per abatement $75 Administrative fee for multiple abatements per property per calendar year: 2nd Abatement $100 3rd Abatement $125 4th and Subsequent Abatements $150
Section 12. Park and Facility Fees
Fees for rental of facilities at High Park and ball fields at Garrett Park, High Park and Tanglewood ballpark are based upon the following categories: Category 1 includes civic organizations, churches and 501 ( c ) ( 3 ) organizations located within the Derby School District. Category 2 includes businesses located and individuals residing within Derby School District. Section Category 3 includes organizations, churches, businesses, and individuals located or residing outside of the Derby School District.
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Rental Fees Category 1 Category 2 Category 3 Full Half Full Half Full Half Day Day Day Day Day Day Park Facility: High Park Enclosed Shelter 160 80 200 100 300 150 High Park Amphitheatre 160 80 200 100 300 150 High Park Open Shelter 120 60 160 80 240 120 High Park Gazebo 120 60 160 80 240 120
Ball field Rental: Rental per field 290 240 390 290 490 340 Rental each additional field 90 90 90 90 90 90
Section 12. Periodic Review of Fees and Charges. The equity and sufficiency of the fees and charges set forth herein shall be reviewed biannually by the City’s governing body; provided, that failure to conduct or delay in conducting such review shall not invalidate any such fee or charge.
Section 13. Repealer. Resolution no. 58-2014 of the City of Derby and all resolutions amending any provision thereof are hereby repealed.
Section 14. Effective date. This resolution shall take effect and be in force October 14, 2015.
ADOPTED BY THE GOVERNING BODY this ___ day of October, 2015.
CITY OF DERBY, KANSAS
______Randy White, Mayor Attest:
______Karen Friend, City Clerk
Approved as to form:
______Jacqueline R. Butler, City Attorney
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HilltopHilltopRR d d City Council Meeting 8. F. Meeting Date: 10/13/2015 Submitted By: Jean Epperson, Director of Finance Agenda Category: New Business
Subject: Purchasing Policy
Background: Since 1990, the City has followed internal purchasing procedures although they have not been presented and adopted by the City Council. The policy proposed for Council approval represents updates to current practices and internal procedures following staff review and input. The City Manager's authority to approve purchases up to $10,000 would remain the same. The $10,000 threshold has been in place since 1990. Directors have purchasing authority up to $5,000. A matrix summarizing the various authority levels and processes can be found on page 4. Procedures for competitive sealed bidding are included in the policy. Generally, competitive sealed bidding applies to purchases in excess of $5,000. Purchases not subject to competitive sealed bidding are: Purchases from a sole source supplier. Purchases made from another governmental entity or through a purchasing program such as General Services Administration (GSA). Contracts for professional services such as architectural, engineering, accounting or specialized consulting (page 9). A Request for Proposals (RFP) is typically used for professional services. Repairs to heavy equipment when the extent of the repair cannot be determined well enough to write bid specifications. Most utility bills. Emergency purchases. Since 2003, the City has used an internal Bid Board to ensure that bids are reviewed in a fair and equitable manner and to make purchasing recommendations to the City Manager.
Financial/Sustainability Considerations: Adoption of the proposed policy should continue the City's practice of securing the highest quality goods and services at the least cost and should add a level of transparency above the current practice.
97 Legal Considerations: The City Attorney reviewed the draft policy. The policy addresses ethical considerations and state level conflict of interest laws.
Recommend a Motion to: Approve the Purchasing Policy as presented.
Attachments Purchasing Policy
98 POLICY NAME: PURCHASING
ORIGIN: FINANCE
APPROVED: Draft Dated October, 2015
REVISION DATE(S): NONE
I. GENERAL INFORMATION
Purpose 1. Increase public confidence in the procedures followed in public purchasing. 2. Ensure fair and equitable treatment of all persons who encounter the City’s purchasing system. 3. Maximize the purchasing value of public monies for the City. 4. Provide safeguards for the maintenance of a purchasing system of quality and integrity. Definitions Change Order means a written order signed by the City Manager or designee, directing the contractor to make changes in the contract.
Contract means all types of City agreements for the purchase or disposal of supplies, services, or construction.
Purchasing means buying, purchasing, renting, leasing, or otherwise acquiring any supplies, services, or construction.
Reoccurring Purchase means a service or product purchased more than once by a department during the course of a budget year.
Services means the furnishing of labor, time, or effort by a contractor not involving the delivery of a specific end product other than reports, which are merely incidental to the required performance.
Sole Source means items or services available only from a single supplier.
Substantial Interest means any of the following: 1. If an individual or an individual’s spouse, either individually or collectively, has owned within the preceding 12 months a legal or equitable interest exceeding $5,000 or 5% of any business, whichever is less, the individual has a substantial interest in that business. 2. If an individual or an individual’s spouse, either individually or collectively, has received during the preceding calendar year compensation which is or will be
99 required to be included as taxable income on federal income tax returns of the individual and spouse in an aggregate amount of $2,000 from any business or combination of businesses, the individual has a substantial interest in that business or combination of businesses. 3. If an individual or an individual’s spouse, either individually or collectively, has received in the preceding 12 months, without reasonable and valuable consideration, goods or services having an aggregate value of $500 or more from a business or combination of businesses, the individual has a substantial interest in that business or combination of businesses. 4. If an individual or individual’s spouse holds the position of officer, director, associate, partner or proprietor of any business, other than an organization exempt from federal taxation of corporations under section 501(c)(3), (4), (6), (7), (8), (10) or (19) of chapter 26 of the United States Code, the individual has a substantial interest in that business irrespective of the amount of compensation received by the individual or individual’s spouse. 5. If an individual or an individual’s spouse received compensation which is a portion or percentage of each separate fee or commission paid to a business or combination of businesses, the individual has a substantial interest in any client or customer who pays fees or commissions to the business or combination of businesses from which fees or commissions the individual or the individual’s spouse, either individually or collectively, received an aggregate of $2,000 or more in the preceding calendar year. As used in this subsection, “client or customer” means a business or combination of businesses.
Supplies means all property, including but not limited to equipment, materials, printed materials, insurance, and leases of real property, excluding land or a permanent interest in land.
Vendor means a seller of supplies and/or services, and includes any person representing the vendor.
II. PURCHASING AUTHORITY
Governing Body 1. Adopt the annual operating budget to determine levels of expenditure by fund, department, and program. 2. Adopt a policy for the purchasing of all goods and services. 3. Review, adopt, and approve purchases over $10,000.
City Manager 1. Approve all purchases between $5,001 and $10,000. 2. Present purchasing recommendations to the Council for purchases over $10,000. 3. Implement and enforce provisions of this purchasing policy. 4. Exercise discretion and authority to override specific aspects of this policy when determined necessary to provide for the best interest of the City and inform the City Council of such decisions.
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100 Director of Finance 1. Monitor expenditures and advise the City Manager of monthly expenditure rates. 2. Ensure budgeted levels for each fund are not exceeded. 3. Oversee purchasing with the responsibilities to: a. Secure the highest quality goods and services at the least cost. b. Make recommendations to the City Manager for updating purchasing policy and procedures. c. Keep informed of current developments in the field of purchasing. d. Lead and direct bulk purchasing and cooperative purchasing when possible. e. Ensure those who default or are unreliable are disqualified from doing business with the City. f. Oversee competitive bid processes according to state statutes and local policy. g. Authorize appropriate city personnel to make purchases.
Department Directors 1. Inform personnel of purchasing requirements and ensure adherence. 2. Plan purchases under $5,000 to allow sufficient time to obtain proposals or quotations, determine best vendor, and issue orders or contracts with reasonable time for delivery. 3. Plan purchases over $5,000 to allow sufficient time for the item to be bid through competitive sealed bidding and for the City Manager to approve or in the case of items that need City Council approval, for the City Council to award the contract. 4. Provide accurate and complete information on items requested and timely preparation of requisitions. 5. Keep records of all bids and quotes received for 3 years.
Employees 1. Employees approved to make minor purchases (those under $250) are encouraged to make such purchases from established vendors within the City limits. 2. When making purchases, employees are to put their signature and division name on the invoice. All invoices need to be turned in to the employee’s respective department on a daily basis.
NOTE: All purchases are subject to procedures set forth in this document regardless of whether budgeted, emergency, or ad hoc in nature.
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101 Amount of Purchase Dept. Responsible for Type of Bid/Quote Required Other Requirement
Bid/Quote
Up to $500 Director and Division Head One quotation
$501 to $2,500 Director and Division Head Three written quotes
$2,501 to $5,000 Director and Division Head Three written quotes; Bid
Board Approval required if
low bid is not recommended
by the Director
$5,001 to $10,000 Director and Division Head Competitive bid process, Bid
Board Approval and City
Manager
$10,001 to $50,000 Director and Division Head Competitive bid process, Bid If low bid is recommended and
Board Approval and City funding is available in the
Council Approval adopted budget, the item will be
placed on Consent Agenda.
Otherwise, a separate agenda
item is required.
More than $50,001 Director and Division Head Competitive bid process, Bid A regular agenda item is
Board Approval and City required.
Council Approval
Change Orders (CO) Director, Division Heads If under $10,000, City Each CO must be in writing and
(applicable to all bids and and City Manager Manager approves. If over attached to the original contract.
contracts) $10,000, City Council
approves unless the project is
still within budget or it is in
the best interest of the City
for a CO to be implemented
prior to the next City Council
meeting.
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102 III. PROHIBITED PURCHASES
The following purchases cannot be made from City funds: 1. The purchase of any illegal substance or services. 2. Gambling-related purchases. 3. Purchases made for personal benefit with no value to the City.
IV. VENDOR SELECTION AND CONTRACT FORMATION
Vendor Participation Vendors interested in receiving requests for bids and proposals should sign up for the Notify Me service on the City’s website at www.derbyweb.com. In an effort to attract bids from local and knowledgeable vendors, the requesting department is encouraged to notify vendors known to have adequate expertise. The City’s notification software relies on email addresses to have been correctly input in the system by vendors. In the event of an error or change in personnel, a follow-up email by staff of the requesting department will ensure vendors are aware of the opportunity and will encourage competition, thereby lowering the cost of goods and services to the City.
Irresponsible Vendors Any vendor who fails to comply with the terms of an awarded bid, quote, or required specifications may be declared an irresponsible vendor upon recommendation of the Finance Director and approval of the City Manager. Vendors shall be notified in writing they have been declared an irresponsible vendor and that their bids will be deemed ineligible for award. Any vendor wishing to appeal this decision may request the City Manager present the appeal to the City Council for review and final determination.
Procedures for All Types of Sealed Bidding Invitation for Bids - An invitation to bid shall be posted on the city’s website, and vendors who have previously signed up for notification will receive an email alert of the posting. Invitations to bid shall be posted on the City’s website at least 7 days in advance of the due date for submission of bids. Items requiring publication in the newspaper shall also be published at least 7 days in advance of the due date for submission of bids. Notice shall be filed with the City Clerk and shall be open to public inspection. Bid Opening - Bids shall be opened by the City Clerk or designee in the presence of one or more witnesses. The amount of each bid and other relevant information shall be recorded along with the name of each bidder. Bid Evaluation - Bids shall be evaluated based on requirements set forth in the Invitation to Bid, which may include criteria to determine acceptability, such as inspection, testing, quality, and suitability for a particular purpose. No criteria may be used in bid evaluation that are not set forth in the Invitation to Bid. Award - The contract shall be awarded or rejected with reasonable promptness. Award shall be made to the lowest responsible bidder who submits a responsive bid which is most advantageous to the City.
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103 Purchases Not Subject to Competitive Sealed Bidding Purchases made under the following circumstances shall not require competitive sealed bidding: 1. When the purchase is of an emergency nature. 2. When the price or method of acquisition is prescribed by law. 3. When the supplier is the sole source of supply. 4. When the good or service is available from another governmental entity or purchasing program at a price deemed less than commercially available. General Services Administration (GSA) is an example of a purchasing program where taking advantage of the prices offered eliminates the need for additional competitive bidding. 5. Professional services. 6. In the case of repairs of heavy equipment or vehicles when the extent of repair cannot be determined or when specifications cannot practically be prepared. 7. Utility bills for water, sewer, electricity, and natural gas consumption are not subject to competitive bidding requirements.
Competitive Sealed Bidding over $10,000 (requires Council approval) Unless otherwise exempted pursuant to this policy or state law, contracts exceeding $10,000 shall be awarded by the City Council through competitive sealed bidding, unless it is determined by the City Manager that this method is not practical. (Refer to above paragraph, “Procedures for All Types of Sealed Bidding.”)
Process for Obtaining Council Approval 1. All purchases or service contracts totaling more than $10,000 but less than $50,000 in which the item is in the approved budget and the low bid is recommended shall be included in a consent agenda item for approval by the Governing Body. 2. If the purchase or service contract is greater than $10,000 but is not budgeted or the low bid is not recommended, a separate agenda item is required. 3. Items over $50,000 shall require a regular agenda item. 4. Contracts for construction of infrastructure for which the City Council has already approved the resolution and the low bid is recommended will be placed on the consent agenda if the city-at-large cost is $50,000 or less. Otherwise, a regular agenda item is required. 5. All purchases or service contracts shall be accompanied by a written recommendation from the City Manager for award.
Competitive Sealed Bidding $5,001 - $10,000 (requires City Manager approval) Purchases between $5,000 and $10,000 require competitive sealed bidding and Bid Board approval. The Bid Board will send all items to the City Manager for final approval. (Refer to “Procedures for All Types of Sealed Bidding.”)
Purchases between $500 and $5,000 (requires Director approval) Purchases between $500 and $5,000 require at least three documented price quotes that will be maintained on file by the department unless submitted to the Accounts Payable Clerk for scanning into Laserfiche with a copy of the invoice.
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104 Procedure for Obtaining Quotes The user department shall solicit quotes in person, by telephone, email, from websites, or in writing from at least three qualified vendors.
Purchases $500 or less Purchases under $500 shall not require competitive quotes if the prices are considered reasonable, although informal quotes are encouraged.
Non-competitive Selection A contract may be awarded for a supply, service, or construction item without competition under the following circumstances: 1. Price established by law. 2. Emergency purchases described in next section. 3. Sole source of supply. 4. Purchase from another governmental unit or purchasing program at a price deemed less than commercially available. 5. Professional services.
Reoccurring Purchases For services or products required more than once a year, the aggregate total of the purchases will be used to determine the purchasing procedures that should be followed. Repetitive purchases that add up to between $500 and $5,000 over the course of a year require at least three documented price quotes to be obtained at least once during the calendar year. Director approval is required. Example: The cost of an individual tire is $150, but based on records from prior years, approximately $2,500 is spent on tires, therefore the department would be required to contact at least three vendors and obtain a price quote good for a maximum of one year. To obtain the best possible price, the department needs to inform the vendor of approximately how many tires will be purchased during the calendar year. Repetitive purchases that add up to between $5,000 and $10,000 over the course of a year require at least three documented price quotes to be obtained at least once during the calendar year. City Manager approval is required. Example: The cost of salt is $50 per ton, but over the course of a year the total exceeds $5,000.
Emergency Purchases An emergency purchase is a purchase made when delaying the purchase would threaten (1) the functioning of city government, (2) the preservation or protection of property, machinery, or equipment, (3) the health or safety of any person or (4) to increase costs to the City. In case of an emergency as defined above, the City Manager may waive all provision for competitive bidding. Emergency needs shall be purchased by informal open market procedure or negotiated.
Emergency Purchase Procedures 1) During normal business hours, the department shall notify the City Manager of the emergency situation and request verbal approval to proceed with the emergency purchase. The department shall provide the following: 7
105 a. The nature of the emergency. b. The estimated cost of the services/goods required. c. The vendor recommended to receive the order. 2) In the event of an emergency during non-working hours, the highest authority personnel on hand to make a responsible decision may purchase directly any supplies whose immediate procurement is essential as described above. For expenditures of $5,000 or more, the department director or designee shall submit by close of business the next work day a written report to the City Manager explaining the circumstances of the emergency. 3) When expenditures are $10,000 or more, a report of the purchase and the circumstances necessitating the emergency action shall be presented to the City Council at its next available meeting.
Local Business Preference Minor purchases (under $250) shall be made from established vendors in the city limits when possible. No provision is made in this policy for dollar percentage or other types of preferential considerations for local vendors or contractors; however, it is the policy to solicit bids from local suppliers whenever competitive local sources exist and where no sacrifice or loss in price or quality would result. In the event of a tie bid between a local vendor and an out-of-town vendor, award will be made to the local vendor if all factors including price, quality, terms, method and cost of delivery are equal.
Property Acquisition The purchase of real property associated with an approved public improvement project is subject to approval as follows: 1. The City Council must approve the contract if the cost for acquisition exceeds $10,000. 2. The City Manager can approve the contract if the cost for acquisition is less than $10,000.
V. BID BOARD
Purpose 1. Ensure bids are reviewed in a fair and equitable manner. 2. Make recommendations for purchases to the City Manager and/or City Council that serve the best interest of the City.
Purchases Requiring Bid Board Review Purchases over $5,000 require competitive sealed bids and Bid Board recommendation. The Bid Board reviews purchases between $2,500 and $5,000 when the department is not recommending the low bid. The Board does not review bids for public improvements (streets, sewers, etc.) unless requested by the City Manager. (Refer to section IV for Procedures for All Types of Sealed Bidding and for Purchases not Subject to Competitive Sealed Bidding.)
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106 Bid Board Members 1. Finance Director (chairperson) 2. Director of Operations (vice chairperson) 3. Assistant to the City Manager 4. Budget Analyst 5. Police Department designee 6. Public Works designee 7. Fire & Rescue Department designee 8. City Clerk (non-voting)
Process for Sending an Item to the Bid Board Each department is responsible for preparing specifications for items to be bid and sending out their own requests for bids. Bid specifications are sent to the Budget Analyst for posting to the City’s website. Once bids are received and opened, the department requesting the bids will be responsible for preparing an analysis of the bids in a format that allows for comparison of price and specifications. This comparison will then be provided to the Bid Board, along with the original bid information.
Bid Opening Procedure All sealed bids are opened publicly in the Council Room, 611 N. Mulberry, on the date and at the time shown in the Notice of Invitation for Bids. The City Clerk presides over bid openings. Other representatives of the City may be in attendance. The City Clerk shall read the bid amount, delivery, and terms and conditions relating to the bid.
Bid Board Approval Process 1. Low responsive bid is the primary criteria for approvals. 2. The Bid Board meets on an as-needed basis in the Panther Room, provided that at least a quorum of three voting members is present. Staff are welcome to attend. 3. The Bid Board may accept or reject any or all bids and any part or parts of bids due to incomplete, conditional or obscure information. 4. The Bid Board Chairperson forwards the Board’s recommendations to the City Manager for final determination. Once the City Manager has approved, the City Clerk returns a signed copy to the requesting department, which is authorized to submit an agenda item or if below $10,000, purchase the item.
Types of Purchases Excluded from Bid Board 1. Professional Services. Competitive bids are unnecessary for contracts for professional services. Examples include architectural, engineering, specialized consulting, and accounting services. A Request for Proposals (RFP) is routinely used to solicit proposals and begin a process of selection based on qualifications, fit and value. 2. Legal Professional Services. Competitive bids are unnecessary for contracts for legal services. Engagement of outside attorneys must be approved by the City Manager. 9
107 VI. CHANGE ORDERS Change orders are issued to address changes in terms and conditions associated with unforeseen problems not addressed in the bid or contract document or changes/modifications recommended after a contract is awarded. 1. Change orders under $10,000 must be approved by the City Manager. 2. Change orders over $10,000 must be approved by the City Council, unless the project is still within budget or it is in the best interest of the City for a change order to be implemented prior to the next regularly scheduled meeting of the City Council. In such circumstances, the City Manager shall have the authority to authorize the change and shall notify the City Council of the action.
VII. ETHICAL STANDARDS
General Standards of Ethical Conduct General Ethical Standard for Employees: Any attempt to realize personal gain through City employment by conduct inconsistent with the proper discharge of an employee’s duties is a breach of public trust. Employees must comply with all conduct requirements as set forth in the Personnel Policy Manual.
General Ethical Standard for Non-Employees: Any effort to influence City employees to breach the standards set forth in this Chapter is also a breach of ethical standards.
Employee Conflict of Interest Pursuant to K.S.A 75-4304, no City employee in his or her capacity as such employee, shall make or participate in the making of a contract with any person or business by which he or she is employed or in which he or she has a substantial interest. A City officer or employee does not make or participate in the making of a contract if he or she abstains from any action in regard to the contract. Department directors should be notified of situations where a conflict of interest may exist prior to the bid request. The Director should consult with the City Attorney to address any concerns.
This section shall not apply to the following: 1. Contracts let after competitive bidding has been advertised by published notice. 2. Contracts for property or services for which the price or rate is fixed by law.
Employee Disclosure Requirements An employee who has or obtains any benefit from any City contract with a business in which the employee has a substantial financial interest shall report such benefit to the Finance Director. Any employee who knows or should have known of such benefit and fails to report such benefit to the Finance Director is in breach of ethical standards.
Gratuities and Kickbacks 1. Gratuities. No vendor shall offer or give any employee or former employee a gratuity or an offer of employment in connection with a purchasing decision. It shall be a breach of ethical standards for any employee or former employee to solicit or accept a gratuity or an offer of employment in connection with any City purchasing decision. 10
108 Gratuities shall not include pens, calendars, or other novelty items used for advertising purposes, or occasional meals. Employees are expected to comply with all requirements of the Personnel Policy Manual.
2. Kickbacks. It shall be a breach of ethical standards for any payment, gratuity, or offer of employment to be made by or on behalf of a subcontractor as an inducement for award of a subcontract or order.
Use of Confidential Information It shall be a breach of ethical standards for any employee or public official to knowingly use confidential information for actual or anticipated personal gain.
Remedies for Breach of Ethical Standards Remedies against Employees In accordance with the Personnel Policy, employees who violate the ethical guidelines will be subject to the following: 1. Oral or written warnings or reprimands. 2. Suspension with or without pay for specified periods of time. 3. Termination of employment.
Remedies against Non-Employees Violations of ethical guidelines by non-employees involved in purchasing transactions with the City may result in any of the following:
1. Written warnings. 2. Termination of transactions. 3. Disbarment or suspension from contracting with the City.
Recovery of Value Transferred or Received The City reserves the right to pursue recovery of the value of anything transferred or received in breach of the ethical standards laid out in this policy from both employees and non-employees.
Criminal Sanctions To the extent that a violation of the ethical standards of conduct set forth in this section also constitutes a violation of federal, state, or city law, it shall be punishable as provided therein. Such sanctions shall be in addition to the remedies set forth in this policy.
VIII. EQUAL OPPORTUNITY IN PUBLIC CONTRACTING
Equal Opportunity The City of Derby shall comply with all applicable state and federal laws, executive orders, and rules and regulations that govern equal employment opportunity and affirmative action in public contract, and shall only do business with contractors and vendors who also comply.
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109 Kansas Act Against Discrimination The State of Kansas requires that all contracts entered into with the state or any political subdivision of the state for construction, alteration or repair of any public building or public work or for acquisition of materials, equipment, supplies or services shall contain provisions by which the contractor agrees to observe provisions of the Kansas Acts Against Discrimination. The Kansas Acts Against Discrimination (K.S.A. 44-1030, et seq.) requires that those entering into contracts with governmental entities shall not discriminate against any person because of race, religion, color, sex, disability, national origin or ancestry. Vendors subject to these statutes are those: that employ four or more employees during the term of such contract; and whose contracts with the City of Derby cumulatively total more than $5,000 during the City’s fiscal year.
Failure to Comply Failure to comply with federal or state statutes and regulations governing equal opportunity and non-discrimination in public contracting shall be a material breach of contract. In addition, unless otherwise noted, failure to comply with state or federal provisions shall be a breach of the contract for which the city may suspend further performance under the contract or terminate the contract in whole or in part.
X. DISPOSAL OF PROPERTY
The City Manager may transfer, sell, exchange or destroy any surplus, obsolete, abandoned, or confiscated property with or without competitive bidding. The City Manager shall determine whether personal property is to be sold at auction or by negotiated sale or donated to another organization. Upon disposal, a written report shall be made detailing the date of sale, name and address of the purchaser, list of property sold and the sale price.
The sale of real property requires approval by the Governing Body.
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110 City Council Meeting 9. A. Meeting Date: 10/13/2015 Submitted By: Ted Austin, Director of Operations Agenda Category: Consent
Subject: Copier Replacement
Background: We have held off on replacing copiers for a couple of years and many units are requiring increased maintenance and experiencing more down time. We requested bids and received returns from five vendors. We received excellent pricing and will be replacing five units, all seven years old or more. Some trade-in value was given. Total cost is $22,274 from Konica Minolta Business Solutions.
Financial/Sustainability Considerations: These replacements are budgeted in the equipment replacement plan.
Legal Considerations: All purchasing policies were followed and the Bid Board approved the recommendation.
Recommend a Motion to: Purchase five copiers from Konica Minolta Business Solutions for $22,274.
Attachments Copier Bid Tab
111 Bid Tab - Copiers 2015
Vendor Larger Copier Bid Maint. Base Charge Price Per Page Overage Per Page Total 5 Yr. Cost Comment Trade In Business Systems - Konica-Minolta 55 ppm $5,390.00 $18.00 $0.0000 $0.0060 $6,470.00 Literature describes 45 ppm, but they will provide 55 $1,000.00 Galaxie - Sharp 56 ppm $6,545.00 $22.50 $0.0000 $0.0075 $7,895.00 $1,530.00 Ricoh 50 ppm $6,184.32 $0.00 $0.0080 $0.0080 $7,246.32 Not 55 ppm, Trade already off of large copier $1,300.00 Digital Office Systems - Konica Minolta 55 ppm $7,397.00 $0.00 $0.0067 $0.0067 $8,459.00 $0.00 360 Document Solutions - Kyocera 55 ppm $7,248.00 $0.00 $0.0059 $0.0059 $8,310.00 $0.00
Vendor Smaller Copier Bid Maint. Base Charge Price Per Page Overage Per Page Total 5 Yr. Cost Business Systems - Konica-Minolta 22 ppm $4,126.00 $20.00 $0.0000 $0.0080 $5,326.00 Low bid meeting spec, but want to opt for 28 ppm machine Galaxie - Sharp 36 ppm $5,585.00 $18.75 $0.0000 $0.0075 $6,710.00 Ricoh 25 ppm $4,573.16 $0.00 $0.0080 $0.0080 $5,458.16 Digital Office Systems - Konica Minolta 22 ppm $4,543.00 $0.00 $0.0067 $0.0067 $5,428.00 360 Document Solutions - Kyocera 35 ppm $5,772.00 $0.00 $0.0059 $0.0059 $6,657.00
Vendor Alternate Small Copier Maint. Base Charge Price Per Page Overage Per Page Total 5 Yr. Cost Comment Business Systems - Konica-Minolta 28 ppm $4,421.00 $15.00 $0.0000 $0.0060 $5,321.00 Alt. Small Unit Faster 28 vs. 22 Galaxie - Sharp 26 ppm $3,692.70 $18.75 $0.0000 $0.0075 $4,817.70 Alt. No Hole Punch Ricoh Digital Office Systems - Konica Minolta 360 Document Solutions - Kyocera 25 ppm $3,995.00 $0.00 $0.0100 $0.0100 $4,880.00 Alt. No Hole Punch
Total Purchase Price $22,274.00 Want to keep Pworks machine as spare (-200 from trade-in calculated in)
Budget $30,000.00
112 City Council Meeting 9. B. Meeting Date: 10/13/2015 Submitted By: Dan Squires, City Engineer Agenda Category: Consent
Subject: Set Public Hearing for Repair or Removal of Unsafe or Dangerous Structure
Background: On June 22, 2014, the Derby Fire & Rescue Department responded to a structure fire at 309 S. Buckner. The structure was 75% engulfed when firefighters arrived and was heavily damaged as a result of the fire. After the fire, the structure was inspected and determined to be unsafe and dangerous by the City's Building Official who serves as the Enforcing Officer for such matters as specified in state law. The City also engaged a structural engineer to evaluate the structure. The engineer's report concluded the remaining structure is unsafe. Kansas Statutes (K.S.A. 12-1750 et seq.) provide a process for cities to cause the repair or removal of structures determined to be unsafe or dangerous. Council action to establish a date and advertise a public hearing is necessary to initiate the process under K.S.A. 12-1750 for removal or repair of the structure by the City.
Financial/Sustainability Considerations: State statute provides a mechanism for assessing the costs of repair or removal of the structure to the property.
Legal Considerations: The City is authorized by Kansas law to find a structure unsafe or dangerous and to cause its repair or removal. (K.S.A. 12-1750 et seq.) State law requires the governing body to pass a resolution establishing a hearing date to allow the owner, the owner's agent, any lienholders of record, and any occupant of the structure to appear and show cause why the structure should not be condemned and ordered repaired or demolished.
Recommend a Motion to: Adopt a resolution fixing the time and place for a hearing concerning the condemnation and repair or demolition of a structure located within the corporate limits of the City.
113 Attachments Fire Damage Location Map Resolution to Set Hearing Engineer Report Enforcing Officer Determination
114
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t KaBuckneryST ST
a
W Baltimore AVE Baltimore
Fire Damaged Structure 309 S. Buckner St.
Water ST Sunnydell ST
Baltimore DR
K-15 HWY
Fire Damaged Structure Location115 Map
(Published in the Derby Informer on the 21st day of October, 2015 and on the 28th day of October, 2015)
RESOLUTION NO. _____
A RESOLUTION FIXING THE TIME AND PLACE FOR A HEARING CONCERNING THE CONDEMNATION AND REPAIR OR DEMOLITION OF A STRUCTURE LOCATED WITHIN THE CORPORATE LIMITS OF THE CITY OF DERBY, KANSAS.
WHEREAS, the provisions of K.S.A. 12-1750 et seq. empower the Governing Body of the City of Derby, Kansas to cause the repair or removal of, or to remove any structure located within the corporate limits of the City of Derby, Kansas which may have become unsafe or dangerous; and
WHEREAS, upon receipt by the Governing Body of the City of Derby, Kansas of a statement in writing that any structure is unsafe or dangerous, the provisions of K.S.A. 12-1752 prescribe the fixing of a time and place for hearing by Resolution of the Governing Body of the City of Derby, Kansas; and
WHEREAS, the Governing Body of the City of Derby, Kansas is in receipt of a statement in writing from Dale Wasinger, Enforcing Officer, that upon inspection, the structure located at 309 S. Buckner, Derby, Kansas, said property being legally described as Lots 1, 3 and 5, Buckner Avenue, City of Derby, Sedgwick County, Kansas, is found to be an unsafe and dangerous structure.
NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF DERBY, KANSAS:
Section 1. The Governing Body of the City of Derby, Kansas will hold a public hearing at 6:30 p.m. on the 8th day of December, 2015 at the Derby City Hall, 611 Mulberry Road, Derby, Kansas to determine whether the structure located at 309 S. Buckner Street, Derby, Kansas, said property being legally described as Lots 1, 3 and 5, Buckner Avenue, City of Derby, Sedgwick County, Kansas, is an unsafe or dangerous structure. Anyone with an interest in the structure, including but not limited to the owner, the owner's agent, any lienholders of record and any occupant of such structure, may appear, present evidence and show cause why said structure should not be condemned and ordered repaired or demolished.
Section 2. This resolution shall be published twice, a week apart, in the official city newspaper and a copy mailed, within three days after its first publication, by certified mail, restricted delivery in an envelope marked "deliver to addressee only", to the owner(s), any agents of the owner(s), any lienholder(s) and any occupant(s). At least thirty (30) days shall elapse between the last publication and the date set for the hearing.
116
Adopted by the City Council this _____ day of ______, 20__.
______Randy White, Mayor
SEAL
ATTEST:
______Karen Friend, City Clerk
2 117 5317 East Funston Wichita, Kansas 67218 D&B 316-265-0457 Engineering LLC [email protected] MEMORANDUM TO: City of Derby RE: 309 South Buckner Street 316-788-6632 Derby, KS ATTN: Dan Squires Site observations on September 15, 2015 of the building: The building is a wood framed single family residence supported on a crawlspace foundation. The structure has been heavily damaged by fire and is not safe. The roof system does not have plywood or OSB decking only spaced 1x4s with sawn wood shingles.
Except for the south gable end and the first rafter next to the south gable the entire roof and ceiling system has be damaged by the fire. In addition to the fire damage, several other issues contribute to the safety of the structure. The crawlspace is not accessible. The 2x6 floor joists spaced 16" on center are only 8.5" above the soil. 18" of clearance is required. The soil at the double 2x6 beam is about 7" clear. 12" clearance is required under the support beams. The joist span was 11'-0" on the east side of the beam and 7'-6" on the west side. The allowable span for a 2x6 Hem Fir #2 floor joist with 40 psf live load and 10 psf dead load is 9'-1". So the east side of the home does not have the required 40 psf live load capacity. The crawlspace is not vented.
The walls of the home are framed with wood studs. The wall is constructed with a single top plate. The stud locations are not located under the ceiling joists and roof rafters as required when only a single top plate is used. All of the wood studs at the north wall are damaged by fire. The small addition on the west side of the home may have been a porch that is not enclosed. The ceiling slopes from the high end at 7'-4" to 6'-0" at the low end. Most of the room has a ceiling height less than the 7'-0" minimum height required to be an occupied space. The exit door on the south side is only 6'-1.5" tall.
The 2x4 rafters at the addition are space 24" apart and span 7'-9". The allowable span with 20 psf roof live load and 10 psf dead load with the ceiling attached is 7'-3" for a Hem Fir #2 2x4. The roof system does not meet minimum insulation and ventilation requirements.
The CMU crawlspace walls of the main structure has cracks and loss of mortar at the joints. There is not the minimum 6" clearance between the finish grade and the bottom of the wood framing on the east side. This has rotted the bottom piece of siding and the wood sill plate. Other non-fire issues observed included peeling paint on exterior surfaces, missing trim boards and siding damage. There issues do not provide a weather-tight building envelope and can lead to wood deterioration and rot.
PROJECT NO. 309 South Buckner Street DATE: September 21, 2015 COPIES TO BY: Paul D. Sullivan, P.E.
118 119 City Council Meeting 9. C. Meeting Date: 10/13/2015 Submitted For: Cody Bird, City Planner Submitted By: Rebecca Likiardopoulos, Management Assistant Agenda Category: Consent
Subject: Vacate a Portion of the Platted Access Control and Front Yard Setback on Lot 2, Block A, Brookwood 3rd Addition
Background: The owners of the residence at 1015 E. Madison Ave. have requested vacation of platted access control to Madison Ave. along with 5 ft. of the platted front yard setback. The property is developed as a single-family residence. The owner desires to construct a circular driveway to better facilitate access to the site. Vehicles leaving the site must back out onto Madison Ave., a four-lane arterial street. The driveway also crosses a hike and bike path with a high volume of pedestrian traffic. A circular driveway, if approved, would allow the owner to enter and exit the public street driving forward without the need to back up across the hike and bike path or back into traffic on Madison Ave. The owner has requested that the City vacate 20 feet of platted access control along Madison Ave. to allow a second driveway opening. The owner has also requested that the platted front yard setback be reduced from 30 ft. to 25 ft. to meet the 850 sq. ft. limit for paved area within a required front yard. Other property rights including utility easements within the setback will remain and not be damaged as a result of the vacation. The applicant has submitted a concurrent request for a variance to exceed the limitation on paved area within a front yard setback. The variance request is scheduled to be heard by the Board of Zoning Appeals (BZA) at its October 8, 2015 meeting. City staff will advise the Council of the BZA action at the Council meeting. Vacation requests require review by the Planning Commission prior to Council consideration. The Planning Commission conducted the required public hearing on September 17, 2015. One individual spoke in favor of the proposed vacation, stating that the proposed circular driveway would improve safety for pedestrians and bicyclists using the hike and bike path. Following the close of the public hearing, the Planning Commission unanimously adopted a resolution recommending approval of the vacation. The 120 unanimously adopted a resolution recommending approval of the vacation. The adopted resolution is attached. City staff has not received any objections to the proposed vacation.
Legal Considerations: The petition for vacation has been processed pursuant to K.S.A. 12-504 et seq. Notice of the proposed vacation was advertised in accordance with state law. No written objections to the proposed vacation have been received. In accordance with state statute, the requested vacation should be granted if the Council finds that: Notice has been given as required by law; No private rights will be injured or endangered; and The public will suffer no loss or inconvenience.
Recommend a Motion to: Adopt an ordinance vacating a portion of the platted access control and front yard setback on Lot 2, Block A, Brookwood 3rd Addition, and instruct staff to record the vacation ordinance with the Sedgwick County Register of Deeds.
Attachments Location and Site Map Vacation Ordinance PC Minutes PC Resolution
121 Location Map: 1015 E Madison Ave.
122 Proposed Vacation Area
Proposed 20 ft. Opening
Existing 30 ft. Platted Building Setback
Proposed 25 ft. Building Setback
123 Passed: Published:
ORDINANCE NO. ______
AN ORDINANCE VACATING A PORTION OF PLATTED COMPLETE ACCESS CONTROL ALONG MADISON AVENUE ABUTTING LOT 2, BLOCK A, BROOKWOOD 3RD ADDITION, DERBY, SEDGWICK COUNTY, KANSAS, AND VACATING A PORTION OF PLATTED FRONT YARD SETBACK ON LOT 2, BLOCK A, BROOKWOOD 3RD ADDITION, DERBY, SEDGWICK COUNTY, KANSAS, AND RESERVING TO THE CITY AND THE OWNERS OF ANY LESSER PROPERTY RIGHTS FOR PUBLIC UTILITIES, RIGHTS-OF-WAYS, AND EASEMENTS FOR PUBLIC SERVICE FACILITIES ORIGINALLY HELD AND CURRENTLY IN EXISTENCE WITHIN THE VACATED PORTION OF THE PLATTED FRONT YARD SETBACK.
WHEREAS, Michael H. and Mary E. Thornton (“Applicants”), owners of property abutting Madison Avenue for which complete access control is platted, have requested vacation of the following described portion of said platted complete access control:
The east 20 feet of the west 40.5 feet of platted complete access control located along the north line of Lot 2, Block A, Brookwood 3rd Addition, Derby, Sedgwick County, Kansas.
WHEREAS, Applicants, owners of property encumbered by a platted 30-foot front yard setback, have requested vacation of the following described portion of said platted front yard setback:
The south 5 feet of the north 30 feet of Lot 2, Block A, Brookwood 3rd Addition, Derby, Sedgwick County, Kansas.
WHEREAS, such request was transmitted to affected property owners and agencies with an interest in said platted complete access control and platted setback for comment, and it has been determined to be in the best interests of all interested parties; and
WHEREAS, the Planning Commission of the City conducted a public hearing on September 17, 2015 to determine the advisability of the proposed vacation and no written objection pursuant to K.S.A. 12-505 to the proposed vacation was received by the Planning Commission at the time of or before the hearing; and
WHEREAS, the Planning Commission determined that due and legal notice of the petition to vacate was given as required by law, that no private rights will be injured or endangered by such vacation, that the public will suffer no loss or inconvenience thereby, and that in justice to the petitioner, the prayer of the petitioner ought to be granted; and
124 WHEREAS, the Governing Body adopts the findings of the Planning Commission and finds that no private rights will be injured by such proposed vacation of the above-described portion of platted complete access control and above-described portion of platted front yard setback, and that the same is in the best interests of the City;
NOW THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF DERBY, KANSAS:
Section 1. The portion of platted complete access control more particularly described as:
The east 20 feet of the west 40.5 feet of platted complete access control located along the north line of Lot 2, Block A, Brookwood 3rd Addition, Derby, Sedgwick County, Kansas,
is hereby ordered to be vacated subject to the reservation(s) and condition(s) stated in Section 3 herein.
Section 2. The portion of platted front yard setback more particularly described as:
The south 5 feet of the north 30 feet of Lot 2, Block A, Brookwood 3rd Addition, Derby, Sedgwick County, Kansas, is hereby ordered to be vacated subject to the reservation(s) and condition(s) stated in Section 3 herein.
Section 3. The findings in Sections 1 and 2 above and the vacation of the above- described portion of platted complete access control and platted front yard setback is approved subject to the following reservation(s) and condition(s): a) Any lesser property rights, rights-of-ways, and easements for public service facilities originally held and currently in existence within the above-described portion of platted front yard setback are hereby reserved to the city and the owners of any lesser property rights for public utilities. b) Approval by the Board of Zoning Appeals for a concurrent request for a variance to exceed the maximum amount of paved area in a required front yard.
Section 4. 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 5. 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. Section 6. The City Clerk shall certify a copy of this Ordinance to the Register of Deeds of Sedgwick County, Kansas for filing, all in accordance with K.S.A. 12-504, et seq., and amendments thereto.
2 125 ADOPTED BY THE GOVERNING BODY this 13th day of October, 2015.
Randy White, Mayor
Attest:
Karen Friend, City Clerk
Approved as to form:
Jacqueline R. Butler, City Attorney
3 126 9. RECOMMENDATION OF PROFESSIONAL STAFF:
Adopted the written findings contained in the staff report. No questions or comments.
Moved by Van Willis, seconded by Kathy Wills, to approve the request to change the zoning district classification from R-1 "Single-family Residential District" to I-1 "Institutional District" based on the facts stated in the staff report and forward a recommendation of approval to the City Council. Vote: 10 - 0
5. B. Vacation Request: Vacate a Portion of Platted Access Control and Platted Front Setback
General Location: 1015 E. Madison Avenue
Applicant/Agent: Applicant: Michael and Mary Thornton
Reason for Request: Construct new circular driveway entrance
Background Information: The owners of the residence at 1015 E. Madison have requested vacation of 20 ft. of platted access control to Madison Ave. along with 5 ft. of platted front yard setback on Lot 2, Block A, Brookwood 3rd Addition. The property is developed as a single-family residence. The owner desires to construct a circular driveway to better facilitate vehicular access to the site. The owner has a trailer which is backed into the carport on the site. Backing the trailer onto the existing driveway requires the owner to temporarily block traffic on Madison Ave. A circular driveway, if approved, would provide adequate space for a trailer to be maneuvered into position to be backed into the carport without obstructing the public street. Construction of the circular drive also allows vehicles to exit the residence without backing onto Madison Ave. In order to construct the circular driveway, 20 ft. of platted access control along Madison Ave. must be vacated to allow the new opening. The applicant has also requested vacation of a portion of the front yard setback in order to meet the regulation which limits the paved area in a required front yard to 850 sq. ft. The required front yard is defined as the area between the property line and the platted building setback line. A 5 ft. reduction of the required front yard would allow more of the driveway 127 area to be located outside of the required yard. The applicant has also submitted a request for a variance to exceed the limitation on paved area in a front yard. The variance request will be considered by the Board of Zoning Appeals.
Staff Comments: Individual lot access to arterial streets is not typically desirable, and therefore, the City plats access control limiting the number and frequency of access points along arterial streets. In limited instances, vacating access control to allow additional access points may be advisable when the new access results in improved safety. Allowing an additional opening to Madison Ave. at this location would provide a safety improvement by allowing the property owner to access their carport without backing into the existing driveway from the public street. Approval of the concurrent variance request to exceed the maximum amount of paving area in a front yard should be a condition of approval of the requested vacation. Vacation requests require a public hearing: Notice of the public hearing was provided in accordance with State law. The notice was published in the Derby Informer on August 26, 2015 and mailed to affected property owners and utilities on August 28, 2015. A sign advertising the public hearing was also placed on site 14 days in advance of the public hearing. Westar Energy responded to the notice with a letter stating that Westar does not oppose the vacation. The letter also indicates that there are street lights along Madison Ave. The applicant is advised that any relocation or removal of any Westar equipment is at the applicant's expense. At the conclusion of the public hearing for a vacation request, the Planning Commission should adopt a resolution stating the recommendation, with or without conditions, and announce the date upon which the City Council will consider the requested vacation. A proposed resolution is attached.
Recommend a Motion to: Adopt a resolution recommending vacation of 20 feet of platted complete access control and 5 feet of platted front yard setback and instruct staff to forward the resolution to the City Council for consideration.
PUBLIC HEARING OPENED
Chairman Adams opened the public hearing and determined that a quorum was present.
Cody Bird, City Planner announced that proper notice had been given in accordance with State law.
128 Adams asked commissioners to report any ex parte communications. No ex parte communications were reported.
Bird presented the staff report.
Commissioner Willis asked if the Planning Commission's decision to approve the request would set a precedence for future approval of similar situations. Bird replied that there is always a chance that someone could attempt to make a case based on precedence. Vacation cases will always be presented to the Planning Commission, reviewing the same criteria, and would be forwarded to the City Council for final approval. Commissioner Hicks asked if the bike path mentioned in the introduction referred to the sidewalk. Bird said yes. He explained that a sidewalk is typically 4 to 5 feet and the hike and bike paths are designed to be 8 to 10 feet to accommodate both pedestrians and bicyclists. Commissioner Langworthy asked if the drive has already been constructed. Bird replied that a portion of the project has been constructed. The contractor for the property owner had applied for a driveway approach permit and the application was granted by City staff. Subsequent to that, a City inspector questioned the access to the site, and upon further review, the property owners were asked to stop all work until the City could initiate the proper review process. The property owner has also requested a variance to exceed the amount of paving in a front yard. The amount of driveway constructed at this point is the amount allowed up to the permitted 850 square feet allowed in a front yard. The current construction of the driveway is the amount allowed without a vacation approval. Langworthy asked if the variance will be presented to the Planning Commission. Bird responded that variance requests are not considered by the Planning Commission, but rather, they are presented to the Board of Zoning Appeals (BZA). The variance request is scheduled to be considered at the October 8, 2015 BZA meeting. Langworthy asked if the Planning Commission's decision tonight will be contingent upon approval of the variance. Bird said yes, staff is recommending that approval of the variance be contingent upon the vacation approval, and vice versa. Commissioner Gould asked if Findings of Facts are considered for a vacation request, indicating that he did not see them listed in the staff report. Adams said yes, there will be 4 Findings of Facts to consider. Bird added that the Findings of Facts are not specifically enumerated in the written staff report; however, they will be presented on the projector in the room. The proposed resolution provided in the Planning Commission packets does include those findings. Willis stated for public information that it is not permissible to proceed with construction without proper approval, that proper procedures need to be followed prior to construction. Adams clarified to say that, in this case, the property owners had followed procedure by submitting an application for a permit, and the permit was approved. However, the permit was granted without being reviewed by the Engineering and Planning staff. The applicant and the contractor were not aware that appropriate approval had not been made. Langworthy asked for clarification if the property owners have, at this point, done 129 anything not allowed by the zoning regulations. Bird confirmed that the applicant and contractor submitted an application and that the permit was issued in error. He said staff then initiated the correct process. Bird said the applicants have been very patient working through this process and have been very amicable. They have not constructed anything to date that would not have been approved. Commissioner Hicks asked if the applicant incurred additional expenses by delaying their project. Bird said he was not aware of additional costs and would defer to the applicant to answer that question. He indicated that financial implications would not normally be a consideration for the requested vacation. Commissioner Rhein asked why consideration for a vacation and a variance was required to approve vacating a portion of the front yard setback. Bird said initially the 5-foot vacation would have been enough to cover the paved area in the front yard; however, the paved area exceeded the limitation by 125 square foot. Since the vacation notice had already been published, staff proceeded with the vacation request process and planned to follow up with the variance at a later date. He said the variance would cover the considerations needed for the front yard vacation setback. Rhein asked if there was any harm in doing both. Bird said no. The 25-foot setback requested would be consistent with other residential districts in town, and the variance will still be needed to get the proper approval for the pavement in the front yard. Commissioner Poteete stated that setback requirements are for city utilities and roadway improvements and that he did not foresee changes to the street that would impact a change to the front yard setback. Bird stated for clarification that the front yard setback is not generally for utilities or street purposes. The setbacks are to ensure adequate open space and daylight for all developments. Streets are within the street right-of-way, which is a separate dedication from the setback. Utilities are usually confined to easements along the front or side of the property. In this case, the utilities in the street are not a consideration of the front yard setback.
Adams opened the floor to public comments.
John Hooper, 1028 N Westview Dr. spoke in favor of the proposed vacation. He stated that he frequently rides his bicycle along Madison Ave., and has occasionally needed to ride through residential yards or on the street when there was high pedestrian traffic. He thought the circular driveway would improve safety and enhance development in the area.
PUBLIC HEARING CLOSED
Adams asked city staff to present a summary of the Findings of Fact.
Bird presented the findings provided in the written the staff report.
1. THAT PROPER NOTICE HAS BEEN GIVEN IN ACCORDANCE WITH LAW: 130 LAW:
Adopted the written findings contained in the staff report. No questions or comments.
2. NO PRIVATE RIGHTS WILL BE INJURED OR ENDANGERED:
Willis asked if anyone has spoken against the request. Bird replied that staff has not received any communications in opposition to the proposed vacation for either the access control or the front yard setback. Adams pointed out that Mr. Hooper spoke in favor of the request.
3. THE PUBLIC WILL SUFFER NO LOSS OR INCONVENIENCE:
Adopted the written findings contained in the staff report. No questions or comments.
4. IN JUSTICE TO THE PETITIONER, THE VACATION SHOULD BE GRANTED:
Adopted the written findings contained in the staff report. No questions or comments.
Hicks moved to adopt the resolution. Langworthy asked that before a 2nd to the motion was made, would the Planning Commission amend the motion to make it contingent on the variance approval? Bird said staff concurs with that recommendation and stated that a resolution was drafted to include the condition that approval be contingent upon approval of the variance. If that is the motion and the Planning Commission agrees with the drafted resolution, that condition is covered. Langworthy proposed the Planning Commission make the motion to adopt the resolution as written as opposed to the motion given by Commissioner Hicks. Bird asked Commissioner Langworthy if she wanted to make a substitute motion, or if she was requesting Commissioner Hicks to amend his motion. Langworthy said he could amend the motion. Hicks said he was agreeable. Chairman Adams restated that the motion was to adopt a resolution recommending vacation of 20 feet of platted complete access control and 5 feet of platted front yard setback and instruct staff to forward the resolution to the City Council for consideration pursuant to variance approval.
Moved by Herman Hicks, seconded by Pat Baer, to adopt a resolution recommending vacation of 20 feet of platted complete access control and 5 feet of platted front yard setback and instruct staff to forward the resolution to the City Council for consideration a nd in pursuit to variance approval. Vote: 10 - 0
6. ANNOUNCEMENTS
Cody Bird, City Planner announced that there had not been any applications submitted 131 132 133 134 City Council Meeting 9. D. Meeting Date: 10/13/2015 Submitted By: Karen Friend, City Clerk Agenda Category: Consent
Subject: 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 15 properties, of which 3 are rentals, 5 are vacant, 6 are owner occupied and 1 is a vacant lot. 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 the 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 $2,065 which includes the City's mowing and trash removal costs plus administrative fees.
Legal Considerations: City ordinance authorizes 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.
Attachments 101315 Mowing Assessment Ordinance
135 Passed: October 13, 2015 Published: October 21, 2015
ORDINANCE NO. 2249
AN ORDINANCE LEVYING AS SPECIAL ASSESSMENTS UPON CERTAIN REAL PROPERTY, HEREINAFTER DESCRIBED, DIRECT AND INDIRECT COSTS INCURRED BY THE CITY IN MOWING GRASS, CUTTING WEEDS, REMOVING DEBRIS OR OTHERWISE ABATING NUISANCES FOUND TO EXIST THEREON.
WHEREAS, the City of Derby has incurred certain costs in abating nuisances found to exist upon certain real property located within the City; and
WHEREAS, the City is authorized to recover so much of such costs as remains unpaid by levying the same as special assessments against the respective lots and parcels upon which such remedial work was performed by or on behalf of the City;
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF DERBY, KANSAS:
Section 1. The sums set out opposite the following lots and parcels of land should be, and the same are hereby, levied as special assessments upon such lots and parcels to pay the cost incurred by the City in mowing grass, cutting weeds, removing debris, or otherwise abating nuisances found to exist thereon during the year 2015:
Legal Description: Assessment:
RO DY01659 $105.00 N. 22.25 Ft. Lot 40 – All Lot 41, Block 8, Riverview Addition, City of Derby, KS PIN: 00302024 Address: 601 S. Woodlawn Owner of record at time nuisance abated: Deena V. Williams, ETAL
RO DY00672 $105.00 Lot 10, Block 6, Pleasantview 3rd Addition City of Derby, KS PIN: 00300995 Address: 416 E. Lincoln St. Owner of record at time nuisance abated: Debra D. Jabes
136 RO DY01217 $105.00 Lot 2, Block 2, Pleasantview 2nd Addition City of Derby, KS PIN: 00301553 Address: 1252 N. Baltimore Owner of record at time nuisance abated: Lyn P. Engels
RO DY01994 $245.00 Lot 7, Block 7, Smithmoor Highlands 2nd Addition, City of Derby, KS PIN: 00302371 Address: 606 N. Rockford St. Owner of record at time nuisance abated: Olen Allison
RO DY000270001 $105.00 Lots 43 & 44 Exc. 37.5 Ft. Vac. St. Adj. Lot 43 on S. Georgie Street City of Derby, KS PIN: 00300242 Address: 154 S. Georgie Ave. Owner of record at time nuisance abated: Athena M. Edwards
RO DY01407 $105.00 Lot 11, Block 12, Pleasantview 2nd Addn. City of Derby, KS PIN: 00301762 Address: 1101 N. Lakeview Dr. Owner of record at time nuisance abated: Capri Holding, LLC and Pam L. Davis
RO DY02188 $130.00 Lot 16, Block D, Holbrook Addition City of Derby, KS PIN: 00302565 Address: 212 S. Lauber Lane Owner of record at time nuisance abated: Lisa Y. Belden & Othel M. Garcia
RO DY044920002 $210.00 N 142 Ft Lot 1 Block A, First National Bank Addition City of Derby, KS PIN: 30000456 Address: 1061 N. Buckner Owner of record at time nuisance abated: Retail Buildings, Inc.
2
137 RO DY00494 $105.00 Lot 3, Block 3, Lake View Addition City of Derby, KS PIN: 00300815 Address: 946 N. Lakeview Dr. Owner of record at time nuisance abated: Jason & Mandy Reitmayer
RO DY00830 $130.00 Lot 10, Block 3, Sunny-Dell Addition City of Derby, KS PIN: 00301164 Address: 433 S. Derby Ave. Owner of record at time nuisance abated: Robert J. & Joanne M. Gaulin
RO DY02563 $115.00 Lot 13 Block G Brookwood Addition City of Derby, Sedgwick County, Kansas PIN: 00302960 Address: 1006 E. Market Owner of record at time nuisance abated: Wayne & Jacqueline Murray
RO DY00544 $145.00 Lot 14, Block 1, Pleasantview 3rd Addition City of Derby, KS PIN: 00300867 Address: 1423 N. Baltimore Ave. Owner of record at time nuisance abated: Melinda Slaughter
RO DY00085 $140.00 W. 115 Ft. Lots 56-58-60, Baltimore Ave., City of Derby, KS PIN: 00300311 Address: 104 N. Baltimore Ave. Owner of record at time nuisance abated: Wholesale Petroleum Properties, Inc.
RO DY01590 $185.00 Lot 12, Block 5, Riverview Addition City of Derby, KS PIN: 00301962 Address: 509 S. Lakeview Dr. Owner of record at time nuisance abated: David P. Pritchett, III
3
138 RO DY00576 $135.00 Lot 9, Block 2, Pleasantview 3rd Addition City of Derby, KS PIN: 00300899 Address: 1300 N. Baltimore Ave. Owner of record at time nuisance abated: Allen Bundrick
Section 2. This Ordinance shall be effective from and after its publication once in the official City newspaper.
PASSED BY THE GOVERNING BODY of the City of Derby, Kansas, this 13th day of October, 2015.
Randy White, Mayor ATTEST:
Karen Friend, City Clerk
Approved as to form:
Jacqueline R. Butler, City Attorney
4
139 City Council Meeting 9. E. Meeting Date: 10/13/2015 Submitted By: Robert Mendoza, Director of Public Works Agenda Category: Consent
Subject: Brush Grinding
Background: The City of Derby provides green waste recycling at the Chip Site at High Park. Residents may dispose of tree limbs up to 18” in diameter. Bulk waste material is ground and the product is available to City crews and Derby residents at no charge. The City contracts with a grinding vendor to grind our product to a size required to meet the needs of the City. A Request for Bids for grinding services to generate a 2” x 2” mulch product at a maximum cost of $25,000 was issued. Three bids were received:
Custom Tree Care, Inc. $525/hour + $1,000 set-up fee Quality Timber Products $750/hour + $2,300 set-up fee Evergreen Recycle, LLC $23,500 complete job bid
The Bid Board reviewed and approved the bid from Custom Tree Care, Inc. for mulching and grinding services on October 1.
Financial/Sustainability Considerations: The approved 2015 budget includes $25,000 for brush grinding. Custom Tree Care, Inc. will provide substantially more material in less time than the other two vendors, making it the best value.
Recommend a Motion to: Authorize execution of a contract with Custom Tree Care, Inc. for brush grinding services not to exceed $25,000.
140