MERRIAM CITY COUNCIL AGENDA CITY HALL 9001 WEST 62 ND STREET FEBRUARY 13, :00 P.M.

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1 MERRIAM CITY COUNCIL AGENDA CITY HALL 9001 WEST 62 ND STREET FEBRUARY 13, :00 P.M. If you require any accommodation (i.e. qualified interpreter, large print, reader, hearing assistance) in order to attend this meeting, please notify the Administrative Office at no later than 24 hours prior to the beginning of the meeting. I. CALL TO ORDER - PLEDGE OF ALLEGIANCE II. III. ROLL CALL PUBLIC ITEMS Members of the public are encouraged to use this time to make comments about matters that do not appear on the agenda. Comments about items on the regular agenda will be taken as each item is considered. Please note: individuals making Public Comments will be limited to 5 minutes. IV. CONSENT AGENDA All items listed under the heading are considered to be routine by the City Council and may be enacted by one motion. There will be no separate discussion of these items unless a Councilmember or citizen so requests, in which case that item will be removed from the Consent Agenda and considered separately. 1. Consider approval of the minutes of the City Council meeting held January 23, Consider approval of an interlocal agreement with the City of Merriam, Johnson County and Overland Park for Antioch Road mill and overlay from 47 th St. to 54 th Terrace. 3. Consider approval of the purchase of two dump trucks. 4. Consider ratification of budget adjustments for Court, City Council, and Visitors Bureau. 5. Consider approval of a professional services agreement with BHC Rhodes for design services of CMP Rehab/Replacement Owen Heights (47 th Street/Eby Street to Antioch Road). V. MAYOR S REPORT 1

2 1. City Service Awards. 2. Year in Review video. 3. Consider approval of the appointment of Meredith Hauck as Assistant City Administrator. VI. COUNCIL ITEMS A. Finance and Administration 1. Consider approval of real estate purchase for property located at and near 6120 Slater. 2. Consider approval of the sale of surplus city property generally located at 7000 W. Frontage Rd. 3. Monthly Finance Report. B. Community Development/Public Works/CIP 1. CIP Update. VII. STAFF ITEMS 1. Discussion on possible recreational facilities solutions. IX. NEW BUSINESS X. EXECUTIVE SESSION XI. ADJOURNMENT Respectfully submitted, Juliana Pinnick Juliana Pinnick City Clerk 2

3 City Council Minutes January 23, 2017 MERRIAM CITY COUNCIL MINUTES CITY HALL 9001 WEST 62 ND STREET January 23, :00 P.M. I. CALL TO ORDER - PLEDGE OF ALLEGIANCE Mayor Ken Sissom called the meeting to order at 7:00 pm. II. ROLL CALL Al Frisby Scott Diebold Chris Evans Hands Nancy Hupp Cheryl Moore Bob Pape Robert Weems Staff present: Chris Engel, City Administrator; Mike Daniels, Police Chief; Anna Slocum, Parks and Recreation Director; Cindy Ehart, Finance Director; Kevin Bruemmer, Public Works Director; Nicole Proulx Aiken, City Attorney; and Juli Pinnick, City Clerk. III. PUBLIC ITEMS Members of the public are encouraged to use this time to make comments about matters that do not appear on the agenda. Comments about items on the regular agenda will be taken as each item is considered. Please note: individuals making Public Comments will be limited to 5 minutes. IV. CONSENT AGENDA All items listed under the heading are considered to be routine by the City Council and may be enacted by one motion. There will be no separate discussion of these items unless a Councilmember or citizen so requests, in which case that item will be removed from the Consent Agenda and considered separately. 1. Consider approval of the minutes of the City Council meeting held January 9, Consider approval of the purchase of four park signs with installation and eight park rule signs. 3. Consider approval of the purchase of a Telescopic aerial truck for Public Works. 1

4 City Council Minutes January 23, 2017 COUNCILMEMBER HANDS MOVED THAT THE COUNCIL APPROVE CONSENT AGENDA ITEMS 1-3. COUNCILMEMBER FRISBY SECONDED AND THE MOTION WAS UNANIMOUSLY APPROVED. V. MAYOR S REPORT 1. Stuart Little- Legislative Update. Stuart Little provided a legislative update for the 2017 Legislative Session. VI. PLANNING COMMISSION 1. Consider acceptance of easements dedicated by the Final Plat for 6445 Carter Ave.(PA ). Community Development Director Bryan Dyer provided the background for this item. The applicant and property owner, Shawnee Mission School District represented by Tyler Clubb, Asst. Director of Facilities, proposes to plat the subject properties in order to facilitate the construction of a new warehouse/office building for the school district. This facility will consolidate two existing maintenance operations facilities the school district currently utilizes. These facilities are presently located outside of Merriam. Since 1962, the American Cast Iron Pipe Company s warehouse and offices occupied the property. The company stored larger cast iron pipes outside the building and supplied piping via a railroad spur for distribution to clients. American Cast Iron Pipe Company discontinued use of the property in approximately In the spring of 2016, the school district purchased the property (Tract 1) from American Cast Iron Pipe. In order to gain access to a sanitary sewer main, the school district has contracted to purchase a portion of the property (Tract 2) to the north from SBA Towers II, LLC. The subject properties are zoned I-1 (Light Industrial) District and the applicant has requested approval of a final plat so that required sanitary sewers necessary for the new construction will be on one (1) lot. The plat dedicates a five (5) and seven and a half (7.5) foot utility easement along the sides and rear of the subject property, as indicated on the plat. Southern Star requested an easement for a high-pressure gas line along the west property line of both tracts. The remaining easements shown on the plat are existing. COUNCILMEMBER MOORE MOVED THAT THE COUNCIL ACCEPT THE DEDICATION OF EASEMENTS SHOWN ON THE CARTER INDUSTRIAL FINAL PLAT (PF ). COUNCILMEMBER WEEMS SECONDED AND THE MOTION WAS UNANIMOUSLY APPROVED. VII. COUNCIL ITEMS 2

5 City Council Minutes January 23, 2017 A. Finance and Administration 1. Consider approval of the purchase of a Stalker message/speed detection trailer. Police Chief Mike Daniels provided the background for this item. The 2017 budget included the purchase of a message/speed detection trailer. We have conducted our research and would like to purchase a Stalker MC360 Message Trailer. This trailer will be able to serve several purposes for the city. The sign board is capable of flashing messages, detecting speed and gathering data on the speed and direction of traffic. The current sign/speed detection trailer was purchased in The Stalker MC360 has a 3 x 6 message board is battery operated with amber LED characters legible up to 850 ft. It s on-board dedicated computer has a fullsize keyboard that makes programing easier, and has 250 text, 60 graphics and 20 arrow board display messages preprogrammed, plus the ability to add 100 user-created messages that can be programmed and stored for easy use. The traffic data statistics package will help us with our efforts to reduce traffic accidents by allowing us to evaluate violation patterns. COUNCILMEMBER MOORE MOVED THAT THE COUNCIL APPROVE THE PURCHASE OF A STALKER MC360 MESSAGE TRAILER IN THE AMOUNT OF $14,997. COUNCILMEMBER HUPP SECONDED AND THE MOTION WAS UNANIMOUSLY APPROVED. 2. Consider approval of the 2017 Legislative Agenda. City Administrator Chris Engel provided the background for this item. The proposed 2017 Legislative Agenda was discussed at the January 9, 2017 City Council meeting. This agenda continues the tradition of establishing a joint agenda with other Johnson County cities and the Johnson County Commissioners to better assert our collective hopes and desires for the upcoming session. Sales Tax Reduction on Food (new item) this item was requested by City Council at the January 9 th Council meeting COUNCILMEMBER PAPE MOVED THAT THE COUNCIL APPROVE THE 2017 LEGISLATIVE AGENDA. COUNCILMEMBER FRISBY SECONDED AND THE MOTION WAS UNANIMOUSLY APPROVED. B. Community Development/Public Works/CIP 3

6 City Council Minutes January 23, Consider approval of the City of Merriam s application to the Johnson County Stormwater Management Program (JCSMP) for $5,000 in funding for the installation of Stormwater Best Management Practices (BMPs) by individual landowners and businesses. Community Development Director Bryan Dyer provided the background for this item. Included in the Agenda Packet was the City of Merriam s application to JCSMP for $5,000 in funding for the installation of BMPs by individual landowners and businesses. This is a cost share program funded by the county and implemented by local municipalities. Landowners or businesses have the opportunity to apply for funds to share in the cost of the installation of BMPs. The list of eligible BMPs and cost share amount staff is recommending for Merriam s program includes: Rain Gardens 50% match up to $1,000 Rain Barrels 50% match up to $75 Native Tree Plantings 50% match up to $150 Native Plantings 50% match up to $1,000 Landowners or businesses will apply to Community Development. Staff will review the Application form and, if necessary, visit the location of the proposed BMP installation. Following staff s approval of the application, the landowner will install the BMP and submit the Reimbursement form to staff. Community Development staff will then review the BMP installation and supporting documentation. Then, if appropriate, the city will reimburse the landowner. The city will then request reimbursement for those funds from the county on a monthly basis. The property owner is required to maintain the BMP for three (3) years, after which time city staff will inspect the BMP. In addition to the two (2) application forms, information on BMP installation will be included on the city s website and placed in City Hall. Johnson County will provide funds for the cost share portion of the program. City of Merriam will provide the staffing and supplies (forms, information, and website creation) for the program. COUNCILMEMBER HUPP MOVED THAT THE COUNCIL APPROVE AN APPLICATION TO JOHNSON COUNTY STORMWATER MANAGEMENT PROGRAM FOR $5,000 IN FUNDING FOR THE INSTALLATION OF BMP S BY INDIVIDUAL LANDOWNERS AND BUSINESSES. COUNCILMEMBER HANDS SECONDED AND THE MOTION WAS UNANIMOUSLY APPROVED. 2. Community Development Update. Community Development Director Bryan Dyer provided the following Community Development updates: 4

7 City Council Minutes January 23, 2017 Merriam Luxury Imports has withdrawn their TIF application. While there is still interest in developing the site, the applicant was unable to secure an end-user. They could reapply at any time. The Planning Commission is working through a number of code revisions. It appears that these changes may be approved at their February meeting and will then forward on for council approval. Pegah s Restaurant is moving into the old IHOP location and plan to open in early February. VIII. STAFF ITEMS City Administrator Chris Engel announced that long time Merriam resident Myra Jenks passed away. Staff will forward visitation information to council. The Assistant City Administrator search is going well. It is anticipated that the Mayor will come forward with a recommendation for appointment in February. IX. NEW BUSINESS X. EXECUTIVE SESSION COUNCILMEMBER HANDS MOVED THAT THE COUNCIL RECESS INTO EXECUTIVE SESSION PURSUANT TO THE KANSAS OPEN MEETINGS ACT EXCEPTION FOR PRELIMINARY DISCUSSIONS RELATING TO THE ACQUISITION OF REAL PROPERTY. PRESENT WILL BE THE GOVERNING BODY, CITY ADMINISTRATOR AND CITY ATTORNEY. THE MEETING WILL RECONVENE IN THE COUNCIL CHAMBERS AT 8:10 PM. COUNCILMEMBER HUPP SECONDED AND THE MOTION WAS UNANIMOUSLY APPROVED. The meeting reconvened at 8:10 pm. XI. ADJOURNMENT THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE COUNCIL, COUNCILMEMBER HANDS MOVED TO ADJOURN AT 8:11 PM. COUNCILMEMBER WEEMS SECONDED AND THE MOTION WAS UNANIMOUSLY APPROVED. Respectfully submitted, Juliana Pinnick 5

8 City Council Minutes January 23, 2017 Juliana Pinnick City Clerk 6

9 AGENDA ITEM INFORMATION FORM Agenda Item: Execute an Inter-Local Agreement with Johnson County and the City of Overland Park for Johnson County s County Assistance Road System (CARS) funding of the mill and overlay of Antioch Road from 47 th Street to 54 th Terrace. Department: Capital Improvement Program (CIP)/Public Works Background/Description of Item: In collaboration with the City of Overland Park, staff requested funding from Johnson County s County Assistance Road System (CARS) program for the Antioch Road Improvement between 47 th Street to 54 th Terrace. The Johnson County Board of County Commissioners adopted the project funding in the fall of 2016 for construction in The centerline of Antioch Road is the city limit that separates Merriam and Overland Park, with shared road maintenance. The City of Overland Park will be administering all aspects of this project. Staff from both cities participated in plan reviews and offered comments. The CARS program will fund 50% of the original engineer s cost estimate of $1,002,000.00, up to $501, The remaining 50% will be shared by Overland Park and Merriam at a per city cost of $250, The City Attorney has reviewed the Inter-Local Agreement as to form. Enclosure: CARS agreement Funding Source: 50% Johnson County CARS Funds ($501,000.00), 25% from City of Merriam CIP matching funds from ¼- cent special sales tax ($250,500.00) and final approximate 25% from City of Overland Park ($250,500.00). (Project #GC1701) Funding Source Reviewed by: Cindy Ehart, Finance Director Recommendation: Recommend that Council authorize the Mayor, City Clerk, and City Attorney to sign and execute the Inter-Local Agreement with Johnson County and the City of Overland Park for the County s CARS program on the Antioch Road 47 th Street to 54 th Terrace Improvement Project. (CARS Project No ) Prepared by: Carl Sanders, Project Coordinator Date: February 7, 2017 Reviewed by: Kevin Bruemmer

10 AGENDA ITEM INFORMATION FORM Agenda Item: Consider approval of the purchase Two 2017 International trucks and dump bodies. Department: Public Works Background/Description of Item: As part of the 2017 budget, $274, was approved for the purchase of two new trucks, including dump body and central hydraulics. We will be replacing two 2000 International 4900 dump trucks that have reached their maximum life expectancy and proven unreliable in recent years. One has 81,835 miles with 9,726 hours of run time the other has 87,514 miles with 9,253 hours of run time. The new trucks will be 2017 International 7500 tandem axle from Summit Truck at a cost of $89, each, with stainless steel bed and central hydraulics installed from American Equipment at a cost of $47, each. The total amount for two trucks, dump bodies and hydraulics is $273, The 7500 tandem axle trucks will be purchased through MACPP and the dump bodies and hydraulics will be purchased through American Equipment. The City of Merriam is part of MACPP (Mid America Council of Public Purchasing) which allows municipalities to save money on products purchased through MACPP due to large volume purchasing. This association has developed efficient purchasing methods and practices in governmental procurement. They encourage ethical standards in buying and selling and promote uniform public purchasing laws and simplified standards of specifications. The purchase through MACPP is in lieu of the City of Merriam soliciting bids because all contracts are competitively solicited by a lead agency. In lieu of soliciting bids for the dump body and hydraulics the City of Merriam is able to piggyback off the City of Kansas City, MO contract # EV2260 which named American Equipment the lowest/best bid for these items. Funding Source: Equipment Reserve Fund Funding Source reviewed by: Cindy Ehart, Finance Director Recommendation: Staff recommends approval of the purchase of two trucks including dump body and hydraulics in the amount of $273, Prepared by: Jim MacDonald, Superintendent Date: February 8, 2017 Reviewed by: Kevin Bruemmer, Public Works Director

11 AGENDA ITEM INFORMATION FORM Agenda Item: Consider ratification of budget adjustments between expenditure categories for: City Council, Municipal Court, Police, Fire and Visitors Bureau departments. Department: Finance Background/Description of Item: Council Policy No. 102 outlines approval requirements for all budget adjustments. Adjustments within departmental expenditure categories occur with approval of appropriate staff. However, City Council ratification or approval is required for adjustments that occur between expenditure categories (i.e. salary/benefits, contractual services, or commodities). Ratification is requested for 2016 budget adjustments to five departments: City Council, Municipal Court, Police, Fire and Visitors Bureau. In each case, an expenditure category exceeds budget but the overall department is within budget. Details with explanations are attached. The City Administrator has approved the proposed budget adjustments. Related Ordinance or Statutes: Council Policy No Recommendation: Staff recommends City Council ratification of budget adjustments between expenditure categories for: City Council department (General Fund) for $630 Municipal Court department (General Fund) for $3,000 Police department (General Fund) for $5,000 Fire department (General Fund) for $20,000 Visitors Bureau department (Transient Guest Tax Fund) for $5,250 Prepared by: Cindy Ehart, Finance Director Date: February 9, 2017

12 CITY OF MERRIAM BUDGET ADJUSTMENT FORM 2016 Budget Transfer BUDGET AMENDMENT Category ACCOUNT NUMBER ACCOUNT DESCRIPTION AMOUNT INCREASE (DECREASE) City Council Salary/Benefits Part-time Salaries Contractual Other Contractual Service (630.00) Budget failed to reflect 2016 range adjustments Municipal Court Contractual Court Appointed Attorneys 1, Contractual District Court of Appeal (Prosecution) 2, Salary/Benefits Part-time Salaries (3,000.00) Defendant usage of court appointed attorneys and appealed cases exceeded budget Police Department Salary/Benefits Regular Salaries 5, Contractual Electric Service (5,000.00) Salaries exceeded budget due to higher staffing levels authorized by Council in 2016 Fire Department Contractual Overland Park Fire Services 20, Commodities Gasoline/Oil (10,000.00) Commodities Other Misc Equip (10,000.00) Merriam's contractual obligations for retirement payments exceeded budget Visitors Bureau Salary/Benefits Health Insurance 5, Contractual Other Communications (5,250.00) Employee health insurance usage exceeded budget TOTAL AMENDMENTS - (total must equal zero) Department Head Approval City Administrator/Finance Director Approval City Council Approval (if required)

13 AGENDA ITEM INFORMATION FORM Agenda Item: Authorize the Mayor to execute Engineering Services for design, Phase 2-Plan Production, with BHC Rhodes for CMP Rehab/Replacement Owen Heights (47 th Street/Eby Street to Antioch Road) for an amount not to exceed $59, Department: Capital Projects/Public Works Background/Description of Item: The City entered into an agreement with BHC RHODES (Consultant) in May of 2016 to provide professional services to prepare a memorandum that detailed pipe rehab/repair recommendations, initial cost estimate, and an initial construction schedule for the existing storm sewer within the Owen Heights subdivision. This agreement was to not exceed $16, This Phase was completed in September Staff has reviewed and approved BHC Rhodes recommendations and cost estimate. Approval of this Task Order will allow Staff and BHC Rhodes to move forward with the design phase of this project. Enclosure: Design Services Task Order Phase 2-Plan Production. Funding Source: General CIP Fund-Corrugated Metal Pipe Rehab/Replacement (Project #GM1602) Funding Source Reviewed by: Cindy Ehart, Finance Director Recommendation: The Council authorize the Mayor to execute Design Services Task Order Phase 2-Plan Production with BHC Rhodes for plan design of CMP Rehab/Replacement Owen Heights (47 th Street/Eby Street to Antioch Road). Prepared by: Carl Sanders, Project Coordinator Date: February 6, 2017 Reviewed by: Kevin Bruemmer

14 January 4, 2017 Mr. Kevin Bruemmer City of Merriam 9001 West 62nd Street Merriam, KS Re: CMP Rehab/Replacement (47th Street / Eby Street to Antioch Road) Phase 2 Plan Production Design Services Task Order: On-Call Professional Services Dear Mr. Bruemmer: Brungardt Honomichl & Company, P.A. (BHC RHODES) is pleased to submit the following proposal to you for engineering services on the above referenced project. It is our understanding that this work would be performed, if authorized, under a task/purchase order as part of the on-call professional services agreement dated February 23, 2015 between BHC RHODES and the City of Merriam (City). PROJECT UNDERSTANDING BHC RHODES (Consultant) will provide professional services for the preparation of construction documents that detail pipe and structure rehabilitation / repair / replacement for the existing storm sewer system within the Owen Heights subdivision. BHC RHODES proposes to provide the following professional services. SCOPE OF SERVICES Specific work to be performed includes: Task 1 Survey Property Determinations. Research. Topographic Route Survey. 20 on each side of the pipe and any structures within 40 of the pipe for the project limits. Storm Inventory. Locating and Surveying (flow lines) the 17 drainage structures. Task 2 Preliminary Plans Survey and existing utilities will be incorporated into the base map based on markings done using One-Call locate requests. Contact local utility providers and gather information regarding existing facility locations and any planned utility improvements within the project vicinity. Prepare and submit preliminary design plans in accordance with City standards and requirements. These preliminary plans will include: Title Sheet, Survey Data Sheet, Right-of-Way Map, Plan Sheets (1 =20 horiz.), and Storm Sewer Profiles. Submit at least 3 paper copies of plans shall be provided to City (one full size and two half size) as well as a PDF copy. Page 1 CMP Rehab/Replacement (47th Street / Eby Street to Antioch Road) Design Services 1/4/17

15 Prepare opinion of probable costs and submit to City. Participate in Project Walk-Thorough (Field Check). Revise preliminary design plans as required by preliminary plan comments Task 3 Legal Descriptions and Exhibits Prepare legal descriptions and exhibits for a maximum of four (4) tracts anticipated to be impacted by the pipe replacement. Tracts adjacent to the structure repair and replacement work are not anticipated to be impacted. Task 4 Public Open House Conduct a public open house meeting at City Hall or similar City-designated location. Consultant will provide display boards, comment forms, and informational handouts for attendees. Task 5 Utility Plans Identify existing utility conflicts and begin coordination of necessary relocations, if any. Distribute preliminary half-size plans and notice to all utilities and conduct utility coordination meeting. Task 6 Final Plans Prepare and submit final design plans in accordance with City standards and requirements. These final plans will include: Title Sheet, General Notes and Legend, Quantities (Recapitulation Only), Survey Data Sheet, Right-of-Way Map, Plan Sheets (1 =20 horiz.), Roadway Details, Storm Sewer Profiles, Storm Sewer Details, Erosion Control Plan & Details. Submit at least 3 paper copies of plans shall be provided to City (one full size and two half size) along with a PDF copy. Update opinion of probable costs and submit to City. Prepare the project manual using the City s standard project documents and assemble special conditions/provisions for items not included or addressed by City s standard specifications. Revise final design plans as required by final plan comments and prepare final construction documents for bid letting by City. At least 3 paper copies of plans shall be provided to City (one full size and two half size) along with a PDF copy. Task 7 Letting Respond to Requests for Information (RFIs), prepare any bid addenda and distribute to plan holders. Provide bid documents electronically to Drexel Technologies for their distribution of bid packages to interested parties. Attend pre-bid conference, if desired by City. Prepare and submit the Engineer s Opinion of Probable Cost to the City for their review at time of bid opening. Attend bid letting, prepare a bid tabulation, and provide City with a letter recommendation regarding the submitted bids. Page 2 CMP Rehab/Replacement (47th Street / Eby Street to Antioch Road) Design Services 1/4/17

16 Task 8 Construction Attend pre-construction meeting. Review and approve shop drawings. Respond to contractor questions and change orders. Attend additional construction meetings as requested by the city, not to exceed 3. Prepare record drawings based on markups provided by Contractor and/or construction inspector. Two paper copies of record drawings will be provided to City (full-size and half-size sets) as well as a PDF file of set. ADDITIONAL SERVICES When specific additional surveys, plans, specifications, inspection of construction or other such services are called for or requested by the City, Consultant will furnish personnel, equipment and management to provide such services on an hourly basis as hereinafter provided. These additional services could include, but are not limited to: permitting, additional unforeseen meetings, consideration of additional options not specifically included in this scope, design of private utility relocations, wetlands assessment and mitigation design, design of improvements beyond limits of project, and construction observation services. FEES The City will reimburse the Consultant for the provision of professional services described in the Scope of Services on a time and expense basis with a total amount of compensation not to exceed Fifty-Nine Thousand Seven Hundred and Ninety- Eight Dollars ($59,798.00). All work performed will be charged per the rates stated in the professional services agreement. Any additional work or additional reimbursable expenses incurred for work beyond the stated scope of services will be charged to the Client in accordance with the following schedule. SCHEDULE The services included in this task order are anticipated to be completed such that the project will bid in early Page 3 CMP Rehab/Replacement (47th Street / Eby Street to Antioch Road) Design Services 1/4/17

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18 Last Name First N Years of Service Title Dept. Eickhoff Gerry 25 Master Police Officer Police Department Allen Todd 20 Police Captain Police Department Fauser Mark 20 Foreman Public Works Department Brokaw Christopher 15 Sergent Police Department Forbes Carl 15 Maintenance Worker II Public Works Department Hidalgo Frank 15 Maintenance Worker II Public Works Department Covell Halen 10 Maintenance Worker II Public Works Department Naughton Lisa 10 Administrative Assistant Parks & Recreation Department Browning Jr. James 10 Corporal Police Department Frisby Albert 5 Council Member Council member Veeman Todd 5 Public Work Technician Public Works Department Hardisty Shellie 5 Facility Supervisor Parks & Recreation Department

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22 AGENDA ITEM INFORMATION FORM Agenda Item: Consider approval of real estate purchase located at and near 6120 Slater. Department: Administration Background/Description of Item: As a general practice, city staff is always looking for opportunities to appropriately expand the city's park inventory. Staff generally looks to areas in the city underserved by existing parkland. However, staff is also receptive to available property that is immediately adjacent to existing parkland as an opportunity to increase existing park size. In 2016 two parcels located immediately next to Vavra Park became available as the result of a replat and sale to a new business, Options Services, Inc. located at 8910 W. 62 nd Terrace. The two properties of interest are to the south and southeast of Vavra Park and can be identified as 6120 Slater Street and a remnant property with no address situated directly south and southwest of 6120 Slater Street. These properties would add an additional one acre to the park. City staff, with City Council direction, expressed interest in those remaining available properties and began the process of negotiating a potential sale price. After negotiations between the city and the seller a sale price of $300,000 plus realtor commission has been agreed upon by both parties. Funding for the purchase of these properties would come from CIP General Projects Contingency. The attached contract has been reviewed by the City Attorney. Attachments: Commercial Real Estate Sales Contract Related Ordinance or Statutes: Per Administrative Regulation #4 Purchasing Procedures Policy, all purchases involving real property must be authorized by the Governing Body. Recommendation: Recommend City Council authorize the expenditure of $318,000 plus any associated closing costs for the purchase of properties located at and near 6120 Slater Street and authorize the City Administrator to sign any associated closing documents. Prepared by: Chris Engel, City Administrator Date: February 9, 2017

23 COMMERCIAL REAL ESTATE SALES CONTRACT 1. PARTIES: This contract ("Contract") is made and entered into this day of, 2017 (the Effective Date ) by and between MDF PROPERTIES, LLC, ( SELLER ) a Limited Liability Company, and CITY OF MERRIAM, KANSAS ( BUYER or CITY ), a municipal corporation duly organized under the laws of the State of Kansas. This Contract is subject to approval of the City Council of the City and will not be effective until signed by the Mayor of the City. 2. PROPERTY: Seller agrees to sell to Buyer and Buyer agrees to purchase from Seller the real estate described in Exhibit A (Legal Description) attached hereto, such to be verified by the Title Company, together with any buildings and improvements thereon, and all personal property used in the operation of the buildings and improvements, including, if any, all mechanical systems, fixtures and equipment, heating, ventilating and airconditioning equipment, electrical systems and lighting, plumbing equipment and fixtures, floor coverings, storm windows and doors, screens and awnings, keys, and including the following: SEE EXHIBIT A all of which is commonly known and numbered as JP and JP (aka 6120 Slater St, Merriam, KS 66202). Such real estate and other property shall be collectively referred to in this Contract as the "Property." 3. EXCEPTIONS. The Property shall be subject, however, to the Permitted Exceptions (as defined in the paragraph entitled "Title Insurance"), zoning ordinances and laws. 4. PURCHASE PRICE. The Purchase Price is Three Hundred Thousand and 00/100 Dollars ($300,000.00) which Buyer agrees to pay as follows: a. Five Thousand and 00/100 Dollars ($ ) at the signing of this Contract as Earnest Money, such to be deposited upon execution of this Contract within 10 days IN THE INSURED TRUST OR ESCROW ACCOUNT OF First American Title ("Escrow Agent") as part of the consideration of the sale. All Earnest Money shall be refundable during the Due Diligence Period and any the event that the Buyer s objections are not resolved to Buyer s satisfaction during either the Due Diligence or Title Cure periods, Buyer is entitled to a full refund of the Earnest Money, upon demand.; b. The balance to be paid in the following manner: Two Hundred Ninety-Five Thousand and 00/100 Dollars ($295,000.00) in guaranteed funds or cashier's check at Closing (as defined in this Contract), adjusted at Closing for pro-rations, closing costs and other agreed expenses, and (state other payment or financing terms, if any). 5. CLOSING AND POSSESSION DATE(S): Subject to all the provisions of this Contract, the closing of this Contract (the "Closing") shall take place at the offices of First American Title fifteen (15) calendar days after the end of the Due Diligence Period or prior thereto by mutual consent, and possession shall be delivered upon closing or as follows: 6. OCCUPANCY. Prior to closing, the seller is responsible for vacating all occupants and their personal property from the residence located at 6120 Slater Street. Before closing, the seller will notify the buyer that the residence has been vacated and provide the buyer the opportunity to inspect the residence to verify that it is Page 1 of 6

24 vacant. At the time of closing, any and all personal property remaining in the residence becomes the property of the buyer. The buyer may then dispose of the personal property in any manner they so choose. 7. EXISTING FINANCING: Unless otherwise provided in this Contract, Seller shall make any payments required on existing mortgages or deeds of trust until Closing. If this Contract provides that the Property is being sold subject to any existing mortgage or deed of trust, Buyer shall, at Closing, reimburse Seller for any principal reductions not already considered in computing payments of purchase price and for any deposits held by the holder of the mortgage or deed of trust that are transferred to Buyer. 8. PRORATIONS: The rents, income and expenses from the Property, and the interest on any existing mortgages or deeds of trust to which this sale is made subject, shall be prorated between Seller and Buyer as of Closing. Seller shall pay all general real estate taxes levied and assessed against the Property, and all installments of special assessments for the years prior to the calendar year of Closing. All such taxes and installments of special assessments becoming due and accruing during the calendar year of Closing shall be prorated between Seller and Buyer on the basis of such calendar year, as of Closing. If the amount of any tax or special assessment cannot be ascertained at Closing, pro-ration shall be computed on the amount for the preceding year's tax or special assessment. Buyer shall assume and pay all such taxes and installments of special assessments accruing after the Closing. 9. TITLE INSURANCE: Seller shall deliver to the buyer an owner's ALTA title insurance policy insuring marketable fee simple title in Buyer in the amount of the Purchase Price as of the time and date of recording of Seller's Warranty Deed (the "Deed"), subject only to the Permitted Exceptions defined below. Seller shall, as soon as possible and not later than ten (10) days after the Effective Date of this Contract, cause to be furnished to Buyer a current commitment to issue the title policy (Title Commitment), to be issued through (the "Title Company"). Buyer shall have ten (10) days after receipt of the Title Commitment (the "Title Review Period") in which to notify Seller in writing of any objections Buyer has regarding any matters shown or referred to in the Title Commitment. Any matters which are set forth in the Title Commitment and to which Buyer does not object within the Review Period shall be deemed to be permitted exceptions to the status of Seller's title (the "Permitted Exceptions"). With regard to items to which Buyer does object within the Review Period, Seller shall have ten (10) days after receipt of Buyer's written notice of objections to cure such objections to Buyer s satisfaction ("Title Cure Period"). If Seller does not cure the objections by the end of the Title Cure Period or if Seller and Buyer have not agreed to extend the Title Cure Period by amending this Contract, then Buyer may, at its option, terminate this Contract by providing notice to Seller no later than three (3) business days after the end of the Title Cure Period. Otherwise, Buyer waives said objections. 10. SURVEY: On the Effective Date, Seller shall furnish to Buyer any survey in Seller s possession if any. And Buyer may, at its own cost obtain a survey of the Property as soon as possible and not later than fifteen (15) days after the Effective Date of this Contract. Unless otherwise objected to in writing by Buyer or Seller within five (5) days of delivery of the survey, the survey will be accepted as being correct for the Property and there will be no objections to such. 11. INSPECTIONS: Seller shall grant Buyer reasonable access to the Property for fifteen (15) days after the Effective Date of this Contract (the "Inspection Period") for the purpose of inspecting the physical condition of the Property. Buyer's inspection rights shall include performing soil tests, environmental tests or audits, foundation and mechanical inspections and such other inspections or surveys as Buyer may reasonably request. Buyer agrees to repair any damage to the Property arising from these inspections. Buyer's obligations imposed by this paragraph shall survive termination of this Contract. Buyer agrees to provide Seller with a copy of any written reports resulting from such inspections within three (3) days of the completion of said inspections. With regard to any deficiencies identified during the inspections by Buyer which Buyer requests be corrected, Page 2 of 6

25 Seller shall have ten (10) days (the "Cure Period") after Seller's receipt of Buyer's written notice of such inspection issues to define in an Amendment to this Contract how and when such deficiencies will be cured. If Seller elects not to cure the deficiencies within the time frame defined in such Amendment, then this Contract shall automatically be terminated unless Buyer waives the objections no later than three (3) days after the end of the Cure Period. Buyer shall be deemed to be thoroughly acquainted and satisfied with the physical condition of the Property, other than as set forth in the paragraph entitled "INSURANCE; MAINTENANCE; CASUALTY; CONDEMNATION; CHANGE OF CONDITION" of this Contract. In addition, Buyer, or Buyer's representatives, may re-inspect the Property before Closing upon reasonable notice to Seller. 12. DUE DILIGENCE: Buyer will have fifteen (15) days after the Effective Date of this Contract to perform due diligence (the "Due Diligence Period") for the purpose of inspecting the records, obtaining a Phase I Environmental Report (at Buyer s cost), conducting its feasibility study, exploring and obtaining approval of governmental authorities for the intended purpose of the Property and any changes in zoning, if necessary and to perform any additional inspection or diligence Buyer deems necessary. Prior to the expiration of the Due Diligence Period, Buyer may deliver written notification to Seller to cancel this Contract and this Contract will be terminated. In the absence of such termination notice, the Inspections and Due Diligence shall be deemed to be satisfactory to Buyer. 13. REAL ESTATE BROKER: Seller and Buyer agree that Winbury Realty of K.C., Inc. d/b/a Colliers International SELLER S BROKER(S), the only real estate broker(s) negotiating this sale, and Buyer agrees to pay a sales commission of six percent (6%) of the Purchase Price pursuant to the agreement between Seller and BROKER(S). Any party to this Contract through whom a claim to any broker's, finder's, or other fee is made, contrary to the representations made above in this paragraph, shall indemnify, defend and hold harmless the other party to this Contract from any other loss, liability, damage, cost or expense, including without limitation, reasonable attorney's fees, court costs and other legal expenses paid or incurred by the other party, that is in any way related to such a claim. The provisions of this paragraph shall survive Closing or termination of this Contract. 14. DELIVERY OF DEED, PAYMENT; DISBURSEMENT OR PROCEEDS: At or before Closing, Seller agrees to properly execute and deliver into escrow the Warranty Deed, a Bill of Sale for any nonrealty portion of the Property, and all other documents and funds necessary to complete the Closing. The Warranty Deed shall convey to Buyer marketable fee simple title to the Property, free and clear of all liens and encumbrances, other than the Permitted Exceptions. At or before the Closing, Seller and Buyer each agree to deliver into escrow a cashier's check or guaranteed funds sufficient to satisfy their respective obligations under this Contract. Seller understands that, unless otherwise agreed, disbursement of proceeds will not be made until after the Deed or the instrument of conveyance, and, if applicable, the mortgage/deed of trust have been recorded and the Title Company can issue the title policy with only the Permitted Exceptions. 15. INSURANCE; MAINTENANCE; CASUALTY; CONDEMNATION; CHANGE OF CONDITION: Seller agrees to maintain Seller's current fire and extended coverage insurance, if any, on the Property until Closing. Seller shall do ordinary and necessary maintenance, upkeep and repair to the Property through Closing. If, before Closing, all or any part of the Property is taken by eminent domain, or if a condemnation proceeding has been filed or is threatened against the Property or any part thereof, or if all of any part of the Property is destroyed or materially damaged after the Inspection Period, Seller shall promptly provide written notice to Buyer of any such event. UPON NOTICE OF SUCH OCCURRENCE, Buyer may re-inspect the Property and may, by written notice to Seller within ten (10) days after receiving Seller's notice, terminate this Contract. Unless this Contract is so terminated, it shall remain in full force and effect, and Seller shall, at Closing, assign and transfer to Buyer all of Seller's right, title and interest in and to any awards that may be made for any taking and any insurance proceeds payable on account of casualty. If a non-material change in condition occurs with Page 3 of 6

26 respect to the Property, Seller shall remedy such change before Closing. The provisions of this paragraph shall survive Closing or termination of this Contract. 16. FOREIGN INVESTMENT: Seller represents that Seller is not a foreign person as described in the Foreign Investment In Real Property Tax Act and agrees to deliver a certificate at Closing to that effect which shall contain Seller's tax identification number. 17. DEFAULT AND REMEDIES: Seller or Buyer shall be in default under this Contract if either fails to comply with any material covenant, agreement or obligation within any time limits required by this Contract. Following a default by either Seller or Buyer under this Contract, the other party shall have the following remedies, subject to the provisions of the paragraph entitled "DISPOSITION OF EARNEST MONEY DEPOSIT AND OTHER FUNDS AND DOCUMENTS" in this Contract: (a) (b) If Seller defaults, Buyer may (i) specifically enforce this Contract and recover damages suffered by Buyer as a result of the delay in the acquisition of the Property; or (ii) terminate this Contract by written notice to Seller and, at Buyer's option pursue any remedy and damages available at low or in equity. If Buyer elects to terminate this Contact, the Earnest Money Deposit shall be returned to Buyer upon written demand. If Buyer defaults, Seller may terminate this Contract by written notice to Buyer and retain the Earnest Money Deposit as liquidated damages as Seller's sole remedy (the parties recognizing that it would be extremely difficult to ascertain the extent of actual damages caused by Buyer's breach, and that the Earnest Money Deposit represents as fair an approximation of such actual damages as the parties can now determine). 18. DISPOSITION OF EARNEST MONEY DEPOSIT AND OTHER FUNDS AND DOCUMENTS: The Escrow Agent shall not distribute the Earnest Money Deposit or other escrowed funds or documents, once deposited, notwithstanding any other terms of this Contract providing for forfeiture or refund of the Earnest Money Deposit, without the written consent of all parties to this Contract. A party's signature on a closing statement prepared by the Escrow or Closing Agent shall constitute such consent. In the absence of either written consent or written notice of a dispute, failure by either Buyer or Seller to respond in writing to a certified letter from the Escrow Agent within three (3) days of receipt, or failure by either Buyer or Seller to make written demand upon the other party and upon the Escrow Agent for return or forfeiture of the Earnest Money Deposit, other escrowed funds or documents within three (3) days after receiving written notice of cancellation of this Contract, shall constitute consent to the distribution of all funds and documents deposited with the Escrow Agent as suggested in any such certified letter or written demand. If a dispute arises over the disposition of funds or documents deposited with the Escrow Agent that results in litigation, any attorney's fees, court costs and other legal expenses incurred by the Escrow Agent in connection with such dispute shall be reimbursed from the Earnest Money Deposit or from other funds deposited with the Escrow Agent. 19. ENTIRE AGREEMENT AND MANNER OF MODIFICATION: This Contract, and any attachments or addenda thereto, constitute the complete agreement of the parties concerning the Property, supersede all other agreements and may be modified only by initialing changes in this Contract or by written agreement. 20. NOTICES: All notices, consents, approvals, requests, waivers, objections or other communications (collectively "notices") required under this Contract (except notice given pursuant to the paragraph entitled "DISPOSITION OF EARNEST MONEY DEPOSIT AND OTHER FUNDS AND DOCUMENTS" in this Contract) shall be in writing and shall be served by hand-delivery, by prepaid U.S. Postal Service certified mail, return receipt requested, or by reputable overnight delivery service guaranteeing next-day delivery and providing a receipt. All notices shall be addressed to the parties at the respective addresses as set Page 4 of 6

27 forth below, except that any party may, by notice in the manner provided above, change this address for all subsequent notices. Notices shall be deemed served and received upon the earlier of the third day following the date of mailing (in the case of notices mailed by certified mail) or upon delivery (in all other cases). A party's failure or refusal to accept service of a notice shall constitute delivery of the notice. IF TO SELLER: MDF PROPERTIES, LLC Attention: Dr. Robert Frost 5964 Overhill Road Mission Hills, KS 6208 IF TO BUYER: CITY OF MERRIAM Attention: Chris Engel 9001 West 62 nd Street Merriam, KS GOVERNING LAW: This Contract shall be governed and construed and enforced in accordance with the laws of the State of Kansas. 22. WAIVER: Failure of either the Seller or Buyer to exercise any right given hereunder or to insist upon strict compliance with regard to any term, condition, or covenant specified herein, shall not constitute a waiver of said party s right to exercise such right or to demand strict compliance with any term, condition, or covenant under this Contract. 23. CAPTIONS: All captions, headings, section and subsection numbers and letters are solely for reference purposes and shall not be deemed to be supplementing, limiting or otherwise varying the text of this Contract. 24. INVALID PROVISIONS: If any one or more of the provisions of this Contract, or the applicability of any such provision to a specific situation, shall be held invalid or unenforceable, such provision shall be modified to the minimum extent necessary to make it or its application valid and enforceable, and the validity and enforceability of all other provisions of this Contract and all other applications of any such provision shall not be affected thereby. 25. TIME AND EXACT PERFORMANCE ARE OF THE ESSENCE UNDER THIS CONTRACT. 26. ADDENDA: The following Addenda (riders, supplements, etc.) are attached hereto and are a part of this Contract (Check those which are applicable): [X] Exhibit A (Legal Description) [X] Commercial Agency & Brokerage Disclosure Addendum [ ] Other [ ] Other [ ] Other CAREFULLY READ THE TERMS HEREOF BEFORE SIGNING. WHEN SIGNED BY ALL PARTIES, THIS DOCUMENT BECOMES PART OF A LEGALLY BINDING CONTRACT. IF NOT UNDERSTOOD, CONSULT AN ATTORNEY BEFORE SIGNING. THE PARTIES EXECUTING THIS Page 5 of 6

28 CONTRACT REPRESENT AND WARRANT THAT THEY ARE LEGALLY AUTHORIZED TO EXECUTE THIS CONTRACT. "SELLER" "BUYER" By: Printed Name Title By: Printed Name Title EXHIBIT A EBY SUBDIVISON MERRIAM PARK LTS 4&5 BLK 44 & S ½ VAC 62 nd St LYG N & ADJ TO LTS MEC (JP ) EBY SUBDIVISION MERRIAM PARK ALL LT 6 & 7 & N 1/2 VAC LOCKWOOD AVE OR 61 st TERR ADJ TO LT 7 BLK 47 MEC 445 (JP ) Page 6 of 6

29 AGENDA ITEM INFORMATION FORM Agenda Item: Consider approval of the sale of surplus city properties generally located at 7000 West Frontage Road. Department: Administration Background/Description of Item: Richard Webb is the owner of Infiniti of Kansas City located at 6960 West Frontage Road in Merriam, Kansas. Mr. Webb also owns the majority of property located immediately to the south of Infiniti of Kansas City generally identified as "Tract B" that includes the Quail Creek drainage channel. The City of Merriam owns two parcels of surplus land totaling 0.90 acres located immediately east of Tract B between Mr. Webb's property and West Frontage Road generally identified as 7000 West Frontage Road. Exactly how the city came to own either property is unclear other than it was street frontage property with drainage / creek access that remained after the replat and sale of the Lucent Technology and KDOT right-of-way property 12 years ago. Regardless, the city property is too small to develop on its own and has no value to the city beyond access to the drainage / creek channel. Mr. Webb appeared before the City Council on March 14, 2016 to indicate interest in purchasing the two surplus parcels of city land adjacent to his and the City Council authorized staff to negotiate an agreeable and appropriate price for that purchase. Staff has negotiated a sale price of $10,000 for the two pieces of surplus city property located adjacent to Mr. Webb's. In addition to negotiating an appropriate price with Mr. Webb, staff also negotiated a permanent drainage easement to allow for continued access to the creek and/or any drainage structure should it become channelized as part of a development. The City Attorney has reviewed the attached easement and sales document. Attachments: Real Estate Contract and Drainage Easement document Related Ordinance or Statutes: n/a Recommendation: Recommend the Governing Body approve the sale of two parcels of surplus city property generally located at and near 7000 West Frontage Road, contingent on proper assignment of drainage easements, in the amount of $10,000 to include the expenditure of any associated closing costs and authorize the City Administrator to sign the associated closing documents. Prepared by: Chris Engel, City Administrator Date: February 9, 2017