MINUTES OF THE June 20, 2017 LENEXA CITY COUNCIL MEETING CITY HALL, W 87 th STREET PARKWAY LENEXA, KS CALL TO ORDER ROLL CALL
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1 MINUTES OF THE June 20, 2017 LENEXA CITY COUNCIL MEETING CITY HALL, W 87 th STREET PARKWAY LENEXA, KS CALL TO ORDER The meeting was called to order at 7:00 PM. ROLL CALL The following Councilmembers were present with Mayor Mike Boehm presiding: Joe Karlin, Steve Lemons, Stacy Knipp, Tom Nolte, Mandy Stuke. Absent: Lou Serrone, Amy Slater, Andy Huckaba. Staff present included Todd Pelham, Deputy City Administrator/Acting City Administrator; Mike Nolan, Assistant to the City Administrator; Beccy Yocham, Community Development Director; Cindy Harmison, City Attorney; Katy Crow, City Clerk; Magi Tilton, Planning and Development Administrator; Doug Robinson, Chief Financial Officer; Denise Rendina, Communications Manager; Nick Arena, Municipal Services Director; and other City Staff. APPROVE MINUTES A motion to approve the minutes of the June 6, 2017 City Council meeting was made and seconded. Motion passed unanimously. MODIFICATION OF AGENDA The agenda was modified to add the following item to New Business: a resolution consenting to refinancing of a mortgage on the EdgeWater multi-family housing project financed with industrial revenue bonds. Copies of the packet memo and resolution were provided to each Governing Body member. CONSENT AGENDA 1. Resolution amending the Capital Improvement Program to adjust the budget for construction of the 89th Street & Penrose Amenity Zone Project This resolution amends the Capital Improvement Program to adjust the budget for the construction of the 89th Street & Penrose Amenity Zone Project so that
2 a bid may be awarded. The Project will construct, in two phases, the typical City Center Amenity zone, including sidewalks, brick pavers, landscaping, stormwater treatment facilities and certain areas of parking along both sides of Penrose/89th Street from 87th Street Parkway to approximately Hampton Street. The contract amount is $1,095, Bid Award for construction of the 89th Street and Penrose Amenity Zone Project to Mega Industries This awards the bid for construction of the 89th Street and Penrose Amenity Zone Project to Mega Industries. The Project will construct, in two phases, the typical City Center Amenity zone, including sidewalks, brick pavers, landscaping, stormwater treatment facilities and certain areas of parking along both sides of Penrose/89th Street from 87th Street Parkway to approximately Hampton Street. The bid amount is $1,095, Resolution authorizing the Mayor to execute a 12-month Lease Agreement (includes guaranteed buyback) with KC Bobcat for seven (7) skid steer loaders for the Parks and Recreation and Municipal Services Departments Execute a 12-month lease agreement with KC Bobcat for seven (7) skid steer loaders with an initial cost of $309, At the end of the 12-month lease period, KC Bobcat will buy back the seven (7) skid steer loaders at a guaranteed price of $271, The City of Lenexa s total investment for the 12-month lease period for seven (7) skid steer loaders will be $38, The skid steer machines are used by the Parks and Recreation and Municipal Services Departments. 4. Resolution authorizing the Mayor to execute an enterprise software licensing agreement with Microsoft for enterprise software and support services This is a renewal of the City's enterprise software licensing agreement with Microsoft for enterprise software products such as Microsoft Office, Microsoft Exchange, and Microsoft SharePoint. This is a 36-month agreement, subject to annual appropriation, at fixed rate of $199, per year ($599, total) based on current license volume. 5. Resolution authorizing the Mayor to enter into an agreement with All City Management Services for school crossing guard services for school year Each year the City contracts with an outside entity to provide school crossing guard services. This agreement secures these services for the school year.
3 6. Resolution authorizing the Mayor to enter into the Ambulance Transport Agreement Addendum No. 1 with the Johnson County Board of Commissioners This Addendum updates the 2009 Ambulance Transport Agreement with Med-Act to reflect the parties' agreement to adhere to current best practices on EMS incident response times. 7. Acceptance for Maintenance - Canyon Farms Golf Clubhouse - 87th Street and Lennox Signal Improvements This project constructed signal improvements to the existing signal located at 87th Street and Lennox. The improvements included installing traffic signal detection loops, converting green yield signal heads to yellow flashing arrow heads along with modifications to the traffic signal controller. 8. Resolution amending Resolution and the associated Payment In Lieu of Taxes Agreement extending the time to issue industrial revenue bonds by an additional sixty days. (Lackman Business Park Building E) On April 19, 2016 the City issued its resolution of intent (Resolution ) to issue approximately $2,000,000 in IRBs for the acquisition and construction of an office/warehouse facility referred to as Building E, located on Lot 8 of the Lackman Business Center. Resolution expires on June 30, Although the project was recently completed, the parties desire to extend the effective date of Resolution until August 31, 2017 to allow sufficient time to complete the Bond issue. The resolution also approves and authorizes the Mayor to execute an amended PILOT Agreement to include this same 60-day extension to issue Bonds. 9. Resolution approving a Third Addendum to the Property Conveyance Agreement with the Johnson County Library This Third Addendum to Property Conveyance Agreement addresses a few remaining items required before the Library closes on the property at the Civic Campus. The Addendum (1) sets out a process whereby the City and Library will coordinate construction of the south Lower Commons stairway to avoid tearing out City construction with the Library construction; (2) grants an encroachment to the Library for several roof overhangs; (3) grants an encroachment to the City for a grade beam and pier associated with the parking garage and located within the property to be conveyed to the Library; and (4) removes the Shared Parking & Property Maintenance Agreement approved as part of the Second Addendum so that it is a separate "stand alone" agreement.
4 10. Resolution approving a Shared Parking & Property Maintenance Agreement with the Johnson County Library Board The City approved a Shared Parking & Maintenance Agreement with the Library as part of the Second Addendum to the Property Conveyance Agreement but because the Parking & Maintenance Agreement deals with ongoing operations and will extend long after the parties close on the Library property, staff felt it made sense to separate the agreement from the Property Conveyance Agreement. The only substantive changes added to the agreement are to increase the annual fee from $15,750 to $17,100 and to allow the Library to use the trash dumpsters in the loading dock for an additional fee to the City. 11. Ordinance amending Lenexa City Code Section of the 2015 Edition of the Standard Traffic Ordinance, as incorporated by reference in Section 3-8-A-1, and repealing the existing Section The City incorporates by reference the Standard Traffic Ordinance for Kansas Cities (STO) on a regular basis to stay current with changes in the law. The latest version incorporated was the 2015 edition, incorporated by the City on October 6, This Ordinance will amend the 2015 edition of the STO, specifically section concerning seat belts, to reflect changes made to seatbelt laws during the 2017 Legislative Session. 12. Resolution authorizing the Mayor to consent to the enlargement of the Consolidated Main Sewer District of Johnson County on property located north of the intersection of 96th Street and Lone Elm Road This resolution consents to the enlargement of the Consolidated Main Sewer District of Johnson County within the City. The enlargement of the sewer district is necessary to serve the Timber Rock subdivision located north of the intersection of 96th Street and Lone Elm Road. 13. Resolution granting a permanent utility easement to Kansas City Power & Light Company in Lenexa City Center The proposed permanent Kansas City Power & Light easement is located at the northwest corner of 88th Street and Penrose and will allow installation of new conduit and electrical equipment to serve the proposed development. 14. Acceptance of dedication of land for public purposes of the final plat for The Enclave at Highland Crest located in the vicinity south of 101st Street between Theden Circle
5 and Sunset Drive PT17-12F This grants the City right-of-way and easements as shown on the final plat for The Enclave at Highland Crest. 15. Acceptance of dedication of land for public purposes of the final plat for Prairie Creek, Seventh Plat, located north of Prairie Star Parkway and west of Britton Street PT17-13F This grants the City easements as shown on the final plat for Prairie Creek Townhomes. 16. Acceptance of dedication of land for public purposes on the final plat for Pine Ridge West Business Park, Seventh Plat, located at 8250 Flint Street PT17-14F This dedicates to the City right-of-way as shown on the final plat for Pine Ridge West Business Park, Seventh Plat. 17. Acceptance of dedication of land for public purposes of the final plat for WaterSide Residences on Quivira, Third Plat, located at the southeast corner of 81st Street and Quivira Road PT17-09F This grants the City easements as shown on the final plat for WaterSide Residences on Quivira, Third Plat. END OF CONSENT AGENDA A motion to approve items 1 through 17 on the consent agenda was made by Councilmember Knipp, seconded by Councilmember Karlin. Motion passed unanimously. BOARD RECOMMENDATIONS 18. An ordinance granting a ten-year Special Use Permit for Laura Jones Daycare, located at West 81st Street SU17-05 An ordinance granting a ten-year special use permit renewal to allow an in-home daycare under the general category, providing care for 7 to 12 individuals.
6 Ms. Tilton presented information on this item. No one spoke at Planning Commission Public Hearing on June 5 and the Planning Commission recommended approval. The applicant, Laura Jones W. 81st Street, was present and stepped forward to offer comments. Ms. Jones stated she did not receive a receipt for the Special Use Permit fees she was required to pay. She requested the Governing Body consider the timing of when renewal notifications are sent out. Ms. Jones stated she only had 12 days notice prior to renewal notification and the renewal fee and mailing fees created a financial hardship. She stated other municipalities do not charge a fee for a Special Use Permit and requested information on where her money was being utilized. She requested that Lenexa officials be cognizant of small business owners and how fees impact their livelihood. Ms. Yocham responded that a receipt would be provided to Ms. Jones and she addressed the use of Special Use Permit fees. Approximately ten years ago, at the request of day care providers at the time, Lenexa increased the time frame between permit renewals. Due to the longer length of time between renewals, applications go through a more extensive review because they are done less often. Fees are used to help cover increased staff costs. Ms. Yocham apologized that more notice was not given and will look into it with Community Development staff. Mayor Boehm thanked Ms. Jones for her feedback. Councilmember Karlin asked if the application fee of $350 is the same regardless of the permit duration. Ms. Yocham responded that it is. A motion to approve Item 18 was made by Councilmember Stuke, seconded by Councilmember Lemons. Motion passed unanimously. 19. An ordinance approving a Special Use Permit for Brazil Academy, located at Strang Line. SU An ordinance approving a Special Use Permit to allow Personal Instruction, General (martial arts/dance instruction and training for adults and children) in the BP-1 zoning district. Ms. Tilton presented information regarding this application stating that the Golden Criteria were utilized to evaluate the permit request and allowing this use will not negatively impact the surrounding property. At the June 5 Planning Commission meeting no one spoke at the Public Hearing and the Planning Commission recommended approval. The applicant, Luis Pinto, was present. There were no questions. A motion to approve Item 19 was made by Councilmember Karlin, seconded by Councilmember Nolte. Motion passed unanimously.
7 20. North Reserve Park at the Lenexa City Center. CONTINUED FROM THE MAY 16, 2017 CITY COUNCIL MEETING a. An ordinance approving a permanent Special Use Permit for North Reserve Park at the Lenexa City Center to allow single family homes within the CC, Planned City Center Zoning District SU17-04 b. Revised Final Plan for North Reserve Park at the Lenexa City Center PL17-01FR c. Acceptance and dedication of land for public purposes as shown on the Final Plat for North Reserve Park at the Lenexa City Center PT17-08F This request consists of three action items: a Special Use Permit to allow single-family detached residences in the CC, Planned City Center Zoning District; a Revised Final Plan showing the proposed improvements to the property including areas of common open space and the architecture of the proposed single-family residences; and granting to the City utility and drainage easements as shown on the Final Plat for North Reserve Park. The subject property is located at the northwesterly quadrant of Penrose Lane and Elmridge Street in City Center North. Ms. Tilton gave the presentation on this item which was continued from the May 16, 2017 City Council meeting to allow the developer to review architectural and off-street parking concerns. The developer has worked with their architect to add dormers to break up the long roof expanse, increased the prominence of gabled roofs, and shown greater use of colors and materials to avoid monotony. The applicant, Jessica Spaulding, was present along with Josh Harrold and James Pfeiffer from BNIM, the architects on the project. Councilmember Karlin inquired about the homes being detached versus attached. Ms. Spaulding represented that they did explore that option but they felt it was important to bring down the density and have detached, single-family homes with a smaller footprint. Councilmember Karlin requested clarification about the homes being rented or owned and what the square footage and pricing might be. Ms. Spaulding stated the homes would be owned, and approximately 2500 square feet with options for basements for additional space. Pricing would be just under $500,000. Councilmember Karlin asked whether the alley way (Central Drive) would be city owned or private. Ms. Spaulding stated it would be privately-owned and developer-maintained. Councilmember Knipp inquired as to how residents would choose exterior paint colors. Ms. Spaulding stated they would have guided paint choices. Councilmember Stuke inquired about the parking resolution. Ms. Spaulding stated that
8 each driveway will have room for two cars to park and green space has been alleviated to accommodate six guest parking spaces. A motion to approve Item 20a was made by Councilmember Knipp, seconded by Councilmember Lemons. Motion passed unanimously. A motion to approve Item 20b was made by Councilmember Nolte, seconded by Karlin. Motion passed unanimously. A motion to approve Item 20c was made by Councilmember Stuke, seconded by Councilmember Knipp. Motion passed unanimously. At this time, Mayor Boehm asked Cub Scouts in the audience to introduce themselves. Cooper Ott of Troop 181 was present and stated he was working on his Citizenship in the Community badge. PUBLIC HEARINGS 21. Industrial Revenue Bond Issue and Tax Abatement (Pineridge West Business Park - Building 31) a. Public hearing to consider an exemption from ad valorem taxes for property financed with industrial revenue bonds (IRBs) b. Resolution determining the intent of the City to issue up to $13,200,000 in IRBs and approving a ten-year tax abatement with Payment in Lieu of Taxes (PILOT) agreement The City received an application from PERG Buildings, LLC and SSOP, LLC as tenants in common (the "Applicant") requesting the City issue its IRBs in an amount not to exceed $13,200,000 to finance the acquisition, construction and equipping of its approximately 58,000 square foot commercial office building located at the northeast corner of Flint & W. 83rd St. in Pineridge West Business Park. This project will complete the buildout of this business park. The Applicant has also requested a ten (10) year, 55% tax abatement for the project. Pursuant to State law, the City must hold a public hearing to consider the cost benefit analysis and the granting of a tax abatement for the project. Mr. Robinson made the staff presentation on this item. He has performed a cost-benefit analysis and there is a positive net benefit. These bonds are not backed by the full faith and credit of the city and the applicant is responsible for bond payback and all fees associated with the project. There was a slight change to the PILOT agreement included in the packet and it has been corrected to show the owners and their ownership interest amounts. The applicant was present for any questions.
9 Mayor Boehm opened the Public Hearing. There were no comments from the public. There was no further discussion on this item. A motion to close the Public Hearing made by Councilmember Karlin, seconded by Councilmember Nolte. Motion passed unanimously. A motion to approve Item 21b was made by Councilmember Knipp, seconded by Councilmember Lemons. Motion passed unanimously. NEW BUSINESS 22. Resolution authorizing the City Administrator to execute a lease agreement with CI Concept Companies, LLC d/b/a Chewology for space in the Lenexa Public Market This resolution will authorize the City Administrator to execute a lease agreement with CI Concept Companies, LLC d/b/a Chewology for space in the Lenexa Public Market for an initial term of three years Mr. Nolan presented details on this item. The entity will be located in the Lenexa Public Market and occupy the last available kitchen space on the Market floor. Mr. Nolan introduced Public Market Manager Carmen Chopp who introduced Katie Liu- Sung, applicant and owner of Chewology. Ms. Liu-Sung expressed excitement at the opportunity to bring her concept to Lenexa. Mayor Boehm inquired as to whether the applicant had an existing space. Ms. Liu- Sung stated that this will be the first space for them. A motion to approve Item 22 was made by Councilmember Knipp, seconded by Councilmember Karlin. Motion passed unanimously. 23. Resolution consenting to refinancing of a mortgage in connection with a project financed with industrial revenue bonds The City issued its industrial revenue bonds for this multi-family residential housing project in December The owner previously secured a mortgage on the project as part of its construction financing with BOKF, N.A. and is moving to permanent financing with Northwestern Mutual Life Insurance Company. In accordance with the bond documents, the owner must obtain City consent prior to assigning or mortgaging its interest in the project. This resolution grants City consent for the owner to enter into a mortgage with the new lender. Ms. Harmison presented information on this item and thanked the Governing Body for hearing the matter as New Business as it is time sensitive. As part of the bond
10 documents issued in December, the city is required to consent to assignment of the mortgage. The applicant is closing on their mortgage later in the week thus the time sensitivity of the matter. Staff recommends approval. A motion to approve Item 23 was made by Councilmember Lemons, seconded by Councilmember Knipp. Motion passed unanimously. There was no business from the floor. There were no councilmember reports. BUSINESS FROM FLOOR COUNCILMEMBER REPORTS STAFF REPORTS A legislative update was provided by Dr. Stuart Little on the Kansas budget, education funding and the tax lid. He thanked the Governing Body for the opportunity to work on the common consumption bill (HB 2277) which was signed into law on June 7. Mr. Robinson provided an update on the final property assessment received back from Johnson County. Staff numbers were very close to what was expected and the proposed 2018 budget will be minimally impacted. Ms. Rendina and Ms. Yocham provided details on the "September to Remember" celebration that is being planned to commemorate the grand opening of the new Civic Center. Mr. Arena reported on the storm damage Lenexa impacting Lenexa residents on the evening of June 17. Mr. Pelham provided an update on the closing of the baby pool at Ad Astra due to damage sustained in the off season. Ms. Crow provided a list of upcoming City events the Governing Body may want to attend or register for. EXECUTIVE SESSION 27. Executive Session to Discuss Acquisition of Real Property and a Potential Litigation Matter Subject to the Attorney-Client Privilege At 8:42 PM Mayor Boehm called for a motion to recess into Executive Session to discuss the acquisition of real property and potential litigation subject to the attorney client privilege for 15 minutes with the following staff members present: Deputy City Administrator Todd Pelham; City Attorney Cindy Harmison; Community Development Director Beccy Yocham; Deputy Community Development Director Tim Green; and Assistant City Attorney Sean McLaughlin. A motion to recess into Executive Session was made by Councilmember Stuke, seconded by Councilmember Karlin. Motion passed unanimously.
11 At 8:58 PM the Governing Body reconvened into the regular meeting. No votes were taken and no decisions were made during the Executive Session. ADJOURN A motion to adjourn was made by Councilmember Nolte, seconded by Councilmember Lemons. Motion passed unanimously. Meeting adjourned at 8:58 PM. /s/ Katy Crow, City Clerk
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