February 19, 2008      

The Board of Commissioners of the City of Lawrence met in regular session at 6:35 p.m., in the City Commission Chambers in City Hall with Mayor Hack presiding and members Amyx, Dever, Chestnut and Highberger present.

RECOGNITION/PROCLAMATION/PRESENTATION:                                     

With Commission approval Mayor Hack recognized Mr. Brad Shuck for rescuing a resident from a burning home on Monday, February 11, 2008.

CONSENT AGENDA

               As part of the consent agenda, it was moved by Highberger, seconded by Amyx, to approve the City Commission meeting minutes of February 5, 2008.  Motion carried unanimously.
               As part of the consent agenda, it was moved by Highberger, seconded by Amyx, to receive the Public Health Board meeting minutes of December 17, 2007; and the Destination Management Inc. meeting minutes of January 20, 2008.  Motion carried unanimously.
               As part of the consent agenda, it was moved by Highberger, seconded by Amyx, to approve claims to 451 vendors in the amount of $2,938,770.18 and payroll from February 3, 2008 to February 16, 2008, in the amount of $1,791,935.77.  Motion carried unanimously.

As part of the consent agenda, it was moved by Highberger, seconded by Amyx, to approve Drinking Establishment License for El Mezcal Mexican Restaurant II, 804 Iowa; and Shenago Lounge, 1520-D Wakarusa Drive.  Motion carried unanimously.

As part of the consent agenda, it was moved by Highberger, seconded by Amyx, to approve the purchase of one track loader for Public Works/Stormwater Division from Murphy Tractor & Equipment Co. off the H-GAC cooperative contract in the amount of $161,850.58 less trade - $16,850, for a total loader price of $145,000.58.  Motion carried unanimously.         (1)

The City Commission reviewed the bids for twelve Crown Victoria police cars for the Police Department.  The bids were:

                  BIDDER                                                          BID AMOUNT           

                  Shawnee Mission Ford                                   $261,396

                  Olathe Ford                                                     $263,568

                  Laird Noller Automotive                                   $264,900

 

As part of the consent agenda, it was moved by Highberger, seconded by Amyx, to award the bid to Shawnee Mission Ford, in the amount of $261,396.  Motion carried unanimously.                                                                                                                                 (2)

As part of the consent agenda, it was moved by Highberger, seconded by Amyx, to authorize a purchase order for $16,539.30 to GE Fanuc intelligent Platforms, Inc., c/o Industrial Network Systems, to continue the use of the City’s use of Intellution Software maintenance for the period of March 1, 2008 to March 1, 2009, used by the Utilities Department.   Motion carried unanimously.                                                                                                                                (3)

The City Commission reviewed the bids for K-10 and O’Connell Road, Eastbound Right Turn Lane, Geometric and waterline Improvements, and K-10 and O’Connell Road, Westbound Left Turn Lane, State Highway Improvements for the Public Works Department.  The bids were:

                  BIDDER                                                          BID AMOUNT           

                  Engineer’s Estimate                                       $304,355.00

                  LRM Industries, Inc.                                        $336,396.70

                  R.D. Johnson Excavating                               $362,879.98

 

As part of the consent agenda, it was moved by Highberger, seconded by Amyx, to waive the engineer’s estimate award the bid to LRM Industries, in the amount of $336,396.70.  Motion carried unanimously.                                                                                                          (4)

Ordinance No. 8057, rezoning (Z-06-15-06) approximately .85 acres from RS7 (Single-Dwelling Residential) to PRD (Planned Residential Development), located at 1511 Haskell Avenue, known as Hanscom-Tappan Addition III, was read a second time.  As part of the consent agenda, it was moved by Highberger, seconded by Amyx, to adopt this ordinance.  Aye: Hack, Dever, Amyx, Highberger, Chestnut.  Nay:  None.  Motion carried unanimously.    (5)

Ordinance No. 8231, providing for the annexation (A-04-03-07) of approximately 40 acres of City owned property located north of Folks Road extended and south of Interstate 70, for the remaining property of Pump Station No. 48, was read a second time.  As part of the consent agenda, it was moved by Highberger, seconded by Amyx, to adopt this ordinance.  Aye: Hack, Dever, Amyx, Highberger, Chestnut.  Nay:  None.  Motion carried unanimously.   (6)

Ordinance No. 8223, rezoning (Z-07-13-07) a tract of land approximately .746 acres, from CN1 (Inner Neighborhood Commercial) and RM32 (Multi-Dwelling Residential) to PCD-2 (Planned Commercial Development), located at 618 West 12th Street, was read a second time.  As part of the consent agenda, it was moved by Highberger, seconded by Amyx, to adopt this ordinance.  Aye: Hack, Dever, Amyx, Highberger, Chestnut.  Nay:  None.  Motion carried unanimously.                                                                                                                                 (7)

Ordinance No. 8234, establishing the Oread redevelopment district, was read a second time.  As part of the consent agenda, it was moved by Highberger, seconded by Amyx, to adopt this ordinance.  Aye: Hack, Dever, Amyx, Highberger, Chestnut.  Nay:  None.  Motion carried unanimously.                                                                                                                        (8)

As part of the consent agenda, it was moved by Highberger, seconded by Amyx, to approve agreement for services between the City of Lawrence and Destination Management, Inc. to operate the Lawrence Convention and Visitors Bureau.  Motion carried unanimously.   (9)

As part of the consent agenda, it was moved by Highberger, seconded by Amyx, to authorize the City Manager to execute agreement for the Use of City Funds with Downtown Lawrence, Inc.  Motion carried unanimously.                                                                               (10)

As part of the consent agenda, it was moved by Highberger, seconded by Amyx, to authorize Planning staff to issue a Request for Proposals (R08005) for a consultant to provide on-call travel demand modeling support for the Transportation Planning staff in 2008 and 2009.  Motion carried unanimously.                                                                                                             (11)

As part of the consent agenda, it was moved by Highberger, seconded by Amyx, to authorize the Mayor to sign a Subordination Agreement for Brian and Heather Bigham, 1713 Atherton Court.  Motion carried unanimously.                                                                    (12)

CITY MANAGER’S REPORT:

During the City Manager’s Report, David Corliss said Overland Park citizens had recently renewed a 1/8 cent sales tax for streets.  He thought that would be of interest given the City Commission’s discussion, in the past months, about a street maintenance sales tax.  The City Commission would be talking about the street maintenance program in the coming weeks for this year.  In the information provided, 75% of the voters that participated with the mail-in ballot approved the renewal of that sales tax.  Overland Park’s sales tax was higher than the sales tax currently in Lawrence.  He said Chuck Soules, Public Works Director, pointed out that Overland Park’s micro-surfacing contract was $8 million, which was more than Lawrence’s entire program, Overland Park was a much larger city, but counterbalancing that was that their streets were not as old. 

The 2007 Eagle Bend Report on expenditures and revenue was also in the report.  Not counting the debt service, Eagle Bend brought in more revenue than operating expenses close to $150,000.  It did not include the debt service of close to $300,000.  There were also some programmatic changes staff would proceed with as well.  The first couple of months had not been favorable to anything outside, including golf.  Eagle Bend was watching their expenditures closely because their revenue was thin the first few weeks of the year.

Also, the park land below the Clinton Lake Dam that was leased by the City from the Corps of Engineers, as part of that lease, the City maintained park roads, except the road that ran along the base of the dam.  He said that main purpose of that road was to provide access to City operations.  The Corp had received federal funding to improve and widen that road in 2008.  As a condition of the funding, all future road maintenance of that road would become the responsibility of the City

            He said the City did not receive any KDOT funding for the geometric improvements or economic development projects the City had submitted which was disappointing.  He said what was incredibly disheartening was that KDOT did not have the funds they once had for sharing in those types of projects.  A person could not drive anywhere in this community where the City had not benefited from KDOT’s geometric or state transportation program funding.  KDOT indicated to staff to back off on submitting on that traditional 5 year surface transportation program project the City had.  He said that funding source was not available and staff did not see that funding source coming back anytime in the future.  He said that meant the City would not be able to do those types of projects, or would have to do those types of projects locally.  There had been that kind of forecast from KDOT in the past, but when seeing statewide that only two projects were selected for a total of $1.2 million, it was not enough money to do substantial road projects. 

He said there were discussions at the state level regarding a new surface transportation program, but KDOT was not anticipating any action this year and it might be an item in a non election year, such as 2009.  In many cases those were multi year efforts in order to enact a new plan.  He said the state had indicated they did not have, under their current revenue base, the ability to really do anything more substantial than just basic maintenance to their state highway system. 

            Mayor Hack asked about the timetable on the next Comprehensive Transportation Plan.

            Corliss said the state talked about making service purchases in 2009, but it was not likely to happen in an election year and did not need to happen this year.  He said his observation was that it took a strong push, if talking about new revenue sources.  When tying a revenue source to a gallonage tax and the gallonage was not increasing, but the costs were significantly increasing, there was not an escalating revenue source.  The City shared in that revenue, but the City’s gas tax revenue had not been escalating, certainly not with the cost.  He said the City Commission had seen some road projects where the bids had not been as high and it might be that road costs were not going to continue to escalate, but the oil and gas component into road construction was significant and that did not seem to be moderating.  Next year the Commission might be seeing movement, but state legislatures were hearing from their constituents what they were hearing from their constituents in Lawrence that they were not looking for new tax increases.           

Commissioner Chestnut said regarding Eagle Bend, that revenue number was much better than it had been in years past.  He said that revenue was in an enterprise fund and the bonds were in the bond and interest funds, he asked what would happen to that $148,000 surplus.

Corliss said that money would stay in that fund and would not be spent and that money would be used judiciously and the money might be used to buy equipment, depending upon what happened through the rest of the year.                                                                                 (13)

REGULAR AGENDA ITEMS:

Discussion and direction on drinking establishment – entertainment venue public safety issues.

 

David Corliss, City Manager, said a general discussion took place last year about whether the City Commission had interest in proceeding with some type of additional, local legislation that might be a better tool to respond to public safety issues the City had been experiencing regarding entertainment venues and drinking establishments. 

The State of Kansas, through the Alcohol Beverage Control Division of the Department of Revenue, licensed drinking establishments.  The City of Lawrence had approximately 120 drinking establishments.  Drinking establishments ranged from establishments that were considered bars and taverns to the Applebee’s and Pizza Hut’s that had the ability to sell alcohol above 3.2% consumption.  There were also cereal malt beverage establishments which required local licensing, following state law as well. 

In the 1990’s, there were similar experiences regarding public safety concerns with some establishments in the community.  At that time, the law was not necessarily disfavorable toward local regulation regarding drinking establishments.  Therefore, the City adopted ordinances that provided for conditional local licensing of drinking establishments where the City was able to place conditions on some drinking establishments after going through a process that allowed for those applicants to participate in those decisions.  Since that time, the law was changed or clarified and it was clear to Lawrence City attorneys and municipal attorneys throughout the state, that Kansas cities did not have the ability to separately license and regulate drinking establishments as far as putting conditions on the license or revoking the license and stopping that establishment from operating.  The City did approve the local license, but it was the City’s legal opinion that the state license trumped the ability to license those establishments.  There were court decisions out of Wichita regarding what they were trying to do concerning drinking establishment licenses and that was essentially the conclusion of that Kansas Supreme Court decision.  He said there were some code provisions in the City Code that were not active law in the sense of the City’s ability to establish nuisance type regulations on drinking establishments. 

The City had pursued license revocation before the Alcohol Beverage Control Division.  The City of Lawrence essentially got the law created that allowed for cities and/or counties to ask for a special hearing before ABC if believing it was appropriate to present evidence, which was done in the late 1990’s.  He said that law was exercised recently for the drinking establishment license for Last Call.  He said Scott Miller, Staff Attorney with the City, who was primarily assigned to work with the Police Department, presented evidence to ABC regarding some of the public safety concerns the City had with Last Call. 

The ABC Director issued an Order that denied the renewal of Last Call’s license, which was the subject of litigation.  Also, the establishment continued to operate because they were allowed to continue as a business, but not as a drinking establishment, with bring your own beer or alcohol.  It was understood by staff, with some communications with the business owner and had been publicly advertised as well, that Last Call would not operate anymore.  He said he understood there was nothing in the law to prohibit that business owner from seeking another license from ABC to operate at that location or probably anywhere else in the community.

He said regarding the public safety concerns, the City Commission asked staff to give options regarding what local legislation the City might want to pursue and staff came up with two different, but somewhat related, options.  He said both options could be pursued, one or the other, or obviously not pursue any of those options. 

One option was to establish a special use permit requirement for drinking establishments in the City’s Land Use Code which would be through the traditional land use regulations.  The City Commission would have the ability to establish special requirements on a particular location. 

Also, an entertainment venue licensing regulation had been discussed which regardless of whether the establishment sold alcohol, the City Commission would have the ability to license and condition licensing and revoking licenses of establishments that offer entertainment of certain capacities of crowds and those type of things.  He said staff did not think they completely vetted those ordinances as far as public discussion or spent anytime working with interested stakeholders on the ordinance.

He said Commissioner Amyx had been in contact with an interested citizen regarding a licensing ordinance that would license a number of other businesses in the community and then if there was a nuisance situation with that type of establishment, there would be a method of revoking that license for that business, which was another alternative that could be explored and examined. 

He said this issue needed to be discussed as far as what were the expectations for City staff and the City Commission as far as dealing with outside nuisance issues associated with establishments.  One clear issue that came from the ABC ruling was their focus on what happened inside the premises.  Most of the problems the City heard complaints about had not been about interior conduct, but about incidents that happened outside the establishment.  The establishment owner would kick out the disruptive patron and the owner thought they were absolved of any responsibility making that disruptive patron, the responsibility of the community.  He said the real issue was if the establishment also had some responsibility, as well, for that situation.  He was familiar with a number of those complaints in dealing with this type of issue in any number of places around the community, outside on the public right-of-way or in the private parking lot.  He said it was a very fair question and a lot of people interested in this issue had discussed where to draw that line and at some point, judgment needed to be exercised in looking at the situation. 

He said this community would have this type of situation occur perhaps infrequently, but when situations did occur, there seemed to be one common theme which was the consistent concern about public safety around the establishment.  He said he was looking for the best tool to advise the City Commission.  The best tool had objectivity and treated isolated situations in a gentle manner, but for consistent public safety problems, had the ability to respond with some element of speed and certainty.  He said in his opinion that meant the City Commission needed to rely on their ability to look at the license and whether or not there was a threat to public safety.  A lot of the details had to be worked out on that issue.  The City could rely on others or ABC, nuisance actions in civil court or criminal court.  It might be a good vehicle as well, but could take a long period of time to have those types of actions.  

He asked the City Commission what standard they wanted and the expectations.  In any community there would be disruptive behavior or situations where it was un-neighborly, but staff dealt with that type of issue fairly effectively.  The consistent problems that were threats to public safety were where the Commission might want an additional tool.  The process also needed to be discussed and come up with the right tool.    

Scott Miller, Staff Attorney, said he would address limitations with the nuisance procedure because there were at least four different types of nuisance actions toward a business that was operating illegally in some way or another.  

One type of nuisance action was the public nuisance statute that was found in the criminal code which was a Class E misdemeanor, meaning if someone was convicted the maximum penalty to that offense was up to 30 days in jail and up to a $500 fine.  The only problem was in many circumstances, when talking about businesses that were organized as corporations, corporations could be prosecuted, and when corporations were prosecuted, there was no one to put in jail.  Essentially for the criminal code, when talking about a public nuisance which was anything that was injurious to the health, safety or welfare of the public, they were dealing with a possible fine of $500 per prosecution or per instance for a business.  The criminal law was not set up to shut a business down, but was meant to punish criminal conduct. 

Another option would be the nuisance action that was found in Chapter 41, of the State of Kansas liquor laws.  That law had limitations as well even though it was a very powerful statute when it applied.  The nuisance action in Chapter 41, allowed a premises once declared to be a nuisance, to be padlocked and no one could use the premises once declared a nuisance.  The problem with that series of statutes was that it only applied to violations dealing with the dispensing or the drinking of liquor.  If an individual was constantly and chronically selling liquor illegally, in some fashion, and otherwise violating the liquor laws of the State of Kansas, it would be a very good tool.  It was not what was being discussed in the majority of the situations they had been facing recently. 

The third option would be the nuisance statutes that were found in Chapter 22.  Those statutes could be colloquially termed the “crack house statutes” because they were enacted for controlled substances, organized gang activity, when some place was being used for the purpose of advancing the gang activity.  Violating the statute could result in leased premises being vacated and the person being evicted or the padlocking of the premises.  The facts had to be, for instance, applied to controlled substances and not be involved with street violence or other problems an organization or business might create.

The fourth nuisance action was a civil action for public nuisance.  It had limitations because of the length of time it took.  Anyone experienced in civil litigation would tell you that the discovery process from the time a petition was filed to the time the case was fully litigated, would take a couple of years.  Public nuisance actions could be filed by independent members of the public that were affected, but anyone could expect a two year, lag time before the case ever made it to trial and then whether or not something fell into the definition of a nuisance depended on the judge or jury hearing the case on that date.  There was a lot of build up and not a whole lot of certainty to the process.  He said that was the idea of some sort of licensing statute or criminal prosecution statute that Commission Amyx proposed, where those ideas had some appeal because the ordinance that could be crafted could set forth specific standards of conduct that needed to be violated for the ordinance to be triggered.  They would have a little bit more precise definition other than the condition that was injurious to the health, safety or welfare of the public.   He said there were a lot of ways to go about doing that.  One way would be licensing entertainment venues.  He spent a lot of time drafting ordinances on entertainment venue licensing and those ordinances could be drafted in any number of ways.  The City could step farther and not just license entertainment venues, but any business in the City that was having a problem like this.  There were cities that had a general business license, which had some advantages and disadvantages as well because any time creating an administrative procedure that applied to any business in the community, they were talking about an increase in administrative overhead and increased burden for business.  None of those actions were without cost. 

The proposal that Commissioner Amyx proposed to adopt the disorderly house nuisance ordinance to a situation like this was an interesting proposal.  It would result in criminal prosecution of the individuals who were in circumstances that were currently being discussed, but the problem was that he did not know any other city that used the disorderly house nuisance ordinance to abate the problem, and once again they would be plowing new ground.  Staff would need to do quite a bit of work to make certain it applied to just the things the City Commission wanted it to apply to as opposed to other things.  He said John Miller, Staff attorney, would probably be better to talk about the land use planning aspects, but there was a wide variety of ways an issue like this could be addressed, but there were a bunch of policy decisions that had to be made in order to craft any sort of legislation and make it effective toward the harms the City was trying to regulate against.  He said if he were to draft an ordinance, he would like some fairly explicit direction in what the City Commission was interested in.

John Miller, Staff Attorney, said another option would be making modifications to the development code and to address the issue from a land use perspective, which would be to use a Special Use Permit (SUP) process and look at the public safety and other concerns that might exist from licensed premises as currently defined in the code and to address some of the issues from that perspective.  The City might need to look at doing both things and look at some type of licensing separate from what the drinking establishment licensing and to look at ways to regulate the land use from a special use permit position. 

He said what staff presented to the City Commission and what they discussed several months ago were basic draft ordinances as one way to approach the issue.  Special Use Permits, in this circumstance, were allowed by statute and he mentioned K.S.A. 12-755(a).  There were not a tremendous amount of cities in the State of Kansas that use the SUP, but there were some cities in the state that use SUP’s for licensed places or drinking establishments in a variety of fashions.

The unified government had provisions that dealt with Special Use Permits and license permits along with the City of Mission and City of Overland Park.  When staff was conducting the research on this issue, there were at least three communities in the region that used this SUP tool to try and help regulate some of the concerns from the land use perspective and the safety perspective on this issue.  How the other cities used the SUP was somewhat different than the City’s draft ordinance, but was a tool used and how the City would want to use the SUP was something they would ask direction from the City Commission on. 

Mayor Hack asked Miller to explain the grandfathering clause that would apply to special use permits. 

John Miller said in the draft ordinance a legal non-conforming use timeframe, an amortization period, or a phasing period was not created.  He said from the presentation of the ordinance, he wanted to give the flexibility to the City Commission in terms of how the Commission wanted to proceed.  A variety of options could be looked at in terms of how a special use ordinance would affect current licensed establishments.  They could go from a very strict provision where they might not allow much in terms of a phasing period or could look at ways in which they thought it might be beneficial to the bars and restaurant owners and also address the concerns of the City Commission. 

He said when asking how staff would deal with the legal non-conforming use issue, some of that was a policy question, but not entirely. There might be other issues in terms of restructuring.  

Commissioner Amyx said regarding Section 5(e) which stated:

“No Licensed Premises shall be granted non-conforming use status upon the adoption of this section and any non-conformity shall not be continued in accordance with the provisions of this article.” 

 

He asked if this ordinance was written in the strictest form it could be.

John Miller said yes. 

Commissioner Amyx asked if the ordinance would not allow for a legal non-conforming use and granting legal non-conforming use approval would be determined by the City Commission.

John Miller said correct, as this draft was written.  The current provision in the development code that discussed legal non-conforming uses would give up to a year, but he had to check to be sure, for certain non-conforming uses to still exist.  There were other provisions in the development code that dealt with that issue, depending on what that land use might be.  The version before the City Commission was probably as strict a version as possible but was not what the City would need to end up with through this process.

Commissioner Amyx asked staff how long it would take to develop a Special Use Permit policy for various venues. 

Scott McCullough, Director of Planning and Development Services, said City staff would work to recognize all of the issues that needed to be addressed through a policy and would probably be a few weeks away from drafting some type of policy. 

Commissioner Amyx said there would be 130 businesses that would be going through the process and understood that conditions might be different for each establishment. 

McCullough said yes.  Those conditions would be identified through the public process of going through each Special Use Permit.  Staff would look at physical aspects of a site and perhaps operational aspects of a site and restricting or expanding the use with the special circumstances of that property.

Commissioner Amyx said he did not see how staff would address 130 applications due to the amount of staff time it would take to individually address all the necessary conditions.

McCullough said it would be a major program with current City resources.

Corliss said a phase-in period was needed in order to go through all those drinking establishment licenses.  It would be take considerable staff effort in finding a good template for those different issues along with situations with particular establishments where staff had to spend more staff time on than others.  In many cases, there were already existing site plans which would not be overruled.  Staff was trying to get at the issue of the external problems associated with particular establishments and would need some type of phase in where they would have opportunity to review different licenses over time.  There would be a heavy work load on staff, but did not want to minimize the work load staff had gone through with the recent unpleasantness with the establishment in question, either.  Staff devoted several weeks to that issue.  He said staff would get the right resources on the right priority.

Commissioner Amyx said there were a lot of people who ran good businesses throughout the community and the City would always have a few businesses that would create nuisance situations.  The obvious question was if the City Commission wanted the authority to shut down a business in this community.  If the answer to that question was “yes”, then he asked about the best tool to use to accomplish that authority.  Before allowing situations to get out of hand, further than what had happened, the question of authority needed to be answered and what a business needed to go through.  The City Commission needed help from legal staff to write that policy.  

He said in hearing the nuisance laws that were in place today, he thought the City Commission needed that authority to deal with nuisance businesses, but staff needed to direct the Commission how to get that authority.  He did not think planning was the best way to deal with the issue.  

Corliss said that was staff goal in getting an understanding from the full Commission about expectations.  He said while legal staff had taken a lot of effort in drafting proposals staff was not hung up on those proposals and were willing to make changes.  He said the guiding light needed to be the City Commission wanted the ability to exercise their judgment about situations that were consistent threats to public safety and the ability to shut that type of business down.  He said staff needed to find ways to write that policy to be objective and fair.  He said Commissioner Amyx’s response about almost all of the businesses operating very well was exactly on point.  He said staff had to write a policy in a way those businesses had a level of certainty that their business and financial interest were protected, but the City had the ability to work on the situation where there was a consistent threat to public safety.     

Commissioner Chestnut said Miller had an updated memo on the liquor license proceedings on Last Call and they had discussed that it sounded as if there was ambiguity on whether or not it was legal to operate in the manner that Last Call was operating.  He asked if the City had ever asked the Attorney General or anyone else about whether that loophole could be closed.

Scott Miller said legislatively it would be really easy to close that loophole, on a statewide level.  He said there was an Attorney General’s opinion from the early 1990’s that indicated operating the way Last Call was reporting to be operating, that in certain instances it would be illegal under the public consumption law of the State of Kansas.  The ABC did not take a position as to whether BYOB clubs were legal or not because the Attorney General’s opinion when Bob Stephan was Attorney General tried to define legislative intent and impose conditions on the statute that were not necessarily written into the statute.  Whether a court would agree with that interpretation or not was an open question in Kansas.  If the sole aspect they were worried about was the BYOB aspect, on either statewide or a local level that issue could be addressed fairly easily.  It did not address all the other issues such as violence outside a drinking establishment or other concerns that had been raised publicly.  The existence of the BYOB could be addressed legislatively.

Commissioner Chestnut asked if staff considered at any point, after Last Call’s license was revoked, pursuing to see if the City could get some kind of ruling on that legislation.

Scott Miller said the District Attorney announced he was going to look at that particular issue and that would be the prosecuting body for violation of state statute.

Mayor Hack called for public comment.

Nick Carroll, Jackpot Saloon and Replay Lounge, said currently entertainment districts and venues were doing well in downtown areas in Kansas while retail businesses were struggling because of competition with big box stores outside the central business districts.  In Salina his parents owned two buildings and for years it was a ghost town, and finally Salina had restaurants and entertainment venues constructed and now there was activity in Salina. 

Lawrence always had a really strong downtown area and downtown music scene.  Many other communities, such as Wichita, modeled certain areas of their city after Downtown Lawrence.  Because of the popularity and activity downtown, a lot of people were choosing to live downtown and there were a lot of lofts being constructed in the area and large developers were putting in lofts next to existing businesses.  In some cases that was a positive.  He said he worked with the contractor who constructed the lofts behind the Replay Lounge.  In the lease for the lofts, the tenants were told they were living in a business district and extra noise could be expected from this activity. 

He said Jackpot Music Hall was opened in 2004 and next door four lofts were constructed a few years ago, which they had no problems with.  On the second floor 4 lofts were constructed, but only 1 loft had issues because that loft was 10 feet from their stage.  The girl who took over the lease did not know a music venue was next door and she had called the police several times.  He said they had been working with the police and Scott Miller to appease that tenant and take care of the situation.  It was not a safety issue, but an issue where someone moved in directly above their establishment.  In most mixed zone areas where there was retail, restaurants and offices were just fine because they did business at different hours.  When people were lured to the activity, they wanted to live next to that activity, but did not want any of the extra, additional noise.  When he read certain things such as the disorderly business ordinance and things like that, there was a trigger where they would have a problematic status with the business and one of them would be if someone called in noise complaints.  It was something the City Commission should address.  He said he did not know if there were any restrictions for developers regarding the placement of lofts or if a loft was constructed, if there was something in the lease that alters someone that it would be a noisy area and could not be treated the same as a suburb. 

Mayor Hack said there were not any of those types of restrictions for lofts.

Ted Boyle, North Lawrence Improvement Association, said he hoped there would be some type of licensing program.  He said they had been dealing with an establishment in North Lawrence since the early 1990’s and it was a unique situation because on three sides of the establishment was residential and the fourth side was to the north, which were the railroad tracks.  This establishment was disrespectful to the neighborhood.  They did not have any problem with the entertainment or noise inside the club, but it was after the patrons were dispersed from the club or if there was a troublesome person and the establishment threw that person out creating violence outside.  He said the neighborhood had dealt with shootings, stabbings, urination, vandalism, and also patron’s threatening the residents as well as the so called “security” the club hired had also threatened residents in the neighborhood. 

He said the activities calmed down last summer because the establishment was not open most of the time.  Now that Last Call has closed down, those patrons had migrated back to North Lawrence and the neighborhood was back to zero again and starting all over.

A year ago, last winter and fall, there was police presence which helped the situation.  The residents of North Lawrence and North Lawrence Improvement Association would like to see some type of licensing restrictions put on establishments like this.  He said there were probably 120 or 125 establishments in Lawrence that were law abiding and respectful to the neighborhood, but it did not take very many bad apples to ruin the barrel.

Rob Farha, owner of The Wheel, said regarding the land use side of this discussion, it was stated there was no grandfathering in, but there were two establishments that were operating presently under the non-conforming use category which was The Wheel and The Hawk.  He asked if staff was saying in one year their establishments would be out if they went with that method.

Mayor Hack said those two establishment were non-conforming to what existed in the code and was just a different layer of a special use permit. 

John Miller said there were certain land use provisions that were currently non- conforming and there were provisions in the development code that addressed those non conformities.  What was being discussed was if a special use permit was created, how that SUP affected that licensed premises.  He said Farha’s business might be dealt with a non-conforming issue separately from a licensed premise aspect and land use aspect of what was going on at that establishment.   He said he agreed with the Mayor and the City Commission’s ability to consider how they wanted to address that non-conforming aspect for existing licensed premises under the Land Development Code.  

Jerry Neverve, Red Lyon Tavern, said his establishment had been downtown since 1993.  He said when the Last Call situation first came up two years ago, several people including the Kansas Licensed Beverage Association and several bar owners downtown suggested the City appeal to the Alcohol Beverage Control Last Call’s license being issued.  Several years went by and it did not happen.  The first time it happened the license was repealed.  At the first instance of a nuisance lawsuit brought up against Last Call, the club was closed.  It was in their position that the City Commission had the power in the statutes that existed in Lawrence, Kansas to deal with those problems.  They dealt with Last Call for two years because the City would not take the position to deal with the problem.

Tim Lyons, Lawrence, said he was a local musician and had been temporarily employed by many entertainment venues in the Kansas City Metro Area for the past 8 years.  He honestly thought the licensing was a fundamentally bad idea.  Anytime presenting any sort of licensing issue, it presented the opportunity for some administrative body to take preemptive action against a type of establishment based on preconceived ideas about the type of establishment.  A drinking establishment that also had entertainment could become a problem due to the patrons, but he also looked at it through civil law.  The duty of care, in civil law for businesses, was to the businesses patrons, not necessarily the surrounding businesses.  What happened at Last Call and that translating to what happened at K-10 thereafter did not necessarily, in his eyes, mean that Last Call was to blame.  The patrons were to blame.  Punishing businesses based on their patrons’ actions was not the greatest idea in the world.  If there were licensing or a special use permit agreement in place, it might not be well handled by the next Commission or the Commission after that.  He said that was his personal problem with the licensing of entertainment venues.

Gregory Mann, Lawrence, said with the license taken away and the City Commission able to close the BYOB loophole, he did not understand why they needed anything more. 

Commissioner Amyx said the City Commission had to go through a process before Alcohol Beverage Control, an outside agency, to make a decision whether or not the license could continue and that type of control needed to be local because they might not have the same abilities to battle, without Alcohol Beverage Control, with the owner of the business and whether or not the City would be successful in having that license pulled. 

Mayor Hack said the City Commission had asked in legislative agendas and statements every year that local government should be able to determine what to do with entertainment venues.  The Commission’s concern was not just with BYOB, but other issues.  She said if the City wanted additional regulation and if so, she asked what would be the additional regulation.  They needed to answer a basic policy question first and move from that point.

Commissioner Highberger said he did not want more regulations but he also wanted the Commission to have the ability to deal with the situation like with Last Call.  He did not like the special use permit idea because it was too much burden on staff and the business owners.  The only place he would consider special use permits would be for those establishments that were in or adjacent to residential areas.  Extra scrutiny of that kind of establishment made sense. 

He would like to see any system the City Commission implemented to have minimal or no impact on the vast majority of drinking establishments that did not cause any problems, but give the City the authority to ramp up and take appropriate action when dealing with safety problems.  He did not want something that made it easy for the City Commission to have the power to shut down a business and that sort of authority should only be exercised in real problem situations. 

He said Nick Carroll raised a very valid concern.  He thought they would want to draft something that was sensitive to a contract so increasing residents in the commercial areas did not come into conflict with the entertainment industry. 

He said of all the options, the most appealing option was the disorderly business ordinance that Commissioner Amyx proposed although it would need to be crafted very carefully.  He was not sure he thought all the issues through, but he felt like he had not achieved a resolution of this yet.  

Vice Mayor Dever said he first wanted to address the local control issue.  The City Commission passed on this issue before because they wanted to put it in the hands of the state regulators who were supposed to be able to help protect the citizens in the community.  From nuisance actions or violence, it came down to the City wanting to have some control over what happens in Lawrence, Kansas and to sum up the fact that they were able to get the ABC to do what the City felt like was necessary, was not putting the whole history of what went on there.  He thought the City needed to have some sort of control over what happened in the City and the City Manager tried to convince him because he was previously against any regulation, especially one that was written in haste to address a specific issue or one bad actor.  He was in favor of staff looking at what Commissioner Amyx suggested and taking a look at what was on the books already to make sure they did not already have the power, but if they needed more the disorderly business ordinance would be the next best option. 

He thought they had quite a few of land use regulations already and was not convinced that was the best step now.  After what just happened, they needed to take a hard look to see if they had control over what went on in the community and protect the people who lived near those establishments.

Commissioner Highberger said he thought it was important to note that the ABC did not do what the City asked them to do.  Their concerns were based primarily on public safety issues that were happening outside and the immediate vicinity of the club and the ABC decision was very clearly only based on the violations inside the club.  Even if the ABC cooperated in the future, he did not think it gave them the tools they were looking for.

Commissioner Chestnut said there were a couple of things that needed to be balanced here.  He said standards needed balanced and one thing they were forgetting was they also had to balance rights of property owner.  As far as the ordinance that was drafted relative to a venue license, he thought there was a whole host of issues and some of those problems he raised back in August defining substantial criminal activity and how they would define an incident within 500 feet, especially downtown when they had venues that were within 500 feet.  The most difficult thing in drafting an ordinance was crafting something that was general enough to cover the conduct, but something that would meet constitutional muster, which meant they were on the thin edge as far as drafting something they thought really balanced rights.  He agreed he had all the faith and trust in the governing body as well as the police department, but they would be putting ordinances on the books that would go past their tenure and if they were written broadly enough, there was a lot of danger in that.  He had a lot of concerns about the entertainment license as written because it placed a lot of power, especially because it talked about appointing a board, then having a hearing, and basically their decision being when it came to the City Commission, they got to consider any way they wanted to so it boiled down to three votes on the City Commission, which was a pretty serious situation.  If they went down that path, it would have to be much more restricted than it was presented now.  

He agreed with Commissioner Amyx as to the special use permits.  He asked if they were really prepared to take on 125 establishments and go through that process.  He agreed with the other Commissioners that he liked more local control, but was sensitive to the fact that they could really create something that was pretty broad and used punitively. 

The establishment discussed in North Lawrence had been at that location for a long time and he believed pre-existing conditions existed that were adopted under an old code.  There were provisions for that establishment and he asked if staff had followed up on those conditions to make sure the establishment was complying.

Mayor Hack said the issue was the state could not enforce it.  The City had a nuisance ordinance they thought they were good to go on, but the court said no.

Corliss said he would follow up with the owner to see if they were complying with those requirements.  He said State Law at the time this was enacted the City argued that it gave the City the authority to condition drinking establishment licenses.  The state law changed because of some court decisions to make it fairly clear that cities did not have that ability. 

Commissioner Chestnut said there were currently restrictions on locations in the City Code that restricts the sale of alcohol within 400 feet of a school or church.  He asked why the code could not be amended to include residential neighborhoods. 

Corliss said that could be done, but they would have the non conforming use issue.  One of the issues they were trying to get at with the special use permit was putting an overlay on top of the current zoning and say the occupant had to comply with special use permit requirements into the future.  If those special use permits would somehow in the future deny a legal establishment their ability to operate, the City would have a strong legal issue as to whether or not the City could do that.  How staff envisioned the special use permit requirements going prospectively into the future would be requirements that would have to do with their specific operation that would apply into the future. 

He said Los Amigos/Club 508 was a legal non-conforming use at that location which was a commercial use that was allowed at that location.  He said he did not think the City could pass an ordinance that they were not allowed to be within 500 feet and make that stick.

Commissioner Chestnut said on a scale of 1-10 if the Commission felt their control was a 2 and wanted it to be a 7, then the ordinances were a 10 and that was not a place he wanted to go.  It put the Commission in a place with a lot of broad power that would be concerning to him as an establishment owner. 

As far as the SUP and entertainment license as written were too broad and could have some serious unintended consequences going forward.  He also felt they should get a lot of input from the licensees. 

He said in most of the examples provided, regarding entertainment licenses, there were typically a lot of exclusions and a lot of exclusions were for full service restaurants that mostly served food.  That could be one place to consider.  It seemed like it went through and excluded some of the venues and was a little more targeted.  Whether it was fair or not, he did not know, but it was one place where he saw to limit the amount, because it would be a big undertaking if choosing to move forward.

Mayor Hack said the answer to the question of whether the City Commission wanted additional authority to act on behalf of the safety and welfare of the citizens was definitely a “yes”.  The question was what was the balance and how much.  She said the special use permit was too burdensome on staff and business owners.  It would create perhaps more confusion and complexity than already existed. 

In a perfect world the state would give the City the authority to do this, but obviously the state was not going to.  When there was that situation there were the layers of appeal.  What they needed was when a situation emerged like this; they could act immediately with a license that might allow them to do this.  She agreed with Commission Chestnut that if they did anything that put the future of businesses in the hands of five elected officials, she thought that was too much of a burden for the other businesses.  However, they were also responsible for the health, safety and welfare of all the citizens so that was difficulty.