MINUTES OF THE MEETING OF THE CITY COUNCIL Wichita, Kansas, March 17, 1998 Tuesday, 9:05 a.m. The City Council met in regular session with Mayor Knight in the Chair. Council Members Cole, Ferris, Gale, Lambke; present. *Council Members Kamen, Rogers; absent. Chris Cherches, City Manager; Gary Rebenstorf, Director of Law; Pat Burnett, City Clerk; present. The invocation was given by Carol Rose, Mennonite Church of the Servant. The pledge of allegiance to the flag was participated in by the Council Members, staff, and guests. Minutes -- The minutes of the regular meeting of March 3, 1998, were -- approved approved 5 to 0. (Kamen, Rogers; absent) AWARDS AND PRESENTATIONS *Council Members Kamen, Rogers; present. PROCLAMATIONS Mayor Knight presented the Proclamations that were previously approved.-- RECOGNITION H. E. "Gene" Jones, former Director of Law for the City of Wichita, was recognized for continued service to the City of Wichita. NEW BUSINESS RIVERVIEW AREA WATER WATER DISTRIBUTION SYSTEM TO SERVE THE RIVERVIEW AREA WEST OF ARKANSAS AVENUE AND SOUTH OF 53RD STREET NORTH. (District VI) Mike Lindebak City Engineer reviewed the Item. Agenda Report No. 98-133 A. On February 24, 1998, the City Council adopted a Resolution establishing March 17, 1998, as the public hearing date to consider ordering in a water distribution system to serve an area west of Arkansas Avenue, south of 53rd Street North. Part of the area has contaminated groundwater. A petition is being circulated in support of the project. Owners representing 22% of the improvement district signed the petition at a February 25, 1998, neighborhood meeting. The recently annexed area is composed primarily of modest, single-family homes. The estimated project cost is $510,000, with the total assessed to the improvement district. The proposed method of assessment is the fractional basis. The estimated assessment to individual properties is $3,000 for lots of 22,000 or less square feet of area and $4,500 for lots over 22,000 square feet of area. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Council Member Cole Council Member Cole explained that the process for submitting a protest petition is still availablle to property owners in the area. Council Member Kamen Council Member Kamen asked that Staff submit a report regarding the number of persons utilizing the Hardship Deferral Program. Motion -- Cole moved that the Project be approved and the Resolution be adopted. Motion -- carried carried 7 to 0. RESOLUTION NO. R-98-076 Resolution of findings of advisability and Resolution authorizing construction of Water Distribution System Number 448-89244 (west of Arkansas Avenue, south of 53rd Street North) in the City of Wichita, Kansas, pursuant to findings of advisability made by the Governing Body of the City of Wichita, Kansas, presented. Cole moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cole, Ferris, Gale, Kamen, Lambke, Rogers, Knight. Mayor Knight left the Bench; Vice Mayor Cole in the Chair. PUBLIC HOUSING HOME PUBLIC HOUSING HOME OWNERSHIP PLAN. Tom Smith Grants Coordinator reviewed the Item. Agenda Report No. 98-183 Legislation enacted by Congress in the 1970's allows cities to sell public housing units for home ownership opportunities for low-to-moderate income individuals. This legislation was formalized in the Housing and Urban Development (HUD) Section 5 (h) regulations. Other cities, such as Dodge City and Kansas City, Missouri, have developed home ownership programs for the sale of public housing units. In 1997, the City Council endorsed this concept and authorized staff to develop a home ownership plan for the City of Wichita. A copy of the proposed home ownership plan has previously been provided to the Council. The Wichita Housing Authority (WHA) has nearly 350 units in its single family public housing stock (KANS 4-2, KANS 4-4, AND KANS 4-7). The proposed Home Ownership Plan is a Pilot Program which would make available 100 single family units initially, for purchase to existing public housing tenants or other low and moderate income persons. Current public housing tenants will be provided the first opportunity to purchase a vacant home, the home they currently occupy, or another public housing home where the tenant has agreed to relocate. Public housing units will then be offered to Section 8 residents, and persons on the Public Housing and Section 8 wait list and then to other eligible low to moderate income individuals. These properties will not be sold for rental properties or to developers. Eligible home buyers will obtain a loan from a lending institution for not less than 50% of the purchase price. If the home requires rehabilitation, costs will be included in the purchase price. Wichita Housing Authority's reserve funds can assist the home buyer with the down payment if needed. To ensure properties are properly maintained, a Maintenance Reserve Fund will be established (modeled after the Kansas City Program). Residents will pay $10-$15 per month into a fund which can pay for emergency repairs or replacement of furnaces, hot water tanks, air conditioners, roofs, plumbing and electrical systems which are not covered by the buyers homeowner's insurance. In developing this program, four public meetings were held to inform public housing tenants (and others) about this opportunity for home ownership. There was overwhelming support for this program. The Wichita Housing Authority has approved this program and adopted a resolution of support. Research indicates that housing units in KANS 4-7 were not bond financed and may be made available for sale on terms approved by HUD, whereas sale of KANS 4-2 and KANS 4- 4 will result in a change in use under the federal tax regulations which will require remediation. This will entail identifying an appropriate source of funds and working with the HUD Regional Office to defease or call a portion of the bonds allocable to the specific KANS 4-2 and KANS 4-4 units to be sold. However, the pilot project can begin with units in KANS 4-7. Sale proceeds will recover program costs (including loans for second mortgages); fund the loan loss reserve (to cover possible defaults); and fund the Housing Partnership Fund. The proposed Home Ownership Plan is a Pilot Program which would make available 100 single family units (initially) for purchase to existing public housing tenants or other low and moderate income persons. Council Member Gale left the Bench. Vice Mayor Cole Vice Mayor Cole inquired if anyone wished to be heard and no one appeared. Motion -- Rogers moved the Plan be approved, the Resolution adopted and Staff authorized to -- carried submit the Plan to HUD. Motion carried 5 to 0. (Gale, Knight; absent) RESOLUTION NO. R-98-077 A Resolution approving the Public Housing Home Ownership Plan, presented. Rogers moved that the Resolution be adopted. Motion carried 5 to 0. (Gale, Knight; absent) Yeas: Cole, Ferris, Kamen, Lambke, Rogers. NEIGHBORHOOD NEIGHBORHOOD REVITALIZATION PLAN. Tom Smith Grants Coordinator reviewed the Item. Agenda Report No. 98-185 On October 28, 1997, the City Council reviewed a preliminary concept plan for the Neighborhood Revitalization Act. Staff were directed to develop a more detailed concept and consult with USD 259 and Sedgwick County. On February 14, 1998, the City Council held a workshop to review a more detailed proposal for the proposed Neighborhood Revitalization Plan. Staff have prepared a Neighborhood Revitalization Plan which addresses the legal requirements for both implementation of the State Neighborhood Revitalization Act and the HUD Neighborhood Revitalization Strategy Areas. The Neighborhood Revitalization Plan utilizes authority cities have under State law to provide tax rebates to owners in designated neighborhood revitalization areas as an incentive for improving their property. It also focuses HUD CDBG and HOME funding in Local Investment Areas to have a significant visual impact on specific areas. If approved, the Plan would begin July 1, 1998 and automatically end June 30, 2003, unless extended by the City Council. The City Council will have the option to review the Plan annually and make any appropriate adjustments. The detailed concept has been presented to the Sedgwick County Commission, officials of USD #259, representatives of Citizen Participation Organization, Wichita Independent Neighborhoods, businesses in the proposed areas and local financial institutions. The Neighborhood Revitalization Plan does not require additional local tax funding. It will have an impact on future local tax collections. Because much of this tax growth would likely have not occurred without the rebate program and other incentives, the impact will be reduced. At the end of the five year period, the City will collect any additional tax revenue based on the improved value of the Neighborhood Revitalization Areas. Vice Mayor Cole Vice Mayor Cole inquired if anyone wished to be heard. Sam Muyskens Sam Muyskens said the Council was to be commended on this way to encourage home ownership and revitalization. Mr. Muyskins said he wanted the Council to be aware that there is concern for housing in the core area of the City; and that he has not seen how the downtown area is to become a part of the competitive process. Council Member Gale present. Gaye Quisenberry Gaye Quisenberry spoke in favor of having the area from Topeka/Emporia/St. Francis from 13th to 17th included in the grant area. Council Member Rogers Council Member Rogers expressed concern with the local Investment Area omitting a significant area of District I. There are significant areas of need beginning at Washington and going east to Oliver, and beginning at 8th Street and going north to 25th Street North. Tom Smith Grants Coordinator said HUD would look at the areas carefully. The areas should be small enough to make an impact. A larger area would have to be taken up with HUD. Council Member Rogers Council Member Rogers again expressed concern and said a significant area of District I had been omitted. The area east of the Wichita-Sedgwick County Health Department, east about three blocks, and north to 13th has an economic status of low to moderate income. Council Member Rogers said he could not vote for the Local Investment Areas as presented. There should be rethinking in terms of what are local investment areas. Charles McAfee Charles McAfee, J.M. Ltd., invited the City Council to walk through the area of the 1300 block on Ohio. J.M. Ltd, on a completely private basis, has changed properties that have never paid more than $35 to $40 per year in ad valorem taxes to properties that now pay about $1,000 per year. Tom Smith Grants Coordinator explained that the City Council would review the local investment area every year and the areas can be moved around as the Council wishes. Motion -- Gale moved that the Neighborhood Revitalization Areas outlined in red be -- failed approved. Motion failed 3 to 3. (Knight absent) Ferris, Lambke, Kamen - No. Motion -- Ferris moved that the Boundary discussion be deferred until the Item is returned -- carried to the City Council. Motion carried 6 to 0. (Knight absent) Motion -- Kamen moved that parts 3, 4, 5, 6, and 7 be approved. Kamen, with consent of the -- withdrawn Second, withdrew the Motion. Motion -- Ferris moved that the proposed levels of rebate be approved as recommended with the exception that the Multi-Family Downtown be reduced to 75 percent. Motion -- carried carried 5 to 1. (Knight absent) Lambke - No. Motion -- Ferris moved that the length of rebate (five years) and the maximum building -- carried permit be approved; and a $10,000 minimum be established. Motion carried 6 to 0. (Knight absent) Motion -- Ferris moved that the building permits and plant equity fees for the Neighborhood Revitalization area be reduced by 50 percent. Council Member Rogers Council Member Rogers spoke in favor of doing away completely with permit fees for the Revitalization area. -- carried Motion carried 5 to 2. (Knight absent) Gale, Rogers - No. Motion -- Ferris moved that Staff be allowed to assemble infill lots for development as opportunities arise, and that Staff not go out and actively pursue purchases or -- carried develop whole areas. Motion carried 6 to 0. (Knight absent) Motion -- Ferris moved that funding sources, including economic development loans and the targeting of existing CDBG and HOME funds, along with the Neighborhood Stabilization funds within the approved Local Investment Areas be approved as -- carried recommended. Motion carried 6 to 0. (Knight absent) Motion -- Ferris moved that the Neighobhood Revitalization Plan and Ordinance, and the Interlocal Agreement preparation be deferred until the Neighborhood Area -- carried Boundaries are approved. Motion carried 6 to 0. (Knight absent) EATON BLOCK PROP DESIGNATION OF PREFERRED DEVELOPER - EATON BLOCK PROPERTIES. (District VI) Terry Kollmai Development Assistance Director reviewed the Item. Agenda Report No. 98-184 The City acquired the Eaton Block Properties (located in the block bounded by Douglas, Waterman, St. Francis and Emporia) in May, 1997; staff was subsequently directed to solicit proposals for redevelopment of the entire square block. In July, 1997, a tax increment financing district was established by the City Council for the purpose of preserving the option of providing financial assistance for redevelopment of these properties. A Request for Expression of Interest was mailed to 140 potential developers. Twenty-five of these potential developers requested complete Request for Proposal packets which were mailed to them in August, 1997. A pre-proposal meeting for prospective developers and a property tour were hosted by the City on September 22. The deadline for responding to the request for proposal was October 24, 1997. Four proposals were received. In September, 1997, Vice Mayor Joan Cole and Council member Bill Gale established a 17- member citizen task force (Eaton Block Task Force) whose mission was to recommend a preferred developer to the City Council. As part of the selection process, the task force toured similar projects redeveloped by prospective developers, researched references, analyzed proposals for redevelopment uses, compatibility and marketability for Wichita, together with budget and financing strategies. The MetroPlains' Development Inc. (St. Paul, Minnesota) proposal provides for 90- 120 apartments, with a mix of market rate and affordable rental units, as well as retail/commercial spaces on the first and second floors of the buildings in the Eaton block. Secured parking is recommended by the developer, but parking plans have not been developed. MetroPlains' proposal was evaluated as the better proposal by the task force responsible for oversight and project management. This proposal has four major advantages over the other proposals. (1) Superior management capability: MetroPlains has a successful project team comprised of experts in all aspects of historic rehabilitation including financing, project design, architecture, engineering, marketing and long- term property management. The firm has a proven record in redevelopment of historic properties and has received awards from state and national historic preservation groups. (2) Extensive experience: MetroPlains has completed 10 projects of a similar scope and nature in various Midwestern states. On-site inspections of two of those projects by the Eaton Block Task Force verified the work quality and compliance with historic preservation guidelines. (3) Financial flexibility: MetroPlains' reference checks showed that they have experience with a large number of funding sources and have demonstrated the ability to successfully combine a variety of funding sources and strategies in their historic redevelopment projects. (4) Project quality: On-site visits to two properties revealed that high quality is a feature of MetroPlains' developments in methods of construction, types of materials and fixtures used, and long-term maintenance. Vice Mayor Cole Vice Mayor Cole inquired if anyone wished to be heard. Gary Stenson Gary Stenson said he was excited about the project and urged approval. The developer, responding to a question, said that, without incentives, if the City offered the property for $1, he would not consider being the developer. Motion -- Cole moved that MetroPlains be designated as the City's Preferred Developer for redevelopment of the Eaton Block Properties and staff be authorized to negotiate a Letter of Intent; and the Eaton Task Force work with the developer to prepare feasible design concepts and fiscal proposals for consideration. Motion carried -- carried 6 to 0. (Knight absent) CITIZENS MGMT COMMITTEE CITIZENS MANAGEMENT COMMITTEE PRESENTATION (Status Report). David Warren Director of Water and Sewer introduced members of the Cheney Lake Watershed. Sid Collins Sid Collins, representing the farmers and ranchers, said the farmers and ranchers will be willing to work with the City of Wichita. All that is done is to improve the water quality for everyone. Howard Miller Howard Miller, a dairy farmer in the Watershed, presented slides and told of the progress of the Watershed. There was no further action taken. REMOVAL UNSAFE STRUC. REPAIR OR REMOVAL OF DANGEROUS AND UNSAFE STRUCTURES. Kurt Schroeder Superintendent of Central Inspection reviewed the Item and recommended 10 days to start and 10 additional days to complete demolition. Agenda Report No. 98-181 On January 27, 1998, a report was submitted with respect to the dangerous and unsafe conditions of the buildings located on these properties. The Council adopted resolutions providing for a public hearing to be held on these condemnation actions at 11:00 a.m. on March 17, 1998. Since that time one property has been repaired by the owner. The remaining property is as follows. On January 5, 1998 the Board of Code Standards and Appeals (BCSA) held hearings on this property: Property Address Council District 1535 N. Emporia VI Pursuant to State Statute the Resolution was duly published twice on January 28, 1998 and February 4, 1998. A copy of each resolution was sent by certified mail or given personal service delivery to the owners and lien holders of record of each described property. If any of the above conditions are not met, the Office of Central Inspection will proceed with demolition action and also instruct the City Clerk to have the resolutions published once in the official city paper and advise the owners of these findings. Vice Mayor Cole Vice Mayor Cole inquired if anyone wished to be heard and no one appeared. Motion -- Cole moved that the public hearing be closed, the resolution declaring the building(s) dangerous and unsafe structures be adopted, the staff recommended time frame to alleviate the findings be approved and any extensions of time granted to repair the structures would be conditioned on the following: (1) any back taxes now due are to be paid and taxes kept current, (2) the structures are to be kept secured, and (3) the premises are to be kept mowed and free of debris; if any of these conditions are not met, staff is directed to proceed to let for bids to demolish the structure; and the City Clerk be instructed to have the Resolution published once in the official city paper and advise the owners of -- carried these findings. Motion carried 6 to 0. (Knight absent) RESOLUTION NO. R-98-078 A Resolution finding that the structure located on Lots 82-84 Parmenter's Addition to Wichita, Sedgwick County, Kansas, commonly known as 1535 North Emporia, Wichita, Kansas, is unsafe or dangerous and directing the structure(s) to be made safe and secure or removed, read. Cole moved that the Resolution be adopted. Motion carried 6 to 0. Yeas: Cole, Ferris, Gale, Kamen, Lambke, Rogers. 1998-99 HUD 1998-99 HOUSING AND URBAN DEVELOPMENT (HUD) CONSOLIDATED PLAN/COMBINED APPLICATION AND COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS (CHDO) OPERATING GRANTS. Agenda Report No. 98-186. On November 25, 1997, the City Council revised the composition of the Grants Review Committee, retained previously adopted priority needs and designated funding for priority programs and services. Applications were solicited for undesignated funding and for Special Program funding through a competitive Request for Proposals (RFP). The Grants Review Committee held a public hearing February 11, 1998, to provide an opportunity for interested persons to address the Committee regarding housing and community development needs. The Committee also permitted applicants for undesignated HOME and ESG funding to make presentations. The Grants Review Committee also spent many hours in additional meetings reviewing applications, serving on Grants Review Subcommittees and considering comments from the public. The 1998-1999 combined HUD funding for Wichita includes: Community Development Block Grant () - $3,843,000; HOME Investments Partnership (HOME) -$1,725,000; and Emergency Shelter Grant (ESG) - $147,000. The City Council has previously designated the following: Source Designated Undesignated Total Funding Funding CDBG $3,843,000 $ - 0 - $3,843,000 HOME 1,406,000 259,000 1,725,000 ESG 5,100 141,900 147,000 Total $5,314,100 $400,900 $5,715,000 Community Development Block Grant 1. Reduced Funding The actual 1998/99 CDBG grant is $106,000 less than originally estimated. The estimated amount (and the amount designated by the City Council) was $3,843,000. The actual grant amount is $3,737,000. Staff recommend using $106,00 from prior year completed projects to provide full funding for projects previously designated by the City Council. 2. Request for Proposals A Staff Screening and Selection Committee has reviewed the Request for Proposals for Women's Services, Youth Recreation/Enrichment and Summer Youth Employment and made funding recommendations. The City Council has the option of accepting the recommendations or modifying the funding allocations, subject to federal allocation limits. 3. Neighborhood/Community Facilities The City Council designated $225,000 for this activity. The City Council has the option of accepting or modifying the funding recommendation. 4. Neighborhood Stabilization/Revitalization The City Council has designated $700,000 for this activity. The City Council should decide the specific use for this funding. Staff recommends the funding be used to support the Neighborhood Revitalization Act program. The City Council has the option of accepting or modifying the funding recommendation, subject to federal allocation limits. 5. Focus Existing Programs Staff have recommended that approximately $2 million dollars per year in CDBG and HOME programs be focused within Local Investment Areas (as a part of the Neighborhood Revitalization Act) to create a positive visual impact on neighborhoods. The City Council can accept, modify or reject the staff recommendation. HOME 1. Additional Funding Actual 1998/99 HOME funding increased by $115,000 from $1,610,000 to $1,725,000. It is recommended CHDO undesignated funding be increased by $9,000; administration be increased by $11,500; and $94,500 be designated for Neighborhood Revitalization Act housing rehabilitation. The City Council has the option of accepting or modifying the funding recommendation. 2. Undesignated CHDO Funding The Grants Review Committee and staff have provided funding recommendations for undesignated CHDO funding. The City Council has the option of accepting or modifying the funding recommendations. ESG 1. Additional Funding Actual 1998/99 ESG funding increased by $38,525 from 108,475 to $147,000. Staff have recommended all the increase be provided for undesignated funding for agencies. 2. Undesignated Funding The Grants Review Committee and staff have provided funding recommendations for undesignated ESG funding. The City Council has the option of accepting or modifying the funding recommendations, subject to federal allocation limits. Each grant program is restricted to certain federal allocation limits which cannot be exceeded; however, they can be less. In 1998/99, these limits (by grant) are: CDBG $1,135,000 Public Services $ 882,600 Planning and Administration HOME $ 259,000 Neighborhood-Based Non-Profits(CHDOs) (Minimum) $ 172,500 Administration ESG $ 44,100 Essential Services $ 44,100 Homeless Prevention $ 7,350 Administration Based on the federal restrictions and Priority Needs, recommended funding allocations have been prepared for City Council consideration. The City Council has the option of accepting the recommendations or modifying the funding allocations, subject to federal allocation limits. A summary of HOME undesignated funding requests is as follows: Category Requests Grant Available CHDO $1,359,800 $259,000 A summary of Emergency Shelter Grant undesignated funding requests by category is as follows: Category Requests Grant Available Rehabilitation $-0- Maintenance & Operation $68,320 Essential Services $40,139 Homeless Prevention $10,000 Total Requests $118,459 $141,900 Goals and Funding Priorities: The national objectives of the Community Development Act are to principally benefit low/moderate income persons, eliminate slum and blight, or meet other urgent community needs. The HOME program also must primarily benefit low/moderate income persons and the ESG program must benefit homeless persons. The City Council has previously established Priority Needs to guide use of HUD funds. The City Council also designated funding for specific projects. For Emergency Shelter Grant funds, the recommendations are the same as Grants Review Committee due to the limited funds available under this funding source. The 1997-1998 CDBG grant is $3,843,000 and is comprised of $3,737,000 in 1998-99 funding and $106,000 in funds from prior year completed projects. The HOME grant is $1,725,000 and the ESG grant is $147,000. The allocations made will be effective July 1, 1998. The City has met federal requirements in the allocation of funds. Prior to final allocations/payments, each project must be verified for eligibility for use of the respective grant funds. Subsequent to the allocation of funds, staff will prepare a One Year Action plan of activities to be funded. A draft One Year Action Plan will be presented to the City Council for consideration prior to being made available for a required thirty (30) day public review and comment period. At the end of the comment period, the final plan will be submitted to the City Council for approval and authorization to submit to HUD. Vice Mayor Cole Vice Mayor Cole inquired if anyone wished to be heard. The following persons spoke requesting approval of their requested program funding; Tina McKee Mohan Kambampati, IndoChinese Center Sharon Fearey, Historic Midtown Association Ivonne Goldstein Roger Harms, Mennonite Housing Brad Smith, Mennonite Housing Council Member Kamen Council Member Kamen said he would like some home repair funds on RFPs or include the possibility of Mennonite Housing funding. Council Member Cole Council Member Cole agreed with the RFP process and the process being open to Mennonite Housing and everyone. Council Member Rogers Council Member Rogers said home repair is vital and necessary. RFPs should be used. Motion -- Rogers moved that $150,000 of the Neighborhood Stabilization funds be designated for the Home Repair Program and that RFPs be done specifically designating within -- carried target development areas as defined. Motion carried 6 to 0. (Knight absent) Motion -- Ferris moved that the remaining Neighorhood Stabilization funds be used $10,000 CDBG for neighborhood clean up, $190,000 CDBG for public facilities improvements, and $350,000 CDBG for housing improvements and economic development activities. -- carried Motion carried 6 to 0. (Knight absent) Motion -- Ferris moved that $200,000 of the Neighborhood/Community Facilities funds be allocated to Midtown and the remaining $25,000 be set aside for projects that the Council may determine need to be done. Amendment -- Ferris, with consent of the second, amended the motion to get additional information on either the Comley House or other programs, and that before final submittal, the allocation of the remaining $25,000 be made. -- carried Motion, as amended, carried 6 to 0. (Knight absent) Motion -- Ferris moved that the HOME allocations be approved and existing CDBG and HOME -- carried programs be focused in Neighborhood Revitalization Areas. Motion carried 6 to 0. (Knight absent) Motion -- Ferris moved that the Emergency Shelter funding recommendations be approved. -- carried Motion carried 6 to 0. (Knight absent) Motion -- Ferris moved that the Request for Proposal services, as recommended, be approved. -- carried Motion carried 6 to 0. (Knight absent) Motion -- Ferris moved that use of the prior year CDBG savings to bring total 1998/99 CDBG -- carried funding to $3,843,000 be approved. Motion carried 6 to 0. (Knight absent) Motion -- Ferris moved that preparation of the One Year Action Plan be authorized. Motion -- carried carried 6 to 0. (Knight absent) Agenda Report No. 98-187. A RFP was issued for proposals which would "strengthen, stabilize, and expand the capacity of non-profit organizations involved in the development of housing for low and moderate income households." Proposals were received from five CHDOs. A staff review panel reviewed the proposals and made the following recommendations for funding: Wichita Indochinese Center, $20,000 to hire an experienced housing coordinator. Mennonite Housing Rehabilitation Services, $30,000 to develop its internal capacity to manage the affordable rental properties it has developed since 1991. The funds for the contracts will come from the 1997 allocation of HOME funds set aside for CHDO operating grants. Each agency must also match the contract amount with an equal amount of other funds. Motion -- Ferris moved that the allocations be approved and staff be authorized to -- carried negotiate contracts. Motion carried 6 to 0. (Knight absent) EXECUTIVE SESSION Motion -- Cole moved that the Council recess to executive session to consider consultation with legal counsel on matters privileged in the attorney-client relationship relating to potential litigation and legal advice; preliminary discussions relating to the acquisition of real property for public purposes; confidential data relating to financial affairs or trade secrets of a busines; and the Council -- carried return from executive session at 1:30 p.m. Motion carried 6 to 0. (Knight absent) RECESS Council recessed at 12:10 p.m. and reconvened in regular session at 1:35 p.m. Vice Mayor Cole Vice Mayor Cole announced that no action was necessary as a result of the executive session. SOLID WASTE PROGRAMS FINANCING OF SOLID WASTE PROGRAMS. Motion -- carried Ferris moved that this Item be deferred one week. Motion carried 6 to 0. (Knight absent) HOTEL AT OLD TOWN THE HOTEL AT OLD TOWN. (District VI) Chris Cherches City Manager reviewed the Item. (a) Request for Letter of Intent. Agenda Report No. 98-176 December 23, 1997, a development agreement and other related agreements with Jack DeBoer, dba as The Hotel at Old Town, Inc. (HOT), were approved. Certain design issues have been refined and the design-build construction contract has been finalized, and HOT is ready to begin construction. As part of the effort to control costs, HOT is requesting IRB financing through the City, in an amount not- to-exceed $10 million for 18 months. HOT is not seeking property tax abatement. State law allows the recipients of IRBs to claiim sales tax exemptions on taxable materials and services that are purchased with proceeds of IRBs. The aggregate state-local sales tax rate is 5.9 percent. The total development budget, including sales tax, is estimated by HOT to be approximately $10.4 million. Total savings to be realized by the exemption of sales tax is estimated to be approximately $400,000. HOT is proposing to initially fund the entire amount of the development costs with IRB proceeds, including the $3.3 milion portion to be ultimately funded by the City of Wichita. Under HOT's plan, IRBs in the amount of $10 million will be issued at the outset of the construction project and the proceeds spent to complete development of the project. At the end of the project, the City would make its contribution in a lump sum payment which would be used to redeem a like amount of IRBs. In this way, the full amount spent on the development of the hotel is exempted from sales tax. Hinkle, Eberhart & Elkouri, L.L.C. will serve as bond counsel on the issue. Vice Mayor Cole Vice Mayor Cole inquired if anyone wished to be heard and no one appeared. Council Member Lambke Council Member Lambke spoke against issuing general obligation bonds and giving up $400,000 in sales tax for this project. Motion -- Cole moved that the issuance and signing of a Letter of Intent to The Hotel at Old Town for industrial revenue bonds in an amount not to exceed $10 million, -- carried subject to conditions, be authorized. Motion carried 4 to 2. (Knight absent) Ferris, Lambke - No. (b) Parking Agreement. Agenda Report No. 98-177. In the Development Agreement, the City agreed to provide HOT with at least 80 parking spaces for exclusive use of hotel guests, located in a parking facility adjacent to the north of the hotel, and additional parking of up to 20 stalls, for restricted use by hotel guests on an as-needed basis, in City parking lots located near the hotel, or in the parking facility. An additional agreement between the City and HOT is now needed to define the management arrangements relating to HOT's use of City parking facilities. The HOT Development Agreement stipulates that the parking spaces reserved for hotel guests must be physically separated from other parking spaces. Preliminary investigations relating to the design of a parking facility to be constructed on the site adjacent to the north of the Keen Kutter Building have determined that the facility cannot be built with a sub-grade level. Because of this, all hotel parking spaces must be located at the upper levels of the parking facility in order to be physically separated from the other parking spaces. The parking management agreement provides that this be done by "gates or other approved methods to restrict the use of parking" and stipulates that such gates or other devices will be opened to allow public use of hotel parking spaces every day after 7:00 or 8:00 p.m. The parking agreement also defines how the need for additional parking will be determined and requires HOT to wait at least 90 days from the opening of the hotel before requesting the additional parking spaces, if such spaces are not provided in the parking facility at the time that the hotel opens for business. The term of the parking agreement is for however long the Keen Kutter Building continues to be operated as a hotel. Under the agreement, the City is responsible for maintenance and repair of parking facilities. HOT agrees to pay prevailing Old Town Parkin District Rates pursuant to the requirements of the Old Town Zoning Overlay. Cost of the related improvements required by the City under the HOT development agreement, including the construction of a parking facility, is estimated to cost $2 million. General obligation financing of the project will be included in the CIP. Motion -- Cole moved that the Parking Management Agreement be approved and the Mayor be -- carried authorized to sign. Motion carried 6 to 0. (Knight absent) MERIDIAN BREAK REQUEST FOR A MEDIAN BREAK AT HARRY AND GREENWOOD. (District I) Kevin Woodard Traffic Engineer reviewed the Item. Agenda Report No. 98-173 In August 1997, the Pastor Harlan Buettner of the Linwood Church of the Nazarene approached the City to determine if the median at Harry and Greenwood could be removed to allow for easier access to the Church and to the buildings directly north at 1529 East Harry that the Church bought for educational purposes. At the December 17, 1997 Traffic Commission Meeting, Pastor Buettner stated that the removal of the median would allow for easier access to the Church from the east. Concerns were raised that the wheelchair ramps at the intersection were ineffective because wheelchairs could not cross Harry because of the raised curb median. The Traffic Commission discussed this matter and voted unanimously to recommend removal of a portion of the median. The Traffic Commission further recommended that the cost be borne by the City at-large because of ADA concerns about crossing the existing curbed median area. Greenwood is located one block west of Hydraulic. In this area, Harry carries approximately 12,000 vehicles per day. Removal of the raised median will facilitate access between the Church properties on both sides of Harry, and will also allow for four additional left turn traffic movements from Harry and Greenwood. Access will be improved, but traffic safety will be reduced because of the additional left turn conflicts. Regardless, staff can support the Church's request, but recommends that all costs be paid by the Church. The cost for removal of the median and replacement of the street is estimated to be $10,000. Vice Mayor Cole Vice Mayor Cole inquired if anyone wished to be heard. Harlan Buettner Harlan Buettner, pastor, explained that the Traffic Commission recommended the City pay for the removal because, now, the handicapped cannot cross the street and the Traffic Commission thought there might be an ADA violation. Council Member Ferris Council Member Ferris expressed concern about the removal as it might encourage wheel chair crossing. Motion -- Lambke moved that the median removal at the City's expense be approved. Council Member Ferris Council Member Ferris agreed that the median removal should be paid for by the City because the removal will provide access to a street, not to private property. -- carried Motion carried 6 to 0. (Knight absent) Steve Lackey Director of Public Works said the removal of the median is to improve vehicle access to a street, not to encourage pedestrian or handicap crossing. COMMERCIAL BALLOONS SIGN CODE CHANGES FOR COMMERCIAL BALLOONS. Kurt Schroeder Superintendent of Central Inspection reviewed the Item. Agenda Report No. 98-180 On December 16, 1997, the City Council heard a presentation from Ms. Susan Bastin, co- owner of a new business venture called Full Blown Promotions, Inc., concerning current City Sign Code regulations which: (1) prohibit installation of large, inflatable commercial balloon signs on roof-tops; (2) restrict ground-mounted commercial balloon signs to 128 sq. ft. in cross-dimensional area; and (3) restrict commercial balloon sign installation to certain annual special events or holiday periods. On December 16, Council directed that staff draft ordinance changes pertaining to commercial balloons and that proposed ordinance changes be reviewed by the Sign Code Technical Review Committee, CPOs and the MAPC for comment and recommendation to the City Council. The Sign Code Technical Review Committee (previously established to review the Sign Code as related to the new Unified Zoning Code adopted in March 1996) met on 1/7/98 to consider amendments to the Sign Code with respect to large, inflatable commercial balloon signs. The Committee made a number of recommendations to be forwarded on to CPOs, the MAPC and the City Council based on the Committee's previous reviews of the Sign Code, current technologies, and review of balloon sign regulations in other communities. In mid through late January, staff presented the proposed commercial balloon sign regulation amendments to all CPOs for review and comment. CPOs voted to recommend approval of the proposed amendments with the following exceptions: (1) CPOs 2,4, and 5 felt the City Council should consider either restricting or banning alcohol and tobacco advertising on commercial balloons and other signs; (2) CPO 4 thought that the size restriction should not be increased from 128 sq. Ft. to 160 sq. ft. as proposed; (3) CPO 5 thought that the base permit fee should be increased from $15 to $30; and (4) CPOs 2 and 3 expressed concern about the make-up of the Sign Code Technical Review Committee (feeling there should have been more neighborhood representation and/or CPO representation). MAPC hearings were scheduled for January 29 and February 12, 1998. At the February 12 hearing, the MAPC recommended that City Council approve the proposed Sign Code amendments as presented. In a separate motion, to be separately considered by the City Council, the MAPC also recommended that the City Council consider restrictions prohibiting the use of any sign to advertise alcohol and/or tobacco. Per review and recommendations from the Sign Code Technical Review Committee, CPOs and the MAPC, the following amendment actions are proposed: _ Amend Section 24.04.185 to include a definition for "Sign, Commercial Balloon". _ Amend Sections 24.04.060, 24.04.070 and 24.04.150 to require that commercial balloon sign companies be licensed and bonded as required for other "sign hangers". _ Amend Sections 24.04.195, 24.04.196, 24.04.197 and 24.04.198, and create a new Section 24.04.235 to restrict commercial balloon signs to placement in "LC" Limited Commercial, "GC" General Commercial, "LI" Limited Industrial, "CBD" Central Business District, and "GI" General Industrial zoning districts. _ Amend Section 24.040.070 to require that a fifteen dollar permit fee be established for each 5-day permit issued for placement of a commercial balloon sign. _ Create Section 24.04.235 to outline specific requirements and limitations for commercial balloon signs including: _ Limit any zoning lot to no more than one commercial balloon sign at any time. _ Limit commercial balloon signs to five-day permits issued no more than five (5) times per calendar year on a given zoning lot. Such five-day permits could be obtained at different times during each year or could run consecutively. In other words, a business could have a single 25-day placement during a given year, or 2 thru 5 placements at different times during the year, with total placement days not exceeding 25 days during any given year. _ Allow commercial balloon sign placement on roof-tops, but limit such roof-top commercial balloon signs to a total height above grade of 45'. This would allow balloon signs on most large single-story commercial buildings, and perhaps on some lower-profile 2-story buildings. Commercial balloon signs placed on the ground will be limited to 25' above grade. _ Limit any commercial balloon placement to no closer than 100' from the nearest lot line of an adjoining single-family or duplex zoning district. Since many smaller neighborhood convenience-type stores and restaurants are built very close to residential zones on smaller lots (often with only 10'-25' rear building setbacks), this 100' distance requirement would probably not allow roof-top placement on many of these types of businesses. The 100' would probably still allow ground-mounted placement in the front half of such zoning lots. A 100' distance requirement would rarely effect large-box commercial and similar businesses since rear setbacks are often much larger and the depth of the building structure is usually over 100'. _ Limit size of commercial balloon signs to 160 square feet as measured at the largest cross-section of the balloon. This is an increase from the 128 square foot maximum now allowed for other "temporary" signs. _ Add a number of technical requirements relating to installation standards, gases used, approved balloon materials, minimum distance from overhead power lines, minimum distance from hospital helicopter landing pads, conformance with Federal Aviation Administration location guidelines, and deflation of balloons when wind speeds exceed certain maximums. A concern which was repeatedly expressed by the Sign Code Committee, a number of CPOs and the MAPC is the potential for food and drink distributors (especially beer/liquor distributors, tobacco product distributors and/or pop distributors) to provide their clients (convenience stores, liquor stores, restaurants, etc.) with numerous balloons for promotion of their specific product/s. There are no increased costs to the City. However, newly-licensed commercial balloon sign installers will pay an annual licensing fee of $100, and and the permit fee will be increased from $5 per placement period to a minimum of $15 per placement period. The average permit fee is anticipated to be between $30-$45, which should cover OCI's cost for permit issuance, inspection and enforcement. The Superintendent of Central Inspection said one concern expressed by Susan Bastian was a preference for four (4) seven-day permits rather than the five (5) five-day permits as outlined in the proposed ordinance. Council Member Kamen left the Bench. Vice Mayor Cole left the Bench; Council Member Ferris in the Chair. Council Member Ferris Council Member Ferris inquired if anyone wished to be heard and no one appeared. Motion -- Ferris moved that the Ordinance be placed on first reading with the wording for five five- day permits changed to four seven-day permits. Motion carried 4 to 0. -- carried (Cole, Kamen, Knight; absent) ORDINANCE An Ordinance amending Sections 24.04.050, 24.04.060, 24.04.070, 24.04.150, 24.04.185, 24.04.195, 24.04.196, 24.04.197 and 24.04.198, and repealing the originals of said sections, and creating section 24.04.235 of the code of the City of Wichita, Kansas, pertaining to certain sign code regulations governing commercial balloon signs, introduced and under the rules laid over. IRB - FRIENDS PUBLIC HEARING AND ISSUANCE OF EDUCATIONAL FACILITIES REFUNDING REVENUE BONDS - FRIENDS UNIVERSITY. (District VI) Allen Bell Financial Projects Director reviewed the Item. Agenda Report No. 98-138 A. On March 3, 1998, the City Council approved the issuance of a Letter of Intent for Educational Facilities Refunding Revenue Bonds, in an amount not-to-exceed $4,725,000 million, for a six-month term to Friends University for the refunding of all outstanding balances of bond Series V, 1992. Friends University does not request a property tax abatement because of the 501(c)(3) status of the University. In order to close the refunding bond issue prior to the next interest payment date for the 1992 bonds, the University is requesting the issuance of the refunding bonds at this time. The primary purpose of the refunding issue is to take advantage of the current favorable interest rates to lower the debt service costs to the University and allow additional capital to the University which could be invested to further strengthen the University's operations. The estimated costs of the project, and the sources of funding are as follows: Sources of Funds Bond Proceeds $ 4,725,000 Uses of Funds Refund Series V, 1992 Bonds $ 4,626,932 Underwriting and Issuance Costs 94,500 Miscellaneous Costs 3,568 Total Uses of Funds $ 4,725,000 The Bonds will be purchased and marketed by Fahnestock & Co., Inc., of Kansas City, Missouri. Bond Counsel for the transaction is the firm of Gilmore & Bell. Friends has a current Equal Employment Opportunity/ Affirmative Action Plan on file with the Department of Human Services and is in compliance with all conditions of the original bond issues. Friends agrees to pay all costs of issuing the bonds and to pay the City's $2,500 annual administrative service fee for the term of the bonds. Friends does not request a tax abatement as a result of the issuance of the bonds. Bond documents needed for the issuance of the bonds will be prepared by Gilmore and Bell, P.C., bond counsel for the project. The City Attorney's Office will review and approve the form of bond documents prior to the issuance of any bonds. Motion -- Ferris moved the Public Hearing be closed and the Ordinance be placed on first -- carried reading. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) ORDINANCE An Ordinance authorizing the City of Wichita, Kansas, to issue its educational facilities refunding revenue bonds (Friends University Project), Series V 1998, in an Aggregate principal amount not to exceed $4,725,000 for the purpose of refinancing certain projects of Friends University; authorizing and approving the execution of certain documents in connection with the issuance of the bonds and authorizing certain other actions in connection with the issuance of said bonds, introduced and under the rules laid over. IRB - RAND GRAPHICS PUBLIC HEARING AND ISSUANCE OF INDUSTRIAL REVENUE BONDS - RAND GRAPHICS, INC. (District IV and V) Allen Bell Financial Projects Director reviewed the Item. Agenda Report No. 98-174. On July 11, 1995, the Council approved a Letter of Intent to issue Industrial Revenue Bonds in an amount not to exceed $5.0 million to Rand Graphics, Inc. The Council also granted Rand a 100% tax abatement for a ten-year term. In December of 1995, the Council approved the issuance of two series of bonds; Series XV, 1995 in the amount of $1,000,000 and Series I, 1996 in the amount of $1,500,000 to Rand Graphics, Inc. Proceeds from the sale of the bonds were used to construct an addition to Rand's facility at 2820 South Hoover Rd. and to purchase machinery and equipment. On February 10, 1998, the Council approved the issuance of a supplemental Letter of Intent to Rand in the amount of $985,000. This amount is necessary together with the $2,500,000 outstanding balance on the July 11, 1995 Letter of Intent to finance the costs of Rand's second phase of their project. Documents have been submitted by the law firm Hinkle, Eberhart and Elkouri to issue an aggregate amount of bonds not to exceed $3,485,000. Rand is a graphics arts and commercial print and screen products manufacturing company. Rand offers full creation and production and fulfillment services to its customers as well as complete finishing operations. Much of Rand's recent growth has come from its screen printing division. Among other items, Rand manufactures large and small banners and life size point of sale displays. Customers include Chevron, Hallmark, Inc., Chrysler Corporation, Apple Computer and RJR/Nabisco. Rand exports over 60% of its products outside the State of Kansas. Rand has a current approved EEO/AA Plan on file with the City's Human Resources Department. The cost/benefit analysis based on the fiscal and economic impact model of Wichita State University's Center for Economic Development and Business Research provided an overall Benefit-Cost Ratio of 5.37 to 1. Proceeds from the requested bonds will be used to construct a 60,000 s.f. building addition to Rand's Hoover Street facility and to purchase additional equipment to meet their capacity needs including a $1.5 million processor for multi-color printing of 10-foot wide banners; a digital printer and a screen washer. SOURCES OF FUNDS Remaining 1995 Letter of Intent $2,500,000 Supplemental Letter of Intent 985,000 Total Sources $3,485,000 USES OF FUNDS Expansion of Hoover Street Facility $1,210,000 Purchase of Printing Equipment ,275,000 Total Project: $3,485,000 The bonds will be privately placed. The firm of Hinkle, Eberhart and Elkouri, L.L.C. will serve as bond counsel in the transaction. Rand Graphics, Inc. currently employs 173 people at its Wichita facilities. Current expansion plans for Rand, forecasts an increase in employment at the Wichita facility of approximately 27 people over the next five years. If these projections are met, over $497,310 in new personal annual income will be added to the Wichita economy through wages paid to Rand's expanded work force. Rand Graphics, Inc. agrees to pay all costs of issuing the bonds and agrees to pay the City's $2,500 annual IRB administrative fee for the term of the bonds. Rand is was granted a 100% tax abatement of ad valorem property taxes on the project for a 10-year period. During the 10-year period of the requested property tax abatement, Rand will continue to pay taxes on the current facility. The real and personal property taxes paid by Rand in 1997 was $95,262. Estimated first year taxes abated on the proposed project are $84,761 of which $24,665 is the City portion, $25,037 the County/State portion, and $35,059 the U.S.D. 259 portion, based on the 1997 mill levy of 107.304 mills. Documents have been submitted to issue an aggregate amount of bonds not to exceed $3,485,000. Council Member Ferris Council Member Ferris inquired if anyone wished to be heard and no one appeared. Motion -- Gale moved the Public Hearing be closed and the Bond Ordinance be placed on first -- carried reading. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) ORDINANCE An Ordinance authorizing the City of Wichita, Kansas, to issue its industrial revenue bonds, Series IV-A, 1998 (Rand Graphics, Inc.) in the aggregate principal amount of $3,201,000 and its subordinated taxable industrial revenue bonds, Series IV-B, 1998 (Rand Graphics, Inc.) in the aggregate principal amount of $284,000 for the purpose of acquiring, constructing and equipping certain improvements to an existing manufacturing facility; prescribing the form and authorizing execution of a first supplemental trust indenture between the City and Emprise Bank, in the City of Wichita, Kansas, as trustee; prescribing the form and authorizing execution of a first supplemental lease of the project between said City and Rand Graphics, Inc.; prescribing the form of a guaranty agreement between Rand Graphics, Inc., as guarantor, and Emprise Bank, Wichita, as Trustee; prescribing the form and authorizing the execution of an assignment of site lease; prescribing and authorizing the form of an easement agreement between the City and Rand Graphics, Inc.,; prescribing the form and authorizing the execution of a bond purchase agreement among the City and Rand Graphics, Inc., and Emprise Investment Corporation, Wichita, Kansas, as purchaser of the Series IV-A, 1998 Bonds; prescribing the form and authorizing the execution of a bond purchase agreement between the City and Rand Graphics, Inc., as purchaser of the Series IV-B, 1998 Bonds; and authorizing the amendment of interest rates applicable to the City's industrial revenue bonds, Series XV, 1995 (Rand Graphics, Inc.) and the City's Industrial Revenue Bonds, Series I, 1996 (Rand Graphics, Inc.), introduced and under the rules laid over. IRB-VERMILLION, INC. PUBLIC HEARING AND ISSUANCE OF INDUSTRIAL REVENUE BONDS - VERMILLION, INC., Allen Bell Financial Projects Director reviewed the Item. Agenda Report No. 98-175. On January 6, 1998, the City Council approved the issuance of a Letter of Intent for Industrial Revenue Bonds in an amount not-to-exceed $2.0 million for a one-year period to Vermillion Incorporated. The bond proceeds will be used to finance the acquisition and renovation of existing manufacturing facilities located on the northeast corner of 47th Street South and Palisade in south Wichita. Vermillion, Inc. was also granted an 100% property tax abatement for a 5- year term on the project. The Company is requesting the issuance of the Bonds at this time. Vermillion's products are sold to customers such as Rockwell, Boeing, Learjet, Northrup, Grumman, Raytheon, Sikorsky, Sunstrand, Locked Martin and General Dynamics. Vermillion's products are sold throughout the U.S. A major use for Vermillion's products is for the upgrading of existing aircraft. To a lesser extent, the product is installed in new aircraft. Virtually all of Vermillion's product is used on aircraft sold to consumers outside of the State of Kansas. Bond proceeds will be used to purchase a building site on the northeast corner of 47th St. So. and Palisade, to construct a 38,700 s.f. manufacturing building containing 8,700 s.f. of office space and 30,000 s.f. of manufacturing space and to purchase machinery and equipment. Future expansion plans include the construction of an additional 28,000 s.f. of manufacturing space. The bonds will be underwritten and purchased by bond underwriting firm of Cooper Malone McClain, Inc. The firm of Hinkle, Eberhart & Elkouri, L.L.C. will serve as bond counsel in the transaction. The sources and uses of bond proceeds are as follows: SOURCES OF FUNDS Bond Proceeds $2,000,000 Investment Income 30,000 Tenant Funds 278,950 Total Sources $2,308,950 USE OF BOND PROCEEDS Site Acquisition $ 149,000 Construction Costs 1,780,332 Reserve Fund 120,000 Underwriting Costs 109,175 Capitalized Interest 85,000 Other Issuance Costs 65,443 Total Uses:$2,308,950 Vermillion currently employs approximately 67 people and anticipates adding another 75 employees within the next five (5) years. Vermillion has a current approved EEO/AA Plan on file with the City's Human Services Department. Vermillion Incorporated agrees to pay all costs of issuing the bonds and agrees to pay the City's $2,500 annual IRB administrative fee for the term of the bonds. Vermillion was granted a 100% abatement of ad valorem taxes for a 5-year term on the property financed with bond proceeds. A cost/benefit analysis has been provided by Wichita State University, which reflects a ratio of 1.18 for the City, 1.03 for the County, .02 for USD 259 and 15.25 for the State. Vermillion paid $16,329 in 1997 real and personal property taxes on its current facility at 4225 West 31st St. South. Existing 1997 taxes on the 47th St. So. and Palisade property is $84,620. In March of 1980, the City Council approved an IRB issue to Vermillion in the amount of $375,000. Concurrently with the issuance of new bonds, Vermillion will refund and redeem the outstanding Series III, 1980 Industrial Revenue Bonds. No new bond proceeds will be used for this purpose. Documents have been submitted to issue an aggregate amount of bonds not to exceed $3,485,000. Council Member Ferris Council Member Ferris inquired if anyone wished to be heard and no one appeared. Motion -- Rogers moved the Public Hearing be closed and the Ordinance be placed on first -- carried reading. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) ORDINANCE An Ordinance authorizing the City of Wichita, Kansas, (the issuer), to issue its industrial revenue bonds, Series III, 1998 (Vermillion Incorporated) in the aggregate principal amount of $2,000,000 for the purpose of providing funds to acquire a site and construct improvements thereon and to acquire, purchase, and install certain machinery and equipment to be located in the City of Wichita, Kansas; prescribing the form and authorizing the execution of a trust indenture by and between the issuer and the Southwest National Bank of Wichita, Wichita, Kansas, as trustee with respect to the bonds; prescribing the form and authorizing the execution of a lease by and between Vermillion Incorporated, and the issuer; prescribing the form of a guaranty agreement by and between Vermillion Incorporated, as guarantor and the Southwest National Bank of Wichita, Wichita, Kansas, as trustee; and prescribing the form and authorizing the execution of a bond purchase agreement by and between the issuer, Vermillion Incorporated, and Cooper Malone McClain, Inc., as purchaser of the bonds, introduced and under the rules laid over. JR CUSTOM METAL REQUEST FOR LETTER OF INTENT - JR CUSTOM METAL PRODUCTS, INC. (District VI) Allen Bell Financial Projects Director reviewed the Item. Agenda Report No. 98-178 On August 12, 1997, the City Council approved a tax exemption under the authority of the constitutional amendment for JR Custom Metal Products, Inc. ("JR"), a manufacturer of metal fabricated products and equipment, located at 1957 N. Mosley in north- central Wichita. The tax exemption was requested in conjunction with a proposed expansion project consisting of the construction of office and manufacturing space and the purchase of new machinery and equipment. Prior to constructing the new space, JR has determined that expansion at the North Mosley site is not feasible and has decided to relocate the business to a site at the intersection of West Street and K-42 Highway in southwest Wichita. JR is requesting a Letter of Intent from the City for the issuance of not-to-exceed $3.5 million in industrial revenue bonds ("IRBs") to finance construction of the new facility and the purchase of new equipment and machinery. JR is also requesting a 10-year 100% tax abatement on real property improvements and personal property financed with IRBs. JR Custom Metal Products, Inc., is a manufacturer of a complete line of metal fabricated products and equipment. JR specializes in the unique designing and engineering of metal products from aluminum, stainless steel, titanium and hot roll steel materials. JR has been engaged in the manufacture of metal fabricated products since 1974. JR specializes in the manufacture of material handling equipment and production support equipment for transportation and large O.E.M. companies. JR has a diversified customer base that includes manufacturers of aircraft, agricultural and construction equipment, meat processing companies and trucking companies, among others. JR estimates that 85% of its production is directly or indirectly exported outside of Kansas. The existing plant on North Mosley contains 30,000 square feet of manufacturing and office space. The new plant on West Street will contain 60,000 square feet of space, including 58,000 square feet for manufacturing. JR currently has 70 employees and expects to add another 30 new employees during the first year at the new location. The proceeds of the industrial revenue bonds will be spent as follows: Land and Facility Costs $3,100,000 Equipment and Machinery 350,000 Cost of Issuance 50,000 Total Amount of Bond Issue $3,500,000 The bonds will be privately placed with a local financial institution. The law firm of Gilmore & Bell, P.C. will serve as bond counsel. JR Custom Metal Products, Inc. is a minority-owned business. JR agrees to maintain a current EEO/Affirmative Action Plan on file with the City's Human Services Department and to submit a water conservation plan to the City prior to the issuance of IRBs. JR Custom Metal Products, Inc. agrees to pay all costs of issuing the bonds and to pay the City's $2,500 annual administrative service fee for the term of the bonds. Under the formulas contained in the City's Business Incentives Policy, JR qualifies for a 92.5% abatement of ad valorem taxes on improvements to real property and machinery and equipment financed with IRBs for five years with a second five years based on Council review. The estimated amount of taxes being abated in the first year following the issuance of the bonds is $24,550 for the City, $24,919 for the County and $34,896 for USD 259. A cost/benefit analysis was performed by WSU's Center for Economic Development and Business Research. The results of the analysis were reported to the City Council by Allen Bell, Financial Projects Director, during the review. Council Member Ferris Council Member Ferris inquired if anyone wished to be heard. Patty Koehler Patty Koehler said the expansion would open opportunities as the business continues to hire. This will also help keep jobs in the community. Motion -- Gale moved that the Mayor be authorized to sign a Letter of Intent to JR Custom Metal Products, Inc. for Industrial Revenue Bonds in an amount not to exceed $3.5 million, subject to the conditions listed below, and a 92.5% tax abatement be granted for a 5-year period, plus a second 5-year period subject to Council approval: 1. Negotiation of a Lease Agreement and Bond Ordinance. 2. Arrangements have been made for the sale/placement of the bonds. 3. Guarantees for the payment of the bonds are in place. 4. Agreement to pay the City administrative fees of $2,500 per year for as long as the bonds are outstanding. 5. Agreement to pay all costs incurred by the City for processing the bonds/application. 6. An approved Equal Employment Opportunity/Affirmative Action Plan is on file with the City prior to issuance of the bonds. 7. An approved Water Conservation Plan is on file with the City prior to issuance of the bonds. 8. Agreement to submit building and site plans to CART (City manager's Aesthetic Review Team) for review and to modify the proposed design to comply with any reasonable CART conditions or recommendations. 9. Agreement to provide the City, prior to submitting the proposed Lease Agreement, an Environmental Site Assessment (ESA) that documents the environmental conditions of the property, and an agreement that the ESA will be conducted by and independent consultant who is a recognized expert in the area. Industrial Revenue Bonds will not be issued if the ESA discloses environmental conditions that might have implications for bond purchasers under the liability provisions of the Superfund Amendments and Reauthorization Act (SARA). 10. Agreement that if the bonds are to be offered for sale to the public, the applicant will not, during the period of time the bonds are outstanding, have a commercial banking relationship with the trustee of the bonds to be issued unless the original purchaser of the bonds acknowledges in writing the existence of the relationship and waives any conflict that might exist as a result of the relationship. 11. Applicant is required to furnish copies of its annual audits to the City. 12. Cooperation with any annual compliance audit procedure the City may adopt to monitor compliance with conditions, including any annual reports required of the applicant and any inspections of the applicant's premises or interviews with the applicant's staff. 13. Commitment to achieve and maintain its proposed employment goals, and to meet its Equal Employment Opportunity/Affirmative Action goals, during the term of the tax abatement. If the applicant fails to demonstrate a good-faith effort to achieve these goals, the City may revoke the tax abatement by either imposing payments-in- lieu-of-taxes or by declining to make the annual exemption filing with the Board of Tax Appeals. All repayments of in-lieu taxes shall be redistributed to the other taxing authorities in accordance with the law. 14. Applicant is encouraged to utilize Minority-owned Business Enterprises (MBE) and Women-owned Business Enterprises (WBE) as contractors, subcontractors, engineers, architects, suppliers and vendors whenever possible. JR Custom Metal Products is requesting a Letter of Intent to issue industrial revenue bonds in an amount not to exceed $3.5 million. A tax abatement on real property taxes is being requested. -- carried Motion carried 4 to 0. (Cole, Kamen, Knight; absent) Council Member Rogers Council Member Rogers inquired about the wording of Item 14. Allen Bell Financial Projects Director stated that a redraft of a combined business incentives and IRB policy was in process and that it might be ready to present to the Council on the April 7th Agenda. WICHITA SHEET METAL AMENDMENT OF LETTER OF INTENT - WICHITA SHEET METAL SUPPLY, INC. (District I) Allen Bell Financial Projects Director reviewed the Item. Agenda Report No. 98-179 On December 16, 1997, the City Council approved the issuance of a Letter of Intent for Industrial Revenue Bonds in an amount not to exceed $2,500,000 to Wichita Sheet Metal Supply, Inc. Bond proceeds will be used to finance a the acquisition of an existing facility, the construction of a building and the purchase of machinery and equipment. The law firm of Hinkle, Eberhart and Elkouri, bond counsel for the bond issue, is requesting on behalf of the Tenant that the amount of bonds authorized to be issued be increased to $2,800,000 and that the Tenant for the bond issue be changed to WSM Properties, a general partnership. WSM Properties has requested the increase in the amount of bonds to be issued as a result of a requirement for a $300,000 bond reserve not anticipated as part of the bond issue at the time of the issuance of the Letter of Intent. The change to WSM Properties, a general partnership, as tenant is because WSM Properties is the owner of other properties leased to Wichita Sheet Metal Supply, Inc. and other companies owned by the partners. This change would keep ownership of real estate of the company under a single entity. WSM Properties, agrees to pay all costs of issuing the bonds and to pay the City's $2,500 annual administrative service fee for the term of the bonds. WSM Properties was granted an 85% abatement of ad valorem property taxes for five years with a second five years based on Council review. Council Member Ferris Council Member Ferris inquired if anyone wished to be heard and no one appeared. Motion -- Rogers moved that WSM Properties, a general partnership, be approved as tenant under the Letter of Intent; and an increase in the amount of IRBS authorized to be issued in the Letter of Intent to WSM Properties, a general partnership, be -- carried increased to $2.8 million. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) APPOINTMENTS BOARD APPOINTMENTS (for terms expiring June 30, 1999) Board of Appeals of Air Conditioning, Refrigeration, Warm Air Heating and Boilers (2 appointments - Mobile Home Mechanic and Architect - Council at large) Board of Zoning Appeals (Knight) Commission on the Status of People with Disabilities (3 appointments - Cole, Kamen, Knight) Wichita Athletic Commission (3 appointments - Council at large) Wichita Commission on the Status of Women (2 appointments - Kamen, Lambke) Motion -- Ferris appointed Mary Jeanette Lindebak (Disabilities) (Knight) and moved that -- carried the appointment be approved. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) Motion -- Ferris reappointed Doug Malone (BZA) (Knight) and moved that the appointment be -- carried approved. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) NOTICE OF VACANCY - WICHITA TRANSIT ADVISORY BOARD One vacancy (Rogers), for a term expiring June 30, 1999, due to the resignation of Brenda Gray. Appointment will be made March 31, 1998. NOTICE OF VACANCY - WICHITA COMMISSION ON THE STATUS OF WOMEN One vacancy (Lambke), for a term expiring June 30, 1999, due to the resignation of Judy Bomgardner. Appointment will be made March 31, 1998. APPOINTMENT TO CPO NW1 COUNCIL, SUBDISTRICT 1.1 The members of CPO 1 have selected James Myers, 2449 N. Grove, to fill a vacancy on the Council for a term expiring April 13, 1999. Motion -- Rogers appointed James Myers and moved that the appointment be approved. Motion -- carried carried 4 to 0. (Cole, Kamen, Knight; absent) NOTICE OF VACANCY - COMMISSION ON THE STATUS OF PEOPLE WITH DISABILITIES One vacancy (Cole), for a term expiring June 30, 1999, due to the nonattendance of Kaye Carroll. Appointment will be made March 31, 1998. NOTICE OF VACANCY - CIVIL RIGHTS AND SERVICES BOARD One vacancy (Rogers), for a term expiring June 30, 1999, due to the nonattendance of Aaron Davis. Appointment will be made March 31, 1998. PROCLAMATIONS PROCLAMATIONS. -- Days of Remembrance of the Holocaust -- Better Hearing and Speech Month -- Children and Health Care Week -- Arbor Day Motion -- carried Ferris moved that the Proclamations be approved. motion carried 4 to 0. (Cole, Kamen, Knight; absent) CONSENT AGENDA Ferris moved that the Consent Agenda be approved in accordance with the recommended action shown thereon. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) BOARD OF BIDS REPORTS OF THE BOARD OF BIDS AND CONTRACTS DATED MARCH 9, 1998, AND MARCH 16, 1998. At 10:00 a.m., on Friday, March 6, 1998, pursuant to advertisements published, bids were received, publicly opened, read aloud and tabulated for the Board of Bids and Contracts: (Ref: Bid analysis report attached to Board of Bids Minutes March 9, 1998) PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION: SEWERS, PAVING AND WATER MAINS AS PER SPECIFICATIONS 1998 Sanitary Sewer Rehabilitation Program Phase 'A' (east of Oliver, north of Central). (468-82808/620021/533354) Traffic to be maintained through construction using flagpersons and Barricades. (Council approval date 1-6-98) (Districts I & II) Insituform - $328,537.50 (Negotiated to Engineer's Estimate) 1997 Enhanced Maintenance Quickset Slurry Seal of Asphalt Streets (at various locations). (706648/405218) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 12-16-97) (District V) Beachner - $134,950.00 (Negotiated to Engineer's Estimate) 1997 Enhanced Maintenance Concrete Repairs (at various locations). (706648/405218) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 12-16-97) (District I) McFadden - $191,175.00 1998 Contract Maintenance Micro-Surface Seal of Arterial Asphalt Streets (at various locations). (132274/112000) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 12-16-97) (Districts I, II, III, IV & VI) Ballou Construction - $180,000.00 (Engineer's Estimate) Northwest Transmission Water Line - Phase 2a (north of Central, west of McLean. (448- 88894/632208/544510) Traffic to be maintained during construction using flagpersons and barricades. (Council approval date 1-6-98) (Districts V & VI) Wildcat Construction Company - $1,575,011.00 Water Distribution System to serve World Impact Addition (south of 13th, east of Hillside). (448-88963/733006/470378) Traffic to be maintained during construction using flagpersons and barricades. (Council approval date 8-19-97) (District I) KC Excavating - $25,880.00 Storm Water Sewer 465 to serve Northridge Lakes Addition (east of Tyler, north of 21st). (468-82498/751131/485148) Does not affect existing traffic. (Council approval date 7-25-95) (District V) Utility Contractors - $71,152.00 Storm Water Sewer 495 to serve Barrington Corner Second Addition (south of 21st Street, west of Ridge). (468-82784/751107/485145) Does not affect existing traffic. (Council approval date 10-28-97) (District V) Utility Contractors - $79,027.00 Ferris moved that the contract(s) be awarded as outlined above, subject to check, same being the lowest and best bid within the Engineer's construction estimate, and the Mayor be authorized to sign for the City. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) GENERAL GOVERNMENT DEPARTMENT/CENTRAL INSPECTION DIVISION: Demolition, Removal of Structure, and Cleanup of Seven (7) Properties (206334) Cornejo & Sons, Inc. - $3,382.00 (Item #1 Total Net Bid) G & G Dozer Equipment - $2,151.00 (Item #2 Total Net Bid) $1,573.00 (Item #3 Total Net Bid) Cornejo & Sons, Inc. - $3,385.00 (Item #4 Total Net Bid) G & G Dozer Equipment - $3,782.00 (Item #5 Total Net Bid) $2,014.00 (Item #6 Total Net Bid) Cornejo & Sons, Inc. - $1,888.00 (Item #7 Total Net Bid) PARK DEPARTMENT/GOLF COURSE MAINTENANCE DIVISION: Flexible 10 1/2" Out Front Commercial Mowers with 4-Wheel Drive (170258, 170266, 170274, 170282) Modern Distributing Co. - $113,832.00 (Total Net Base Bid) Option #1 - $34,000.00 (Total Net Deduction) POLICE DEPARTMENT/TRAINING DIVISION: Uniform Boots (083600) Law Enforcement Equipment Company - $100.55 (Item #1 Per Pair) $100.55 (Item #2 Per Pair) $ 66.85 (Item #3 Per Pair) $ 3.90 (Item #4 Per Pair) WATER & SEWER DEPARTMENT/WATER DISTRIBUTION DIVISION: 48" Ductile Iron Pipe (181222) U.S. Pipe & Foundry - $20,928.00* (Total Net Bid) *Plus Applicable Sales Tax PARK DEPARTMENT/LANDSCAPE & FORESTRY DIVISION: Utility Vehicle Vacuum (791921) Hollowell Products Corp. - $21,650.00 (Total Net Bid) Ferris moved that the contract(s) be awarded as outlined above, same being the lowest and best bid, and the necessary signatures be authorized. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) At 10:00 a.m., on Friday, March 13, 1998, pursuant to advertisements published, bids were received, publicly opened, read aloud and tabulated for the Board of Bids and Contracts: (Ref: Bid analysis report attached to Board of Bids Minutes March 16, 1998) PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION: SEWERS, PAVING AND WATER MAINS AS PER SPECIFICATIONS 1998 Contract Maintenance Surface Milling & Asphaltic Concrete Overlay of Asphalt Streets, and 1997 Enhanced Maintenance Surface Milling and Asphalt Concrete Overlay of Asphalt Streets (at various locations). (132282/706648/112000/405218) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 12-16-97) (Districts All) Asphalt Construction - $1,036,694.00 (Engineer's Estimate) 1998 Contract Maintenance Area Concrete Repairs (at various locations). (132357/112000) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 12-16-97) (Districts I, III, IV, V and VI) Barkley Construction - $288,750.00 (Engineer's Estimate) 1998 Contract Maintenance Quickset Slurry Seal of Asphalt Streets (at various locations). (131557/110000) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 12-16-97) (Districts I, III, IV, V AND VI) Ferguson Paving - $277,099.98 (Engineer's Estimate) Maize Court from Maize Road West to and including the cul-de-sac, and Sidewalk on the south side of Maize Court from Maize Road to and including the cul-de-sac to serve Huntington Park Addition (south of 13th, west of Maize). (472- 82896/764738/490575) Does not affect existing traffic. (Council approval date 12-19-97) (District V) Cornejo & Sons - $58,596.05 Smarsh Street from the south line of 21st Street North to the north line of Cornelison, and; Cornelison from 160 feet west of the west line of Smarsh easterly 813 feet to serve Barrington Corner Second Addition (south of 21st, west of Ridge). (472- 82884/764688/490570) Does not affect existing traffic. (Council approval date 10-28-97) (District V) Ritchie Paving - $121,693.10 1998 Contract Maintenance Preservative Seal of Asphalt Streets (at various locations). (131540/110000) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 12-16-97) (Districts V and VI) Paving Maintenance Supply - $55,639.82 (Engineer's Estimate) Ferris moved that the contract(s) be awarded as outlined above, subject to check, same being the lowest and best bid within the Engineer's construction estimate, and the Mayor be authorized to sign for the City. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) VARIOUS DEPARTMENTS/VARIOUS DIVISIONS: Hot and Cold Mix Asphalt (132225) Asphalt Construction Co. - $16.89 Group I (Cost per ton) Ritchie Paving, Inc.- $28.00 Group II; Proposal #1 (Cost per ton) - $30.00 Group II; Proposal #2 (Cost per ton) - $30.00 Group II; Proposal #3 (Cost per ton) VARIOUS DEPARTMENTS/VARIOUS DIVISION: Concrete Requirements Corcrete Ready Mix - $38.75 Item # 1 (Per cubic yard) - $49.75 Item # 2 (Per cubic yard) - $38.50 Item # 3 (Per cubic yard) - $44.50 Item # 4 (Per cubic yard) - $39.30 Item # 5 (Per cubic yard) - $45.00 Item # 6 (Per cubic yard) - $ 5.00 Item # 7 (Per cubic yard) - $ 1.00 Item # 8 (Per cubic yard) - $ 1.00 Item # 9 (Per cubic yard) - $ 2.00 Item #10 (Per cubic yard) - $ 5.00 Item #11 (Per cubic yard) FIRE DEPARTMENT/VEHICLE & BUILDING MAINTENANCE: Installation of Clear Glazing (791418) Hopper's Glass, Inc. - $23,583.00 (Total Net Bid) PARK & RECREATION DEPARTMENT/GOLF COURSE MAINTENANCE DIVISION: Miscellaneous Fertilizers (170274, 170282, 170266 and 170258) UHS/Pueblo Chemical - $19,694.40 Group I (Total net bid) Gard'N-Wise - $7,480.00 Group II (Total net bid) UHS/Pueblo Chemical - $11,029.20 Group III (Total net bid) Outdoor Equipment - $8,450.00 Group IV (Total net bid) UHS/Pueblo Chemical - $3,740.00 Group V (Total net bid) BWI - Springfield - $2,686.00 Group VI (Total net bid) UHS/Pueblo - $2,800.00 Group VII (Total net bid) - $1,312.50 Group VIII (Total net bid) VARIOUS DEPARTMENTS, BOARDS AND AGENCIES: Paper Towels, Roll Tissue and Miscellaneous Paper Products (130849) Southwest Paper Co. - $13.25* Group I; Item #1 (Per Case) - $28.05* Group II; Item #1 (Per Case) - $11.87* Group III; Item #1 (Per Case) McCune Paper Co., Inc. - $29.50** Group IV; Item #1 (Per Case) - $55.34** Group V; Item #1 (Per Case) - $29.54** Group V; Item #2 (Per Case) - $66.50** Group V; Item #3 (Per Case) - $26.53** Group VI; Item #1 (Per Case) Massco - $45.19 Group VII; Item #1 (Per Case) - $32.18 Group VII; Item #2 (Per Case) McCune Paper Co., Inc. - $40.38** Group VIII; Item #1 (Per Case) - $31.79** Group VIII; Item #2 (Per Case) - $30.50** Group VIII; Item #3 (Per Case) - $31.57** Group VIII; Item #4 (Per Case) Xpedx - $11.40 Group IX; Item #1 (Per Case) - $45.03 Group X; Item #1 (Per Case) - $25.08 Group X; Item #2 (Per Case) Huber Inc. - $36.00 Group XI; Item #1 (Per Case) *2%-10 Billing Terms **1%- 7 Billing Terms Ferris moved that the contract(s) be awarded as outlined above, same being the lowest and best bid, and the necessary signatures be authorized. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) LICENSES APPLICATIONS FOR LICENSES TO RETAIL CEREAL MALT BEVERAGES. Renewal 1998 (Consumption on Premises) Maria E. Aguirre Angela's Cafe* 901 East Central Judith A. Whitney Duffy's Lounge 2415 West 31st South *General/Restaurant -- 50% or more of gross receipts derived from sale of food. Motion Ferris moved that the licenses be approved subject to Staff review and -- carried approval. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) SUBDIVISION PLANS AND SPECIFICATIONS. There were no subdivision plans and specifications considered. PRELIMINARY ESTIMATES PRELIMINARY ESTIMATES. a. 1998 Contract Maintenance Micro-Surface Seal of Arterial Asphalt Streets (at various locations). (132274/112000) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 12-16-97) (Districts I, II, III, IV & VI) - $195,300.00 b. 1997 Enhanced Maintenance Quickset Slurry Seal of Asphalt Streets (at various locations). (706648/405-218) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 12-16-97) (District V) - $145,000.00 c. 1997 Enhanced Maintenance Concrete Repairs (at various locations). (706648/405- 218) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 12-16-97) (District I) - $244,350.00 d. Water Distribution System to serve World Impact Addition (south of 13th, east of Hillside). (448-88963/733006/470-378) Traffic to be maintained during construction using flagpersons and barricades. (Council approval date 8-19-97) (District I) - $45,000.00 e. Water Supply Line to serve Tract 1, Tract 1A, and Tract 2 (west of Greenwich, north of K-96 Freeway). (448-89212/734327/470-510) Traffic to be maintained through construction. (Council approval Date 2-24-98) (District II) - $224,100.00 f. Water Distribution System to serve Tract 1-Soccer Field & Tract 2-Regency Park Addition (west of Greenwich, north of K-96 Freeway). (448-89213/734335/470- 511) Traffic to be maintained through construction. (Council approval date 2-24-98) (District II) - $72,360.00 g. Northwest Transmission Water Line - Phase 2a (north of Central, west of McLean. (448-88894/632208/544-510) Traffic to be maintained during construction using flagpersons and barricades. (Council approval date 1-6-98) (Districts V & VI) - $3,050,048.84 h. Storm Water Sewer 495 to serve Barrington Corner Second Addition (south of 21st, west of Ridge). (468-82784/751107/485-145) Does not affect existing traffic. (Council approval date 10-28-97) (District V) - $116,344.00 i. Storm Water Sewer 465 to serve Northridge Lakes Addition (east of Tyler, north of 21st Street). (468-82498/751131/485-148) Does not affect existing traffic. (Council approval date 7-25-95) (District V) - $113,916.00 j. 1998 Sanitary Sewer Rehabilitation Program Phase 'A' (east of Oliver, north of Central). (468-82808/620021/533-354) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 1-6-98) (Districts I & II) - $395,759.15 k. Central Business District Signalization. (472-82637 710160/410-067) Does not affect existing traffic. (Council approval date 6-17-97) (District VI) - $200,000.00 l. Vest Pocket Park (south side of Douglas, between Market & Broadway). (472- 82881/791848/435-213) Does not affect existing traffic. (Council approval date 5- 20-97) (District VI) - $410,082.21 m. Doris to serve Eck Fourth, Bratcher Second, Bob Carter, Donna's Third Additions & R. A. Morris Tracts (south of 13th Street North, east of Hoover). (472-82807/764472/490-550) Streets will be closed. (Council approval date 8-12-97) (District V) - $50,290.00 Motion -- Ferris moved that the preliminary estimates be approved and filed. Motion -- carried carried 4 to 0. (Cole, Kamen, Knight; absent) EASEMENTS/DEDICATIONS EASEMENTS AND DEDICATIONS. a. Easement dated 2-8-98 from Sammy and Susan Bowlin for a tract in the SE 1/4 Sec 24 Twp 28S R1W (Lat 388 SWI Index 743344) (no cost to City). b. Two easements dated 11-13-97 From Rob Ramseyer for tracts in Rocky Creek Addition (private project Index 733915) (no cost to City). Have been filed and recorded. c. Two easements dated 11-13-97 from Rob Ramseyer for tracts in Wilson Farms Addition (private project Index 764415) (no cost to City). Have been filed and recorded. d. Dedication dated 2-9-98 from Michael and Emma Warren for a tract in R.A. Morris Tracts (11th Street Index 764464) (no cost to City). e. Easement dated 2-10-98 from Maize Road Partnership for a tract in Huntington Park Addition. (Lat 129 Westlink Index 743369) (no cost to City) f. Five easements dated 1-12-98 from the Board of Park Commissioners for tracts in The NW 1/4 Sec 17 Twp 27S R1E, Fairmount Addition, and The SE 1/4 Sec 9 Twp 27S R1E (Northeast Water Transmission, Index 632455) (No cost to City). Motion -- Ferris moved that the documents be received and filed and the City Clerk be -- carried instructed to record with the Register of Deeds. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) PETITION 100 PETITION FOR WATER DISTRIBUTION SYSTEM TO SERVE LOT 12, COMOTARA INDUSTRIAL PARK, SECOND ADDITION, (EAST OF ROCK ROAD, SOUTH OF 37TH STREET NORTH). (District II) Agenda Report No. 98-188 The signature on the Petition represents one owner that owns 100% of the improvement district. The project will extend a waterline for a fire hydrant to serve an industrial warehouse. The estimated project cost is $8,000. The funding source is special assessments. Motion -- Ferris moved that the Petition be approved and the Resolution be adopted. -- carried Motion carried 4 to 0. (Cole, Kamen, Knight; absent) RESOLUTION NO. R-98-079 Resolution of findings of advisability and Resolution authorizing construction of Distribution System to serve Lot 12, Comotara Industrial Park, Second Addition, (east of Rock Road, south of 37th Street North), in the City of Wichita, Kansas, pursuant to findings of advisability made by the Governing Body of the City of Wichita, Kansas, presented. Ferris moved that the Resolution be adopted. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) Yeas: Ferris, Gale, Lambke, Rogers. BOARDS MINUTES MINUTES OF ADVISORY BOARDS. Board of Electrical Appeals, 2-10-98 Board of Park Commissioners, 2-9-98 Board of Zoning Appeals, 12-16-97 CPO Northeast Council 1, 2-23-98 CPO Northeast Council 1, 2-23-98 CPO Southeast Council 3, 2-26-98 CPO Southwest Council 4, 2-26-98 CPO Northwest Council 5, 2-25-98 CPO North Central Council 6, 2-25-98 Civil Rights & Services (CRS) Board, 1-26-98 Commission on the Status of People with Disabilities, 2-25-98 Commission on the Status of Women, 2-4-98 Convention and Tourism Committee, January 27, 1998 MAPC, 1-29-98 Wichita Mid-Continent Airport, 2-17-98 Wichita Public Library, 1-17-98 Wichita Mid-Continent Airport, 1-20-98 Wichita Transit Advisory Board, 1-22-98 Wichita/Sedgwick County Board of Health, 2-12-98 Wichita/Sedgwick County Emergency Communications Advisory Board, 2-19-98 Motion -- carried Ferris moved that the Minutes be received and filed. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) STREET CLOSURES/USES CONSIDERATION OF STREET CLOSURES/USES. There were no street closures/uses considered. ASSESSMENT ROLLS PROPOSED ASSESSMENT ROLLS. Proposed Assessment Rolls have been prepared for 53 water projects and 39 sewer projects, and it is necessary to set a public hearing date. Informal hearing with City personnel will be held April 2, 1998. Motion -- Ferris moved that the hearing on the Proposed Assessment Rolls be set for 11:00 a.m. Tuesday, April 14, 1998, and direct the City Clerk to publish the notices of hearing at least once, not less than 10 days prior to the date of the hearing. -- carried Motion carried 4 to 0. (Cole, Kamen, Knight; absent) EASEMENT AGREEMENT EASEMENT AGREEMENT - WICHITA WATER DEPARTMENT. Agenda Report No. 98-189 Ritchie Sand Company has requested a 100-foot wide easement across the east end of the site of the Water Department's lime sludge facility. Ritchie proposes to install a surface sand pipeline across the center of the easement. The pipeline will connect a sand extraction site with their processing plant at 3500 North West Street. A conditional use permit (CU-441) was approved by the MAPC on June 26, 1997 to allow sand extraction from the site. Ritchie plans to open a lake, set a dredge in the lake, and pump the sand by pipeline back to their plant. The pipeline would be above ground except where it intersects 29th Street North and the access road to the lime operation. A 100-foot easement is necessary to access the pipe line for routine maintenance and replacement. The easement term is ten years. This corresponds to the term of the conditional use permit. Ritchie has agreed to pay $10,500 for the easement. They will be responsible for mowing and keeping the easement area clean and neat. They will not store any equipment other than pipe on the easement and will return it to its current condition at the end of the term. Where the pipeline intersect the roads, it will be encased in concrete to provide a smooth driving surface. Ritchie also agrees that they will be responsible for any sand spilled as a result of a pipeline break. Ritchie will indemnify the City against any and all damage to the Water Department's facilities (or pipelines) that may occur during installation or operation. If the area covered by this easement is needed for City purposes, Ritchie will remove or relocate the sandline at their own expense. Ritchie will pay for the installation, maintenance and removal of the pipeline and will pay $10,500 for the easement. Motion -- Ferris moved that the Easement Agreement be approved and the Mayor be authorized -- carried to execute. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) BRADLEY FAIR AGREEMENT DESIGN SERVICES FOR BRADLEY FAIR THIRD ADDITION (EAST OF ROCK ROAD, SOUTH OF 21ST) Agenda Report No. 98-190 The City Council approved the Bradley Fair 3rd Addition plat on November 25, 1997. The proposed Agreement between the City and Professional Engineering Consultants, P.A., (PEC) provides for the design of Storm Water Drain Number 134. Because PEC provided subdivision engineering services for this addition, it can expedite construction plan preparation. Payment will be on a lump sum basis of $17,000 and will be paid by Special Assessments. Motion -- Ferris moved that the Agreement be approved and the Mayor be authorized to -- carried execute. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) REGENCY PARK AGREEMENT DESIGN SERVICES FOR REGENCY PARK ADDITION AND THE NORTHEAST SOCCER FIELD COMPLEX (WEST OF GREENWICH, NORTH OF K-96 FREEWAY). (District II) Agenda Report No. 98-191 The City Council approved the Regency Park Addition and the Northeast Soccer Field Complex plat on February 24, 1998. The proposed Agreement between the City and Mid-Kansas Engineering Consultants, Inc. (MKEC) provides for the design of Water Distribution System Number 448 89212 and Water Distribution System Number 448 89213. Because MKEC provided subdivision engineering services for this addition, it can expedite construction plan preparation. Payment will be on a lump sum basis of $15,425 and will be paid by special assessments. Motion -- Ferris moved that the Agreement be approved and the Mayor be authorized to -- carried execute. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) ENVIRONMENT GROUNDWATER ENVIRONMENTAL INDEMNIFICATION AGREEMENT, GROUNDWATER MANAGEMENT DISTRICT NO. II. (All Districts) Agenda Report No. 98-192 On August 31, 1993, the Council approved and instructed staff to implement the Integrated Local Water Supply Plan recommended in the Water Supply Plan developed by Burns and McDonnell/Mid-Kansas Engineering Consultants. That plan identified cost- effective water resources that would be adequate to meet Wichita's water needs to the year 2050. On February 7, 1995, the Council approved Phase I-Project I of the Equus Beds Recharge Demonstration Project, and on November 14, 1995, the Council approved Phase I-Project 2. One of the key components needed to implement the Water Supply Plan is the performance of an environmental assessment. In many cases, when a project of this scope is undertaken, a federal agency will sponsor it, thus becoming the lead agency during the preparation of an Environmental Impact Statement. Currently, there are no Federal agencies ready to assume that role for the Water Supply Plan. Staff believes that an environmental assessment should be done and that an agency other than the City should be involved to help assure the public that the assessment is not biased towards the City. Staff has requested that Groundwater Management District No. 2, which has a major role in administering water usage in the Equus Beds, serve as the lead agency for this study. The Management District has agreed to assume this role, and is requesting the City to indemnify them for the project. The indemnification would require the City to pay any legal expenses that might fall to the Management District should there be any law suits filed regarding the environmental assessment. The indemnification should not increase the City's financial liabilities for the project, since any lawsuit concerning the environmental assessment would already include the City. Motion -- Ferris moved that the Agreement be approved and the Mayor be authorized to -- carried execute. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) CONSULTANT AGREEMENT SUPPLEMENTAL AGREEMENT FOR STORM WATER RETENTION LAKES FOR FOREST LAKES WEST ADDITION (NORTH OF 29TH STREET, EAST OF TYLER ROAD). (District V) Agenda Report No. 98-193 The City Council approved the Forest Lakes West Addition plat on September 23, 1997. On October 21, 1997, the City Council approved an Agreement with Professional Engineering Consultants, P.A. (PEC) to design sanitary sewer, water distribution system, and paving improvements for the Addition. The proposed Supplemental Agreement between the City and PEC provides for the design of storm water retention lakes for Forest Lakes West Addition (north of 29th, east of Tyler). Payment will be on a lump sum basis of $21,600. The funding source is special assessments. Motion -- Ferris moved that the Supplemental Agreement be approved and the Mayor be -- carried authorized to execute. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) CONSULTANT ENGINEER CONSTRUCTION STAKING FOR WILSON FARMS ADDITION (SOUTH OF 21ST STREET, EAST OF ROCK ROAD). (District II) Agenda Report No. 98-194 The City Council approved the Wilson Farms Addition plat on July 1, 1997. On July 29, 1997, the City Council approved an Agreement with Mid-Kansas Engineering Consultants, Inc. (MKEC) to design sanitary sewer, storm water sewer, storm water drains, water distribution system, and paving improvements for the Addition. The Design Agreement with MKEC requires MKEC to provide construction engineering services if requested by the City. The proposed Supplemental Agreement between the City and MKEC provides for the construction staking for Storm Water Drain No. 130, Storm Water Drain No. 131, and Storm Water Drain No. 134. Since this is Construction and Survey's peak workload period and due to the complexity and potential need to make changes, City staff decided to contract with MKEC for the staking. Payment will be on a lump sum basis of $31,680. The funding source is special assessments. Motion -- Ferris moved that the Supplemental Agreement be approved and the Mayor be - carried authorized to execute. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) WATER/SEWER AERATION BUDGET ADJUSTMENT FOR THE AERATION SYSTEM RETROFIT. (All Districts) Agenda Report No. 98-195 On January 14, 1997, the City Council approved the Capital Improvement Program Project (CIP) #S-507, Aeration System Retrofit. On March 18, 1997, based on a recommendation by the Staff Screening and Selection Committee, Brown & Caldwell was approved as the design engineer for this project. The aeration system at Sewage Treatment Plant #2 was installed in 1989. There was a five- year (5) warranty period on replacement parts. A two-year maintenance cycle was required which was excessive and difficult to implement. Engineering design and bids for both equipment and equipment installation have been completed. The project was bid on two (2) separate occasions, both of which exceeded the Engineer's estimate. On the second bid, the apparent low bidder agreed to perform the work at the Engineer's estimate of $1,025,000. The only option is to complete this project. The existing equipment is failing and if the project is not completed on schedule, the City will be in noncompliance with our National Pollutant Discharge Elimination System permit to discharge treated wastewater to the Arkansas River. Such noncompliance could result in fines and/or penalties being issued by the Kansas Department of Health & Environment. The approved project budget for CIP #S-507 is currently $1,800,000. With engineering fees and equipment prepurchase, the current available appropriation is $969,645.16 which is $55,565 less than the contract price for equipment installation. Funds are available in CIP #S-4 to transfer to the CIP #S-507 project budget. Staff recommends a budget transfer of $200,000 to provide for contingencies and change orders that may be required. Motion -- Ferris moved that the budget transfer of $200,000 from CIP #S-4 to #S-507 to -- carried complete the Aeration System Retrofit project be approved. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) AIRPORT TEMP NOTE SALE GENERAL OBLIGATION AIRPORT TEMPORARY NOTE SALE. Agenda Report No. 98-196. The Wichita Airport Authority ("WAA") adopted a resolution on March 16, 1998, requesting the City Council to approve the issuance of one series of general obligation temporary notes with an aggregate total not to exceed $3,655,000 for capital improvement projects at Mid-Continent Airport. The public sale of the aforementioned notes is scheduled for 10:30 a.m. on April 7, 1998, at which time sealed bids will be opened and the City Council will award the sale of the series of notes to the bidder whose proposed interest rates result in the lowest overall cost to the City. The temporary financing will be composed of General Obligation Airport Renewal and Improvement Temporary Notes, Series A-1998 (subject to AMT), in the principal amount not to exceed $3,655,000. The Series A-1998 Notes are subject to the alternative minimum tax ("AMT") because the improvements being financed directly benefit private businesses at the airports, such as the airlines. The Series A-1998 temporary notes will mature on April 29, 1999 and will be retired at that time, either with PFCs, the proceeds from the sale of permanent financing bonds or renewal notes. The Wichita Airport Authority has pledged the net income of the airport facilities for payment of the principal and interest on any and all financing to be issued. Motion -- carried Ferris moved that the Resolution be adopted. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) RESOLUTION NO. R-98-080 A Resolution of the City of Wichita, Kansas, declaring that airport capital improvements, including the reconstruction of taxiways, terminal building improvements, facility improvements, roadway improvements, utility improvements at Wichita Mid-Continent Airport, said improvements necessary or incidental to the aforesaid, have been or will be made; accepting the pledge of net income of the said airport facility to the City for the payment of permanent and temporary financing issued by the City for the costs of such airport capital improvements; directing the giving of notice of a public hearing in connection with the issuance of such permanet and temporary financing which may be issued by the City for the costs of such airport capital improvements; authorizing the issuance by the City of temporary financing in the amount of $3,655,000 for such purpose; authorizing and providing for the public sale of temporary notes of the City for such purpose; and providing for the giving of notice of the public sale, presented. Ferris moved that the Resolution be adopted. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) Yeas: Ferris, Gale, Lambke, Rogers. WATER & SEWER REV BONDS ISSUANCE OF 1998 WATER AND SEWER REVENUE BONDS. Agenda Report No. 98-197 Various Capital Improvement Program projects were approved by the City Council in 1997. At that time, the Resolution or Ordinance and Notice of Intent Certificates were not completed. Under state law, the City is required to adopt a bonding resolution and provide a Notice of Intent to issue Revenue Bonds prior to expenditure of Utility cash reserves for CIP projects. The Resolution and Notice of Intent to Issue Revenue Bonds need to be executed and published. The Resolution and Notices of Intent provide for the issuance of $21,500,000 in Revenue Bonds for the above projects. Motion -- carried Ferris moved that the Resolution be adopted. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) RESOLUTION NO. R-98-081 A Resolution of the City of Wichita, Kansas, declaring it necessary to construct, reconstruct, alter, repair, improve, extend and enlarge the water and sewer utility owned and operated by the city, and to issue revenue bonds in a total principal amount which shall not exceed $21,500,000, for the purpose of paying certain costs thereof, and providing for the giving of notice of such intention in the manner required by law, presented. Ferris moved that the Resolution be adopted. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) Yeas: Ferris, Gale, Lambke, Rogers. CENTURY II MARQUEE RET. CIP PROJECT #PB-9502 - CENTURY II MARQUEE RETROFIT. Agenda Report No. 98-198 The curent marquee was installed in 1986 and the electronics for the sign are beginning to fail. The company that built the marquee has gone out of business, the technology and electronics of the sign are out of date and parts are hard to find, and maintenance is over $12,000 per year. This project will also look at the feasibility of adding an additional message board at the Expo Hall Entrance to assist the public in finding their event. The newer sign will require less electricity to operate. The project will include hiring a consultant to evaluate the various electronic messaging systems available on the market and prepare specifications for the type of system that best fits the Century II operation. The projected savings from reduced maintenance costs and energy savings are $14,000 per year. The project is budgeted in the CIP (PB-9502) for $160,000. Motion -- Ferris moved that the Project be approved and the Resolution adopted. Motion -- carried carried 4 to 0. (Cole, Kamen, Knight; absent) RESOLUTION NO. R-98-082 A Resolution declaring it necessary to upgrade the Century II marquee and electronic messaging at Century II, that a preliminary estimate of the cost thereof be prepared; and declaring it to be the intention of the governing body to issue City of Wichita General Obligation Bonds in the amount not to exceed $160,000 to pay all or a portion of the cost thereof, presented. Ferris moved that the Resolution be adopted. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) Yeas: Ferris, Gale, Lambke, Rogers. IRB VIA CHRISTI CHANGE OF TRUSTEE BANK FOR INDUSTRIAL REVENUE BONDS - VIA CHRISTI HEALTH SYSTEM, INC. (District VI) Agenda Report No. 98-199 Bank IV Wichita has served as trustee bank in more industrial revenue bond issues over the years than any other trustee bank. During the last two years, the bank has gone through several changes as Bank IV was acquired first by Boatmen's Bank and finally by NationsBank. Shortly after finalizing the purchase of Boatmen's and Bank IV, NationsBank announced that it had sold its corporate trust business, which includes IRB trustee business, to the Bank of New York. In an effort to keep their trustee bank local, Via Christi has asked the City to approve a change of trustee bank from NationsBank to Intrust Bank. Via Christi is requesting the change of trustee for its Industrial Revenue Bond Issue, Series III, 1992 in the amount of $182,460,000. Via Christi has requested the change of trustee bank, pursuant to provisions of the bond indenture of each issue which allows tenants to initiate the change with concurrence of the issuer. NationsBank's decision to exit the corporate trust business and the companies' desire to maintain a local trustee who would serve as paying agent on the IRBs and custodian of IRB proceeds, were cited as the reasons for requesting the changes. There is no financial impact on the City. Motion -- Ferris moved that the Resolution removing NationsBank as trustee and appointing -- carried Intrust Bank as successor trustee be adopted. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) RESOLUTION NO. R-98-083 A Resolution removing NationsBank as trustee and appointing Intrust Bank as successor trustee as it relates to Industrial Revenue Bonds for Via Christi Health System, Inc., presented. Ferris moved that the Resolution be adopted. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) Yeas: Ferris, Gale, Lambke, Rogers. CAPITAL INVESTMENT CAPITAL INVESTMENT MAINTENANCE PROGRAM. (All Districts) Agenda Report No. 98-200 The 1998 Operating Budget for Public Works includes funds in the amount of $237,500 for use by Fleet and Buildings Division in the Capital Investment Maintenance Program (CIMP). These funds will be used to accomplish major repairs to facilities, not otherwise budgeted. This program provides much needed repairs, maintenance and renovations that are not otherwise possible. Funds in the amount of $237,500 are budgeted for use by Fleet and Buildings for work related to facilities. Motion -- Ferris moved that the Fleet and Buildings Portion of the Capital Investment -- carried Maintenance Program be approved. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) WICHITA TRANSIT WICHITA TRANSIT - PURCHASE OF PARATRANSIT VAN. Agenda Report No. 98-201 At the January 27, 1998 City Council meeting, Councilman Kamen presented potential service scenarios for the Wichita Transit to consider operating. One scenario included the operation of a west side van circulator service. This could be as early as May 1998. Wichita Transit has secured both federal and state funds to purchase this van. The State selected Diamond Coach of Oswego, Kansas to supply the Paratransit vans for the State through a competitive bid process. Diamond Coach has guaranteed paratransit van prices through March 31, 1998. Wichita Transit is qualified to purchase one van at this price. The Paratransit van will be purchased with grants from the FTA (80%) and KDOT (20%). The cost of this van will be $39,651. Motion -- Ferris moved that the Purchasing Manager be authorized to purchase one -- carried Paratransit Van from Diamond Coach. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) OLD TOWN PROJECT INITIATION OF IMPROVEMENTS RELATED TO HOTEL AT OLD TOWN PROJECT. (District VI) Agenda Report No. 98-202 The Hotel at Old Town, Inc. (HOT) Development Agreement requires the HOT to design and construct a limited service, extended-stay hotel with at least 107 guest rooms, on a turn-key, design/build basis, subject to fast-track design approval by the City. Under terms of the Agreement, the City will design and construct a parking facility on the City-owned surface parking lot, immediately adjacent to the north of the Keen Kutter Building, a turn-in lane on Mosley Avenue in front of the hotel entrance, and a signalized crosswalk on First Street. The City's related improvements must be completed prior to opening of the hotel. RFPs were sent to 53 design firms and six responses were received. Staff Screening and Selection Committee recommended Law Kingdon to serve as project architect for the project. Law Kingdon will subcontract with Walker and Associates for parking design consulting and Guy M. Shelly Co. for structural engineering. Law Kingdon's proposed fee, including the costs of consultants, is $90,000. The preliminary estimate of the costs of the Keen Kutter related iprovements project, including design and construction of the parking facility, street improvements and crosswalk, is $2 million. General Obligation Bond financing for the related public improvements will be included in the CIP program for 1998 funding. Motion -- Ferris moved that the project, in an amount not to exceed $2,000,000, and the contract for architectural services be approved and the mayor be authorized to -- carried sign; and the bonding Resolution be adopted. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) RESOLUTION NO. R-98-084 A Resolution authorizing the issuance of general obligation bonds of the City of Wichita, Kansas, to pay all or a portion of the costs for the design and construction of a parking facility and related improvements to serve the facility and the Keen Kutter redevelopment in Old Town, presented. Ferris moved that the Resolution be adopted. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) Yeas: Ferris, Gale, Lambke, Rogers. EXPO HALL RENOVATION EXPO HALL ROOFTOP HEATING/COOLING RENOVATION. (DISTRICT VI) Agenda Report No. 98-203 Expo Hall was built in 1984. The heating and cooling equipment consists primarily of equipment mounted on the roof. The equipment has become troublesome and undependable and even when working to capacity on occasion, it could not keep up with the load. Since the Hyatt Hotel is now involved in the use of Expo Hall, the equipment cannot keep up with the increased number of people attending functions. Several years ago, Public Works programmed $775,000 into Capital Improvement Program PB-110 to replace the troublesome equipment. The equipment is due for replacement, and has proven inadequate under the loads imposed by the increased occupancy of the spaces. An engineering firm should be selected and directed to design the replacement equipment and provide improvements to the air distribution system. Bids will be received and construction will be scheduled as soon as possible to correct the problem. Total cost of the project is $775,000. The source of funding is temporary notes, with financing cost to be repaid from transient guest tax revenues, consistent with the provisions of Charter Ordinance No. 91. Motion -- Ferris moved that the Project be approved and the Resolution be adopted. Motion -- caried carried 4 to 0. (Cole, Kamen, Knight; absent) RESOLUTION NO. R-98-085 A Resolution declaring it necessary to replace certain air conditioning equipment in the Century II convention center, lo ated at 225 West Douglas in Wichita, Kansas; directing that a preliminary estimate of the cost thereof be prepared and declaring it to be the intention of the governing body to issue City of Wichita General Obligation Bonds in an amount not to exceed $775,000 to pay all or a portion of the costs thereof, presented. Ferris moved that the Resolution be adopted. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) Yeas: Ferris, Gale, Lambke, Rogers. WEBB ROAD PUMP STATION WEBB ROAD PUMP STATION - ADDITIONAL PUMP. (DISTRICT II) Agenda Report No. 98-204. Most of the City receives water pumped directly from the Hess Pump Station located near the Water Treatment Plant. Because the elevation of the City increases in the northeast corner of the City, there is an area that the water must be pumped again in order to have adequate water pressure. There are two pump stations that provide the additional pressure to that area, the 37th St. Pump Station, located on 37th St. between Woodlawn and Rock, and the Webb Rd. Pump Station, located at 21st and Webb Rd. The demand for water in this pressure zone varies. To respond to these varied water demands, a variable speed pump was installed at the 37th St. Pump Station. Variable speed pumps were not installed at the Webb Rd. Pump Station. With increased growth in this area, the variable speed pump is in use almost constantly, and if it is out of service, there are noticeable pressure variations. To increase the capacity of the Webb Rd. Pump Station, a variable speed pump should be installed at the Webb Rd. Pump Station. This would increase the capacity of the station by about 3 million gallons per day and assure more stable pressures in area. The installation of a new variable speed pump will require engineering services. Since the cost of these services was projected to be less than $10,000, quotes were solicited from three local engineering firms. Based on the cost of the services, personnel assigned to the work, and the time frame to complete the design services, Professional Engineering Consultants is recommended for this project. The estimated cost of project is $116,000, which includes engineering services for $8,500. Funding for this project is available in the Capital Improvement Project #W-555. Motion -- Ferris moved that the project be approved and the City Manager be authorized to sign a contract with Professional Engineering Consultants. Motion carried -- carried 4 to 0. (Cole, Kamen, Knight; absent) CDBG CONTRACT AMEND CDBG CONTRACT AMENDMENT - COMMUNITY HOUSING ORGANIZATION OF WICHITA/SEDGWICK COUNTY, INC. Agenda Report No. 98-205 On June 4, 1994, the City Council approved the use of Community Development Block Grant (CDBG) funds to establish Community Housing Services of Wichita/Sedgwick County, Inc. (CHOWS), under the auspices of the Neighborhood Reinvestment Corporation. The CDBG funded services are provided in the KenMar neighborhood, bounded by 13th/Kensington, Vesta/Old Manor. The City contract provides (except for program activities involving acquisition) that the City reimburse CHOWS after expenses are paid. The agreement includes a component that allows CHOWS to loan CDBG funds to an income eligible client to refinance an existing mortgage and rehabilitate the house. The funds required to provide a refinance/rehabilitation loan are more than can be supported by CHOWS cash flow. CHOWS has requested the City provide funds based on a loan closing statement, much like a property acquisition, rather than as a reimbursement. This amendment allows the City to provide refinance/rehabilitation funds based on a loan closing statement instead of as a reimbursement. Rehabilitation funds will be escrowed until the work is completed. There is no change in amount of funds to be provided, or use of funds. Motion -- Ferris moved that the Contract Amendment be approved and the Mayor authorized to -- carried sign. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) LIQUOR TAX CONTRACTS 1998 SPECIAL LIQUOR TAX FUND CONTRACTS. (DISTRICTS I, II, III, IV AND VI) Agenda Report No. 98-206 1998 special liquor tax allocations were approved for the following programs: A New Beginning ($24,950) will provide substance abuse outpatient counseling to 95 percent minority adults and youth. Regional Prevention Center ($145,070) will provide prevention, education, information, and referral services to individuals and families with substance abuse and/or alcohol abuse problems. Big Brothers-Big Sisters of Sedgwick County ($43,000) will provide substance abuse prevention/intervention services by matching little brothers and sisters who are living with families with substance abuse problems or who are at high risk of developing substance abuse problems. Mental Health Association of South Central Kansas ($11,980), Pathway Program, will provide substance abuse prevention, education, and intervention services to children 6-17 who are children of alcoholics. Youth Development Services ($23,660) will provide one-on-one substance abuse prevention, education, intervention, referral, and supportive services to youth with a history of substance abuse or are at risk of developing a problem. Parallax Program ($69,830) will provide funds to partially fund a substance abuse residential treatment program. Mid-America All-Indian Center Indian Alcoholism Treatment Services ($51,610) provides funds for contractual outpatient substance abuse services to Native American and other low income persons in Wichita, including a special component for individuals who have been incarcerated and have substance abuse problems. Tiyospaye, Inc., Pueblo Program fof Alcohol and Substance Abuse ($15,000) will partially fund an outpatient substance abuse program for Hispanic people with limited English speaking ability and their immediate family members who have inadequate resources to secure these services for themselves. Knox Center, Inc. (formerly NEDARTS) ($35,990) will provide outpatient substance abuse treatment. DCCCA, Inc., Options ($236,480) and Women's Recovery Center ($24,910) will provide residential social detoxification, intermediate treatment, and medical services for indigent clients. Miracles, Inc., ($51,830) will provide substance abuse reintegration counseling and housing to families and risk assessment and prevention/education for the children. ADAAB recommended approval of the funding allocations. Motion -- Ferris moved that the Contracts be approved and the Mayor be authorized to -- carried execute. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) URBAN RENEWAL RELEASE RELEASE OF URBAN RENEWAL RESTRICTIONS - 727 NORTH WACO. (DISTRICT VI) Agenda Report No. 98-207 Urban Renewal Agreements and subsequent City agreements on property acquired under Urban Renewal procedures are filed with the Register of Deeds and frequently contain provisions allowing the Urban Renewal Agency or the City to enforce certain redevelopment provisions or even retake possession of the property under some circumstances. These provisions constitute a cloud on the owner's title and impact their ability to sell the property. Periodically, requests are received concerning properties so encumbered. Most often, the owner or title company is seeking a certificate of completion. This document certifies that the City is satisfied that the property has been redeveloped in accordance with the specific contractual URA requirements. The City is required to provide such a document upon request as the redevelopment conditions have been met. Transamerican Management Company has requested a Certificate of Completion of Improvements releasing a parcel from Urban Renewal requirements. The site, 727 N. Waco, Park Plaza "A" has been developed into a 5 story office complex with surface parking adjacent to the office building which satisfies the URA contractual requirements that the site be redeveloped for such use. The Law Department has reviewed the past URA contracts and agreements including the Park Plaza "A" Urban Renewal Plan and identified the appropriate conditions to be met and has provided the Certificate of Completion of Improvements. Motion -- Ferris moved that the Certification Of Completion of Improvements be approved and the Mayor be authorized to sign; and the City Clerk be authorized to record with -- carried the Register of Deeds. Motion carried 4 to 0. (Cole, Kamen, Knight; absent) PROPERTY ACQUISITION ACQUISITION OF PORTION OF PROPERTY LOCATED AT 654 NORTH GORDON (TRACT #13) FOR THE CENTRAL AVENUE IMPROVEMENT PROJECT FROM WEST STREET TO MCLEAN. (DISTRICT VI) Agenda Report No. 98-208 The Central Avenue Improvement Project from West Street to McLean Boulevard, approved by Council on September 17, 1996, requires the partial acquisition of fifteen tracts along Central Avenue. One of these tracts includes Tract #13 which is owned by Anita F. Tyson. The subject tract contains approximately 112.5 square feet and will not affect any improvement on the remaining property. Due to the small size of the taking, the value of the tract is minimal. Market studies of the area indicate a value of $4.00 per square foot or $450. The property owner has agreed to sell the property to the City for this amount. The 1996 Capital Improvement Program includes $50,000 to acquire the necessary right-of- way for the project along Central. The funding source is General Obligation Bonds. The budget of $500 includes $450 for the acquisition and $50 for closing costs. The prior approved budget was $33,510. The $500 would increase the total expenditures to date to $34,010. This is the sixth acquisition for the project, leaving 8 properties to be acquired through negotiations or eminent domain. Motion -- Ferris moved that the budget and the Contract be approved; and the Mayor be -- carried authorized to sign the necessary documents. SURPLUS PROPERTY SURPLUS PROPERTY GENERALLY LOCATED NORTHEAST OF 117TH STREET NORTH AND 199TH STREET WEST (BENTLEY) Agenda Report No. 98-209 The property under consideration is generally located Northeast of 117th St. North and 199th St. West near Bentley, and is more properly and legally described as follows: The West ½ of the Southeast 1/4 except the Railroad Right of Way, and the Southwest 1/4 of Section 5, Township 25 South, Range 2 West. This Property was purchased in the mid 1950's, and contains three water supply wells in the Equus Bed well field which were drilled on the property. The property has been leased for farming. The property contains a total of 240 acres; however, the City will retain 5 acres around each of the three wells, plus 5 acres around a large existing storage shed leaving approximately 220 acres for sale. The Water Department has recommended that the unneeded property be declared as surplus. If declared surplus, the property will be offered for sale to the general public. All City departments and local government entities have been notified and have shown no interest in the property. The prior farm lease has paid an average net income of $6,850 per year. The City will receive cash consideration for the sale of the property. The surplus and sale of this property to a private party will place additional value into the tax base. Motion -- Ferris moved that the property be declared as surplus and designated as available -- carried for