MINUTES OF THE MEETING OF THE CITY COUNCIL Wichita, Kansas, January 6, 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, Rogers; present. *Council Member Kamen absent. Chris Cherches, City Manager; Gary Rebenstorf, Director of Law; Pat Burnett, City Clerk; present. The invocation was given by Council Member Gale. 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 December 23, 1997, were -- approved approved 6 to 0. (Kamen absent) AWARDS AND PRESENTATIONS *Council Member Kamen present. SERVICE CITATIONS Mayor Knight presented Distinguished Service Citations to those present. RHODES SCHOLARSHIP Recognition of Rhodes Scholarship Winner. Jonathan Winkler, son of Mary Ann and Dana Winkler (Assistant City Attorney), was recognized for winning a Rhodes Scholarship and for many additional outstanding achievements. PUBLIC AGENDA PUBLIC COMMENTS COMMENTS BY NATHANIEL WHITERS. Mr. Whiters arrived late and the Council returned to this Item. Nathaniel Whiters Nathaniel Whiters said claims he had against two city employees from incidents that occurred in November of 1990 and in May of 1991 had not been resolved and he wanted justice to prevail. Mr. Whiters also said that in February of 1992 he was shot and a person was apprehended shortly after the shooting. Upon release from the hospital, Mr. Whiters queried the Police Department as to why the person who shot him was released from jail and was told "it was his word against mine." Mr. Whiters is not satisfied that all avenues were pursued in resolving his case and, again, demands that justice prevail. Mayor Knight Mayor Knight asked that Mr. Whiters submit any paperwork he has to the City Manager; the comments be referred to the City Manager; and that the City Manager review the matter and report back to the City Council. UNFINISHED BUSINESS CONDEMNATION REPAIR OR REMOVAL OF DANGEROUS AND UNSAFE STRUCTURE - 1136 NORTH MARKET. (District VI) Continued from December 9, 1997. Kurt Schroeder Superintendent of Central Inspection reviewed the Item. Agenda Report No. 97-1042 A. This property was first cited for violations on March 23, 1973. The current owner, Mr. Lybrand has owned it since that time. Many notices were issued against the property, which was owner occupied until about a year ago. In May of 1992, court action was initiated and the owner was ordered to make the repairs to the property. The property was re-roofed, but no other exterior repairs were noted. Since April 18, 1997, several notices were issued and on August 26, 1997, a pre-condemnation letter was issued. Formal condemnation was initiated on September 9, 1997. At the October 6, 1997, BCSA hearing, the owner did not appear, and the BCSA recommended 10 days to start demolition and an additional 10 days to complete. On December 8, 1997, Mr. Lybrand met with staff and requested time to repair the structure. He had contacted a contractor to give him a bid for repairs. This case was to be before the Council on December 9, 1997, but staff requested a deferral until January 6, 1998, to allow Mr. Lybrand to secure a bid from the contractor. Since then staff has attempted to make contact with Mr. Lybrand through his friend Mr. Easters. A message was left for him to contact staff, but we have not had any contact to date. Mr. Lybrand has not contacted staff with information about the status of the repairs. Staff inspected the property on December 30, 1997, and no repairs had been made. The structure was secure. There were inoperable vehicles, junk and debris, bulky waste, tree waste and tires on the premises. The first half of 1997 taxes have been paid. The second half is not due until June 20, 1998. The owner has been notified of the date and time of this Hearing. Mayor Knight Mayor Knight inquired if anyone wished to be heard. Council Member Rogers momentarily absent. Ted Baker Ted Baker said he thought he could get the bids to get the work done. Coy Lybrand Coy Lybrand said the taxes and utilities are paid. Mr. Lybrand said he has been unable to do anything because he has diabetes and cancer and has to have all the work done by someone else. 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 of 30 days to repair or sell the property be approved with the stipulation that Mr. Lybrand talk with the Historic Midtown Association to see if they can be of assistance; 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 these findings. Motion -- carried carried 7 to 0. RESOLUTION NO. R-98-001 A Resolution finding that the structure located on Lots 228, 230, and the south half of Lot 232, on Market Street, Hyde and Ferrell's Addition to Wichita, Sedgwick County, Kansas, commonly known as 1136 North Market, 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 7 to 0. Yeas: Cole, Ferris, Gale, Kamen, Lambke, Rogers, Knight. Council Member Cole left the Bench. IRB - BG PRODUCTS PUBLIC HEARING AND ISSUANCE OF TAX EXEMPT INDUSTRIAL REVENUE BONDS - BG PRODUCTS, INC. (District VI) Continued from December 23, 1997. Discussions as to the tax issues are underway between Bond Counsel and the Tenant's special counsel, and the issues have not yet been resolved. Depending on the ultimate conclusions reached, republication of hearing notices, and possibly a substantial revision of bond documents will be needed before the bond issue is actually ready for Council action. Accordingly, and upon recommendation of Bond Counsel, the Item should be deferred indefinitely until all necessary issues are resolved. Motion -- Knight moved that this Item be deferred until all necessary issues are resolved. -- carried Motion carried 6 to 0. (Cole absent) Council Member Cole present. NEW BUSINESS WATER PETITION PETITION TO INSTALL A WATER DISTRIBUTION SYSTEM TO SERVE AN AREA ALONG LEGION, NORTH OF 57TH STREET NORTH. (District VI) Mike Lindebak City Engineer reviewed the Item. Agenda Report No. 98-001. The signatures on the Petition represent 86% (5 of 8 ownerships) of the improvement district area. CPO Council 6 considered the Petition on December 10, 1997. The Council voted 5-0 to recommend approval. The improvement district is developed primarily with single- family homes on large, suburban type lots. The estimated project cost is $21,600, with the total assessed to the improvement district. The proposed method of assessment is the fractional basis. The estimated assessment to individual properties is $3,600 per tract. Motion -- Cole moved that the Petition be approved and the Resolution be adopted. -- carried Motion carried 7 to 0. RESOLUTION NO. R-98-002 Resolution of findings of advisability and Resolution authorizing construction of Water Distribution System Number 448-89226 (west of Seneca, north of 57th 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. PAVING PETITION PETITION TO PAVE WACO STREET FROM 32ND STREET NORTH TO 33RD STREET NORTH. (District VI) Mike Lindebak City Engineer reviewed the Item. Agenda Report No. 98-002. The signatures on the petition represent 55% (9 of 19 ownerships) of the improvement area. CPO Council 6 considered the project on December 10, 1997. The Council voted 7-0 to recommend approval. Waco, from 32nd Street North to 33rd Street North is a sand road that is difficult to maintain and drains poorly. It serves a neighborhood of modest, single family homes. The estimated project cost is $105,000. The funding source is Special Assessments. The method of assessment is the square foot basis. The estimated rate of assessment to individual properties is $00.45 per square foot of ownership. Motion -- Cole moved that the Petition be approved and the Resolution be adopted. -- carried Motion carried 7 to 0. RESOLUTION NO. R-98-003 Resolution of findings of advisability and Resolution authorizing paving of Waco, from 32nd North to 33rd North (Project Number 472- 82899) 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. WATER PETITION PETITION FOR WATER DISTRIBUTION SYSTEM TO SERVE AN AREA ALONG SABIN, NORTH OF HARRY. (District IV) Mike Lindebak City Engineer reviewed the Item. Agenda Report No. 98-003. The signatures on the petition represent 67% (11 of 16 ownerships) of the improvement district area. The petition was prepared in November 1996. In the intervening months, a waterline was extended to serve two of the properties in the original improvement district. Those two properties have been deleted from the improvement district. CPO Council 4 considered the petition on December 11, 1997. The Council voted 9-0 to recommend approval. The area around Sabin, north of Harry is a mixture of commercial and residential properties. The existing water source is private water wells. The estimated project cost is $76,000, with $68,000 assessed to the improvement district and $8,000 paid by the Water Utility. The proposed method of assessment is the square foot basis. The estimated assessment rate to individual properties is $00.21 per square foot of ownership. The utility share is for the cost of eliminating a dead-end main. Motion -- Gale moved that the Petition be approved and the Resolution be adopted. -- carried Motion carried 7 to 0. RESOLUTION NO. R-98-004 Resolution of findings of advisability and Resolution authorizing construction of Water Distribution System Number 448-89225 (at Sabin north of Harry) in the City of Wichita, Kansas, pursuant to findings of advisability made by the Governing Body of the City of Wichita, Kansas, presented. Gale moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cole, Ferris, Gale, Kamen, Lambke, Rogers, Knight. IRB - VERMILLION REQUEST FOR LETTER OF INTENT FOR INDUSTRIAL REVENUE BONDS - VERMILLION, INC. (District IV) Allen Bell Financial Projects Director reviewed the Item. Agenda Report No. 98-004. Vermillion, Inc. is a Wichita corporation which manufactures electrical and communication cables and wire harness assemblies for the aerospace and military markets. The company has been in business in Wichita for over 30 years, located at 4225 West 31st St. So. in southwest Wichita. Vermillion has submitted a request for the issuance of a Letter of Intent for Industrial Revenue Bonds in an amount not to exceed $2,000,000 to purchase land, construct and equip a manufacturing facility and to purchase machinery and equipment as part of a project to relocate and expand their manufacturing operations. Vermillion requests that the Letter of Intent be issued for a one-year term so that the bonds may be issued simultaneously with the completion of the acquisition and construction of the project. Vermillion also requests a 100% 10-year property tax abatement on the IRB-financed project. Vermillion' products are sold to customers such as Rockwell, Boeing, Learjet, Northrup, Grumman, Raytheon, Sikorsky, Sunstrand, Lockheed 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 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 is requesting a 100% abatement of ad valorem taxes on the property financed with bond proceeds. Under the City's Business Incentives Policy, Vermillion would qualify for a 100% tax abatement on the project. However, City Staff recommends a 5-year term for the tax abatement, without the possibility of an extension. This recommendation is based on the fact that the company is not an aircraft manufacturer nor is the facility to be a corporate headquarters of a national corporation. 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. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Gale moved that the issuance of a Letter of Intent to Vermillion, Inc. for Industrial Revenue Bonds in an amount not to exceed $2.0 million for a 1-year term be approved and the Mayor be authorized to sign; and a 100% property tax abatement for a five-year term be granted subject to the following conditions: 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 an 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. 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. -- carried Motion carried 7 to 0. IRB - WICHITA TOOL EXTENSION OF INDUSTRIAL REVENUE BOND TAX EXEMPTION - WICHITA TOOL, INC. (District IV) Allen Bell Financial Projects Director reviewed the Item. Agenda Report No. 98-005. On September 10, 1991, the City Council approved the issuance of $1,600,000 in Industrial Revenue Bonds, Series VI-1991, to Wichita Tool Company, Inc. (Wichita Tool). The proceeds from the sale of the bonds were used to acquire and remodel Wichita Tool's current facility, located at 2100 South West Street in southwest Wichita, and to purchase new equipment. The current facility replaced Wichita Tool's former facility located at 6053 South Seneca which was destroyed by a tornado in April of 1991. Wichita Tool was granted an 100% tax abatement on bond-financed property for a 5-year period subject to review at the end of five years to extend for another five years. The initial 5-year tax exempt period expired December 31, 1996 and Wichita Tool has submitted a request that the tax exemption granted by the City Council be extended for a second five year period. As a result of the bond issue and tax abatement, Wichita Tool committed to undertake a significant business expansion, starting in 1991, including: 1991 Commitment 1997 Status Purchase & remodel existing facility purchase & remodel facility for $901,021, additional remodel in next five years for $106,630 for a total cost of $1,007,651 Purchase new equipment $609,746 of new equipment purchased at the time of the bond issue and an additional $751,471 purchased from 1992 to the present for a total investment of $1,361,217 Hire 27 new people Employment down from 1991 level of 31 to current level of 26 Wichita Tool reports that their current level of employment is 26 employees with an annual payroll of about $774,740. The Human Services Department reports that Wichita Tool had 19 employees as of August, 1997 of which 2 were females. Following issuance of the bonds in 1991, Wichita Tool added 12 employees to its workforce by September, 1994. During 1995 to 1997, Wichita Tool lost workers when the aircraft companies began expanding their workforces by not being able to match their wage and benefit packages. To attract new workers, Wichita Tool is recruiting in trade magazines, the Internet and in other cities. Wichita Tool has also implemented a 401k retirement package and upgraded company contributions to employee life and medical insurance benefits. Wichita Tool's wages have been increased an average of 16.5% for their engineering and manufacturing employees since September, 1991. Wichita Tool has subleased a portion of the facility and the combined workforce at the facility of Wichita Tool and the tenant companies totals 42 employees. In 1997 Wichita Tool paid $15,069 in real and personal property taxes. The abated real and personal property taxes on the property was estimated to be $46,086 for 1991. Section 7.5 of the lease provides that the City Council reserves the right to terminate the exemption at the end of the first five year period. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Allen Bell Financial Projects Director, responding to a question, said there have been no reductions in tax exemptions for the second five-year period when some of the requirements were not met for the first five-year period. Consensus of the Council was that this matter should be discussed by the Council in the future. Council Member Ferris momentarily absent. Motion -- Gale moved that the tax abatement on Wichita Tool Company, Inch's IRB-financed -- carried property be extended for a second five-year period. Motion carried 7 to 0. Motion -- carried Knight moved that Item No. 1 be reconsidered. Motion carried 6 to 1. Ferris - No. (The Council returned to Item No. 1. Action is shown in Agenda order.) HUD - GRANTS REVIEW AMENDMENT TO HUD CITIZEN PARTICIPATION PLAN - GRANTS REVIEW COMMITTEE. Chris Cherches City Manager reviewed the Item. Agenda Report No. 97-978 B. On November 25, 1997, the City Council approved modification of the composition of the Grants Review Committee. The City Council kept the total number of Committee members at thirteen but increased neighborhood association representatives from one to two and added a large and small business representative. The City Council also initiated the required thirty day public comment period to amend the HUD Consolidated Plan, Citizen Participation Plan, to reflect the changes in the Grants Review Committee membership. The thirty day public comment period expired December 28, 1997. Comments were received from the Citizen Participation Organization and the Human Services Board. Small and large business nominations were solicited. The City Council is requested to select one small and one large business representative and approve the appointments to the Grants Review Committee. In the event one of the large business nominees is unable to serve, it is requested the City Council authorize the City Manager to appoint a replacement. The City has completed the required thirty day public comment period. The City Council may proceed with adoption of the amendment to the Citizen Participation Plan and appointments to the Grants Review Committee. Mayor Knight Mayor Knight inquired if anyone wished to be heard. Daniel Clark Daniel Clark, former CPO Member, inquired as to why small and large business representation was needed on the Committee. Mr. Clark also said he was disappointed in the decrease in CPO representatives. Council Member Cole Council Member Cole said there are still six CPO representatives because the Wichita Independent Neighborhoods representatives are also CPO members. Business representation is needed because there are numbers of applications which need to be supported but not from CDBG moneys. Council Member Rogers Council Member Rogers stated that there has been a substantial effort to involve people in City matters and this is another means of adding voice to decisions. Business representation adds perspective to the Grants Review Committee. Representation is needed from all parts of the community. Council Member Kamen Council Member Kamen said he has a problem with some CPO districts not being represented. Council Member Lambke Council Member Lambke stated that, as long as CPO Councils exist, they should all play a part in this process. Mayor Knight Mayor Knight said the City is becoming so segmented that it is not working together. Everyone and everything should work together for the whole of the community. Motion -- Rogers moved that the comments be received; the amendment to the Citizen -- carried Participation Plan be approved. Motion carried 5 to 2. Kamen, Lambke - No. Motion -- Rogers moved that the Small Business Nominee, Anita Merrihew, be appointed. -- carried Motion carried 7 to 0. Council Member Rogers Council Member Rogers suggested the Large Business appointment be deferred until both nominees can be contacted and confirmed. Motion -- Cole moved that June Bailey and Larry D. Bush (Wichita Independent Neighborhoods), Jim Ruane (CPO Council 2), Shirley Wilhite (CPO Council 3), Sandra Whittington (CPO Council 5), Cathy Landwehr (CPO Council 6), Irene Hart (Sedgwick County), Pat Hanrahan (United Way), Lee Parker (Wichita State University), Dr. Dwight Jones (USD 259), and Delora Donovan (Human Services -- carried Board), be appointed. Motion carried 7 to 0. Mayor Knight Mayor Knight requested the Large Business nomination information by the January 13, 1998, Council meeting. CITY COUNCIL AGENDA PROCLAMATIONS PROCLAMATION -- Youth Hockey Week Motion -- carried Knight moved that the proclamations be authorized. Motion carried 7 to 0. 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) Commission on the Status of People with Disabilities (5 appointments - Ferris, Gale, Kamen, Knight-2) Group Life Insurance Board (2 appointments - Council at large) Library Board (Cole) Sister Cities Advisory Board (Knight) Wichita Athletic Commission (3 appointments - Council at large) Wichita Commission on the Status of Women (2 appointments - Kamen, Lambke) Mayor Knight Mayor Knight requested suggestions for appointments the the Commission on the Status of People with Disabilities. There were no appointments made. APPOINTMENT TO THE WICHITA-SEDGWICK COUNTY BOARD OF HEALTH It is necessary that a certified veterinarian be appointed to the board for a term expiring June 30, 1999. There was no appointment made. NOTICE OF VACANCY - WICHITA COMMISSION ON THE STATUS OF WOMEN One vacancy (Kamen), due to the resignation of Debra J. Foster, for a term expiring June 30, 1999. Appointment will be made January 27, 1998. NOTICE OF VACANCY - COMMISSION ON THE STATUS OF PEOPLE WITH DISABILITIES One vacancy (Cole), due to the resignation of Kay Carroll, for a term expiring June 30, 1999. Appointment will be made January 27, 1998. NOTICE OF VACANCY - LIBRARY BOARD One vacancy (Gale), due to the resignation of Dennis Galaway, for a term expiring June 30, 1999. Appointment will be made January 27, 1998. CONSENT AGENDA Knight moved that the Consent Agenda, except Items 31 and 32, be approved in accordance with the recommended action shown thereon. Motion carried 7 to 0. BOARD OF BIDS REPORT OF THE BOARD OF BIDS AND CONTRACTS DATED JANUARY 5, 1998. At 10:00 a.m., Friday, January 2, 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 January 5, 1998) PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION: SEWERS, PAVING AND WATER MAINS AS PER SPECIFICATIONS Bicycle/Pedestrian Path along the east side of McLean Boulevard from Central to 13th Street (along McLean and the Arkansas River from Central to 13th Street). (472-82619/785485/440079) Traffic to be maintained through construction. (Council approval date 12-19-95) (Districts IV and VI) Ferguson - $196,694.00* *Kansas Department of Transportation (KDOT) has concurred in award to Ferguson Knight moved that the contract 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 7 to 0. Water Distribution System to serve Bradford North Addition (west of Tyler, south of 29th Street North). (448-88983/734160/470494) Does not affect existing traffic. (Council approval date 10-28-97) (District V) WB Carter Construction Co., Inc. - $131,002.00* Knight moved that the previous award to Nowak Construction be rescinded and the contract award be redirected as outlined above, subject to check, and the Mayor be authorized to sign for the City. Motion carried 7 to 0. PUBLIC WORKS DEPARTMENT/MAINTENANCE DIVISION: Construction Brooks Landfill Phase I, Groundwater Remediation System (131300) Dondligner & Sons Construction CO., Inc. - $350,000.00 (Total Base Bid) Bid Alternative B2: -$2,910.00 Knight 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 7 to 0. LICENSE APPLICATIONS APPLICATIONS FOR LICENSES FOR ADULT ESTABLISHMENTS/SERVICES. Renewal Ronald H. Groves Groves Party Store9605 East Kellogg Valerie Washington Camelot Theater1519 South Oliver Motion -- Knight moved that the licenses be approved subject to Staff review and -- carried approval. Motion carried 7 to 0. APPLICATIONS FOR LICENSES TO RETAIL CEREAL MALT BEVERAGES. Renewal 1998 (Consumption on Premises) Candice Hughes Royal Lounge 523 South Main Robert D. Morey Morey's Deli and Keno*3316 South Broadway Vernon J. Blasi Blasi Tire Center, Inc.11209 West 54 Highway Lawrence L. Lao Lotus Garden Restaurant*2135 West 21st Street (Consumption off Premises) Chuong Duc Le Le Enterprises, L.L.C.1336 North Broadway dba Broadway Supermarket *General/Restaurant -- 50% or more of gross receipts derived from sale of food. Motion -- Knight moved that the licenses be approved subject to Staff review and -- carried approval. Motion carried 7 to 0. PLANS AND SPECS. PLANS AND SPECIFICATIONS. a. Lateral 365, Southwest Interceptor Sewer to serve Chitwood Addition (south of 47th Street South, east of West Street). (468- 82587/742650/480-357) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 04-02-96) (District IV) b. 1997 Main Replacement Program - Group I (Sleepy Hollow) (north of Douglas, east of Hillside). (448-89194/634808/544-135) Traffic to be maintained during construction using flagpersons and barricades. (Council approval date 1-14-97) (Districts I and II) c. Water Supply Line in 29th Street North from Ridge Road to Hoover and in Hoover from 29th Street North to 25th Street North (29th & Hoover). (448-89189/635433/544-643) Traffic to be maintained during construction using flagpersons and barricades. (Council approval date 01-14-97) (District V) Motion -- Knight moved that the plans and specifications be approved and the City Clerk be instructed to advertise for bids to be submitted to the Board of Bids and -- carried Contracts by 10:00 a.m., January 16, 1998. Motion carried 7 to 0. SUBDIVISION PLANS AND SPECIFICATIONS. a. Red Brush (south of 21st, east of Rock) Wilson Farms, Bradley Fair 2nd & Bradley Fair 3rd Additions from the north line of Wilson Estates Parkway to the south line of 21st; Wilson Estates Parkway from the east line of Bradley Fair Parkway to the east line of Red Brush; Deceleration Lane for eastbound traffic; Left Turn Lane for westbound traffic on 21st Street for entrance to Red Brush, and; Sidewalks on the wesst side of Red Brush from the north line of Wilson Estates Parkway to the south line of 21st Street, and on the north side of Wilson Estates Parkway from the east line of Bradley Fair Parkway to the west line of Red Brush. (472-82843/764415/490544) Traffic to be maintained through construction. (Council approval date 7-1-97) (District 2) Motion -- Knight moved that the plans and specifications be approved and the City Clerk be instructed to advertise for bids to be submitted to the Board of Bids and -- carried Contracts by 10:00 a.m., January 16, 1998. Motion carried 7 to 0. a. Water Distribution System to serve Country Meadows West Addition and Bay Country Addition (88212)(south of Central, west of 119th Street West) (along Central, west of 119th Street West). (448-89086/448- 88212/733774/734178/ 470455/470495) Does not affect existing traffic. (Council approval date 3-4-97/6-9-87) (District 5) Motion -- Knight moved that the plans and specifications be approved and the City Clerk be instructed to advertise for bids to be submitted to the Board of Bids and -- carried Contracts. Motion carried 7 to 0. PRELIMINARY ESTIMATES PRELIMINARY ESTIMATES. a. South Broadway Viaduct over the Union Pacific Railroad (south of 31st Street South at Broadway). (472-82828/715474/415-061) See Special Provisions. (Council approval date 6-10-97) (District III) - $2,150,000.00 b. Water Distribution System to serve Bradford North Addition (west of Tyler, south of 29th Street North). (448-88983/734160/470-494) Does not affect existing traffic. (Council approval date 10-28-97) (District V) - $335,000.00 c. Lateral 128, Westlink Sewer to serve Bradford North 3rd Addition (south of 29th, west of Tyler). (468-82749/743260/480-417) Does not affect existing traffic. (Council approval date 7-8-97) (District V) - $157,000.00 d. Lateral 122, Westlink Sewer to serve Bradford North Addition (west of Tyler, south of 29th Street North). (468-82565/743286/480-419) Does not affect existing traffic. (Council approval date 10-28-97) (District V) - $330,000.00 e. Storm Water Drain #133 to serve Bradford North Addition (west of Tyler, south of 29th Street North). (468-82780/751099/485-144) Does not affect existing traffic. (Council approval date 12-16-97) (District V) - $390,000.00 f. Nevada Street from the north line of Central to the south line of Elm (west of West Street, north of Central). (472-82724/763664/490- 469) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 5-14-96) (District V) - $86,267.00 g. Knight from First to Second Streets - Mt. Carmel Gardens Addition (north of First Street, east of West Street). (472- 82772/764035/490-506) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 10-8-96) (District IV) - $96,600.000 h. Tracy from First to Second Streets to serve Orchard Park and Parkwilde Additions south of Central, west of West Street). (472- 82774/764043/490-507) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 10-08-97) (District IV) - $135,890.00 i. Baehr Street from Douglas to First Street North - Parkwilde Addition (west of West Street, north of Douglas). (472- 82771/764050/490-508) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 10-8-96) (District IV) - $140,610.00 j. Water Main in Central Avenue from Greenwich to 127th Street East (east of Greenwich, north of Central). (448-89190/635425/544-642) Traffic to be maintained during construction. (Council approval date 1-14-97) (District n/a) - $243,445.95 Motion -- Knight moved that the preliminary estimates be approved and filed. Motion -- carried carried 7 to 0. STATEMENTS OF COST STATEMENTS OF COST (CHESNEY). a. Constructing Tyler Road Paving Improvements: Tyler Road from the north line of Bradford South Addition to the south line of Bradford South Addition (north of First Street). - $133,162.00. (706077/405-161) b. 27th Street North and Parkwood from the east line of Beacon Hill to the east line of Beacon Hill, and Parkwood Court from the east line of Parkwood to and including cu-de-sac to serve The Courts II Addition - $218,516.00. (605980/490-072) c. Pawnee from Maize Road to the east line of the plat, Wilderness at the Park - $95,605.00. (763003/490-403) d. Pawnee from Maize Road to Yellowstone - $45,675.00. (763011/490-404) e. Tyler Road paving improvements; Tyler Road from the north line of Sterling to the south line of Lot 1, Block 2, Northridge Lakes, Second Addition (north of 21st Street) - $293,608.00 (763391/490-442) f. Tyler Road paving improvements; a left turn lane from the south line of Meadow Pass as platted in Northridge Lakes to the north line of Central Park as platted in Bradford South Addition together with a decel lane to serve Meadow Pass - $33,976.00. (763458/490-448) g. Constructing University from east line of Ridge Road to west line of Dugan Right-of-way, Summitlawn from south line of Lot 4, Block F, Westerlea Village; Scouller from south line of Maple to north line of Taft Right- of-Way, Ralstin from south line of Maple to north line of Taft Right-of-Way, Howe from south line of Maple to north line of Taft Right-of-Way; Fairhaven; Winterset from south line of Maple to north line of Taft Right-of-Way, and Winterset Court from #6514-#6524 and #424-#443, Westerlea Village Addition - $596,863.00. (763565/490-459) h. Shadowridge from the west line of Parkwood, west to the east line of Beacon Hill Road; and Shadowridge Court adjacent to Lots 1 through 10, Block 2, of Meadow Oaks Second Addition - $191,543.00. (763623/490-465) i. Pepperwood Circle adjacent to lots 36 and 42 through 46, Block 2 of Meadow Oaks Addition and Lots 1 through 12, Block 1 of Meadow Oaks Third Addition; and sidewalk to be installed along the south and east side of Pepperwood Circle from the west line of Lot 46, Block 2, Meadow Oaks Addition to and along the north line of Lot 43, Block 2 to the east line of Meadow Oaks Addition - $81,052.00. (763631/490-466) j. 33rd Street North from the west line of Salina to the west line of Woodland Timmermeyer Gardens, Conners Second, Walnut Grove Fifth, Jesse, Jesse Second, Richard Dunn and Walnut Grove Additions - $60,707.00. (763656-490-468) k. Arapaho from south line of Maple to the north line of Taft, Maple Lane Addition - $178,396.00. (763672/490-470) l. Traffic signalization of Rock Road and Bradley Fair, Bradley Fair Second Addition - $111,857.00. (763706/490-473) m. Constructing Right Turn Lane on Rock Road to serve Bradley Fair Parkway and Lot 1, Block 1, Bradley Fair Second Addition; Left Turn Lane and Median from the north line of Rock Road Court to the north line of Lot 1, Block 1, Bradley Fair Second Addition, and; Median reconstruction from the north line of lot 1, Block 1, Bradley Fair Second Addition to the south line of 21st Street in Bradley Fair Second Addition (south of 21st Street, east of Webb) - $394,274.00. (763714/490-474) n. Bradley Fair Parkway from the east line of Rock Road to the east line of Lot 2, Block 1, Bradley Fair Second Addition, and sidewalk along both sides of Bradley Fair Parkway from the east line of Rock Road to the east line of Lot 2, Block 1, Bradley Fair Second Addition - $185,463.00. (763722/490- 475) o. Constructing Meadow Knoll from the west line of Tyler Road, west to the west line of Lot 50, Block 6; on Keith from the south line of Lot 42, Block 1 to the south line of Lot 34, Block l; on Bellwood and Wedgewood from the north line of Meadow Knoll to the east line of Lot 41, Block 3; on Wedgewood from the south line of Lot 1, Block 5 to the north line of Block 1, Lot 5, on Meadow Knoll Courts adjacent to Lots 1-8, Block 6, Lots 33-38, Block 5, Lot 9-17, Block 6 and Lots 34-57, Block 6; on Bellwood Court adjacent to Lots 22-26, Block 3; on Wedgewood Circle adjacent to Lots 3-18, Block 5; on Wedgewood Court adjacent to Lots 34-41, Block 3; and sidewalk on one side of Meadow Knoll on one side of Keith, on one side of Bellwood and Wedgewood, and within Reserve F. A storm water detention pond and drainage area also included - $1,192,545.00. (763763/490-479) p. Bella Vista from the east line of Maize to the west line of Valleyview Graf-Goldston Addition and Graf-Goldston Second Addition (south of 21st Street, east of Maize) - $124,775.00. (763771/490-480) q. Bella Vista Court from the north line of Bella Vista to and including cul-de-sac, Graf-Goldston Second Addition - $36,747.00. (763789/490-481) r. 19th Street Circle from the west line of Valleyview to and including cul-de-sac, Graf-Goldston and Graf-Goldston Second Additions - $55,771.00. (763797/490-482) s. Cooper and Carson, Turtle Run Third Addition - $143,152.00. (763821/490-485) t. Morris from the west line of Todd to the east line of Lot 125, Block 1; and Todd Circle from the north line of Todd to and including cul-de-sac - $161,525.00. (763920/490-495) u. Pawnee from the west line of Lot 1, Block 1 to the east line of Lot 1, Block 1, the Park Chateau Addition - $10,914.00. (763938/490-496) v. Clear Meadow, Hazelwood an Meadow Grove from the west line of North Shore Boulevard to the west line of North Shore Boulevard; Hazelwood court serving Lots 9-12, Block 1 and Lots 10-21, Block 2, to and including the cul-de-sac and sidewalk along the north, easterly and southerly side of Clear Meadow, Hazelwood and Meadow Grove from the west line of North Shore Boulevard to the west line of North Shore Boulevard; and along the west side of North Shore Boulevard from the south line of Block 1 to the south line of Meadow Grove - $456,287.00. (763496/490-497) w. Custer from the north line of the plat to the south line of Lot 24, Block 1; Custer Circle from the east line of Custer to and including the cul-de-sacs; Mt. Carmel Circle from the west line of Custer to and including the cul-de-sacs, and; Sidewalk along one side of Custer, Stonebriar Addition - $188,762.00. 763953/490-498) x. Haskell from the east line of Lot 22, Block 1 to the north line of Lot 37, Block 1 and sidewalk on the south side of Haskell; and Haskell Courts serving Lots 23 through 28 inclusive, Block 1, and Lots 29 through 35 inclusive, Block 1, from the north line of Haskell to and including the cul- de-sac to serve Prairie Woods Addition - $97,108.00. (763961/490-499) y. Rock Road Landscaping to Bradley Fair Addition, Bradley Fair Second Addition and unplatted tracts 1-3 (south of 21st Street, east of Rock Road) - $11,951.00. (763979/490-500) z. Constructing Bradley Fair Parkway Landscaping to serve Bradley Fair Second Addition, Webb Road Commercial Addition and unplatted Tracts 1-5 (south of 21st Street, east of Rock Road) - $39,372.00. (763987/490-501) aa. Haskell from the south line of Lot 7, Block 1, to the east line of Lot 22, Block 1 and sidewalk on the south side of Haskell; and Haskell Court serving Lots 1 through 22 inclusive, Block 1, from the north line of Haskell to and including cul-de-sac, to serve Prairie Woods Addition - $118,619.00. (764027/490-505) bb. Carr Avenue, Shefford and Prescott Circles to serve Lark Third Addition - $360,810.00. (764068/490-509) cc. Britton, from Pine Grove to 119th Street West, to serve Aberde First Addition - $51,844.00. (764076/490-510) dd. "L" type Hammerhead Turnaround on Edgemoor - $10,658.00. (764134/490-516) ee. Battin, from the north line of Lot 22, Block 1, Pembrook Addition to the south line of Lot 7, Block 2, Pembrook Second Addition; Battin Court, from the west of Battin to and including the cul-de-sac, serving Lots 22 through 40, Block 1, Pembrook Addition, and from the west line of Battin to and including the cul-de-sac, serving Lots 4 through 10, Block 1, Pembrook Second Addition and sidewalk on the east side of Battin - $224,724.00. (764142/490-517) ff. Wild Rose to serve Forest Lakes Addition - $224,883.00. (764167/490-519) gg. Shefford to serve Sunridge Second Addition - $215,285.00. (764175/490-520) hh. Dora, Millstead and Dora Court to serve Lark and Lark Fourth Addition - $355,391.00. (764191/490-522) ii. Hickory Creek, Alderny, Alderny Court, Hickory Courts and sidewalk to serve Hickory Creek Estates Addition - $342,572.00. (764233/490- 526) jj. 31st Street North to serve Mediterranean Plaza (north of 29th Street, west of Webb Road - $75,999.00. (764209/764241/490-523/490-527) kk. Shiloh to serve Smithmoor Fifth Addition - $73,818.00. (764266/490-529) ll. Bay Country, Bay Country Circle and Cindy to serve Country Meadows West - $266,478.00. (764274/490-530) mm. Spring Meadow and Spring Meadow Courts to serve Reflection Ridge Seventh Addition - $143,718.00. (764282/490-531) nn. Hickory, Cedar Downs Circle and Kenny Circle to serve Buckhead Second Addition - $207,520.00. (764290/490-532) oo. Bradley Fair Parkway, Phase II to serve Bradley Fair Second Addition - $526,184.00. (764308/490-533) pp. Landon, Central, Park Shefford and Chartwell to serve Aberdeen Second Addition - $800,882.00. (764316/490-534) qq. Pawnee from Maize Road to Yellowstone - $45,675.00. (763011/490-404) Motion -- Knight moved that the Statements of Cost be received and filed and the proposed -- carried assessment rolls be prepared. Motion carried 7 to 0. BOARDS MINUTES MINUTES OF ADVISORY BOARDS. Alcohol and Drug Abuse Advisory Board, 12/11/97 Commission on the Status of Women, 12/3/97 Police and Fire Retirement System of Wichita, 12/17/97 Wichita Art Museum, 12/23/97 Wichita Traffic Commission, 11/19/97 Wichita Mid-Continent Airport, 12/1/97 Wichita Transit Advisory Board, 11/20/97 Motion -- carried Knight moved that the Minutes be received and filed. Motion carried 7 to 0. STREET CLOSURE CONSIDERATION OF STREET CLOSURE. (District VI) Agenda Report No. 98-006. The Burlington Northern Santa Fe Railway has scheduled the removal of a section of spur line trackage in Santa Fe Street from just north of Central to the south side of Murdock. This trackage does not presently connect to any rail line and the timber crossing material in the street area is deteriorating. The railroad is requesting the approval of a four day closure of Santa Fe Street to remove the existing track structure and replace the street area with concrete. The railroad has scheduled this work the week of January 5-9 pending acceptable weather conditions to accomplish the removal and concrete placement operation. The railroad is responsible for construction barricades and notification of adjacent businesses. There will be no signed detour during this closure. There is no cost to the City. Motion -- carried Knight moved that the street closure be approved. Motion carried 7 to 0. CLAIMS ALLOWED REPORT REPORT ON CLAIMS ALLOWED - NOVEMBER, 1997. Name of Claimant Amount Marylin Fletcher $ 52.85 George Massey $ 192.88 Andria E. Correa $ 193.97* Andy Solter $ 130.75* Jere Weigand $2,000.00 Milford Dirks $ 800.00 Bill Olds $ 400.00 Wendy M. Allen $1,106.56 Robert Self $ 163.22 Glenn Wiggers $ 199.52 Alicia Clay $ 141.66 *These claims were originally sent to the contractor for handling; re-reviewed and allowed by the City. Motion -- carried Knight moved that the Report be received and filed. Motion carried 7 to 0. CLAIM SETTLEMENT SETTLEMENT OF CLAIM. Agenda Report No. 98-007. On July 17, 1995, claimant Gary Phillips was rear-ended in an automobile accident with a City employee. The City has been offered an opportunity to resolve the claim with a lump sum payment of $22,000 as full settlement of all claims. Because of the risks associated with litigation, the Law Department recommends acceptance of the offer. Funding for the settlement if from the City's Tort Liability Fund. Motion -- Knight moved that payment of $22,000 as full settlement of all possible claims arising out of accidental injury to a bus passenger be authorized. Motion -- carried carried 7 to 0. AGREEMENTS AGREEMENT FOR DESIGN SERVICES FOR WATER DISTRIBUTION SYSTEM TO SERVE AN AREA NORTH OF 46TH STREET NORTH, EAST OF THE LITTLE ARKANSAS RIVER. (District VI) Agenda Report No. 98-008. On November 4, 1997, the City Council approved a petition for a water distribution system to serve an area north of 46th Street North and east of the Little Arkansas River, and authorized the Staff Screening & Selection Committee to select a design engineer. On December 11, 1997, the Staff Screening & Selection Committee selected Municipal Engineers, P.A. to design the improvements. The improvement district is developed primarily with single- family homes on large, suburban type lots. There are several undeveloped tracts of 2-4 acres. Payment to Municipal Engineers, P.A. will be made on a lump sum basis of $53,550. The funding source is Special Assessments. Motion -- Knight moved that the Agreement be approved and the Mayor be authorized to -- carried execute. Motion carried 7 to 0. AGREEMENT FOR DESIGN SERVICES FOR WATER DISTRIBUTION SYSTEM TO SERVE AN AREA NORTH OF 51ST STREET NORTH, WEST OF THE LITTLE ARKANSAS RIVER. (District VI) Agenda Report No. 98-009. On November 4, 1997, the City Council approved a petition for a water distribution system to serve an area north of 51st Street North and west of the Little Arkansas River, and authorized the Staff Screening & Selection Committee to select a design engineer. On January 6, 1998, the City Council will review a small petitioned water line just north of the first listed water distribution system. Staff decided to award the small line to the same design engineer that is designing the water distribution system north of 51st Street North. On December 11, 1997, the Staff Screening & Selection Committee selected Savoy, Ruggles & Bohm, P.A. (SRB) to design the improvements. The improvement district is developed primarily with single- family homes on large, suburban type lots. There are several undeveloped tracts of 2-4 acres. Payment to SRB for the large water line will be made on a lump sum basis of $50,000. Payment to SRB for the small water line will be made on a lump sum basis of $500. The funding source is Special Assessments. Motion -- Knight moved that the Agreement be approved and the Mayor be authorized to -- carried execute. Motion carried 7 to 0. AMENDMENT TO AGREEMENT WITH CURFMAN, HARRIS, ROSE & SMITH FOR LEGAL SERVICES. Agenda Report No. 98-010. The law firm of Curfman, Harris, Rose, and Smith has been retained by the City to provide legal services in connection with auto liability claims and litigation. The original contract from November, 1996, provided for compensation not to exceed $25,500. It has become necessary to continue the representation of the City in this matter and to extend the term of the contract through December 31, 1998. This will be the first amendment to the original contract. The Amendment to the Agreement provides for compensation beginning with the Amendment term for an amount not to exceed $25,500. Payment will be from the Risk Management Fund. Motion -- Knight moved that the Agreement Amend. be approved and the Mayor be authorized -- carried to execute. Motion carried 7 to 0. SUPPLEMENTAL AGREEMENT - SANITARY SEWER RESPONSE PLAN - PHASE V, SUPPLEMENTAL CONTRACT AGREEMENT FOR PROFESSIONAL SERVICES AND WATER SYSTEM AM/FM IMPLEMENTATION. (All Districts) Agenda Report No. 98-011. The Sewer Master Plan Study, completed in May 1992, made recommendations for improvements to the sewer utility system and its operation. Among those recommendations was the need for a comprehensive sewer system analysis, and an inflow and infiltration (I&I) identification and elimination program. As part of the previous phases of the Sanitary Sewer Response Plan, George Butler Associates (GBA) performed field inspections and analyzed approximately 50% of the sanitary sewer system. GBA numbered all manholes and line segments, developed a comprehensive system inventory database, and developed a computerized map of the entire sewer system. GBA inspected over 13,500 manholes, over 2.6 million feet of sewer line, and 20,970 buildings for illegal sump pump connections to the sanitary sewer system. They found over 1,800 buried manholes and over 3,600 inflow sources, including 969 suspected illegal sump pump connections, 436 stairwell drains, and over 1,000 manhole failures. Six interceptor projects and five collector relief projects were found that need improvement. By identifying and removing sources where stormwater and groundwater enter the sanitary sewer system, improvements to the system occur resulting in a reduction in overloaded lines, lower treatment costs, and fewer sewage backups into basements. This was illustrated in the spring of 1997 when less than 100 backups were reported, compared to approximately 350 in 1993. As part of Phase V, GBA will verify the location of 4,500 manholes, perform surface inspections of 2,500 manholes, perform 20 flow isolation tests, inspect 2,500 buildings for sump pump connections, and perform wet weather checks to find leaking manholes and sources of inflow and infiltration (I&I). Recommendations will be made for sanitary sewer rehabilitation, including the raising of buried manholes. GBA will update the Automated Mapping/Facilities Management- Maintenance Management System (AM/FM-MMS) Master Plan, prepared in 1994. At the direction of City staff, enhancements will be developed for the system and hardware and software will be purchased and installed. GBA will provide technical support for City staff. The 1998 CIP (#W-554, Water System AM/FM Implementation) allows for funding and development of the AM/FM System for water lines. GBA will computerize the existing water distribution mapping system linking the water maps to the GBA Water Master database, purchase and install necessary computer hardware and software for utilization of the program and provide training for effective use of the system. The GBA Master Series software, created by GBA for the AM/FM sewer system, will also be utilized for the AM/FM water system. The Sewer Response Plan - Phase V Project (CIP #S-300) is budgeted for $1.0 million in 1998 from revenue bond proceeds and/or Sewer Utility cash reserves. The Water System AM/FM Implementation Project (CIP #W-554) is budgeted for $450,000 in 1998 from revenue bond proceeds and/or Water Utility cash reserves. Motion -- Knight moved that the Supp. Agreement be approved and the Mayor be authorized to -- carried execute. Motion carried 7 to 0. SEWER FORCE MAIN IN MERIDIAN. (District VI) Agenda Report No. 98-012. On January 28, 1997, the City Council entered into an agreement with Mid-Kansas Engineering Consultants, Inc. (MKEC) to design Meridian Avenue from I-235 to the north city limits. The fee was $62,095. MKEC has been asked to design the replacement of a section of a sanitary sewer force main from the lift station at 4601 N. Meridian and crossing under the proposed paving. Payment to MKEC for this Supplemental Agreement will be made on a lump sum basis of $1,000. The funding source is Sewer Utility. Motion -- Knight moved that the Supp. Agreement be approved and the Mayor be authorized to -- carried execute. Motion carried 7 to 0. CHANGE ORDER CHANGE ORDER: WOODLAND LAKES ESTATES STREET PAVING (WEST OF 127TH STREET EAST, SOUTH OF KELLOGG). (District II) Agenda Report No. 98-012. On March 6, 1996, the City Council approved a project to pave streets in Woodland Lakes Estates Addition. The project was let in September 1996. During the construction process, the developer and the developer's design consultant requested a number of changes in the project plans to: * Raise the street four feet to accommodate walk-out basements, * Provide additional erosion control and handrails around two pedestrian bridges, and * Reconstruct a portion of an entrance median. The Change Order amount is $21,924. The funding source is Special Assessments. Motion -- Knight moved that the Change Order be approved and the Mayor be authorized to -- carried execute. Motion carried 7 to 0. GO BOND/NOTE SALE GENERAL OBLIGATION TEMPORARY NOTE SALE (SERIES 194) - $35,950,000; GENERAL OBLIGATION TAXABLE TEMPORARY NOTE SALE (SERIES 195) - $5,792,000; GENERAL OBLIGATION BOND SALE (SERIES 750) - $5,360,000; GENERAL OBLIGATION BOND SALE (SERIES 950) - $6,000,000; GENERAL OBLIGATION TAXABLE BOND SALE (SERIES 951) - $4,285,000; GENERAL OBLIGATION BOND SALE (SERIES 952) - $1,385,000; AND GENERAL OBLIGATION TAXABLE CAPITAL ACCUMULATOR BONDS (SERIES 953) - $6,700,000. Agenda Report No. 98-013. The City is planning to offer for sale two series of general obligation temporary notes totaling $41,742,000, a series of general obligation bonds totaling $5,360,000 for the purpose of providing temporary and permanent financing for capital improvement projects of the City, two series of general obligation bonds totaling $7,385,000 for the purpose of providing temporary and permanent financing for Tax Increment Finance (TIF) related projects of the City, one series of taxable general obligation bonds totaling $4,285,000 for the purpose of providing permanent financing for the Conference Center parking garage, and one series of taxable general obligation Capital Accumulator Bonds totaling $6,700,000 for the purpose of providing permanent financing for the Conference Center. The public sale of the bonds and notes is scheduled for 10:30 a.m. on January 27, 1998, at which time sealed bids will be opened and the City Council will award the sale of each series of bonds and notes to the bidders whose proposed interest rates result in the lowest overall cost to the City. The City's Winter 1998 general obligation bond and note sale includes the following issues: Temporary Notes The proceeds from the sale of the Series 194 Temporary Improvement and Renewal Notes will be used to provide interim financing for various City-at-large and improvement district projects: Series 194 Project Category Total Eight Transit Coaches $ 370,000 Gilbert-Mosley Groundwater District 750,000 Cessna (21st Street) Infrastructure 244,000 Arterial Paving 5,220,500 Traffic Engineering 929,000 Bridges 428,000 Park 1,227,000 Public Improvements 3,201,500 Neighborhood Improvements - Water 3,428,000 Neighborhood Improvements - Sewers 3,270,000 Neighborhood Improvements - Paving 14,010,000 Neighborhood Improvements - Storm Sewer 2,872,000 TOTAL SERIES 194 NOTES $35,950,000 Series 195 Ice Rink $ 5,792,000 TOTAL SERIES 195 TAXABLE NOTES $ 5,792,000 "Special Assessment Bonds" The proceeds from the sale of the Series 750 Bonds will be used to permanently finance various neighborhood improvements located in special improvement districts. Special assessments have been levied against the property owners in the improvement districts for the purpose of paying all or a portion of the costs of such improvements, including the payment of principal and interest on Series 750 Bonds. The Special Assessment Bonds will be issued in the par amount of $5,360,000. "Tax Increment Finance (TIF) Bonds" The proceeds from the sale of the Series 950 and Series 952 Bonds, herein referred to as the "TIF Bonds" will be used for public improvements located within the East Bank and 21st and Grove Tax Increment Financing Districts, respectively. Kansas Statutes allow for cities to finance public development or redevelopment of blighted areas, conservation areas, or areas designated as enterprise zones with incremental real estate taxes. Tax increment funds collected within each defined area will be used to pay for the costs of the projects located within the TIF district. "Taxable General Obligation Bonds" The proceeds from the sale of the Series 951 Bonds will be used to permanently finance the parking garage used in conjunction with the Conference Center and Hyatt Hotel. The Series 951 Taxable GO Bonds will be issued in the total par amount of $4,285,000. "Taxable General Obligation Capital Accumulator Bonds" The proceeds from the Series 953 Capital Accumulator Bonds (CAB) will be used to permanently finance the Conference Center. The Series 953 Capital Accumulator Bonds will be issued in the total par amount of $6,700,000. The Series 194 Temporary Notes will mature on August 27, 1998 and will be retired using the proceeds of both permanent financing bonds and renewal notes. The Series 195 Taxable Temporary Notes will mature on August 27, 1998 and will be retired using cash and renewal notes. The Series 750 Special Assessment Bonds will mature serially over 15 years with principal maturities structured to produce level annual payments of principal and interest. The Series 750 Bonds are payable from the collection of special assessments levied against benefited properties, and if not so paid, from city-wide ad valorem taxes. The Special Assessment bonds will be callable in 2005 with a 1% call premium. The Series 950 and Series 952 TIF Bonds will mature serially over 15 years with principal maturities structured to produce payments which fall within the net tax increment revenue stream. The Series 950 and Series 952 TIF Bonds are payable from the collection of property taxes to the Sedgwick County Treasurer and paid to the City Treasurer. The Series 950 and Series 952 TIF Bonds will be callable in 2005 with a 1% call premium. The Series 951 Taxable General Obligation Bonds will mature serially over 15 years. Maturities are structured to produce level principal and interest. The Series 951 Bonds are payable from the collection of guest taxes from the Hyatt Hotel and from parking revenues guaranteed by the Hyatt Hotel. The Series 951 Bonds will be callable in 2005 with a 1% premium. The Series 953 Taxable General Obligation CABs will mature serially over 15 years beginning in 2001. Maturities are structured to produce payments that fall within the guest tax revenue stream. Series 953 CABs are noncallable. Motion -- Knight moved that the Resolutions authorizing general obligation bond and note sales be adopted and publication of the Notice of Bond Sale and Notice of Note -- carried Sale as required by law be authorized. Motion carried 7 to 0. RESOLUTION NO. R-98-005 A Resolution of the city of wichita, Kansas, authorizing and providing for the public sale of General Obligation Renewal and Improvement Temporary Notes, Series 194; Taxable General Obligation Renewal Temporary Notes, Series 195; General Obligation Bonds, Series 750; General Obligation Bonds, Series 950; Taxable General Obligation Bonds, Series 951; and General Obligation Bonds, Series 952; of the City; and providing for the giving of Notice of the Public Sale, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cole, Ferris, Gale, Kamen, Lambke, Rogers, Knight. RESOLUTION NO. R-98-006 A Resolution of the City of Wichita, Kansas, authorizing and providing for the public sale of Taxable General Obligation Capital Accumulator Bonds, Series 953, of the City; and providing for the giving of notice of the public sale, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cole, Ferris, Gale, Kamen, Lambke, Rogers, Knight. (Item No. 31) EATON HOTEL BUDGET EATON HOTEL OPERATING BUDGET. (District VI) Agenda Report No. 98-015. The City of Wichita acquired the Eaton Hotel and associated property through a Sheriff's sale on April 23, 1997. On September 16, 1997 the City Council approved an operating budget for 1997 that projected a shortfall of $64,516. For the first seven months of operations (April 23, 1997 through November 30) actual operating losses totaled $28,413. For the calendar year, the operating shortfall is projected to be $53,600. The City is currently in the process of selecting a developer for the property. It is uncertain how long this process will take. In the interim, the City will continue to operate the property. The initial approval provided funds only for 1997, necessitating additional funding for 1998. A budget has been prepared for the first nine months of 1998 for the Eaton Hotel and associated properties based on actual 1997 operating results. Expenses total $76,610 and include $17,700 for property taxes, $24,000 for repairs and maintenance, $11,390 for utilities, and $20,700 for management and administration. Estimated monthly revenues are $5,500 with a budgeted total of $49,500. It is projected that expenses will exceed revenues by $27,110. Funds for the 1998 budget short fall of $27,110 will be allocated from General Fund Appropriated Reserves. The Eaton operations have been established in a non-departmental account. At the time that the revised 1998 budget is prepared, the Eaton assemblage will be included if it appears necessary due to the timing of the redevelopment. Chris Cherches City Manager responding to Council Member Lambke's questions, explained that the administrative charges are due to the City cost allocation plan and costs are charged to projects on a unit basis. The management fee is paid to a firm to handle the day-to-day management and rental collection for the building. It is cheaper to contract out the management of rental property. The original fee was $2,200/month and the fee is now $1,500/month for commercial property. Council Member Cole Council Member Cole explained that the fee covers a daily presence at the building in addition to collecting the rent. Motion -- carried Cole moved that the transfer of funds be approved. Motion carried 7 to 0. (Item No. 32) ORPHEUM FUNDING REQUEST FUNDING REQUEST FROM ORPHEUM PERFORMING ARTS CENTER. Agenda Report No. 98-016. On January 7, 1997, the City Council approved a request from the Orpheum Performing Arts Center for funding assistance in the amount of $250,000 to make repairs to the Orpheum facilities. Community Development Block Grant funds (CDBG) were allocated for use in Phase I renovation of the heating system including a new boiler, pumps, coil, and filter banks for the existing unit and new air handling units for the lobby and balcony, designed to prevent future deterioration to the interior of the building. City funding was provided as a challenge grant to match private funding sources. A contractor has been hired and work is underway to install the Phase I improvements to the heating and system. Phase I work is scheduled to be completed March 1, 1998. As of November 30, 1997, the Orpheum has raised $242,199 in private matching funds. The City has received a Phase II request from the Executive Board for funding assistance in making necessary repairs to the Orpheum facilities. The request is to provide funding to support restoration of the historical building. The required work has been prioritized to ensure the integrity of the building. The Phase II request is to install duct work and chiller for the heating and air conditioning system and install a fire alarm panel. Without these improvements, the building is at risk from future deterioration to the interior of the building. The Board's Phase II request is for the City to provide a grant which will allow it to secure matching funds from private sources to complete the restoration work. The Board feels that a private-public partnership in this restoration work is the most feasible approach to making the Orpheum project successful. The Board previously requested funding support from the City of a two year period at an annual allocation of $250,000. The City Council approved funding for the first year (Phase *) and indicated a desire to reconsider a Phase II funding request when the results of Phase I were better known. Phase I funding was provided from CDBG funds. No funding has been allocated for the Phase II funding support. Council Member Kamen Council Member Kamen said he did not believe that Items like this should be taken for granted. Council Member Kamen asked that this Item be voted on separately from the Agenda and that someone else make the motion. Mayor Knight Mayor Knight said that, in 1997, he had indicated a desire to reconsider a Phase II funding request of a like amount, and that he maintains that support. Council Member Ferris Council Member Ferris said Items of this level would probably be better on the regular agenda. Council Member Cole Council Member Cole said she had met with the City's Preservation Planner and the Chairperson of the Historic Preservation Board to discuss ways to deal with grants such as this that did not trouble the Historic Loan and Grant money because it appeared to the Historic Preservation Board that this was very confusing. Council Member Cole asked that this matter also be looked at when the Historic criteria and guidelines are discussed. Motion -- Knight moved that the Funding Support as Matching Grant be approved. Motion -- failed failed 4 to 3. Ferris, Gale, Kamen, Lambke - No. URBAN RENEWAL CERT. CERTIFICATE OF COMPLETION - URBAN RENEWAL PROJECT. (District VI) Agenda Report No. 98-017. Planning and Law have been working with the attorney for the Estate of Paul Heide to resolve some problems in the documents pertaining to a transfer of Urban Renewal property to Paul and Ella Charlotte Heide in 1976. The documents erroneously required residential development which is inconsistent to the Urban Renewal Plan requirements for industrial use. No request for a certificate of completion was ever made. The subject property, located on the Southeast corner of 14th Street North and Mosley, was acquired for use as a parking lot in 1976. The required improvements of surface and fencing have been completed as required in the contract. Improvements contemplated in the original transaction have been finished and the property is entitled to a certificate of completion. Upon the successful completion of construction or rehabilitation of property acquired from the Urban Renewal Agency, the purchaser is entitled to a certificate of completion. This document affirms successful construction of improvements and extinguishes the City's right to require completion or re-acquire undeveloped properties. The City Council, as successor to the Urban Renewal Agency, is authorized to grant certificates of completion. It is the opinion of the Law Department that the improvements and rehabilitation anticipated by the contract of sale have been completed. Motion -- Knight moved that the Certificate of Completion of Improvements be approved and -- carried the Mayor be authorized to sign. Motion carried 7 to 0. DESIGN PROJECTS DESIGN OF A 30" WATER MAIN IN 21ST STREET FROM 127TH STREET EAST TO WEST OF ANDOVER ROAD. Agenda Report No. 98-018. The Water Master Plan required the construction of this water line to relieve stress on the existing water distribution system. The construction of this project will provide additional pressure and volume to the northeast section of the City and allow for future growth. It will also provide a portion of the water supply for the City of Andover. This approval is for the design of the first phase which is to be constructed in 1999. This project (CIP #W-525) is budgeted for $70,000 for design in 1998. The project expenses will be paid from revenue bond proceeds and/or Water Utility cash reserves. Motion -- Knight moved that the project expenditures for 1998 be approved. Motion carried -- carried 7 to 0. WATER MAIN DESIGN ENGINEERING CONTRACT FOR WATER MAIN DESIGN. (District V) Agenda Report No. 98-019. This design is for 3,700 feet of 16-inch water main in Harry St. from the existing 16-inch main in Harry St. at Ridge Road to the existing 16-inch main in Harry St. approximately 1,580 feet east of Tyler Road. The Water Master Plan determined that this improvement to the water distribution system was required to complete loops of the piping network. This will result in improved pressure and fire flow. Installation of this main will improve flow to the extremities of the distribution system and will improve reliability of service in the Lear Jet facilities and Mid-Continent Airport vicinity. This project (CIP #W-535) is budgeted for $25,000 for design in 1998. This project will be funded from revenue bonds and/or Water Utility cash reserves. Motion -- Knight moved that the project expenditures for 1998 be approved. Motion carried -- carried 7 to 0. INFLOW & INFILTRATION INFLOW AND INFILTRATION REMOVAL PROGRAM. (All Districts) Agenda Report No. 98-020. Inflow and infiltration (I&I) of stormwater and groundwater into the City sanitary sewer system has resulted in sewer backups into basements, treatment of excessive amounts of sewage, high treatment costs, and overloaded sanitary sewer lines. The Sewer Response Plan (CIP #S-300) identified I&I as a primary contributor to sewer backups in the City. Specific recommendations made as part of the Sewer Response Plan will be implemented by this project. The Sanitary Sewer Response Plan identified manholes and line segments in need of repair, illegal connections of sump pumps, and stairwell drains. Future phases of the Sewer Response Plan will continue to analyze the system and provide recommendations for reducing the amounts of I&I and elimination of I&I sources. Control of I&I will extend the useful life of the sewage treatment plant by reducing the amount of wastewater that must be treated. This project (CIP #S-317) is budgeted for $500,000 in 1998 from revenue bond proceeds and/or Sewer Utility cash reserves. Motion -- Knight moved that the project expenditures for 1998 be approved. Motion carried -- carried 7 to 0. WATER MASTER PLAN UPDATE OF THE WATER MASTER PLAN. (All Districts) Agenda Report No. 98-021. The City of Wichita provides treated drinking water to 331,000 people. This population is projected to increase to over 438,000 by the year 2010. The service area includes the City limits, seven incorporated communities, an improvement district, three rural water districts, and a single community that receives wholesale untreated water. To ensure that future water needs of the service area are met, the City of Wichita Water & Sewer Department requires an objective engineering evaluation of its water system. The purpose of this is to develop a long-range Water System Master Plan through 2010. Camp, Dresser & McKee, author of the completed Water Master Plan, recommended updating the plan every 5 years (assuming a 20 year design period in the master plan). This allows corrections to be made as future conditions and/or historical events dictate. Demand projections and recommended improvements will be re-evaluated. Further, re-calibration of the water system hydraulic model and updating of water system model computer software is recommended. This project (CIP #W-526) is budgeted for $350,000 for 1998 from revenue bond proceeds and/or Water Utility cash reserves. Motion -- Knight moved that the project expenditures for 1998 be approved. Motion carried -- carried 7 to 0. DISTRIBUTION MAINS DISTRIBUTION MAINS REPLACEMENT PROGRAM. (All Districts) Agenda Report No. 98-022. This project is included in the ten-year Capital Improvement Program (CIP #W-67) to provide replacement water mains for the old leaking mains in the distribution system. Many water mains have been used beyond their design life and are vulnerable to leaking. Seventy (70) percent of the water system leaks occur in galvanized water mains and this replacement project is targeted to replace these. The mains to be replaced leak at a level 25 percent above the national average. Replacement of 2" mains with 8" and 6" mains will also provide improved water and fire service to citizens and save an estimated $6,900 per mile of maintenance costs. Annual cost of maintaining mains is expected to be reduced by $73,000 for each year of the project. This project (CIP #W-67) is budgeted for $2.5 million in 1998 from revenue bond proceeds and/or Water Utility cash reserves. Motion -- Knight moved that the project expenditures for 1998 be approved. Motion carried -- carried 7 to 0. WATER MAIN - SENECA RECONSTRUCTION OF 12" WATER MAIN - SENECA FROM KELLOGG TO MCLEAN BOULEVARD. (District VI) Agenda Report No. 98-023. The existing water main is scheduled to be replaced along with paving projects on Seneca due to the age and condition of the water lines. The water main is very old and a portion is undersized. The reconstruction of Seneca Street warrants reconstruction of the water main in conjunction with the paving project. The City Engineering Office has informed the Water & Sewer Department that the water main reconstruction project must be completed prior to the construction of the paving project (CA-9219). Replacement of the main will help avoid future repair costs and improve flow characteristics. This project (CIP #W-232) is budgeted for $140,000 for 1998 from revenue bond proceeds and/or Water Utility cash reserves. Motion -- Knight moved that the project expenditures for 1998 be approved. Motion carried -- carried 7 to 0. SEWER MAINS - FUTURE SANITARY SEWER MAINS FOR FUTURE DEVELOPMENTS. (All Districts) Agenda Report No. 98-024. This project is included in the ten-year Capital Improvement Program (CIP #S-5) as sanitary sewer extensions to serve future developments and newly annexed areas. This project also provides for the City's share of costs to construct new sanitary sewer mains to serve expanded areas. These funds are used to plan, model, design, construct and/or relocate sanitary sewers for future growth. The Sewer Master Plan, prepared by Black & Veatch in 1992, indicates future needs to expand the sanitary sewer service area. The study of northwest and northeast Wichita to determine service alternatives in these rapid growth areas was begun in 1997 and is scheduled to conclude in 1998. The project is in support of the City of Wichita Sewer Master Plan. This project (CIP #S-5) is budgeted for $1.0 million in 1998 from revenue bond proceeds and/or utility cash reserves.. Motion -- Knight moved that the project expenditures for 1998 be approved. Motion carried -- carried 7 to 0. UNIDENTIFIED MAINS UNIDENTIFIED WATER MAINS FOR FUTURE DEVELOPMENTS. (All Districts) Agenda Report No. 98-025. This project for water main extensions is included in the ten-year Capital Improvement Program (CIP #W-65) to serve future developments and newly annexed areas. This project provides for the City's share of funding major water line extensions associated with new developments and industries. The Water Master Plan, prepared by Camp, Dresser & McKee in 1994, indicates the need to extend the water distribution system wherever future growth and development is occurring. These projects are identified when a petition for water system extensions is received. The water utility pays for links and oversizing of the water system in developments. Funds are also used to design and relocate water mains for future Public Works projects. This project (CIP #W-65) is budgeted for $2.5 million in 1998. Project expenditures will be paid from revenue bond proceeds and/or Water Utility cash reserves. Motion -- Knight moved that the project expenditures for 1998 be approved. Motion carried -- carried 7 to 0. 16" WATER MAIN INSTALLATION OF 16" WATER MAIN. (District V) Agenda Report No. 98-026. The City of Wichita provides treated drinking water to 331,000 people. The service population is projected to increase to over 438,000 by 2010. To ensure that future water needs of the service area are met, the Water and Sewer Department initiated a study of its water system. The Water System Master Plan was completed in February 1994, and recommended a number of significant system improvements to ensure adequate service levels now and in the future. This project is recommended to install a 16-inch water main parallel to an existing 16-inch water main in Maple from Maize Road to 119th Street West for system hydraulics and expansion. The result will provide service to this area, adjacent developments, and will improve pressure and flow to the western portion of the Water Utility system. It will also provide capacity for future developments in southwest Sedgwick County. The City Council approved the 1997-2006 Capital Improvement Program on May 13, 1997. The design of this project was approved for 1997, and construction in 1998. The Capital Improvement Program (CIP #W-540) 1998 budget is $600,000. This project will be funded from Water Utility revenues and reserves, or a future revenue bond issue. Motion -- Knight moved that the project expenditures for 1998 be approved. Motion carried -- carried 7 to 0. REHAB SEWERS RECONSTRUCTION AND/OR REHABILITATION OF SANITARY SEWERS. (All Districts) Agenda Report No. 98-027. The sanitary sewer system is maintained by the Sewer Maintenance Division of the Water & Sewer Department. The Preventative Maintenance Program includes televising and evaluation of older sewer lines. The sewer lines that are in the worst condition are scheduled for reconstruction or rehabilitation. This Program helps eliminate stoppages, back-ups, failures, reduces inflow and infiltration into the sanitary sewer system, reduces maintenance costs and inconvenience to customers. On November 18, 1997, the City Council approved the 1997- 2006 Capital Improvement Program. The Capital Improvement Program (CIP #S-4 - Reconstruction and/or Rehabilitation of Sanitary Sewers) 1998 budget is $2,800,000. This project will be funded from Water Utility cash reserves and/or a future revenue bond issue. Motion -- Knight moved that the project expenditures for 1998 be approved. Motion carried -- carried 7 to 0. PLANEVIEW SEWER REPLACEMENT OF EXISTING SEWER SYSTEM IN PLANEVIEW. (District III) Agenda Report No. 98-028. The Planeview area was developed by the federal government in the early 1940s to provide temporary housing to aircraft workers during World War II. After the war, the federal government sold the properties to individuals for residential housing. The City of Wichita annexed Planeview in 1955 (Ordinance No. 21-106, June 9, 1955). The area's water and sewer systems were not constructed to meet permanent utility standards. Individual services were not metered, water mains were constructed of materials that rapidly began rusting in the soil, sewer mains were sized too small to allow for preventive maintenance, and manholes were not constructed to provide sufficient access for emergency/routine maintenance. Though Planeview comprises less than 2% of the entire City sewer system, approximately 15% of the total system stoppages occur in this area. The City has spent at least $2,000,000 in maintenance repair to keep the system functioning. The replacement of the existing sewer system in Planeview (CIP #S-331) is budgeted for $500,000 in 1998 from sewer utility revenues, reserves, and/or future revenue bond issue. Motion -- Knight moved that the project expenditures for 1998 be approved. Motion carried -- carried 7 to 0. INTERCEPTOR SEWERS INTERCEPTOR RELIEF SEWERS PRIORITY I. (All Districts) Agenda Report No. 98-029. The Sewer Master Plan Study of May 1992, by Black & Veatch, indentified deficiencies in the Wichita sewer utility system and operations. On February 15, 1994, the City Council authorized George Butler Associates, Inc., to complete a comprehensive sewer system evaluation study including facilities improvement. Interceptor Relief Sewers-Priority I in the Sewer Master Plan of May 1992 consists of major sewer lines in the existing collection system that are experiencing: 1. Backups, surcharging, and/or overflow problems. 2. Hydraulic overload under current flow conditions with 200 percent or more capacity used. Projects will be developed based on engineering studies, evaluations, and recommendations from 1996 through 1997, as evaluation of the sanitary sewer system interceptors performance continues. The budget for these projects is allocated for design and construction to improve system performance. Individual projects will be brought before Council for approval as they are bid. City Council approved the 1997-2007 Capital Improvement Program and the initiation of all projects scheduled from 1997 to 2007, on May 13, 1997. This project (CIP #S-315) is budgeted for $5.0 million in 1998 from Sewer Utility cash reserves, and/or a future bond issue. Motion -- Knight moved that the project expenditures for 1998 be approved. Motion carried -- carried 7 to 0. PROPERTY ACQUISITION ACQUISITION OF RIGHT-OF-WAY AND EASEMENTS FOR THE MERIDIAN STREET IMPROVEMENT PROJECT. (District IV & VI) Agenda Report No. 98-030. The Meridian Street Paving Project from Maple to Central, approved by Council on July 30, 1996 requires the acquisition of nineteen (19) temporary easements or partial acquisitions. One of the partial takes and one of the temporary easements are located at 326 N. Meridian (Tracts 10 and 10a) and are owned by John & Brenda Miller. Another temporary easement affects 526 N. Meridian (Tract 40 and is owned by Christopher Grow. Temporary Easement from Christopher Grow for construction of wheelchair ramp on part of Lot 12, Meridian Avenue, Walter's Addition. Temporary Easement from John R. and Brenda G. Miller for construction of wheelchair ramp on part of Lot 8, Whitney's Addition. The subject tracts are improved with single family homes. Tract 10 contains 1.41 feet of right-of-way and Tract 10a has 36.87 square feet. Tract 4 contains 12.5 square feet. Due to the small size of the tracts, a formal appraisal was not performed. Instead, a nominal value of $250.00 for Tract #10, and $100.00 for Tracts #10a and $150.00 were established. The owners have agreed to these prices. A total budget of $83,500 has been approved for the acquisition of the seventeen tracts. After these acquisitions $78,535.00 will remain to acquire the remaining tracts. The City Council has previously approved the purchase of ten other tracts for this project. Upon approval of these tracts there will be five tracts remaining to be acquired though either negotiation or eminent domain. A budget of $600.00 is requested representing $500 for the acquisition of the three parcels and $100 for closing costs. Motion -- Knight moved that the budget and the Contract be approved; and the Mayor be -- carried authorized to sign the necessary documents. IRB - VIA CHRISTI EXTENSION OF LETTER OF INTENT - VIA CHRISTI HEALTH SYSTEM, INC. Agenda Report No. 98-031. On January 7, 1997, Via Christi Health System, Inc., was issued a Letter of Intent for Hospital Facilities Improvement and Refunding Revenue Bonds in an amount not to exceed $327.5 million. The bonds will finance the refunding of all outstanding balances of prior bond issues to CSJ Health System and St. Francis Regional Medical Center and to finance capital projects planned by Via Christi. The Letter of Intent expired on July 7, 1997 and on September 9, 1997, the Council reinstated the Letter of Intent and extended it to January 7, 1998. Via Christi is requesting that the Letter of Intent be extended for a another six months to June 7, 1998. The reason for requesting the extension is that Via Christi could not complete the arrangements for the financing by January 7, 1998 and needs that extra time to complete the arrangement for financing the project. Via Christi Health System was formed in October of 1995 through the consolidation of the St. Francis Ministry Corporation of the Sisters of Sorrowful Mothers and the CSJ Health System of Wichita of the sisters of St. Joseph of Wichita. At this same time, St. Francis Regional Medical Center and St. Joseph Medical Center were consolidated to form Via Christi Regional Medical Center. Via Christi Health System headquarters is located in Wichita at 929 N. St. Francis. Via Christi Health System operates and manages five hospitals on six campuses, a rehabilitation center, five senior care facilities and 18 physician practices in three states. Bond proceeds will be used to (1), refund all the outstanding bonds (currently estimated to be $300,000,000) issued by the City for the benefit of CSJ Health System, Inc. (to include, but not limited to, St. Joseph Medical Center) and St. Francis Regional Medical Center, Inc.; and (2), to provide financing for capital projects costing an estimated $27.5 million which includes acquisition of Via Christi Rehabilitation Center; purchase of major medical equipment; and remodeling and renovation of the St. Francis and St. Joseph Campuses. The bonds will be underwritten by Smith Barney, Inc. The firm of Hinkle, Eberhart & Elkouri, L.L.C. will serve as bond counsel in the transaction. The project will be financed by bond proceeds as follows: CAPITAL PROJECTS: Acquisition of Via Christi Rehabilitation Center$ 7,500,000 (1151 North Rock Road) Purchase Major Medical Equipment 12,000,000 Remodel and Renovation of St. Francis and St. Joseph Campuses 8,000,000 TOTAL CAPITAL PROJECTS: $ 27,500,000 REFUNDING: Refunding Existing Debt (Currently Outstanding) 300,000,000 TOTAL BOND ISSUE: $327,500,000 Via Christi, over and above the physicians on staff, currently employs over 5,000 people. Via Christi has a current approved EEO/AA Plan on file with the City's Human Resources Department. Via Christi 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. Via Christi is not requesting a tax abatement of ad valorem property taxes on the project because they are exempt from taxes by virtue of their status as an exempt organization under Section 501(c)(3) of the Internal Revenue Code. Bond documents needed for the issuance of the bonds will be prepared by Hinkle, Eberhart & Elkouri, bond counsel for the project. Motion -- Knight moved that the Letter of Intent to Via Christi Health System, Inc., for Hospital Facilities Improvement and Refunding Revenue Bonds in an amount not to exceed $327.5 million, subject to the original conditions, be extended to June 7, -- carried 1998. Motion carried 7 to 0. CPO BYLAWS CITIZEN PARTICIPATION ORGANIZATION (CPO) BYLAWS. Agenda Report No. 98-032. A sub-committee consisting of representatives from each CPO Council was created to work with Staff to review and make recommendations on the CPO by-laws. The by-laws have been amended to be in agreement with City ordinances. In addition, the format for the by-laws has been changed to the format used for by-laws for all other boards and commissions. Motion -- carried Knight moved that the Bylaws be approved. Motion carried 7 to 0. LAWSUIT SETTLEMENT SETTLEMENT OF LAWSUIT - AARON, ETAL. Agenda Report No. 98-033. In November 1990, a group of employees filed an action alleging that they had not been paid in accordance with the Federal Labor Standards Act. The litigation of this matter has reduced the number of claimants and the issues involved. The plaintiffs have offered to accept payment of $275,000.00 as full settlement of all claims against the City; the total amount will be distributed among the plaintiffs and their attorneys. Because of the expense of litigating the matter, plus an award of attorney fees to plaintiff, would exceed this amount, the Law Department recommends acceptance of the offer. The settlement of this suit does not constitute an admission of liability on the part of the City. Rather, it is merely a settlement to resolve a long disputed claim. Funding for this settlement payment is from the City's 1998 General Fund Budget. Motion -- carried Knight moved that the settlement be authorized. Motion carried 7 to 0. LEGAL SERVICES CONTRACT CONTRACT FOR LEGAL SERVICES - KEEN KUTTER DEVELOPMENT. Agenda Report No. 98-034. In October the Council approved a proposal for the redevelopment of the Keen Kutter Building in Old Town. The proposal involves the City purchasing the building and then contracting with the developer for renovation of the structure to accommodate an extended-stay hotel. This transaction involves significant, specialized legal work. The law firm of Adams, Jones, Robinson & Malone has superior specialized knowledge of these sorts of transactions and, in particular, has recent experience working for the City in connection with the Hyatt Hotel development. It is anticipated that this legal work will continue over the next 18 months while the development is ongoing. The estimated amount of the fees for this work is $20,000. These legal fees will be paid from general fund appropriated reserves. Motion -- Knight moved that the Contract be approved and the Mayor be authorized to -- carried execute. Motion carried 7 to 0. ART MUSEUM AGREEMENT AGREEMENT FOR OPERATION AND MANAGEMENT OF WICHITA ART MUSEUM. Agenda Report No. 98-035. On November 18, 1997, the City Council approved a new governance structure for the Wichita Art Museum. Effective January 1, 1998, the previous Wichita Art Museum board was abolished and the City became the successor in interest to all power and authority over the Wichita Art Museum. The City is authorized to enter into a contract with a not-for-profit entity for the operation and management of the Wichita Art Museum. A 501(c)3 tax exempt organization known as the Wichita Art Museum, Inc., has been established with authority to operate and manage the Museum. This entity with a 36 member Board of Trustees is in place and scheduled to begin operation. Formal action on the management agreement is necessary. A proposed Management Agreement with The Wichita Art Museum, Inc., was provided to the City Council and summarized in the Agenda Report on November 18, 1997. The Council has never taken formal action to approve the agreement and this action is necessary to put the new governance structure in place. Under this agreement the new entity and its Board of Trustees will assume operation and management of the Museum. Motion -- Knight moved that the Agreement be approved and the Mayor be authorized to -- carried execute. Motion carried 7 to 0. EMINENT DOMAIN SETTLEMENT OF EMINENT DOMAIN APPEAL - KELLOGG PROJECT. Agenda Report No. 98-036. In 1996 the City began eminent domain proceedings to acquire right-of-way for the Kellogg expansion project from Bluff to Edgemoor. One of the last cases filed included property located on the northwest and northeast corners of Bluff and Kellogg. The award for this acquisition was $285,000. The landowners appealed the award and the case has been pending awaiting trial over the past 11 months. Trial is set for early in 1998. The landowners' appraisal of their property sets its value at $350,000. The City's appraiser has valued the property at $244,000. The probable expenses for pursuing this matter through the appeal trial exceed $15,000. The landowners have offered to settle this matter in return for payment of an additional $25,000. This represents a total value for the property of $310,000. Both outside eminent domain counsel and the Law Department recommend acceptance of this offer because it is very unlikely that the City could proceed to trial and end up paying less than this amount. The costs of this settlement will be paid from the East Kellogg project fund. Motion -- Knight moved that the settlement and payment of $25,000 be approved. Motion -- carried carried 7 to 0. ORDINANCES SECOND READING ORDINANCES. (First Read December 23, 1997) a. Keen Cutter Hotel Development Agreements. ORDINANCE NO. 43-671 An ordinance authorizing the City of Wichita, Kansas, to issue certain general obligation bonds in a principal amount of not to exceed three million, three hundred thousand dollars ($3,300,000) exclusive of financing costs for the purpose of paying the cost of purchasing, acquiring, constructing, furnishing, and equipping a hotel located in the City of Wichita, Sedgwick County, Kansas, said hotel to be leased to the Hotel at Old Town, Inc.; authorizing the execution of a lease agreement by and between the City of Wichita, Kansas, and the Hotel at Old Town, Inc.; authorizing the execution of a development agreement by and between the City of Wichita, Kansas, and the Hotel at Old Town, Inc., read for the second time. Knight moved that the Ordinance be placed upon its passage and adopted. Motion carried 6 to 0. (Council Member Kamen abstained) Yeas: Cole, Ferris, Gale, Lambke, Rogers, Knight. b. Douglas Avenue Bridge over the Arkansas River. (District VI) ORDINANCE NO. 43-672 An ordinance declaring the Douglas Avenue Bridge over the Arkansas River (472-82721) to be a main trafficway within the City of Wichita, Kansas; declaring the necessity of and authorizing certain improvements to said main trafficway; and setting forth the nature of said improvements, the estimated costs thereof, and the manner of payment of same, read for the second time. Knight moved that the Ordinance be placed upon its passage and adopted. Motion carried 7 to 0. Yeas: Cole, Ferris, Gale, Kamen, Lambke, Rogers, Knight. PLANNING AGENDA V-1948 V-1948 - PUBLIC HEARING: REQUEST TO VACATE STREET RIGHT-OF-WAY FOR MERTON STREET LOCATED IN AN AREA EAST OF WEST STREET AND SOUTH OF HARRY BETWEEN KNIGHT AND LEONINE AND ALSO AN ALLEY. (District IV) Marvin Krout Director of Planning reviewed the Item. Agenda Report No. 98-037. MAPC Recommendation: Approve vacation of street right-of-way for Merton Street and an alley. Staff Recommendation: Approve vacation of street right-of-way for Merton Street and an alley. 100 Percent Petition for improving of an alley adjacent to and north of Lot 24, Block C, Isabella Addition, Project No. 472-82900 ($16,000 S.A.) Dedication and Notice and Declaration of Restriction from Natalie S. Wilson, for Lot 25, Block C, Isabella Addition. Dedication and Notice and Declaration of Restriction from Natalie S. Wilson for odd Lots 27 through 51, Block C, Isabella Addition. Marvin Krout Director of Planning reviewed the Item for the City Council. The notice of hearing was published twice and no written protest had been filed. Mayor Knight Mayor Knight inquired if anyone wished to be heard on this Item and no one appeared. Motion -- Gale moved that the public hearing be closed, the vacation, petitions, dedications, and notices be approved as recommended, the Mayor be authorized to sign the Vacation Order; a certified copy of the Order and the documents be recorded with the Register of Deeds; and the petition be approved and the -- carried Resolution be adopted. Motion carried 7 to 0. RESOLUTION NO. R-98-007 Resolution of findings of advisability and Resolution authorizing 100 Percent Petition for improving of an alley adjacent to and north of Lot 24, Block C, Isabella Addition in the City of Wichita, Kansas, pursuant to findings of advisability made by the Governing Body of the City of Wichita, Kansas, presented. Gale moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cole, Ferris, Gale, Kamen, Lambke, Rogers, Knight. Z-3227 Z-3227 - AMENDED ORDINANCE FOR A ZONE CHANGE FROM "SF-6" SINGLE-FAMILY RESIDENTIAL AND "LC" LIMITED COMMERCIAL TO "TF-3" TWO-FAMILY RESIDENTIAL AND "SF- 6" SINGLE-FAMILY RESIDENTIAL GENERALLY LOCATED AT THE NORTHEAST CORNER OF 29TH STREET NORTH AND TYLER ROAD. (District V) Marvin Krout Director of Planning reviewed the Item. Agenda Report No. 98-038. Staff submitted a revised ordinance for the rezoning of property located at the northeast corner of 29th Street North and Tyler Road. The zoning case was approved by the City Council on June 10, 1997, subject to platting the property within one year. The property was part of the Oak Ridge Second Addition, recorded on July 28, 1997. On review of the ordinance establishing the zone change, staff identified an error with the legal description and is seeking to rectify the discrepancy. Motion -- Knight moved that the Ordinance be placed on first reading. Motion carried -- carried 7 to 0. ORDINANCE An Ordinance changing the zoning classifications or districts of certain lands located in the City of Wichita, Kansas, under the authority granted by Section 28.04.210, the Code of the City of Wichita, Kansas, introduced and under the rules laid over. Z-3227 EXECUTIVE SESSION Motion -- Knight 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, legal advice, and contract negotiations; and personnel matters of non-elected personnel; and the regular meeting be resumed at 11:35 a.m. in the City Council Chambers. Motion carried -- carried 7 to 0. RECESS Council recessed at 10:35 a.m. and reconvened in regular session at 11:50 a.m. Mayor Knight Mayor Knight announced that no action was necessary as a result of the executive session. ADJOURNMENT The City Council meeting adjourned at 11:50 a.m. Pat Burnett City Clerk COUNCIL PROCEEDINGS JOURNAL 165 JANUARY 6, 1998 Page 1