MINUTES OF THE MEETING OF THE CITY COUNCIL Wichita, Kansas, November 26, 1996 Tuesday, 9:08 A.M. The City Council met in regular session with Mayor Knight in the Chair. Council Members Cather, Cole, Gale, Kamen, Rogers; present. *Council Member Ferris absent. Chris Cherches, City Manager; Gary Rebenstorf, Director of Law; Pat Burnett, City Clerk; present. The invocation was given by Bishop Earl McIntyre, Church of Jesus Christ of Latter Day Saints The pledge of allegiance to the flag was participated in by the Council Members, staff, and guests. *Council Member Ferris present. Minutes -- The minutes of the regular meeting of November 19, 1996, were -- approved approved 7 to 0. AWARDS AND PRESENTATIONS PROCLAMATIONS Mayor Knight presented the Proclamations previously approved. UNFINISHED BUSINESS KEEN KUTTER H96-1 - NOMINATION OF THE MORTON-SIMMONS (KEEN KUTTER) BUILDING TO THE WICHITA REGISTER OF HISTORIC PLACES; AND REQUEST FOR REVOLVING LOAN PROGRAM FOR HISTORIC PROPERTIES FUNDING. Chris Cherches City Manager reviewed the Item. Agenda Report No. 96-969. Staff Recommendation: Approve the nomination and the loan request. Historic Preservation Board Recommendation: Approval (6-0) Metropolitan Area Planning Commission Recommendation: Approval (10-0) Property owner Dave Burk has requested historic landmark designation and a loan in the amount of $150,000 from the City of Wichita's Revolving Loan Program for Historic Properties for the Morton-Simmons/Keen Kutter Building in Old Town. As part of the City's adopted Historic Preservation Ordinance, the request for designation of a building to the Wichita Register of Historic Places or a request for a loan greater than $25,000 from the Revolving Loan Fund must be approved by the Wichita City Council. Nomination to and inclusion in the Wichita of Register of Historic Places is a prerequisite to the appropriation of funds through the loan program. The Keen Kutter Building was constructed in 1905 by the St. Louis-based Morton-Simmons Hardware Company. The company selected Wichita as the site for a factory and distribution center for the company's line of "Keen Kutter" products - one of only five facilities constructed in the United States. Built at a cost of more than $250,000, the building was reported to have contained more wholesale floor space than any other building in Wichita - 80,000 square feet. For its time, the Keen Kutter Building was considered "thoroughly modern," with an automatic sprinkler system that included a 20,000 gallon water tank located twenty feet above the sprinkler heads in the tower or cupola portion of the building. Designed by St. Louis architects Mauran, Russell and Garden - a substantial amount of the firm's work in St. Louis is presently listed in the National Register of Historic Places. The Morton-Simmons/Keen Kutter Building is being nominated to the Wichita Register of Historic Places based on several criteria, including: 1) Character, interest or value as part of the development, heritage, or cultural characteristics of the City of Wichita, State, or United States. The Keen Kutter Building reflects an example of the broad commercial base the Old Town area enjoyed at the turn- of-the century. Industries found in Old Town related directly to the agricultural, livestock production and manufacturing prominence Wichita had attained during the early part of the 1900s. 2) Exemplification of the cultural, economic, social or historical heritage of the City. The Keen Kutter Building provides information on the development and economic success of the Old Town area, known as Wichita's original "jobbing and warehouse district." 3) Relationship to other distinctive buildings, sites, or areas which are eligible for preservation according to a plan based on historic, cultural or architectural significance. The Old Town area has been identified through historic surveys for its unique historic and architectural qualities. Several buildings in the Old Town area are currently included in the Register of Historic Kansas Places and the National Register of Historic Places. 4) Unique location of singular physical characteristics representing an established and familiar visual feature of a neighborhood, community or city. Because of its unique architectural styling, prominent rooftop cupola and overall size and scale, the Keen Kutter Building has served as a beacon in Wichita's skyline for more than 90 years. It is the most visually prominent landmark in the Old Town area. Over the years, the building has received sporadic maintenance, so that it now suffers from serious structural problems. Since the physical decline of the building has proceeded for years, several elements of the structure are in particular danger of collapse, including the structure's roofing system. Recently, the City of Wichita issued a "Dangerous Building Notice" to the building's owners that followed a series of "Building Violation Notices" issued over the past year. Currently, the property owner is the process of completing final plans for the rehabilitation of the building from a warehouse/office building to a multi-screen theater complex. Until recently, the only protective status enjoyed by the building was its inclusion in the City's Historic Preservation Plan, adopted in December 1990, that identified the Keen Kutter Building as a "Non-Designated Historic Resource," recognizing the building as being potentially eligible for inclusion in the local, state and national historic registers. In response to its deteriorating condition and to its lack of register status, in August 1996, the Historic Preservation Board moved at the owner's request to direct City preservation staff to complete a nomination form on the Keen Kutter Building, with the goal of placing the building on the local register - the Wichita Register of Historic Places. At its September 9, 1996 Historic Preservation Board meeting, preservation staff presented a landmark nomination that was then approved by the Board. The Historic Preservation Board also approved the Revolving Loan Fund request in the amount of $150,000. Those funds are to be earmarked specifically for the restoration and rehabilitation of the building's cupola. Similar City Council-approved Revolving Loan Fund projects include a 1991, $100,000 loan to Larkspur restaurant, and a 1995, $190,000 loan to Campbell Castle, for the adaptive reuse of the facility's carriage house. The City's Historic Preservation Ordinance directs the Metropolitan Area Planning Commission to review proposed new landmarks and to determine whether the designation is consistent with adopted plans. At its October 17, 1996 meeting, the Planning Commission voted unanimously to approve the designation. The Council adopted "Development Plan for Downtown Wichita" indicates the successful revitalization of red-brick warehouse districts is dependent, "...in part, to the careful rehabilitation of the existing fabric, so that the historical character is not diminished." Designation and subsequent loan approval will assist with the rehabilitation of this building and the preservation of the existing Old Town warehouse fabric. The maximum amount allowable through the Revolving Loan program is $25,000. If a request is received which exceeds $25,000, a 2/3 majority vote by the Historic Preservation Board and a majority vote of the Wichita City Council is required for approval. The Revolving Loan Program for Historic Properties funds are made available at a rate of four (4) points below the Prime Rate, over a period of twenty years. The purpose of the loan is to provide low-interest loans to encourage the preservation and rehabilitation of historically and architecturally significant structures in Wichita. Presently, there is approximately $146,000 available in the fund. Dave Burk, property owner and loan applicant, is requesting that funds be made available in January 1, 1997, when through outstanding loan repayments, the total available amount will exceed $150,000. The Neighborhood Improvement Services section of the Office of Central Inspection administers the funds and also monitors the projects as they progress. Local landmark designation will require the property owner to have all exterior modifications, alterations and additions that require the issuance of building or other permits, including demolitions, to be reviewed by the Historic Preservation Board, except for "emergencies." Landmark designation also qualifies the building for funds through the Revolving Loan Program for Historic Properties. Council Member Cole Council Member Cole said the President of the Historic Preservation Board was assured by Mr. Burk that the proceeds from the Revolving Loan Program would be used only for the restoration of the tower of the Keen Kutter Building. It is understood that the loose brick has been or is being removed, the windows on the lower floors are being screened, and that last weeks high winds did not result in any additional damage. David Burk David Burk, Keen Kutter owner, said he has contacted several people and has a good chance of putting this together this year. Mr. Burk said he has liability insurance on the building and has taken measures to protect the safety of individuals. Some of the roofing membrane has come down in the past. That is in the past and things are now moving forward. Council Member Kamen Council Member Kamen said the safety of people is extremely important and the repairs to the building have to be done. Sometimes there is debris over a large area and bricks have fallen in the last two weeks. David Burk David Burk said a mechanism to keep debris from falling off the roof was being installed today. Regarding how contractors would be approved, Mr. Burk said that would be dependent on the partnership owners. One of the owners has his own company. Mr. Burk said he would advise Council Member Rogers when that is known. Mayor Knight Mayor Knight inquired if anyone wished to be heard. Greg Kite Greg Kite, Vice President of the Historic Preservation Alliance of Sedgwick County, said the Keen Kutter architecture is of historical significance in Wichita and Old Town. The building should be preserved and kept for posterity. Kurt Schroeder Superintendent of Central Inspection said OCI's first involvement was in August of 1995 when vagrants were a problem as the building was open and accessible. The owner resecured the windows and doors and repaired the north wall (loose brick and mortar). Central Inspection went through the building which is post and beam. The interior does not rely on the exterior for support. There are roof problems which are being worked on. The building looks secure. There are few areas of low loose brick which is being worked on to secure. Several notices to repair have been given and the owner has generally complied. Dangerous building notice was given in late September. Work has been accomplished with the owners and no criminal complaint has been issued. Motion -- Cole moved that the nomination and the loan request be approved. Council Member Ferris Council Member Ferris said the City should wait and allow the owner to get the building in condition. The owner should bring information to the Council in the form of a proforma or letter of intent to lease from prospective tenants. Council Member Cole Council Member Cole said the Historic Preservation Board agreed to preserve $150,000. The funds for historic preservation are up to about $750,000 with about $6,000 coming in each month. The Historic Preservation Board motion was that the funds not be drawn down on until proper steps have been taken. Subst. Motion -- Kamen moved a substitute motion that this be deferred until the wind screen is in place, the roof is netted, and the loose brick is cemented. Council Member Kamen said he was trying to use the loan proceeds as motivation for the developer to make the building safe. Amendment -- Cole, with consent of the second, amended the motion to add that the safety of the building be made safe immediately, and that the funds not be released until these steps are taken. Amendment -- Kamen, with consent of the second, amended the substitute motion to defer the Item one week. -- failed Substitute motion, as amended, failed 4 to 3. Cole, Ferris, Knight, Rogers - No. Motion restated -- Cole restated the motion and moved that the nomination of the Keen Kutter Building to the Wichita Register of Historic Places be approved and the Ordinance be placed on first reading, with publication being withheld until after January 1, 1997, and until after concerns are met; the Revolving Loan Program for Historic Properties loan request in the amount of $150,000 be approved, in accordance with conditions set forth by the Historic Preservation Board, and the City Council be apprised of the project before drawing down of funds; and the -- carried building be made safe, immediately, and maintained safe. Motion carried 7 to 0. ORDINANCE An Ordinance designating, as an Historic Landmark, certain property located in the City of Wichita, Kansas, under the authority granted in Section 5-C of the Wichita-Sedgwick County Unified Zoning Code, introduced and under the rules laid over. MAAIC MID-AMERICA ALL-INDIAN CENTER SITE IMPROVEMENTS. (District VI) Continued from November 19, 1996, for further evaluation. Chris Cherches City Manager reviewed the Item. The City Manager suggested that, to obtain a more accurate reading of the costs, the City Council could approve staff taking bids again on the various elements and, this time, breaking the bid down in the various improvement components (parking lot, excavation, drainage, sidewalks, Central Street access). Mayor Knight Mayor Knight inquired if anyone wished to be heard. John Ortiz John Ortiz, Director of the Mid-American All Indian Center, asked for the support of the City Council and said the expansion is critical to the growth of the Indian Center. Motion -- Cole moved that the project be approved and the Resolution be adopted; and that rebidding of the project be authorized (as outlined by and the bids be returned -- carried to the City Council on the regular Agenda. Motion carried 6 to 1. Kamen - No. RESOLUTION NO. R-96-412 A Resolution authorizing the issuance of Bonds by the City of Wichita at large for public improvements for the Mid-America All-Indian Center Parking Lot (472-82778), presented. Cole moved that the Resolution be adopted. Motion carried 6 to 1. Yeas: Cather, Cole, Ferris, Gale, Rogers, Knight. Nays: Kamen. MUNICIPAL COURT MUNICIPAL COURT REPORT. Agenda Report No. 96-955. In 1995, a Municipal Court Task Force was formed to review activities within the Municipal Court and make recommendations on improvements to the court. This report was reviewed by internal staff action teams which took the recommendations of the Task Force and prepared action steps for implementation. In March, 1996, the City Council approved a series of specific tasks and improvements and authorized implementation. Among the improvements approved were data management upgrades, organizational structure modifications including additional court and legal personnel, warrant office upgrades, indigent defense, and administrative and traffic courts. The City Council approved approximately $1.1 million ($734,370 budgeted funds and $396,430 from Public Safety Initiative allocation) to implement these improvements. With the approvals, the City Council requested the Court report to the City Council on a regular basis on the activities of the Court and to provide quarterly written reports. Council Member Kamen momentarily absent. Harold Flaigle Municipal Court Administrative Judge reviewed the Item. Judge Flaigle said the Municipal Court was in a crisis but things are getting better. There are a tremendous number of cases coming to court. A better job is being done of tracking the cases and better information is in the system. On one day, there were over 2,000 persons who went though the metal detectors. This did not include the number of people there to pay fines, police officers, and for other Municipal Court served persons who do not go through the metal detectors. There is a real people problem. Council Member Kamen momentarily absent. There is not a lot of control over the number of cases that come to Municipal Court. In some ways, Municipal Court has increased its own case load (i.e., the Time to Pay Docket). On the other hand, collections on those fines have been increased by approximately $900,000. An amended report was given to the Council Members which indicates that, right now, Municipal Court is averaging about 100 cases per day for trial. If estimates are correct, that number will more than double - a tremendous work load through the court system in terms of the number of cases actually set for trial. Judge Flaigle said he met with the City Manager on November 21st and the meeting was productive and the Manager was sensitive to the fact that this is a serious problem. "Obviously, I would stand before you and ask for more staff and another judge. I think that is certainly the direction that we are going to have to go - but not the only solution. There are other solutions out there and we are constantly working towards that." Regarding continuances, Judge Flaigle said there are a number of reasons for continuances with requests coming from the defendant or the City. If an individual is placed on the Time to Pay Docket and is given time to pay, if that persons comes back at the end of the given time to pay and requests additional time to pay, the inclination is probably to give additional time to pay. The Pre-Trial system was implemented but it also added several thousand continuances because cases were set on a pre-trial docket, in hopes of being disposed of there, and if it did not get disposed of there it would then be placed on a Trial Docket. Council Member Cather Council Member Cather said that in the case of domestic violence cases, it is relatively common that the victim does not show up and an additional continuance is given to try to get the victim to appear. This is frustrating but in the best interest of the Court. The real problem is the 30 percent increase in new cases. The pretrial docket is being discontinued as of January 1st. There is a need for more prosecutors because without the pretrial docket, there will be more cases set for trial. At the minimum, one additional prosecutor needs to be added to be present at all arraignments. There should be one prosecutor at the pretrial docket and the pretrial docket should not be terminated in January. Council Member Cather said what is occurring is a repeat of the situation with City Court years ago, with Municipal Court absorbing the load. There needs to be a way to force District Court to take back some of the load. Legislature is needed to accomplish the need for District Court to take over some of the cases. Mayor Knight momentarily absent with Vice Mayor Cather in the Chair. Council Member Rogers Council Member Rogers said he disagreed with the need for additional judges and prosecutors without additional information regarding the additional support personnel needed. A lot of adjustments could be made. Chris Cherches City Manager, regarding traffic court being held in Council Chambers, said this has not yet been implemented as a Charter Ordinance is required. Implementation is scheduled for sometime after the 1st of 1997. Council Member Cole Council Member Cole said she was unwilling to add people until the other things are done. Council Member Ferris Council Member Ferris agreed and stated that many of the recommendations were not to take effect until January. There is enormous miscommunication between the City Attorney, Prosecutors, City Manager, Acting Municipal Court Administrator, and the Police Chief. These people should meet and sort out their differences. Mayor Knight Mayor Knight inquired if anyone wished to be heard . Jeff Syrious Jeff Syrious, public defender, said there are eight part-time public defenders who work Tuesday through Thursday, four defenders each day. The defenders are paid $1,500/month. The cost of the program is $144,000/year. In 1995, there were 6,000 people, 12,000 cases with an average of 3 counts per case, for a total of 36,000 charges handled by the public defenders. Oklahoma City has four full-time attorneys with a $317,000 budget. In 1995, they reported 1,200 people served. The public defenders have been in negotiations with the City of Wichita. In July a RFP was issued. Only the present group of public defenders responded and the bid was rejected. An Addendum was issued which proposed $270,000 for 15 attorneys which translated to increased attorney positions with no raise. The Addendum was rejected, primarily, because it required an outside office which cannot be provided for a price the City of Wichita would be willing to pay. Mr. Syrious asked that a written contract be required and that consideration be given to adding one person, primarily for Tuesdays. Council Members Cole and Gale momentarily absent. Motion -- Ferris moved that the report be received and filed; the City Attorney be instructed to bring the Charter Ordinance on the implementation of the administrative process for traffic situation to the Council before January; and that the City Manager, Acting Municipal Court Administrator, the Administrative Judge, the Police Chief, and the City Attorney have no less than two meetings in the next three or four weeks to resolve some of these issues, and after that to include Council Member Cather and one other Council Member who may have an interest, to resolve some some of the miscommunications and misunderstandings and to come up with ways to solve procedural issues; and then a report be brought back to the City Council. Council Member Ferris Council Member Ferris said he wanted only Staff, people within this building, to communicate with no outside interference. -- carried Motion carried 7 to 0. Council Member Rogers momentarily absent. NEW BUSINESS ADDENDUM ITEM 4A. MTA FUNDING REQUEST REQUEST OF METROPOLITAN TRANSIT AUTHORITY (MTA) BOARD FOR ADDITIONAL FUNDING FOR FISCAL YEAR 1996. Chris Cherches City Manager introduced the Item. Agenda Report No. 96-983. due to federal funding cutbacks for 1996 (a loss of approximately $840,000 for the year), the WMTA implemented two courses of action to offset the loss of these funds: The implementation of a fare increase on April 1, 1996, and the cutback in bus service effective September 30, 1996. Additionally, City Council approved, earlier in the year, an additional $300,000 local share commitment to save Saturday service for the year. Anticipated expense savings and revenue projections for October were not realized. This was not known until actual information for the month became available early November. Emergency procedures by WMTA management were put in effect to immediately impact any further expenditures. Staff presented MTA Board, at the November 21, 1996, Board meeting, the shortfall projection facing the Department by end of the year. The shortfall is attributed to less than expected fares generated and expenditures overage in Operations division (fixed route bus service) and the rapidly expanding demands for specialized transportation services (van service). The WMTA Board's decision at this meeting was to request City Council approve an emergency transfer of $150,000 in funds to cover the projected WMTA shortfall. Without this action, WMTA would have to terminate all bus and specialized transportation services on December 4, 1996, to the end of December. This action would require a transfer from general funds to the City's share of support within WMTA Revenue Budget. Gary Winget Gary Winget, President of the MTA, said the City Council, on March 5, 1996, took action to supplement the MTA budget at the level of $300,000, and gave further instructions of things to be done by the MTA. Those things were done by the MTA and the MTA determined that, in order to come under the 1996 budget, the MTA would have to implement the 1997 cuts on October 1, 1996, which was done. In projections, it has been discovered that the MTA is going to fall short and, by the 5th of December, be broke. One complication has been a surprise. A ridership increase from fixed routes, which have been cut, has been increased to the van service which is a little bit more than twice as expensive to do. There is no control over the van service as it is mandated by under the ADA rules that the service be provided. Many of the persons that were on fixed routes are eligible for ADA and so they call the MTA and request a van ride. There has been a $45,000 shortfall in that part of the budget. "I am going to take it back to our Board and we are going to seek federal legislative relief." It is impossible to work with a mandated service that cannot be capped and must be provided. It is a classic unfunded federal mandate. Mr. Winget said the Board found out at their Thursday meeting about the shortfall. It was thought that the reductions which started October 1st would correct the problem. The projections were wrong. Real current data is not received on the cash flow and so staff did not know until Tuesday, September 19th, that there was a problem. Council Member Kamen momentarily absent. Mayor Knight Mayor Knight said the MTA came before the City Council and was told the MTA would receive $300,000 plus some supplements. There are people on the Board who clearly understand that when something is brought to the City Council at the end of November, there is virtually no financial opportunity to do much about the situation. Michael Melaniphy Michael Melaniphy, responding to questions, said the contract with his company was about $80,000 and the company represents approximately 100 cities. Mr. Melaniphy said he met with the Manager on Wednesday. MTA Staff told Mr. Melaniphy late Tuesday with final numbers received on Wednesday. Projections could not be made based on budget figures until October had come to fruition because such major service changes were made at the end of September. As soon as the October figures were available (after the second week in November), then projections could be made and the discovery was made. There is not enough money to operate until the end of the year. The MTA will be at a deficit after December 4, 1996. There are about 8,500 riders per week by bus and about 13,000 riders per week by van. There is a $1.00 bus fare and a $2.00 van fare. Council Member Ferris Council Member Ferris said that, in his business experience, when shortfalls are projected, expenses are cut and prices are raised. If fees were increased by $.50 per ride, there would be sufficient funds to take care of the problem. Rates need to be provided and a higher level of service needs to be provided. Council Member Ferris said he would not vote to allocate additional moneys until the MTA realizes that revenues need to be generated within as well. Motion -- Knight moved that the City Council find out what the figure is, in terms of the anticipated deficit for the MTA, and that amount be allocated; and Mayor Knight Mayor Knight said these matters with the MTA will not change until there is strategy accommodation. The City Council is being told that the MTA is doing this the best they can and they will continue to force fit the fixed route system in the City of Wichita. Mayor Knight asked to be notified of the final figure. -- carried Motion carried 6 to 1. Ferris - No. Council Member Kamen left the Bench. GAS DISTRIBUTION ORDINANCE GOVERNING DISTRIBUTION AND TRANSPORTATION OF GAS WITHIN THE CORPORATE LIMITS OF THE CITY OF WICHITA. Joe Lang First Assistant city Attorney reviewed the Item. Agenda Report No. 96-971. On December 19, 1995, the City of Wichita entered into a contractual agreement with David M. Griffith & Associates (DMG) to audit franchise holders for compliance with City Ordinances for up to a four year period. DMG performed the Southwestern Bell Telephone, Multimedia, Kansas Gas & Electric, and Kansas Power & Light audits. The City's Internal Auditor performed the People's Natural Gas audit. Under payments were discovered in all franchise audit reviews. Categories of underpayment included excluded revenue accounts, excluded City addresses from the franchise base calculation, delays in including new address in the franchise base, improper exemption of customer accounts, improper adjustments, improper bad debt write-offs and interest. Several annexation and city-wide addresses were discovered to be excluded from the franchise base in all franchise ordinances. The process of notifying utilities of annexations completed by the City of Wichita has changed. In addition to providing an annexation map, the City is now identifying specific addresses to be included in the franchise base calculation. In addition, all new addresses assigned within the City limits are distributed. Transportation revenues are not included in the franchise base for the gas utility franchise holders. Transportation revenue is revenue received by the franchise holder for allowing a third party gas supplier to distribute gas to consumers. The annual revenue lost from the exclusion of transportation from our ordinance is the following (assuming a 5% franchise rate on transportation): People's Natural Gas $ 30,000 Kansas Power & Light $100,000 Total $130,000 A transportation ordinance is recommended. The environment in which gas has traditionally been sold has changed and the two natural gas franchise holders are selling their pipeline capacity , or "transportation", to third party suppliers of gas or brokerage houses. The current franchise places an unfair burden on the current franchise holders. For example, if People's Natural Gas (PNG) is the seller of gas, then a 5% franchise fee is applied to both the transportation and the sale of gas (since it is a combined transaction); however, if UtiliCorp is the supplier of gas and distributes the gas through PNG's pipeline, a franchise fee is avoided completely. The franchise ordinances do not include interest provisions for delinquent payment. When negotiating new franchise agreements, an interest rate for delinquent payment should be included. In absence of any interest provisions in the ordinances, the City relied on K.S.A. 16-201 which allows an interest rate of 10% to be applied when no other interest is agreed upon from money after it becomes due. Franchise holders are not providing adequate detail when remitting monthly payments to the City for review of the franchise payments reasonableness and completeness. A recommended payment form has been included in each franchise report. The current franchises with natural gas providers (Peoples Natural Gas and Kansas Gas & Electric) require a payment for use of right of way based upon the gross receipts of the company for the sale of natural gas. The utilities have not included fees from the transportation of gas for third parties. In addition, many sales are being made by entities that are not franchised. This proposed ordinance seeks to require payment equally by all entities that are using distribution systems located in the public right of way for the transportation, distribution, or sale of gas. This ordinance will seek to ensure that the City is receiving appropriate compensation by all users for the use of right of way. The proposed gas transportation and distribution ordinance applies to all entities that use distribution systems in the City for distribution to any consumer within the City. The ordinance applies to the transportation, distribution, or sale of natural gas (including furnishing, sale, lease of pipeline capacity, or charges for transportation of natural gas by such entities), except 1) activity covered in the current franchises, 2) purchases, receipt, or uses outside the City, 3) sales to a franchised entity where the natural gas is resold and reported as gross receipts by a franchised entity, 4) transportation by an entity solely for its own use, or 5) business transactions that do not involve actual distribution to consumers in the City. The ordinance requires any entity subject to the ordinance to get a franchise from the City which contains the following provisions: a) Payment of 5% of the gross receipts received by the entity for the transportation, distribution, or sale of natural gas to others; b) Hold the City harmless from liability; and c) Requirements for construction and use of the right of way if the Provider is using its own facilities; d) The term of the franchise should coincide with the term of the current gas franchises to allow coordination of levy methods when new franchises are negotiated. It is anticipated that non-exclusive franchise ordinances may be adopted periodically that grant the franchise rights to entities that have applied for a franchise. Any entity subject to the ordinance which has not acquired a franchise will be subject to an occupation tax under the City's Home Rule powers and K.S.A. 12-194. This occupation tax will have the following provisions: a) It will be levied on the privilege of engaging in the business of transporting, distributing, or selling natural gas through distribution systems located in the public right of way to consumers in the City; b) It will be levied in an amount of 5% of the gross receipts received by the entity for such activity; and c) Credit will be given for any franchise payments. Payment is required upon the effective date of the ordinance. All entities using the public right of way and subject to the ordinance, are required to report and register such use to the City within 30 days of the effective date of the ordinance. Payment will thereafter be made to the City on a quarterly basis under an accounting system (including right to audit) that is adopted by resolution of the City. Alternatively, the City may negotiate with current franchised gas companies to serve as the City's agent for such collection and reporting of payments and use. Interest is 1 ½ percent per month for late payments. Violation of the ordinance is a misdemeanor. Because the occupation tax alternative requires special statutory provisions, this ordinance must be adopted by 2/3 of the Council and is effective 61 days after final publication unless there is a sufficient petition for a referendum. The City should anticipate increased franchise revenues from the correction of historical errors combined with higher compliance with the franchise ordinances. In addition, the City will replenish gas franchise revenues through the implementation of an Ordinance governing the distribution, transportation and sale of gas in the City of Wichita. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Ferris moved that the Ordinance governing the distribution, transportation, and sale of gas within the corporate limits of the City of Wichita be placed on first reading; the franchise audit reports be received and filed; and that staff -- carried pursuit of audit assessments be approved. Motion carried 6 to 0. ORDINANCE An Ordinance of the City of Wichita pertaining to the transportation, distribution, and sale of natural gas through distribution systems in the city; requiring a franchise; and establishing an occupation tax on the privilege of engaging in the business of transportation, sale, or distribution of natural gas, introduced and under the rules laid over. VENT FREE HEATERS VENT FREE HEATERS. Chris Cherches City Manager reviewed the Item. Agenda Report No. 96-972. The Board of Health, the Mechanical Board, and the Plumbing Board were requested by the City Council to investigate the health and safety aspects of vent free heaters equipped with oxygen depletion sensors (ODS) and make recommendations regarding whether or not these heating appliances should continue to be sold and installed in residences in Wichita. Vent free heaters with ODS includes free standing heaters used as a supplemental heating source as well as several varieties of ceramic-type fireplace inserts that are being installed in homes in and around Wichita. On September 12, 1996, the three boards conducted a joint public hearing to solicit information regarding the safety and health effects of emissions from vent free heaters. Individuals who spoke at the meeting included dealers (those who sell vent free heaters and those who do not), homeowners with vent free heaters, a physician with KU Medical Center, and public officials from the City, County and State. Written comments were also received. Much of the information presented (laboratory reports and health studies) addressed the pollutants created by these units and the long term effects from exposure over a period of time. Each board discussed the information at its next meeting and voted on a recommendation to the City Council. The positions taken by the Health and Plumbing Boards were based on health concerns related to emissions from vent free heaters and the effects of indoor pollutants on persons exposed to them; the position of the Mechanical Board was based on safety approvals of these appliances by American Gas and Underwriters Laboratories. The three Board's recommendations are as follows: Unanimously voted to recommend a total ban on the sale, installation and permitting of vent free heaters for residential application beginning on July 1, 1997, with interim measures to institute an immediate awareness program for new purchases and to educate present users of potential health risks. The Board of Health stated that, at a minimum, these heaters should be subject to the following requirements: buyers of these units need to be aware of the potential risks from emissions of vent free heaters by signing a statement of acknowledgment; warning labels should be attached to each heater; a carbon monoxide monitor should be placed on each unit sold; heaters should not be installed in any residence without a primary heat source; and public education should be provided to alert present owners of possible health risks from vent free heater emissions. Unanimously voted to ban sales and installation of vent free heaters. (The Plumbing Board is responsible for regulating the installation of gas piping to such appliances.) Unanimously voted to allow continued use of the heaters as per the present City Code. (The Mechanical Board is responsible for enforcing the ordinance which regulates the installation of fuel burning appliances.) Should the Council vote to discontinue the sale and installation of vent free heaters the current ordinance would need to be amended to reflect this policy change. The Board of Health, Mechanical Board and Plumbing Board investigated the health and safety aspects of vent-free heaters. Mayor Knight Mayor Knight inquired if anyone wished to be heard. David Dewherst David Dewherst, President of Midwest Environmental Products, said millions of these stoves have been sold since 1980. The sale has been approved by 44 states and several associations. Noting in their 16-year history indicates there is a problem with the heaters. There are no health problems evident. Mary Lou Rivers Mary Lou Rivers, RivCo, said they have sold the heaters for a number of years and know of no problems. Mayor Knight momentarily absent with Vice Mayor Cather in the Chair. If the heaters are banned, people will go elsewhere to sell them or will continue to sell them here anyway. Also, the heaters can be ordered through magazines and catalogs. Ronald Lyon Ronald Lyon, Attorney, said he bought a ventless heater for is home and had problems which were monitored by the Health Department. Mr. Lyon spoke in favor of the ban. Cody Ray Cody Ray, Fairbank Equipment, said his company had sold over 1,000 and had not had one negative comment. Brad Thome Brad Thome, Board of Health, said said the Gamma Study was not applicable to real life situations and there was concern about the validity of this to measure safety. The concern is with the sensitive population. Pat Richardson Pat Richardson, Mechanical Board, stated that there are documented cases of illnesses and incidents from using these devices. Mr. Richardson urged ban of these heaters. Robert Conger Robert Conger, Sedgwick County Fire Department, said current tests and standards are in place. Mr. Conger suggested a vote against the ban as further study is needed. Larry Cox Larry Cox, High Plains Distribution, said the problem with the product is when it is not used correctly. It is absurd to grandfather units and educate the public. Dr. Fred Tosh Dr. Fred Tosh, Board of Health, said he doubted if many would operate the units with a window open. Dr. Tosh said the Board felt the heaters should be banned. It is not believed the heaters are as safe as claimed. Council Member Gale momentarily absent. Council Member Ferris Council Member Ferris said there are potentially dangerous things in all homes but common sense is needed. It may be that better labeling is required. Council Member Rogers Council Member Rogers stated that there is not enough evidence to ban ventless heaters but, perhaps, warning labels might be used. Council Member Cather Council Member Cather said there was a joint meeting of the three Boards on September 12, 1996, which was mandated by the City Council. Council Member Cather said he was at that meeting and saw one person sitting at the Mechanical Board table. Kurt Schroeder Superintendent of Central Inspection stated that the Board Chairman, the Board Member sitting at the table, and maybe one other Mechanical Board Member present. Council Member Cather Council Member Cather said two of seven Mechanical Board Members showed up at the joint hearing and heard the testimony about the ventless heaters. All of the members voted on the recommendation to the Council. Kurt Schroeder Superintendent of Central Inspection said the Mechanical Board Members had heard evidence regarding ventless heaters at other Mechanical Board meetings. Council Member Cather Council Member Cather said it is quite significant that there was not a quorum present to hear the testimony, yet they voted. "It is my feeling that this is really a scandalous kind of behavior. The administrative law standard for the actions of cities, of governmental units who make recommendations, who pass regulations, is that we not act in an arbitrary and capricious manner. I do not understand how the Mechanical Board can be asked to go to this meeting, mandated meeting, and act in this kind of a fashion and it not be arbitrary and capricious. "I think that this Council ought to make a finding that the Mechanical Board did not do what we mandated that they do in conjunction with the Plumbing Board and the Health Board." Mayor Knight absent with Vice Mayor Cather in the Chair. Motion -- Ferris moved that vent free heaters not be banned; that if the Health Board or another Board believes that additional labeling needs to take place, the Board can bring that up to the City Council as a separate issue. Subst. motion -- Cather moved a substitute motion that the the City Council make a finding that the Mechanical Board did not meet its mandate by the City Council to have at least a quorum of its members present at the September 12, 1996, meeting; and -- died that vent free heaters be banned. Substitute motion died for lack of a second. Mayor Knight present and in the Chair. Council Member Rogers Council Member Rogers said he would like to see the minutes of the meeting of the joint Boards on September 12, 1996, and that he would be receptive to Cather's substitute motion if it were isolated from the ban. Issues ought not to be merged. -- carried Motion carried 5 to 1. Cather - No. (Kamen absent) CITY COUNCIL AGENDA APPOINTMENTS APPOINTMENT TO WICHITA-SEDGWICK COUNTY ALCOHOL AND DRUG ABUSE ADVISORY BOARD. One appointment (Council-at-large), for a term expiring June 30, 1997. Motion -- Knight appointed Janice Arbuckle and moved that the appointment be approved. -- carried Motion carried 6 to 0. (Kamen absent) Notice of Vacancy - Commission on the Status of People with Disabilities. One vacancy (Kamen), due to the nonattendance of Sandy Medley, for a term expiring June 30, 1997. Appointment will be made December 17, 1996. PROCLAMATIONS PROCLAMATIONS. -- Warm Hearts Week Motion -- carried Knight moved that the proclamations be authorized. Motion carried 6 to 0. (Kamen absent) OFF AGENDA ITEM NEIGHBORHOOD MEETINGS - LEAVES AND GRASS. Motion -- Cole moved that the rules be set aside and an Item be brought up off the Agenda. -- carried Motion carried 6 to 0. (Kamen absent) Council Member Cole Council Member Cole said she had wished to take the leaves and grass ban issue to neighborhood associations and the CPO prior to voting on the issue. Council Member Cole said she has had requests from several neighborhood associations to have this issue discussed at their monthly meetings. It is hoped that Staff could be ready to take this issue to the neighborhoods by late January or during the month of February, 1997. Council Member Cole said she wants to be able to talk to those persons who are interested in how that may work and what the consequences of that decision will be. Motion -- Ferris moved that Staff be authorized to assist any of the Council Members in -- carried this issue. Motion carried 6 to 0. (Kamen absent) CONSENT AGENDA Knight moved that the Consent Agenda, including Addendum Item 30, except Items 23 and 29, be approved in accordance with the recommended action shown thereon. Motion carried 6 to 0. (Kamen absent) BOARD OF BIDS REPORT OF THE BOARD OF BIDS AND CONTRACTS DATED NOVEMBER 25,1996. At 10:00 a.m., Friday, November 23, 1995, 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 November 25, 1996) PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION: SEWERS, PAVING AND WATER MAINS AS PER SPECIFICATIONS 1994 Main Replacement Group 3: Circle, from Bluff to (Quentin) Roosevelt (88820); 14th, Dellrose to Pershing (88817); Dellrose, 15th to 14th St. No. (88818); Terrace, Central to Murdock (88816); Erie, Kellogg to Gilbert (88814) - $360,000.00. Traffic to be maintained during construction using flagpersons and barricades. (Council approval date 7-18-95) (District I & II) (448 88820/88817/88818/88816/88814/632133/544- 070) Dondlinger Construction Company, Inc. - $266,705.00 Knight moved that the contract(s) be awarded as outlined above, subject to check, same being the lowest and best bid within the Engineer's construction estimate, and the Mayor be authorized to sign for the City. Motion carried 6 to 0. (Kamen absent) PUBLIC WORKS/FLEET & BUILDINGS: DEMOLITION & ASBESTOS REMOVAL OF NINETEEN (19) PROPERTIES (701680-2599) AS PER SPECIFICATIONS L & L Construction & Excavation - $114,396.00 (Total Net Bid) PUBLIC WORKS/FLEET & BUILDINGS: REPLACEMENT OF ROOF AT EDGEMOOR RECREATION CENTER (130591) AS PER SPECIFICATIONS Larry Booze Roofing, Inc. - $19,631.80 (Lump Sum Total Base Bid) Option 1 - $13,966.80 (Lump Sum Total) Option 2 - $ 2.00 (Per Square Foot) PUBLIC WORKS/FLEET & BUILDINGS: ROOF, DOOR, DOOR FRAME AND MISCELLANEOUS REPAIRS TO VARIOUS PARK DEPARTMENT BUILDINGS (785543-2505)AS PER SPECIFICATIONS Group I - Williamson Construction Co. - $31,452.00 (Total Net Bid) Group II - Van Asdale Construction - $6,600.00 (Total Net Bid) Group III - Williamson Construction Co. - $4,711.00 (Total Net Bid) Group IV - Williamson Construction Co. - 1,335.00 (Total Net Bid) Group V - Williamson Construction Co. - $8,093.00 (Total Net Bid) Option 1 - Williamson Construction Co. - $2.50 (Per Sq. Ft.) Option 1 - Van Asdale Construction - $1.25 (Per Sq. Ft.) PUBLIC WORKS/FLEET & BUILDINGS: FIRE ALARM SYSTEMS TESST AND INSPECTION AT VARIOUS BUILDINGS (205203) AS PER SPECIFICATIONS Simplex Time Recorder Co. - $13,537.00 (Total Net Bid) Option 1 - $6,011.00 (Lump Sum) HUMAN SERVICES/WHA: INSTALLATION OF HVAC EQUIPMENT AT SCATTERED SITES (127720-2803 WHA196) AS PER SPECIFICATIONS Manny's Heating and Air Conditioning Inc. Group I $ 8,250.00 (Total Net Bid) Group II $ 8,250.00 (Total Net Bid) Group III $ 8,250.00 (Total Net Bid) Group IV $ 8,250.00 (Total Net Bid) Group V $11,000.00 (Total Net Bid) PUBLIC WORKS/FLEET & BUILDINGS: SNOW PLOW BLADES (130849-5401) AS PER SPECIFICATIONS Welborn Sales Inc. - $16,920.00 (Total Net Bid) VARIOUS DEPARTMENTS: 75 HP RUBBER-TIRED FLAT DECK TRACTOR AND 54 HP RIDING COMMERCIAL OUT FRONT ROTARY MOWER (037200) AS PER SPECIFICATIONS Group I - Refer back to Airport Authority for Award Group II - Excel Sales - $18,840.00 (Total Net Bid) Option 1 - Lump Sum - Deduct $1,000.00 WATER & SEWER/SEWAGE TREATMENT: NEW CURRENT MODEL FOUR WHEEL DRIVE ARTICULATED WHEEL LOADER (632166) AS PER SPECIFICATIONS The Victor L. Phillips Co. - $159,930.00 Option 1 - Lump Sum - Deduct $29,400.00 WATER & SEWER/WATER DISTRIBUTION: INSTALLATION OF UTILITY WATER SERVICE LINES & METER SETTERS (634006) AS PER SPECIFICATIONS Mies Construction - $82,000.00 (Plus Applicable Sales Tax) PUBLIC WORKS/FLEET & BUILDINGS: FOLDING PORTABLE ARENA CHAIRS (791293) AS PER SPECIFICATIONS KI - $134,413.60 (Total Net Bid) PUBLIC WORKS/FLEET & BUILDINGS: FLOOR COVERING REPLACEMENT (791491) AS PER SPECIFICATIONS Star Lumber & Supply - $199,430.00 (Total Net Base Bid)* *Negotiated Price Knight moved that the contract(s) be awarded as outlined above, same being the lowest and best bid. Motion carried 6 to 0. (Kamen absent) LICENSE APPLICATIONS APPLICATIONS FOR LICENSES TO RETAIL CEREAL MALT BEVERAGES. Renewal 1996 (Consumption on Premises) Mon Fee Wong Golden Dragon Restaurant6100 E. 21st #180* Kim Gibson Reflection Ridge Golf Corp.4201 E. 21st St. dba Braeburn Golf Club at WSU Carmen Garcia Mexico Cafe Inc.2227 N. Broadway Tony M. Gallegos Sim Park Golf course2020 W. Murdock (Consumption off Premises) John R. Leftwich C Mart #9112 10723 West Hwy 54 John R. Leftwich C Mart #9166 7990 East Central and Rock New Establishment 1996 (Consumption on Premises) Thuy Thi Nguyen Ortiz Monica 333 E. English Suite 120 * Located within 150 feet of residential district. Motion -- Knight moved that the licenses be approved subject to Staff review and -- carried approval. Motion carried 6 to 0. (Kamen absent) PLANS AND SPECS. PLANS AND SPECIFICATIONS. a. 1996 Contract Maintenance Arterial Curb Repair and Miscellaneous Concrete Repair, Phase II on Douglas from Seneca to McLean. (132258/112000) Traffic to be maintained through construction. (Council approval date 01-23-96) (District all) b. 1996-1997 CDBG Northeast Area Asphalt Mill and Overlay on Cleveland from 9th to 10th, and Concrete Pavement Repairs on Hydraulic from 10th to 11th, Phase II. (618447/815044) Traffic to be maintained through construction. (Councilapproval date 10-01-96) (District I) c. Water Distribution System to serve Rio Vista Estates, Rio Vista Estates Second & Third Additions (east of Meridian, north of 50th St. N). (448-89062/733378/470415) Traffic to be maintained during construction using flagpersons and barricades. (Council approval date 07-16-96) (District VI) d. Water Main Replacement, Faulkner, Murdock Ave to Sim Park Drive and Murdock, Faulkner Ave to Buffum Ave (88988); Buffum, Murdock to Harrison (88807). (448- 88988/88807/634238/544423) Traffic to be maintained during construction using flagpersons and barricades. (Council approval date 07-18-95) (District VI) 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., December 13, 1996. Motion carried 6 to 0. (Kamen absent) Subdivision Plans and Specifications. a. Water Distribution System to serve Smithmoor Fifth Addition (south of Harry, east of Webb). (448- 89070/733485/470426) Does not affect existing traffic barricades. (Council approval date 08-13-96) (District II) b. Lift Station & Force Main for Lateral 133, WIS to serve Fountains Second Addition (south of Central, east of Greenwich). (468-82598/742841/480376) Does not affect existing traffic. (Council approval date 06-11-96) (District II) c. Storm Water #375 to serve Fox Pointe Addition (south of 29th, west of Webb Road). (468- 81893/750836/485119) Does not affect existing traffic. (Council approval date 09-27-88) (District II) 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., December 6, 1996. Motion carried 6 to 0. (Kamen absent) PRELIMINARY ESTIMATES PRELIMINARY ESTIMATES. a. Storm Water Sewer No. 455 to serve I-235 Power Center Addition (east of Hydraulic, south of 31st Street South) - $296,400.00. Does not affect existing traffic. (Council approval date 9-20-94) (District III) (468-82419/750893/485-125) b. 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 paving Stonebriar Addition (west of Meridian, south of 47th Street South) - $232,560.00. Does not affect existing traffic. (Council approval date 9-17-96) (District IV) (472-82765/763953/490-498) Motion -- Knight moved that the preliminary estimates be approved and filed. Motion -- carried carried 6 to 0. (Kamen absent) ADVISORY BOARDS MINUTES OF ADVISORY BOARDS. Board of Appeals of Plumbers and Gas Fitters, 11/5/96 Board of Park Commissioners, 11/12/96 Commission on the Status of Women, 11/6/96 CPO Northwest Council 5, 11/13/96 CPO North Central Council 6, 11/13/96 Historic Preservation Board, 10/24/96 Motion -- carried Knight moved that the Minutes be received and filed. Motion carried 6 to 0. (Kamen absent). STREET CLOSURES CONSIDERATION OF STREET CLOSURES/USES. There were no street closures considered. MONTHLY FINANCIAL RPT. MONTHLY FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 30, 196. Motion -- carried Knight moved that the Report be received and filed. Motion carried 6 to 0. (Kamen absent) WEAPONS DESTRUCTION WEAPONS DESTRUCTION. Agenda Report No. 96-975. A list of weapons being destroyed was provided by the Police Department, and includes a total of 148 handguns and 62 long guns. Motion -- Knight moved that the list of weapons be received and filed. Motion carried -- Carried 6 to 0. (Kamen absent) HEATING AND AIR SYSTEM PROPOSAL FOR DESIGN/BUILD HEATING AND AIR- CONDITIONING SYSTEM. Agenda Report No. 96-976. The City of Wichita Human Services Department through the Public Housing Comprehensive Grant Program 5-year Action Plan included the removal and replacement of the existing HVAC system at its Property Management Office, 332 Riverview. The existing system, that was installed when the building was constructed, is insufficient to supply the needs of the office. The air distribution is inadequate and the equipment does not have the capacity needed for the building as presently configured. To insure the present needs of the Heating, Ventilating and Air Conditioning, staff solicited bids. A request for Proposal for Design/Build was sent to forty-three (43) Heating and Air Conditioning contractors and five (5) contractors responded. Two (2) no-bids and three (3) positive bids. A committee of the Modernization Coordinator, Maintenance HVAC Mechanic, and Housing Inspector reviewed the proposals. Professional Air Conditioning Services, Inc., provided the best proposal, meeting or exceeding specifications that were drafted. At a cost of $29,500.00, their proposal included an extended two (2) year warranty on both the heating and cooling units in addition to providing a 12.5 ton unit that will meet any future building needs. Professional Air Conditioning Services will design, remove the existing, install the new system and do all work either after hours or on the weekend so as not to interfere with normal working hours within the price quoted. The proposal is well within the budgeted amount of the Comp Grant Budget line item. Motion -- Knight moved that the selection of Professional Air Conditioning Services Inc. be approved and the Housing Division be authorized to enter the contract. Motion -- carried carried 6 to 0. (Kamen absent) BOB BROWN EXPO HALL CONSULTANT ASSISTANCE CONTRACT AND EQUIPMENT REPLACEMENT (CIP PROJECT #PB-9505). Agenda Report No. 96-976 The equipment in the Bob Brown Expo Hall Kitchen was purchased and installed by Volume Services, Inc., in 1985. This equipment is now the property of the City. After 11 years of use, some of this equipment is in need of repair and/or replacement. Under the contract negotiated with Stormont- Trice, the catering operations will be handled by the Hyatt Hotel management. As part of this agreement, the City must deliver the existing kitchen equipment and serving supplies in operational condition. To make the determination as to "operational condition," the agreement requires a pre-opening survey and evaluation as to the operational life of the equipment and repairs and replacement of serving supplies. The proposed project involves retaining expertise in kitchen equipment/supplies to conduct a survey of existing facilities, together with an evaluation of the condition and any required repairs and/or replacements. The survey and evaluation work must be completed in accordance with certain time frames to ensure contractual dates for hotel opening and catering operations are met. The proposed budget for this work is contained in the Capital Improvement Program (Project #95-5, page 175) and includes funding for anticipated replacements and repairs. A Resolution is required to allocate these funds for expert assistance and equipment repair/replacement. This Resolution has been approved as to form by the Law Department. Motion -- Knight moved that the project be approved and the Resolution be adopted. -- carried Motion carried 6 to 0. (Kamen absent) RESOLUTION NO. R-96-413 A Resolution declaring it necessary to perform interior renovation and replacement of kitchen equipment, that a preliminary estimate of the cost thereof be prepared; and declaring it to be the intention of the Governing Body to issue City of Wichita General Obligation Bonds in an amount not to exceed $120,000 to pay all or a portion of the cost thereof, presented. Knight moved that the Resolution be adopted. Motion carried 6 to 0. (Kamen absent) Yeas: Cather, Cole, Ferris, Gale, Rogers, Knight. PARK MASTER PLAN PARK MASTER PLAN. (District All) Agenda Report No. 96-977. The 1996 Capital Improvement Program for the City of Wichita provides $87,000 for the development of a Park Department Facilities Master Plan, identified on page 223 of the adopted CIP as project P-9602. The funds will enable the Park Department to retain the services of a professional consultant to examine existing and planned park facilities in depth and develop the plan. City Council adopted a new Park & Open Space Plan in 1996 that largely addresses the need for acquiring additional park land and its development to meet growth demands in the community. To complement this "growth" plan, a plan must be developed, utilizing the services of a competent and experienced professional consultant to conduct a comprehensive evaluation of park facilities in Wichita. The consultant report will provide recommendations for the most economic, productive and efficient approach to the utilization and rehabilitation of existing park facilities, and will also provide recommendations for the development of new park facilities. Facilities examined will include Recreation Centers, swimming pools, athletic fields, outdoor restrooms, tennis courts, Watson Park, and various other facilities. The estimated cost for consultant services and development of a Facilities Master Plan is $87,000, and will be funded by general obligation bonds. Motion -- Knight moved that the project be approved and the Resolution be adopted. Motion -- carried carried 6 to 0. (Kamen absent) RESOLUTION NO. R-96-414 A Resolution finding it necessary to develop a master plan for parks and recreation programs and authorizing the issuance of bonds by the City of Wichita at large to finance such Master Plan, presented. Knight moved that the Resolution be adopted. Motion carried 6 to 0. (Kamen absent) Yeas: Cather, Cole, Ferris, Gale, Rogers, Knight. DRUG COURT GRANT APPLICATION - DRUG COURT ENHANCEMENT. Agenda Report No. 96-978. In July of 1995, the City Implemented a Neighborhood Municipal Drug Court funded through the U.S. Department of Justice, Comprehensive Communities (CCP) Program. This court was established to assist in breaking the cycle of repeat offenders. A Judge and staff provide intensive, interactive treatment and corrections tailored to the individual offender. The program is targeted at repeat drug/alcohol offenders who have failed traditional adjudication and treatment. The Drug Court program currently has 299 participants and recently successfully graduated its first 10 participants. The U. S. Department of Justice, Office of Justice Programs is accepting grant proposals for improvement and enhancement of Drug Courts. The proposed grant application requests funds to improve and enhance the Drug Court generally through feedback and recommendations from a proposed independent Program Study and Evaluation and through the implementation of improved data management software and tools, case law software and improved access to that data for the probation officer and treatment provider. The proposed grant applications totals $180,174 ($135,000 federal) for Public Safety System database and program modifications, PC data management Software, Computer hardware for probation and the treatment provider, a CD-ROM case law library, and a Program Study and Evaluation. The grant requires 25% matching funds. The City's match is $45,174 and will be provided in-kind through local funds already budgeted in the 1997 budget for the Drug Court. Motion -- Knight moved that the grant application be approved and the Mayor be authorized -- carried to sign the application and assurances. Motion carried 6 to 0. (Kamen absent) (Item No. 23) DEFERRAL REQUEST CORE AREA SPECIAL ASSESSMENT DEFERRAL REQUEST-MASSCO BUILDING ASSOCIATES. Agenda Report No. 96-979 A program was initiated to provide for deferral of special assessments for a limited time (up to five years) for the payment of all or a portion of the costs associated with the construction of any public improvement within the Core Area. Eligible properties, may receive a hardship deferral of the payment of special assessments for up to five (5) years from the date of the application. The deferral can only be granted for special assessments which are currently due or which are to become due in the future. Guidelines for the Core Area economic hardship deferral are as follows: 1. The applicant for deferral must own the property or be purchasing the same under a contract for purchase. 2. The property must be located within the defined Core Area. 3. The use of the property must not have changed between the date of the governing body's declaration of its intent to construct the public improvement for which special assessments are sought to be deferred and the date of application for deferral. 4. The applicant must provide evidence that the property, as used at the time of the application, does not benefit from the public improvements for which the assessments are levied. 5. Any such grant of a deferral shall be subject to annual renewal and the applicant shall be required to submit documentation satisfactory verifying that the information which establishes the property's eligibility for deferral has not changed in a way which would cause the property to be ineligible. Massco Building Associates has applied for a five (5) year deferral on the following projects and has met the eligibility criteria: (1) Project #472-82485 Mead Avenue improvements and (2) Project #472-82373 Rock Island improvements. The assessments (principal amount) to MASSCO requested for deferral are: Mead improvements $34,452.70 Rock Island improvement $27,946.59 Annual principal and interest payments for the full fifteen years of the special assessments will commence at the end of the deferral period. Council Member Cole Council Member Cole asked to be informed of whether Jim Ross and the Vanderhalen Gallery had been provided information regarding the deferral program. Motion -- Knight moved that the deferral of special assessments for MASSCO be approved. -- carried Motion carried 6 to 0. (Kamen absent) FUNDING INCREMENT FUNDING INCREMENT KS004CE0015 TO THE ANNUAL CONTRIBUTIONS CONTRACT (ACC) Agenda Report No. 96-980 The HUD Section 8 Certificate (CE) Program is Funded in Increments. In past years, each funding Increment was for five (5) years, however, due to reduction in the 1997 Appropriations Act, funds were severely cut. Therefore, HUD is replacing expiring increments or extending increments for only one (1) year. New Funding increment number KS004CE0015 replaces expiring funding increment number KS004CE0010 to the Annual Contributions Contract (ACC). This continued funding is for 307 Existing Certificates and extends the expiration date to March 31, 1998. Several additional increments that will be expiring during 1997 and 1998 have been extended for one (1) additional year from funds in our Project Reserve Account. HUD Financial Analyst Ms. Mary Kuhn, there will be no change in the Financial support for the Wichita Housing Authority, Section 8 Programs. HUD will co-mingle new and reserve funds to provide continued funding. The 1997 Appropriations Act reduce the Administrative Fee percentage that a Housing Agency could earn from 8.2% (of the published Fair Market Rent (FMR) for a 2 bedroom unit) to 7.5% for the first 600 units and 7% for all others. This congressional change will reduce our Annual Administrative Fee by approximately 35,000. However, we anticipate that the reduction can be replaced by Administrative funds from the State's Tenant Base Rental Assistance (TBRA) Program. Motion -- Knight moved that the funding increment KS004CE0015 be approved and the Mayor be -- carried authorized to sign. Motion carried 6 to 0. (Kamen absent) CONTRACT CHANGE ORDER CONTRACT CHANGE ORDER - CAMP, DRESSER, MCKEE (GILBERT-MOSLEY SITE). Agenda Report No. 96-981. Camp Dresser and McKee (CDM) is currently under contract with the City of Wichita for providing professional environmental engineering services for the design of the Gilbert and Mosley ground water contamination clean-up (Seventh Contract Amendment to Agreement Between the City of Wichita and CDM, Gilbert and Mosley Site Project, June 18, 1996). A preliminary design report for clean-up of a portion of the site was submitted to KDHE that indicates 6 distinct plumes (A-F) and recommended several technologies including bioremediation and a in-situ reactive iron wall to address plumes C and D. These recommendations were presented to the Council at a workshop session and as part of the City/CDM Seventh Contract Amendment. The two technologies recommended were for containment and clean- up of ground water contamination in Plumes C and D located between Pattie Street and I-135 from Zimmerly to Skinner. Both systems were to be installed at the leading (downgradient) edge of the plumes to address area-wide contamination that has migrated off site of contamination sources. Based on discussions and negotiations with KDHE the remediation approach to these contamination plumes have changed. KDHE has determined that the contamination is hydraulically contained by Chisholm Creek (I-135 canal). As a result of this determination compliance monitoring in lieu of the installation of the iron and bio walls is now the KDHE requirement for the site. KDHE is focusing on "source control" and the future use of these innovative technologies will be scaled down and coupled with site specific remediation efforts. As a result of these negotiations there is the potential for cost savings for remediation at the site and a need to change CDM current Scope of Work. Services proposed for the next several months include installation of compliance monitoring wells, investigation for design of remediation systems for plumes A,B,E and F and site specific investigations for source controls. The following revised scope of work includes: *Installation of compliance monitoring wells (required by KDHE). *Source area investigations at Plume D sources to obtain design data. *Investigations at Plume C to locate sources. *Investigations downgradient of sources in Plume E for intermediate design data. *Source investigations in Plume B at the Bus Barn site and other sources *Downgradient edge investigations at Plumes A and B for intermediate design data. *Source area and downgradient edge investigations at Plume F for design data. Completion of these tasks will allow site remediation design activity to continue. These services will provide data to determine final remediation systems and locations. The funding of the above activities will be performed using currently allocated funds in CDM's Seventh Contract Amendment. No additional funds are requested. Motion -- Knight moved that the Change Order be approved and the Mayor be authorized to -- carried sign. Motion carried 6 to 0. (Kamen absent) CENTURY II COMPUTERIZED BOOKING AND SCHEDULING SYSTEM FOR CENTURY II. Agenda Report No. 96-982. As part of the hotel development agreement with Stormont Trice, it was agreed that Century II would use a computerized booking and scheduling software system and allow the Hyatt, along with other hotels, to have access to this system to determine availability of the Bob Brown Expo Hall Promenade Meeting Rooms. It is proposed that Century II acquire the SABRE Decision Technologies System. After extensive review, it has been determined that SABRE Decision Technologies is the best system for Century II, based on the following advantages: SABRE is the same system that will be used by the Hyatt Regency Wichita Century II will not have to pay the cost of linking up to the national Hyatt system; the Hyatt will assume this cost. The Wichita Convention and Visitor's Bureau is also considering using the SABRE system to assist with its selling efforts. The SABRE system will not only allow outside agencies to view the availability of Century II, but will also allow making booking requests. Century II will maintain the final booking authority. The SABRE system is considerably less expensive than any of the other systems. The proposal from SABRE is to provide the software at no cost. The purchase, installation, training and maintenance costs are budgeted in the 1996 and 1997 Operating Budgets for Expo Hall: $21,300 in 1996 to purchase the hardware and $30,000 in 1997 to purchase the scheduling software. Motion -- Knight moved that the Agreement be approved and the Mayor be authorized to -- carried execute. Motion carried 6 to 0. (Kamen absent) CLAIMS ALLOWED REPORT REPORT ON CLAIMS ALLOWED - OCTOBER, 1996. The following claims were approved for payment by the Law Department during the month of October, 1996. Name of Claimant Amount Southwestern Bell $276.08 Greg Schmitz $400.00* Southwestern Bell $181.08 Shelly Maugans $59.95* *These claims were settled for lesser amounts than originally claimed. Motion -- carried Knight moved that the Report be received and filed. Motion carried 6 to 0. (Kamen absent) ORDINANCES SECOND READING ORDINANCES. (First reading 11/19/96) ORDINANCE NO. 43-325 IRB - Boeing An Ordinance approving and authorizing the execution of a lease agreement between the Boeing company and the City of Wichita, Kansas; approving and authorizing the execution of an indenture of trust between said City and Bank IV Kansas, National Association; pledging certain payments under said lease agreement and moneys and securities held by the trustee under the terms of said indenture of trust; authorizing and directing the issuance of Industrial Revenue Bonds (The Boeing Company Project) Series VII, 1996, of said City in the principal amount of $194,000,000 for the purpose of providing funds for the acquisition, construction, reconstruction, and improvement of certain industrial and manufacturing facilities at the Boeing Commercial Airplane Group, Wichita Division, a Division of the Boeing Company, a Delaware Corporation, in Sedgwick County, Kansas; designating the trustee and the paying agent for said bonds; authorizing the sale of said bonds and the execution of a bond purchase agreement therefor; approving and authorizing the execution of an administrative service fee agreement; and authorizing the execution and delivery of certain related instruments, read for the second time. Knight moved that the Ordinance be placed upon its passage and adopted. Motion carried 6 to 0. (Kamen absent) Yeas: Cather, Cole, Ferris, Gale, Rogers, Knight. ORDINANCE NO. 43-326 Group Life Insurance An Ordinance amending Sections 2.52.010, 2.52.020, and 2.52.030 of the Code of the City of Wichita, Kansas, and repealing the originals thereof and repealing Sections 2.52.040, 2.52.050, 2.52.060, 2.52.070, 2.52.080, and 2.52.090 of the Code of the City of Wichita, Kansas, pertaining to group life insurance, accidental death and dismemberment insurance, and dependent life insurance for city employees, read for the second time. Knight moved that the Ordinance be placed upon its passage and adopted. Motion carried 6 to 0. (Kamen absent) Yeas: Cather, Cole, Ferris, Gale, Rogers, Knight. ORDINANCE NO. 43-327 (468-82520) An Ordinance declaring it necessary to authorize drainage improvements at Third Street, from the Wichita Drainage Canal to Hillside (468-82520) in the City of Wichita, Kansas; ordering and providing for the improvements thereof and providing for payment of the cost thereof, read for the second time. Knight moved that the Ordinance be placed upon its passage and adopted. Motion carried 6 to 0. (Kamen absent) Yeas: Cather, Cole, Ferris, Gale, Rogers, Knight. ORDINANCE NO. 43-328 Comprehensive Plan An Ordinance approving the 1994-96 Comprehensive Plan recommended amendments to the 1993 Wichita-Sedgwick County Comprehensive Plan as adopted by the Wichita-Sedgwick County Metropolitan Area Planning Commission, read for the second time. Knight moved that the Ordinance be placed upon its passage and adopted. Motion carried 6 to 0. (Kamen absent) Yeas: Cather, Cole, Ferris, Gale, Rogers, Knight. (Item No. 29) 1997 SALARY ORDINANCE. Motion -- carried Ferris moved that this Item be deferred one week. Motion carried 6 to 0. ADDENDUM ITEM 30 IRB - TURNPIKE DRIVE DEED-BACK OF IRB-FINANCED PROPERTY TO TURNPIKE DRIVE, INC. Agenda Report No. 96-984. In February, 1992, the City issued approximately $9.8 million in IRBs to finance the construction and equipping of an industrial building located near Boeing on Turnpike Drive, between Oliver and K-15 highway. The bonds were issued on behalf of Turnpike Drive, Inc., as tenant, who subleased the facility to Boeing for use as a production plant. The bonds were issued with a term maturity of November 1, 1996, at which time a major portion of the bond principal was due and payable. It was intended that the IRBs would be refinanced with conventional financing at that time. Turnpike Drive, Inc., has requested the City deed the property back to them as part of the refinancing. The conveyance of the deed and termination of the lease will have to coincide with the refinancing of the IRBs, since the refinancing loan cannot close without the property being deeded back and the property cannot be deeded back without the bonds being repaid. Security Abstract and Title Co. will serve as the escrow agent for the refinancing loan and will ensure that the retirement of the bonds with the proceeds of the refinancing loan precedes the conveyance of title and termination of lease, as a matter of record. Motion -- Knight moved that the notice requirement be waived and the conveyance of deed and termination of lease of property financed by Series II, 1992, Industrial Revenue Bonds, be approved subject to the conditions set forth in the Series II, 1992, bond documents for the exercise of the purchase option, and the Mayor be -- carried authorized to sign the deed and termination of lease. Motion carried 6 to 0. (Kamen absent) 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 legal advice; preliminary discussions relating to the acquisition of real property for public purposes; and the regular meeting be resumed no later than 1:30 p.m. in the City Council Chambers. Motion carried -- carried 7 to 0. RECESS Council recessed at 12:43 p.m. and reconvened in regular session at 1:34 p.m. Mayor Knight Mayor Knight announced that no action was necessary as a result of the executive session. ADJOURNMENT The City Council adjourned at 1:34 p.m. Pat Burnett City Clerk COUNCIL PROCEEDINGS JOURNAL 162 NOVEMBER 26 , 1996 Page