MINUTES OF THE MEETING OF THE CITY COUNCIL Wichita, Kansas, June 3, 1997 Tuesday, 9:05 A.M. The City Council met in regular session with Mayor Knight in the Chair. Council Members Cole, Gale, Kamen, Lambke, 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 Davidson Pham, Vietnamese Buddhist The pledge of allegiance to the flag was participated in by the Council Members, staff, and guests. Minutes -- The minutes of the En Banc Meeting of May 27, 1997, were -- approved approved 6 to 0. (Ferris absent) AWARDS AND PRESENTATIONS *Council Member Ferris present. PROCLAMATIONS Mayor Knight presented the Proclamations previously approved. SERVICE CITATIONS Mayor Knight presented Distinguished Service Citations to those present. PUBLIC AGENDA PUBLIC AGENDA Motion -- Knight moved that the rules be set aside and Jim Oliver, Wichita Bar Association, -- carried be allowed to speak on the Public Agenda. Motion carried 7 to 0. COMMENTS BY JIM OLIVER. Jim Oliver Jim Oliver, Wichita Bar Association, expressed concern regarding the draft contract for Municipal Court judges. Mr. Oliver said the ordinances contain no provision for removing a judge during the judicial term; however, the draft contract does contain this provision. The judges should not be subject to influence and the court integrity should not be at question just because a review is coming up for a judge. Paragraphs four and five both contain provisions of concern. It would be preferred that there be a specific term and that the judge would not be subject to review during the term. Mr. Oliver asked that the contract provisions be carefully considered. Council Member Ferris Council Member Ferris said the Charter Ordinance governs the term which is four years with the exception of something unlawful. Council Member Ferris said it was his understanding that the performance was not related to judicial decisions but the performance was connected to interaction with the administrative judge. Gary Rebenstorf Director of Law said the intent is that the performance evaluation is directed toward the judge being accountable for their actions but not with the judges decisions or decision making. Performance evaluation would be only with regard to policies of the Municipal Court and the administrative judge. Jim Oliver Jim Oliver said it would help if the contract made the intent clearer. COMMENTS BY TROY B. DEAN. Mr. Dean was not present. UNFINISHED BUSINESS CESSNA AIRCRAFT ISSUANCE OF AIRPORT FACILITIES REFUNDING REVENUE BONDS - CESSNA AIRCRAFT COMPANY. Council Member Cole declared a conflict of interest and abstained from participation. Allen Bell Financial Projects Director reviewed the Item. On March 27, 1990, the Council approved a Letter of Intent to issue Industrial Revenue Bonds in an amount not to exceed $12.1 million to Cessna Aircraft Company. The Council also granted Cessna a 100% tax abatement for a ten year term. Proceeds from the Bond sale were used to construct and equip the Cessna Citation Service Center located at One Cessna Boulevard, on land leased from the Wichita Airport Authority. On April 24, 1990, the Council approved the issuance of Industrial Revenue Bonds, Series II, 1990, in the amount of $12.1 million. The proceeds from the sale of the 1990 bonds were used to construct and equip the Citation Service Center containing 181,800 s.f. and located at One Cessna Boulevard on Mid-Continent Airport. The proceeds from the sale of the 1997 bonds will be used to only refund the Series II, 1990 bonds. Bond fees and closing costs will be paid by Cessna's own funds. Cessna aircraft Company, has an approved EEO/AA plan on file with the City. The Series II 1990 Bonds were issued by the City instead of the Airport Authority in order to insure the possibility of property tax exemption. At the time, pending legislation called into question whether airport property leased to private concerns would continue to be exempted from ad valorem taxation. While that contingency is no longer a consideration, the proposed refunding will follow the same structure as the 1990 bonds. The Airport Authority will consider the approval of their part in the transaction on May 19, 1997. Cessna agrees to pay all costs of issuing the bonds and agrees to the City's annual $2,500 administrative fee for the term of the bonds. The bonds will be underwritten by Piper Jaffray, Inc. and reoffered for public sale. This Item was continued from the May 20, 1997, City Council meeting because, at the time, there was a pending legal issue that needed to be resolved before the Council took action. It is understood that the issue, which was related to property tax issues, has been resolved. A new legal issue has arisen which will be explained by the City Attorney. Discussion was had regarding the issue of bringing complicated legal decisions before the City Council on the day of the meeting. Gary Rebenstorf Director of Law explained that Staff was advised on June 2nd, while documents were being finalized, that the applicant company was not willing to abide by provisions the City has used in other bond issues that have to do with indemnification of the City, by the applicant company, from the securities law liability and any lawsuits that might be filed. Staff felt the decision of whether or not to issue the bonds without this provision in the bond documents was a policy decision to be made by the City Council. Tom Wakefield Tom Wakefield, Vice President General Counsel of Cessna Aircraft Company, stated that the City, in the 1990 issue, agreed to cooperate with the purchaser and its counsel in offering for the sale of the bonds. The original commitment by the City was that the City would indemnify others for the statements for the Offering Statement. The Offering Statement simply talks about what the City, Airport, City Council, and the Airport Authority are. What is being indemnified is the accuracy of these statements in the Offering Statement. Cessna Counsel believed that this is quite a departure because Cessna had not previously had a bond issue with the City of Wichita where the City wanted Cessna to indemnify the City for statements in the Offering Statement regarding City definitions. The City has its own legal counsel and hires bond counsel. Bond Counsel gives the City an opinion that the bonds are properly issued and that everything in the official statement is correct and accurate. It is normal for Cessna to indemnify the City for Cessna's statements but unnecessary to indemnify the City for the City's statements. Discussion was had regarding City policies in this regard. Motion -- carried Ferris moved that this item be deferred one week. Motion carried 6 to 0. (Cole abstained) NEW BUSINESS IRB - BROADMOOR PUBLIC HEARING: LETTER OF INTENT FOR MULTI-FAMILY HOUSING REVENUE BONDS - BROADMOOR AT CHELSEA ACQUISITION, L.P. (District II) Allen Bell Financial Projects Director reviewed the Item. Agenda Report No. 97-446. On December 3, 1996, the City Council approved a Letter of Intent to issue not more than $6.0 million multi-family revenue bonds for Broadmoor at Chelsea Acquisition, L.P., a Missouri Limited Partnership. The bonds were to finance the acquisition and rehabilitation of the Broadmoor at Chelsea Apartments, an existing multi- family housing project, located at 7677 East 21st Street in northeast Wichita. The tenant did not request an ad valorem tax abatement on the property. Broadmoor at Chelsea Acquisition, L.P. is now ready to proceed with the issuance of the bonds. However, certain material changes to the financing transaction have been made by the tenant which necessitates reconsideration of the Letter of Intent by the City Council. The Broadmoor at Chelsea Apartments is a 240-unit apartment complex near 21st Street and Rock Road in northeast Wichita. The property consists of 23 apartment buildings with a total of 193,760 s.f. of leasable space. The project is in need of exterior improvements, including parking lot repairs, painting, roofs, and concrete work. The interiors need new appliances and carpeting. Broadmoor at Chelsea Acquisition, L.P. is an affiliate of KelCor, Inc. which has developed similar projects including the 170-unit Oakbrook Apartments in Topeka, Kansas and the 132-unit Cimarron Apartments in west Wichita. The City Council approved a Letter of Intent for the Cimarron Apartments in November of 1995. The project is designed and intended to meet the federal tax code requirements for tax- exempt bonds issued for a "qualified residential rental project." At least 40% of the units (96 units) will be reserved for families and individuals with income not greater than 60% of the area's median income. In Wichita, that generally means a family with a combined gross income of less than $35,000 per year. While low income tenants will receive preference in the rental of the qualified units, there will be no rent subsidy resulting from the bonds and all tenants will be subject to the same criteria for acceptance as tenants. The total estimated costs of the project, and the sources of funding are as follows: Sources of Funds Bond Proceeds $ 6,000,000 Borrower's Equity 1,759,893 Total Sources of Funds: $ 7,759,893 Uses of Funds Acquisition of Broadmoor at Chelsea $ 5,950,000 Rehabilitation Costs 1,289,893 Bond Reserve 200,000 Credit Enhancement 120,000 Cost of Issuance 100,000 Miscellaneous 100,000 Total Uses of Funds: $ 7,759,893 Since the original Letter of Intent was approved last year, certain changes to the structure of the transaction have occurred, or previously unknown information has been provided to the City. The structuring of the bond issue is materially different from the standard structure of bonds issued under the State's industrial revenue bond statutes. The City would lease the property from Broadmoor at Chelsea Acquisition, L.P. and sublease it back. The bonds would be paid by mortgage payments as opposed to sublease payments, which mortgage payments would pass through the federally-backed Fannie Mae program in order to provide AAA-rated credit enhancement to the bonds. The bond proceeds would be used to fund the mortgage loan from a participating lender. Due to the complexity of the proposed bond structuring, Broadmoor at Chelsea Acquisition, L.P. has elected to change bond counsel for the transaction. The firm of Hinkle, Eberhart & Elkouri, LLC, who had originally been designated as bond counsel, has been replaced by the Kansas City office of the firm of Gilmore & Bell, P.C. It has long been the practice of the City to allow the companies utilizing IRBs to designated which bond counsel firm the City should use in the transaction. Subsequent to issuing the original Letter of Intent, the City was informed by the Kansas Department of Commerce and Housing that Broadmoor at Chelsea Acquisition, L.P. had applied for Low Income Housing Tax Credits to be used in conjunction with the acquisition and rehabilitation of the project. The City's policy relating to support for Low Income Housing Tax Credits requires the applicant to mail notices to owners of surrounding property, informing them that the City Council will hold a hearing to consider its support for this project. Broadmoor at Chelsea Acquisition, L.P. was to have sent such notices in conjunction with the City Council's reconsideration of the Letter of Intent. Broadmoor at Chelsea Acquisition, agrees to pay all costs of issuing the bonds and to pay the City's $2,500 annual administrative service fee for the term of the bonds. Broadmoor at Chelsea Acquisition does not request an abatement of ad valorem property taxes in conjunction with the issuance of the bonds. Because of the City's notice and hearing policy regarding support for projects involving Low Income Housing Tax Credits, and because Broadmoor at Chelsea Acquisition, L.P. has previously published a notice of hearing as required for the issuance of tax- exempt bonds (the "TEFRA Hearing"), the City Council's consideration of this agenda item should be conducted as a public hearing. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. J.T. Klaus J.T. Klaus, Bond Counsel, explained that the tax credit hearing and the TEFRA hearing were two separate issues and that there was no reason the TEFRA Hearing should not be held at this meeting. Gary Rebenstorf Director of Law concurred that the two hearings could be held separately. Allen Bell Financial Projects Director said the approval of the Letter of Intent carries with it a list of conditions and suggested a fifteenth condition, the holding of a public hearing pursuant to the City's Policy relating to the support of low income housing tax credits. Motion -- Kamen moved that the public hearing be closed; the issuance and Letter of Intent to Broadmoor at Chelsea Acquisition, L.P., for Multi-Family Housing Revenue bonds in an amount not to exceed $5.0 million, be approved subject to the following conditions: 1. Negotiation of a Lease Agreement, Trust Indenture, and Bond Ordinance. 2. Arrangement 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 for as long as the bonds are outstanding. 5. Agreement to pay all costs incurred by the City for processing the bonds/application. 6. Approved Equal Employment Opportunity/Affirmative Action Plan is on file with the city prior to issuance of the bonds. 7. Approved Water Conservation Plan is on file with the City prior to issuance of the bonds. 8. Agree to submit building and site plans to the City Manager's Aesthetic Review Team (CART) for their review and to modify the proposed design to comply with any reasonable conditions or recommendations. 9. An 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. Multi-Family Housing revenue bonds will not be issued of the ESA discloses environmental conditions that might have implications for buyers under the liability provisions of the Superfund Amendments and Reauthorization Act (SARA). 10. An agreement that if the bonds are to be offered for sale to the public, the applicant will not, during the period of time any industrial revenue 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 their annual financial statements 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 bond issue. 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. 15. If low income housing tax credits are to be sought, a public hearing will be held pursuant to the City's Policy relating to the support of low income housing tax credits. -- carried Motion carried 7 to 0. CASE SWAYNE CO. REQUEST FOR APPROVAL OF AN ASSIGNMENT OF LEASE AND FOR A LETTER OF INTENT FOR TAXABLE INDUSTRIAL REVENUE BONDS - CASE SWAYNE CO., INC. (District IV) Allen Bell Financial Projects Director reviewed the Item. Agenda Report No. 97-447 Case Swayne Co., Inc. (Case Swayne) is requesting the approval of an assignment of Lease and the issuance of a Letter of Intent for Taxable Industrial Revenue Bonds in an amount not to exceed $700,000. The bond proceeds will be used to purchase all the machinery and equipment of PFS, a Division of PepsiCo, Inc. Case Swayne is also requesting that the City approve and consent to an assignment or sublease of the real property financed with IRBs, Series II-95, issued to PepsiCo in May of 1995 and subleased to PFS. Case Swayne requests that the tax abatement granted to PFS be continued for the remaining 8 years of the tax abatement period and that a tax abatement be granted on the equipment to be purchased with bond proceeds for an eight year period. PepsiCo, Inc. is in the process of separating its food service and restaurant division from the corporation, by spinning off the restaurants into a separate publicly- held company, and selling PFS, the division that provided centralized support services to the chains. As part of this overall objective, PepsiCo is selling its Wichita spice blending plant, the former J&G Products operation, to Case Swayne Co. The transaction will include the assignment of the IRB lease under the Series II-95 IRBs, for the real property, and the issuance of new IRBs to finance the purchase of equipment and machinery which was not financed by the earlier IRB issue. Case Swayne supplies produces custom-developed specialty foods for the food service, retail, industrial and health and diet markets. Case Swayne is a major national spice blending firm, engaged in the manufacture of specialty pre-mixed dry and wet spices, as well as specialized packaging, partnering with nationally branded retail and food service marketers to serve their needs throughout the United States. Case Swayne is headquartered in Corona, California with facilities in Santa Ana, California and Bryan, Ohio. Proceeds from the bonds will be used to purchase certain machinery and equipment currently utilized in the current PFS spice blending processes facility located at 5015 South Water Circle in south Wichita, as follows: USES OF FUNDS * Purchase Machinery and Equipment $ 700,000 Total Cost of Project: $ 700,000 Case Swayne currently employs 400 people at its current locations. Case Swayne, in addition to retaining the current 80 employees of PFS, anticipates increasing employment by an estimated 100 additional employees over the next ten (10) years. The bonds will be privately placed with Case Swayne or a commercial lending institution and will not be publicly offered. The firm of Hinkle, Eberhart and Elkouri, L.L.C. will serve as bond counsel in the transaction. Case Swayne has a current approved EEO/AA Plan on file with the City's Human Resources Department. The cost/benefit analysis based on the fiscal and economic impact model of the Wichita State University's Center for Economic Development and Business Research reflects cost/benefit ratios of 2.65 for the City; 2.15 for Sedgwick County; 1.2 for USD 259 and 15.4 for the State. Case Swayne is requesting that the current tax abatement granted to PFS be continued for the remaining eight (8) years of the exempt period. The amount of first year taxes estimated to be abated on the PFS project was $111,393 of which $30,733 was the City portion, $51,575 was USD 259's portion and $29,085 was the County/State's portion. Case Swayne is also requesting a 100% tax abatement for eight (8) years on the equipment to be purchased with the bond proceeds. The amount of first year taxes estimated to be abated on the equipment is $16,900 of which$4,686 is the City's portion, $7,780 is USD 259's portion and $4,434 the County/State's portion. Case Swayne 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. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Gale moved that the public hearing be closed and the Resolution authorizing the consent to assignment be adopted; the continuation of tax abatement granted to PFS be approved; that a 100 percent tax abatement for eight years on the equipment to be purchased be granted; and the Mayor be authorized to sign a Letter of Intent subject to the following conditions: 1. Negotiation of a Lease Agreement, Trust Indenture, and Bond Ordinance. 2. Arrangement 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 for as long as the bonds are outstanding. 5. Agreement to pay all costs incurred by the City for processing the bonds/application. 6. Approved Equal Employment Opportunity/Affirmative Action Plan is on file with the city prior to issuance of the bonds. 7. Approved Water Conservation Plan is on file with the City prior to issuance of the bonds. 8. Agree to submit building and site plans to the City Manager's Aesthetic Review Team (CART) for their review and to modify the proposed design to comply with any reasonable conditions or recommendations. 9. An 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. Multi-Family Housing revenue bonds will not be issued of the ESA discloses environmental conditions that might have implications for buyers under the liability provisions of the Superfund Amendments and Reauthorization Act (SARA). 10. An agreement that if the bonds are to be offered for sale to the public, the applicant will not, during the period of time any industrial revenue 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 financial 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 bond issue. 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. RESOLUTION NO. R-97-142 A Resolution authorizing the City of Wichita, Kansas, to convey title to the project acquired and installed pursuant to its taxable Industrial Revenue bonds, Series III, 1995 (Pepsico, Inc.) to PFS, a division of Pepsico, Inc.; authorizing the execution and termination and release of a certain Series III Lease; authorizing the execution and termination and release of a certain easement and agreement; authorizing the termination of the financing statements; authorizing the execution of all such other documents necessary to convey title in the project to PFS, a division of Pepsico, Inc.; and authorizing the early redemption of certain of the City's outstanding taxable industrial revenue bonds, presented. Gale moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cole, Ferris, Gale, Kamen, Lambke, Rogers, Knight. KIN NETWORK, INC. FIBER OPTIC RIGHT-OF-WAY AGREEMENT AND ORDINANCE - KIN NETWORK, INC. Chris Cherches City Manager reviewed the Item. Agenda Report No. 97-449. KIN Network, Inc., (KINNET) desires to run fiber optic cable through the City as part of its telecommunications network. Much of the route is in railroad right-of- way, but it also requires use of street right-of-way. Consent of the City is needed for use of public right-of-way. The ordinance is similar in content to franchise ordinances adopted for other fiber optic providers. The ordinance will be adopted under procedures that are used for franchises. KINNET is granted the right to use the public right-of-way for the purpose of constructing, maintaining, and operating a fiber optic telecommunications system. The grant specifically excludes the right to provide local telephone or cable television service; a separate franchise would be required for such service. The grant is for a specifically defined route and not for the entire City. The use of the right-of-way is subject to all rules and regulations now existing or hereafter adopted. It is subordinate to the current and future use by the City and its contractors. In the event of future public improvement projects, the cable must be located or relocated at no cost to the City. KINNET is encouraged to share its conduit with other providers who have approval by the City to be in the right- of-way. All facilities must be underground and according to as-built drawings of horizontal and vertical location. Cable is in steel conduit in the right-of-way and rigid conduit elsewhere. Other engineering requirements are consistent with those used in recent telecommunications agreements, to the extent appropriate. The term is for 5 years with two 5 year renewal options. The options are subject to renegotiation of compensation and engineering requirements. Compensation includes a one-time (administrative) fee of $3,000, plus an annual fee of $2.50 per linear foot for right-of-way. A 1½% per month late fee is imposed. Because of KINNET's desire to begin work immediately and due to legal considerations, there is a companion right-of-way agreement to allow KINNET to begin work at its own risk prior to the effective date of the ordinance. This agreement incorporates all of the provision of the ordinance and operates as an acceptance of the ordinance. The $3,000 fee is intended to help cover the administrative costs of processing the application. The annual fee, based on $2.50 per linear foot, is estimated to be $18,747.50. Staff recommends this fee as adequate and appropriate compensation for the use of the right-of-way. The fees will be subject to renegotiation in 5 years. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Knight moved that the Right-of-Way Agreement be approved, the Mayor be authorized -- carried to sign and the Ordinance be placed on first reading. Motion carried 7 to 0. ORDINANCE An Ordinance granting to KIN Network, Inc., the right and privilege to construct, operate, and maintain a fiber optic telecommunication system in the City of Wichita, Kansas, and prescribing the terms of said grant, introduced and under the rules laid over. FIRE INSURANCE PROCEEDS RECOVERY OF PROPERTY LIENS FROM FIRE INSURANCE PROCEEDS. Mayor Knight momentarily absent with Vice Mayor Cole in the chair. Gary Rebenstorf Director of Law reviewed the Item. Agenda Report No. 97-450. Since 1982 state law has permitted cities to adopt a procedure to recover outstanding liens on real property from fire insurance proceeds when the insured damage from fire or explosion to the structures thereon exceeds 75 percent of the value of the insurance. the City of Wichita implemented this procedure when it adopted chapter 18.17 of the City Code on October 3, 1989. Effective July 1, 1997, the Kansas Legislature has amended the statutes to include damage from windstorm, and to raise the amount which may be included from $5,000 or 10 percent of the covered insurance payment, whichever is less, to 15 percent of the covered insurance payment. The amendment to Chapter 18.17 made by this ordinance incorporate the changes made by the Legislature and will help the City of Wichita insure that the damage due to fire, explosion and windstorm is property cleaned up. The changes made by the ordinance will reduce the potential expense which may have to be born by the city to mitigate hazardous conditions created by fires, explosions and windstorms, where structures must be removed and the premises cleared to protect the public. Vice Mayor Cole Vice Mayor Cole inquired if anyone wished to be heard and no one appeared. Mayor Knight present and in the Chair. Motion -- Ferris moved that the Ordinance be placed on first reading; the Ordinance be taken to CPO 5 for comments; and the comments and second reading of the ordinance -- carried be returned to the Council by June 10, 1995. Motion carried 7 to 0. ORDINANCE An Ordinance amending sections 18.17.010, 18.17.020, 18.17.050, and 18.17.090, of the Code of the City of Wichita, Kansas, pertaining to scope, lien created, procedure, and disposition of funds all relating to the recovery of property liens from fire insurance proceeds, introduced and under the rules laid over. EATON BLOCK TIF DIST. RESOLUTION CONSIDERING THE ESTABLISHMENT OF A REDEVELOPMENT DISTRICT (TAX INCREMENT FINANCING) FOR THE EATON BLOCK. Chris Cherches City Manager reviewed the Item. Agenda Report No. 97-481. On April 22, 1997, the City Council approved the purchase of the land and improvements comprising all of the Eaton Block, between Douglas Avenue and William Street, St. Francis and Emporia, except for the property located at 509 E. Douglas. On April 23, 1997, the City purchased the above-described property at Sheriff's Sale. The City's purpose for purchasing the Eaton Block was to preserve single ownership of the property in order to secure private redevelopment of the entire property as a whole. In order to provide inducements which may be needed to attract the interest of private developers, it may be advantageous to offer the benefits of tax increment financing as a source of funding for public improvements associated with the redevelopment of the Eaton Block. The City Council therefore may wish to consider establishing a tax increment financing district which comprises the Eaton Block. The calculation of the tax increment will be based on the date of the establishment of the district. After the district is established, individual redevelopment projects may be undertaken in the district over time upon the completion of financial feasibility studies, so long as the projects are completed within 15 years of the date of establishment of the district. Once the tax increment financing district is established and a redevelopment plan has been adopted, the County Treasurer will set aside all ad valorem tax revenue collected within the district which exceeds the amount that would have been collected if the property still had the assessed value that was in effect during the year in which the district was established. In other words, any tax revenue that is attributable to growth in assessed value (assumed to be the result of redevelopment) is "captured" and transferred to the City to be used exclusively to pay for public improvements within the district. The first step in establishing the tax increment district is the adoption of a Resolution which states that the City Council is considering the establishment of the TIF district and sets June 17, 1997 as the date for a public hearing on the matter. The Resolution directs the City Clerk to publish the Resolution in the City's official newspaper and to mail copies to the owners and occupants of all property located within the district, by certified mail. The Resolution also includes a map of the proposed district and a proposed comprehensive plan identifying potential redevelopment project areas and a general description of buildings and facilities to be constructed or improved. Following the public hearing, the City Council may adopt an ordinance establishing the redevelopment district. The Board of County Commissioners and the Board of Education for USD 259 will have 30 days following the public hearing to determine whether the district will have an adverse impact on them, effectively precluding the use of tax increment financing. If the County and School District approve, the potential use of tax increment financing will be established. It will still be up to the City Council to approve the actual use of tax increment financing by adopting a redevelopment plan for the Eaton Block that includes tax increment financing. Once the redevelopment plan is adopted and sent to the County Clerk, the tax increment revenue generated by redevelopment will be segregated and deposited into a special fund for its prescribed use. The cost of mailing the Resolution to all owners and occupants of property located within the district will be charged to the Eaton Block redevelopment project and ultimately paid from TIF revenues. The actual establishment of the tax increment financing district will not be effective until the City Council adopts an ordinance for that purpose, following the aforementioned public hearing. Under recently enacted state law, if the proposed district is not established prior to July 1, 1997, the statewide public school levy (currently 35 mills) will be excluded from the calculation of tax increment revenues. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Cole moved that the Resolution giving notice of consideration of establishment of a redevelopment district for the Eaton Block and setting a public hearing for -- carried 10:30 a.m. on June 17, 1997, be adopted. Motion carried 7 to 0. RESOLUTION NO. R-97-143 A Resolution stating the City is considering the establishment of a redevelopment district for the Eaton Block Redevelopment district under authority of K.S.A. 12- 1770 et seq., presented. Cole moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cole, Ferris, Gale, Kamen, Lambke, Rogers, Knight. ADDENDUM ITEM 8C NE PROJECT TIF RESOLUTION CONSIDERING THE ESTABLISHMENT OF A REDEVELOPMENT DISTRICT (TAX INCREMENT FINANCING) FOR THE NORTHEAST PROJECT. Chris Cherches City Manager reviewed the Item. In order to provide inducements which may be needed to attract the interest of private developers, it may be advantageous to offer the benefits of tax increment financing as a source of funding for public improvements associated with the redevelopment of the the Northeast Project. The City Council therefore may wish to consider establishing a tax increment financing district which comprises the Northeast Project. A series of Council actions will be necessary to establish the tax increment district. The calculation of the tax increment will be based on the date of the establishment of the district. After the district is established, individual redevelopment projects may be undertaken in the district over time upon the completion of financial feasibility studies, so long as the projects are completed within 15 years of the date of establishment of the district. Once the tax increment financing district is established and a redevelopment plan has been adopted, the County Treasurer will set aside all ad valorem tax revenue collected within the district which exceeds the amount that would have been collected if the property still had the assessed value that was in effect during the year in which the district was established. In other words, any tax revenue that is attributable to growth in assessed value (assumed to be the result of redevelopment) is "captured" and transferred to the City to be used exclusively to pay for public improvements within the district. The first step in establishing the tax increment district is the adoption of a Resolution which states that the City Council is considering the establishment of the TIF district and sets June 17, 1997 as the date for a public hearing on the matter. The Resolution directs the City Clerk to publish the Resolution in the City's official newspaper and to mail copies to the owners and occupants of all property located within the district, by certified mail. The Resolution also includes a map of the proposed district and a proposed comprehensive plan identifying potential redevelopment project areas and a general description of buildings and facilities to be constructed or improved. Following the public hearing, the City Council may adopt an ordinance establishing the redevelopment district. The Board of County Commissioners and the Board of Education for USD 259 will have 30 days following the public hearing to determine whether the district will have an adverse impact on them, effectively precluding the use of tax increment financing. If the County and School District approve, the potential use of tax increment financing will be established. It will still be up to the City Council to approve the actual use of tax increment financing by adopting a redevelopment plan for the Eaton Block that includes tax increment financing. Once the redevelopment plan is adopted and sent to the County Clerk, the tax increment revenue generated by redevelopment will be segregated and deposited into a special fund for its prescribed use. The cost of mailing the Resolution to all owners and occupants of property located within the district will be charged to the Northeast redevelopment project and ultimately paid from TIF revenues. The actual establishment of the tax increment financing district will not be effective until the City Council adopts an ordinance for that purpose, following the aforementioned public hearing. Under recently enacted state law, if the proposed district is not established prior to July 1, 1997, the statewide public school levy (currently 35 mills) will be excluded from the calculation of tax increment revenues. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Rogers moved that the Resolution giving notice of consideration of establishment of a redevelopment district for the Northeast Redevelopment District and setting a public hearing for 10:30 a.m. on June 17, 1997, be adopted. Motion carried -- carried 7 to 0. RESOLUTION NO. R-97-144 A Resolution stating the City is considering the establishment of a redevelopment district for the Northeast Redevelopment District under authority of K.S.A. 12-1770 et seq., presented. Rogers moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cole, Ferris, Gale, Kamen, Lambke, Rogers, Knight. RECESS The City Council recessed at 10:25 a.m. and returned at 10:35 a.m. *Council Members Gale, Kamen; absent. BOEING HILLS LEASE AGREEMENT FOR BOEING HILLS. *Council Members Gale, Kamen; absent. Marvin Krout Planning Director reviewed the Item. Agenda Report No. 97-448. Cornejo and Sons, Inc. has proposed to lease City-owned land located south of 31st Street South and west of K-15 for use as a disposal site for construction and demolition (C&D) waste. They have previously been approved for a Conditional Use Permit from the Metropolitan Area Planning Commission to operate a C&D landfill at this site. Construction and demolition waste is statutorily defined as "solid waste resulting from the construction, remodeling, repair and demolition of structures, roads, sidewalks and utilities...". This includes, among other things, bricks, concrete, wood, drywall, plumbing and electrical fixtures, non-asbestos insulation and construction packaging. Unacceptable items include asbestos- containing materials, appliances, furniture, garbage, drums, containers, and any hazardous materials. The proposed site contains approximately 17.6 acres and is located just south of the junction of the I-135 drainage canal and the Big Arkansas River. The land is undeveloped and largely located in the 100-year flood plain. Approximately four acres of the site is located in the floodway and will not be utilized as part of the landfill. There is no access to the property although there is an access easement over adjoining property to K-15. In the past, the site was utilized as a site for sludge from the City's Sewage Treatment Plant. The property is heavily utilized by unauthorized trespassers with off-road vehicles and motorcycles. The proposed lease provides for a six-year term, which coincides with the term of the Conditional Use Permit and the expected useful life of the landfill. The Lessor proposes that this facility will be made available to all licensed haulers. The Lessor prepared an estimate of capacity, revenues and expenses for the proposed site. These were reviewed by staff for reasonableness. Rent was set $6,100 per year which equates to $.25 per ton of C&D that the site as configured can contain over its life. At this rent level, the facility essentially breaks even operationally over its life. The Lessee is responsible for securing all required permits and licensees. Cornejo will also be responsible for all costs of preparing the site, properly operating the landfill in accordance with KDHE standards, and closure of the site at the completion of the Permit. Initial site improvements include storm sewers, a deceleration lane on K-15, berming both this site and their adjacent site to the north, etc. These improvements are estimated to cost approximately $150,000. Closure costs will be guaranteed by a financial pledge by the Lessee. After closure, the property (plus any other land acquired by the Lessee for use with the landfill) will be sealed, graded, landscaped and returned to the City as a finished, usable park site. Cornejo is committing $75,000 for closure and park- related costs. The closed Chapin Landfill is directly across the river, offering the possibility of combined usage. The environmental condition of the site has been ascertained by testing and the Lessee has agreed to indemnify the City for any environmental damage. Brooks Landfill is currently scheduled to close on October 10, 2001. While C&D is currently accepted at Brooks, there has been discussion by the Solid waste Planning Committee about banning these materials. Upon the occurrence of either of these events, a new site for a C&D landfill will need to be located. Past discussions with potential landfill developers have indicated that preferred sites for C&D landfills have primarily been so-called "green fields" or environmentally controlled tracts. The advantage of utilizing the subject parcel is that, in its present condition, it has limited current value due to lack of access and physical condition. Currently, the City receives $19.25 per ton for C&D delivered to the Brooks landfill. To the extent that any C&D is diverted from Brooks to the proposed landfill during the remaining life of Brooks, this revenue will be lost. This will be partially offset by the lease payments and the creation of park land for public use. Mayor Knight Mayor Knight inquired if anyone wished to be heard. Bill Cather Bill Cather, 1920 South Hillside, said the neighbors want a park, not a dump, in the area. The area has large trees and eagles use the area for a fly-way. Cement permeates the air and causes health problems; home values will decrease; and traffic problems will increase. The location is bad. This is not in a flood plain but is in a flood way which is where flood waters go. If the flood way is narrowed 109' on one side, flood waters would be forced back to the Chapin Landfill and there will be erosion. A C&D dump does not mean all that is dumped is clean. Asphalt is also in C&D and will break down and seep through. The CPO rejected the project. There were lots of protest petitions but none were accepted because the protesters did not live within 200 feet of the site. Mike Peterson Mike Peterson, 2608 Southeast Drive, stated that the dust is already bad because of Chapin and Cornejo and a berm will not stop the dust. There is also concern about the Chapin Landfill site. A few weeks ago, at the Lewis Street Bridge, 1/2" steel pylons were driven 18' down into the ground were folded over just because of a localized rainfall. The City needs money to address the landfill problem and 25 cents is a bargain compared to $19 plus. Mr. Peterson asked that the dust and the power of the river be remembered. Gary Kilds Gary Kilds said the two large piles of asphalt are over 50 feet high and asked what would happen to the beaver and deer. Bob Troxel Bob Troxel, motorcycle dealership at 3110 Southeast Boulevard, said the dust and traffic are the biggest problems. The wind out of the southwest blows dust directly into the dealership. Dust gets on the inventory and the product is ruined. Cornejo has not done things in the past to the best of their ability. The majority of the dust is from truck traffic. A dump area will make the dust worse. On the shoulders of the road, dust is over one inch thick. Greg McHenry Greg McHenry, Hillside Nursery at 2201 South Hillside, said the property has been used over the years as a dump site for sludge and City waste. The area is now a great hazard and although the dust would be inconvenient - in the long run, the project might result in a greenway and improve the entrance to Wichita. Bob McCune Bob McCune said K-15 ends in a dump. There is much traffic that comes into Wichita through this area. Mr. Mccune urged the Council to look at traffic in the area. Rosemary Lunch Rosemary Lynch, 3200 Southwest boulevard, manager of a mobile home park, said the project would created an additional health hazard and be bad for visitors from the south. Council Member Rogers momentarily absent. Jeannie Dillard Jeannie Dillard said Chapin was supposed to be a park but she had been told that this cannot be done. Businesses and residents are having difficulty with dust and Cornejo has not solved the dust problems at their present location. Henry Bozarth Henry Bozarth spoke of sinus and allergy problems and asked that the Council not approve the project and make the problems worse. Bill Lafoon Bill Lafoon, 3430 Crystal, said the project would depreciate his property value. Council Member Rogers left the Bench. Mr. Lynch Mr. Lynch, area of 3200 Southeast Boulevard, stated that he has health problems and the dust in the air make them worse. More pollutions will hurt the City. Julia Cathridge Julia Cathridge, Crystal Drive, asked that the City not lease the property to anyone for a dump. Chapin is already an example of what will happen. Ron Cornejo Ron Cornejo said the planned project would be an enhancement to the area. The area is watered constantly and no citations have been received. Dick Peckham Dick Peckham, K-15 and 31st, said his business has to dump outside the area which costs him; however, he felt it was unfair to dump in the area. The problem is that there are people in the area. There is a need to balance the interests of the people against those of Cornejo. If Cornejo had a good record to this point he could go along with the request; however, Cornejo has no credibility at this point. Pat Pickard Pat Pickard said the concrete creates dust. Cornejo also has an asphalt pile which is about two times the allowed height. Mark Ladd Mark Ladd, Jim's Imports, federal issues, environmental impact, particulates, pollution, and diesel soot all ought to be considered. Juanita McCune Juanita McCune said this is an entryway to Wichita. There are green trees and those should not be destroyed just to put in an unwanted dump. Council Member Ferris momentarily absent. Marty Muncie Marty Muncie, 31st Street South, said a dump site is not appropriate use for river fronts. The Greenways Commission supports siting of C&D landfills but not along the river. Mayor Knight momentarily absent with Vice Mayor Cole in the Chair. Phil Meyer Phil Meyer, Baughman Co., stated that the development would only be on about 6 acres; the drive would be asphalted; a deceleration land would be installed on K- 15; the hours would be limited to 6 am to 7 p.m., 6 days per week; they would work to have a park later; the FEMA study will be done; and work would be done with the Health Department regarding air pollution. Larry Ross Larry Ross stated that CPOs are good at representing the neighbors. The MAPC does not represent the neighbors. This ought to be presented to all the CPOs as this is a city-wide issue and affects the entire city. Locating a C&D landfill next to a river sets a bad precedent. Council Member Rogers present. Council Member Lambke Council Member Lambke stated that the Council should consider that zoning for a rock crusher is allowed and most of the concerns expressed have been regarding the rock crusher operation. Council Member Lambke said that what should be considered is that, if approved, he believed conditions in the area would become better. If this is not approved, rock crushing, dust, truck traffic, and motor cycles on paths would still go on. There has been no flood since the big ditch was built. This is an ugly site not but it will be improved with the C&D landfill. The neighborhood concerns are appreciated but if all this is not done, conditions will not improve. Steve Lackey Director of Public Works stated that of the $26/ton tipping fee at the landfill, $19.25 goes to the City of Wichita. Approximately 25,000 tons/year is C&D. Ron Cornejo Ron Cornejo, answering questions, said some of the C&D currently is taken to Derby (cost about $12/ton) and some is taken to Marion County on County (cost about $5/ton). Cost for the proposed site has not yet been set but probably will be between $10 and $12/ton. The project will have about 146,000 tons capacity. Steve Lackey Director of Public Works explained that a flood way is an area that conveys water; a flood plain could be inundated with water. Cornejo will still have to meet and go through the permit process with FEMA. Kurt Schroeder Superintendent of Central Inspection said the rock crushing is being done under the zoning code. One large asphalt pile (with no dust) is probably about 40 feet tall and there is a dirt mount that is about 35 feet tall. Cornejo has not been asked to reduce the height of the piles. Council Member Kamen Council Member Kamen said the lease should be based on tonnage but this was not the place for a landfill. It is also hoped the appraisal issue would be looked into. Mayor Knight Mayor Knight spoke in opposition and citizens opinions should be taken seriously. Council Member Rogers Council Member Rogers said this has a potential of making a situation which is not good better and that he would vote for the proposed lease agreement. Council Member Cole Council Member Cole said she could not vote to extend something into another area which she would not vote to have in her area. Council Member Ferris Council Member Ferris said the primary issues are with the rock crushing operation. The Health Department has representatives present and has made notes and will test and look into the situation; however, this has little to do with a C&D landfill. Concrete would be taken to the area anyway for crushing. There is concern with the lease provisions. Any C&D that is not currently going to Brooks is not going to be converted to this landfill. There is a landfill nine miles away that is accepting C&D. Cornejo is not currently taking any C&D to Brooks Landfill. Brooks is taking C&D based on some need Brooks currently is able to fill. Looking at the numbers - the lease is a little bit more lucrative than it should be. The City ought to at least realize an additional $.50/ton. If the analysis of 140,000 tons is correct, the City ought to be receiving at least another $6,000 annually in lease payments. Mayor Knight Mayor Knight said there are other options available and he asked the Council to stand up for the citizens. Motion -- Knight moved that the lease agreement be denied. Motion failed 4 to 3. Ferris, -- failed Gale, Lambke, Rogers - No. Motion -- Ferris moved that the Lease Agreement be approved with the change of a $13,000 annual payment over the six-year lease term, with the remainder of the provisions -- carried remaining the same, and the Mayor be authorized to sign. Motion carried 4 to 3. Cole, Kamen, Knight - No. Motion -- Knight moved that the rules be set aside and the Consent Agenda be taken up out -- carried of order. Motion carried 7 to 0. (The Council proceeded to take up the Consent Agenda. Action is shown in Agenda Order.) (Later in the meeting the Council returned to Items 8 and 8. Action is shown below.) (Item 8) (Council Members Ferris, Lambke; absent) GROUNDWATER OPTIONS BENEFICIAL GROUNDWATER RE-USE OPTIONS. *Council Member Lambke present. Steve Lackey Director of Public Works reviewed the Item. Agenda Report No. 97-451. To comply with Brooks Landfill Operating Permit and the Assessment of Corrective Measures regarding ground water contamination, the City of Wichita must implement a ground water clean-up strategy. The strategy must address two areas of contamination; Phase 1) At the leading edge of the plume in the vicinity of I-235 and K-96 Highways; and Phase 2) Along the perimeter of the contamination source at Cell C. The agreement with KDHE requires these contamination areas to be addressed by September and December 1997, respectively. To address the Phase 1 remediation Camp Dresser and McKee, the City's Environmental Engineering contractor has developed four options, new cost estimates, and preliminary design work for the Phase 1 remediation. All four options involve extraction of approximately .5 million gallons of ground water per day from the leading edge of the contaminate plume. Previous Council action was taken on October 1, 1996 regarding this issue as part of the City's response to KDHE's requirement for a preferred alternative for groundwater remediation at the Brooks Landfill site. Since that date CDM has refined the cost estimates and identified additional clean-up options. Phase 1 containment and treatment of the southern (down gradient) portion of the contaminant plume will utilize 1 extraction well and venturi style air stripper system. The extraction well and treatment system, based on the permit conditions of KDHE, is to be installed by September 30, 1997. The well and treatment system will be located in the vicinity of K-96 and I-235 highways. The groundwater extraction and treatment system will generate approximately 0.5 million gallons per day of high quality water, treated to drinking or appropriate discharge standards. The options available for Phase 1 of the Brooks Landfill clean-up are: A. Piping the treated water into the Equus Beds raw water pipeline as a supplemental well water source. The treated water will be mixed with the Equus beds water prior to treatment at the Wichita municipal water treatment plant. The equus bed raw water line carries 18,000,000 gallons per day. This is the least expensive alternative and requires the least permitting requirements. Cost: $640,000 capital with a $2.2 M net present value (5%, 30 years, 0 salvage). B. Recharge of the aquifer in the vicinity of the extraction wells by utilizing 4 injection wells. The treated groundwater will be used for plume control in addition to aquifer recharge; however, it will most likely go unused because the housing in Meridian Gardens (local users) are now connected to City water. Permitting requirements include obtaining an underground injection permit which adds to the project schedule. Cost: $1.1 M capital with a $3.4 M net present value (5%, 30 years, 0 salvage). C. Piping the treated water to the Miller Tract of Brooks Landfill as a supplemental water supply for the newly constructed wetlands. This option requires considerable piping and permitting considerations. This option has the most expensive capital cost and requires the most permits. Cost $1.2 M capital with a $3.2 M net present value (5%, 30 years, 0 salvage). D. Disposal to the Arkansas River. The extracted ground water would be treated to disposal standards and discharged to the Big Arkansas River through a discharge structure. Cost $850,000 capital with a $2.7 M net present value (5%, 30 years, 0 salvage). These options have been reviewed by the Board of Health, Kansas Department of Health & Environment (KDHE) , Citizens Technical Review Committee, and the Chamber of Commerce's Environmental Resources Committee. The Chamber of Commerce Environmental Resources Committee took no action but was generally positive toward option A. The Board of Health and the Citizens Technical Review Committee both formally recommended option A for the Phase 1 preferred remediation option. Project costs associated with these options will be covered through fees paid into the Landfill Trust fund. The 5.5 billion gallons pumped over the life of the cleanup equates to a present value savings to the water utility of approximately $4,000,000. It is recommended that the Council approve Option A as the preferred ground water remediation option. Mayor Knight Mayor Knight inquired if anyone wished to be heard. Bill Cather Bill Cather, 1920 South Hillside, spoke against Option A and said common sense would dictate that citizens should not drink water from under Brooks Landfill. The trouble with this is that today's technology is being used when tomorrow's problems will judge decisions based on tomorrow's technology. Mr. Cather said the regulations are based on arbitrary numbers resulting from tests done on normal male adults and expressed concern for pregnant women and fetal consumption of certain endocrine system and hormones. The tests are very expensive and no one test is for all items. The tests are expensive and Mr. Cather said he had no faith that all possible combinations could be tested. The image of the City is important and there will be more complaints about the water. Mayor Knight Mayor Knight said that in September or October he was not convinced that there were some of the safeguards in place to satisfy some of the concerns he had. What has subsequently been learned leads to a different conclusion. The same people who Bill Cather compliments for giving us some of the best drinking water in the country, and who have consistently done that through many years of the City's public utility, are the same people who are giving the City the present advice. Mayor Knight expressed confidence in the management of the Water Department and in the Board of Health. The Board of Health has many people who are all of different points of view, and even the Sierra Club is represented, and the Board supports the project. The City Manager, Mayor Knight, and others, when response to the Gilbert and Mosley contamination site was being structured, believed that there ought to be a check- off for a lot of the good consulting advice that was being given. A group of people with a wide-range of technical expertise was assembled. This group has been assisting the City for some time now, and this group looked at this matter. The Chamber of Commerce had a subcommittee looked at this and support the proposal. There has to be a willingness to re-think proposals as information is brought forward. Motion -- carried Knight moved that Option A be approved. Motion carried 6 to 0. (Ferris absent) Council Member Kamen left the Bench. (Item 8b) FINANCIAL PLAN REVIEW OF 1998-2002 FINANCIAL PLAN. Ray Trail Director of Finance reviewed the Item. The Financial Plan is an overview which gives the Mayor and City council an opportunity to provide policy direction in preparation of the upcoming budget. Wichita's employment includes a broad mix of business types, with a strong base of relatively high paying manufacturing jobs. Total employment is expected to continue to grow at an average annual rate of 2.3 percent from 1997 through 2001. Since budgets are revenue-driven, staff begins the planning process by projecting funding sources, giving careful attention to the most important of these. Then current- level expenditures, Council actions, federal/state mandates, and other factors, including economic considerations, are used to estimate future expenditure needs. For each fund or budget, a set of assumptions is shown. Many decisions will depend on the assumptions used to project available resources and expenditure needs. In addition, most fund presentations include key policy issues or questions. City Council Members will depend on citizen input, as well as informed judgment, for budgetary actions related to these issues. The Director of Finance, responding to questions, said there are increased costs for a new SAM facility but there would also be decreased fuel costs for the deadhead time to the south McLean facility. It is thought, generally speaking, there are enough savings that can be achieved to offset the operational costs. Mayor Knight Mayor Knight said he was unsure he would conclude there would have to be any rate increases for the utilities. It looks like a lot of cash is being used or is planned to be used. The systems can be accurately defined as having an inter- generational equity feature. Generally different generations pay for the benefit. A lot of cash is being used when a lot of that could be responsibly bonded. Ray Trail Director of Finance said it was intended to offer alternative scenarios to the Council in terms of some of those. It is, very much, some of the kinds of things that may be looked at with the Storm Water Utility - the option to draw down cash versus debt financing. Mayor Knight Mayor Knight stated that he wanted to share a position or two during the budget talks about the tax increases that are anticipated in 1999 or 2000. It is unsure that the increases cannot be avoided by adjusting some of the accounts around. There is a 10 mill levy for debt service - maybe that ought to be revisited - it does not have to be 10 mills. If it is needed to shift a mill or two to the general fund to avoid tax increases, that would be very reasonable discussion for the community to undertake. There is concern regarding the looming tax increases that the sister jurisdictions (School Board or County Commission) are considering undertaking. It may be the Council's responsibility to kind of "bite the bullet" for the next three or four years and figure out how the general fund can be improved so tax increases will not be necessary -- and still maintain the public safety -- which still remains a top priority for people in this community. No further action was taken on this Item. CITY COUNCIL AGENDA (Council Members Ferris, Kamen; absent) APPOINTMENTS APPOINTMENT TO WICHITA ATHLETIC COMMISSION. One appointment (Council-at-large), for a term expiring June 30, 1997. Motion -- Knight appointed Rod Tanner and moved that the appointment be approved. Motion -- carried carried 5 to 0. (Ferris, Kamen; absent) PENSION INVESTMENT PENSION INVESTMENT POLICY. (Requested by Council Member Kamen.) Motion -- carried Knight moved that this Item be deferred one week. Motion carried 5 to 0. (Ferris, Kamen; absent) CONSENT AGENDA (This Item was considered earlier in the meeting with all Council Members present) Knight moved that the Consent Agenda, except Item 31, be approved in accordance with the recommended action shown thereon. Motion carried 7 to 0. BOARD OF BIDS REPORTS OF THE BOARD OF BIDS AND CONTRACTS DATED MAY 27, 1997, AND JUNE 2,1997. At 10:00 a.m., Friday, May 23, 1997, 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 May 27, 1997) PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION: SEWERS, PAVING AND WATER MAINS AS PER SPECIFICATIONS PAVING BRITTON, PINE GROVE TO 119TH STREET WEST (Aberdeen First Addition) 472 82634 (764076) Asphalt Construction - $42,286.70 LATERAL 137, WAR INDUSTRIES SEWER (Regency lakes Addition) 468-82695 (743062) Utility Contractors - $121,313.00 IMPROVE BRADLEY FAIR PARKWAY, PH II (Bradley Fair 2nd Addition) 472-82732 (764308) Ritchie Paving - $590,512.40 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 7 to 0. DEPARTMENT OF HUMAN SERVICES/ HOUSING DIVISION: PAINT AND GUTTER REPLACEMENT AT PROPERTY MANAGEMENT BUILDING 127696-2803-WHA 196 AS PER SPECIFICATIONS Original Rock Replicas - $16,873.65 DEPARTMENT OF THE CITY MANAGER/PUBLICATION OF LEGAL NOTICES: 032102 AS PER SPECIFICATIONS The Daily Reporter - .48 per line Knight moved that the contract(s) be awarded as outlined above, same being the lowest and best bid, and the Purchasing Manager be authorized to sign. Motion carried 7 to 0. At 10:00 a.m., Friday, May 30, 1997, 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 June 2, 1997) PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION: SEWERS, PAVING AND WATER MAINS AS PER SPECIFICATIONS 16" Water Line along 127th St. E from Kellogg to Central 448-88855 (632216) WB Carter Construction Co., Inc. - $235,626.00 Plaineview Improvements Phase II, Whitney Lane Access Control, sidewalk & site improvement (618058 s/b 617167) Barkley Construction - $34,272.50 Total add Alt #4 - $325.00 Water Distribution System (Sunridge 2nd Addition) 448-88556 (733634) HD Mills and Sons/dba Southwest Salvage - $26,115.00 Water Distribution system (Smithmoor Fifth Addition) 448-89069 (733766) KC Excavating - $10,007.00 Storm Water Drain #122 (Aberdeen 2nd Addition) 468-82626 (750984) Dondlinger Construction Company, Inc. - $177,165.25 Improving Shefford (Sunridge 2nd Addition) 472-82161 (764175) Asphalt Construction - $179,329.10 Improving Shiloh (Smithmoor Fifth Addition)472-82758 (764266) Asphalt Construction - $57,208.50 Pave Bay Country, Bay Country Circle & Cindy (Country Meadows West) 472-82777 (764274) Kansas Paving - $219,068.00 (Engineer's Construction Estimate) 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 7 to 0. DEPARTMENT OF HUMAN SERVICES/HOUSING:ELEVATOR RENOVATION ON TWO (2) ELEVATORS AT GREENWAY MANOR 127753 2803 WHA 196 AS PER SPECIFICATIONS Montgomery KONE Inc. - $144,182.00 (Total Net Bid) VARIOUS DEPARTMENTS/MISCELLANEOUS AIR, FUEL AND OIL FILTERS 037200 Central Detroit Diesel-Allison, Inc. - Price Sheet Number - AC Delco 42/57A- 20 Price Sheet date - 8/1/96 Percent discount - 55% Knight moved that the contract(s) be awarded as outlined above, same being the lowest and best bid, and the Purchasing Manager be authorized to sign. Motion carried 7 to 0. LICENSE APPLICATIONS APPLICATIONS FOR LICENSES TO RETAIL CEREAL MALT BEVERAGES. Renewal 1997 (Consumption on Premises) Nhung Nguyen My Canh Restaurant 3141 S. Hillside #101 James E. Intfen Intfen, Inc. dba The BBQ Co. 300 S. Greenwich Rd. (Consumption off Premises) Son B. Tran KC Gas & Groceries #3 1955 S. Washington Benjamin J. Schultz T & E Oil Co., Inc. dba Amoco Food Service 233 S. Maize Rd. Benjamin J. Schultz T & E Oil Co., Inc. dba Amoco Food Service 10304 W. 13th Mark A. Boswell Midway Oil #3 4001 S. Seneca Special Event (Consumption off Premises) Janzen Nguyen 6/28/97 1514 W. 21st St. Janzen Nguyen 7/26/97 1514 W. 21st St. Robert Stevenson 7/12/97 1210 E. Douglas Motion -- Knight moved that the licenses be approved subject to Staff review and -- carried approval. Motion carried 7 to 0. SUB. PLANS AND SPECS. SUBDIVISION PLANS AND SPECIFICATIONS. a. Lift Station and Force Main for Lateral 136, War Industries Sewer to serve Greenwich Business Park, Manhattan Lakes, Regency Lakes, Regency Lakes 2nd, and Kensington Parks (north of 21st Street North, west of Greenwich. (468- 82694/743112/480403) Does not affect existing traffic. (Council approval date 3- 25-97) (District 2) b. Lateral 118, War Industries Sewer to serve part of Pebblebrook Addition (north of Pawnee, west of Webb). (468-82277/743104/480402) Does not affect existing traffic. (Council approval date 2-23-93) (District 2) c. Storm Water Sewer #483 to serve Buckhead 2nd Addition (north of Central, west of 119th West). (468-82705/750968/485132) Does not affect existing traffic. (Council approval date 4-15-97) (District 5) d. Storm Water Sewer 481 to serve Hickory Creek Estates Addition (south of 13th Street North, west of 119th Street West). (468-82683/750943/485130) Does not affect existing traffic. (Council approval date 3-18-97) (District 5) e. Hickory Creek, Alderny, Alderny Court, Hickory Courts and Sidewalk to serve Hickory Creek Estates Addition (south of 13th Street North, west of 119th Street West). (472-82802/764233/490526) Does not affect existing traffic. (Council approval date 3-18-97) (District 5) f. Hickory, Cedar Downs Circle and Kenny Circle to serve Buckhead 2nd Addition (north of Central, west of 119th West). (472-82822/764290/490532) Does not affect existing traffic. (Council approval date 4-15-97) (District 5) g. Landon, Central, Park, Shefford and Chartwell to serve Aberdeen 2nd Addition (north of 21st, east of 119th Street West). (472-82751/764316/490534) Does not affect existing traffic. (Council approval date 1-28-97) (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 by 10:00 a.m., June 13, 1997. Motion carried 7 to 0. PRELIMINARY ESTIMATES PRELIMINARY ESTIMATES. a. 1997 Contract Maintenance preservative Seal of Asphalt Streets - $51,582.00. Traffic to be maintained through construction using flagpersons and barricades. (Council approval March 4, 1997) (131540/110000) b. 1997 Contract Maintenance Quick Set Slurry Seal of Asphalt Streets, Phase II - $238,106.00. Traffic to be maintained through construction using flagpersons and barricades. (Council approval March 4, 1997) (131557/11000) c. 1997 Contract Maintenance Micro-Surface Seal of Arterial Streets - Phase II (Various locations) - $91,747.00. Traffic to be maintained through construction using flagpersons and barricades. (Council approval March 4, 1997) (132274/112000) d. 1997 Contract Maintenance Surface Milling and Asphalt Overlay of Arterial Streets, Phase III, Joint Repair on 13th Street North - $117,425.00. Traffic to be maintained through construction using flagpersons and barricades. (Council approval March 4,1997) (132282/112000) e. Replacement of concrete on entrance terrace to the Recreation Center in Edgemoor Park (Edgemoor and 9th Street North) - $20,000.00. Does not affect existing traffic. (Council approval February 4, 1997) (472-82793/785659/440-097) f. Water Distribution System to serve Buckhead Second Addition (north of Central, west of 119th West) - $92,000.000. Does not affect existing traffic. (Council approval April 15, 1997) (448-89139/733798/470-458) g. Lateral 4, Main 18, Southwest Interceptor Sewer to serve Buckhead Second Addition (north of Central, west of 119th West) - $149,000.00. Does not affect existing traffic. (Council approval April 15, 1997) (468-82704/743078/480-400) h. Bluestem, Hoyt Circle, Fox Run circle, and Stoneybrook to serve Brentwood Village Addition (south of Harry, east of Webb) - $283,500.00. Does not affect existing traffic. (Council approval March 25, 1997) (472-82795/764217/490-524) i. Bay Country, Bay Country Circle, and Cindy to serve Country Meadows West (north of Central, west of 119th Street West) - $264,660.00. Does not affect existing traffic. (Council approval March 18, 1997) (472-82777/764274/490-530) j. Spring Meadow and Spring Meadow Courts to serve Reflection Ridge Seventh Addition (south of 29th, west of Ridge) - $142,684.00. Does not affect existing traffic. (Council approval March 21, 1995) (472-82561/764282/490-531) k. Sanitary Sewer Lines in the area bounded by Maple, Douglas, Meridian, and Seneca (north of Maple, west of Seneca) - $500,000.00. Traffic to be maintained through construction using flagpersons and barricades. (Council approval January 14, 1997) (468-82708/621706/533-281) Motion -- Knight moved that the preliminary estimates be approved and filed. Motion -- carried carried 7 to 0. STATEMENTS OF COST STATEMENTS OF COST. a. (Final) ADA - $394,093. (Less Bonds Previously Issued - $394,093; Other revenues - $6,700) Other Interest Expense - $11,607. Financing to be issued at this time - $6,000. (790600/435-091) b. (Final) Replace carpet in City Hall - $297,949. (Less Financing Previously Issued - $250,000) Other Interest Expense - $748. Financing to be issued at this time - $48,697. (790873/435-118) c. (Final) Land acquisition for the Science Center - $1,789,823. (Less Financing Previously Issued - $1,290,000; Other Revenue - $84,240) Other Interest Expense - $63,952. Financing to be issued at this time - $479,535. (790881/435- 119) d. (Final) Replace carpet at the Main/Westlink Library - $278,696. (Less Financing Previously Issued - $269,000; Other Revenue - $7,393) Financing to be issued at this time - $2,303. (790923/435-123) e. (Final) Replace heating/cooling units at Osage Recreation Center - $40,289. (Less Financing Previously Issued - $24,000) Other Interest Expense - $2,117. Financing to be issued at this time - $18,406. (790972/435-128) f. (Second) City Hall Second and Thirteenth Floor Remodel - $105,990. (Less Financing Previously Issued - $92,000) Financing to be issued at this time - $13,990. (791020/435-133) g. (AMENDED Second) Ice Rink - $2,400,000. (Less Financing previously Issued - $1,700,000) Financing to be issued at this time - $700,000. (791103/435-141) h. (Final) Century II Stage Equipment Renovation and Replacement - $377,500. (Less Financing Previously Issued - $346,000) Other Interest Expense - $346,000. Financing to be issued at this time - $37,195. (791202/435-149) i. (Third) Century II Air Conditioning and Heating Equipment - $2,950,000. (Less Financing Previously Issued - $2,530,000) Financing to be issued at this time - $420,000. (791244/435-153) j. (Final) Land Acquisition along the East Bank at 401 South Main - $186,653. (Less Financing Previously Issued - $185,000) Other Interest Expense - $4,895. Financing to be issued at this time - $6,548. (791343/435-163) k. (Amended Second) Improving Meridian from Maple to Central - $30,000.00. (Less Financing Previously Issued - $0.00) - Financing to be issued at this time - $5,000.00. (472-82740/706408/405-194) Motion -- Knight moved that the Statements of Cost be approved and filed. Motion -- carried carried 7 to 0. BOARD MINUTES MINUTES OF ADVISORY BOARDS. Alternative Correctional Housing Advisory Board, 3/27/97 Alternative Correctional Housing Advisory Board, 4/3/97 Alternative Correctional Housing Advisory Board, 4/25/97 Board of Park Commissioners, 5/5/97 Civil Rights & Services Board, 5/19/97 Commission on the Status of Women, 5/7/97 CPO Coordinating Board, 3/5/97 CPO Coordinating Board, 5/7/97 CPO Northeast Council 1, 5/12/97 CPO East Council 2, 5/12/97 CPO Northwest Council 5, 5/14/97 CPO North Central Council 6, 5/14/97 Public Art Advisory Board, 5/8/97 Sedgwick County Solid Waste Management Committee, 5/5/97 Wichita Airport Authority, 5/5/97 Wichita Art Museum Board, 4/24/97 Wichita Art Museum Board, 5/5/97 Wichita Metropolitan Transit Authority, 4/24/97 Motion -- carried Knight moved that the Minutes be received and filed. Motion carried 7 to 0. STREET CLOSURES/USES SPECIAL EVENT STREET CLOSURES/USES. Agenda Report No. 97-452. The Law Enforcement Torch Run for Kansas Special Olympics will be June 6, 1997, at City Hall with a closure of Main Street (Central to Third) from 6:30 to 8:00 p.m. Motion -- Knight moved that the request be approved subject to recommendations. Motion -- carried carried 7 to 0. MUNICIPAL COURT CONTRACT FOR WICHITA INTERVENTION PROGRAM GUARD SERVICES. GUARD SERVICES Agenda Report No. 97-97-453. State statute requires first conviction drunk drivers to be incarcerated for forty- eight hours and attend alcohol classes. In 1984, Municipal Court established the Wichita Intervention Program which combined both aspects in a setting outside of jail. It was the second intervention program in the nation. The program helps relieve the overcrowded jail, offenders pay for their incarceration, the program has the lowest recidivism rate in the state and City streets are safer. Drunk drivers attending the program are confined at a motel. Security guards, working under the direction of an instructor hired by the court, provide supervision on a continuous basis. The guards do pat searches, sort through luggage, prohibit uninvited visitors and perform hourly bed checks. The City networks with the County by allowing district court first offenders to attend this program. Wells Fargo, the current service provider, is the low bid at $8.32 per hour. The cost is paid by offender fees. Municipal Court is certified by the 18th Judicial District to provide education to DUI offenders. The Attorney General has indicated that offenders must remain "under the custody and control of law enforcement officials." The Wichita Intervention Program, including instructors and guards, remain a Municipal Court operation. Motion -- Knight moved that the selection of Wells Fargo as the provider of guard services to the Wichita Intervention Program be approved and the Mayor be authorized to -- carried sign. Motion carried 7 to 0. MUNICIPAL COURT CONTRACTS FOR WICHITA INTERVENTION PROGRAM INSTRUCTORS. INTERVENTION INSTRUCTORS Agenda Report No. 97-454. State statute requires first conviction drunk drivers to be incarcerated for forty- eight hours and attend alcohol classes. In 1984, Municipal Court established the Wichita Intervention Program which combined both aspects in a setting outside of jail. It was the second intervention program in the nation. The program helps relieve the overcrowded jail, offenders pay for their incarceration, the program has the lowest recidivism rate in the state and city streets are safer. While confined at the motel, offenders attend 21 hours of lectures, group sessions, presentations by guest speakers and self assessments. An instructor, certified as an alcohol & drug counselor, leads the intervention process. The instructor also provides direction to security guards and liaison with the motel manager. There are no other intervention programs in Sedgwick County. A primary instructor will teach three weekends a month. A secondary instructor will teach one weekend a month. This rotation will reduce the burnout of working every weekend. Also, in the event an instructor contract is changed, an experienced alternate is available to train the new person. In an effort to privatize this function and to pay for this contract, a probation officer position has been eliminated. The City networks with the County by allowing district court first offenders to attend this program. Heartstone Substance Abuse Services is a higher bid at $21.50 per hour, but is the recommended vendor for primary instructor. Heartstone has much better education and experience credentials. R&L Counseling and Referral is recommended for the secondary instructor at $20.00 per hour. The panel making these recommendations consisted of the administrative judge of Municipal Court, an associate judge and a municipal court supervisor. The cost of the instructors is paid by offender fees. Municipal Court is certified by the 18th Judicial District to provide intervention classes to DUI offenders. The attorney general has indicated that offenders must remain "under the custody and control of law enforcement officials." The Wichita Intervention Program, including instructors and guards, remain a Municipal Court operation. Motion -- Knight moved that the selection of Heartstone Substance Abuse Services as the primary instructor and R & L Counseling and Referral as the secondary instructor for the Wichita Intervention Program be approved and the Mayor be authorized to -- carried sign. Motion carried 7 to 0. RAILROAD AGREEMENTS AGREEMENTS FOR THE INSTALLATION OF WATER AND SANITARY SEWER LINES WITHIN RAILROAD RIGHT-OF-WAY. (Districts V and VI) Agenda Report No. 97-455. The City Council, approved funding for the construction of the Northwest Transmission Water Line on July 18, 1995. The Broadview Hotel Sanitary Sewer Reconstruction will be funded by Sanitary Sewer Maintenance funds which were approved on January 7, 1997. The Northwest Transmission Water Line Phase II will be constructed within the Kansas Southwestern Railroad right-of-way adjacent to Zoo Blvd., from 9th Street Hoover. The Broadview Hotel Sanitary Sewer Relocation will be crossing the Union Pacific Railroad Company right-of-way, north of the Broadview Hotel. Railroad agreements are required for installation of public facilities within railroad right-of-way. The one-time fee for the agreement for the Northwest Transmission Water Line project is $40,105; the fee for the Broadview Hotel Sanitary Sewer project is $1,000. funds are available within the project budgets. The funding source is Water and Sewer Utility funds (CIP #W-65 and #S-4). Motion -- Knight moved that the agreements be approved and the Mayor be authorized to sign. -- carried Motion carried 7 to 0. CDBG CONTRACT ASSIGNMENT OF INTEREST. Agenda Report No. 97-456. On June 11, 1996, the City Council approved a Community Development Block Grant (CDBG) contract of $75,000 with Mennonite Housing Rehabilitation Services, Inc. (MHRS) for sit acquisition and development costs of a 56 unit senior residences complex in Country Acres. As part of the financing for Country Acres Senior Residences, Kansas Affordable Housing, Inc. (HAHG), a subsidiary of Mennonite Housing Rehabilitation Services, Inc., entered into an agreement as general partner of Metro Senior Residences, L. P. who is the project developer. Mennonite Housing Rehabilitation Services, Inc. contributed to the limited partnership, through Kansas Affordable Housing, Inc., the site and development costs which were to be paid from CDBG funds. Because the City's existing CDBG contract is with Mennonite Housing Rehabilitation Services, Inc., and Mennonite Housing Rehabilitation Services, Inc. has deeded the property to Kansas Affordable Housing, Inc., it is necessary for Mennonite Housing Rehabilitation Services, Inc.. to assign its legal interest in the CDBG contract to Kansas Affordable Housing, Inc. This is required to permit compliance with the new security instruments. There will be no change in the $75,000 CDBG funds allocated for the project. An assignment of interest, mortgage and promissory note have been prepared by the attorney for Mennonite Housing Rehabilitation Services, Inc. and Kansas Affordable Housing, Inc., it is necessary for Mennonite Housing Rehabilitation Services, Inc. to assign its legal interest in the CDBG contract to Kansas Affordable Housing, Inc. This is required to permit compliance with the new security instruments. Motion -- Knight moved that the assignment of interested be approved and the Mayor be -- carried authorized to sign. Motion carried 7 to 0. ENGINEERING CONTRACT CONSTRUCTION ENGINEERING SERVICES FOR WATER LINE IN HARRY AT 127TH STREET EAST. (District II) Agenda Report No. 97-451. On January 7, 1997, the City Council approved the design and construction of 16" water line in Harry from west of 127th Street East to east of 127th Street East. Plans and specifications were prepared for the project and the City took bids on April 20, 1997. W. B. Carter Construction Company submitted the low bid and a construction contract was prepared. Since this is the Construction and Survey's peak workload period, and with this project lying outside of city limits, City crews are not available to perform the construction engineering services for this project. Staff requested proposals and on May 1, 1997, the Staff Screening and Selection Committee selected Baughman Company, P.A. to provide the construction engineering services. Payment to Baughman Company, P.A. will be made on a lump sum basis of $15,500. Funds are available in the existing project budget. The funding source is Water Utility. Motion -- Knight moved that the Agreement be approved and the mayor be authorized to sign. -- carried Motion carried 7 to 0. KDOT AGREEMENTS AGREEMENTS FOR REPAIR AND/OR PARTIAL RECONSTRUCTION OF THE SOUTHBOUND BRIDGE ON I-135 FROM 17TH TO ENGLISH, AND THE EASTBOUND BRIDGE ON KELLOGG OVER WASHINGTON STREET. (Districts I and VI) Agenda Report No. 97-458. The Kansas Department of Transportation (KDOT) intends to repair and/or partially reconstruct the southbound bridge on I-135 from 17th to English, and the eastbound bridge on Kellogg over Washington Street. KDOT intends to take bids on these projects in June and begin construction in August 1997. Because the work is located within the city limits of Wichita, KDOT has submitted Agreements wherein the City authorizes the work to be done. The Agreements authorize the work to be done within the city limits. The work on Kellogg (expansion devices) will be done on weekends. The work on I-135 (expansion devices & strip seal) will be done during off peak traffic periods. KDOT contemplates that only one lane of traffic will be closed at any time. There is no cost to the City associated with these Agreements. Motion -- Knight moved that the Agreements be approved and the Mayor be authorized to sign. -- carried Motion carried 7 to 0. KDOT AGREEMENT CONSTRUCTION AGREEMENT FOR 13TH AND WACO. (District VI) Agenda Report No. 97-459. On January 9, 1996, the City Council approved including the intersection of 13th and Waco as part of the 1996 Intersection Reconstruction Program (CIP #MS-412). The project consists of installing left-turn lanes, upgrading traffic signals and landscaping. An Agreement between the City and the Kansas Department of Transportation (KDOT) for KDOT to administer the project has been prepared. The project will be brought back to City Council for approval prior to construction. KDOT will pay 90 percent of the cost of construction and construction engineering. The City's share will be paid by General Obligation Bonds authorized by Ordinance No. 42-985. Motion -- Knight moved that the Agreement be approved and the Mayor be authorized to sign. -- carried Motion carried 7 to 0. DESIGN AGREEMENT AGREEMENT FOR DESIGN SERVICES FOR PEBBLEBROOK ADDITION. (District II) Agenda Report No. 97-460. The City Council approved the Pebblebrook Addition plat on February 23, 1993. The proposed Agreement between the City and Baughman Company, P.A. provides for the design of Lateral 118, War Industries Sewer; Water Distribution System Number 448 88680; and paving Cooper, Pebblebrook, Beech, Beech Court and Pebblebrook Court (north of Pawnee, west of Webb). Because Baughman Company, P.A. provided subdivision engineering services for this addition, it can expedite construction plan preparation. Payment will be on a lump sum basis not to exceed $32,300 and will be paid by Special Assessments. Motion -- Knight moved that the Agreement be approved and the Mayor be authorized to sign. -- carried Motion carried 7 to 0. DESIGN AGREEMENT AGREEMENT FOR DESIGN SERVICES FOR BRADLEY FAIR SECOND ADDITION. (District II) Agenda Report No. 97-461. The City Council approved the Bradley Fair Second Addition plat on May 21, 1996. The proposed Agreement between the City and Professional Engineering Consultants, P.A. (PEC) provides for the design of Storm Water Drain No. 119, and paving Bradley Fair Parkway and sidewalk (south of 21st, east of Webb). Since PEC provided subdivision engineering services for this addition, it can expedite construction plan preparation. Payment will be on a lump sum basis not to exceed $70,000 and will be paid by Special Assessments. Motion -- Knight moved that the Agreement be approved and the Mayor be authorized to sign. -- carried Motion carried 7 to 0. COIN TELEPHONE SERVICES AWARD OF CONTRACT FOR COIN TELEPHONE ADMINISTRATION SERVICES. Agenda Report No. 97-462. The Telecommunications Reform Act of 1996 has put Southwestern Bell and competing coin telephone vendors on an equal basis within this market. To ensure the City receives the best possible coin telephone service and attractive commissions, a Request for Proposal was sent to eight firms, five of which responded. All interested vendors would be able to provide adequate service; however, changes in this market make it likely that any selected vendor will remove some coin phones currently in service at City locations in order to assure profitability. It is important to retain service in as many locations as possible. Teleconnect of Kansas, Inc. received the highest evaluation score based upon likelihood of continued service in marginally profitable locations, estimates of commission income and report quality. Service under the contract will continue to be provided by southwestern Bell while Teleconnect provides administrative and reporting services. Under the recommended proposal, revenue from coin telephones will increase from approximately $3,000 to $12,000 annually. There will be no cost to the City under the contract. Motion -- Knight moved that the proposal of Teleconnect of Kansas, Inc. be approved and the Purchasing Manager be authorized to sign a one-year contract for service with the option to renew the contract for two additional one-year periods. Motion carried -- carried 7 to 0. REPORT ON CLAIMS REPORT ON CLAIMS ALLOWED - APRIL, 1997. Name of Claimant Amount Misty Ratcliff $ 243.71 Southwestern Bell $ 224.25 Loretta Scott $1,992.00 Roosevelt Brecks $ 6.00 Motion -- carried Knight moved that the Report be received and Filed. Motion carried 7 to 0. LAWSUIT SETTLEMENT SETTLEMENT OF LAWSUIT. Agenda Report No. 97-463. Ms. Mick filed a lawsuit against the City and two officers, alleging that excessive force was sued when she was being arrested on August 18, 1992. The plaintiff Ms. Mick has offered to accept a lump sum payment of $142,500 as full settlement of all her claims against the City and the police officers. Because of the uncertainty and the risk that a judgment at trial, plus an award of attorney fees could 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 officers or the City. Rather, it is merely settlement to resolve a long disputed claim. Funding for this settlement payment is from the City's tort claims fund. Motion -- Knight moved that the Settlement of Litigation be approved and the settlement -- carried payment be authorized. Motion carried 7 to 0. PROPERTY ACQUISITION ACQUISITION OF A PORTION OF PROPERTY LOCATED AT 1002 WEST MAPLE FOR THE MAPLE AND SENECA IMPROVEMENT PROJECT. (District VI) Agenda Report No. 97-464. The Maple and Seneca Improvement Project, approved by Council on August 20, 1996 requires the acquisition of twenty-two (22) partial takes. One of these tracts is Tract #25 which is owned by J. Thompson and is more fully described on the tract map and legal description. The subject tract contains approximately 112.5 square feet and is improved with a combination office and warehouse. The taking will not impact the improvements. The property was appraised by Roger Turner Company and a value of $395 was established for the taking. The owner has agreed to sell the property for the indicated price. The Budget of $445 includes $395 for the acquisition, and $50 for closing costs. This is the second tract acquired for the project. After the purchase of this property, twenty (20) will remain to be acquired through either negotiation or eminent domain. Motion -- Knight moved that the budget and the Contract be approved; and the Mayor be -- carried authorized to sign the necessary documents. PROPERTY ACQUISITION ACQUISITION OF PERMANENT EASEMENTS FOR THE NORTHWEST WATER TRANSMISSION, PHASE II. (Districts V and VI) Agenda Report No. 97-465. The Northwest Water Transmission Project, approved by Council on July 18, 1995 requires the acquisition of fifty-three easements along the Northeast side of the Missouri Pacific Railroad which runs along Zoo Boulevard from ninth street to Interstate 235. The easements needed are located in the right of way easement granted to the railroad. The adjacent owners have a reversionary right to the right of way if it is ever abandoned. To perfect title, easements are required from the adjacent owners. The owners of two of these tracts (Tract #2, and #46) have signed and returned the easement forms. The properties are more accurately described in the tract maps and legal descriptions. The owners were offered $100 for each easement as the estimated market value of the reversionary easement is minimal. This is the only railroad line that directly serves the Hutchinson area; therefore, the probability of the abandonment of the right of way is minimal. These property owners have agreed to convey the easement to the City of Wichita for the offered amount. The Budget of $250 includes $200 for the acquisition, and $50 for filing fees. Twenty one tracts have already been acquired. After the purchase of these easements, 30 will remain to be acquired through either negotiation or eminent domain. Motion -- Knight moved that the budget and the Contract be approved; and the Mayor be -- carried authorized to sign the necessary documents. PROPERTY ACQUISITION ACQUISITION OF A PORTION OF PROPERTY LOCATED AT 2838 WEST CENTRAL (TRACT #2) FOR THE CENTRAL AVENUE IMPROVEMENT PROJECT FROM WEST STREET TO MCLEAN. (District VI) Agenda Report No. 97-466. The Central Avenue Improvement Project from West Street to McLean Boulevard, approved by Council on September 17, 1996, requires the partial acquisition of two tracts along the north side of Central near St. Paul. These tracts include Tract #2 which is owned by Keith Zody. The property to be acquired is described as the south 20 feet of Lots 35 and 36, Sim Park Gardens, Wichita, Sedgwick County. The subject tract contains approximately 2,080 square feet and is developed as a Quiktrip convenience store. The tract being acquired is landscaped and is the location of the facility's sign. The property being acquired was appraised at $21,900. This amount included both the value of the land and remediation costs such as replacing landscaping, moving the sign, replacing drives, etc. Some of this work is included in the general construction project. The owner has agreed to sell the property to the City of Wichita for $13,530 or $6.50 per square foot. The 1996 Capital Improvement Program includes $50,000 to acquire the necessary right-of- way for the project along Central. The funding source is General Obligation Bonds. The budget of $13,730 includes $13,530 for the acquisition and $200 for closing costs, and title insurance. This is the second acquisition for the project. Budgeted costs to date total $16,010. Motion -- Knight moved that the budget and the Contract be approved; and the Mayor be -- carried authorized to sign the necessary documents. PROPERTY ACQUISITION ACQUISITION OF A PORTION OF PROPERTY LOCATED AT 1010 WEST MAPLE FOR THE MAPLE AND SENECA IMPROVEMENT PROJECT. (District VI) Agenda Report No. 97-467. The Maple and Seneca Improvement Project, approved by Council on August 20, 1996 requires the acquisition of twenty-two (22) partial takes. One of these tracts is Tract #9 which is owned by David A. Taylor and is more fully described on the tract map and legal description. The subject tract contains approximately 200 square feet and is improved with a office and retail building. The taking will not impact the improvements. A formal appraisal of the property was not performed; however, a value of $700 for the site was established based on market comparables and appraised values of other tracts in the project. The owner has agreed to sell the property for the indicated price. The Budget of $750 includes $700 for the acquisition, and $50 for closing costs. This is the third tract acquired for the project. After the purchase of this property, nineteen (19) will remain to be acquired through either negotiation or eminent domain. Motion -- Knight moved that the budget and the Contract be approved; and the Mayor be -- carried authorized to sign the necessary documents. PROPERTY ACQUISITION ACQUISITION OF A PORTION OF PROPERTY LOCATED AT THE NORTHWEST CORNER OF EMINENT DOMAIN UNIVERSITY AND SENECA AND 401 SOUTH SENECA FOR THE MAPLE AND SENECA IMPROVEMENT PROJECT. (District VI) Agenda Report No. 97-468. The Maple and Seneca Improvement Project, approved by Council on August 20, 1996 requires the acquisition of twenty-two (22) partial takes. Two of these tracts are Tracts #12 and #24 which are owned by the Kansas Masonic Home and is more fully described on the tract map and legal description. The subject tract contains a total of approximately 7,050 square feet and is improved with a multiple unit senior retirement center. The taking will not impact the improvements. The property was appraised by Roger Turner Company and a value of $24,674 or $3.50 per square foot was established for the taking. After negotiation, the owner has agreed to sell the property for $26, 438 or $3.75 per square foot. The Budget of $26,638 includes $26,438 for the acquisition, and $200 for closing costs. These are the fifth and sixth tracts acquired for the project. After the purchase of this property, sixteen (16) will remain to be acquired through either negotiation or eminent domain. Motion -- Knight moved that the budget and the Contract be approved; and the Mayor be -- carried authorized to sign the necessary documents. PROPERTY ACQUISITION ACQUISITION PROPERTY LOCATED AT 1306 NORTH WACO (TRACT #3) VIA EMINENT DOMAIN FOR EMINENT DOMAIN THE 13TH AND WACO INTERSECTION IMPROVEMENT PROJECT. (District VI) Agenda Report No. 97-469. The Waco and 13th Street Intersection Improvement Project, approved by Council on January 9, 1996, requires the partial acquisition of three tracts at three of the four corners of the intersection. These tracts include Tract #1 which is owned by John Davis and is described and shown on the tract map. The other two tracts have previously been acquired by the City. The subject tract contains approximately 2,400 square feet and is improved with parking for vacant retail structure that was previously utilized as a QuikTrip convenience store. The taking will avoid the structure. Staff has attempted to negotiate the purchase of this tract buy has been unable to reach any agreement with the owner. Due to the time constraints of the project, an eminent domain action is deemed advisable. Negotiations will continue during the eminent domain process. The cost of this action will be paid by the City at large. Motion -- Knight moved that the Ordinance providing for the acquisition by eminent domain of certain real property be placed on first reading and the City Attorney be directed to file the appropriate proceedings in the District Court to accomplish -- carried such acquisition. Motion carried 7 to 0. ORDINANCE An Ordinance providing for the acquisition by eminent domain of certain private property, easements, and right-of-way therein, for the purpose of improving the intersection of 13th Street and Waco Avenue and to be known as the Waco and 13th street intersection improvement project in the City of Wichita, Sedgwick County, Kansas; designating the lands required for such purposes and directing the City Attorney to file a petition in the District Court of Sedgwick County, Kansas, for acquisition of the lands, easements, and access control, therein taken and providing for payment of the cost thereof, introduced and under the rules laid over. PROPERTY ACQUISITION ACQUISITION OF A PORTION OF PROPERTY LOCATED AT 520 SOUTH SENECA FOR THE MAPLE AND SENECA IMPROVEMENT PROJECT. (District VI) Agenda Report No. 97-470. The Maple and Seneca Improvement Project, approved by Council on August 20, 1996 requires the acquisition of twenty-two (22) partial takes. One of these tracts is Tract #3 which is owned by Wiley T. and Beverly S. Clute and is more fully described on the tract map and legal description. The subject tract contains approximately 525 square feet and is improved with a single family residence. The taking will not impact the improvements. A formal appraisal of the property was not performed; however, a value of $1,050 for the site was established based on market comparables and appraised values of other tracts in the project. The owner has agreed to sell the property for the indicated price. The Budget of $1,100 includes $1,050 for the acquisition, and $50 for closing costs. This is the fourth tract acquired for the project. After the purchase of this property, eighteen (18) will remain to be acquired through either negotiation or eminent domain. Motion -- Knight moved that the budget and the Contract be approved; and the Mayor be -- carried authorized to sign the necessary documents. PROPERTY ACQUISITION ACQUISITION OF PROPERTIES (TRACTS #1 THROUGH #8, #13 THROUGH #18, #20, AND EMINENT DOMAIN #26) BY EMINENT DOMAIN FOR THE MAPLE AND SENECA IMPROVEMENT PROJECT. (District VI) Agenda Report No. 97-471. The Maple and Seneca Improvement Project, approved by Council on August 20, 1996 requires the acquisition of twenty-two (22) partial takes. To date five owners have accepted the City's offer to purchase the right-of-way. Tract maps showing the remaining takes and owners are available. Negotiations with these owners will continue during the eminent domain process. Seneca Street will be upgraded to a five lane arterial standard. Staff has attempted to negotiate the purchase of these Tracts but has been unable to reach any agreement with the owners. Due to the time constraints of the project, eminent domain action is deemed advisable. Any properties that are acquired during the process can be dropped from the ordinance. The costs of this acquisition are to be paid by the City at large. The City is authorized by law to commence eminent domain proceedings to acquire this property. Motion -- Knight moved that the Ordinance be placed on first reading and the City Attorney be instructed to file the appropriate proceedings in the District court to -- carried accomplish such acquisition. Motion carried 7 to 0. ORDINANCE An Ordinance providing for the acquisition by eminent domain of certain private property, easements, and right-of-way therein, for the purpose of improving the Seneca to be known as the Maple and Seneca Improvement project in the City of Wichita, Sedgwick County, Kansas; designating the lands required for such purposes and directing the City Attorney to file a petition in the District Court of Sedgwick County, Kansas, for acquisition of the lands, easements, and access control, therein taken and providing for payment of the cost thereof, introduced and under the rules set over. PROPERTY ACQUISITION PAYMENT OF CONDEMNATION AWARD TO ACQUIRE TWO (2) TRACTS IN CONNECTION WITH IMPROVEMENTS TO SOUTH SENECA AT ITS INTERSECTION WITH HARRY STREET. (DISTRICT IV) Agenda Report No. 97-482. On August 16, 1996, the Council authorized the acquisition by eminent domain of two tracts needed for the planned improvements to South Seneca Street at its intersection with harry Street. The portion being taken from each tract is a small triangular piece from the corner of the property closest to the intersection. Both properties are commercial. One is a donut shop and the other is a club. The takings do have an affect on the use of the remainder of the property negotiations with the owners for purchase of their interest was unsuccessful. On December 16, 1996, an eminent domain action was filed in the District court. That proceeding was concluded with the filing of the appraisers' report on June 2, 1997. The appraisers' award for the taking is $4,250.00 for the club property and $13,650.00 for the donut shop property. In addition to the award, the Court awarded each of the three appraisers the sum of $2,500.00 for appraisers' fees. Court costs are to be paid by the City in the amount of $66.50. If the City wishes to acquire this property, it must pay to the Clerk of the District Court the sum of $25,466.50 on or before July 2, 1997. This is the amount of the award, plus fees and court costs. The cost of acquiring this property will be financed by the City out of existing funds allocated for property acquisition for the South Seneca, 31st St. To Kellogg, project. So long as the City needs to acquire this property in order to construct the planned project improvements, it must pay the $25,466.50 into the Clerk of the District Court on or before July 2, 1997, or the eminent domain proceeding will be deemed and abandoned. Motion -- Knight moved that the payment to the Clerk of the district court for the appraisers' awards and related costs and fees for acquisition of two (2) tracts of land in connection with improvements to South Seneca be approved. Motion -- carried carried 7 to 0. KELLOGG AND MAIN REVISED CONTRACT FOR SALE OF PROPERTY AT KELLOGG AND MAIN. Agenda Report. On March 18, 1997, the City Council approved the sale of City owned property located at the southeast corner of Main Street and Kellogg Drive. The site contains approximately 40,000 square feet. The purchaser intended to redevelop the site with an office building. All costs of preparing the site for construction were to be born by the purchaser. During the development process, the size of the building was increased, necessitating a larger site. The purchaser, MIH, L.L.C., has offered to purchase the east half of the block, as well as the initial parcel, from the City. The initial purchased parcel contained approximately 40,160 square feet and was improved with an 1,800 square foot building which the purchaser is leasing from the City until the sale closes. The eastern part of the block contains approximately 55,000 square feet with a 10,800 square foot metal building on the southern portion. Both parcels have been marketed to the public for redevelopment. The purchaser has offered $6.85 per square foot for the combined properties. Review of market values and discussions with local brokers and the Downtown Development Corporation indicate that this is a reasonable offer for this property. The price for the initial parcel was $9.00 per square foot. The initial parcel was smaller with a superior location, both of which create a higher per square foot value. Based on a 55,000 square foot site (the exact site is to be determined by survey), sales proceeds will be $376,750. Closing costs will be split between the parties. This sale will put the parcels back on the tax rolls for private development. Motion -- Knight moved that the budget and the Contract be approved; and the Mayor be -- carried authorized to sign the necessary documents. EQUUS BEDS RECHARGE EQUUS BEDS RECHARGE DEMONSTRATION PROJECT - CHANGE ORDER NO. 3. (All Districts) Agenda Report No. 97-473. The City entered into a contract with Utility Contractors, Inc. on December 31, 1996 to do construction work for the Equus Beds Recharge Demonstration Project. This project includes the installation of facilities to withdraw both surface water and "bank storage" water from the Little Arkansas River and recharge pits and facilities to demonstrate if that water can be used to recharge the Equus Beds. The original contract amount for this project was $2,267,700. Change Order No. 1 increased the contract price by $15,603 and was approved by the City Council on March 18, 1997. Change Order No. 2 reduced the contract price by $39,749 and was approved by the City Council on April 22, 1997. The resultant contract price after these Change Orders was $2,243,553. The design of this project is intended to provide adequate facilities to evaluate the feasibility of the Equus Beds Recharge Project. In order for these facilities to be available for the spring run-off, the design was adequate and provided information for an accurate bid for the project. However, it was anticipated that some alterations would be needed after work began in the field. Change Order No. 3 includes four items as follows: 1. Additional electrical wiring that was omitted from the plans is needed to power part of the instrumentation at the Halstead recharge site, for an increased cost of $1,391. 2. The installation of two additional culverts need to be installed along one of the new pipelines. These allow the contractor to cross the road drainage ditch in order to install the 12" pipeline. These additional culverts will increase the contract price by $3,446. 3. The installation of two additional air releases on the new pipelines. This project includes the construction of five miles of pipeline. The original design only estimated the number of air releases that would be needed. Conditions found during construction require two more air relief structures than estimated, with an increased cost of $5,600. 4. The installation of electrical conduits for the instrumentation system at the control buildings. A second contract to provide and install the electronic instrumentation needed to operate the demonstration will be bid separately from this project. It is estimated that by now installing some of the conduits it would save almost 30% on the installation costs. It would not be necessary to cut through the concrete that is being installed with this project. This would increase this contract price by $7,024. Staff believes that there are no alternatives to items #1, #2 and #3. If those materials are not supplied, the project cannot be completed. Item #4 could be included in the next contract, but at a substantially higher cost. Approval of Change Order No. 3 will increase the total contract price by $17,462, and will result in a total revised contract price of $2,261,016. Funding for this project is included in the Capital Improvement Program (CIP #W-403), which has a total available funding of $3,302,000 in 1996 and 1997. This Change Order is 0.8% of the original contract amount. The new contract price is still $6,683 lower than the original contract price. Motion -- Knight moved that Change Order No. 3 with utility Contractors, Inc. in the amount of $17,462 be approved and the mayor be authorized to sign. Motion carried -- carried 7 to 0. POLICE EQUIPMENT DIGITAL DICTATION EQUIPMENT GRANT. Agenda Report No. 97-474. The Federal Bureau of Justice Assistance is sponsoring the Fiscal Year 1997 Open Solicitation Grant Program. the grant program invites law enforcement agencies to submit applications for any program that falls within one of four broad program areas. The Police Department proposes to submit an application under the "Strategies to Enhance Law Enforcement and Prosecution Coordination" program area. Currently, the Police Department uses an antiquated cassette-tape-based transcription system to dictate the narrative portion of case reports. This system is extremely inefficient and in constant need of repair. Using the current system, clerks are only able to transcribe 91% of the case reports dictated by officers each month. This leads to significant coordination problems with prosecutors, who at times must dismiss or continue cases due to a case report that has not yet been transcribed. the Police Department proposes to use grant funds to purchase a digital dictation system that will use state-of-the-art technology to improve the efficiency of the transcription process to ensure that all case reports are provided to prosecutors prior to the case going to trial. Motion -- Knight moved that the grant application be approved. Motion carried -- carried 7 to 0. SOLID WASTE OPTION PROFESSIONAL SERVICES FOR SOLID WASTE OPTION. Agenda Report No. 97-475. Sedgwick County is currently engaged in planning for future solid waste management needs on a county-wide basis. Over the next few months, the County will be examining various options available for the collection and disposal of solid waste. During the month of June/July, a series of meetings will be held on feasible approaches whereby all options will be examined. the sold Waste Planning Committee anticipates submitting its recommendations to the County commission in the latter part of July with public hearings before the County Commission to be held in August. The City Council has purchased and annexed land for possible use as a sanitary landfill. Preliminary studies of this site have been conducted to determine its feasibility as a landfill. However, to obtain a more thorough analysis for site development and costs, and to verify other information that might be useful to the Solid Waste Planning Committee and County commission, it is proposed that further study be authorized at this time. Through a competitive process, the City previously retained the services of the burns & McDonnell Waste Consulting firm. This firm has been used to preliminary evaluate solid waste management options (prior to the County assuming planning authority over the solid waste planning), as well as preliminary site assessment of the northeast land purchased for a landfill. Because of its familiarity with the solid waste issues and site, it is recommended that this firm be retained to provide additional services required to evaluate siting, costs, and other environmental considerations for landfilling options. The City is expected to prepare a proposal for the development and operation of a new landfill with related waste programs. The consultant will assist in the development of an informational base that will be required for an evaluation of this proposal. County staff will be consulted on information it feels will be required to examine more thoroughly the landfilling options. The cost of the assistance is not expected to exceed $75,000, dependent upon the amount of informational gathering and development data is required. The exact amount of the contract will be tied to the amount of work required; payment will be based on actual hours and expenses, subject to the negotiated fee contract. A supplemental contract to the existing agreement for professional services will be required. the contract will be drafted and approved by the City Attorney's office. Motion -- Knight moved that Staff be authorized to negotiate a a supplemental agreement with Burns & McDonnell Waste Consultants, Inc., for the development of landfill -- carried information and the Mayor be authorized to sign. Motion carried 7 to 0. STREET LIGHTING STREET LIGHTING RESOLUTION NO. 2-97. RESOLUTION NO. R-97-145 A Resolution authorizing and directing Kansas Gas and Electric, a Western Resources Company, to install or change certain street lights in the City of Wichita, Kansas, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cole, Ferris, Gale, Kamen, Lambke, Rogers, Knight. AIRPORT AUTHORITY AIRPORT AUTHORITY CAPITAL IMPROVEMENT PROGRAM AMENDMENT - AIRFIELD SERVICE ROAD. Agenda Report No. 97-476. The project is Airfield Service Road which will involve the realignment of a maintenance road as recommended in a Part 139 inspection by the Federal Aviation Administration (FAA). Subject to concurrence by the FAA, this project will begin immediately and have an estimated construction completion date of November 8, 1997. It is anticipated that this project will be funded 90% ($400,500) by the FAA while the matching 10% ($44,500) may be funded by City of Wichita General Obligation Bonds. Motion -- Knight moved that the amendment to the 1996-2005 CIP to allow for the addition of said project in the amount of $445,000 be approved and the Resolution be adopted. -- carried Motion carried 7 to 0. RESOLUTION NO. R-97-146 A Resolution declaring that a public necessity exists for, and that the public safety, service, and welfare will be advanced by, the making of certain capital improvements to the Wichita Mid-Continent Airport Facility operated by the Wichita Airport Authority of the City of Wichita, Kansas, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cole, Ferris, Gale, Kamen, Lambke, Rogers, Knight. AIRPORT AUTHORITY AIRPORT AUTHORITY CAPITAL PROJECT INITIATION - HIGH VOLTAGE CABLE REPLACEMENT. Agenda Report No. 97-477 The project is High Voltage Cable Replacement and represents improvements that will be made to Mid-Continent Airport subject to further action and approval by the wichita airport Authority. The project has been included in a Capital Improvement Program of the City of Wichita. Details regarding the project are disclosed in the Project Finance Proposal. This action approves only the intent to use City of Wichita bonding authority in the future and does not specifically authorize the issuance of debt nor does it preclude the use of any substitute funding source. The total cost for the capital improvements, based on the best present information, is $195,000 (an increase of $45,000). Motion -- Knight moved that the Supplemental Resolution be adopted. Motion carried -- carried 7 to 0. RESOLUTION NO. R-97-147 A supplemental Resolution declaring that a public necessity exists for, and that the public safety, service, and welfare will be advanced by, the making of certain capital improvements to the Wichita Mid-Continent Airport Facility operated by the Wichita Airport Authority of the City of Wichita, Kansas, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cole, Ferris, Gale, Kamen, Lambke, Rogers, Knight. CONDEMNATION REPAIR OR REMOVAL OF DANGEROUS & UNSAFE STRUCTURES. Agenda Report # 97-478. On April 7, 1997 the Board of Code Standard (BCSA) held a hearing on three (3) properties. One property has been demolished by the owner. The remaining two properties are considered dangerous and unsafe structures, and are being presented to schedule a condemnation hearing before the Governing Body. Improvement notices have been issued on these structures, however, compliance has not been achieved. Pre-condemnation and formal condemnation letters were issued and the time granted has expired. No action has been taken to repair or remove the structures. Property Address Council District (1) 2146 N. Topeka 6 (2) 2920 n. Jackson 6 On April 22, 1997, Resolutions setting the public hearing for June 3, 1997, before the City Council were adopted. The Resolutions were not properly published as required by State Statue. Resolutions setting a new public hearing date need to be adopted. Motion -- Knight moved that the Resolutions to place this matter on the agenda for a Hearing before the Governing body on July 15, 1997 be adopted. Motion -- carried carried 7 to 0. RESOLUTION NO. R-97-140 A Resolution fixing a time and place and providing for notice of a hearing before the Governing Body of the City of Wichita, at which the owner, his agent, lienholders of record and occupants of the structure located on land described as: Lots 11, 13, and 15, on Topeka, together with the south half of vacated alley adjacent to said Lot 11, on the north, Union Addition to Wichita, Sedgwick County, Kansas, known as 2146 North Topeka, in said City may appear and show cause why such structure should not be condemned and ordered repaired or demolished as a dangerous or unsafe structure, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cole, Ferris, Gale, Kamen, Lambke, Rogers, Knight. RESOLUTION NO. R-97-141 A Resolution fixing a time and place and providing for notice of a hearing before the Governing Body of the City of Wichita, at which the owner, his agent, lienholders of record and occupants of the structure located on land described as: Lot 8, F.C. Steck Addition to Wichita, Sedgwick County, Kansas, known as 2920 North Jackson in said City may appear and show cause why such structure should not be condemned and ordered repaired or demolished as a dangerous or unsafe structure, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cole, Ferris, Gale, Kamen, Lambke, Rogers, Knight. EXPO HALL RENOVATION EXPO HALL AND CENTURY II INTERIOR RENOVATION. (District VI) Agenda Report No. 97-479 On April 15, 1997 the City Council approved an additional $400,000 in funding to complete the interior renovations to Expo Hall, bringing the total budget for Century II and Expo Hall combined renovation to $2,000,000. A revised Resolution is needed. Source of funding is cash reserves in the Tourism and Convention fund (guest tax revenues). Motion -- carried Knight moved that the Revised Resolution be adopted. Motion carried 7 to 0. RESOLUTION NO. R-97-148 A Resolution amending Resolution No. R-96-397 for interior renovation at Expo Hall and Century II convention Center by increasing the bonding authority in Section 1 thereof from $1,600,000 to $2,000,000, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cole, Ferris, Gale, Kamen, Lambke, Rogers, Knight. IRB RANDOM AUDIT IRS REQUEST FOR DISCLOSURE AUTHORIZATION; IRB SERIES VIII, 1991. Agenda Report No. 97-480. In March of this year, the City received notification that, as part of a national random audit program, the City of Wichita IRB Series VIII, 1991, bond issue had been randomly selected to check the compliance of the bond issue against a myriad of technical requirements applicable to qualified small-issue industrial development bonds. The auditor has obtained Bond Transcript information from the City, and toured the Chance manufacturing facilities with Chance's general counsel and Assistant City Attorney Brian McLeod. The auditor has now reached a point in her work where the remainder of the information necessary to complete the audit will need to be obtained from records of the Tenant business and/or the Bond Trustee. Because the City is technically the "taxpayer" under audit, federal statutes prevent the IRS from directly contacting the Tenant or Bond Trustee about issues in the audit without the consent of the City. The Disclosure Authorization form is the form used by the IRS to obtain permission to contact Bond Trustees and Tenants in IRB-related audits. If the City did not execute and return the form, the impact would be that the IRS would have to request all information from the City, and City staff would then have to obtain it from the Tenant or Bond Trustee using the City's rights under the Bond Indenture and Lease. In short, the IRS would ultimately obtain the same information, but everything would take longer, due to all requests being routed through the City. The IRB Tenant has requested the City to go ahead and consent to the IRS request, in order to expedite this audit. The Tenant's representatives believe they can provide all necessary documentation to satisfy IRS as to all relevant matters, and would like to do so as expeditiously as possible. There will be no costs to the City beyond that of mailing in the executed form. Motion -- Knight moved that the City Manager be authorized to execute, and Staff be authorized to deliver, the Disclosure Authorization form requested by IRS in conjunction with the random audit of IRB Series VIII, 1991 (Richard G. Chance -- carried d/b/a Chance Properties). Motion carried 7 to 0. (Item No. 31) APPROVAL TO ACQUIRE LAND AT THE VICINITY OF KELLOGG AND MAPLE. This Item was stricken from the Agenda. ORDINANCES Second Reading Ordinances. (First Reading 5/20/97) a. Special Assessment - Hardship Deferral - Sewer System. ORDINANCE NO. 43-491 An Ordinance amending Section 16.14.041 of the Code of the City of Wichita, Kansas, pertaining to payments of plant