MINUTES OF THE MEETING OF THE CITY COUNCIL Wichita, Kansas, April 16, 2002 Tuesday, 9:06 A.M. The City Council met in regular session with Mayor Knight in the Chair. Council Members Brewer, Fearey, Gale, Lambke, Martz, Pisciotte, present. Chris Cherches, City Manager; Gary Rebenstorf, Director of Law; Pat Burnett, City Clerk; present. Ashok Aurora, Hindu, gave the invocation. The pledge of allegiance to the flag was participated in by the Council Members, staff, and guests. Minutes -- approved The Minutes of the regular meeting of April 9, 2002, were approved 6 to 0. (Lambke absent) AWARDS AND PRESENTATIONS -- MINI MPA President Beggs, Wichita State University, presented WSU Mini-MPA Program Certificates. -- RECOGNITION Friends University Student Ambassadors to Cancun were recognized. -- RECOGNITION Irving School Students were recognized for the 2002 Growing Together Tree Project. -- PROCLAMATIONS Proclamations previously approved were presented. PUBLIC AGENDA Liz Hicks, President Wichita NOW - Equal Pay Liz Hicks Liz Hicks, President of Wichita Now, asked the City Council to encourage local businesses to examine their salary scales for gender discrepancies. Peggy Ride - Advocate for the Mentally Ill Peggy Ride Peggy Ride, Advocate for the Mentally Ill, spoke regarding the plight of the Mentally ill in the community; and asked the City Council to give assistance to her quest for status information on the mentally ill. UNFINISHED BUSINESS FESTIVAL ORDS. CONSIDERATION OF PROPOSED FESTIVAL ORDINANCES. (Continued from April 9, 2002) Motion -- carried Knight moved that this Item be deferred. Motion carried 6 to 0. (Lambke absent) TAFT ASSESSMENTS PUBLIC HEARING ON PROPOSED ASSESSMENTS FOR PROJECTS IN JULY 2002 BOND SALE SERIES 770. (Continued from April 2, 2002) Mike Lindebak City Engineer reviewed the Item. a) (490-735/765624/472-83193) - Improving of Taft Court, from the north line of Taft to and including the cul-de-sac (south of Maple, east of 119th Street West). (District V) Mayor Knight Mayor Knight inquired whether anyone wished to be heard and no one appeared. Motion -- Martz moved that the public hearing be closed, the proposed Assessments be approved; the Declaration of Emergency be approved and the necessary signatures be authorized; and the Ordinance be adopted -- carried on first reading. Motion carried 6 to 0. (Lambke absent) ORDINANCE NO. 45- 301 An Ordinance levying assessments on lots, pieces, and parcels of land in the City of Wichita, of paying a portion of the cost of improving - Improving of Taft Court, from the north line of Taft to and including the cul-de-sac (south of Maple, east of 119th Street West), adopted on first reading. Martz moved that the Declaration of Emergency be approved and the necessary signatures be authorized; and the Ordinance be placed upon its passage and adopted on first reading. Motion carried 6 to 0. (Lambke absent) Yeas: Brewer, Fearey, Gale, Martz, Pisciotte, Knight. (Lambke absent) 1438 S. MAIN REPAIR OR REMOVAL OF DANGEROUS AND UNSAFE STRUCTURE - 1438 SOUTH MAIN. (District I) (Previous Council action -February 5, 2002) Kurt Schroeder Superintendent of Central Inspection reviewed the Item. Agenda Report No. 02-0093A. The dangerous/unsafe building at 1438 South Main was first before City Council on February 5, 2002. No one appeared, and the City Council adopted a Resolution giving the owner 10 days to start demolition, then 10 days to complete. Failing such action by the owner, the Office of Central Inspection was authorized to proceed with demolition/removal of the structure. No action has been taken by the property owner to repair the structure or demolish or repair the structure. The Office of Central Inspection (OCI) was authorized proceed with condemnation action. On March 22, 2002, the OCI staff received a call from the asset manager for MorEquity/American General Finance Corporation, which is the current owner of the property. MorEquity has obtained the property through foreclosure action. After reviewing details of the case, delinquent taxes owed, other pending assessments and City Council Policy #33 with the asset manager, the Superintendent of Central Inspection asked to send a letter outlining the owner's plans for the property, and formally requesting that the City Council reconsider this case. On April 4, 2002, the Office of Central Inspection received the requested letter. After review of this request with the City Manager, action on the demolition was suspended until the City Council could reconsider its prior action in light of this new request Property taxes for 2001 are delinquent in the approximate amount of $350; there is a pending weed mowing/lot cleanup assessment due in the amount of approximately $145. In February, asbestos surveys were ordered by OCI, and were subsequently completed for a total cost of $310. The City administrative and out-of-pocket expenses have not yet been added to this total amount due from this housing case. The structure has been sent to the City's demolition contractor but has been placed on hold until the City Council has had an opportunity to further review this case. Pursuant to Sate Statute, required resolutions for the February 5, 2002 hearing were published twice on December 19 and 26, 2001. The City Council Resolution ordering demolition of the property was published on February 16, 2002. Mayor Knight Mayor Knight inquired whether anyone wished to be heard and no one appeared. Motion -- Brewer moved that 14 days be given to pay the taxes current; and 60 days be given to complete repairs. Any extension of time granted to repair the structure should be conditioned on the following: (1) all delinquent real estate taxes and pending City assessments, including the City's out-of-pocket administrative costs have been paid in full as of April 17, 2002; (2) the structure is fully secured and will be kept fully secured and properly maintained; (3) the exterior premise is mowed and free of debris as of April 17, 2002; and (4) all conditions of Policy #33 are met. Failing any of the above, OCI will -- carried proceed with condemnation action. Motion carried 6 to 0. (Lambke absent) RESOLUTION NO. 02-206 Resolution finding that the structure described as: Lots 28 and 30, Main Street, Boston Avenue Addition to Wichita, Sedgwick County, Kansas, commonly known as 1438 South Main, Wichita, Kansas, is unsafe or dangerous and directing the structure(s) to be made safe and secure or removed, read. Brewer moved that the Resolution be adopted. Motion carried 6 to 0. Yeas: Brewer, Fearey, Gale, Martz, Pisciotte, Knight. (Lambke absent) NEW BUSINESS IRB - BIG DOG REQUEST FOR LETTER OF INTENT FOR TAXABLE INDUSTRIAL REVENUE BONDS - BIG DOG MOTORCYCLES, L.L.C. (District I) Allen Bell Financial Projects Director reviewed the Item. Agenda Report No. 02-1285. On October 19, 1999, City Council approved the issuance of Industrial Revenue Bonds in the amount of $2 million, and granted a five-plus-five-year 100% tax exemption on all bond-financed property to Big Dog Motorcycles, L.L.C. Proceeds from the bond issue were used to acquire, refurbish and equip the former Quality Chevrolet facility at 1520 East Douglas in central Wichita. Big Dog Motorcycles is now requesting the City to issue a six-month Letter of Intent for IRBs in an amount of $800,000 to finance an expansion of that facility. The company also requests a ten-year 100% property tax exemption on the new IRB financed property. Big Dog Motorcycles, L.L.C. was founded in Wichita 1992. Big Dog is owned by Waterview Realty, L.L.C., which is 100% owned by Waterview Holdings, L.L.C. Waterview Holdings is a holding company owned by CD Investment Partners, L.P., the Coleman family's investment partnership. The partnership consists of various Coleman family Trusts, with Mr. Sheldon Coleman serving as CEO. Big Dog Motorcycles originated as a small shop performing custom work for Harley Davidson motorcycles. Over the years, Big Dog has developed its own product designs and has become a licensed manufacturer of high end, quality cruiser motorcycles. The business has expanded and currently has 50 dealers around the country. The proposed facility will be an addition to Big Dog's corporate headquarters and main manufacturing plant located on east Douglas. The expansion will be located on land already owned by Big Dog. The expansion will consist of approximately a 20,000 s.f. warehouse building. This addition will create space for additional offices and manufacturing activities in the existing plant. The warehouse will be used for motorcycle storage, parts storage and a shipping area for finished goods. The majority of the Big Dog sales are exported outside of the State of Kansas. When bonds were issued in 2000, Big Dog made a commitment to create 35 new jobs in five years, in conjunction with the previous project. Big Dog has exceeded their commitment and has added an additional 30 new jobs. In conjunction with the current improvement project, Big Dog plans to add 29 new jobs to their current employment within five years. An analysis of the uses of project funds is: USES OF FUNDS Warehouse Costs $ 650,000 Other Improvements 80,000 Furniture, Fixtures & Equipment 50,000 Costs of Issuance 20,000 Total Cost of Project: $ 800,000 The firm of Hinkle Elkouri, L.L.C. will serve as bond counsel in the transaction. The taxable bonds will be privately placed. Big Dog Motorcycle agrees to comply with the Standard Conditions contained in the City's IRB Policy. Wichita State University Center for Economic Development and Business Research performed a cost-benefit analysis. The resulting benefit-cost ratios are: City 2.60 to 1 County 2.15 to 1 U.S.D 259 2.51 to 1 State 29.16 to 1 Big Dog Motorcycles 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. As a corporate headquarters, Big Dog Motorcycles qualifies for a five-plus-five-year 100% property tax exemption on property financed with bond proceeds. Council Member Lambke left the Bench. Mayor Knight Mayor Knight inquired whether anyone wished to be heard. John Reif John Reif said the new addition will free existing space and allow hiring of additional employees. Motion -- Brewer moved that a six-month Letter of Intent to Big Dog Motorcycles, L.L.C. for Industrial Revenue Bonds in an amount not-to-exceed $800,000 be approved, and a five-plus-five-year 100% tax exemption on all portions of the proposed project be granted, subject to Standard Letter of Intent -- carried conditions; the necessary signatures be authorized. Motion carried 6 to 0. (Lambke absent) IRB - COX EXTENSION OF LETTER OF INTENT FOR INDUSTRIAL REVENUE BONDS - COX COMMUNICATIONS, INC. Allen Bell Financial Projects Director reviewed the Item. Agenda Report No. 02-1286. On October 16, 2001, the City Council approved a six-month Letter of Intent to issue Industrial Revenue Bonds in an amount not-to-exceed $6,645,000, and a 50% five-year tax exemption on property purchased with bond proceeds to Cox Communication, Inc. The bond proceeds were used to finance the cost of acquiring, constructing and equipping a new 35,000 sf single story call center facility to be located on 35th St. North in the Comotara Industrial Park. The project will serve as the primary call center for the entire Cox Kansas cable and telecommunications system. Cox Communication has requested a six-month extension to the term of the Letter of Intent. Cox Communication has requested the extension because construction of the project is nearly complete; however, it does not appear that cost and expenses associated will be finalized prior to the date the Letter of Intent expires. The company is now requesting an extension of six-months of the Letter of Intent until September 16, 2002. There is no financial impact on the City resulting from the requested extension. Mayor Knight Mayor Knight inquired whether anyone wished to be heard and no one appeared. Motion -- Pisciotte moved that extension of the Letter of Intent to Cox Communications, Inc. for Industrial Revenue Bonds in an amount not-to-exceed $6,645,000, and a 50% five-year tax exemption on property purchased with bond proceeds for six-months ending September 16, 2002, be approved. Motion carried -- carried 6 to 0. (Lambke absent) CONDEMNATIONS REPAIR OR REMOVAL OF DANGEROUS AND UNSAFE STRUCTURES: Kurt Schroeder Superintendent of Central Inspection reviewed the Item. Agenda Report No. 02-1287. On March 5, 2002 a report was submitted with respect to the dangerous and unsafe conditions on six (6) properties. One property has since been repaired. The Council adopted resolutions providing for a public hearing to be held on these condemnation actions at 9:30 a.m. or as soon thereafter, on April 16, 2002. On February 12, 2002, the Board of Code Standards and Appeals (BCSA) held a hearing on the following properties: Property Address Council District 1. 1902 North Spruce I 2. 805 North Edwards VI 3. 350 North Richmond VI 4. 1838 South Topeka III 5. 608 West Pawnee III Pursuant to State Statute the Resolutions were duly published twice on March 6, 2002 and March 13, 2002. A copy of each resolution was sent by certified mail or given personal service delivery to the owners and lien holders of record of each described property. Mayor Knight Mayor Knight inquired whether anyone wished to be heard and no one appeared on Items 2, 3, and 5. Motion -- Knight moved that the public hearing be closed on Items 1, 2, 3, and 5; Item 1 be deferred to May 7, 2002; for Items 2, 3, and 5, the Resolutions declaring the buildings dangerous and unsafe structures be adopted, and the BCSA recommended action to proceed with condemnation allowing 10 days to start demolition and 10 days to complete removal of the structure be accepted. Any extensions of time granted to repair the structure would be conditioned on the following: (1) All taxes have been paid to date, as of April 16, 2002; (2) the structure(s) has/have been secured as April 16, 2002,and will continue to be kept secured, and (3) the premises are mowed and free of debris as of April 16, 2002,and will be -- carried` maintained during renovation. Motion carried 6 to 0. (Lambke absent) RESOLUTION NO. 02-200 A Resolution finding that the structure located on the North 75 feet of the south 150 feet of Lot 1, Block 1, Riverside Health System Third Addition, Sedgwick County, Kansas, commonly known as 805 North Edwards, Wichita, Kansas, is unsafe or dangerous and directing the structure(s) to be made safe and secure or removed, read. Gale moved that the Resolution be adopted. Motion carried 6 to 0. (Lambke absent) Yeas: Brewer, Fearey, Gale, Martz, Pisciotte, Knight. RESOLUTION NO. 02-201 A Resolution finding that the structure located on Lots 14 and 28, J.O. Davidson's Second Addition to Wichita, Sedgwick County, Kansas, commonly known as 350 North Richmond, Wichita, Kansas, is unsafe or dangerous and directing the structure(s) to be made safe and secure or removed, read. Gale moved that the Resolution be adopted. Motion carried 6 to 0. (Lambke absent) Yeas: Brewer, Fearey, Gale, Martz, Pisciotte, Knight. RESOLUTION NO. 02-203 A Resolution finding that the structure located on Lot 16, Halls Addition to Wichita, Sedgwick County, Kansas, commonly known as 608 West Pawnee, Wichita, Kansas, is unsafe or dangerous and directing the structure(s) to be made safe and secure or removed, read. Gale moved that the Resolution be adopted. Motion carried 6 to 0. (Lambke absent) Yeas: Brewer, Fearey, Gale, Martz, Pisciotte, Knight. (4) 1838 South Pawnee Kurt Schroeder Superintendent of Central Inspection reviewed the Item. Staff recommendation is 14 days to pay taxes (including special assessments) current, and 60 days to complete repairs. Mayor Knight Mayor Knight inquired whether anyone wished to be heard. Donna Reichenberger Donna Reichenberger, representing the new owner, said the title is clear. Work will start on structural repairs as soon as the contractor can get permits. Motion -- Knight moved that the public hearing be closed; the Resolution declaring the building dangerous and unsafe structures be adopted, and the Staff recommended action to give 14 days to pay taxes (including special assessments) current; and 60 days to complete repairs be accepted. Any extensions of time granted to repair the structure would be conditioned on the following: (1) All taxes have been paid to date, as of April 16, 2002; (2) the structure(s) has/have been secured as April 16, 2002,and will continue to be kept secured, and (3) the premises are mowed and free of debris as of April 16, 2002,and will be -- carried` maintained during renovation. Motion carried 6 to 0. (Lambke absent) RESOLUTION NO. 02-202 A Resolution finding that the structure located on South 1/2, Lot 1, Topeka Avenue, Tuller's Addition, Wichita, Sedgwick County, Kansas, commonly known as 1838 South Topeka, Wichita, Kansas, is unsafe or dangerous and directing the structure(s) to be made safe and secure or removed, read. Gale moved that the Resolution be adopted. Motion carried 6 to 0. (Lambke absent) Yeas: Brewer, Fearey, Gale, Martz, Pisciotte, Knight. ELECTION ORD. CONSIDERATION OF REPEALING OR AMENDING THE PROPOSED REGIONAL EVENTS FACILITY ELECTION ORDINANCE. Agenda Report No. 02-1288. On April 2, 2002, City Council approved Ordinance No. 45-243, calling a special election on May 21, 2002, concerning a ballot question to impose a local sales tax for certain purposes, including funding a rebate program for City and Countywide sales tax collected on sales of new and used automobiles within the City. Currently, there is state legislation pending which, if passed, would effectively fulfill the purpose of the proposed rebate program so that the rebate feature could be removed from the ballot question and the period of the proposed tax accordingly shortened from thirteen years to eight years. The Sports Commission has requested a change in the ballot question, and the local car dealers' association has requested the election be put off until the outcome of the pending state legislation is known. The County Election Officer has indicated she must know the content of any change in the ballot question by April 22, 2002. Accordingly, to either change the ballot question or postpone the election until the outcome of state legislation is known, the City Council must take emergency action today. If the City Council passes the ordinance substituting the revised ballot question, removal of the rebate feature will allow the period of the tax to be reduced from thirteen to eight years. The Sports Commission voted to ask the City Council to move the election to coincide with the August 2002 primary election. George Fahnestock George Fahnestock asked the City Council to reschedule the election to coincide with the August 6, 2002, Primary Election. The delay will provide more time for community consideration and for the State Legislature to take up the taxing issue. Mayor Knight Mayor Knight inquired whether anyone wished to be heard. Gary Wright Gary Wright asked that the referendum be held in conjunction with the November General Election when the voter turnout would be higher. The longer delay would allow even more time for public consideration. Motion -- Knight moved that the Election be deferred to August 6, 2002. Motion, with consent of the second, -- withdrawn withdrawn. Motion -- Pisciotte moved that the Declaration of Emergency be approved, the necessary signatures be authorized, and the Ordinance repealing Ordinance No. 45-243 be adopted on first reading; and the Ordinance calling a special election for August 6, 2002, (primary election date) on the question of imposing a 1/2 percent city-wide sales tax, and the use thereof, for the purpose of constructing, operating, and establishing, operating, and maintenance reserves for a Regional Sports and Entertainment Center, and providing for certain rebate and allowance programs, be placed on first reading. Motion carried 6 to 0. -- carried Lambke absent. ORDINANCE NO. 45-302 An Ordinance of the City of Wichita, Kansas, repealing Ordinance No. 45-243 of said City, adopted on first reading. Pisciotte moved that the Declaration of Emergency be approved, the necessary signatures be authorized, and the Ordinance repealing Ordinance No. 45-243 be adopted on first reading. Motion carried 6 to 0. (Lambke absent) Ayes: Brewer, Fearey, Gale, Martz, Pisciotte, Knight. ORDINANCE An ordinance of the City of Wichita, Kansas, providing for the calling of an election on the question of imposing a one-half percent (.50%) citywide retailers' sales tax to be effective January 1, 2003, for a term of thirteen years, for the purposes of 1) financing the construction and operation of a Regional Sports and Entertainment Center and renovations to the Kansas Coliseum, including provision for the payment of any general obligation or revenue bonds backed by a pledge of citywide retailers' sales tax revenues and issued for such purposes and the funding of reserves for maintenance and operating costs of such facilities, 2) paying, on a basis subordinate to payment of debt service on any bonds, the costs of a program established under a separate ordinance of the city for rebate of a portion of the citywide retailers' sales tax paid by qualified senior citizens, 3) paying, on a basis subordinate to payment of debt service on any bonds, the costs of a program established under a separate ordinance of the city for rebate of the citywide retailers' sales tax and an allowance equal to the countywide retailers' sales tax collected on the sales price of any new or used automobile sold within the City of Wichita by an automobile dealer, and 4) paying, on a basis subordinate to payment of debt service on any bonds, the costs of infrastructure improvements related to the regional sports and entertainment center and costs associated with youth sports programming and facilities in the city; stating the purpose for which the revenues generated by such citywide retailers' sales tax are to be used; and stating the time of the election therefore; authorizing and providing for the calling of such election to be held in the City of Wichita on Tuesday, August 6, 2002, for the purpose of submitting to the qualified electors of the City the proposition of enacting such citywide retailers' sales tax, introduced and under the rules laid over. 2001 CAFR 2001 COMPREHENSIVE ANNUAL FINANCIAL REPORT. Ray Trail Director of Finance reviewed the Item. Agenda Report No. 02-1289. Kansas state law requires an annual audit of all City accounts to be performed by an independent certified public accounting firm at least annually. Additionally, an audit of the City's federal forfeiture program is required by the Bureau of Justice each year. The Comprehensive Annual Financial Report and the report on compliance required by the Bureau of Justice are for the year ended December 31, 2001. The City's Comprehensive Annual Financial Report (CAFR) is designed to provide information needed by interested parties to gain a fair understanding of the government's financial position, results of operations and cash flows. The independent certified public accounting firm of Allen, Gibbs & Houlik, L.C. issued their opinion that the general purpose financial statements present fairly, in all material respects, the financial position of the City as of December 31, 2001, and the results of its operations and the cash flows of its proprietary fund types and component units in conformity with generally accepted accounting principles. The Wichita Public Building Commission and the Wichita Airport Authority are considered component units and have been appropriately reflected in the financial statements as part of the financial reporting entity. The Government Finance Officer's Association (GFOA) of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report for the year ended December 31, 2000. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR, with content that conforms to program standards. Staff believes that the 2001 CAFR continues to meet GFOA standards for certification and the City has applied for this recognition. Kansas law requires an annual audit of City financial records by a certified public accounting firm (K.S.A. 75-1122) in accordance with the minimum standard audit program (K.S.A. 75-1123). Mark Dick Mark Dick, Allen, Houlik and Gibbs, reviewed Audit findings, and said there were no significant changes in the accounting method of the City, no significant adjustments to City records, no significant or sensitive estimates had to be made with accounting numbers, no disagreements with management, and no difficulties during the Audit. Mayor Knight Mayor Knight inquired whether anyone wished to be heard and no one appeared. Motion -- Knight moved that the Comprehensive Annual Financial Report and the Independent Accountants' report regarding compliance with administration of the Department of Justice Forfeiture Program for -- carried the year ended December 31, 2001, be received and filed. Motion carried 6 to 0. (Lambke absent) GOLDEN RULE AWD. GOLDEN RULE AWARD. Chris Cherches City Manager reviewed the Item. Agenda Report No. 02-1290. Last Fall, the City Council established a Kindness Week to recognize individuals who have exhibited acts of kindness in the City. The Mayor proposed that the City Council establish a continuing program to pay tribute to those persons who have been nominated by individuals/organizations that by their acts of civility, kindness and respect to others, bring distinction to themselves and credit to the community. The City currently has four (4) special awards and/or recognitions given to individuals and businesses. The proposed award, Golden Rule Award, will be established to recognize citizens who have been nominated/selected and have exhibited the highest respect for themselves and others (within the community) by their actions, volunteer their time for the betterment of the community, treatment of others with civility, respect, friendliness, and generosity, and who practice courtesy, good-will and human kindness toward others and who bring credit to the City, to their place of employment, or organization/association, they serve. This award/recognition may be presented throughout the year, depending upon nominations/selections, but no more frequently than monthly. The City Council has the authority to establish such awards. Currently, there is no budgeted allocation for this additional award. If approved, the funding to support this award (mailings, plaques, etc.) will be incorporated in the revised 2002 budget. An annual cost of $420 is projected to support this award program. Mayor Knight Mayor Knight inquired whether anyone wished to be heard and no one appeared. Motion -- Knight moved that implementation of Award Program be approved; and establishment of necessary -- carried funds be authorized. Motion carried 6 to 0. (Lambke absent) Mayor Knight left the Bench; Vice Mayor Martz in the Chair. ADDENDUM ITEM 11A CENTRAL/HILLSIDE AMENDMENT TO DEVELOPMENT AGREEMENT. Allen Bell Financial Projects Director reviewed the Item. Agenda Report No. 02-1317 On February 5, 2002, the City Council approved the development agreement with Starr Holdings, LLC for the redevelopment of the Central and Hillside Redevelopment Project Area. Under the agreement, the City agrees to purchase land for the development of a hotel, to provide TIF funds for one-fourth the cost of demolishing the existing office building, to build a box culvert to replace the existing open drainage ditch, and to provide $70,000 in TIF funds for use by the developer in constructing a screening wall and other site improvements. The developer agrees to demolish the existing office building and construct a Walgreens drug store and a strip shopping center, and to undertake all needed site improvements. Since that time, the developer has taken bids on the demolition of the office building and the City has engaged a consultant and completed design of the box culvert. As a result, the cost of demolition has been reduced by over $300,000 and the cost of building the box culvert has been increased by a similar amount. In order to reduce the cost of the overall project, City staff and the developer have tentatively agreed to an amendment of the development agreement which would make the developer responsible for building the box culvert and allow him to use TIF savings from the demolition project and reprogram a portion of the $70,000 allowance for fencing and site improvements. The developer's original estimate of $400,000 for the construction of the box culvert was used in the TIF feasibility study, as was the estimated cost of $600,000 for demolition of the office building at Central and Hillside. The actual cost of demolition is $257,234, resulting in a savings of $342,766. The City's share of the savings is $85,691.50. The engineers' estimate of the total box culvert cost is $653,800. The developer has agreed to build the box culvert for $511,000 total cost to the City if the City will allow him to use the $85,691.50 TIF savings from the demolition project and $26,108.50 from the TIF funds for fencing and site improvements. In the amendments to the development agreement, the developer commits to use whatever private funding is required to build the screening wall to original standards and specifications and to undertake all site improvements, including landscaping, originally intended for the project, as presented to area neighborhood associations. The proposed amendments do not increase City funding for the Central and Hillside Redevelopment Project. Under the original agreement, the City would have been responsible for the full cost of the box culvert. Therefore, the proposed amendments potentially save the City approximately $142,000. In addition to amending the development agreement, it is necessary to adopt a new bonding resolution to move the City TIF funding under the development agreement. It had previously been approved as a public works project. Vice Mayor Martz Vice Mayor Martz inquired whether anyone wished to be heard and no one appeared. Motion -- Brewer moved that the proposed amendments to the Central and Hillside Redevelopment Project and Agreement be approved; the bonding Resolution be adopted; and the necessary signatures be -- carried authorized. Motion carried 5 to 0. (Lambke, Knight - absent) RESOLUTION NO. 02-207 A Resolution authorizing the issuance of Full Faith and Credit Tax Increment Bonds of the City of Wichita, Kansas to pay all or a portion of the costs of acquiring of real property, demolition of existing structures, and design and construction of an underground stormwater drainage system, a signalized pedestrian crosswalk, paving, fencing, landscaping and site improvements at the Central & Hillside Redevelopment Project Area, presented. Brewer moved that the Resolution be adopted. Motion carried 5 to 0. Yeas: Brewer, Fearey, Gale, Martz, Pisciotte. (Lambke, Knight - absent) CITY COUNCIL AGENDA APPOINTMENTS BOARD APPOINTMENTS. There were no appointments made. CONSENT AGENDA Martz moved that the Consent Agenda be approved as consensus Items. Motion carried 5 to 0. (Lambke, Knight- absent) BOARD OF BIDS REPORT OF THE BOARD OF BIDS AND CONTRACTS DATED APRIL 15, 2002. Bids were opened April 12, 2002, pursuant to advertisements published on: 2002 Contract maintenance raising and undersealing concrete slabs - north of 47th Street South, east of Hoover. (472-83516/132712/132712) Traffic to be maintained during construction using flagpersons and barricades. (Districts III, IV & V) Uretek USA, Inc. - $119,990.00 (Engineer's estimate) Lateral 23, Main 13, War Industry Sewer to serve Premier Addition - north of Kellogg, west of Greenwich. (468-83239/743921/480609) Does not affect existing traffic. (District II) - $46,000.00 McCullough Excavating - $30,700.00 Lateral 6, Main 17, Southwest Interceptor Sewer to serve Forest Lakes Addition (north of 29th Street North, west of Ridge) (468-82304/743918 /480606) Does not affect existing traffic; Lateral 384, Southwest Interceptor Sewer to serve Forest Lake West Addition (north of 29th Street North, east of Tyler) (468-82769/743919/480607) Does not affect existing traffic; AND Lateral 385, Southwest Interceptor Sewer to serve Forest Lake West Addition - north of 29th Street North, east of Tyler. (468-82770/743920 /480608) Does not affect existing traffic. (District V) K C Excavating - $99,342.00 (Total aggregate bid) Storm Water Drain 99 to serve part of Forest Lakes Addition - north of 29th Street North, west of Ridge Road. (468-82311/751315/485206) Does not affect existing traffic AND Storm Water Drain 132 to serve Forest Lake West Addition (north of 29th Street North, east of Tyler) (468-82771/751316/485207) Does not affect existing traffic. (District V) Pearson Excavating - $265,041.70 (Total aggregate bid) 26th Street North from the east line of the drainage canal to the west line of Market, Aley from the west line of Fairview to the west line of Market and from the east line of Market to the west line of Broadway and Burnett from the east line of the drainage canal to the west line of Market and from the east line of Market to the west line of Broadway, to serve North Lawn Addition, Buckeye Addition, Gardner's Addition, Aley Park Addition - west of Broadway, south of 29th Street North) (472-83301/765662/ 490773) Traffic to be maintained during construction using flagpersons and barricades. (District VI) Cornejo & Sons Construction - $388,381.75 WATER & SEWER DEPARTMENT/SEWAGE TREATMENT DIVISION: Tractor P.T.O. HP Rubber Tired Tractor with Flail Mower. (184754) Wichita Tractor Company - $30,524.00 (Group 1/total net base bid) $27,007.00 (Option 1/total net bid) POLICE DEPARTMENT/VARIOUS DIVISIONS: Motorola Portable Radios. (602126) Nex-Tech - $102,716.50* (Bid Redirected) *Plus applicable rebate offered by Motorola of $50.00 per radio and $15.00 for every $100.00 worth of accessories until August 21, 2002 Martz moved that the contract(s) be awarded as outlined above, same being the lowest and best bid, and the necessary signatures be authorized. Motion carried 5 to 0. (Lambke, Knight - absent) LICENSE APPS. APPLICATIONS FOR LICENSES TO RETAIL CEREAL MALT BEVERAGES: Renewal 2002 (Consumption on Premises) Troy Hendricks Auburn Hills* 443 South 135th Street West Paul A. Eck Family Home Assn., Inc.* 3202 West 13th Street (Consumption off Premises) Linh V. Nguyen My Tam Oriental Mkt 1708 East Northern Street Dzung Banh KC Gas & Gro #3 1955 South Washington *General/Restaurant - 50% or more of gross receipts derived from sale of food. Motion -- Martz moved that the licenses be approved subject to Staff review and approval. Motion carried -- carried 5 to 0. (Lambke, Knight - absent) PLANS AND SPECS. SUBDIVISION PLANS AND SPECIFICATIONS. There were no Plans and Specifications considered. PRELIM. ESTIMATES PRELIMINARY ESTIMATES: a) Storm Water Sewer #567 to serve Wilson Farms Third Addition - south of 21st Street North, west of Webb. (468-83398/751311/485202) Traffic to be maintained during construction using flagpersons and barricades. (District II) - $205,000 b) Santa Fe from the north line of 14th Street to the south line of 15th Street North to serve North Park Addition - east of Broadway, north of 13th Street North. (472-83432/765702/490813) Traffic to be maintained during construction using flagpersons and barricades. (District VI) - $170,000 c) Water Main Replacement in Aley from Broadway to the dead end west of Wellington, Burnett from Broadway to Market, Burnett from Park Place to the dead end west of Wellington, 26th Street North from Broadway to the dead end west of Wellington, Wellington from 26th Street North to Aley, and Park Place from Burnett to Aley to serve North Lawn Addition, Buckeye Addition, Gardner's Addition, Aley Park Addition - west of Broadway, south of 29th Street North. (448-89558/634010/771181) Traffic to be maintained during construction using flagpersons and barricades. (District VI) - $243,000 d) Water Distribution System to serve Smithmoor 10th Addition - north of Pawnee, west of Greenwich. (448-89666/735050/470720) Does not affect existing traffic. (District II) - $60,000 e) Water Supply Line to serve McEvoy Addition and Equestrian Estates - south of Harry, along 127th Street East. (448-89644/735036/470706) Traffic to be carried through construction. (District II) - $155,000 f) Lateral 327, Four Mile Creek Sewer to serve Balthrop Fourth Addition - north of Central, east of Greenwich. (468-83390/743914/480602) Does not affect existing traffic. (District II) - $204,700 Motion -- carried Martz moved that the preliminary estimates be approved and filed. Motion carried 5 to 0. (Lambke, Knight - absent) BOARDS MINUTES MINUTES OF ADVISORY BOARDS/COMMISSIONS: Board of Code Standards and Appeals, April 4, 2002 Board of Appeals of Plumbers and Gas Fitters, March 6, 2002 District III Advisory Board, March 6, 2002 District IV Advisory Board, January 16, 2002; February 6, 2002 District V Advisory Board, February 4, 2002 District VI Advisory Board, February 4, 2002 Board of Park Commissioners, February 11, 2002; March 11, 2002 Public Library Board, March 19, 2002 Board of Electrical Appeals, February 12, 2002 Design Council City Arts, February 21, 2002 Employees Retirement System, January 16, 2002; and February 27, 2002 Police and Fire Retirement System, January 23, 2002; and February 27, 2002 Airport Advisory Board, January 7, 2002 Wichita/Sedgwick County Alternative Correctional Housing Advisory Board, February 28, 2002 Motion -- carried Martz moved that the Minutes be received and filed. Motion carried 5 to 0. (Lambke, Knight - absent) STREET CLOSURES CONSIDERATION OF STREET CLOSURES/USES. There were no street closures considered. RESPREAD AGMT. RESPREAD ASSESSMENTS: PARK CHATEAU ADDITION - EAST OF MAIZE, SOUTH OF PAWNEE. (District V) Agenda Report No. 02-1291. The landowners, Park Chateau Townhouse Owners Association, have submitted an Agreement to respread special assessments within their ownership of Park Chateau Addition. The land was originally included in several improvement districts for a number of public improvement projects. The purpose of the Agreement is to respread special assessments to more fairly distribute the cost of the improvements. There is no cost to the City. Motion -- Martz moved that the Agreement be approved and the necessary signatures be authorized. Motion -- carried carried 5 to 0. (Lambke, Knight - absent) RESPREAD AGMT. RESPREAD ASSESSMENTS: REFLECTION RIDGE AND REFLECTION RIDGE EIGHTH ADDITIONS - NORTH OF 21ST STREET NORTH, EAST OF RIDGE ROAD. Agenda Report 02-1292. The landowners, RCK Construction, Inc. and Reflection Ridge Golf Corp., have submitted an Agreement to respread special assessments within their ownership of Reflection Ridge & Reflection Ridge 8th Additions. The land was originally included in an improvement district for a public paving project. The purpose of the Agreement is to respread the special assessments to reflect changes in the division of land. There is no cost to the City. Motion -- Martz moved that the Agreement be approved and the necessary signatures be authorized. Motion -- carried carried 5 to 0. (Lambke, Knight - absent) EASEMENT AGMT. EASEMENT ENCROACHMENT - 11621 WEST ROLLING HILLS. (District V) Agenda Report 02-1293. The Agreement allows Delbert and Mary Smith to occupy and construct for 11621 W. Rolling Hills, improvements over and across a public easement described as a 30 ft. easement along the south lot line of Lot 19, Block 2, Sandalwood Village Addition, hereinafter referred to as Tract "A" and waives all rights of action in law arising out of the encroachment into the easement. The improvement is a swimming pool to extend 4 feet into the easement on the above mentioned property. The Agreement allows the City to be held harmless from any and all claims resulting from leaking, cave-in or failure of said sewer line lying within Tract "A" and from claims resulting from replacement or upgrade of lines, manholes, and/or other department property in the easement. There are no financial considerations. Motion -- Martz moved that the Agreement be approved and the necessary signatures be authorized. Motion -- carried carried 5 to 0. (Lambke, Knight - absent) PROF. SERVICES PROFESSIONAL SERVICES - REINSCHMIEDT LITIGATION. Agenda Report No. 02-1294. The City has retained the law firm of Foulston & Siefkin to provide legal services in connection with the class action litigation filed in Reinschmiedt v. City of Wichita. This case challenges the constitutionality of certain practices used by the municipal court judges to collect unpaid fines and court costs. The original contract was approved on February 1, 2000. It has become necessary to spend additional sums to continue the representation of the City in this matter. This will be the sixth amendment to the original contract. The additional sum covered by this Amendment provides for an amount not to exceed twenty-five thousand dollars as necessary to continue the legal representation. The charges are reasonable in amount for the legal services involved. The legal services are funded from the General Liability-Tort Management Fund. Motion -- Martz moved that the Agreement be approved and the necessary signatures be authorized. Motion -- carried carried 5 to 0. (Lambke, Knight - absent) ZOO BLVD. SUPPLEMENTAL FOR CONSTRUCTION ENGINEERING FOR ZOO BOULEVARD BIKE PATH FROM CENTRAL TO WESTDALE.(District V) Agenda Report No. 02-1295. On July 30, 1996, the City approved an Agreement with Professional Engineering Consultants, P.A. (PEC) to design Zoo Boulevard from 13th Street to Windmill Road. On August 15, 2000, the City Council approved Supplemental Agreement No. 3, which require PEC to design a bike path on Zoo Boulevard from Central to Westdale. The Design Agreement with PEC requires PEC to provide construction engineering services if requested by the City. The proposed Supplemental Agreement between the City and PEC provides for construction engineering for the landscaping on Zoo Boulevard Bike Path from Central to Westdale. Due to the current workload created by previous projects, City crews are not available to perform the construction engineering for this project. Payment will be on a lump sum basis of $3,500 and will be paid by General Obligation Bonds. Motion -- Martz moved that the Agreement be approved and the necessary signatures be authorized. Motion -- carried carried 5 to 0. (Lambke, Knight - absent) LEGACY ADDN. SUPPLEMENTAL FOR CONSTRUCTION ENGINEERING AND STAKING FOR THE LEGACY ADDITION - WEST OF MERIDIAN, AT 44TH STREET SOUTH. (District IV) Agenda Report No. 02-1296. The City Council approved the project on November 20, 2001. On December 11, 2001, the City approved an Agreement with MKEC Engineering Consultants, Inc. (MKEC) to design the improvements. The Design Agreement with MKEC requires MKEC to provide construction engineering services if requested by the City. The proposed Supplemental Agreement between the City and MKEC provides for construction engineering and staking for the improvements in The Legacy Addition. Due to the current workload created by previous projects, City crews are not available to perform the construction engineering for this project. Payment will be on a lump sum basis of $30,900 and will be paid by special assessments. Motion -- Martz moved that the Agreement be approved and the necessary signatures be authorized. Motion -- carried carried 5 to 0. (Lambke, Knight - absent) SECURITY SERV. SUPPLEMENTAL - SECURITY SERVICES. Agenda Report No. 02-1297. The tragic events of September 11, 2001, created an immediate need to assess the vulnerability of critical facilities. Since September 11, Staff have worked diligently to build upon previously established emergency procedures and vulnerability assessments, and have identified several areas that need more security. On January 8, 2002, City Council approved a project to further study the vulnerability and risks of the Water & Sewer Department. Staff have worked with HDR Engineers to assess the vulnerabilities and threats to the Water and Sewer Department. During the study, other vulnerabilities in the City infrastructure that are not included in the Water & Sewer Department Contract have been identified. As a result, the study of the security and reliability of City Hall is proposed. The study will include the following functions: * Perform investigations * Analyze alternatives * Conduct workshops * Produce technical memoranda * Submit final report with recommendations for immediate and ongoing security measures HDR will be required to maintain a continued level of confidentiality regarding all security issues. Any recommendations that are a result of the study will require approval by City Council before being implemented. The cost of study phase services, as described in the proposed Contract, will not exceed $44,621. Funding is available in Risk Management budget for this project. Motion -- Martz moved that the Agreement be approved and the necessary signatures be authorized. Motion -- carried carried 5 to 0. (Lambke, Knight - absent) DESIGN SERVICES DESIGN SERVICES AGREEMENT - SUPPLEMENTAL FOR EAGLES LANDING AND KOCH PROPERTIES - OLIVER FROM 37TH STREET NORTH TO 1/2 MILE NORTH. (District I) Agenda Report No. 02-1298. On February 5, 2002, the City entered into an Agreement with Baughman Company, P.A. for designing improvements in Eagles Landing & the Koch Properties. The fee was $99,300. Because the Scope of Services for the water main extension along Oliver has now been changed to extend along 45th Street from west and then south along Oliver, Baughman has been asked to redesign this portion of the water main. A Supplemental Agreement has been prepared. Payment will be on a lump sum basis of $8,600 and will be paid by special assessments. Motion -- Martz moved that the Agreement be approved and the necessary signatures be authorized. Motion -- carried carried 5 to 0. (Lambke, Knight - absent) STREET/BRIDGE DES. 2002 ARTERIAL STREET AND BRIDGE DESIGN PROGRAM. Agenda Report No. 02-1299. The 2002 Capital Improvement Program includes four arterial street and four bridge improvements. The Staff Screening and Selection Committee has selected design engineers for each project. The projects to be designed, the design engineer, and the design fees are: 29th, from Maize to Tyler - Baughman Company $56,800 Central, from Woodlawn to Rock - Ruggles & Bohm $124,260 Two-Way Main, from Douglas to Murdock - Ruggles & Bohm $72,000 Webb Traffic Signals at 29th and K-96 - MKEC Engineering $20,160 13th Street Bridge at Cowskin Creek - Cook, Flatt, & Strobel $50,780 15th Street at the Drainage Canal - MKEC Engineering $28,900 21st Street Bridge at the West Branch of Chisholm Creek - Cook, Flatt, & Strobel $43,970 Mt. Vernon Bridge at Dry Creek - MKEC Engineering $49,900 The project budgets total $505,000. The funding source is General Obligation Bonds. The Webb Traffic Signals at 29th and K-96 were included in the construction budget previously approved by the City Council. Motion -- Martz moved that the projects and Agreements be approved, and the necessary signatures be authorized; and the Ordinances be placed on first reading. Motion carried 5 to 0. (Lambke, Knight - carried absent) ORDINANCE An Ordinance declaring 29th Street North, from Maize Road to Tyler Road (472-83505) to be a main trafficway within the City of Wichita Kansas; declaring the necessity of and authorizing certain improvements to said main trafficway; and setting forth the nature of said improvements, the estimated costs thereof, and the manner of payment of the same, introduced and under the rules laid over. ORDINANCE An Ordinance declaring Central Avenue, from Woodlawn to Rock Road (472-83506) to be a main trafficway within the City of Wichita Kansas; declaring the necessity of and authorizing certain improvements to said main trafficway; and setting forth the nature of said improvements, the estimated costs thereof, and the manner of payment of the same, introduced and under the rules laid over. ORDINANCE An Ordinance declaring Main Street, from Douglas to Murdock (472-83507) to be a main trafficway within the City of Wichita Kansas; declaring the necessity of and authorizing certain improvements to said main trafficway; and setting forth the nature of said improvements, the estimated costs thereof, and the manner of payment of the same, introduced and under the rules laid over. ORDINANCE An Ordinance declaring 13th Street North Bridge at Cowskin Creek (472-83511) to be a main trafficway within the City of Wichita Kansas; declaring the necessity of and authorizing certain improvements to said main trafficway; and setting forth the nature of said improvements, the estimated costs thereof, and the manner of payment of the same, introduced and under the rules laid over. ORDINANCE An Ordinance declaring 15th Street North Bridge at Wichita Drainage Canal (472-83512) to be a main trafficway within the City of Wichita Kansas; declaring the necessity of and authorizing certain improvements to said main trafficway; and setting forth the nature of said improvements, the estimated costs thereof, and the manner of payment of the same, introduced and under the rules laid over. ORDINANCE An Ordinance declaring 21st Street North Bridge over the West Branch of Chisholm Creek at St. Francis (472-83513) to be a main trafficway within the City of Wichita Kansas; declaring the necessity of and authorizing certain improvements to said main trafficway; and setting forth the nature of said improvements, the estimated costs thereof, and the manner of payment of the same, introduced and under the rules laid over. ORDINANCE An ordinance declaring Mt. Vernon Bridge over Dry Creek at Bluff Street (472-83514) to be a main trafficway within the City of Wichita Kansas; declaring the necessity of and authorizing certain improvements to said main trafficway; and setting forth the nature of said improvements, the estimated costs thereof, and the manner of payment of the same, introduced and under the rules laid over. SEWER INSP. SANITARY SEWER INTERCEPTOR INSPECTION. Agenda Report No. 02-1300. The Kansas Department of Transportation plans to reconstruct Interstate Highway 135 between English and Pawnee. A 54" sanitary sewer interceptor lies beneath the northbound highway lanes. Reconstruction or repair of the sewer, if it is needed, will cost significantly less if coordinated with the highway reconstruction than if done after the highway work is completed. The condition of the sewer is unknown, but deterioration has occurred in sewers constructed of similar materials. If deterioration has created any cavities outside the pipe, the cavities pose a potential hazard to traffic. Therefore, it is important to determine the condition of the sewer. In addition, inspection of interceptor sewers that cross rivers is important for discovery and correction of any defects that would allow storm water into the sanitary sewer or allow wastewater into the rivers. These inspections will require both television and sonar because the volume of water in the interceptor sewer and the river crossings prevents dewatering the pipes for inspection by television alone and because it is necessary to determine if cavities exist outside the pipe wall. The City of Wichita does not have sonar equipment and staff does not have experience with sonar inspection. The City solicited proposals from qualified consultants. Four firms responded. After review, City staff judged the submittal from Amtec Surveying as the best. The Amtec proposal also was the proposal with the lowest cost. The cost of the recommended proposal is $75,537.00. The survey was approved in the 2001 sewer utility budget, and $50,000.00 was encumbered in 2001 for the survey. At the time preliminary estimates for sonar inspection were received, the cost of traffic control along Interstate 135 and the cost of establishing access to the sewer under the highway were underestimated. It will be necessary to transfer funds in the amount of $25,537.00 from the estimated expenses for other contractuals in 2002. Motion -- Martz moved that the budget adjustment and Contract be approved, and the necessary signatures be -- carried authorized. Motion carried 5 to 0. (Lambke, Knight - absent) SOLID WASTE KDHE SOLID WASTE PLAN IMPLEMENTATION GRANT APPLICATION. Agenda Report No. 02-1301. The Kansas Department of Health and Environment (KDHE) operates a statewide competitive grant program. This program allows counties, cities, and private companies to apply for grant funds to undertake programs that are consistent with and allow for the implementation of county adopted and KDHE approved solid waste management plans. The grant program is funded from a one dollar per ton state tipping fee on each ton of waste disposed of in Kansas or processed at a solid waste transfer station for disposal at a landfill in another state. The Sedgwick County adopted and KDHE approved solid waste plan provides for a ban of commercially produced construction and demolition waste from transfer stations. It also sets a goal of diverting 40% of the waste stream from disposal through these transfer stations. The Public Works Department has prepared a grant application to purchase a horizontal grinder at a budgeted cost of $435,500. As local grant match, the City will take credit for a previously purchased screening plant (at $182,904), staff for the equipment (one Equipment Operator I and one Laborer, $71,400 per year), and equipment fund rental payments ($194,100 per year). The new grinder will be used with the screening plant, a loader, and a dump truck to process part of the construction and demolition waste so that it can be recycled into material that can be reused or recycled. Grant funding requested of KDHE under this application totals $435,500. Local match to be provided totals $448,404. The grant program requires a local match of at least 25% with favorable credit given in the grant review process for higher percentages. The City is providing a local match of 51%. Funds to pay for all of the local match and for the grinder itself (if necessary) are budgeted in the Public Works Department Maintenance Division budget. The KDHE estimates that approximately $1.2 million of grant funds will be awarded in this round. Motion -- Martz moved that the Grant Application and receipt of funds be approved, and the necessary signatures -- carried be authorized. Motion carried 5 to 0. (Lambke, Knight - absent) BYRNE GRANT 2003 BYRNE GRANT APPLICATION. Agenda Report No. 02-1302. The Wichita Police Department received Byrne Grant funding (first phase) in 1999 for technology in the area of gang investigations. The Wichita Police Department is applying for the second phase of four phases of funding (under the initial project) to update current computer systems, training and safety equipment for gang personnel. A 30 percent local funding match is required, which the City Council has approved in the past from the Narcotic Seizure accounts. The local match amount is $58,588. Byrne Grant funding will update the current computer system and allow for the purchase of training and safety equipment for gang personnel. The computer system will aid police investigators in tracking gang members and their known associates. This information is needed and is critical to address the problem of gang violence in our community. Additional training is required for police personnel to adequately understand the gang culture, as well as to keep up with the investigative trends in death investigations. The requested safety equipment is needed for gang investigators. The 2003 Byrne Grant program will provide the City of Wichita with $136,706 in federal funding. The local funding match of 30 percent ($58,588) will be funded from the Narcotics Seizure accounts, which have sufficient funding to cover the local match requirements. The City Manager with the approval of the City Council has the authority to submit and receive the grant. Motion -- Martz moved that the Grant Application and receipt of funds be approved, and the necessary signatures -- carried be authorized. Motion carried 5 to 0. (Lambke, Knight - absent) CESSNA SERVICE ECONOMIC DEVELOPMENT ADMINISTRATION GRANT APPLICATION - CESSNA SERVICE CENTER. Agenda Report No. 02-1303. On December 18, 2001, the City Council approved a Letter of Intent with Cessna Aircraft Company to provide public-private financing for the Cessna Citation Service Center. The Letter of Intent provided for city, county and state financing of Hoover Road, a drainage detention facility and a storm water sewer pump station. Sedgwick County is applying for a federal Economic Development Administration (EDA) grant for a portion of the Hoover Road project costs. Because Hoover Road lies within the corporate limits of the City of Wichita, the City must sign the grant application with Sedgwick County as a co-applicant. Sedgwick County has prepared the EDA grant application for consideration by the U.S. Department of Commerce, Economic Development Administration. The grants are competitive and there is no assurance of funding. If approved, Sedgwick County would administer the EDA grant funds. The City of Wichita has previously applied for $6 million in Kansas Department of Transportation (KDOT) funds for the Hoover Road project. Sedgwick County is requesting $3.5 million in EDA funds to be matched by Sedgwick County local tax funds and Kansas Department of Transportation funds of $6 million from the City KDOT grant. The City must sign the EDA grant application as co-applicant for the project to considered. Motion -- Martz moved that the Grant Application and receipt of funds be approved, and the necessary signatures -- carried be authorized. Motion carried 5 to 0. (Lambke, Knight - absent) ATHLETIC COURT ATHLETIC COURT IMPROVEMENTS. Agenda Report No. 02-1304. The Park and Recreation Department has a number of athletic courts across the city which are in need of major repair or replacement. These include basketball/multi-use courts, croquet courts, horseshoe courts, shuffleboard courts, tennis courts, and tetherball courts. The 2002 Park Capital Improvement Program (CIP) includes funding to repair, remove, or construct courts across the city. Park and Recreation staff have identified four (4) tennis courts for replacement during the current year-two at McAdams Park and two at Linwood Park. Reconstruction of these courts will protect the City's investment in Park and Recreation facilities and amenities and enhance their use by beginning and experienced tennis enthusiasts, both young and old. The 2002 Park CIP includes $160,000 for the repair, removal, and/or construction of athletic courts across the city. The funding source is general obligation bonds. Motion -- Martz moved that the Resolution be adopted; and project initiation and necessary signatures be -- carried authorized. Motion carried 5 to 0. (Lambke, Knight - absent) RESOLUTION NO. 02-204 A Resolution authorizing the issuance of Bonds by the City of Wichita at large for the repair, removal, and/or construction of athletic courts, presented. Martz moved that the Resolution be adopted. Motion carried 5 to 0. (Lambke, Knight - absent) Yeas: Brewer, Fearey, Gale, Lambke, Martz, Pisciotte, Knight. LIMOUSINE SERV. CERTIFICATE OF CONVENIENCE AND NECESSITY FOR AMBASSADOR LIMOUSINE. Agenda Report No. 02-1305. On March 4th, 2002, Wichita Transit staff received an application from Mr. Craig McIntosh and Mr. Jeffery Brungardt d/b/a Ambassador Limousine, for a Certificate of Convenience and Necessity to operate a chartered limousine service in Wichita, Kansas. The application included support documentation, an insurance policy meeting code requirements, payment of fee, listing employees' names for police records check purposes and a vehicle inspection report. This company will operate two vehicles. If approved for a license, Ambassador Limousine will become the ninth licensed chartered limousine service in the City of Wichita. This will be an added resource to those persons needing transportation services for special occasions. There will be no financial impact on the City of Wichita. The City's Law Department is reviewing the Certificate of Convenience and Necessity and the policy of insurance submitted by Craig McIntosh and Jeffery Brungradt d/b/a Ambassador Limousine. Approval is pending. Motion -- Martz moved that a Certificate of Convenience and Necessity for Craig McIntosh and Jeffery Brungardt to operate Ambassador Limousine to operate up to three (3) vehicles in Wichita, Kansas, be approved. -- carried Motion carried 5 to 0. (Lambke, Knight - absent) PLANNING AGENDA Martz moved that the Planning Agenda be approved as consensus Items. Motion carried 5 to 0. (Lambke, Knight - absent) SUB2002-23 SUB2002-23 - PLAT OF WOODBRIDGE SEVENTH ADDITION - SOUTH OF 21ST STREET, EAST OF 119TH STREET WEST. (District V) Agenda Report No. 02-1306. Staff Recommendation: Approve the plat. MAPC Recommendation: Approve the plat. (10-0) This replat is zoned SF-5, Single-Family Residential. Municipal water is available to serve the site. A petition, 100%, has been submitted for sewer improvements. A Certificate of Petitions has also been submitted. This plat has been reviewed and approved by the Planning Commission, subject to conditions and recording within thirty (30) days. The Certificate of Petitions will be recorded with the Register of Deeds. Motion -- Martz moved that the Document and Plat be approved; and the Resolution be adopted. Motion carried -- carried 5 to 0. (Lambke, Knight - absent) RESOLUTION NO. 02-205 Resolution of findings of advisability and Resolution authorizing construction of Lateral 40, Main 12, Southwest Interceptor Sewer (468-83438) - South of 21st Street, east of 119th Street, in the City of Wichita, Kansas, pursuant to findings of advisability made by the Governing Body of the City of Wichita, Kansas, Martz moved that the Resolution be adopted. Motion carried 5 to 0. (Lambke, Knight - absent) Yeas: Brewer, Fearey, Gale, Martz, Pisciotte. ZON2002-00008 ZON2002-00008 - ZONE CHANGE FROM TWO-FAMILY RESIDENTIAL TO MULTI-FAMILY RESIDENTIAL - 150 FEET EAST OF SOUTH ROOSEVELT AVENUE, NORTH OF ZIMMERLY STREET. (District III) Agenda Report No. 02-1307. MAPC Recommendation: Approve, subject to platting within one year. (11-0) Staff Recommendation: Approve, subject to platting within one year. The applicant requests "B" Multi-family zoning on 7.3 unplatted acres located east of Roosevelt Ave., west of Bluff View, and north of Zimmerly. The parcel is currently zoned "TF-3" Two-Family Residential, and is used as open space. The proposed use would be approximately 65 to 70 apartment units for elderly independent living. The applicant, the Sisters of St. Joseph, is a charitable corporation. The applicant also owns over 35 acres of contiguous property to the north of the application area; this property is zoned "B" and "TF-3", and used for open space, religious facilities, and living facilities. South of the application area is property zoned "TF-3" and developed with single and two-family residential units. East of the application area is property zoned "B"; immediately east of the application area is a creek and open space, further east is small lot single-family residential units. West of the application area is "TF-3" zoned open space and single-family residential units. The current neighborhood character is a mix of "B" and "TF-3" zoned open space, a large religious complex, single family-housing units, and two-family housing units. The proposed zone change, from "TF-3" to "B" would require conformance to all property development standards in the Unified Zoning Code. The applicant proposes that the primary site access be from the east, off Bluff View. Bluff View is a collector, and should be able to accommodate this potential traffic increase. This access plan requires deeded park land from the City, which will require future approval from the Park Board. MAPC heard this request at their regularly scheduled meeting on March 21st, 2002. No members of the public chose to speak on the zone change request; the applicant and their agent agreed with the Planning Staff recommendation. MAPC approved the request subject to staff comments by a vote of 11-0. Motion -- Martz moved that the zone change be approved subject to replatting within one year; and the zoning ordinance be forwarded when the plat is forwarded to Council. Motion carried 5 to 0. (Lambke, -- carried Knight - absent) A02-06 A02-06 - ANNEX LAND LOCATED 1/2 MILE NORTH OF MACARTHUR, EAST OF RIDGE ROAD. (District IV) Agenda Report No. 02-1308. The City has received a request to annex approximately 42 acres of a 129-acre parcel situated north of 47th Street South and east of Hoover Road. The developer is acquiring the entire parcel in three phases and a preliminary plat for the entire 129-acre parcel has been approved by the MAPC. The developer is planning to construct 112 single-family dwellings during the first phase of development. The staging of this development phase has been planned over multiple years, with 100% of development projected to occur within four (4) years. The site does not abut the current City of Wichita limits. Therefore, the City must petition Sedgwick County to permit this "island" to be annexed. As with the acquisition, the entire annexation of this parcel will require three separate "island" annexations. On April 3, 2002, the County Commission made a finding that the annexation would further the proper growth and development of the area. Land Use and Zoning: The annexation site is presently in agricultural production and zoned "SF-20" Single Family Residential. Land north, south, and west of the site is also in agricultural production and is zoned "SF-20" Single Family Residential. The Wichita Valley Center Floodway is located east of the site. Upon annexation, the "SF-20" Single Family Residential zoning of the subject property will convert to "SF-5" Single Family Residential. Public Services: The City Water and Sewer Department indicates that the subject property proposed for annexation will likely connect to a 16" water main along Hoover Street. As shown in the 2001-2010 City of Wichita Capital Improvement Plan (C.I.P.), the City has scheduled the extension of water lines along Hoover and 47th Street South. However, if the final plat occurs before the CIP projects Gray's 5th Addition will be responsible for the 8" equivalent across the property frontage at a cost of approximately $80,000 and the City's portion for the oversizing would be about $60,000. City sewer is also located at Hoover and about 1/2 mile south of MacArthur. However, the Water and Sewer Department indicates that the sewer line to the north is shallow and may be of insufficient capacity to the handle further development. The Water and Sewer Department has been discussing alternatives with the developer, and the construction of a regional lift station to pump the sewage east along 47th Street across the Big Ditch to the existing sewer is a likely option. The construction of the regional lift station would allow for the elimination of possibly three smaller, existing pump stations and would be of sufficient size to serve all of the existing development currently served by the smaller stations, the proposed annexation site, the undeveloped property north and west of this site, and Prospect Park Addition. The estimated cost for the regional lift station and line extension across the Big Ditch is $660,000 with City participation of approximately $360,000 (future development will be asked to reimburse the City for the upfront cost). Street System: The property proposed for annexation will have access to Hoover (two-lane arterial), which serves the area as the nearest north-south road, and 47th Street South (two-lane road), which serves the area as the nearest east-west road (dead ending at the Big Ditch). There are no plans to further improve these road segments in either the 2001-2010 City of Wichita Capital Improvement Plan (C.I.P.) or the 2002-2006 Sedgwick County Capital Improvement Program (C.I.P.). However, the developer has guaranteed left turn lane improvements in Hoover. Public Safety: Fire services to this site can be provided within a ten (10) to twelve (12) minute approximate response time from City Station #19 located at 600 W. MacArthur. Although new fire stations are being constructed in South Wichita, approximate response times to this site are not expected to improve. As further development occurs southwest of the City, an additional fire station may be warranted. Upon annexation, police protection will be provided to the area by the Patrol West Bureau of the Wichita Police Department, headquartered at 661 North Elder. Parks: The developer offered to dedicate to the Park Board approximately 25 acres of reserve land adjacent to the Big Ditch to be utilized as a neighborhood park. South Lakes Park, a 247-acre park, is also located approximately 2 mile southeast of the proposed annexation site. School District: The property is located in Unified School District 261 (Haysville School District). Annexation will not change the school district. Comprehensive Plan: The proposed annexation is consistent with current amendments to the Comprehensive Plan. The final plat for the property proposed for annexation has been approved by MAPC. The approximate appraised value of the property is $7,700, resulting in an assessed value of $886. Using the current City levy ($31.406/$1000 x assessed valuation), this roughly yields $28 in City annual tax revenues for the property. The future assessed value of this property will depend on the timing of development, the type of development, and the current mill levy. However, the applicant projects an overall appraised value of $8,736,000 when development is completed, resulting in an assessed value of $1,004,640. Assuming the current City levy remains about the same, this would roughly yield $31,552 in City annual tax revenues. The property is eligible for annexation under K.S.A. 12-520c. Whenever the City Council deems it advisable to annex land under the provisions of this Section, it must by resolution request the Board of County Commissioners to make a finding that the annexation would further the proper growth and development of the area. The City Clerk then files a certified copy of such resolution with the Board of County Commissioners, who must, within thirty (30) days following the receipt thereof, hold a public hearing and make findings and notify the City Council of its decision, after which the City Council may annex the property by ordinance. Motion -- Martz moved that the annexation request and first reading of the Ordinance be approved. Motion -- carried carried 5 to 0. (Lambke, Knight - absent) ORDINANCE An Ordinance including and incorporating certain blocks, parcels, pieces, and tracts of land within the limits and boundaries of the City of Wichita, Kansas, and relating thereto, introduced and under the rules laid over. A02-06 AIRPORT AGENDA Martz moved that the Airport Agenda be approved as consensus Items. Motion carried 5 to 0. (Lambke, Knight - absent) TENANT FACILITIES AIRPORT DEVELOPMENT - TENANT FACILITIES ELECTRICAL DISTRIBUTION SYSTEM. Agenda Report No. 02-1309. On March 27, 2001, the City Council approved a project to expand tenant facilities. Part of the expansion includes making improvements to the electrical distribution system. Atlas Electric was awarded the contract for the electrical improvements. The rotating beacon and associated equipment has been in place since the opening of Wichita Mid-Continent Airport, 50+ years ago. It has become unreliable due to age, and does not meet current standards. It assists pilots when operating under instrument flight rules. Because of the specialized nature of the work, it is recommended that the replacement be included in this project as a change order. The cost of the work is $20,031 which will be funded with General Obligation Bonds paid by airport revenues. The Change Order is within the project budget. The Law Department has approved the Change Order. Motion -- Martz moved that the Change Order be approved and the necessary signatures be authorized. Motion -- carried carried 5 to 0. (Lambke, Knight - absent) SECURITY DIRECT. AIRPORT SECURITY DIRECTIVES. Agenda Report No. 02-1310. In response to continuing efforts to reduce the threat of terrorist activities, on November `9, 2001, the Aviation and Transportation Security Act established the Transportation Security Administration (TSA) under the direction of the Under Secretary of Transportation for Security. Section 110(g)(2) of the Act requires the Under Secretary to order the deployment of at least one law enforcement officer (LEO) at each airport security location to ensure passenger safety and national security. The President of the United States authorized the National Guard to remain at airport passenger checkpoints until May 31, 2002. The federal plan is to draw down the National Guard in phases, which started in March. The newly formed TSA is responsible for ensuring/directing a law enforcement presence at the screening checkpoints. A Security Directive has been issued which includes specific requirements for airports, and is to be implemented by May 10, 2002. A standard memorandum of agreement has been furnished to airports. The federal government will reimburse the Wichita Airport Authority for its costs in providing a uniformed sworn and certified law enforcement officer at the security checkpoint until such time as the U. S. Department of Transportation - Transportation Security Administration assumes responsibility for such functions by placing a federal law enforcement officer of the TSA at the security checkpoint. Motion -- Martz moved that the Grant Application and receipt of funds be approved; and the necessary signatures -- carried be authorized. Motion carried 5 to 0. (Lambke, Knight - absent) TAXIWAY "M" AIRPORT IMPROVEMENT PROGRAM GRANT APPLICATION TAXIWAY "M" CONSTRUCTION. Agenda Report No. 02-1311. On April 2, 2002 City Council approved the construction bid for Taxiway "M" which is being built to serve the Cessna Service Center and future development on the east side of the airfield. The award to Ritchie Paving Inc. was approved pending Federal Aviation Administration (FAA) approval and funding. Staff has prepared a grant application for these funds to submit to the FAA. The Airport is requesting that $9,594,847 in FAA AIP funds be directed for this purpose. The Airport's responsibility of $1,367,944 will be paid by Passenger Facility Charges and General Obligation Bonds paid by Airport revenue. Motion -- Martz moved that the Grant Application and receipt of funds be approved; and the necessary signatures -- carried be authorized. Motion carried 5 to 0. (Lambke, Knight - absent) SECURITY GUARD SECURITY GUARD SERVICES. Agenda Report No. 02-1312. The Federal Aviation Administration (FAA) has mandated an increase in security measures at airports due to the terrorist attacks of September 11, 2001. On October 2, 2001, the City Council authorized a contract with PSI to provide stationary guard services at Mid-Continent Airport. To date, these services have been utilized to search vehicles that park within the restricted area immediately surrounding the terminal building. There are several airfield construction projects that will occur over the next several months. The FAA requires gate guards, under the direction of the airport, to be present at the construction site access gates at all times of construction. The guards will monitor the traffic going to the construction site. Because of limited airport staff, it will be necessary to hire a private firm for the required services. The hourly charge is $15.58/guard. This is the same hourly charge as the original contract. The maximum amount of the supplemental agreement is $86,313.20. The cost of the additional security officers will be funded in the same manner as the projects being constructed, which will use a combination of grants from the FAA, Passenger Facility charges, and airport revenue. Motion -- Martz moved that the supplemental agreement be approved, and the necessary signatures be -- carried authorized. Motion carried 5 to 0. (Lambke, Knight - absent) HOUSING AGENDA Inafay Grays-McClellan, Housing Member also seated with the City Council. HUD BUDGET 2002 HUD BUDGET AND OPERATING FUND FORMULA. Agenda Report No. 02- 1313. The Wichita Housing Authority (WHA) and the Department of HUD have a mutual responsibility for the financial stability of the low-income housing program. The annual budgetary process is the principal focal point of cooperative effort to plan the exchange of information and reconciliation of judgment. The purpose of the budget, as a financial summary and analysis of immediate and long-range operating programs and plans is to provide the WHA with an effective instrument to control operations and achieve operating objectives in a balanced and businesslike manner. Pursuant to Section 9(a) of the U.S. Housing Act of 1937 and updates, the Department of HUD implemented the Operating Fund Formula (OFF) for determining the amount of operating subsidy to be paid to most Public Housing Authorities (PHA). The OFF serves two primary purposes. First, it is used to determine each PHA's share of the total operating subsidy funds appropriated by Congress each fiscal year. Second, it provides a reliable means of estimating the annual aggregate operating subsidy eligibility of PHAs, which serves as the basis for requesting annual appropriations from Congress. The total budgeted routine expense (line 550) of the Operating Budget is $2,609,069. This represents a 8.7% increase over the 2001 budgeted amount this is primarily a result of increased trash expenses; increases in insurance premiums; increases in salaries/indirects; and increased charges by the City of Wichita for operations . The OFF operating subsidy approvable for 2002 (Part E, 03) is $1,266,925. This represents a 4.4% increase over the 2001 approved subsidy. In 2001, HUD modified the 2001 subsidy request from $1,219,540 to $1,213,442 which represented a decrease of 0.5%. It is likely that HUD will modify this year's request. Revenues for 2002 includes operating subsidy, rent receipts, and other operating receipts. Deficits caused by increased utility allowances and subsequent reductions in rents received will be offset by budgeted operating reserves. The submission of the 2002 Operating Budget and Operating Fund Calculation of Operating Subsidy are the essential components, which enable the WHA to receive the funding necessary for the operation of the Public Housing Program. Motion -- Martz moved that submission of the 2002 HUD Operating Budget and Operating Fund Calculation of -- carried Operating Subsidy Resolution be approved Motion carried 6 to 0. (Lambke, Knight - absent) ADMIS./OCCUPANCY ADMISSIONS AND CONTINUED OCCUPANCY POLICY. Agenda Report No. 02-1314. Public housing authorities are required by existing HUD regulations to adopt and maintain admissions, occupancy and waiting list policies. The last time that the Wichita Housing Authority (WHA) revised its Admissions & Continued Occupancy Policy (ACOP) was on October 2, 2001. The Quality Housing and Work Responsibility Act of 1998 (QHWRA) provides that public housing authorities shall submit for HUD approval their policies governing eligibility, selection and admission, assignment and occupancy policies. As the result of recent HUD Notices, staff recommends the below amendments to the ACOP. Amendments include: 1. A. 7. (page 12) - the change of name to Workforce Investment Act of 1998; and 2. A. 34-37. (page 13) - new income exclusions for the calculation of rent. The additions are to bring the ACOP into compliance with the Quality Housing and Work Responsibility Act of 1998 and amendments to the United States Housing Act of 1937. Motion -- Martz moved that implementation of the revised Admissions and Continued Occupancy Policy for the administration of the Public Housing Program be approved. Motion carried 6 to 0. (Lambke, Knight -- carried - absent) SECTION 8 REVISIONS TO SECTION 8 ADMINISTRATIVE PLAN. Agenda Item No. 02-1315. The Governing Board of the Housing Authority must first approve revisions to the Section 8 Administrative Plan before they can be implemented. The revisions to the existing plan are requested in order to ensure compliance with HUD regulations and to alter local procedures. The following amendments are local policies/procedures. 4.8 Grounds for denial The Wichita Housing Authority will deny assistance to applicants who: E. Have a history of criminal activity by any household member involving crimes of physical violence against persons or property, and any other criminal activity including drug-related criminal activity that would adversely affect the health, safety, or well being of other tenants or staff, or cause damage to the property within the last five years; L. Have a family household member and/or adding a person to the household who has been terminated under the Certificate or Voucher Program during the last three years; M. Withdrawn from Section 8 waitlist for non-compliance of program procedures within the last 12-months; 4.9 Notification of Negative Actions F. Suitability for tenancy The Wichita Housing Authority determines eligibility for participation and will also conduct criminal background checks on all adult household members, including live-in aides. The Wichita Housing Authority will deny assistance to a family because of drug-related criminal activity or violent criminal activity by family members. This check will be made through state or local law enforcement or court records in those cases where the household member has lived in the local jurisdiction for the last five years. If the individual has lived outside the local area, the Wichita Housing Authority may contact law enforcement agencies where the individual had lived or request a check through the FBI's National Crime Information Center (NCIC). 12.5 Time Frames and Corrections of HQS Fail Items C. Time Frames for Corrections 1. Emergency repair items must be abated within 24 hours. If not corrected in that time frame, the contract may be terminated immediately. 2. Repair of refrigerators, range and oven, or a major plumbing fixture supplied by the owner must be abated within 72 hours. 3. Non-emergency items must be completed within 10 days of the initial inspection. 4. For non-emergency repairs, the owner will have up to 30 days to complete. 24.4 FAMILY SELF SUFFICIENCY B. Applicability of this Section This program will be made available to all participants in the Section 8 certificate and voucher programs. Insert the following: The Wichita Housing Authority's offers several homeownership programs such as: S8 Homeownership, Public Housing Homeownership and Homeownership 80 programs. Admission policy to the Family Self-Sufficiency Program shall utilize homeownership goals as a preference system to enroll eligible families into the Family Self Sufficiency Program. Clients are selected from the FSS Program Section 8 Participant Interest Statement list in sequence according to the date and time of their Interest Statement submittal. Clients that qualify for this preference may be enrolled in Family Self Sufficiency program before other clients that have been added to the Participant Interest Statement list that applied earlier but have no preference. Amendments are required or permitted in accordance to Rules and Regulations for Administration of Section 8 Voucher Program. Motion -- Martz moved that the Administrative Plan amendments for the Section 8 Voucher Program be -- carried approved. Motion carried 6 to 0. (Lambke, Knight - absent) SELF-SUFFICIENCY FAMILY SELF-SUFFICIENCY PLAN. Agenda Report No. 02-1316. The Housing Authority has operated a Family Self Sufficiency program since 1994. One of the requirements of the FSS program is that a Program Coordinating Committee (PCC) be in place to make recommendations and monitor implementation of the program. The initial PCC was the Private Industry Council which had been organized under the Job Training Partnership Act, and the FSS program was developed around JTPA and AFDC (Aid to Families with Dependent Children). Recent federal legislation replaced JTPA with the Workforce Investment Act, and TANF has replaced AFCD. Simultaneously, the Private Industry Council was also replaced with a successor board. Because of the drastic programmatic changes in job training and welfare programs and dissolution of the Private Industry Council, the Housing Authority has initiated a new Program Coordinating Committee for the FSS program, and has revised the FSS program to reflect current conditions. Central to the FSS program is the establishment of an escrow account for the participant upon establishment of goals that will lead to self sufficiency. For any increases in the family share of the rent due to increased income from earnings, an equal amount is deposited in the family's escrow account. Upon completion of the goals, the funds in the escrow account are given to the family, and may be used for any purpose. In many cases, the families have used the funds to apply toward the purchase of a home. Housing Authority staff work with the Workforce Development Center, SRS, and other agencies in the community to provide education, job training and other supports needed by the family in their efforts to become self sufficient. Funding for the escrow account is provided via the Housing Assistance Payment received from HUD. In addition, HUD provides special funding for two staff positions to work directly with Family Self Sufficiency participants. Motion -- Martz moved that the Family Self Sufficiency Plan be approved. Motion carried 6 to 0. (Lambke, -- carried Knight - absent) Adjournment The City Council meeting adjourned at 10:37 a.m. Pat Burnett City Clerk CMC 12:00 Luncheon with Wichita River Festivals, Inc. CITY COUNCIL PROCEEDINGS JOURNAL 175 APRIL 16, 2002 PAGE 365