MINUTES OF THE MEETING OF THE CITY COUNCIL Wichita, Kansas, May 9, 1995 Tuesday, 9:06 A.M. The City Council met in regular session with Mayor Knight in the Chair. Council Members Cole, Kamen, Gale, Rogers, Ferris present. Council Member Cather absent. Chris Cherches, City Manager; Gary Rebenstorf, Director of Law; Patricia L. Burnett, Deputy City Clerk; present. The invocation was given by Mayor Knight. The pledge of allegiance to the flag was participated in by the Council Members, staff, and guests. Minutes -- The minutes of the regular meeting of May 2, 1995, were -- approved approved 6 to 0. (Cather absent) AWARDS AND PRESENTATIONS SERVICE CITATIONS Distinguished Service Citation was presented to the recipient. PROCLAMATIONS Proclamations previously approved were presented. PUBLIC AGENDA TONY SCARPELLI COMMENTS BY TONY SCARPELLI. Tony Scarpelli Tony Scarpelli, New York Hotdog Company, spoke requesting that City Code 3.97.080 be changed to make that code section not applicable during the Wichita River Festival. During the River Festival, preference is shown to large companies. Mr. Scarpelli said there is a little known ordinance which gives the River Festival control over all city prop during river festival. There should be modification to allow businesses to operate during the Festival without penalty. The existing ordinance is vague, River Festival operation areas should not be restricted, there is double taxation, additional tax is paid in the form of rent. Council Member Kamen Council Member Kamen said there has been an effort to support River Festival concessionaires by not allowing other outdoor concessions. Tony Scarpelli Tony Scarpelli said the ordinance covers a three block area in which all lots on which there are no buildings are owned by the City. Council Member Ferris Council Member Ferris explained that there is no mechanism to approve a change today and the River Festival starts Friday. It does seem to be unfair that if a restaurant has a face on Douglas or in Old Town it is able to compete with the River Festival but because a business is mobile it cannot. There may be legal problems for the City. Council Member Ferris Council Member Ferris asked the Director of Law advise whether the ordinance discriminates. Council Member Ferris also pointed out that if a business is leasing the building, the sidewalk vending permit would not apply to that business. The Director of Law may need to visit with Staff to see whether interpretation of the ordinance has been correct. Council Member Kamen Council Member Kamen said that those concessionaires renting from the River Festival, if the arrangement becomes too loose, will forget about the River Festival and rent lots on their own. After a while the River Festival would have problems with revenues. Tony Scarpelli Tony Scarpelli also mentioned problems with available lots being used for emergency vehicles. The Director of Law was asked to meet with Mr. Scarpelli to see whether anything could be done. UNFINISHED BUSINESS FINANCIAL REPORT QUARTERLY FINANCIAL REPORT FOR THE QUARTER ENDED MARCH 31, 1995. Continued from April 25, 1995. Mayor Knight Mayor Knight asked whether there are any other reports that have to do with the financial status of the City of Wichita that are filed beyond the quarterly Financial Report. Ray Trail Director of Finance said, "We also prepare documents such as the budget. Preliminary to the budget we prepare a financial plan which is a multi-year projection. As a matter of fact, it should be provided to the Council this week. Mayor Knight Mayor Knight said, "You provide quarterly reports. We used to have monthly reports up until several years ago. Are there other reports beyond this quarterly report that the manager receives about the financial condition of the City, or anyone else would receive, or is this the extent of the reporting?" Ray Trail Director of Finance responded, "With the exception that periodically I will direct a memorandum on some special issue to the Manager that, typically, he forwards to the Council, no. This is our means of providing regular reporting to the Council." Mayor Knight Mayor Knight stated, "The reason I asked, Greg, is that, in terms of the responsibilities of the Council, and clearly in terms of the responsibility of the Manager, the things that really are identified as over-sight issues are the financial condition of this municipal corporation. And, maybe the quarterly reporting is sufficient but if you look at this, you really only had like three financial reports available for 1994. You did not get the fourth one until like February of 1995. It is just a concern of mine that I will share - and maybe others will not agree - but with changes occurring at a pace and a velocity that is unparalleled. "Financial conditions can change with disconcerting swiftness also. I am heartened to know that this City's investment policies and some of the other features of your responsibility have nothing in common with an Orange County California, for example. I only use that to say that your responsibilities are so much more profound than what they might have been five, ten, or fifteen years ago - and so is the governing body's. I would just like to know that we are going to be getting information that is timely that allows us an opportunity to discuss and to hear points of view from the public in order to form a coherent and, hopefully, effective financial direction for this City. I guess I, as one, want more than that. I, as one, want every financial report that is presented to the Council to be on the Agenda. I think you should receive ten or fifteen minutes or whatever time is necessary to walk the Council and the citizens of this City through the financial condition of this City to make sure that we all understand at least the resources that we have to work with. We will struggle as a community as to how we use those resources but we need to be clear on what those resources are. And, I think also there ought to be ample time for questions from the City Council." "I also noticed, and a lot has changed since I was here, but the format has taken on a change that I think might be kind of recent in terms of looking at this quarterly report. I am not sure I understand the type of accounting information that you have included on pages two through thirteen where you used combined balance sheets and combined statements of revenues and expenditures and fund balances. I guess I need to know why you think that is significant for governmental accounting. I understand why some companies privately use that but do you find that something that would enlighten people sitting up here and the average citizen that is trying to glean information and understanding about the condition of our City?" Ray Trail Director of Finance answered, "First, with respect to the frequency of reporting, we as an, if you will, experiment, and also as a part of a budgetary reduction, opted to go from monthly reporting to quarterly reporting. It has been our consensus, at least in terms of finance staff, that some form of interim reporting on a monthly basis is desirable, not only for Council purposes but for staff purposes and for public. We are looking at a means to bridge that gap - something much more abbreviated than what you see here but something that would be key indicators on budgetary matters on a more frequent basis. "I think I agree with you very much that the more frequent the information is to the Council the greater opportunity the Council has to take any actions that they deem necessary to respond to any trends. "With respect to the format of the Financial Report, this Financial Statement is a document which is intended to have multiple audiences. We did experiment with deleting the particular pages that you mentioned - the balance sheet and other combined statements and found that in our working with the auditors and with bond rating agencies that they were asking us questions about our financing that was more on a balance sheet or a generally accepted accounting principle basis and we opted to put these statements back in to respond, if you will, to those kinds of audiences. "I, as you, am not an accountant and the ones I tend to look at, more often than not, are the budgetary statements - budget to actual; and then, of more recent vintage, we have attempted to improve some of the reporting in terms of our investment activities so that there is greater disclosure. There again, a principal motivator was to disclose that not only to the Council but also disclosing greater detail to the rating agencies which began asking us a lot of questions. "We have given some thought to reordering the sequencing of these statements in the quarterly so that those statements which are of more use and interest locally, budgetary statements and others, appear first in the document so you do not have to thumb through pages and pages of balance sheets to get to the things that you may be more interested in looking at. But, yes, those statements do have an audience. It is probably not an audience that includes you and I as primary recipients." Mayor Knight Mayor Knight stated, "I think your answer is a reasonable response. I think we have clearly complicated the financial information in the way it is being presented and, perhaps, the way you are suggesting may modify it for the purposes of most citizens in the community and certainly the Council. Even though I do not profess to speak for each Council Member, I think the simpler you make it the easier it is to understand - the greater accountability the citizens can hold us to. I think that ought to be the issue. "There are some budgets that are incomprehensible and while they may, in fact, be lauded on Wall Street, they are virtually of no benefit to the citizens that they ought to be serving. So, maybe we can satisfy both groups." "I think we have the capability of getting the bond rating agencies all the information they need in as sophisticated of format as they desire. That really is not the issue that I am speaking to. What I am speaking to is how we can communicate with our citizens on a regular basis about the financial condition of this City and I believe that that is absolutely essential in creating a level of credibility that I think is necessary to advance and succeed as an American and a City. "Could you just explain, for a second, on page 15, Ray, where it shows an increase in the unincumbered cash balance from January the 1st? There is a budget item of a little under $12 million - $11.8 (million), and this shows that it is $20.4. One of the comments that I made in the past is this unincumbered cash balance level and it seems to be growing, not decreasing. Can you give an explanation for that?" Ray Trail Director of Finance responded, "Yes, the column that you see on budget is a replication of what was set out in the budget document that was adopted by the City Council last August and so, at the time, that was the projection of what would be the beginning cash balance in the General Fund for the beginning of 1995 - $15,271,000. During the period of time from that point to this point, and after reassessment of the trends, both higher than expected revenues and lower than expected expenditures, produced a larger cash balance than what was set out in the budgetary document. So, what we show as a number of $22,463,000 is the actual beginning cash balance for 1995. The difference between those is the point in time - the different periods of time in which they were developed. "You might notice, by the way, that there is a small item below that called a residual equity transfer. That relates to our collapsing a couple of small trust funds that were no longer necessary to maintain as separate funds, the Public Defender Program and the Weekend Intervention Programs, into the General Fund. That was the balances of those funds at the time we collapsed them into the General Fund. That is called a residual equity transfer." Mayor Knight Mayor Knight asked, "Is that a determination that has been made in the last couple of months?" Ray Trail Director of Finance answered, "It was a decision that was made and I am sorry - I would have to find out the exact sequence of time." Mayor Knight Mayor Knight said, "When you look at the year end condition of the City, January the 31st, and then you look at March 31st, my point is you have unanticipated cash growing. Do you agree with that? Even if the amounts are shown to be less, the difference between the budget and the projected year-end balance is going from a little over $7 million to projected almost $8.6 million. Is that right?" Ray Trail Director of Finance responded, "Yes, as of the end of 1995, we are projecting that cash will be at about $20,436,000 which is certainly a greater amount, a growing amount, from prior years." Mayor Knight Mayor Knight stated, "Well, there is a substantial disparity even between the year-end figures and what you are showing now. And, some people view that as good. I would much rather be dealing with that than showing losses but there has to be a way of being more on target in terms of projections concerning expenditures and revenues and I think this is one of the ways that one gauges that." Mayor Knight inquired regarding the status of former Mayor Broadfoot's request that the Manager return with a plan as to what recommendations were going to be on using the cash reserves. Chris Cherches City Manager said the City Council talked about this and indicated that the report back should await the new Council. Former Mayor Broadfoot had indicated she wanted Staff to look into using some of the cash balances for an economic development fund, to match and offset the federal grant for additional police officers, and to hold off any mill levy increase that might be anticipated in future years. No action was taken other than the expression of those ideas for consideration. Ray Trail Director of Finance said, "We have another document we call a Financial Plan - a multi-year projection and we have, contained within that, a reprojection of revenues and expenditures so the Council has a preliminary opportunity to look at budgetary issues prior to the point in time that we would submit the proposed budget to you. Included within what we anticipated to be some kind of workshop discussion here in the near future on that, we intended to bring back to the Council the listing of any outstanding issues where there may be a drawdown of cash reserves or utilization of cash reserves." "The Financial Plan will be distributed to the Council today or tomorrow and we can do a workshop as early as next Tuesday." Mayor Knight Mayor Knight stated, "On this budgetary reporting where you have decided to go quarterly instead of monthly - and, obviously, there is financial implication that it saves staff time and saves whatever costs are associated with that - I would be one of seven up here that would generally look at that as a false economy. I am not very impressed with you saving a few thousand dollars at the risk of literally tens of thousands and potentially millions of dollars change in the financial condition of the City. This is accelerated." "I think that we are expected, by the people that vote for us, to have a handle on financial affairs; so, it is my hope that you give us more than we request." "Finally, I would just say that we feel heartened by the award that you and your colleagues received." "Those that are watching ought to know that you have received a very high award for financial reporting and we are proud of that and we think that exhibits distinction in your profession." Council Member Kamen Council Member Kamen said he hoped the surplus also be looked at as a way to relieve some pressure on the Storm Water Utilities and to relieve completely the burglar alarm permit fees. Council Member Ferris Council Member Ferris said, "I thought that when we went to the quarterly statements you told us that you still were generating monthly financials and that those would be available - you just were not printing the documents." Ray Trail Director of Finance answered, "Yes, we still manage the City's financial affairs on a monthly fiscal period and we still generate those reports." "The computer printouts are really not user- friendly to those of us who work with on a regular basis. We could walk an individual through them. We look at them in detail but we do not produce something that would be a readily available and understandable report." Staff was looking at selecting major funds, not all of the more minor funds that are not as material, but the major funds, the two taxing funds, some elements of the larger enterprises, and providing some kind of several page report to the Council on those months in between the quarterlies to try to highlight certain issues. It is felt that with greater automation of work with Staff, the necessity of adding back in accountant positions in order to accommodate that kind of more abbreviated on a monthly basis can be avoided. "We will do it as a test case to the Mayor and Council and get your comments back on whether you feel that is satisfactory." Council Member Ferris Council Member Ferris said all of the property tax distributions are received in January and in July and it looks like all the money is available when it actually is not. Council Member Ferris asked whether it would be possible to show on a month-to-month, or quarter-to-quarter, basis whether the City actually received the money and how it fits with what is expected on a quarterly basis to be distributed. Ray Trail Director of Finance responded, "We had not come up with a methodology that could prorate that out." "The best mechanism we have had for comparison has been to compare the same time last fiscal year with this year." Council Member Ferris Council Member Ferris, regarding the Enterprise Fund, said the retained earnings does not really give a figure of how much cash is actually in the funds that is surplus. Ray Trail Director of Finance said that is one of the reasons why the balance sheet was added back in because the balance sheet can be utilized to provide a quick answer to that kind of question. The Council can be shown so the cash position can be determined. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Knight moved that the Financial Report be received and filed. Motion carried -- carried 6 to 0. (Cather absent) THIRD STREET BRIDGE REMOVAL OF THIRD STREET BRIDGE OVER WICHITA DRAINAGE CANAL. Continued from May 2, 1995. Steve Lackey Public Works Director reviewed the Item. On May 2, 1995, the City Council requested that information be presented on how the removal would affect drainage. Mid-Kansas Engineering Consultants (MKEC) has provided a fact sheet regarding the effects of removing the bridge on the water surface profile and cost factors on various alternatives. The summary of the fact sheet is as follows: Removal of the Third Street Bridge $50,000 Construction of a new pedestrian/bicycle bridge, 12' wide $85,000 Estimated cost of repairing existing bridge and converting it to a pedestrian/bicycle bridge $55,000 Thirty to thirty-five people use the bridge on a daily basis to access the area by Third and Hydraulic. Mayor Knight Mayor Knight inquired if anyone wished to be heard. Robert Hughes Robert Hughes, area resident, said this is a high-crime area and that police use the bridge as a high point, an advantage to observe and spot criminal activity. To remove the bridge would destroy investment in and use of the bridge. Debbie Moore Debbie Moore, CPO Representative for District 1.3, pointed out that with the redevelopment on Third Street, the beauty of the third street area will be enhanced. Ms. Moore asked that if the bridge is removed, residents not be left without a means to get back and forth to the school. Larry Ross Larry Ross expressed agreement with the CPO recommendation of removing the bridge and installing new bicycle and pedestrian bridge. The Stormwater Utility could be the source of funding. Motion -- Rogers moved that the Third Street Bridge be removed and it be replaced with a -- carried pedestrian and bicycle bridge. Motion carried 6 to 0. (Cather absent) OFF AGENDA ITEM RECYCLING. Motion -- Knight moved that the rules be set aside and an Item be taken up off the Agenda. -- carried Motion carried 6 to 0. (Cather absent) Council Member Kamen Council Member Kamen asked the Director of Law to review the Law Department's legal opinion regarding the House Bill and Senate Bill that will be coming up in the near future with regard to recycling. Gary Rebenstorf Director of Law said the Staff of the Law Department and the assistants from outside Counsel have reviewed the proposed legislation. Although the Bills are similar in many respects, and it looks like the Senate Bill is the more favorable bill of the two and probably has the best chance of the two bills. Basically, the bills would amend the Superfund Law to provide a defense for people who arrange for recycling materials. If the legislation were passed, it would be a significant benefit to the City. There would not be any negative impact to the City and it would clarify the defense and would help relieve any concerns that the City would have in regard to any recycling type programs. "It is our opinion that this would be favorable legislation for the City." Motion -- Kamen moved that a Resolution or letter, stating that the City is in favor of the House and Senate Bill being supported, be drawn up for signing by all City Council members who so desire; and that it be sent to each member of the Kansas -- carried Delegation. Motion carried 6 to 0. (Cather absent) RECESS The City Council recessed at 10:30 a.m. and reconvened at 10:40 a.m. NEW BUSINESS MCLEAN BOULEVARD SELECTION OF MCLEAN BOULEVARD ALIGNMENT AND AGREEMENT WITH SCIENCE CENTER BOARD. Council Member Ferris Council Member Ferris reviewed the Item. Agenda Report No. 95-380. On April 18, 1995, in workshop session, the City Council agreed on six options for McLean Boulevard alignment between Taft and Seneca which includes the Science Center. The six options were presented to a Joint CPO Workshop on Wednesday, April 19, 1995. Each CPO Council then took formal action on those options during the week of April 24-28 as follows: CPO Council 1 Approved Option F4 favored, 2 opposed CPO Council 2 Approved Option F7 favored, 1 opposed, 1 abstained CPO Council 3 Tie vote for F 4 favored, 4 opposed CPO Council 4 Approved Option F3 favored, 1 opposed CPO Council 5 Approved Option F6 favored, 3 opposed CPO Council 6 Approved Option F5 favored, 3 opposed On April 20, 1995, following a Joint Meeting of the Traffic Commission/Planning Commission, the Traffic Commission unanimously approved Option C or Option F dependent upon the financial cost of obtaining the necessary right-of-way. The Planning Commission unanimously approved Option F at their meeting of April 27, 1995. Since the public hearings, a seventh alternate (CF) has been developed by the Science Center for your consideration. This alternate eliminates purchase of right-of- way from Watkins Steel, but does present a curvilinear roadway, as opposed to a straight roadway as depicted in Option C and Option F. The Science Center Agreement is a 50-year lease for a nominal fee with the Sedgwick County Public Building Commission. The Sedgwick County Public Building Commission expects to assign its interest to Sedgwick County which will enter into an operating agreement with a non-profit corporation to operate the Science Center and Children's Museum. The Sedgwick County Public Building Commission and Sedgwick County will be responsible for the maintenance and operation of the Science Center for the term of the lease. The improvement of McLean Boulevard, from Taft to Seneca, is included in the Proposed 1995 - 2004 CIP (Project CA 9214) at an estimated cost of $5.16 million. The projected cost breakdowns are over the estimated cost by $77,000 to $4.46 million. Depending upon the selected option, additional funds will have to be approved. If the Council approves the increase in the McLean Boulevard budget, funding for the increased amount will need to be allocated in the 1995-2004 or the 1996-2005 CIP budget. Funding source will be Local Sales Tax. The financing of the Science Center will be through the issuance of bonds by the Sedgwick County Public Building Commission. However, there may be a cost to the City for site preparation for the Science Center. Mayor Knight Mayor Knight inquired if anyone wished to be heard. Phil Frick Phil Frick, Chairman of the Board of Trustees of the Science Center, said the project is by and for everyone in Sedgwick County and south-central Kansas. The Science Center will appeal to everyone in the community. The design follows that of over 200 institutions of this nature throughout this Country and the World which appeal to the broadest possible constituency. The existing Children's Museum will begin, in June of 1995, presentations and displays of matters relating to the creation of the new institution. Mr. Frick urged approval of Alternate CF. Larry Overstreet Larry Overstreet said McLean means many things to many people and spoke against moving McLean. Jeff VanSickle Jeff VanSickle, President of the Downtown Business Association, spoke in favor of moving McLean from the River and of Alternate CF. Mary Lou Rivers Mary Lou Rivers, representing the River West Merchants Association, urged approval of Plan CF. Jim Goolsby Jim Goolsby spoke against the procedures taken in the McLean decision. Mr. Goolsby said he was a property owner in the area that is very much affected by the relocation of McLean Boulevard. Mr. Goolsby owns property along Handley Street and along McLean. "I have been, over the last ten to fifteen years, acquiring property that I had in my mind, in my opinion, to develop it in my own opinion and that is okay. I purchased the property for investment purposes." "I have also attended the major part of the meetings of any time that had to discuss the usage of that particular property. I came to the CPO meeting when we invited the architect for the Science Museum to come and give his recommendation of the location of that McLean. I was also here at that same meeting when at the conclusion of it, it was decided to send to the CPO organizations two plans, basically, to get their recommendations. And then, after those recommendations were made, I was extremely shocked last Friday when I read the newspaper and found out that Mr. Ferris had came up with an alternate plan before the City Commission had even publicly considered the recommendation of the CPO organizations. "So, something else that concerns me very much is the fact, not only was the alternate plan taken but the motivation behind that alternate plan, basically, was because of finances, and Mr. Ferris just mentioned that a moment ago, because of the cost of taking Watkins property. Mr. Ferris, did you consider what cost it was going to take to take my property? My property is equally as valuable as Watkins. I want you to be aware of that. And, I was also told by a couple of Council Members this morning that all affected property owners in the area were contacted prior to this realignment. I have never been contacted concerning any kind of negotiations with the City, whatsoever. So, I have had several opportunities in the past fifteen years to sell my property. I have chosen not to do that because I bought it as an investment to begin with and my investment period is not over at this point. "Secondly, I was also approached by a developer that said that they got my name from the City of Wichita at City Hall that might like to invest in and help me with an investment with my property and I chose not to do that as well because, again, my property is not for sale in 1995. I have kept it for future development and if the City chooses to take it, then I want them to be aware and consider that on the future development cost, if you will. "I would ask the Council, really, to give me the same consideration that, obviously, they have given Watkins. And, that is, Watkins did not want to sell their property, I was told, and then as Mr. Ferris indicated, it was probably too high if they did sell it. Neither do I want to sell my property. So I would ask the Council to make another plan or be prepared to purchase my property at the values that I know that it is worth." Mr. Goolsby said he had not been contacted by the City and he was also told by a couple of Council Members that they were not even aware that the City did not own the property. Council Member Ferris Council Member Ferris said every plan but two would have taken Mr. Goolsby's property. Council Member Ferris said he knew Mr. Goolsby had not been contacted because the alignment had not yet been decided. It is not normally the process to decide to go visit with property owners before an alignment is decided. In all the estimates that were given at the workshop, there are some Handley properties mentioned - most of them belonging to Mr. Goolsby. Mr. Goolsby Mr. Goolsby asked why Watkins was contacted when Mr. Goolsby was not contacted. Council Member Ferris Council Member Ferris explained that Watkins property did not have to be taken in each instance and so it was necessary to contact Watkins to see whether it was worth pursuing an alignment that would necessitate taking Watkins land. Mr. Goolsby's property, on the other hand, was necessary in every alternate. Council Member Kamen Council Member Kamen announced that he was in favor of and urged the approval of the CF Alternate. Council Member Kamen left the Bench. Robert C. Israel Robert C. Israel urged further consideration be given. Money would not be spent wisely on moving McLean Boulevard just to acquire land. Dorothy Billings Dorothy Billings, scientist, spoke against spending $5 million on McLean when money is not spent to hire scientists. There are 100 people with PHDs in chemistry who are laid off in Wichita. The Science Center should be subordinated to uses in its internal center. Council Member Ferris Council Member Ferris explained that the $5 million is not to move McLean but is for normal reconstruction of McLean. The City is not building the Science Center and comments should be taken to the Science Board and County Commission. Mayor Knight left the Bench; Council Member Ferris in the Chair. Jerry Busch Jerry Busch said traffic would be seriously compromised with the new stops and curves. The benefit would be for the few of the museum at the expense of thousands. Also, of the plan to construct into the river, Mr. Busch said there would not be solid footing available. The process should be improved to better include citizens. Mike Dixon Mike Dixon spoke against moving McLean and said the biggest problem would be for routes crossing McLean. Jean Martinson Jean Martinson said the CPO meetings were held with no announcement to the public. Trees in the proposed parking lots will block the view of McLean. David Cook David Cook stated that more public input and a public vote was needed. McLean should connect the Science Center from where it was originally to be placed. Frank Woodman Frank Woodman said this issue has come up more than any other section of road in Wichita. It comes down to putting it in perspective. One-quarter mile is to be covered by something resembling a park. The architect had a problem telling people who were putting up money for the museum that it would not be as attractive as it would be if it were closer to the river. The best thing for the Science Center is to move the road. This subject should be put to rest and if it means a beautiful science center in a 1/4 mile area, then McLean should be moved. Steve Lackey Public Works Director, responding to questions, said McLean would be designed around the existing west bank stage. The area between Seneca and Second Street will probably be signed for 35 miles per hour. One big advantage that this alignment has over some of the alignments is the fact that the intersection at Second street would be taken away McLean away from the bridge and allows for left-turn storage. There was action taken about three years ago to move McLean to the Alternate C alignment. Council Member Ferris Council Member Ferris said the Council is not resurrecting moving McLean as that decision had already been made in 1991. Council Member Ferris said he concern about the Science Center building being constructed in the river corridor and he encouraged the Science Center Board Members to give the architect information regarding how temperamental the Arkansas River actually is. There was a transitional budget approved very early on in discussions with the Science Board that the City would appropriate one year's amount of expenditure for what is currently being spent on the Omnisphere - when the Omnisphere closes - for one year. The Science Board subsequently decided to ask for five years and an agreement has been reached that the City would do approximately two years. Council Member Rogers Council Member Rogers said the Council has consistently tried to indicate the Council's position in terms of minority participation in construction projects and he inquired whether there had been discussion about that aspect of the Council's feelings. Council Member Ferris Council Member Ferris said no discussions were had regarding the actual construction because that will be done by the County. It is believed the Council has policies similar to the City's policies. It is believed it is appropriate for the County to take those actions. Council Member Rogers Council Member Rogers said the City has consistently strongly encouraged minority participation. Mayor Knight Mayor Knight stated that he would be replacing Mayor Broadfoot on the Science Center Board and, "I feel very comfortable in bringing that issue to some form of discussion." "I think most of the people on that Board would, hopefully, be sensitive to that subject." "I am one who is of the opinion that when this is built, and when it is serving the intended purpose, there are people who are going to be expressing appreciation for many years." Council Member Gale Council Member Gale said, "I look forward to the building of the Science Center and Children's Museum as well, and believe that whichever alignment is chosen today would allow for a nice spot for a terrific center museum." Council Member Gale stated that he lives in the southwest part of town and drives along McLean. McLean is an efficient mode of traffic and has a terrific view of the river. Council Member Gale has driven the route the Council is dealing with today often this last month and has wrestled with this issue. Five to seven million cars per year travel McLean. McLean Boulevard was an election issue which Council Member Gale just went through. "Through the campaign, my position was to leave McLean Boulevard where it is. Many people called during the campaign expressing their concerns and asking me where my position was because it was very important to them and so I would always assure them where I was at on that issue." There are financial and economic impacts which are substantial and the money for this project could be used for at least one street project such as an arterial project like Maize, Rock Road, Oliver, or Central. There is a great need for the West Street improvement from Maple to Zoo Boulevard. As of a year ago, West Street was slated to be done in 1996 and 1997; however, it is now slated for the year 2003 and 2004. The project has been pushed back seven years. The impact of this project on other capital improvement projects must be considered. There is appreciation for all the work that has gone in on the project and for the Science Board's preference to have the Science Center on the river. "I would like to think we could still have a great Science Museum on the West Bank with McLean in the current alignment." Motion -- Ferris moved that the proposed realignment from Seneca to Douglas that is depicted in proposal CF be approved, subject to to joint approval of the parties involved in the ground lease between the City and the Sedgwick County Public Building Commission and the agreement between the City and the Science Center, Inc.; the ground lease between the City and the Sedgwick County Public Building Commission; the agreement between the City and the Science Center be approved and the Mayor be authorized to sign the agreements and other necessary documents; and -- carried the Resolution be adopted. Motion carried 4 to 1. Gale - No. (Cather, Kamen; absent) RESOLUTION NO. R-95-210 A Resolution authorizing the issuance of bonds by the City of Wichita at-large for public improvements for the McLean Boulevard from Taft to Seneca Street (472-82586), presented. Ferris moved that the Resolution be adopted. Motion carried 5 to 1. Yeas: Cole, Ferris, Rogers, Knight. Nays: Gale. (Cather, Kamen; absent) EXECUTIVE SESSION Motion -- Knight moved that the Council recess to executive session to consider consultation with legal counsel regarding legal advice; preliminary discussions relating to the acquisition of real property for public purposes; and matters relating to employer- employee negotiations; and the regular meeting be resumed at -- carried 1:30 P.M. Motion carried 5 to 0. (Cather, Kamen; absent) RECESS Council recessed at 12:17 P.M. and reconvened in regular session at 1:37 P.M. Council Members Cather, Rogers; absent. Mayor Knight Mayor Knight announced that no action was necessary as a result of the executive session. ASSESSMENT DEFERRAL APPLICATION FOR AGRICULTURAL DELAY OF SPECIAL ASSESSMENT PAYMENTS. Chris Cherches City Manager reviewed the Item. Agenda Report No. 95-372. The City Council may authorize and provide for delay or an abatement of payment of special assessments for the cost of constructing public improvements subject to conditions and in the manner provided by Charter Ordinance No. 139 adopted October 22, 1991. 1. Delay in commencement of payment of some or all assessments for a period not to exceed 15 years or until property is platted or developed. 2. An additional extension of 10 years may be granted at the conclusion of the 15 years if such property has not developed 50% of its area. 3. All delayed assessments shall be due and payable at such time property is platted or developed or upon expiration of the 15 year designated period or any extension of such period. Undeveloped areas shall mean areas which: 1. are in excess of 2 1/2 acres; 2. have not been platted; 3. are primarily used for agricultural purposes; 4. have a population density of less than one family per acre; and 5. are not served by such public improvement. Whenever the City Council grants delay of payment of assessments, it shall provide for payment of the principal and interest of bonds issued for the payment of the costs of the improvement during period for which such delay is granted by the levy of a tax upon all taxable property of the City in the manner provided for the payment of bonds payable by the City at large. Application received for a 15 year payment delay is as follows: Key No. Project Assessment (principal only) D-589-UP Lateral l7, Main l, $114,168.36 Cowskin Interceptor Sewer Two applications were received one of which did not qualify as parcel was not unplatted and not in excess of 2 1/2 acres. The parcel not qualifying was in the improvement district for the improving of St. Louis, project no. 472-82369. Bonds to finance these projects sell in July, 1995. Delayed assessments shall not be certified to the county clerk upon the adoption of the ordinance levying the assessment. A notice stating that specials have been delayed shall be filed with the Register of Deeds identifying the property and improvement for which assessments were levied. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Kamen moved that the application requesting Agricultural Delay of Special -- carried Assessment payments be approved. Motion carried 5 to 0. (Cather, Rogers; absent) BRITTAIN MACHINE, INC. PUBLIC HEARING AND AMENDMENT OF TAX EXEMPTION ORDINANCE - BRITTAIN MACHINE, INC. (DISTRICT IV) Chris Cherches City Manager reviewed the Item. Agenda Report No. 95-373. On September 21, 1993, the City Council approved a tax exemption for Brittain Machine, Inc. on a $4,171,136 expansion project. The expansion project consists of the construction of a 25,600 s.f. addition to Brittain's manufacturing facility at a cost of $500,000 and the purchase of machinery and equipment at a cost of $3,671,136. The Ordinance adopted by the City Council, granting this tax exemption, incorrectly stated the cost of the building addition to be $250,000. The State Board of Tax Appeals is delaying the issuance of its tax exemption order pending the adoption by the City Council of an amending ordinance to correct the stated cost of the building addition to reflect the intended cost of $500,000. Brittain Machine, Inc., currently has over 148 full-time employees and is presently in the process of adding a total of 116 new jobs since the start of their expansion project in September of 1992. They anticipate the expansion project to take approximately five-years to complete. Brittain Machine, Inc.'s expansion project consists of the following: Construct an additional facility (25,600 sq. ft.) $ 500,000 Purchase 8ea-CATIA Workstations @ $100,000 each $ 800,000 Purchase and install a High Speed Machine $ 576,362 Purchase 5 Axis Horizontal Machine $ 743,525 Purchase CMM Inspection Machine $ 533,923 Purchase and Install a 5 Axis Gantry $1,017,325 TOTAL EXPANSION PROJECT $4,171,136 Brittain Machine, Inc., as part of the current expansion, has already added 50 employees and within the next five years projects the company's employment to be 244. Brittain Machine also expects to purchase additional machinery and equipment, throughout the five-year project, at an estimated cost of $3,671,136. Brittain Machine, Inc., meets the requirements of Article 11, Section 13 of the Kansas Constitution for a property tax exemption as a manufacturer of Aerospace and Aircraft parts. Brittain Machine anticipates the creation of 116 new jobs with an estimated annual payroll of $3,162,900. Under the City's Business Incentives Policy, Brittain Machine is eligible for the following: TAX EXEMPTION CALCULATIONS ELIGIBLE % INCENTIVE EXPLANATION 126% New Job Creation Brittain Machine presently employs 120 full-time employees at its Wichita facility and expects to hire an additional 116 employees by the end of 1997. 36% Capital Investment Brittain Machine expects to invest $4,171,136 of eligible real and personal property into their 2520 S. Sheridan facility. 0% Location Premium Brittain Machine is not locating in an area eligible for this incentive. 162% Total Business Incentives 50% TOTAL FOR BUSINESS INCENTIVES (Maximum allowed is 50%) 50% Export Premium Brittain Machine exports 100% of its products out of the state of Kansas. 50% TOTAL ELIGIBLE FOR EXPORT PREMIUM (Maximum allowed is 50%) 100% TOTAL EXEMPTION ALLOWED UNDER BUSINESS INCENTIVE POLICY Brittain Machine, Inc., is eligible for a 100% tax exemption on real and personal property for five years and a 50% tax exemption on eligible listed real property for years six through ten. A benefit-cost analysis was performed by the University of Kansas Institute of Public Policy and Business Research, showing a 0.8 to 1 overall ratio of benefits to costs. The estimated first year taxes on Brittain Machine's project under the present mill levy on property within the Wichita City limits would be $118,272. Using the allowable tax exemption of 100%, the City would be exempting $118,272 of new taxes from the real and personal property tax rolls. The estimated $118,272 exemption is only on the proposed building expansion (at $500,000)and the purchase of new machinery and equipment. Brittain Machine, Inc., will continue to pay existing real and personal property taxes. The policy exemption equates to $1,020 of exempted taxes per each new job. The tax exemption is shared among the taxing entities as follows: City - $32,631; County/State - $30,881; and USD 259 - $54,760. Council Member Rogers present. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Kamen moved that the Ordinance be placed on first reading. Motion carried -- carried 6 to 0. (Cather absent) ORDINANCE An Ordinance amending Ordinance No. 42-154 exempting property from ad valorem taxation for economic development purposes pursuant to Article 11, Section 13, of the Kansas Constitution; providing the terms and conditions for ad valorem tax exemption; and describing the property of Brittain Machine, Inc., so exempted, introduced and under the rules laid over. INTERNATIONAL ASSOC. 1994 AGREEMENT WITH INTERNATIONAL ASSOCIATION OF FIREFIGHTERS (IAFF) AND OF FIREFIGHTERS REVISIONS TO 1995 SALARY ORDINANCES. Chris Cherches City Manager reviewed the Item. Agenda Report No. 95-374. The City has reached a bilateral agreement with the International Association of Firefighters Union Local 135 for a contract for 1994. The Agreement will be in effect from January 1, 1994 through December 30, 1994. 2.5% wage increase was negotiated. The remainder of the contract remains the same as the 1993 contract. The new pay structure will go into effect on May 20, 1995, with eligible employees receiving their retroactive back pay from January 1, 1994, through May 19, 1995. The will receive their retroactive checks on or about July 7, 1995. As a condition of the retroactive pay, the Union will drop all PERB charges against the City related to both the failure to bargain in good faith and for attorney fees for discovery sanctions. The cost to the General Fund for implementation of the pay increase portion of the IAFF agreement is approximately $195,000. Funding for this pay increase was included in the 1994 budget, which was adopted by the City Council in August, 1993. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Kamen moved that the Agreement be approved and the Mayor be authorized to sign. -- carried Motion carried 7 to 0. Agenda Report No. 95-375. Negotiations have been concluded with an agreement reached with the International Association of Firefighters (IAFF) Union retroactive to January 1, 1994. The attached ordinance is necessary to implement the terms/conditions negotiated and approved. The proposed contract includes a 2.5% wage increase. The new pay structure will be effective May 20, 1995. In addition, a review of position classifications is an ongoing process for the City. With changes in services provided, regulatory requirements, and organizational changes, positions need to be modified accordingly. Negotiations for a multi-year (1995 and beyond) contract are underway and expected to be concluded in the near future. The total cost (retro payment plus impact 5/20/95 through 12/31/95) of the 2.5% agreement is $390,400. [The cost of a 2.5% increase January 1, 1994, through May 19, 1995, is $265,400 (lump/retro payment to be made July 7, 1995). After May 20, the 2.5% increase will be paid via the biweekly payroll through the end of 1995 and will cost about $125,000 (above the 1995 adopted budget)]. A total of $203,690 is included in the 1995 adopted budget for 1994 salaries. The remainder needed ($186,710) will be allocated from the appropriated fund balance reserve. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Kamen moved that the Salary Ordinances implementing the pay changes resulting from the agreement with the IAFF, and the position classification changes be -- carried placed on first reading. Motion carried 6 to 0. (Cather absent) ORDINANCE An Ordinance establishing position classifications for employees of the City of Wichita and prescribing pay rates by reference to position classifications in the schedule of pay ranges repealing Ordinance No. 42-567, introduced and under the rules laid over. ORDINANCE An Ordinance providing for a uniform schedule of standard pay ranges for all employees of the City of Wichita, repealing Ordinance No. 42-568, introduced and under the rules laid over. WATER DISTRIBUTION WATER DISTRIBUTION TAP CARDS - ELECTRONIC RECORD CONVERSION. TAP CARDS David Warren Director of Water and Sewer reviewed the Item. Agenda Report No. 95-376. The Sewer Master Plan Study of May 1992, reported some deficiencies and made recommendations for improvements to the Wichita Sewer Utility System operations and records. On February 15, 1994, the City Council authorized George Butler Associates, Inc. to perform a comprehensive sewer system evaluation and develop a computerized sewer mapping and management system. As part of the Sanitary Sewer Response Plan, Phase I, George Butler Associates (GBA) performed field inspections and prepared a data base for implementation of Automated Mapping/Facilities Management (AM/FM) system along with a Maintenance Management System (MMS). During Phase I, the engineer outlined a phased plan to systematically implement the new computerized system (including conversion of water system records to a computerized format). Included in the Sanitary Sewer Response Plan, Phase II is the implementation of the AM/FM-MMS plan. Initially the Sewer Maintenance and System Planning staff will be brought on-line with the system. This will occur in late August, 1995. With the AM/FM implementation plan, a relocation of the dispatch operation (from Water Distribution) to City Hall will allow for enhanced service and improve emergency operations. Key data that the dispatchers need (to perform their work) are the water tap card records. The proposed water distribution tap card conversion will computerize the approximately 150,000 tap card records, making them accessible to both the Water Distribution staff as well as the dispatch operators in an electronic format. The conversion process will eliminate some filing requirements (reduction in paper flow/and eliminate file cabinets) as well as reduce errors in transmitting information. There are no practical alternatives to converting these records to an electronic format. The City Council may decide to defer this project until the remainder of the water system records are converted to an electronic format scheduled in 1996/97. The cost to convert the existing paper records to computerized records and develop a program for entry of future records that will be compatible with existing City computerized records systems is estimated to be $56,500. Staff recommends that the Water Utility 1995 CIP be amended to include this project, and that the project be funded from the Water Utility Improvement Fund. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Cole moved that the 1995 Water Utility CIP to be amended to include $56,500 for a tap card conversion project; and the Supplemental Contract Agreement with George Butler and Associates for the Water Distribution Tap Card Conversion project be -- carried approved and the Mayor be authorized to sign. Motion carried 6 to 0. (Cather absent) BIOSOLIDS PLAN AMENDMENT OF THE BIOSOLIDS TREATMENT AND MANAGEMENT PLAN. David Warren Director of Water and Sewer reviewed the Item. Agenda Report No. 95-377. On November 9, 1993, the Sludge Treatment and Management Plan was presented and approved by the City Council. The plan outlined recommendations to achieve compliance with United States Environmental Protection Agency (USEPA) regulations governing the use, treatment and disposal of municipal wastewater sludges (40 CFR, Part 503). On December 14, 1993, the City Council adopted the Sludge Treatment and Management Plan. To fund the improvements (recommended in the Plan), Council approved appropriate sewer rate adjustments for 1994, 1995 and 1996. The City Council also approved amended CIPs and operating budgets to implement the Plan. The Plan, as adopted, included a biosolids storage facility (away) from the sewage treatment plant and near the intended application sites. On November 28, 1994, Staff and the City's consultant conducted a public meeting in Peck, Kansas. The meeting's purpose was to explain the City's Biosolids Treatment & Management Plan and receive input from persons living or owning property near the area where the City planned to store and/or recycle biosolids. To protect the City's ability to purchase the most highly ranked site for a biosolids storage facility, an option was signed to purchase 80 acres at the SE corner of Broadway and 111th Street South. [The City paid $7,680 for a one year option on the property which applies to the purchase price of $88,000 if the option is exercised by May 28, 1995.] Since the adoption of the Biosolids Treatment & Management Plan, Staff and the City's consultant have continued to evaluate the economics and options for biosolids storage and transportation. Comments from citizens (living in the target land application areas), from farmers involved in the land application program, and the practical lessons learned have prompted reconsideration of other options including modifying the Plan to construct the biosolids storage facility at Sewage Treatment Plant #2. Economically, the difference in cost between on- site and off-site storage options (initially determined in the adopted Biosolids Treatment & Management plan) has been substantially revised due to the effect of eliminating odor control measures from the proposed on-site biosolids storage facility. The elimination of odor control measures is based on the nature of the biosolids product after all sludge has been digested. The design of the facility will eliminate the possibility of re-wetting the biosolids. The reduction of the putrescible portion of the biosolids and the elimination of re- wetting the biosolids should make odor generation unlikely. Therefore, the City's consultant and Staff believe it is unlikely that odor control measures will be required. However, if needed, odor control measures could be added in the near future. Beyond the economic incentive and advantage to on-site storage and distribution, the on-site storage and distribution plan is advisable for the following reasons: 1. Residents and property owners in the area of the proposed off-site facility are opposed to the land farming of sludge. To avoid continuing conflict and disharmony, other options are proposed. 2. Two farming operations (controlling in excess of 12,000 acres) have indicated they will not participate in the application program if the storage facility is constructed at the selected off-site location. (Both farmers are interested in the application program and are actively participating at this time. The bulk of their land lies within the targeted application area and their participation is seen as a key to the success of the program.) 3. The area residents active in opposing the siting of the Haysville sewage treatment plant have informed Staff that the group has voted to oppose the off-site storage/distribution center. 4. Staff believes there will be some opposition to the actual application of biosolids. Nonetheless, locating the storage facility at the sewage treatment plant will eliminate a new site acquisition for facilities. Such an undertaking would require a special use permit from the County and a KDHE public hearing. An on-site facility leaves only the application, which requires no special use permit or hearing, as a possible point of contention. Land application will be supported by area farmers, the Soil Conservation Service, the County Extension Service, the USEPA, and the KDHE. 5. Staff considered purchasing the selected off-site location and using the land for farming operations. The re-evaluation of options no longer will require the purchase of the property located at Broadway & 111th Street South. 6. Finally, Staff has analyzed the transportation of biosolids to final utilization. Cost of City ownership/operation of transportation equipment compared to contracting this service shows that private hauling by contract can be provided more economically. The land application will continue to be performed by City personnel. To effectively implement the program, some Staff positions will be reclassified; three positions will be eliminated creating a savings of $67,800. The City's consultant recommends the following modifications to the Plan: 1. Construct the biosolids storage and distribution facility at Sewer Treatment Plant #2. 2. Do not exercise option on the 80-acre site at Broadway & 111th Street South. 3. Approve adjustments in Water & Sewer staffing plan and disposal plan amendments. 4. Approve budget adjustments. The adopted CIP and rates for 1995 are adequate to fund the recommended changes. Construction and equipment acquisition costs will be paid from Sewer Utility cash reserves and/or a future revenue bond issue. These expenditures are a part of the approved CIP project S-500. USEPA regulations, 40 CFR Part 503 require municipalities to implement an approved method of sludge use/disposal and to comply with the National Pollutant Discharge Elimination System (NPDES) permit. Failure to comply could result in civil and/or criminal penalties. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Cole moved that the modifications to the Biosolids Treatment & Management Plan and the amendments to the budgets to reflect the changes be approved; and staff -- carried be directed to implement the Plan as amended. Motion carried 6 to 0. (Cather absent) SLUDGE REMOVAL AGREEMENT FOR DRIED LIME SLUDGE REMOVAL. David Warren Director of Water and Sewer reviewed the Item. Agenda Report No. 95-378. The City uses lime in its water treatment process to soften water. The lime reacts with the soluble calcium hardness in the water to form a carbonate precipitate. This carbonate precipitate (lime sludge) has been disposed of at the City's lagoon located at 29th Street North and West Street since 1979. Since 1985, an agricultural lime service company has had an agreement with the City to remove liquid lime sludge from the lagoon, at no cost to the City, and then use it as a soil conditioner. However, one lagoon was filled with sludge before that company had established its market to use the liquid lime sludge. Most of this old lagoon has been abandoned. Lime sludge is created daily by the water treatment process. Before 1979, the City disposed of lime sludge by discharging it into the Arkansas River. However, the adoption of the Clean Water Act in the early 1970's made this practice unacceptable. The first lime sludge lagoon was completed in 1978. Since 1985 an agricultural services company, AG Services, Inc., has successfully marketed the use of the City's liquid lime sludge as a soil conditioner through a process of land application of the liquid lime sludge. The removal of the liquid lime sludge has allowed the City to delay the construction of additional lagoons, and has extended the life of the storage site. In 1990, when the City's first lagoon was full, a new lagoon was constructed, and most of the old lagoon (except where the liquid lime sludge was being extracted) was covered with dirt. Cornelsen Farms, Inc., has requested the opportunity to remove the dried lime sludge that is in the City's original lagoon and market it as a soil conditioner. Removal of this dried sludge will delay the necessity to construct an additional lagoon by allowing the reuse of the lagoon that has already been filled by dried lime sludge. As part of the proposed Agreement between the City and Cornelsen Farms, Inc., Cornelsen Farms has agreed to pay the City $1.00 per ton of dried lime removed, and to take a minimum of 10,000 tons of material. No other enterprises have expressed an interest in the City's dried lime sludge. There are three alternatives that the Council may wish to consider: 1. Approve the Agreement with Cornelsen Farms, Inc. 2. Seek an alternative firm to do this work (there are no other firms using this material.) 3. Do not allow this material to be removed from the City's lagoon. This would be an unnecessary use of the storage space at that site. Cornelsen Farms, Inc., is willing to pay $1.00 per ton for the dried lime sludge, to pay for a minimum of 10,000 tons of dried lime sludge, and to pay $5,000 at the time that it starts removing the dried lime sludge and to provide a surety bond (for site restoration), and to carry liability insurance. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Cole moved that the Agreement be approved and the Mayor be authorized to -- carried execute. Motion carried 6 to 0. (Cather absent) SLUDGE TREATMENT & SLUDGE TREATMENT & MANAGEMENT PLAN - DESIGN AND CONSTRUCTION MANAGEMENT MGMNT. PLAN SERVICES SUPPLEMENTAL AGREEMENT. David Warren Director of Water and Sewer reviewed the Item. Agenda Report No. 95-379. On November 9, 1993 the Sludge Treatment and Management Plan was presented to the Council by staff and representatives of the City's engineer, Brown & Caldwell. The plan outlined recommendations to achieve compliance with United States Environmental Protection Agency (USEPA) regulations governing the use, treatment and disposal of municipal wastewater sludges (40 CFR, Part 503). On December 14, 1993, Council adopted the Sludge Treatment and Management Plan. In order to fund the mandated improvements recommended in the Sludge Treatment and Management Plan, Council approved sewer rate adjustments for 1994, 1995 and 1996. Council also approved an amended CIP and operating budgets. Council has approved four previous supplemental agreements with Brown & Caldwell to wit: pre-design and other engineering services (Supplemental Agreement #1); services related to final design of facilities (#2); services related to the design of emergency sludge storage basins (#3); and construction management services (#4). Staff and the engineer believe it is necessary to replace the existing automation and data acquisition system (SMACS) at the plant. The SMACS system was installed in 1990 as part of the upgrade of STP #2. The system passed a performance test at that time. Nevertheless, the system has never worked properly for any length of time. Staff and the engineer are recommending the conversion of the existing Bristol-Babcock microprocessors to a Programmable Logic Controller (PLC) based system. The engineer estimates that the conversion of the existing SMACS system to a PLC based system will cost $245,663. To date, the cost of engineering services provided by Brown & Caldwell on this project, including all amendments is $4,388,381 ($159,460 for the development of the Sludge Treatment and Management Plan and $609,098; $1,730,000; $9,880; $1,839,879; and $40,064 respectively for amendments 1- 5). The project has a budget of $28,000,000. Which makes engineering services approximately 15.67% of the project budget. This percentage is on the lower end of engineering costs of projects of similar complexity. The proposed supplemental agreement is for $40,064. Staff and the engineer believe, based on the remaining contingency in the project, current level CIP authorization will be adequate to include the recommended engineering and construction of facilities without increasing the project CIP authorization. Further, the approved sewer rates included the project budget and are therefore adequate to fund the recommended changes. The engineering services and construction related activities will be paid for from Sewer Utility cash reserves and/or a future revenue bond issue. These expenditures are a part of CIP project S-500 which has a total current authorization of $25.2 million (1995-97). Sewage Treatment's 1994 operating budget contained $130,000 for additional monitoring/automation at Plant #1. These funds were not spent in 1994 because staff waited until the biosolids project engineering was complete and took a holistic approach to the monitoring/automation project. Since the completion of the biosolids related engineering and the information now known about Bristol-Babcock, Autocon and PLC's this conservative approach was prudent and probably represents $130,000 that was not misspent. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Cole moved that Supplemental Agreement #5 be approved and the Mayor be -- carried authorized to sign. Motion carried 6 to 0. (Cather absent) CITY COUNCIL AGENDA NOTICE OF VACANCY NOTICE OF VACANCY - WICHITA/SEDGWICK COUNTY SOLID WASTE MANAGEMENT COMMITTEE. One vacancy (Rogers), due to the non-attendance of Beatrice Adams, for a term expiring June 30, 1995. The appointment will be made June 6, 1995. NOTICE OF VACANCY - CIVIL RIGHTS AND SERVICES BOARD. One vacancy (Rogers), due to the death of Fred Middleton, for a term expiring June 30, 1995. The appointment will be made June 6, 1995. PROCLAMATIONS PROCLAMATIONS. Historic Preservation Week; Public Works Week; Wichita River Festival '95. Motion -- carried Knight moved that the proclamations be authorized. Motion carried 6 to 0. (Cather absent) CONSENT AGENDA Knight moved that the Consent Agenda, except Items 21, 24, 25, 26, 29, and 30 be approved in accordance with the recommended action shown thereon. Motion carried 6 to 0. (Cather absent) BOARD OF BIDS REPORT OF THE BOARD OF BIDS AND CONTRACTS DATED MAY 1, 1995. At 10:00 a.m., Friday, April 28, 1995, pursuant to advertisements published, bids were received, publicly opened, read aloud and tabulated for the Board of Bids and Contracts: (Ref: Bid analysis report attached to Board of Bids Minutes 5/1/95) PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION: SEWERS, PAVING AND WATER MAINS AS PER SPECIFICATIONS Water Distribution System for Crestview Country Club Estates to serve Overbrook 2nd Addition (north of Central, east of 143rd Street East). (448-88879/732529/470) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 12-13-94) (District n/a) WBW Contractors - $20,132.50 12" Water Line Relocation along Rock Road, north of 13th Street to serve (Rock Road, north of 13th). (448- 88908/633420/544569) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 12-14-93) (District II) Nowak Construction - $27,796.00 Water Line Relocation at the Harry Street Bridge over the Spring Branch of Four Mile Creek (Harry and 159th Street East). (448-88892/633412) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 12-14-93) (District n/a) Dondlinger Construction Company, Inc. - $42,986.00 The Board of Bids and Contracts recommended that the contracts be awarded as outlined above, subject to check, same being the lowest and best bid and within the Engineer's construction estimate. Knight moved that the contracts 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 the contract for the City. Motion carried 6 to 0. (Cather absent) CITY MANAGER/OFFICE OF CENTRAL INSPECTION: DEMOLITION, REMOVAL OF STRUCTURE AND CLEAN-UP OF THIRTEEN (13) RESIDENCES AS PER SPECIFICATIONS Group I - Cornejo & Sons, Inc. - $7,590.00 (Total Net Bid) Group II - Rick's Construction & Excavation - $12,164.00 (Total Net Bid) Group III - Rick's Construction & Excavation - $10,151.00 (Total Net Bid) HUMAN SERVICES DEPARTMENT/WICHITA HOUSING AUTHORITY: LAWN MOWING, TRIMMING, AND EDGING SERVICES AS PER SPECIFICATIONS Vann Enterprises - $11.00 per mowing PUBLIC WORKS DEPARTMENT/FLEET & BUILDINGS DIVISION: REBARAS PER SPECIFICATIONS Concrete Accessories - Item 1 - $.284 per foot - Item 2 - $.135 per foot VARIOUS DEPARTMENTS/VARIOUS DIVISIONS: ELECTRICAL REPAIR SERVICES AS PER SPECIFICATIONS Baldridge Electric, Inc. - $19.35 per hour WATER & SEWER DEPARTMENT/WATER DISTRIBUTION: WATER METERSAS PER SPECIFICATIONS Badger Meter, Inc. - Item 1 - $22.00 per each# - Item 2 - $41.53 per each# - Item 3 - $55.65 per each# - Item 4 - $ 9.50 per each# - Item 5 - $ 9.50 per each# - Item 6 - $14.75 per each# - Item 7 - $ 8.75 per each# - Item 8 - $ 8.75 per each# - Item 9 - $ 8.75 per each# - Item 10 - $ 2.58 per each# - Item 11 - $ 4.03 per each# - Item 12 - $ 5.72 per each# - Item 13 - $10.50 per each# - Item 14 - $11.00 per each# - Item 15 - $18.50 per each# #plus applicable sales tax The Board of Bids and Contracts recommended that the contracts be awarded as outlined above, same being the lowest and best bid. Knight moved that the contracts be awarded as outlined above, same being the lowest and best bid. Motion carried 6 to 0. (Cather absent) PARK DEPARTMENT: GROUNDS MAINTENANCE AS PER SPECIFICATIONS DuBose Lawn Service - $14,250.00 (Total Net Bid)* *Contract had been awarded to Maid in USA, who then breached; contractor is to be removed from all City bidder lists. The second lowest bidder, Wichita Lawn Service, declined due to full schedule. The Board of Bids and Contracts recommended that the contract be awarded as outlined above, same being the lowest and best bid meeting specifications; and Maid in USA be removed from all City bidder lists. Knight moved that the contract be awarded as outlined above, same being the lowest and best bid meeting specifications; and Maid in USA be removed from all City bidder lists. CMB APPLICATIONS APPLICATIONS FOR LICENSES TO RETAIL CEREAL MALT BEVERAGES. Renewal 1995 (Consumption on Premises) E.J. Kuntz Knights of Columbus - FMA3202 W. 13th Trung Quang Nguyen China Palace* 2526 W. 13th Don Norton La Chinita Mexican Restaurant*1451 N. Broadway (Consumption off Premises) David M. Arntzen Osco Drug Store #21478131 E. Kellogg Marvin Wenger Wen's One #14 802 N. West St. New Operator 1995 (Consumption on Premises) Deana L. Herington Family Game Room*4815 E. Pawnee *General Retailer--beer sales derive less than 50% of gross revenues. Motion -- Knight moved that the licenses be approved subject to Staff review and -- carried approval. Motion carried 6 to 0. (Cather absent) PLANS AND SPECS. PLANS AND SPECIFICATIONS. a. Left Turn and Decel Lane on 29th Street North to serve the proposed access point to Pioneer Balloon Addition (north of 29th, east of Oliver). (472- 82495/762716/490374) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 08-09-94) (District II) b. Storm Water Sewer 443 to serve part of Fairfield Estates and Capital Addition (south of 13th, west of Rock). (468-82271/750612/485097) Does not affect existing traffic. (Council approval date 02-28-95) (District II) c. Storm Water Sewer 460 to serve Prairie Woods Addition (north of Pawnee, east of Maize). (468- 82467/750620/485098) Does not affect existing traffic. (Council approval date 03-21-95) (District V) d. Water Distribution System to serve Lark Second Addition (south of Kellogg, east of 119th Street West). (448-88888/732651/470343) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 03-21-95) (District V) e. Water Distribution System to serve Stoneborough Addition (west of Broadway, north of 55th Street South). (448-88906/732610/470339) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 03-14-95) (District IV) 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., May 19, 1995. Motion carried 6 to 0. (Cather absent) PRELIMINARY ESTIMATES PRELIMINARY ESTIMATES. a. Water Distribution System for Crestview Country Club Estates to serve Overbrook Second Addition (north of Central, east of 143rd Street East) - $37,966.44. (448- 88879/732529/470) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 12-13- 94) b. Flood Detention Reservoir #24 (east of Meridian and north of 42nd Street North) - $60,000.00. (468- 82406/750588/485094) Does not affect existing traffic. (Council approval date 7-26-94) (District V) c. 12" Water Main Relocation along Rock Road, north of 13th Street to serve (Rock Road, north of 13th) - $38,000.00. (448-88908/633420/544569) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 12-14-93) (District II) d. Water Line Relocation at the Harry Street Bridge over the Spring Branch of Four Mile Creek (Harry and 159th Street East) - $63,208.00. (448-88892/633412) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 12-14-93) (District n/a) e. Railroad Track Improvements at various locations (1994 Railroad Crossing Program, Phase II) - $250,000.00. (472-82528/710152/410066) Motion -- Knight moved that the preliminary estimates be approved and filed. Motion -- carried carried 6 to 0. (Cather absent) PETITION PETITION (100%) FOR SANITARY SEWER TO SERVE PART OF WESTFIELD ACRES ADDITION (NORTH OF MAPLE, WEST OF TYLER). (District V) Agenda Report No. 95-381. The signatures on the petition represent 100% of the improvement district. Westfield Acres was platted in 1930 and was developed on private septic tank systems. The estimated project cost is $25,000. The estimated cost per lot is $6,250. The funding source is Special Assessments. Motion -- Knight moved that the Petition be approved and the Resolution be adopted. Motion -- carried carried 6 to 0. (Cather absent) RESOLUTION NO. R-95- 211 Resolution of findings of advisability and Resolution authorizing construction of Lateral 30, Main 1, Westlink Sewer, Project No. 468-82474, presented. Knight moved that the Resolution be adopted. Motion carried 6 to 0. (Cather absent) Yeas: Cole, Ferris, Gale, Kamen, Rogers, Knight. BOARD MINUTES MINUTES OF ADVISORY BOARDS AND COMMISSIONS. CPO Northeast Council 1, 4/24/95 CPO East Council 2, 4/24/95 CPO Southeast Council 3, 4/27/95 CPO Southwest Council 4, 4/27/95 CPO Northwest Council 5, 4/26/95 CPO North Central Council 6, 4/26/95 Wichita Employees' Retirement System, 4/19/95 Wichita Historic Preservation Board, 4/18/95, 4/10/95 Wichita Police & Fire Retirement System, 4/19/95 Wichita Public Library, 4/18/95 Wichita/Sedgwick County Alcohol & Drug Abuse Advisory Board, 4/13/95, 4/3/95 Wichita/Sedgwick County Board of Health, 4/13/95 Motion -- carried Knight moved that the Minutes be received and filed. Motion carried 6 to 0. (Cather absent) STREET CLOSURES CONSIDERATION OF STREET CLOSURES. There were no street closures considered. EQUIPMENT PURCHASE PURCHASE OF COMMUNICATIONS EQUIPMENT FOR POLICE DEPARTMENT/COMMUNITY POLICING. Agenda Report No. 95-383. The Police Department requested three portable radios, two mobile radios, four chargers, and three microphones be purchased to support Community Enforcement Unit Policing at a cost of $12,333. The equipment must be compatible to the 800 MHz trunked communications system operated by the Department of Emergency Communications and is available only from Motorola Communications and Equipment. There are sufficient funds available in the current 1995 budget. Motion -- carried Knight moved that the purchase be approved. Motion carried 6 to 0. (Cather absent) SEWER LINE CLEANING 31ST STREET SOUTH INTERCEPTOR SEWER LINE CLEANING SERVICE. Agenda Report No. 95-384. The Master Sewer Study, completed in 1992 by Black & Veatch, recommended that the Water & Sewer Department remove sediment from the sewer system interceptors (large diameter sewer lines) by contracting with private sewer cleaning companies to clean the interceptors. Cleaning of interceptor sewers increases the flow capacity of the sewer system and decreases surcharges and backups. A current sewer system analysis being conducted by George Butler Associates, Inc. has identified the 31st Street Interceptor as needing priority cleaning. Cleaning proposals were requested from numerous sewer cleaning contractors. The four firms responding provided the following quotes for SECTION B of the cleaning: Municipal Pipe Tool Co., Inc. - $60,943.68 Southwestern Underground - $93,713.00 Pipeline Services, Inc. - $99,759.00 Ace Pipe Cleaning, Inc. - $334,080.00 The proposal review group deleted Municipal Pipe Tool Co., Inc. because their cleaning procedure had the potential to cause backups. Although Southwestern Underground's proposal was the next low bid they were not recommended by the proposal review group because treating the sewer sludge removed by the Southwestern procedure would cost the Department an estimated $8,906.00 more in handling and treatment expense then the recommended proposal. Ace Pipe Cleaning, Inc. was deleted due to their high bid. The review group recommends that the City accept the proposal of Pipeline Services, Inc. Cleaning will be requisitioned through the City's Purchasing Department via a Purchase Order. Department purchase of Capital equipment which can clean the larger lines, plus addition of personnel and operational cost at annual estimated cost of $96,500.00. Do nothing and continue to lose flow capacity. Not cleaning would increase the potential of surcharging and resident property damage due to backups. In addition, the condition of the line can not be determined and vital system analysis can not performed without removing the large amounts of sediment in the interceptor. In the 1993/1995 budget process an account in the amount of $90,000.00 was established in the Sewer Maintenance operations and maintenance budget for interceptor cleaning in 1995. Due to the urgent need to clean the interceptor the budgeted account has been increased by $9,759.00 with a Budget Adjustment transferring the needed additional funds from the 1995 Sewer Contingency Fund. City's liability for possible sanitary sewer surcharges and backups resulting from reduced sewer capacity. Motion -- Knight moved that the contract with Pipeline Services, Inc. and a budget adjustment from sewer contingency to contractual services in the Sewer Maintenance 1995 budget in the amount of $9,759 be approved and the Mayor be -- carried authorized to sign the contract. Motion carried 6 to 0. (Cather absent) (Item No. 21) MHRS CONTRACT MENNONITE HOUSING REHABILITATION SERVICES (MHRS) COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) CONTRACT FOR OPERATING FUNDS. Chris Cherches City Manager reviewed the Item and answered questions. Agenda Report No. 95-385. December 30,1994, City Council approved Mennonite Housing's request for a $300,000 housing grant for infill new construction and acquisition/ rehabilitation. The construction will take place within the Community Development Target and Neighborhood Initiative areas. The contract is for 24 months from date of contract and provides for the construction and/or rehabilitation of twenty units of housing. MHRS will develop no less than three units within both sides of a facing block. The units may be any combination of rehabilitation and/or rehabilitation. In addition, MHRS will train and place seven or more job trainees over the life of this contract. Funding for this award will be allocated from the FY 1992 and FY 1993 HOME Investment Partnerships Program Budget. A program of this size is subject to Davis- Bacon Act wage requirements. Motion -- Rogers moved that the Contract be approved and the Mayor be authorized to sign; and an amendment to the 1993 HOME Program Description reflecting the grant award -- carried be approved. Motion carried 6 to 0. (Cather absent) WATER CONSERVATION FUNDING OF TURFGRASS WATER CONSERVATION RESEARCH. Agenda Report No. 95-386. During February of 1992, Dr. Jack D. Fry, Assistant Professor with the Department of Horticulture, Forestry, and Recreation Resources at Kansas State University, approached the City of Wichita Water & Sewer Department with a research proposal. Dr. Fry's intended research had two objectives: 1. Determine turfgrass evapotranspiration (soil evaporation and plant transpiration -- abbreviated to ET) rates in Kansas and evaluate empirical models and atmometers as tools for estimating ET. 2. Evaluate drought resistance and water requirements of commonly used warm season turfgrasses in Kansas. These objectives corresponded with needs that the Water & Sewer Department had in educating the citizens of Wichita about turfgrass water conservation (as required by Efficiency Practices #A.6 and #A.7 of the City Council December 3, 1991 approved Citizens' Water Conservation Committee Recommendations), therefore Dr. Fry's proposal was particularly appealing. Staff knew that the actual water needs of turfgrass under Kansas climatic conditions have never been determined. An agreement for services was drawn up between the City of Wichita and Kansas State University which the City Council authorized the Mayor to sign at the August 25, 1992 regular meeting. The first $10,000.00 disbursement for the research was made on September 3, 1992. The second allocation of $10,000.00 was approved by the City Council on May 4, 1993 and made to KSU on May 19, 1993, while the third $10,000.00 disbursement was authorized by the City Council on May 10, 1994, and given to KSU on May 20, 1994. Actual work on the four year research project was begun during the summer of 1992 and has continued through to the present. A brief summary of the results of that work follows: 1. In both a greenhouse and field study, it was found that the highest root density occurs in the soil at 0 to 12 inches. Total root length for tall fescue was over 39% greater than all warm-season grasses in the field. Root length density of buffalo grass and bermuda grass at 30 to 90 cm was 65% greater than zoysia grass in the field. 2. Under well watered conditions in the field, tall fescue ET (6.6 mm/day-1) was greater than zoysia grass ET (5.9 mm/day-1), which was then greater than buffalo grass (5.1 mm/day-1) and bermuda grass (4.9 mm/day-1) ET. 3. All tools used to predict actual turf ET were relatively effective. The best correlation between predicted ET and actual ET for all four grasses (tall fescue, zoysia grass, buffalo grass, and bermuda grass) was observed with the Bellani plate (R2 = 0.61 to 0.87). The poorest estimates of actual ET were provided by the Penman-Monteith model based on weather data (R2 = 0.35 to 0.69). 4. Zoysia grass irrigated daily and then exposed to a 55 day dry down was more shallow rooted; had lower leaf water and pressure potentials; and exhibited poorer quality than turf that had been irrigated infrequently prior to dry down. Dr. Fry and his students have published this research in the following papers and articles. Please note that credit for support has been given to the City of Wichita each time these works have been published. "Measuring Turf Water Use on Site", September 1993 Grounds Maintenance magazine, Vol. 28, No. 9, pp. 52 - 58. "Estimating Turfgrass Evapotranspiration (ET)", June 1993 *KSU Turfgrass Research Report of Progress 685, pp. 40 - 41. "Rooting Characteristics of Warm-Season Turfgrasses in Kansas", July 1994 *KSU Turfgrass Research Report of Progress 711, pp. 32 - 33. "Effect of Irrigation Frequency on the Drought Resistance of 'Meyer' Zoysia grass", July 1994 *KSU Turfgrass Research Report of Progress 711, pp. 39 - 42. "Water Use Efficiency of New Warm-Season Turfgrass in Kansas", May 1994 Kansas Water Resources Research Institute Report No. G2020-04, Contribution No. 308 for the U.S. Department of Interior Geological Survey. "Estimation of Turfgrass Evapotranspiration Using Atmometers and as Empirical Model", submitted to Crop Science, B. Carran, editor, for publication in 1995. *This publication is given out to all who attend the annual Turfgrass Field days at the KSU turfgrass trial fields in Manhattan, Kansas and Wichita, Kansas. Attendance at the Field days averages around 250 people from all aspects of the turf care industry. Staff has used the results of this research in administering the Water & Sewer Department Retail Volume Conservation Contract Rate agreements with large, seasonal water users; in over 20 educational seminars and talks given during the past two years; and in presentations made to the Toro Irrigation Dealers meetings and the Kansas Irrigation Association. This is the final year of a four year association which has gone well and been of benefit to all parties. Staff continues to believe that it is appropriate and justifiable for the City to complete the funding of this research. The work done has bridged some of the informational gaps and helped the Water & Sewer Department with its task of educating citizens in how to use water efficiently and effectively. This in turn has a direct impact on future water use in Wichita. To date, $30,000.00 of the $40,000.00 budget Dr. Fry requested has been given to KSU. That budget appears below just as Dr. Fry submitted with his proposal: Partial contribution to construction of an automated irrigation system for the Rocky Ford Turfgrass Research Center (1992) $ 10,000.00 Salary ($10,000.00/year) for research technician or graduate student (1993, 1994, 1995) $ 30,000.00 Total $ 40,000.00 The funding has and will continue to come from the budget of the Natural Resources Office (division of Public Works). The funds required to finance the 1995 portion of this research are again available from the Natural Resources' adopted 1995 budget. is recommended that the City Council approve the fourth and final $10,000.00 payment for the funding of Dr. Fry's research. Motion -- carried Knight moved that the allocation of funds be approved. Motion carried 6 to 0. (Cather absent) (Item No. 23) CAMPBELL CASTLE AMENDMENT OF HISTORICAL LOAN FOR CAMPBELL CASTLE. (District VI) Agenda Report No. 95-387. On July 12, 1994, the City Council approved a Letter of Intent to issue industrial revenue bonds (IRBs) to Dr. and Mrs. Terry Lowry for the purpose of financing the restoration of the historic Campbell Castle on West River Boulevard and its conversion to a bed and breakfast inn. The total amount of the IRBs was not to exceed $1.6 million. On August 9, 1994, the City Council approved an Historical Loan to Dr. and Mrs. Lowry in the amount of $190,000. The purpose of the loan is to finance repairs to the foundations, stonework and exterior elements of the Castle's carriage house. It was understood at the time that if necessary, the loan's mortgage on the property would be subordinated to the mortgage required under the IRBs. The financing arrangements are now in place for the issuance of the IRBs, in the amount of $1.2 million. First reading of the bond ordinance was approved on may 2, 1995, with second reading scheduled for this date. In order to safeguard the City's historical loan in the absence of a first lien mortgage on the property, the City is proposing to amend the loan terms to provide an incentive for the timely payment of loan installments. Under the new historical loan provisions, the interest rate on the loan will be temporarily converted to a market rate of 9% in the event that a loan payment is over 120 days past due. The market rate will be in effect retroactively to the date the loan payment became overdue and will continue until the loan payments are brought current. When loan payments have been brought current, the loan rate will convert to its original below-market rate of two percent. In addition to the amended loan agreement, the IRB documents will require that the historical loan payments be current as a condition for the purchase option being exercised by the Lowry's when the IRBs are retired. Also, when the IRBs have been retired, the historical loan mortgage on the property will be restored to a first lien position. The amount of the historical loan, $190,000, is relatively small compared to the amount of the IRBs, $1.2 million. However, without the disincentive that results from the proposed loan amendment, there would be no financial incentive to the payments on the historical loan current. It is expected that the proposed changes will provide such an incentive. Motion -- Knight moved that the amendments to the historical loan agreement be approved and -- carried the Mayor be authorized to sign the necessary documents. Motion carried 6 to 0. (Cather absent) (Item No. 24) PROJECT FREEDOM DRUG/VIOLENCE PREVENTION CONSULTANT. Chris Cherches City Manager reviewed the Item. Agenda Report No. 95-388. In April, 1993, the City of Wichita was notified by the U.S. Bureau of Justice Assistance that it was one of the sixteen communities selected to participate in a new, two-phased, competitive grant program entitled the Comprehensive Communities Program (CCP). Phase I of the program provided the City with a $50,000 planning grant to develop comprehensive crime control strategies which require law enforcement and other governmental agencies to work in partnership with the community to develop solutions to identified problems. Sixteen jurisdictions were selected to participate in the Phase I, planning phase. Communities were invited to submit a competitive Phase II funding application to implement planned strategies. On August 9, 1994, the City Council approved the submission of a Phase II grant application to the U.S. Bureau of Justice Assistance for $2.27 million dollars to implement crime control and community mobilization strategies developed during the Phase I planning process. On February 7, 1995, the Bureau of Justice Assistance approved a Phase II grant in the amount of $1,864,649. The City Council approved the grant award documents on February 28, 1995. The grant provides funding for community policing, community mobilization and prevention initiatives, comprehensive gang initiatives, community (neighborhood) prosecution, drug courts with diversion to treatment and community-based alternatives to incarceration. The grant provides a total of $146,551 for comprehensive anti-gang initiatives. To implement the anti-gang component, a notice of Request for Proposals was published in local newspapers and sent to 42 community agencies. On April 24, 1995, the Staff Screening and Selection Committee unanimously recommended Project Freedom's proposal because of the comprehensive approach presented, the expertise and experience of the staff and the leverage of City grant funds with non-City funds. Project Freedom will assist Wichita Police in identifying at-risk youth and provide positive alternatives to gang participation, train community leaders and neighborhood groups in drug related violence prevention, provide leadership training and anti-gang training to middle and high school youth, train USD #259 staff in risk factor analysis and develop employment opportunities for identified at-risk youth. No local funds or matching funds are required for the grant. Payment to Project Freedom would be on a cost reimbursement basis in an amount not to exceed the grant amount of $146,551. The term of the agreement would be fifteen months starting May 1, 1995, and ending July 31, 1996. The U.S. Department of Justice must approve any consultant prior to execution of a contract. Motion -- Rogers moved that the award to Project Freedom be approved, staff be authorized to negotiate a contract and the Mayor to sign, subject to U.S. Department of __ carried Justice approval. Motion carried 6 to 0. (Cather absent) (Item No. 25) SUBSTANCE ABUSE NEIGHBORHOOD COURT-IN-PATIENT/OUT-PATIENT TREATMENT. Chris Cherches City Manager reviewed the Item. Agenda Report No. 95-389. In April, 1993, the City of Wichita was notified by the U.S. Bureau of Justice Assistance that it was one of the sixteen communities selected to participate in a new, two-phased, competitive grant program entitled the Comprehensive Communities Program (CCP). Phase I of the program provided the City with a $50,000 planning grant to develop comprehensive crime control strategies which require law enforcement and other governmental agencies to work in partnership with the community to develop solutions to identified problems. Sixteen jurisdictions were selected to participate in the Phase I, planning phase. Communities were invited to submit a competitive Phase II funding application to implement planned strategies. On August 9, 1994, the City Council approved the submission of a Phase II grant application to the U.S. Bureau of Justice Assistance for $2.27 million dollars to implement crime control and community mobilization strategies developed during the Phase I planning process. On February 7, 1995, the Bureau of Justice Assistance approved a Phase II grant in the amount of $1,864,649. The City Council approved the grant award documents on February 28, 1995. The grant provides funding for community policing, community mobilization and prevention initiatives, comprehensive gang initiatives, Neighborhood Municipal Court including drug courts with diversion to treatment and community- based alternatives to incarceration. The grant provides a total of $97,182 for drug/alcohol treatment for the drug court component of the Neighborhood Municipal Court. To implement the drug court component, a notice of Request for Proposals was published in local newspapers and sent to 42 community agencies. On April 24, 1995, the Staff Screening and Selection Committee recommended College Hill Wellness, Inc.'s proposal because it offered more flexibility in programming for clients, has the ability to conduct dual diagnosis, included a more versatile proposal and demonstrated knowledge and experience in the field. College Hill Wellness, Inc. will assist the Neighborhood Municipal Court in providing in-patient and out- patient drug/alcohol treatment to selected clients referred by the Court. No local funds or matching funds are required for the grant. Payment to College Hill Wellness, Inc. will be on a unit cost contract in an amount not to exceed the grant amount budgeted for this purpose of $97,182. Clients will be asked to pay for a portion of their treatment costs based on a sliding scale fee. The term of the agreement would be fifteen months starting May 1, 1995, and ending July 31, 1996. The U.S. Department of Justice must approve any consultant prior to execution of a contract. Motion -- Rogers moved that the award to College Hill Wellness, Inc. be approved; staff be authorized to negotiate a contract and the Mayor be authorized to sign, subject -- carried to U.S. Department of Justice approval. Motion carried 6 to 0. (Cather absent) (Item No. 26) CHISHOLM CREEK PARK IMPROVEMENTS TO CHISHOLM CREEK PARK. (District I) Agenda Report No. 95-390. In 1993, $200,000 in general obligation bonds were approved for the project. An additional $35,000 is needed to complete the parking lot. The 1995 CIP provides $35,000 for the Arts Center rehabilitation, P3-District 6, and this project budget is requested to be transferred to Chisholm Creek Park. The Great Plains Nature Center facility, currently under construction at Chisholm Creek Park, is funded by the U.S. Fish and Wildlife Service. The City will provide a paved parking lot and landscaping. Estimated cost to construct the parking lot is $187,000; $32,000 of the total will be provided through federal government funds and the remaining $155,000 will be provided through the City's Capital Improvement Program. Mayor Knight left the Bench; Vice Mayor Kamen in the Chair. Motion -- Rogers moved that the project be approved and the Resolution be adopted. Motion -- carried carried 5 to 0. (Cather, Knight; absent) RESOLUTION NO. R-95- 212 A Resolution finding it necessary to make certain improvements at Chisholm Creek Park and authorizing the issuance of bonds by the City of Wichita at large to finance such improvements, presented. Rogers moved that the Resolution be adopted. Motion carried 5 to 0. Yeas: Cole, Ferris, Gale, Kamen, Rogers. (Cather, Knight; absent) Mayor Knight present and in the Chair. PROPERTY ACQUISITION DONATION OF 5.8 ACRES AND GRANTING OF AN EASEMENT FOR A PEDESTRIAN PATH BETWEEN SWANSON AND BUFFALO PARKS. (District V) Agenda Report No. 95-391. J.W. Russell and the J.W. Russell Construction Company has offered to donate approximately 5.8 acres and to grant an easement over other property located in the southwest quadrant of Central and Maize Road to the City. The Park Department has been working to develop a pedestrian path between Swanson Park, Dillon Lake and Buffalo Park. When completed, the path will connect to the internal paths at both parks, providing several miles of paths through riparian woodlands along and near Cowskin Creek. There are two other easements necessary for the path which have not been formalized, but both owners have verbally agreed to allow the path to be built. Both Swanson Park and Buffalo Park are scheduled for significant improvements in 1995. Swanson Park consists of approximately 93 acres on both sides of the Cowskin Creek in the northwest quadrant of the intersection of Central and Maize Road. Dillon Lake abuts the east side of the Cowskin just south of Swanson Park across Central. Buffalo Park consists of about 38 acres on the east side of Maize Road approximately 1/4 mile south of Central. The Kansas Department of Wildlife and Parks has provided $90,000 in Community Lake Assistance Program grants for the development of a 10+ acre lake in the park. There are approximately $1,200 of property taxes and penalties due on the property for 1993 and 1994 which the City will be required to pay. There are approximately $1,200 of taxes and penalties due for 1993 and 1994. Funds for these amounts will be provided from the Park Department's operating budget. In addition, a survey will be required and there will be closing costs associated with the transaction. Total budget is projected to be $1,200 for taxes and penalties, and $300 for closing costs. Motion -- Knight moved that the donation be approved and the Mayor be authorized to sign -- carried the necessary documents. Motion carried 6 to 0. (Cather absent) PROPERTY ACQUISITIONS PROPERTY ACQUISITIONS a. 8716 W. Kellogg, near Tyler and Kellogg, for West Kellogg Expansion. Agenda Report No. 95-392. Council approved an ordinance declaring Kellogg from 119th Street to Mid-Continent Airport a major traffic-way in July, 1993. The ordinance approved $750,000 for opportunity purchases. The owner of 8716 W. Kellogg, approximately 142 feet east of the northeast corner of Tyler Road and Kellogg Drive, Security Oil Company, Inc., is willing to sell and donate that portion of the property needed for the new improvements proposed for this intersection. The property to be acquired is improved with a vacant 3,555 square foot building most recently used as a restaurant. Security Oil Company, Inc. has agreed to sell 11,535.61 square feet to the City for a negotiated value of $69,231.66 ($6.00 per square foot). In addition, the owner is donating 3,460.37 square feet for right-of-way. The improvements mentioned above are bisected by this sale. The sellers have agreed to split the costs of demolition, estimated at $9,865. The City has purchased two other parcels at near this intersection. In April 1993, Security Oil sold 9,211.58 square feet for $50,664 ($5.50 per square foot) and dedicated an additional 4,676 square feet. This parcel is immediately west of the subject. In December 1994, the City acquired, from BBBR, Inc., 16,849 square feet for $101,195 ($6.00 per square foot) with an additional 9,271.49 square feet dedication. This parcel is on the northwest corner of Kellogg and Tyler. The remainder of this site sold to a third party for $6.00 per square foot. Funds have been budgeted in the 1994 Capital Improvement Program as project F-9401 in the amount of $750,000. This expenditure was approved by Ordinance 42-130, approved in July 1993. A budget of $77,165 in funds includes: $69,232 for acquisition, $4,933 for the City's share of demolition costs and $3,000 for closing costs, title insurance, survey, etc. One other acquisition, totaling $101,510, has occurred under this ordinance. Motion -- Knight moved that the budget and the Contract be approved and the Mayor be -- carried authorized to sign the necessary documents. Motion carried 6 to 0. (Cather absent) b. 4127, 4129 and 4145 E. Kellogg for East Kellogg Improvement Project. Agenda Report No. 95-393. When the opportunity arises, the City of Wichita acquires right-of-way for the East Kellogg Improvement Project. As a Federally funded project, property owners adversely impacted by the planned project can request that the Federal Highway Administration grant them hardship status. This allows the City to enter into negotiations with these owners in advance of the project. One such hardship is located at 4127, 4129, and 4145 E. Kellogg (Lots 708 to 714 and Lots 329 and 330, all in Fairfax Addition to Wichita) and is owned by T & R Investments, Inc. The property has 31,440 square feet of land and 5,555 square feet of improvements in two buildings. The facilities are currently leased by two physicians and a chiropractor. The property was appraised for the City at $340,000. The owner also had the property appraised by a certified appraiser who valued the property at $354,000. A negotiated settlement has been reached for the purchase of this tract at a purchase price of $347,000, the mid-point between the two appraisals. As this acquisition has been approved as a hardship transaction, Federal funds will be available to offset 80% of the the transaction cost. Funds have been budgeted in the 1994 Capital Improvement Program. The funding source will be General Obligation bonds paid by local sales tax revenues. A budget of $397,000 in funds includes: $347,000 for acquisition, $45,000 for eventual demolition and $5,000 for closing costs, title insurance, survey, and relocation costs of the owner. The tenants will also be eligible for relocation benefits but those amounts cannot be calculated under Federal regulations, until such time as actual moving costs can be ascertained. It is intended that the tenants be allowed to continue to lease the facilities until such time as the site is needed for highway construction. Motion -- Knight moved that the budget and the Contract be approved and the Mayor be -- carried authorized to sign the necessary documents. Motion carried 6 to 0. (Cather absent) (Item No. 29) PROPERTY ACQUISITION RIGHT-OF-WAY ACQUISITION: HILLSIDE STREET IMPROVEMENT FROM 27TH STREET NORTH TO 37TH STREET NORTH. Agenda Report No. 95-374. The 1995 Capital Improvement Program includes funding to acquire right-of-way for the Hillside Street improvement, 27th Street North to 37th Street North (MS-463). The project design engineers are identifying properties to be acquired. Specific tracts will be brought back for Council approval on an individual basis. The project is scheduled to be let in 1996. The project budget is $100,000. The funding source is General Obligation Bonds. Chris Cherches City Manager said the land is under five ownerships and it is hoped some land will be donated to the City. Hopefully, not all of the $100,000 will have to be used. Motion -- Rogers moved that the project be approved and the Ordinance be placed on first -- carried reading. Motion carried 6 to 0. (Cather absent) ORDINANCE An Ordinance declaring Hillside, from 27th Street North to 37th Street North (472-82582) to be a main trafficway within the City of Wichita, Kansas; declaring the necessity of and authorizing certain improvements to said main trafficway; and setting forth the nature of said improvements, the estimated costs thereof, and the manner of payment of same, introduced and under the rules laid over. (Item No. 30) PROPERTY DISPOSITION DEMOLITION OF THE F.W. WOOLWORTH BUILDING. (District VI) Agenda Report No. 95-375. On August 17, 1993, the City Council approved the purchase of the F.W. Woolworth Building at 205 East Douglas. The acquisition of this property allows for demolition of the existing vacant structure to create an area for a "Vest Pocket" park. The park is being designed by Gossen Livingston Assoc., Inc. and will be built with private donations. The park will add amenities to the State Office Building and provide an outdoor area for workers and visitors in the downtown area. On July 12, 1994, the City Council approved the contract for demolition with Cornejo & Sons, Inc. Demolition of the F.W. Woolworth building was not started until January of 1995 to allow the construction of two-way Main Street and other street projects in the core area to be completed. This was done to minimize further street closings in the core area. During demolition, it became obvious that unforeseen conditions of the adjacent buildings needed to be investigated. The City engaged Carmichael Associates P.A. and Hartwell Structural Engineering to do an investigation and prepare a report and recommendations on the structural integrity of the adjacent buildings. The recommendations of the architect and engineer are to provide structural reinforcement to the adjacent buildings. Plans and specifications were prepared and given to the demolition contractor for a cost proposal. The cost proposal received from Cornejo & Sons Inc. was $65,601. City Council Policy states "no Change Order" in excess of $10,000 shall be approved if the amount of the "Change Order" exceeds twenty-five percent (25%) of the original bid. The cost estimate of $65,601 is 43.6% of the original bid therefor the extra work as recommended by the architect and engineer must be formally bid. An initial budget of $302,500 (Project #435- 106) was established as follows: $145,000 for property purchase, $150,000 for demolition and asbestos abatement, $7,500 for an environmental audit, filing fees, title insurance and other miscellaneous charges as required. An available appropriation of $2,244.54 remains. An additional $75,000 is required for bid documents and construction. The Law Department has prepared an amended Resolution for that amount. Council Member Rogers Council Member Rogers said it looks like incomplete information was received and that all information could have been received in the beginning. Chris Cherches City Manager said complete information on the structural integrity of the adjacent structures was not included in the specifications. This will be done in the future. Motion -- Rogers moved that the Resolution be adopted and Staff be authorized to solicit -- carried formal bids. Motion carried 5 to 1. Ferris - No. (Cather absent) RESOLUTION NO. R-95- 213 A Resolution amending Resolution No. R-94-286 approving the acquisition of certain real property generally located south of Douglas Avenue, north of Kellogg, east of the Arkansas River, and west of Broadway, in the City of Wichita, Kansas, and declaring it to be the intention of the governing Body to issue General obligation Bonds of the City of Wichita in an amount not to exceed $402,500, presented. Rogers moved that the Resolution be adopted. Motion carried 5 to 1. Yeas: Cole, Gale, Kamen, Rogers, Knight. Nays: Ferris. (Cather absent) STREET LIGHTING STREET LIGHTING RESOLUTION #2-95. Motion -- carried Knight moved that the Resolution be adopted. Motion carried 6 to 0. (Cather absent) RESOLUTION NO. R-95- 214 A Resolution authorizing and directing Kansas Gas and Electric, a Western Resources Company, to install and/or change certain street lights in the City of Wichita, Kansas, presented. Knight moved that the Resolution be adopted. Motion carried 6 to 0. (Cather absent) Yeas: Cole, Ferris, Gale, Kamen, Rogers, Broadfoot. 2-95 ORDINANCES SECOND READING ORDINANCES. (First Reading 5/2/95) Motion -- Knight moved that the Letter of Intent dated July 12, 1994, from the City of Wichita to Dr. and Mrs. Terry L. Lowry be ratified, approved, and reissued; and the Bond Ordinance be placed on second reading and adopted. Motion carried -- carried 6 to 0. (Cather absent) ORDINANCE NO. 42-778 Castle Inn - IRB. An Ordinance of the City of Wichita, Kansas, authorizing the issuance of $900,000 aggregate principal amount of taxable Industrial Revenue Bonds, Series I-A, 1995 (The Castle Inn Riverside) and $300,000 aggregate principal amount of subordinated taxable Industrial Revenue Bonds, Series I-B, 1995 (The Castle Inn Riverside) for the purpose of providing funds to acquire certain land and to purchase, construct, and equip a bed and breakfast inn; prescribing the form and authorizing execution of a trust indenture by and between the City and the Peoples Bank, Pratt, Kansas, as trustee with respect to each series of the bonds; prescribing the form and authorizing the execution of a lease agreement by and between the City and The Castle Inn Riverside, L.L.C.; approving the form of a guaranty agreement; approving the form of an individual guaranty agreement; authorizing the execution of a bond purchase agreement by and between the City, the Castle Inn Riverside, L.L.C., and Chapman Securities, Inc., as purchaser of the Series I-A, 1995 Bonds and the Series I-B, 1995 Bonds, read for the second time. Knight moved that the Ordinance be placed upon its passage and adopted. Motion carried 6 to 0. (Cather absent) Yeas: Cole, Ferris, Gale, Kamen, Rogers, Knight. ORDINANCE NO. 42-779 A 95-5. 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, read for the second time. Knight moved that the Ordinance be placed upon its passage and adopted. Motion carried 6 to 0. (Cather absent) Yeas: Cole, Ferris, Gale, Kamen, Rogers, Knight. A- 95-5 ORDINANCE NO. 42-780 Z-3111 An Ordinance changing the zoning classifications or districts of certain lands located in the City of Wichita, Kansas, under the authority granted by Section 28.04.210, the Code of the City of Wichita, Kansas, read for the second time. Knight moved that the Ordinance be placed upon its passage and adopted. Motion carried 6 to 0. (Cather absent) Yeas: Cole, Ferris, Gale, Kamen, Rogers, Knight. Z-3111 PLANNING AGENDA Z-3163 Z-3163 - ZONE CHANGE REQUEST FROM THE "A" TWO-FAMILY DWELLING DISTRICT TO THE "BB"OFFICE DISTRICT, LOCATED AT THE SOUTHWEST CORNER OF ORCHARD AVENUE AND HOLYOKE AVENUE. (District I) Marvin Krout Director of Planning reviewed the Item. Agenda Report No. 95-396. Staff Recommendation: Approve, subject to platting within one year. MAPC Recommendation: Approve, subject to replatting within one year, and filing of the voluntary restrictive covenant. Motion -- Rogers moved that having reviewed the record of hearing before the MAPC and in accordance with Policy No. 10 of the MAPC previously adopted by this Board, and having reviewed the factors contained therein and the factors stated by the MAPC, the recommendation of the MAPC be approved, subject to the recommended conditions, and the Planning Department be instructed to forward the Ordinance for first reading when the plat is forwarded to the City Council. Motion carried -- carried 6 to 0. (Cather absent) Z-3165 Z-3165 - ZONE CHANGE REQUEST FROM THE "AA" ONE-FAMILY DWELLING DISTRICT TO THE "A" TWO-FAMILY DWELLING DISTRICT, LOCATED SOUTH OF 11TH STREET ON THE EAST SIDE OF RICHMOND. (District VI) Marvin Krout Director of Planning reviewed the Item. Agenda Report No. 95-397. Staff Recommendation: Approve, subject to completing a lot split for both lots within one year. MAPC Recommendation: Approve, subject to completing a lot split for both lots within one year. Motion -- Cole moved that having reviewed the record of hearing before the MAPC and in accordance with Policy No. 10 of the MAPC previously adopted by this Board, and having reviewed the factors contained therein and the factors stated by the MAPC, the recommendation of the MAPC be approved, subject to the recommended conditions, and the Planning Department be instructed to forward the Ordinance for first reading when the plat is forwarded to the City Council. Motion carried -- carried 6 to 0. (Cather absent) EXECUTIVE SESSION Motion -- Knight moved that the Council recess to executive session to consider consultation with legal counsel on matters privileged in the attorney-client relationship relating to legal advice; matters relating to employer-employee negotiations; and the regular meeting be resumed no later than 2:50 P.M. in the -- carried City Council Chambers. Motion carried 7 to 0. RECESS Council recessed at 2:30 P.M. and reconvened in regular session at 2:50 P.M. Mayor Knight Mayor Knight announced that no action was necessary as a result of the executive session. ADJOURNMENT The City Council meeting adjourned at 2:50 P.M. Pat Burnett Deputy City Clerk JOURNAL 158 MAY 9, 1995 Page 1