MINUTES OF THE MEETING OF THE CITY COUNCIL Wichita, Kansas, August 14, 2001 Tuesday, 9:05 A.M. The City Council met in regular session with Mayor Knight in the Chair. Council Members Brewer, Fearey, Gale, Lambke, Martz, Pisciotte, present. Chris Cherches, City Manager; Gary Rebenstorf, Director of Law; Pat Burnett, City Clerk; present. Daisy Kabagarama, Christian, gave the invocation. The pledge of allegiance to the flag was participated in by the Council Members, staff, and guests. Minutes -- approved The Minutes of the regular meeting of August 7, 2001, were approved 7 to 0. PUBLIC AGENDA Pam Doffing - Riverside Wellwater Homeowners Association Appreciation. Pam Doffing Pam Doffing expressed appreciation for Council Member Gale’s leadership in cleanup in the south part of Wichita; for water from the City of Wichita; and to the Mayor for reduced electric bills. Ms. Doffing said 55th Street South does need some attention. NEW BUSINESS STREETSCAPE DESIGN CONCEPT AND SUPPLEMENTAL AGREEMENT FOR WEST DOUGLAS STREETSCAPE, MCLEAN TO SENECA. (District IV) Mike Lindebak City Engineer reviewed the Item. Agenda Report No. 01-0917. On January 4, 2000, the City entered into an Agreement with McCluggage, VanSickle & Perry Architects (MVP) to develop a design concept and cost estimate for the West Douglas Streetscaping project from west of McLean Blvd. to Seneca. MVP held numerous meetings with the Delano Business Association, Delano Neighborhood Association, and the Delano Clergy Association in the development of parameters and design concept options. The final concept was approved by these groups, as well as by the Design Council and the District IV Advisory Board. This final design report has been submitted to the City. The recommended design provides for reconstruction of the street with one (wider than normal) traffic lane in each direction, a round-about at Sycamore, diagonal parking, period street lighting, new sidewalk paving with landscaping, and district gateway features at each end of the project. The City Council is asked to approve the design concept; and to approve the Supplemental Agreement for the balance of the design and construction documents, including construction administration to be performed by MVP and their sub-consultants. Proceeding with completion of the bid documents at this time will allow construction of the project in 2002 and 2003 as programmed in the CIP. The 2001-2010 CIP has $250,000 for the design of the project, which was authorized on November 9, 1999 by the City Council. The proposed Supplemental Agreement is for $207,500. Mayor Knight Mayor Knight inquired if anyone wished to be heard. Mary Lou Rivers Mary Lou Rivers, Delano area business owner, expressed appreciation for City staff assistance. Ms. Rivers said she would like to see the Delano area become a destination and not just a drive-through area. Jack Kellogg Jack Kellogg, President of the Delano Business Association, stated that the streetscape program was thoroughly researched. Many towns and business associations were contacted to learn success and failures of the proposed street and parking arrangement. Consensus of the business owners was approval of the plan. Mr. Kellogg urged approved of the plan in its entirety. Council Member Martz Council Member Martz spoke in favor of the project with the exception of angle parking and one-lane two-way traffic. Motion -- Gale moved that the design concept and supplemental Agreement be approved; and the necessary -- carried signatures be authorized. Motion carried 6 to 1. Martz - No. TIF DEV. DISTRICT RESOLUTION CONSIDERING ESTABLISHMENT OF A TAX INCREMENT FINANCING REDEVELOPMENT DISTRICT, CENTRAL AND HILLSIDE AREA. (Districts I and II) Allen Bell Financial Projects Director reviewed the Item. Agenda Report No. 01-0918. Local developers, led by Steve Barrett of Weigand & Sons, are proposing a mixed-use commercial development project on property owned by the group at the corner of Central and Hillside in east Wichita. This development is planned concurrently with the Wesley Hospital expansion of hospital facilities that will require the displacement of the Wesley Motor Hotel from its current location at 3258 East Central. To facilitate the hospital expansion and assisting in the redevelopment of a deteriorating commercial area, Wesley Hospital along with local developers have requested the establishment of a redevelopment district and the use of tax increment financing. Tax increment financing (TIF) allows the increased property tax revenue that results from the redevelopment of property in a deteriorating area to be reinvested in the redevelopment. When a TIF district is established and a redevelopment plan is adopted by City Council, the increased tax revenue is set aside by the County Treasurer and can be used by the City to repay bonds issued to finance certain improvements that are specified in the redevelopment plan. The first step in establishing the tax increment district is the adoption of a Resolution which states that the City Council is considering the establishment of the TIF district and sets the date for a public hearing on the matter. The Resolution directs the City Clerk to publish the Resolution in the City’s official newspaper and to mail copies to the owners and occupants of all property located within the district, by certified mail. The Resolution also includes a map of the proposed district and a proposed comprehensive plan identifying potential redevelopment project areas and a general description of buildings and facilities to be constructed or improved. The cost of mailing the Resolution to all owners and occupants of property located within the district will be charged to Economic Development Trust Fund and will be ultimately financed with TIF revenues. The actual establishment of the tax increment financing district will not be effective until the City Council adopts an ordinance for that purpose, following the aforementioned public hearing. The County Commissioners and the School Board will have 30 days following the establishment of the district to determine whether it will have an adverse impact. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Brewer moved that the Resolution setting a public hearing for 10:30 a.m., September 18, 2001, be -- carried adopted. Motion carried 7 to 0. RESOLUTION NO. 01-330 A Resolution stating the City of Wichita is considering the establishment of a Redevelopment District for the Central and Hillside Redevelopment District under authority of K.S.A. 12-1770 Et Seq., presented. Brewer moved that Resolution be adopted. Motion carried 7 to 0. Yeas: Brewer, Fearey, Gale, Lambke, Martz, Pisciotte, Knight. HOUSING BOARD RESTRUCTURING HOUSING AUTHORITY BOARD. Chris Cherches City Manager reviewed the Item. Agenda Report No. 01-1919. In 1998, Congress passed The Quality Housing and Work Responsibility Act which required the board of directors or similar governing body of a public housing agency to have at least one member who is directly assisted by the Public Housing Agency (PHA). The Final Rule for this requirement by HUD became effective on November 22, 1999. In response to this requirement the City established the Housing Advisory Board on January 9, 2001, which provides review and recommendation on all programs provided by the Housing Services Department. The City informed HUD of the board restructuring.. HUD recently determined that the Advisory Board was not a governing board under the new rules and subsequently rejected the board composition and authority as meeting the requirements of the Rule. To be approved by HUD, it is recommended that the City Council continue to serve in the capacity of the Housing Authority with existing City Council members serving as the governing body, along with an additional member who is the resident appointee. When the City Council is serving as the Housing Authority, the additional member will be invited to participate in the decisions/actions of the Authority. It is also recommended that the Housing Advisory Board continue in its existing role as advisory to the City Council acting as the Housing Authority of Wichita. The proposed Charter Ordinance creates the Wichita Housing Authority Board and establishes the members of the City Council as the members of the Board, along with a resident appointed by the mayor, with the approval of the City Council, who receives direct housing assistance from the City of Wichita. If this Charter Ordinance is enacted, the City Council will meet as the Housing Authority Board at a designated time in conjunction with a regular Council meeting. The resident member will join the Council for such meetings and participate in any and all business that comes before the Housing Authority Board. HUD has indicated that such an arrangement would be approved as being in compliance with the Final Rule pertaining to housing authority boards. The members of the Housing Authority Board serve without compensation. Staff support for this board will be provided by the City utilizing existing personnel. The amendment has been prepared and approved as to form by the Law Department. This is a Charter Ordinance and requires a 2/3rds majority vote for passage. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Knight moved that the restructuring of the Wichita Housing Authority be approved and the Charter -- carried Ordinance be placed on first reading. Motion carried 7 to 0. CHARTER ORDINANCE A Charter Ordinance exempting the City of Wichita, Kansas from the provisions of K.S.A. 17-2341, and providing substitute and additional provisions on the same subject pertaining to the establishment of the Housing Authority Board of the City of Wichita, Kansas, and establishing the membership thereof, introduced and under the rules laid over. BUDGET PUBLIC HEARING ON 2002 ANNUAL OPERATING BUDGET AND REVISIONS TO THE 2001 BUDGET. Ray Trail Director of Finance reviewed the Item. Agenda Report No. 01-0920. The City Council has received public comments on the proposed 2002/2003 budgets. On July 24, 2001, the City Council authorized the publication of the hearing notices, and set the maximum mill levy for the 2002 City budgets. 2002 Operating Budget. The proposed 2002 annual operating budget has been published at $363,420,060. Interfund transactions and appropriated fund balances increase this amount to $472,330,140. The inclusion of the expendable trust funds, as required by State Law, is an additional $46,443,050 for a total of $518,773,190. As published, the budget will necessitate a mill levy of 31.359, no change from the levy requirement for the 2001 adopted budget. The General Fund property tax levy is $46,952,520 (including a delinquency allowance) at an estimated 21.359 mills. The levy for the Debt Service Fund is $21,982,550 (including a delinquency allowance) and is estimated at 10.000 mills. The proposed budget for the Self-Supported Municipal Improvement District (SSMID) for downtown requires a tax levy of $484,690. The estimated mill levy rate is 7.8 mills. Jointly Funded Budgets. The General Fund includes City of Wichita contributions to the jointly funded City-County budgets, as identified in the table below. City Share County Share Revenue Total Flood Control 720,470 720,470 0 1,440,940 Community Health 2,725,960 1,817,320 435,500 4,978,780 Metropolitan Area Planning 629,440 629,440 263,680 1,522,560 It is necessary for the City Council to approve joint agreements to continue these functions. The County Commission is expected to likewise approve the County share of these functions. 2001 Revised Budget. Some revisions in the 2001 budget are proposed. Increased expenditure authorizations are needed for eight funds. All revisions have been incorporated into the proposed 2002/2003 budget document as "2001 revised" amounts. 1. The Debt Service Fund (DSF) is increased $24,248,430. Temporary note financing was increased to allow the retirement of debt on a pay-as-you-go basis, and to provide up-front financing for a cash defeasance that will take advantage of favorable markets and save the City money by reducing future debt service obligations. Appropriated reserves are included to provide flexibility for additional capital projects. 2. The Tourism and Convention Fund (T&C Fund) is increased $375,370, reflecting the net impact of the Tourism Initiative and reprogramming unexpended project funds for Century II/Expo Hall. The Tourism Initiative includes additional funding for the Wichita Convention and Visitors Bureau, tourism research and marketing," and development of a community tourism website. 3. The Special Alcohol Programs Fund increases $552,070 for research and development incentives to encourage innovation and new ideas from providers in service delivery to treatment clients. These resources will be distributed in conjunction with the outcomes measurement process. 4. The Gilbert and Mosley Tax Increment Financing (TIF) Fund increase of $5,359,480 is due to acceleration of the project's construction schedule, per City Council approval, and the addition of several new amenities (education center, interpretive stream, aquarium). Some increases are also related to legal fees required to collect contributions from potentially responsible parties (PRPs). 5. The North Industrial Corridor TIF Fund increases $183,250 to provide a reserve in the fund for future debt service needs associated with remedial design/construction. Holding this amount for future needs will ensure that debt issuance is minimized in the latter half of the project term, thereby reducing pressure to increase revenue from the TIF (property taxes). 6. The East Bank ($13,650), Old Town ($67,190), and 21st and Grove ($4,360) TIF Funds increases are due to a re-projection of TIF revenue production based on history and revised district growth models. 7. The Sewer Utility Fund increase of $2,463,090 is due to increased operational and capital expenditures related to the acquisition of the County Sewer District facilities (including 4-Mile Creek). 8. The Water Utility Fund increase of $1,184,060 relates to revised debt service numbers for new and accelerated projects, such as the Water Distribution facility relocation and the East Pressure Zone project. System growth on the outskirts of the City has accelerated the need for some critical supply and distribution projects. 9. The Information Technology Fund (IT) is being amended $1,967,780 due to several technology projects, including a replacement Local Area Network (LAN), additional services provided in support of Mini City Halls, positions transferred from Finance and Library, and implementation of the Tourism Initiative web site. 10. The Equipment Motor Pool Fund (Fleet) is increased $4,964,640. Due to the continuing fluctuation in fuel prices, a contingency of $500,000 is included for increased fuel costs. Also, to provide consistency in fund presentations, $1 million is included for the cost of materials purchased by Central Stores (for resale to other City operations). Finally, appropriated reserves are included to fund implementation of the Fleet Study once an implementation plan has been developed and approved. 11. The Stationery Stores Fund requires an additional $182,230 due to increased utilization of the centralized stores function and increased costs for outside services. The increase is substantially offset by higher revenues. Publication of the notice of formal hearing on August 3 set the maximum dollars that may be expended in each fund. The City Council may reduce expenditures required (and proposed tax dollars to be levied) but not increase expenditures previously established. Publication requirements of State law for the final (formal) public hearing have been met. Appropriate disclosure is included within the ordinance of property tax increases not related to assessed value added by improvements, appreciating personal property and/or annexation. Following final Council action on the proposed budget, proper certification will be made of the property taxes to be levied in conformity with State law. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Knight moved that the public hearing be closed; the 2002 budget (including revisions, amendments to the 2001adopted budget) the joint agreements with Sedgwick County; the use of local funds for WSU, and tax increment financing for Gilbert and Mosley, North Industrial Corridor and SSMID be approved; the necessary signatures be authorized, and the Ordinances be placed on their passages and adopted. -- carried Motion carried 7 to 0. ORDINANCE NO. 45-024 An Ordinance making and fixing general tax levy for the City of Wichita, Kansas for the year beginning January 1, 2002, and ending December 31, 2002, and relating thereto, and concurrently approving certain amendments to the 2001adopted budget, read for the second time. Knight moved that the Ordinance be placed upon its passage and adopted. Motion carried 7 to 0. Yeas: Brewer, Fearey, Gale, Lambke, Martz, Pisciotte, Knight. ORDINANCE NO. 45-025 An Ordinance making and filing an increment in Ad Valorem Taxes for the Gilbert and Mosley Site Redevelopment District, City of Wichita, Kansas, for the fiscal year beginning January 1, 2002, and ending December 31, 2002, read for the second time. Knight moved that the Ordinance be placed upon its passage and adopted. Motion carried 7 to 0. Yeas: Brewer, Fearey, Gale, Lambke, Martz, Pisciotte, Knight. ORDINANCE NO. 45-026 An Ordinance making and filing an increment in Ad Valorem Taxes for the North Industrial Corridor Redevelopment District, City of Wichita, Kansas for the fiscal year beginning January 1, 2002, and ending December 31, 2002, read for the second time. Knight moved that the Ordinance be placed upon its passage and adopted. Motion carried 7 to 0. Yeas: Brewer, Fearey, Gale, Lambke, Martz, Pisciotte, Knight ORDINANCE NO. 45-027 An Ordinance making and fixing general tax levy for the Downtown Wichita Self-Supported Municipal Improvement District for the year beginning January 1, 2001, and ending December 31, 2001, read for the second time. Knight moved that the Ordinance be placed upon its passage and adopted. Motion carried 7 to 0. Yeas: Brewer, Fearey, Gale, Lambke, Martz, Pisciotte, Knight. CITY COUNCIL AGENDA APPOINTMENTS APPOINTMENTS Motion -- carried Gale appointed Sue Davis, (Solid Waster Management). Motion carried 7-0. CONSENT AGENDA Knight moved that the Consent Agenda, be approved in accordance with the recommended action shown thereon. Motion carried 7 to 0. BOARD OF BIDS REPORT OF THE BOARD OF BIDS AND CONTRACTS DATED AUGUST 13, 2001. Bids were opened August 10, 2001, pursuant to advertisements published on: Lateral 7, Main 2, Cowskin Interceptor Sewer to serve Auburn Hills 11th Addition - north of Kellogg, east of 151st Street West. (468-83296/743879 /480567) Does not affect existing traffic. (District V) WB Carter Construction - $24,631.00 Water distribution system to serve Auburn Hills 11th Addition - north of Kellogg, east of 151st Street West. (448-89600/735021/470691) Does not affect existing traffic. (District V) WBW Contractors - $19,528.00 33rd Street North from the east line of Coolidge to the east line of Porter North to serve Pleasant Valley Addition, Riverdale Addition, and Unplatted Tracts - east of Amidon, north of 29th Street North. (472-83199/765625/ 490736) Traffic to be maintained during construction using flagpersons and barricades. (District VI) Kansas Paving Company - $117,873.50 Porter, from the north line of 33rd Street North to the south line of 34th Street North to serve Riverwalk, Amberg, Kutilek, Fellers, and other Additions - east of Amidon, north of 29th Street North. (472-83302/765661 /490772) Traffic to be maintained during construction using flagpersons and barricades. (District VI) Kansas Paving Company - $36,097.00 30 inch water supply line in 21st Street North: 143rd East to 159th East - 21st Street North from 143rd East to 159th East. (448-89599/633730/750001) Traffic to be maintained during construction using flagpersons and barricades; 24 inch water supply line in 159th Street East from 21st Street North south 1/2 mile - 159th Street East from 21st Street North south 1/2 mile. (448-89599/633732/750003) Traffic to be maintained during construction using flagpersons and barricades; AND 16 inch water supply line in 21st Street North from 159th Street East to 1100 ft. east of 159th - 21st Street North east of 159th Street East. (448-89599/633731/750002) Traffic to be maintained during construction using flagpersons and barricades. (District County) WB Carter Construction - $749,310.00 (Total aggregate bid) Knight moved that the contract(s) be awarded as outlined above, subject to check, same being the lowest and best bid within the Engineer's construction estimate, and the and the necessary signatures be authorized. Motion carried 7 to 0. VARIOUS DEPARTMENTS: Cab and Chassis with Various Bodies. (130807) Roberts Truck Center - $113,720.00 (Group 1/item 1 total 1) $ 205.00 (Group 1/item 1/option 1/per each/per vehicle) $ 595.00 (Group 1/item 1/option 2/per each/per vehicle) $ 525.00 (Group 1/item 1/option 3/per each/per vehicle) $ 140.00 (Group 1/item 1/option 4/per each/per vehicle) $ 22,759.00 (Group 1/item 1/option 7/per each/per vehicle) <$ 20,000.00> (Group 1/item 1/option 8/lump sum ) <$ 22,000.00> (Group 1/item 1/option 9/lump sum (Group 2/item 1/option 7/lump sum ) $160,938.00 (Group 3/item 1/per each total) <$ 12,500.00> (Group 3/item 1/option 1 lump sum ) $ 30,291.00 (Group 4/total item 1) $ 4,736.00 (Group 4/item 1/option 3/per each/per vehicle) <$ 7,000.00> (Group 4/item 1/option 5/lump sum ) $ 40,182.00 (Group 5/total item 1) $155,193.00 (Group 6/total item 1) $ 1,200.00 (Group 6/item 1/option 1/per each/per vehicle) Don Hattan Chevrolet, Inc. - $111,400.00 (Group 7/item 1/total net bid) PUBLIC WORKS DEPARTMENT/FLEET & BUILDINGS DIVISION: 50 HP AND 57HP Rubber Tired Tractors. (130807) Wichita Tractor Co. - $30,954.00 (Group 1/base bid total) $ 6,498.00 (Group 1/option 3/per each/per tractor) $ 5,091.00 (Group 1/option 4/per each/per tractor) $ 529.00 (Group 1/option 5/per each/per tractor) <$ 12,500.00>(Group 1/option 6/lump sum ) $ 32,996.00 (Group 2/base bid total) $ 6,159.00 (Group 2/option 3/per each/per tractor) $ 4,840.00 (Group 2/option 4/per each/per tractor) $ 529.00 (Group 2/option53/per each/per tractor) <$14,500.00> (Group 1/option 6 lump sum