MINUTES OF THE MEETING OF THE CITY COUNCIL Wichita, Kansas, January 30, 1996 Tuesday, 9:07 A.M. The City Council met in regular session with Mayor Knight in the Chair. Council Members Cole, Gale, Kamen, Rogers; present. *Council Members Cather, Ferris; absent. Chris Cherches, City Manager; Gary Rebenstorf, Director of Law; Patricia L. Burnett, Deputy City Clerk; present. *Council Member Ferris present. The invocation was given by Elsie Crickard, Pastor, Pleasant Valley United Methodist Church. 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 January 23, 1996, were -- approved approved 6 to 0. (Cather absent) AWARDS The Water Department was recognized for winning an award for a technical article written by David Warren and Jerry Blaine for the American Waterworks Association Journal entitled "Integrated Resource Planning," a case study from Kansas which outlined Wichita's project to try to recharge the equus beds. OFF AGENDA ITEM CITY/COUNTY TASK FORCE - GROUP HOMES/HALFWAY HOUSES. Motion -- Knight moved that the rules be set aside and an Item regarding the possible formation of a city/county task force be considered off the Agenda. Motion -- carried carried 6 to 0. (Cather absent) Mayor Knight Mayor Knight said there was an article in the January 28, 1996, Wichita Eagle regarding group homes and halfway houses for men and women who have entered the criminal justice system. The article had some rather alarming conclusions. Mayor Knight stated that he would like the Council to consider giving support to having Council Member Cole represent the City Council's interests in a city/county task force of assembled people who can research the problem and determine some regulations that would be applicable to these facilities. Council Member Cole Council Member Cole said that for several months she had been receiving calls about homes which have eight to twelve men suddenly move in and which have people coming and going all hours of the night. Council Member Cole said she had been trying to find some way that city codes, state statutes, or county regulations might help figure out what is happening and whether regulation is needed. The effort has been frustrating because it seems there is not a lot in place to help in coping with the problem. Some of the homes house programs that are worthy of continuation but others seem to be simply a situation similar to a boarding house or a "flop" house where people come and go. Judges have learned, in some cases, that there is limited supervision and that there appears to be inappropriate staffing. Two or three weeks ago, dialogue between Council Member Cole and County Commissioner Melody Miller began regarding these homes, and it was decided Council Member Cole and Commissioner Miller would like to work together to see whether a grasp of what regulations currently exist and what regulations are needed where there are none. Council Member Cole asked for City Council support and agreement for immediate formulation of a city/county task force which would research existing regulations, needed regulations, what other communities are doing in this regard, and to talk about methods by which the facilities or programs can be regulated. Additionally, the task force would talk with private providers, corrections people, judges, and city and county staff. Mayor Knight Mayor Knight suggested the Wichita Independent Neighborhood group might be brought into the process. Motion -- Knight moved that Council Member Cole be the City's representative on the formation of a city/county task force to look at group homes and halfway houses, and that suggested actions be brought to the Council for consideration as soon as -- carried possible. Motion carried 6 to 0. (Cather absent) Council Member Cole Council Member Cole noted that the Wichita Independent Neighborhood Association had sent a letter to the Council indicating interest and willingness to participate in this matter. NEW BUSINESS TIF - WEST BANK RESOLUTION CONSIDERING THE ESTABLISHMENT OF A REDEVELOPMENT DISTRICT - TAX INCREMENT FINANCING FOR WEST BANK. (District VI) Chris Cherches City Manager reviewed the Item. Agenda Report No. 95-065. On August 21, 1994, the City Council approved a resolution designating a site south of Lawrence-Dumont Stadium for acquisition in connection with the construction of a public ice rink facility and other developments. On March 21, 1995, the City Council approved the Developer Agreements with Canlan Investment Corporation of Vancouver, British Columbia for development and operation of the ice rink and reclassified the land acquisition project into two projects, one for the ice rink on the west portion of the parcel and one for a private development on the east portion. The use of tax increment financing was identified as a source of funding for the land acquisition. On July 11, 1995, The City Council designated MRV, Inc. of Topeka as Preferred Developer for the east portion of the land south of L-D Stadium, as a result of an open RFP process. MRV, Inc. proposes to lease the land from the City and construct an 80-unit low and moderate income apartment complex on the site, using federal low-income housing tax credits. MRV, Inc. applied for but did not receive an allocation of tax credits in 1995 and have re-applied for 1996. As a result of the delay in receiving tax credits, negotiations for a development agreement are on hold. A series of Council actions will be necessary to establish the tax increment district on the West Bank. The tax increment will be "captured" based on the date of the establishment of the district. After the district is established, individual redevelopment projects may be undertaken in the district over time upon the completion of financial feasibility studies, so long as the projects are completed within 15 years of the date of establishment of the district. Once the tax increment financing district is established and a redevelopment plan has been adopted, the County Treasurer will transfer to the City all property tax revenue collected within the district which exceeds the amount that would have been collected if the property still had the assessed value that was in effect the year in which the district was established. In this way, any tax revenue that is attributable to growth in assessed value (assumed to be the result of redevelopment) is "captured" and used to pay for public improvements within the district (including land acquisition) which had helped to foster the redevelopment in the first place. 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 March 5, 1996 as the date for a public hearing on the matter. The Resolution directs the City Clerk to publish the Resolution in the City's official newspaper and to mail copies to the owners and occupants of all property located within the district, by certified mail. The Resolution also includes a map of the proposed district and a proposed comprehensive plan identifying potential redevelopment project areas and a general description of buildings and facilities to be constructed or improved. The cost of mailing the Resolution to all owners and occupants of property located within the district will be charged to the project for acquisition of the east portion of the land south of L-D Stadium and ultimately paid from TIF revenues. The actual establishment of the tax increment financing district will not be effective until the City Council adopts an ordinance for that purpose, following the aforementioned public hearing. The Board of County Commissioners and the Board of Education for USD 259 will have 30 days following the public hearing to determine whether the district will have an adverse impact on them. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Cole moved that the Resolution giving notice of consideration of establishment of a redevelopment district for the West Bank and setting a public hearing for 10:30 -- carried a.m. on March 5, 1996, be adopted. Motion carried 6 to 0. (Cather absent) RESOLUTION NO. R-96-028 A Resolution stating the City is considering the establishment of a redevelopment district for the West Bank Redevelopment District under authority of K.S.A. 12-1770 et seq, presented. Cole moved that the Resolution be adopted. Motion carried 6 to 0. (Cather absent) Yeas: Cole, Ferris, Gale, Kamen, Rogers, Knight. TIF - NORTH RESOLUTION CONSIDERING THE ESTABLISHMENT OF A REDEVELOPMENT DISTRICT - TAX INDUSTRIAL CORRIDOR INCREMENT FINANCING FOR NORTH INDUSTRIAL CORRIDOR. (Districts I and VI) Council Member Kamen Council Member Kamen inquired whether he had a conflict of interest. Gary Rebenstorf Director of Law clarified that Council Member Kamen did not have a conflict of interest in this case. Chris Cherches City Manager reviewed the Item. Agenda Report No. 96-066. On October 31, 1995, the City Council approved a Settlement Agreement between the City and the Kansas Department of Health and Environment regarding the environmental clean-up of groundwater contamination in areas known as the 29th and Mead site and the 13th and Washington site. Together, these two areas are referred to as the North Industrial Corridor (NIC). The Settlement Agreement provides the legal framework for the City and State to work together to undertake the environmental clean-up program following the model provided by the Gilbert and Mosley Project. The Agreement is subject to the condition that the City establish a tax increment financing redevelopment district for the project within six months. One of the two areas included in the NIC, the 29th and Mead Site, has been listed by the EPA on its National Priority List as a Superfund Site since 1987. Following the designation of the area as a Superfund Site, the county Appraiser's Office uniformly reduced property values in the area by 40%. As part of the negotiations leading to the Settlement Agreement, the EPA has agreed to de-list the 29th and Mead Site. This will be the first such de-listing anywhere in the nation. The County Appraiser has indicated that the de-listing should result in a restoration of property values in the area. A series of Council actions will be necessary to establish the tax increment district for the NIC environmental clean-up project. The tax increment will be measured based on the date of the establishment of the district. State law allows the City to receive from the total property tax revenues collected for the City, County and School District, an "increment" of tax revenue in an amount not-to-exceed 20% of the taxes produced from property located within the redevelopment district in the year in which it is first established. The 20% "increment" is representative of the portion of property value that is saved from being lost as a result of the clean-up. The reduction of 29th and Mead property values by the County Appraiser supports the reality of this "increment." Once the tax increment financing district is established and a redevelopment plan has been adopted, the County Treasurer will transfer to the City the "increment" of property tax revenue collected within the district which the City will certify each year as part of the annual budget process. The amount of the actual increment will be based on the cost of budgeted clean-up efforts and the anticipated contributions of responsible parties to pay these costs. The TIF will be used only to cover the portion of costs, if any, not covered by the funds collected from responsible parties. 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 March 5, 1996 as the date for a public hearing on the matter. The Resolution directs the City Clerk to publish the Resolution in the City's official newspaper and to mail copies to the owners and occupants of all property located within the district, by certified mail. The Resolution also includes a map of the proposed district and a proposed comprehensive plan identifying potential redevelopment project areas and a general description of buildings and facilities to be constructed or improved. The cost of mailing the Resolution to all owners and occupants of property located within the district will be charged to the NIC environmental clean-up project and ultimately paid from TIF revenues. The actual establishment of the tax increment financing district will not be effective until the City Council adopts an ordinance for that purpose, following the aforementioned public hearing. The Board of County Commissioners and the Board of Education for USD 259 will have 30 days following the public hearing to determine whether the district will have an adverse impact on them. Council Member Rogers Council Member Rogers commended the City Manager and Staff for leadership in the groundwater contamination area. *Council Member Cather present. Mayor Knight Mayor Knight said what Wichita has been doing with regard to groundwater contamination areas has been softly resonating around the country and the world, and the City Manager has been asked to deliver technical papers in the United States, Germany, France, and other areas. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Rogers moved that the Resolution giving notice of consideration of establishment of a redevelopment district for the North Industrial Corridor and setting a public hearing for 10:30 a.m. on March 5, 1996, be adopted. Motion carried -- carried 7 to 0. RESOLUTION NO. R-96-029 A Resolution stating the City is considering the establishment of a redevelopment district for the North Industrial Corridor (NIC) Redevelopment District under authority of K.S.A. 12-1770 et seq, presented. Rogers moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. (This Item was taken up later in the meeting; action is shown in Agenda order.) GO NOTE/BOND SALE GENERAL OBLIGATION TEMPORARY NOTE SALE (SERIES 187); GENERAL OBLIGATION BOND SALE (SERIES 741, 742 AND 743); GENERAL OBLIGATION SALES TAX BOND SALE (SERIES 1996). Agenda Report No. 96-009 A. The City is offering for sale one series of General Obligation Temporary Notes totaling $17,820,000, three series of general obligation bonds totaling $22,520,000, and one series of general obligation sales tax bonds totaling $25,000,000 for the purpose of providing temporary and permanent financing for duly authorized capital improvement projects of the City. Sealed bids for the aforementioned Bonds and Notes will be received by the City at the City Council Office until 10:30 a.m. on January 30, 1996, at which time all proposals will be publicly opened and considered for the purchase of the above- captioned Bonds and Notes. The proceeds of the Series 187 Temporary Notes will be used to finance various City-at-large and improvement district projects. The proceeds of the Series 741 Bonds will be used to permanently finance various neighborhood improvements located in special improvement districts. The proceeds of the Series 742 Bonds will be used to permanently finance various City-at-large capital improvement projects. The proceeds of the Series 743 Bonds will be used to permanently finance various City storm water utility projects. The proceeds of the Series 1996 Sales Tax Bonds will be used to permanently finance certain freeway projects. The sealed bids will be accepted until 10:30 a.m. CST at the City Council Office, at which time the bids will be opened and read publicly by the Director of Finance or his designee. No bids will be accepted after the 10:30 a.m. deadline. The bids will be verified immediately upon being read by Finance Department staff, then tabulated and presented to the City Council at 11:30 a.m. By law, the City must award the sale of the bonds and notes to the bidder whose proposed interest rates result in the lowest net interest cost to the City. The Series 187 Temporary Notes will mature on August 29, 1996 and will be retired with the proceeds of permanent financing bonds and/or the proceeds of renewal notes, issued at that time. The Series 741 Bonds will mature serially over fifteen years and will be paid from special assessments that have already been levied against benefited property. The Series 742 Bonds will mature over ten years and will be paid from the citywide mill levy for debt service and the revenues accruing to various City enterprise funds. The Series 742 Bonds will mature over ten years and will be paid from the storm water utility user fees. The Series 742 and 743 Bonds will be callable in 2001, and the Series 741 Bonds in 2003, with a 1% call premium, in accordance with the City's debt management policy. Ray Trail Director of Finance read the recommended lowest net average interest rate bids as follows: General Obligation Renewal and Improvement Temporary Notes, Series 187 ($17,820,000). Zions Capital Markets - 3.296% Net Average Interest Rate Total Interest Cost to Maturity $302,940.00 Less Premium 9,266.40 Net Interest Cost to Maturity $293,673.60 General Obligation Bonds, Series 741 - S.A. ($6,605,000). Merrill Lynch - 4.829319% Net Average Interest Rate Total Interest Cost to Maturity $2,054,219.58 Less Premium 983.20 Net Interest Cost to Maturity $3,053,236.38 General Obligation Bonds, Series 742 - At-Large ($2,915,000). Merrill Lynch - 4.499644% Net Average Interest Rate Total Interest Cost to Maturity $768,236.67 Less Premium 747.45 Net Interest Cost to Maturity $767,489.22 General Obligation Bonds, Series 743 - Storm Water ($13,000,000). United Missouri Bank - 4.480421% Net Average Interest Rate Total Interest Cost to Maturity $3,655,008.33 Less Premium 1,300.00 Net Interest Cost to Maturity $3,653,708.33 General Obligation Sales Tax Bonds, Series 1996 ($25,000,000). United Missouri Bank - 4.444286% Net Average Interest Rate Total Interest Cost to Maturity $6,481,250.00 Less Premium -0- Net Interest Cost to Maturity $6,481,250.00 Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Knight moved that the opening and reading of the bids be approved; the sale of Bonds and Temporary Notes be approved as recommended; the Declarations of Emergency be approved and the Mayor be authorized to sign; and the Ordinances be placed on their passage and adopted on the date of introduction, all in -- carried accordance with K.S.A. 12-3001. Motion carried 7 to 0. ORDINANCE NO. 42-989 An Ordinance authorizing and providing for the issuance of General Obligation Renewal and Improvement Temporary Notes, Series 187, of the City of Wichita, Kansas, in the total principal amount of $17,820,000, for the purpose of providing the necessary funds to renew a portion of the principal amount of temporary notes previously issued for the interim financing of costs in connection with previously commenced capital improvements in the City, and for the interim financing of costs in connection with newly commenced capital improvements in the City; prescribing the terms and details of the notes; providing for the payment of the principal of and the interest on the notes; and making certain other covenants and agreements with respect thereto. Knight moved that the Ordinance be placed on its passage and adopted on the date of its introduction, all in accordance with K.S.A. 12-3001. Motion carried to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. ORDINANCE NO. 42-990 An Ordinance authorizing and providing for the issuance of General Obligation Bonds, Series 741, of the City of Wichita, Kansas, in the total principal amount of $6,605,000, for the purpose of providing the necessary funds to pay costs in connection with the making of capital improvements in the City; prescribing the terms and details of the bonds; providing for the levy and collection of an annual tax for the purpose of providing for the payment of the principal of and the interest on the bonds as it becomes due and payable; and making certain other covenants and agreements with respect to the bonds. Knight moved that the Ordinance be placed on its passage and adopted on the date of its introduction, all in accordance with K.S.A. 12-3001. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. ORDINANCE NO. 42-991 An Ordinance authorizing and providing for the issuance of General Obligation Bonds, Series 742, of the City of Wichita, Kansas, in the total principal amount of $2,915,000, for the purpose of providing the necessary funds to pay costs in connection with the making of capital improvements in the City; prescribing the terms and details of the bonds; providing for the levy and collection of an annual tax for the purpose of providing for the payment of the principal of and the interest on the bonds as it becomes due and payable; and making certain other covenants and agreements with respect to the bonds. Knight moved that the Ordinance be placed on its passage and adopted on the date of its introduction, all in accordance with K.S.A. 12-3001. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. ORDINANCE NO. 42-992 An Ordinance authorizing and providing for the issuance of General Obligation Bonds, Series 743, of the City of Wichita, Kansas, in the total principal amount of $13,000,000, for the purpose of providing the necessary funds to pay costs in connection with the making of capital improvements in the City; prescribing the terms and details of the bonds; providing for the levy and collection of an annual tax for the purpose of providing for the payment of the principal of and the interest on the bonds as it becomes due and payable; and making certain other covenants and agreements with respect to the bonds. Knight moved that the Ordinance be placed on its passage and adopted on the date of its introduction, all in accordance with K.S.A. 12-3001. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. ORDINANCE NO. 42-993 An Ordinance authorizing and providing for the issuance of General Obligation Sales Tax Bonds, Series 1996, of the City of Wichita, Kansas, in the total principal amount of $25,000,000, for the purpose of providing the necessary funds to pay costs in connection with the construction of roads, highways and bridges in the City; prescribing the terms and details of the bonds; pledging a portion of the County retailer's sales tax revenues allocated to the City for the payment of the principal of and the interest on the bonds as it becomes due; providing for the levy and collection of an annual tax for the purpose of providing for the payment of any portion of the principal of and the interest on the bonds not paid from said sales tax revenues; and making certain other covenants and agreements with respect to the bonds. Knight moved that the Ordinance be placed on its passage and adopted on the date of its introduction, all in accordance with K.S.A. 12-3001. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. 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 and contract negotiations and the regular meeting be resumed at approximately 9:50 a.m. in the City Council Chambers. -- carried Motion carried 7 to 0. RECESS Council recessed at 9:35 a.m. and reconvened in regular session at 10:00 a.m. Mayor Knight Mayor Knight announced that no action was necessary as a result of the executive session. IRB - GRAND HERITAGE APPROVE LETTER OF INTENT FOR GRAND HERITAGE HOTELS. (BROADVIEW) Allen Bell Financial Projects Director reviewed the Item. Agenda Report No. 96-067. Grand Heritage Hotels International ("Grand Heritage") has requested issuance of a Letter of Intent to issue industrial revenue bonds in an amount not to exceed $10 million. The bonds will be used to finance the acquisition and renovation of the Ramada Inn at Broadview Place at the corner of Douglas and Waco in downtown Wichita. Grand Heritage has also requested that the City grant a full property tax abatement on the property to be acquired for a ten-year period, to be replaced with certain fixed payments-in-lieu-of-taxes. In addition, Grand Heritage has requested City participation in the overall redevelopment project, which is outlined below. Grand Heritage Hotels International is a privately held organization formed in 1989 by principals experienced in hotel management as well as corporate workouts and turnaround management. Grand Heritage manages in excess of 1,676 rooms in the United States and an additional 1,716 rooms in 35 hotels are operated under the Grand Heritage flag pursuant to franchise and management agreements. Grand Heritage, which owns or operates over 45 hotels in the United States and Europe, specializes in buying deteriorating hotels that are historically significant and transforming them into luxury hotels. Grand Heritage has entered into a contract to purchase the Ramada Inn at Broadview Place from the current owners, Executive Manor of Wichita. Grand Heritage then plans to rename it The Broadview, a Grand Heritage Hotel and renovate it at an estimated cost of $3.5-$4 million. After the renovation the Broadview will be a considered a luxury hotel with a four star rating. Grand Heritage anticipates a twelve- month turnaround period to upgrade the Broadview to the hotel of choice of the business and convention community. After renovation the hotel will have 267 guest rooms including over 40 suites. The banquet and meeting space of over 17,500 s.f. will offer convention facilities capable of handling groups from 10 to 2,500. Proceeds from the bonds will be used to purchase the Broadview Hotel and to make improvements as follows: USE OF BOND PROCEEDS Acquisition Cost $ 4,600,000 Capital Improvements 4,000,000 Working Capital 250,000 Bond Reserve Account 250,000 Bond Issuance Costs 150,000 Total Uses: $ 9,250,000 Renovations will include substantial changes to the ground floor area, moving the lobby to the space now occupied by Chisolm's and expanding and remodeling the space now occupied by the lobby restaurant to provide space for a new, first class restaurant/lounge. Consideration is being given to building new space on the riverfront for a health club and other amenities that would functionally re-orient the hotel towards the river. In addition, all guest rooms and corridors will undergo refurbishment and redecoration in order for the hotel to achieve luxury hotel standards. The bonds will be privately placed and the firm of Hinkle, Eberhart and Elkouri, L.L.C. will serve as bond counsel in the transaction. The project will create 50 new full time positions in addition to the over 100 employees currently employed by the hotel. Grand Heritage will have a current approved EEO/AA Plan on file with the City's Human Resources Department prior to the issuance of the bonds. Grand Heritage has requested a 10-year property tax abatement on improvements to the existing property and a 5- year abatement of taxes on the existing property, with payments- in-lieu of taxes on the existing property, as follows: Year 1 $30,000 Year 2 $40,000 Year 3 $50,000 Year 4 $60,000 Year 5 $70,000 Grand Heritage has asked that the City purchase the existing 248-car parking garage located across Waco from the Hotel, as a special benefit district improvement project, with the entire cost of the project to be assessed against the Hotel property. The proposed cost of the garage project is $1.6 million. The Hotel will be responsible for making debt service payments on the special assessment bonds and will also cover all operating and maintenance costs under a long-term management agreement in which the City and Hotel will share any operating profits. The Hotel will not have an option to purchase the garage until after the garage has reached the end of its "useful economic life," but will have a right of first refusal to buy the garage prior to that time. The request from Grand Heritage includes a minor street privilege permit for the closure of Waco Avenue at a point approximately adjacent to the north end of the parking garage, in order to reconstruct the street as a paved and landscaped plaza that would serve as a "grand entrance" to both the Broadview Hotel and the Chamber of Commerce. The proposal is to assess the cost of closing and streetscape improvements to Waco to the benefiting properties with frontage on the street. Finally, Grand Heritage has requested that the City use its best efforts to secure the approval of the U.S. Department of Housing and Urban Development in order to release the Hotel from the lien that was placed on it in connection with a $528,000 HUD loan that was made to the previous owners of the Broadview to help finance the construction of the parking garage in 1985. This loan is in default and there are no reasonable prospects that it will ever be repaid. The lien on the Hotel is inferior to other prior liens on the Hotel, so there is no reasonable prospect the City would collect anything through foreclosure. The requested lien release will not extinguish the obligation of the borrower. Grand Heritage agrees to pay all costs of issuing the bonds and agrees to pay the City's $2,500 annual IRB administrative fee for the term of the bonds. The 1995 existing property taxes on the Hotel and parking facility are $173,738.06. It is estimated that the requested tax abatement during the first five years will amount to approximately $225,000 per year on average, of which $61,675 would be the City portion; $58,185 the County/State portion and $105,140 the USD 259 portion, based on the 1995 mill levy of 114.712 mills. The cost of the parking garage will be borne entirely by the Hotel through the payment of special assessments. The City will bear a proportionate share of the Waco streetscape costs as owner of the parking garage, estimated not to exceed $100,000. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Council Member Ferris Council Member Ferris said the hotel is in receivership and in about two weeks, if this deal were not concluded, would go into foreclosure. If the property went into foreclosure, there is a very good possibility the hotel might be closed for some time - much the same as the Plaza in downtown Wichita. Once a hotel closes, its value goes down substantially so that the taxes the City would receive would be very little in comparison to what is on the tax rolls today. While it may appear the City is giving up a lot of money, it is very likely that the amount given up is insignificant because once the property is in foreclosure the value of the property would be greatly reduced. The City is gaining hotel rooms and a revitalized hotel which will have a substantial presence on the riverfront and which the City will be able to be involved in without actually putting up hard cash. This is true economic development as far as revitalizing a hotel and if it were not approved there would be no abatement on the new improvements. Traffic Engineering has looked at the closing of Waco and believes that there is not a major negative impact in the traffic patterns of downtown and, in fact, there is positive benefit to the east west traffic on Douglas in the ability to remove the stop light at Waco. Council Member Cole Council Member Cole said this action gives hope for two fine hotels in the downtown area. This is in line with the Downtown Hotel Incentive Policy. Motion -- Ferris moved that the issuance of a Letter of Intent to Historic Hotels Partners of Wichita, d.b.a. The Broadview Hotel, A Grand Heritage Hotel be approved. The issuance of the industrial revenue bonds pursuant to the Letter of Intent will be subject to the following conditions: 1. Negotiation of a Lease Agreement and Bond Ordinance. 2. Arrangements have been made for the sale/placement of the bonds. 3. Guarantees for the payment of the bonds are in place. 4. Agreement to pay the City administrative fees of $2,500 per year for as long as the bonds are outstanding. 5. Agreement to pay all costs incurred by the City for processing the bonds/application. 6. An approved Equal Employment Opportunity/Affirmative Action Plan is on file with the City prior to issuance of the bonds. 7. An approved Water Conservation Plan is on file with the City prior to issuance of the bonds. 8. Agreement to submit building and site plans to CART (City manager's Aesthetic Review Team) for review and to modify the proposed design to comply with any reasonable CART conditions or recommendations. 9. Agreement to provide the City, prior to submitting the proposed Lease Agreement, an Environmental Site Assessment (ESA) that documents the environmental conditions of the property, and an agreement that the ESA will be conducted by and independent consultant who is a recognized expert in the area. Industrial Revenue Bonds will not be issued if the ESA discloses environmental conditions that might have implications for bond purchasers under the liability provisions of the Superfund Amendments and Reauthorization Act (SARA). 10. Agreement that if the bonds are to be offered for sale to the public, the applicant will not, during the period of time the bonds are outstanding, have a commercial banking relationship with the trustee of the bonds to be issued unless the original purchaser of the bonds acknowledges in writing the existence of the relationship and waives any conflict that might exist as a result of the relationship. 11. Applicant is required to furnish copies of its annual audits to the City. 12. Cooperation with any annual compliance audit procedure the City may adopt to monitor compliance with conditions, including any annual reports required of the applicant and any inspections of the applicant's premises or interviews with the applicant's staff. 13. Commitment to achieve and maintain its proposed employment goals, and to meet its Equal Employment Opportunity/Affirmative Action goals, during the term of the tax abatement. If the applicant fails to demonstrate a good-faith effort to achieve these goals, the City may revoke the tax abatement by either imposing payments-in-lieu-of-taxes or by declining to make the annual exemption filing with the Board of Tax Appeals. All repayments of in-lieu taxes shall be redistributed to the other taxing authorities in accordance with the law. 14. Applicant is encouraged to utilize Minority- owned Business Enterprises (MBE) and Women-owned Business Enterprises (WBE) as contractors, subcontractors, engineers, architects, suppliers and vendors whenever possible. -- carried Motion carried 7 to 0. CITY COUNCIL AGENDA APPOINTMENTS APPOINTMENTS TO CITY BOARDS AND COMMISSIONS. Civil Rights and Services Board (1 vacancy - Cole) Commission on the Status of People with Disabilities (3 vacancies - Cather, Kamen, Gale) Police & Fire Retirement Board of Trustees (1 vacancy - Cole) Wichita Commission on the Status of Women (4 vacancies - Gale, Kamen, Rogers, Knight) Wichita Public Building Commission (3 vacancies - Cole, Gale, Kamen) Appointments will be for terms expiring June 30, 1997. Motion -- Knight appointed Nancy McKellar - Status of Women and moved that the appointment -- carried be approved. Motion carried 7 to 0. Motion -- Kamen appointed Cindy Waite - People with Disabilities and moved that the -- carried appointment be approved. Motion carried 7 to 0. Motion -- Kamen appointed Iris Brossard - Status of Women and moved that the appointment be -- carried approved. Motion carried 7 to 0. Motion -- Cather appointed Don Wadsworth - People with Disabilities and moved that the -- carried appointment be approved. Motion carried 7 to 0. Motion -- Rogers appointed Julie Ann King - Status of Women and moved that the appointment -- carried be approved. Motion carried 7 to 0. APPOINTMENT TO CPO NORTH CENTRAL COUNCIL. (District VI) CPO East Council has nominated Twyla D. Keffeler, 1755 N. Porter, to fill an existing vacancy in subdistrict 6.l. Motion -- Cole appointed Twyla D. Keffeler and moved that the appointment be approved. -- carried Motion carried 7 to 0. CONSENT AGENDA Knight moved that the Consent Agenda, except Item 20, 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 JANUARY 29, 1996. At 10:00 a.m., Friday, January 26, 1996, 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 1/29/96) PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION: SEWERS, PAVING AND WATER MAINS AS PER SPECIFICATIONS 24" Rip-Rap for the Wichita-Valley Center Flood Control Project. (Index #791335/435162) Does not affect existing traffic. (Council approval date 08-15-95) (Districts All) A-Plus, Inc. - $299,790.75 (Engineer's Construction Estimate) Storm Water Sewer 462 to serve Northridge Lakes Addition (east of Tyler, north of 21st). (468- 82495/750695/485105) Does not affect existing traffic. (Council approval date 12-12-95) (District V) Duling Construction Co., Inc. - $106,515.00 Knight moved that the contract 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 7 to 0. METROPOLITAN TRANSIT AUTHORITY: UNIFORMS AS PER SPECIFICATIONS Group I - Baysinger Police Supply - Item 1 - $35.00 per pair - Item 2 - $25.63 per pair - Item 3 - $35.00 per pair - Item 4 - $25.63 per pair - Item 5 - $22.31 per each - Item 6 - $19.69 per each - Item 7 - $20.06 per each - Item 8 - $17.25 per each - Item 9 - $36.88 per each - Item 10 - $19.69 per each - Item 11 - $19.69 per each - Item 12 - $53.44 per each - Item 13 - $ 4.00 per each - Item 14 - $ 4.00 per each - Item 15 - $ 4.00 per each - Item 16 - $18.09 per each Group II - Kansas T's - Item 1 - $17.75 per each - Item 2 - $22.00 per each - Item 3 - $25.00 per each - Item 4 - $ 7.25 per each - Item 5 - $ 7.25 per each - Item 6 - $20.00 per each - Item 7 - $20.00 per each - Item 8 - $16.00 per each WATER & SEWER DEPARTMENT/PRODUCTION & PUMPING DIVISION: LIQUID CARBON DIOXIDE (BULK) AS PER SPECIFICATIONS Liquid Carbonic Co. - $85.00 cost per ton WATER & SEWER DEPARTMENT/SEWAGE TREATMENT DIVISION: BIOSOLIDS MANAGEMENT STORAGE AND DISTRIBUTION FACILITY CONTRACT 3 AS PER SPECIFICATIONS Dondlinger & Sons Construction Co., Inc. - $3,405,000.00 (Base Bid) The Board of Bids and Contracts recommended that the contract be awarded as outlined above, same being the lowest and best bid. Knight moved that the contract be awarded as outlined above, same being the lowest and best bid. Motion carried 7 to 0. LICENSE APPLICATIONS APPLICATIONS FOR LICENSES TO RETAIL CEREAL MALT BEVERAGES. Renewal 1996 (Consumption off Premises) Ralph McGuire Dillon Store No. 20 7707 East Central Ralph McGuire Dillon Store No. 21 5500 E. Harry Ralph McGuire Dillon Store No. 30 2525 W. Douglas Ralph McGuire Dillon Store No. 31 1640 S. Broadway Ralph McGuire Dillon Store No. 34 3932 W. 13th Ralph McGuire Dillon Store No. 35 6297 E. 13th Ralph McGuire Dillon Store No. 42 4801 E. Central Ralph McGuire Dillon Store No. 55 4910 E. 21st Ralph McGuire Dillon Store No. 62 1435 North Waco Ralph McGuire Dillon Store No. 33 4747 South Broadway Ralph McGuire Dillon Store No. 66 2244 N. Rock Rd. Ct. New Establishment 1996 (Consumption on Premises) Le Hoang Ha Trang Cafe* ** 1935 N. Broadway Quang T. Le Citadel Restaurant* 2959 S. Hillside *General Retailer--beer sales derive less than 50% of gross revenues. **Located within 300 feet of a church/school. Motion -- Knight moved that the licenses be approved subject to Staff review and -- carried approval. Motion carried 7 to 0. PLANS AND SPECS. PLANS AND SPECIFICATIONS. a. Water Distribution System to serve White Tail Addition (south of 13th, west of 127th Street East). (448- 88767/732396/470317) Traffic to be maintained during construction using flagpersons and barricades. (Council approval date 11-30-93) (District n/a) 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., February 2, 1996. Motion carried 7 to 0. b. 1996 Contract Maintenance Preparatory Curb and Gutter Repair and Miscellaneous Concrete Repair at various locations. (132258/112000) Traffic to be maintained through construction. (Council approval date 01-23-96) (District all) c. Ralph Wulz Riverside Tennis Complex (Central and Nims). (472-82669/IC not available) Does not affect existing traffic. (Council approval date 01-05-96) (District VI) Motion -- Knight moved that the plans and specifications be approved and the City Clerk be instructed to advertise for bids to be submitted to the Board of Bids and -- carried Contracts by 10:00 a.m., February 9, 1996. Motion carried 7 to 0. SUBDIVISION PLANS AND SPECIFICATIONS. a. Water Distribution System to serve Smithmoor 4th Addition (south of Harry, east of Webb). (448- 88878/733022/470380) Traffic to be maintained during construction using flagpersons and barricades. (Council approval date 11-29-94) (District 2) b. Water Distribution System to serve Windwood and Hedge Apple Addition (south of 21st, west of Maize). (448-88961/733048/470382) Traffic to be maintained during construction using flagpersons and barricades. (Council approval date 11-21-95) (District 5) c. Water Distribution System to serve Windwood Addition (south of 21st, west of Maize). (448- 88957/733055/470383) Traffic to be maintained during construction using flagpersons and barricades. (Council approval date 11-21-95) (District 5) d. Lateral 37, Main 12, Southwest Interceptor Sewer to serve Sunridge 2nd Addition (south of 21st, east of 119th St. West). (468-82487/742536/480345) Does not affect existing traffic. (Council approval date 08-15-95) (District 5) e. Lateral 38, Main 12, Southwest Interceptor Sewer to serve Sunridge 2nd Addition (south of 21st, east of 119th St. West). (468-82513/742544/480346) Does not affect existing traffic. (Council approval date 11-07-95) (District 5) f. North Shore Boulevard from 13th Street North to School Circle to and including cul-de-sac; Ponderosa from EL of the plat to EL of North Shore Boulevard; Warren Circle to and including cul-de-sac; North Shore Circle to and including cul-de-sac; Briarwood Circle to and including cul-de- sac; and Decel Lane on the south side of 13th Street North to serve North Shore Boulevard, Spinnaker Coves Hoskinson Addition (south of 13th, east of Ridge). (472-82612/763383/490441) Does not affect existing traffic. (Council approval date 07-25-95) (District 5) Motion -- Knight moved that the plans and specifications be approved and the City Clerk be instructed to advertise for bids to be submitted to the Board of Bids and -- carried Contracts by 10:00 a.m., February 9, 1996. Motion carried 7 to 0. PRELIMINARY ESTIMATES PRELIMINARY ESTIMATES. a. Lateral 121, Westlink Sewer to serve Park West Plaza Addition (west of Maize, south of Central) - $14,790.00. (468-82547/742551/480347) Does not affect existing traffic. (Council approval date 11-28-95) (District V) b. Parkridge and Chartwell from EL of Covington Circle to NW corner of Lot 28, Block 3, of Aberdeen First Addition and sidewalk to be constructed on one side; Covington from south right-of-way of Parkridge to SW corner of Lot 7, Block 2, Aberdeen First Addition and sidewalk to be constructed on one side; Neville from east right-of-way of Pine Grove to west right-of-way of Parkridge; Pine Grove from north right-of-way of Britton to SW corner of Lot 37, Block 1, Aberdeen First Addition; Britton from west right-of-way of Parkridge to WL of Pinegrove; Pine Grove Court from west Pine Grove right-of-way to and including cul-de-sac; Pine Grove Circle from SW corner of Lot 37, Block 1, Aberdeen First Addition to and including cul-de-sac; Neville Court from north right-of-way of Neville to and including cul-de-sac; Parkridge Circle from north right-of-way of Parkridge to and including cul-de-sac; Covington Circle from NL off Chartwell to and including cul-de-sac; Covington Court from east right-of-way of Covington to and including cul-de-sac, and; Parkridge Court from east right-of-way of Parkridge to and including cul-de-sac, Aberdeen First Addition (north of 21st, east of 119th Street West) - $722,000.00. (472-82443/763375/490440) Does not affect existing traffic. (Council approval date 04-26-94) (District V) c. Storm Water Drain #110 to serve Lots 1 through 4 in Pawnee and West Industrial Park Addition (at Pawnee, west of K-42) - $40,000.00. (468-82426/750661/485102) Does not affect existing traffic. (Council approval date 01-09- 96) (District IV) d. Storm Water Sewer #450 - Phase II to serve Reflection Ridge Commercial and Lake Ridge Commercial Additions west of Ridge Road, north of 21st Street North) - $204,200.00. (468-82378/750604/485096) Traffic to be maintained through construction. (Council approval date 03-08-94) (District V) e. Lateral 52, Main 9, Sanitary Sewer 23 to serve Comotara Power Center Second Addition (west of Rock, south of 37th Street North) - $60,000.00. (468-82502/742528/480344) Does not affect existing traffic. (Council approval date 10-17- 95) (District II) Motion -- Knight moved that the preliminary estimates be approved and filed. Motion -- carried carried 7 to 0. STATEMENTS OF COST STATEMENTS OF COST. a. Accel-Decel/Right Turn Lane to serve properties on the west side of Rock Road from approximately 500 feet north of the centerline of 13th Street north to approximately 2500 feet north of the centerline of 13th Street North and necessary transition - $107,726.00. (472- 82464/705913/405145) b. Two-way Center Left Turn Lane on Rock Road from approximately 290 feet north of the centerline of 13th Street North to approximately 2380 feet north of the centerline of 13th Street North and necessary transitions - $370,519.00. (472-82463/705921/405146) c. Custer Avenue from the north line of 18th Street North to the south line of McLean Boulevard, in Charles Addition - $59,871.00. (472-82510/762872/490390) d. Tee Time from the south line of Lot 5, Block 3, Reflection Ridge Seventh Addition and the south line of Lot 39, Block 1, Reflection Ridge Eighth Addition to the south line of 29th Street North; Meadow Park Circle from the west line of Tee Time to & including the cul-de-sac; Meadow Park Court serving Lots 7-13, Block 1, Reflection Ridge Eighth Addition; Meadow Park Court serving Lots 14-22, Block 1, Reflection Ridge Eighth Addition; Tee Time Court serving Lots 1-4, Block 1, Reflection Ridge Eighth Addition; Tee Time Court serving Lots 35-39, Block 1, Reflection Ridge Eighth Addition; and Sidewalk on both sides of Tee Time, in Reflection Ridge Eighth Addition - $277,748.00. (472-82562/763045/490407) e. Rock Road Decel Lane to serve Lots 6 & 7, Block 1, Comotara Power Center Second Addition - $39,640.00. (472-82624/763250/490428) f. Carr Avenue from the east line of 119th Street West to the northwest corner of Lot 22, Block A, Lark Addition; Carr Courts from the south line of Carr Avenue to and including the cul-de-sac to serve Lots 1-12, Block B and from the south line of Carr Avenue to and including the cul-de-sac to serve Lots 13-24, Block B; and Carr Circle from the north line of Carr Avenue to and including the cul-de-sac to serve Lots 10- 22, Block A, Lark Addition - $269,458.00. (472- 82548/763219/490424) g. Prescott from the east line of Lot 50, Block 12, Pawnee Mesa Addition to the east line of Prescott Court; Prescott and Prescott Court from the north line of Pawnee Avenue to and including the cul-de-sac; Blake from the west line of Prescott to the east line of Rutledge; and on Rutledge and Rutledge Circle from the southwest corner of Lots 28, Block 12, Pawnee Mesa Addition to and including the cul-de-sac in Pawnee Mesa Addition - $301,825.00. (472-82490/762740/490377) h. 17th Street North from EL of Sheridan to the WL of St. Paul Avenue - $157,462.00. (472- 82438/762427/490345) i. Custer Avenue from the NL of 16th Street North to the SL of 17th Street North and from the NL of 17th Street North to the SL of 18th Street North in Sheridan Acres Addition - $141,205.00. (472-82451/762435/490346) j. Evergreen from the south line of Robin to the south line of Maple; Socora from the east line of Evergreen to the south line of University; Floyd from the east line of Evergreen to the south line of Maple; Topaz from the south line of Lot 8, Block 3, Carriage House Plaza Second Addition and the south line of Lot 5, Block E, Floyd Bailey Third Addition to the south line of University; Turquoise from the north line of Hendrix to the south line of Maple; & University from the east line of Evergreen to the west line of Woodchuck, Floyd Bailey Third Addition - $977,836.00. (472-82436/762369/490339) k. Esther from the west line of Lark Second Addition to the south line of Lot 5, Block A, Lark Second Addition; Mars from the south line of Lot 5, Block A, Lark Second Addition to the west line of Lot 9, Block B, Lark Second Addition; Dora from the west line of Lot 9, Block B, Lark Second Addition to the east line of Lark Second Addition; and Dora Courts from the north line of Dora to and including the cul-de- sac to serve Lots 12-31, Block A and from the south line of Dora to and including the cul-de-sac to serve Lots 11-26, Block B, Lark Second Addition - $199,011.00. (472-82550/762989/490401) l. Haskell from the east line of Maize Road to the west line of Prairie Woods with sidewalk on the south side of Haskell; Prairie Woods from the north line of Haskell to the north line of Lot 37, Block 1 with sidewalk on the north side of Prairie Woods; Prairie Woods Court from the south line of Prairie Woods to and including the cul-de-sac; and 6' wide sidewalk in Reserve B from the east line of Prairie Woods to the east line of Prairie Woods Addition - $148,262.00. (472- 82563/762971/490400) m. 18th Street & Covington from the east line of Chambers to the north line of Lot 10, Block G and the north line of Lot 10, Block 1; Gray from the north line of Westport to the east line of Covington; Denise Marie from the north line of Westport to the north line of Westport to the north line of Lot 1, Block 1 and the north line of Lot 13, Block J; Westport and Shefford from the east line of Chambers to the south line of Lot 18, Block J and the south line of Lot 15, Block K, all in Sunridge Second Addition; and that sidewalk be constructed on the north and west sides of 18th Street and Covington from the east line of Chambers to the north line of Lot 10, Block G, Sunridge Second Addition - $199,507.00. (472- 82160/763201/490423) n. Left Turn Lane on Rock Road at Oxford Circle to serve the proposed access point to Windemere Second Addition - $87,339.00. (472-81968/762559/490358) o. Joann from the south line of Caroline to the north line of Second Street Sarah Addition (et al) - $118,751.00. (472-82467/762526/490355) p. Mt. Carmel from NL of 16th Street North to SL of 17th Street North, in Sheridan Acres Addition, et al - $65,989.00. (472-82509/762880/490391) q. School Bus Loading Zone along Victoria Street south of 47th Street South - $38,456.00. (472- 82529/762864/) r. Victoria from 49th Street South to 47th Street South, south of 47th Street South - $193,142.00. (472- 82397/762245/) s. Rock Island, from First Street to 360 feet + north of First Street (Old Town Street Improvements) - $301,535.00. (Less bonds previously issued - $150,000.00) Bonds to be issued at this time - $151,535.00. (472- 82373/705749/405128) t. Moore Avenue (Old Town Phase 3, Part 1) from First to Second Streets - $387,755.00. (472- 82486/762674/490370) u. Rock Island, from the first east/west alley north of Douglas to First Street (Old Town Street Improvements) - $388,036.00. (Less bonds previously issued - $195,000.00) Bonds to be issued at this time - $193,036.00. (472-82358/705707/405124) v. Alexander from the north line of 46th Street North to the south line of 49th Street North Beulahland Third and Fourth Additions - $143,015.00. (472- 82546/762930/490396) Motion -- Knight moved that the Statements of Cost be received and filed and the City Clerk be instructed to prepare the proposed assessment rolls. Motion carried -- carried 7 to 0. BOARDS MINUTES MINUTES OF ADVISORY BOARDS. Board of Code Standards and Appeals, 1/8/96 Board of Housing Commissioners, 11/16/95, 10/19/95, 9/21/95, 8/17/95, 7/20/95 Board of Park Commissioners, 1/8/96 Civil Rights and Services, 1/8/96 CPO Northeast 1, 1/8/96 CPO East 2, 1/8/96 CPO Southeast 3, 1/11/96 CPO Southwest 4, 1/11/96 CPO Northwest 5, 1/10/96 CPO North Central 6, 1/0/96 Wichita/Sedgwick County Solid Waste Management Committee, 12/4/95 Motion -- carried Knight moved that the Minutes be received and filed. Motion carried 7 to 0. STREET CLOSURES/USES CONSIDERATION OF STREET CLOSURES/USES. Agenda Report No. 96-079. Utility Contractors, Inc. has contracted to accomplish drainage improvements included in the South Seneca Outfall Project. As work progresses into this last phase of this project, a total street closure is required on 55th Street South, approximately one-half mile west of Seneca. The requested closure will allow the construction of a reinforced concrete box drainage structure under 55th Street. Work is expected to begin approximately January 31 and be completed by April 27. The contractor is responsible for notification of adjacent businesses and residents, placement of construction barricades, and detour signing during the project. There is no cost to the City. During the closure, 55th Street traffic will be detoured, using Seneca, 47th and Meridian Streets. Motion -- carried Knight moved that the street closure be approved. Motion carried 7 to 0. PARK CIP PROGRAM 1996 PARK CIP PROGRAM, PHASE I. (Districts I, II, IV, and VI) Agenda Report No. 96-068. The 1996 Capital Improvement Program (CIP) provides for improvements in a number of parks. Following is a list of the parks to be improved, the nature of the work, and the CIP budget. PROJECT SCOPE OF WORK CIP BUDGET Ralph Wulz Tennis Complex (CIP #P-94) Resurface Courts $120,000 Chisholm Creek Park Construct Parking Lot 400,000 (CIP #P-10) to serve Nature Center Edgemoor Park (CIP #P-18) Repair existing Parking Lot 200,000 Naftzger Park (CIP #P-45) Install landscaping, paths 90,000 and park furniture in undeveloped SE corner Watson Park (CIP #P-72) Construct improvements to 55,000 irrigation system & install boat dock The projects total $865,000. The funding source is General Obligation Bonds. Motion -- Knight moved that the Projects be approved; the Resolutions be adopted; and the Staff Screening and Selection Committee be authorized to select a Design -- carried Engineer/Architect. Motion carried 7 to 0. RESOLUTION NO. R-96- 030 A Resolution authorizing the issuance of bonds by the City of Wichita at large for public improvements in the Ralph Wulz Riverside Tennis Complex (472-82669), presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. RESOLUTION NO. R-96- 031 A Resolution authorizing the issuance of bonds by the City of Wichita at large for public improvements in Chisholm Creek Park (472-82670), presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. RESOLUTION NO. R-96- 032 A Resolution authorizing the issuance of bonds by the City of Wichita at large for public improvements in Edgemoor Park (472-82671), presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. RESOLUTION NO. R-96- 033 A Resolution authorizing the issuance of bonds by the City of Wichita at large for public improvements in Naftzger Park (472-82672), presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. RESOLUTION NO. R-96- 034 A Resolution authorizing the issuance of bonds by the City of Wichita at large for public improvements in Watson Park (472-82673), presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. COMPUTER SOFTWARE BIOSOLIDS MANAGEMENT SOFTWARE PURCHASE. Agenda Report No. 96-069. On November 9, 1993, the Biosolids Treatment and Management Plan was presented and approved by the City Council. The plan outlined recommendations to achieve compliance with the United States Environmental Protection Agency (USEPA) regulations governing the use, treatment and disposal of municipal wastewater sludges (40 CFR, Part 503.) The recommended end use, based on economics, was agricultural land application of the treated biosolids. The City is well along toward effective implementation, with over 54,000 cubic yards of biosolids having been applied to approximately 2,000 acres of farmland. The regulatory environment as it relates to land application of treated biosolids involves complex reporting requirements which are subject to continual revisions. Outside of the regulatory arena, there exists some potential for long term liability related to claims from agricultural land owners. It is necessary to have an effective tracking system in place to ensure proper land application rates are adhered to and that long term historical data is available to the regulatory agencies and the land owners on whose property the biosolids are applied. The City's Biosolids Management Consultant, Professional Engineering Consultants, has reviewed the availability of comprehensive biosolids management software. Effective software must be capable of establishing agronomic rates of application, location mapping, tracking of cumulative heavy metals loading and generating the necessary reports for USEPA and the Kansas Department of Health & Environment. They have determined that BioEDGE database software and biosolids management system, designed by Black & Veatch, is currently the only software on the market that is capable of meeting the needs of a program the size of Wichita's. A maintenance agreement is available through Black & Veatch which guarantees annual updates, as well as updates any time the regulations may change. Since some customization for the design of specialized reports will be necessary, it is recommended that PEC be selected as the appropriate vendor to provide customized report design and programming service. Initial costs for implementing the biosolids management system include database software at $14,400, global positioning system software at $18,000, training at $2,450, and customization programming at $6,000, for a total of $40,850. Some system hardware will be required for this system, and it will be purchased through the City's standard procurement procedures. Funds are available in CIP Project S-500 Biosolids Treatment and Management for the purchase of the hardware and software. The annual cost of the software maintenance contract will be $7,500. Since this amount is not included in the operating budget, staff recommends that the $7,500 increase be offset by a reduction in the budgeted amount for biosolids transportation costs. Motion -- Knight moved that purchase of the necessary software for biosolids management along with customized report design services be approved, and the 1996 and 1997 budgets be amended to include the cost of the maintenance agreement. Motion -- carried carried 7 to 0. EQUUS BEDS RECHARGE MODIFICATION TO THE COOPERATIVE AGREEMENT WITH THE BUREAU OF RECLAMATION FOR THE DEMONSTRATION PROJECT EQUUS BEDS RECHARGE DEMONSTRATION PROJECT. Agenda Report No. 96-070. On August 31, 1993, the Council approved, and instructed staff to implement the Integrated Local Water Supply Plan recommended in the Water Supply Plan developed by Burns and McDonnell/Mid-Kansas Engineering Consultants. That Plan identified cost effective water resources that would be adequate to meet Wichita's water needs to the year 2050. On February 7, 1995 the Council approved Phase I-Project I of the Equus Beds Recharge Demonstration Project. The purpose of the Equus Beds Recharge Demonstration Project is to determine if excess flows in the Little Arkansas River can be used to recharge the Equus Beds Wellfield. On July 25, 1995 the Council approved an assistance agreement with the Bureau of Reclamation (BOR) in the amount of $500,000 for the use of Federal funds on this demonstration project. On November 14, 1995 the Council authorized Phase 1, Project 2 of the Demonstration Project In 1995 the Department of the Interior, Bureau of Reclamation offered to provide up to $500,000 in funding for this project. This grant, which was a 50% grant, can be used to fund many aspects of this project, including engineering costs, construction costs, and laboratory and sampling costs. This project is a five-year project, but that Assistance Agreement could only be used to help fund the first year of the project. With the assistance of the State's congressional representatives, additional funding was sought to help fund the ensuing years of the project. Those efforts have resulted in an offer from the BOR to provide an additional $475,000 in funding for 1996. This amount, combined with that provided in 1995, would increase the BOR participation in this project to a total of $925,000. The estimated cost of the City's participation in Phase I-Project 2 are projected to be $3,258,400. If this Assistance Agreement is used, the City's costs would be reduced by $475,000. The City has already entered into a funding agreement with the U.S.G.S. that will give the City $200,000 in 1996, so in combination with the BOR agreement the net cost to the City for this phase of the demonstration project is $2,583,400. Funding for this project is included in the CIP as project W-403. The demonstration project has a total authorization for $4,500,000 for the years from 1996 to 2000. Motion -- Knight moved that the Modification of the Assistance Agreement be approved and -- carried the Mayor be authorized to sign. Motion carried 7 to 0. PROPERTY DISPOSITION SALE OF HOUSE LOCATED AT 2215 E. GEORGE WASHINGTON BOULEVARD. (District III) Agenda Report No. 96-071. In July, 1992, the City Council approved the acquisition of 2215 George Washington Boulevard as part of the Dry Creek Improvement Project. The house was acquired on October 15, 1992. The improvements are subject to periodic flooding and must be removed. There have been two attempts to sell the house via sealed bid. The first attempt resulted in a high bid of $8,500 but the buyer eventually defaulted. The second attempt attracted no bids. The house is quite large, 2,876 square feet four bedrooms and 2.5 baths. The size and construction type makes the house very difficult to move. The house has been vandalized several times and the vacant nature of the property has caused several citizen comments. Subsequent to the last sealed bid offering, an offer has been received for the house. An individual has offered $100 to move the house and remove the foundations. He has contracted with a reputable house mover to move the house and with a City-approved demolition contractor to clear the site once the house is moved. The structure is being moved out of the County. The City will receive $100 for the improvements. In addition, the City will save the cost of demolishing the structure. Due to its size and current condition, demolition could run as high as $8,000. Motion -- carried Knight moved that sale of the structure be approved. Motion carried 7 to 0. SALE OF HOUSES LOCATED AT 2118 E. 3RD AND 613 MCLEAN BOULEVARD FOR THE INFILL HOUSING PROJECT. (District I and VI) Agenda Report No. 96-072. The Infill Housing Project, approved by council on August 30, 1994, will require that several houses be auctioned in "as is" condition for privately financed moves to other lots. Sealed bids on twelve properties, including the two subject houses, were solicited in December. No bids for these properties were received at that time. Subsequent to the bid opening, an offer of $250 was received from Ronald Lamar for 2118 E. 3rd, and an offer of $1,000 was received for 613 McLean from AAA House Movers. 2118 E. 3rd is to be moved within the City limits, and 613 McLean is to be moved outside of the City limits. Other bids received from the December auction ranged from $10 to $1,900. the City will receive a total of $1,250 for the sale of these structures. The relocation of one of these structures within the City limits will place additional value into the tax base. Motion -- carried Knight moved that sale of the structures be approved. Motion carried 7 to 0. SURPLUS PROPERTY LOCATED ADJACENT TO 2401 NORTH PORTER. (District VI) Agenda Report No. 96-073. The property under consideration is legally described as the South 30 feet of Lot 10, Block 5, Builders 7th Addition to Wichita, Sedgwick County, Kansas. The property contains approximately 3,000 square feet and was deeded to the City on November 19, 1952 as street right of way for High Street now 23rd Street. The street was never constructed and it now appears that the site may be declared as surplus. A single family home owned by William R. and Dana H. Culbertson was constructed on the remaining portion of the lot. While attempting to sell their home, a survey was commissioned in which it was discovered that the garage encroached upon the City's portion of the property approximately 20 feet. The Culbertson's would like to purchase this property from the City in order to clear their title. All City departments and local government entities have been notified and have shown no interest in the property. Public Works has requested that a 10 foot ingress and egress easement be retained so they may have access to the East bank of the river for maintenance purposes. Mr. Culbertson will acquiesce to this easement. Since there is no interest in retaining ownership, and because it is costly to maintain, it appears to be in the best interest of the public to declare the property as surplus and offer it for sale to the prior owners, the adjacent owners and to the general public. The City will receive cash consideration for the sale of the property. The surplus and sale of this property to a private party will place additional value into the tax base. Motion -- Knight moved that the property be declared as surplus and designated as available -- carried for sale to the general public. Motion carried 7 to 0. (Item No. 20) CONVENTION HOTEL LENDER APPROVE LENDER PROTECTION AGREEMENT FOR EAST BANK HYATT REGENCY CONVENTION HOTEL PROTECTION AGREEMENT LEASEHOLD MORTGAGE LOAN. Council Member Ferris Council Member Ferris reviewed the Item. Agenda Report No. 96-074. On December 28, 1995, the City Council approved the various agreements with Stormont Trice Corporation and the East Bank Hotel Associates (EBHA) for the development of the East Bank Hyatt Regency Convention Hotel. The agreements provide for the turn-key development of the 300-room full service convention hotel, 12,000 square feet of additional meeting space for Century II and a 500-car parking garage, all adjacent to the Century II Expo Hall on the banks of the Arkansas River. The agreements also provide for the completion of the financial arrangements needed for the private financing of the Hyatt Hotel, including debt and equity financing. Prior to the selection of Stormont Trice as the preferred developer of the Hyatt Hotel, City officials and community leaders worked with leaders of the banking community to arrange a preliminary loan commitment from a consortium of all local lending institutions. This commitment and the very favorable terms offered by the consortium were instrumental in bringing a hotel developer to the table. Stormont Trice Corporation, as managing member of EBHA, and the lender consortium have completed negotiations of a $15.9 million loan for the construction of the Hyatt Hotel. The loan, which is scheduled to close on or about January 31, 1996, is secured primarily by a first lien on EBHA's interest in the 99-year lease between the City as the owner of the hotel and landlord, and EBHA as tenant. In order to further secure its leasehold security interest, the lenders are asking the City to enter into a Lender Protection Agreement. The lease between the City and EBHA for the Hyatt Hotel provides for high standards of operation and maintenance and requires City approval for any changes such as hotel chain affiliations and sale of the leasehold interest. The Lender Protection Agreement addresses modifications of lease provisions in the unlikely event the lenders foreclose on the loan and assume the tenant's position under the lease. The provisions of the Agreement are intended to enhance the lenders' ability to quickly find a buyer for the hotel lease under such circumstances. Under the Lender Protection Agreement, in the event the lenders should ever have to foreclose on the loan and assume the position of tenant in the hotel lease, lenders would only be required to use their best efforts to maintain the high standards of physical condition required by the lease or to maintain the Hyatt franchise (or other franchise then in place). They must use their best efforts to sell their interest as tenant in the hotel lease as a going concern, meaning they would not close the hotel. In addition, as tenant the lenders would not be required to pay into or maintain the balance of the hotel's reserve for furnishings and equipment replacement, so long as hotel revenues were not sufficient to pay debt service on the lender's loan. Lenders would not be required to make payments to the reserve from any source except hotel operating revenues. These provisions are intended to provide the lenders with the freedom and flexibility they need to have in order to quickly and effectively liquidate the loan collateral in the event of foreclosure. The Lender Protection Agreement also gives the lenders the right to assume EBHA's position in the Parking Operating Agreement, Conference Center Operating Agreement and Catering Agreement in the event that they become the hotel tenant, and to assign their rights and duties under these agreements to the purchaser of the leasehold interest in the hotel. The Agreement gives the lenders a superior lien on the hotel's personal property and provides that the City will cover any shortfall in revenues and reserves available to pay property taxes during the first three years of hotel operation, not to exceed a total of $1 million. Subject to the cash basis and budget laws of the state, the City would be required to reimburse the lenders for any loan proceeds drawn down in the event the City is the cause of a default under the Master Development Agreement which results in termination of the project. Likewise, if the City is the cause of a lease default that results in a termination of the lease after the hotel opens, the City would be required to retire the outstanding loan balance (again, subject to appropriation of funding by the Council at the time). The Lender Protection Agreement gives the City the right to buy out the lenders by retiring the loan, and the right of first refusal to buy the leasehold interest by meeting the price offered by any purchaser in a sale of the lease under foreclosure. This is intended to protect the City from having a tenant and hotel operator which it has not approved. There are no financial obligation created by this Agreement except in the event of foreclosure on the leasehold mortgage loan to EBHA or if hotel revenues do not cover both taxes and loan payments during the first three years of operations. All financial obligations, except the obligation to cover shortfalls in property taxes during the first three years, are subject to authorization and appropriation for the funding of such obligation, as required by law. Motion -- Ferris moved that the Agreement be approved and the Mayor be authorized to -- carried execute. Motion carried 7 to 0. ORDINANCES FIRST READING ORDINANCE. ORDINANCE Assessing Ordinance An Ordinance making a special assessment to pay for the removal of certain structures, being dangerous and unsafe buildings which have been declared a nuisance under the provision of Sections 18.16.010 to 18.16.090 of the Code of the City of Wichita, Kansas, introduced and under the rules laid over. PLANNING AGENDA Mayor Knight momentarily absent (present for vote); Vice Mayor Kamen in the Chair. V-1940 PUBLIC HEARING - V-1940 - REQUEST TO VACATE A PORTION OF A PLATTED FLOODWAY IN AN AREA WEST OF MERIDIAN, NORTH OF MACARTHUR. (District IV) Agenda Report No. 96-075. Staff Recommendation: Approve vacation of platted floodway. MAPC Recommendation: Approve vacation of platted floodway. Easement Floodway Easement from Bethel Life Center Assembly of God. (Part of Lot 1, Block 1, Bethel Assembly Addition) Dale Miller Planning Staff member reviewed the Item for the City Council. The notice of hearing was published twice and no written protest had been filed. Vice Mayor Kamen Vice Mayor Kamen inquired if anyone wished to be heard on this Item and no one appeared. Motion -- Cole moved that the public hearing be closed, the easement and vacation be approved as recommended, the Mayor be authorized to sign the Vacation Order, and a certified copy of the Order and the easement be recorded with the Register of -- carried Deeds. Motion 7 to 0. V-1934 PUBLIC HEARING - V-1934 - REQUEST TO VACATE AN ALLEY RIGHT-OF- WAY IN AN AREA NORTH OF 18TH STREET NORTH BETWEEN WABASH AND OHIO. (District VI) Agenda Report No. 96-076. Staff Recommendation: Approve vacation of an alley right-of-way. MAPC Recommendation: Approve vacation of an alley right-of-way. Easement Easement from Elmo Santner, Evergreen Mold Company. (Part of lots 59, 61, 63, 65, 67, 69, 71, 73, 75, and 77, Block 3, Marquis Addition; and part of lots 60, 62, 64, 66, 68, 70, 72, 74, 76, and 78, Block 3, Marquis Addition) Dale Miller Planning Staff member reviewed the Item for the City Council. The notice of hearing was published twice and no written protest had been filed. Vice Mayor Kamen Vice Mayor Kamen inquired if anyone wished to be heard on this Item and no one appeared. Motion -- Cole moved that the public hearing be closed, the easement and vacation be approved as recommended, the Mayor be authorized to sign the Vacation Order, and a certified copy of the Order and the easement be recorded with the Register of -- carried Deeds. Motion 7 to 0. V-1937 PUBLIC HEARING - V-1937 - REQUEST TO VACATE A UTILITY EASEMENT IN AN AREA SOUTH OF 34TH STREET NORTH AND EAST OF ROCK ROAD. (District II) Agenda Report No. 96-077. Staff Recommendation: Approve vacation of utility easement. MAPC Recommendation: Approve vacation of utility easement. Dale Miller Planning Staff member reviewed the Item for the City Council. The notice of hearing was published twice and no written protest had been filed. Vice Mayor Kamen Vice Mayor Kamen inquired if anyone wished to be heard on this Item and no one appeared. Motion -- Cole moved that the public hearing be closed, the vacation be approved as recommended, the Mayor be authorized to sign the Vacation Order, and a certified copy of the Order be recorded with the Register of Deeds. Motion carried -- carried 7 to 0. V-1938 PUBLIC HEARING - V-1938 - REQUEST TO VACATE A UTILITY EASEMENT IN AN AREA APPROXIMATELY 750 FEET SOUTH OF KELLOGG AVENUE ON MAIZE ROAD. (District V) Agenda Report No. 96-078. Staff Recommendation: Approve vacation of utility easement. MAPC Recommendation: Approve vacation of utility easement. Dale Miller Planning Staff member reviewed the Item for the City Council. The notice of hearing was published twice and no written protest had been filed. Vice Mayor Kamen Vice Mayor Kamen inquired if anyone wished to be heard on this Item and no one appeared. Motion -- Cole moved that the public hearing be closed, the vacation be approved as recommended, the Mayor be authorized to sign the Vacation Order, and a certified copy of the Order be recorded with the Register of Deeds. Motion carried -- carried 7 to 0. Mayor Knight in the Chair. RECESS The City Council recessed to workshop session on the Police Public Safety Initiative at 10:28 a.m. and reconvened in regular session at 11:28 a.m. (The Council took up the General Obligation Note and Bond Sale and action is shown in agenda order.) RECESS The City Council recessed to workshop session on the Downtown Landscaping Plan at 11:32 p.m. and returned in regular session at 11:43 p.m. EXECUTIVE SESSION Motion -- Knight moved that the Council recess to a joint workshop session with the County Commission, to be held at Cowtown; return to the Council conference room at 2:00 p.m. and move to executive session to consider consultation with legal counsel on matters privileged in the attorney-client relationship relating to potential litigation, legal advice, and contract negotiations, and the regular meeting be resumed at approximately 2:30 p.m. in the City Council Chambers. Motion carried -- carried 7 to 0. RECESS Council recessed to a joint workshop with Sedgwick County on (1) the New Zoning Code, and (2) the Cowtown Development Plan at 11:45 a.m., then moved to executive session, and reconvened in regular session at 2:52 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 2:52 p.m. Pat Burnett Deputy City Clerk COUNCIL PROCEEDINGS JOURNAL 160 JANUARY 30, 1996 Page