MINUTES OF THE MEETING OF THE CITY COUNCIL Wichita, Kansas, August 15, 1995 Tuesday, 9:02 A.M. The City Council met in regular session with Mayor Knight in the Chair. Council Members Cather, Cole, Gale, Kamen; present. *Council Members Ferris, Rogers; absent. Chris Cherches, City Manager; Gary Rebenstorf, Director of Law; Patricia L. Burnett, Deputy City Clerk; present. The invocation was given by Rev. Frances Rathbun, Brookside 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 August 8, 1995, were -- approved approved 5 to 0. (Ferris, Rogers; absent) AWARDS AND PRESENTATIONS PROCLAMATIONS Mayor Knight presented the Proclamation that was previously approved. PUBLIC AGENDA COMMENTS BY KATHLEEN B. RAGER, WICHITA STATE UNIVERSITY. Kathleen Rager Kathleen Rager, Director, WSU Downtown Center and Contract Training Services, reviewed the services provided by the Center located at 127 North Market. COMMENTS BY JOHN OLLER, 202 EAST GILBERT. John Oller John Oller, 202 East Gilbert, explained that he had purchased property at 948 South Market at a tax foreclosure sale. There was a not yet levied condemnation special assessment in the amount of $1,700 which was pending at the time of purchase. Mr. Oller has tried to save the $1,700 but has been unable to save the total amount needed and the amount cannot be paid in installments. Gary Rebenstorf Director of Law said the assessment is a lien on the property and is not subject to City Council waiver. Mayor Knight Mayor Knight suggested Mr. Oller meet with the Director of Law for clarification of the legal issues. COMMENTS BY JILL MATTHEWS, FIRST UNITED METHODIST CHURCH. Jill Matthews Jill Matthews, First United Methodist Church SpiritFusion Task Force, discussed City Code Section 4.16.155 which prohibits minors from entering or remaining in drinking establishments. Ms. Matthews said the SpiritFusion Task Force is seeking to launch a Saturday night worship celebration in Old Town. The only places that could facilitate the celebration due to lighting, staging, and sound requirements, are drinking establishments which would require an exception to the code. Mayor Knight Mayor Knight referred the matter to the City Manager and legal department for analysis. NEW BUSINESS Council Member Rogers present. IRB - HAYES COMPANY REQUEST FOR LETTER OF INTENT FOR INDUSTRIAL REVENUE BONDS - THE HAYES COMPANY, INC. (District VI) Chris Cherches City Manager reviewed the Item. Agenda Report No. 95-658. The Hayes Company, Inc. (Hayes) is requesting the issuance of a Letter of Intent for Industrial Revenue Bonds in an amount not to exceed $1,600,000. The bond proceeds will be used to construct and equip an addition to Hayes' manufacturing facility, located at 800 East 37th Street North, and to purchase additional machinery. Hayes is also requesting that the City grant a 100% ad valorem tax abatement for a 10- year period. Hayes manufactures and sells ornamental iron and wood garden accessories, fencing, pallets and commercial site furnishings. Products include iron plant hangers, plant stands, wood planters, bird houses and feeders, residential style wood fence and wrought iron fence and shopping mall benches and receptacles. Hayes garden products are sold through WalMart, Payless Cashways, Home Depot, K-Mart, Hobby Lobby, Dillons and its parent Kroger and Canadian Tire. The furniture is sold to companies like Pizza Hut and various commercial catalog companies. The pallet business serves customers like Rubbermaid, Coleman, Dold, J. I. Case and similar customers. Hayes exports over 95% of its products outside the State of Kansas. Hayes will have a current approved EEO/AA Plan on file with the City's Human Resources Department prior to the issuance of the bonds. The cost/benefit analysis based on the fiscal and economic impact model of the University of Kansas Institute for Public Policy and Business Research will be provided to the City Council upon its receipt. Proceeds from the requested bonds will be used to construct a 37,500 s.f. building addition to Hayes' facility and to purchase additional equipment to meet their capacity needs. The project consists of the following: USES OF FUNDS * Expansion of Facility. $1,000,000 * Purchase of Equipment. 400,000 * Land Improvements. 100,000 * Bond Reserve 25,000 * Construction Interest 37,500 * Contingency 7,500 * Cost of Issuance: 67,500 Total Cost of Project: $1,637,500 Riedl & Co. will underwrite the bond issue. The firm of Hinkle, Eberhart and Elkouri, L.L.C. will serve as bond counsel in the transaction. The Hayes Company, Inc. currently employs 73 people at its Wichita facilities. Current expansion plans for Hayes, forecasts an increase in employment at the Wichita facility of approximately 38 people over the next five years. If these projections are met, over $651,430 in new personal annual income will be added to the Wichita economy through wages paid to Hayes' expanded work force. The Hayes Company, Inc. 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. Hayes is requesting a 100% tax abatement of ad valorem property taxes on the project for a 10-year period in accordance with City Policy. Under City's Business Incentive Policy, Hayes qualifies for an 100% tax abatement. During the 10-year period of the requested property tax abatement, Hayes will continue to pay taxes on the current facility. The real and personal property taxes paid by Hayes in 1994 was $13,791. Property taxes on improvements and personal property financed with IRBs would be 100% abated for 10 years. Estimated first year taxes abated on the proposed project are $38,075, of which $10,505 is the City portion, $9,941 the County/State portion, and $17,629 the U.S.D. 259 portion, based on the 1994 mill levy of 113.42 mills. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Cole moved that issuance of and authorization for the Mayor to sign a Letter of Intent to The Hayes Company, Inc. for Industrial Revenue Bonds in an amount not to exceed $5.0 million and grant a tax abatement of 100 percent for 10 years, subject to the following conditions be approved: 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 6 to 0. (Ferris absent) (The Council presented the previously approved proclamation; action is shown in Agenda order.) DETAMC, INC. PUBLIC HEARING AND TAX EXEMPTION REQUEST - DETAMC, INC. (District V) Agenda Report No. 95-659. DETAMC, Inc. (DETAMC), contracts with the local major manufacturers to repair tools and sharpen drill bits used in the aircraft and farm implement business on products exported outside the State of Kansas. DETAMC also provides training and employment to targeted unemployed in the fields of machine shop work, computer repair and operation and housing rehabilitation. DETAMC, located at 2102 East 21st Street North, is requesting a tax exemption on a $599,666 expansion project consisting of the construction of a building and the purchase of machinery and equipment. DETAMC has been engaged in business since 1992. DETAMC has 29 employees and expects to add another 14 new employees over the next year. The $599,666 expansion project will consist of the following: Construction of Building: A 10,000 s.f. building. $484,847 Purchase of Equipment: CostTotal Quantity Description EachCost 2 Bridgeport Series II CNC Vert Mill Mach $25,750$51,500 1 Ingersoll Rand Air Compressor 5,960 5,960 1 Delta 14" Bank Saw 1,572 1,572 4 Workmate Work Benches 196 787 - Misc. Inspection Tools - --- 30,000 5 PC Computers 10,000 50,000 - Misc. Computer repair tools & Equipment - --- 15,000 Total $114,819$599,666 Under the City's Business Incentives Policy, DETAMC is eligible for the following: TAX EXEMPTION ELIGIBILITY ELIGIBLE % INCENTIVE EXPLANATION 28.5% New Job Creation: DETAMC presently employs 29 full-time employees at its facilities and expects to hire an additional 14 employees within the first year after the completion of the project. 10.5% Capital Impr: Invest approximately $599,666 in construction of building and purchase of personal property. 20.0% Location Premium: DETAMC is located in an area eligible for the incentive. 59.0% Total Business Incentives 50.0% TOTAL ELIGIBLE FOR BUSINESS INCENTIVES (Maximum allowed is 50%) 50.0% Export Premium DETAMC exports 100.0% of its products out of the State of Kansas. 50.0% TOTAL ELIGIBLE FOR EXPORT PREMIUM (Maximum allowed is 50%) 100.0% TOTAL EXEMPTION ALLOWED UNDER BUSINESS INCENTIVE POLICY DETAMC is eligible for a 100.0% tax exemption for five years on real and personal property and for 50.5% for a second five years on the real property. A notice of public hearing has been published. DETAMC will maintain a City of Wichita approved EEO/AA Plan for the full term of the Tax Exemption. The estimated first year taxes on DETAMC's proposed $599,666 project under the 1994 mill levy on property within the Wichita City limits would be $16,538. Using the allowable tax exemption of 100.0%, the City would be exempting, for the first year, $16,538 of new taxes from the property tax rolls. KU's Cost-Benefit Analysis indicates a combined ratio of 1.25 of benefits to costs with a 100.0/50.0 percent exemption for DETAMC. DETAMC paid $1,004 in existing real and personal property taxes in 1994 and will continue to pay taxes on the existing property. The policy exemption equates to $1,181 of exempted taxes per each new job (14 new jobs). The tax exemption will be shared among the taxing entities as follows: City - $4,563; County/State - $4,318; and USD 259 - $7,657. Chris Cherches City Manager reviewed the Item and explained that, in reviewing the proposal, because of public Community Development Block Grant (CDBG) funds attributed, the private investment would be reduced by $220,000. DETAMC is engaged in contracts with various local manufacturers repairing tools and sharpening drill bits, etc., in conjunction with the aircraft industry and farm implement business, and in training some unskilled in the fields of machine work, computer repairs, and housing rehabilitation work. The Council should decide whether or not the business is within the definition of the State Constitutional amendment as far as manufacturer because the business incentive policy is somewhat general in that area. However, the Board of Tax Appeals will ultimately rule on this matter. Under the Business Incentive Policy, the business qualifies for a 92 percent tax exemption. If the export provision is removed, it would qualify for a 55 percent tax exemption. "I would recommend you approve the 92 percent and see if the Board of Tax Appeals would go along with that decision." Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Knight moved that the Public Hearing be closed, a 92 percent tax exemption be -- carried granted; and the Ordinance be placed on first reading. Motion carried 6 to 0. (Ferris absent) ORDINANCE An Ordinance exempting property from Ad Valorem Taxation for economic development purposes pursuant to Article 11, Section 13, of the Kansas Constitution; providing the terms and conditions for Ad Valorem tax exemption; and describing the property of DETAMC, Inc., so exempted, introduced and under the rules laid over. *Council Member Ferris present. BUDGET 1996 BUDGET. (This was a time-certain item and was taken up at the end of the meeting. Action is shown in Agenda order.) Mayor Knight absent; Vice Mayor Kamen in the Chair. (A) 1996 ANNUAL OPERATING BUDGET AND REVISIONS TO THE 1995 BUDGET. Chris Cherches City Manager reviewed the Item. Agenda Report No. 95-610 A. The City Council has received public comments and held workshops on the proposed 1996 budget. The City Council and Sedgwick County Commission have received the resolutions to approve joint budgets for Flood Control, Health, and Planning. On August 1, 1995, the City Council authorized the publication of the notice of hearings, and set the maximum mill levy for the 1996 City budget. 1996 Operating Budget. The proposed 1996 annual operating budget has been published at $299,283,210 (including appropriated fund balances and certain trust funds, as required under State law). As published, the budget will require $48,606,040 in current property taxes (including the delinquency allowance) for the General Fund and Debt Service Fund. The mill levy needed to finance the 1996 budget as published is 31.3 (21.3 General Fund and 10.0 Debt Service). Jointly Funded Budgets. The General Fund includes City of Wichita contributions to the jointly funded City-County budgets in the following dollar amounts and percentages/shares: Wichita-Sedgwick County Flood Control Works - $ 651,590 (50%) Wichita-Sedgwick County Department of Community Health - 2,287,070 (60%) Wichita-Sedgwick County Metropolitan Area Planning Dept. - 516,090 (50%) The City Council is asked to formally approve joint agreements for these functions. The Sedgwick County Commission will approve the joint agreements for the County share of these functions. Fee Changes. The 1996 proposed budget assumes the following actions with respect to fees: The addition of a Domestic Violence $3/case court costs assessment. A $5 increase in the warrant fee (from $10 to $15). Rental rate increases for Century II. Revision to the alarm ordinance (to be presented later). Reduction of the (Office of Central Inspection) building permit discount from 25% to 15%. Park swim lesson increases. Library overdue book fee increase (to $.25 per day/maximum $4). Planning fee schedule (periodic updating currently being prepared for review by the Planning Commission). Landfill CPI increase (to be presented at a later date.) In addition, if one or both (deleted) Animal Control Officer positions are to be restored, a dog license increase of $1.50 (added to current fee of $10-25) would be required to avoid a drawdown on cash reserves. 1995 Revised Budget. Several proposed revisions in the 1995 budget will be considered for approval on August 15, concurrent with the 1996/97 budget. These revisions have been incorporated into the proposed 1996/97 budget document as "1995 Revised" amounts, and increase expenditure authorizations for four funds: Tourism and Convention Fund, Property Management Operations Fund, State Office Building Fund, and Sewer Utility Fund. These changes were outlined in Agenda Report No. 95-610 considered by the Council on August 1, 1995. The following issues/concerns are provided for City Council consideration and direction: 1. Reserves - A separate report, Use of Reserves, has previously been submitted to the City Council (July 25, 1995). 2. Positions - Some Council members have indicated a desire to restore some positions deleted from the proposed budget. A determination needs to be made as to these positions at an early date. (Out of a net 34 reductions, about 22 are (or will be) vacant by year end.) 3. Grant Positions - Loss of State grants will result in a reduction of fifteen police officer positions. The proposed budget provides for hiring 19 positions, or a net increase of four. The positions will absorb the grant positions currently filled. To restore the fifteen officer slots will require approximately $750,000. 4. Fee Increase/Reductions: The following fee adjustments are proposed in the budget. To adopt the current expenditure budget without the benefit of the proposed fee increases will result in an unbalanced budget. a. Domestic Violence Case Fee - increase by $1.00 (to $4.00) b. Warrant Fee (from $10 to $15) c. Rental rates at Century II - parking, storage, and office. d. Library overdue books - to 25 cents, maximum fine of $4 e. Golf fees - $1 (from $12 to $13), with associated adjustments f. Transit fee adjustment .14 cents (from $.85 to $1). Council Member Kamen has proposed an increase in dog licenses to support positions deleted in the Animal Control budget in 1996. A reduction of $.50 in the Landfill budget tipping fee (City has option to allow this fee to remain at same to cover future costs or reduce it.) Other actions on the Alarm permit reduction and Storm Water Utility franchise are anticipated with budget approvals. 5. Storm Water Utility Fee adjustment/transfer - the Council took action to remove $1,043,967 from the SWU and placed it in the taxing funds (a total of $1,558,467). No direction has been established as to how to handle the increase. 6. Floodway repairs - the Council has approved $2.0 million to repair damages to the floodway system and needs to determine whether to fund the expense from the General Fund or Debt Service Fund. 7. Retirement Buyout Fund - the proposed budget provides for case-by-case buyout of employee retirements necessitated by organizational changes or budget reductions. 8. Public Safety - the proposed budget provides for: a. Added fire personnel and equipment to backfill existing fire station. This cost equals about $825,000. The action buys time prior to the need to construct, equip, and staff a new fire station, cost of $1,738,000. b. Transfer of four police (civilian) positions to the County as part of the new Forensic Lab. A savings of $214,000 (1996) result from the transfer. If the transfer is not made, the amount would have to be added to the Budget. 9. Library - in 1994, Library hours were reduced with the elimination of some part-time staffing. The proposed budget is based on these hours being reduced by five percent in 1996-1997. To restore the reductions would require $26,450 in 1996 and $28,310 in 1997 for three part-time positions. 10. Art Museum - A recommendation was made that all funding for the Art Museum, except restricted contributions, be received in the Museum Budget and not maintained by the Art Board as a separate and private fund for non-budgeted allocations. Likewise, it is recommended that non- restricted funding received by the Friends organization, on behalf of the Wichita Art Museum, be budgeted in the Art Museum Budget and used (and properly account for) to enhance the Museum services/exhibitions. 11. Animal Control - Council Member Kamen has requested information and consideration of retaining the positions proposed for deletion in the 1996 budget. The City Council may wish to request the County to consolidate its animal services with the City's to improve operations, response and efficiencies, together with more flexibility in handling animal control challenges. To offset the costs for the animal control position deletions, a $1.50 increase would be required, based on current licenses being issued. This increase would place Wichita's license fee somewhat higher than comparable cities. To restore the positions, an amount of $42,200 would be required. 12. Planning - The County Commission has approved an allocation equal to one-half of a planning position for contracting neighborhood planning. The Council should decide if it wishes to increase its budget to restore the position or approve the budget with the added funding earmarked by the County. 13. Swimming Pools - the proposed budget provides for the closure of two pools - Fairmount and Lincoln, in 1996; College Hill Pool is scheduled for closure in 1997. The Council's options are to continue operation of these two pools and budget funding for capital improvements to the pools, or to approve closures. 14. Funding for facilities - the budget continues the policy decision by the Council (1993) to cap (subsidy) General Fund support to the Museum, Botanica, Cowtown, and Historical Museum. As costs escalate, it will become important that the various boards expand their funding support for the facilities. The Botanica Board has requested it be allowed to pay its share of the parking improvements $14,000 over a ten-year period. Because of the distant relationship with the Historical Museum, it is proposed that the City Council consider its future funding support beyond 1997 and turn the operation over completely to a non-profit organization. 15. WSU Service Levy - a proposal was made by a group of individuals (headed by Fred L. Marrs) wishing to utilize mill levy funds to restore Cessna Stadium. The USU Bd. of Trustees proposed budget does not include this project. If requested by the University President and Board of Trustees, a determination will have to be made by the City Council (and the County Commission) about this proposal and use of WSU funding allocations. 16. OCI Budget - The budget proposes to reduce the permit discount rate (from 25%) to 15% in l996 in recognition of a declining income base from building activity. The proposed l997 budget projects no discount of permit rates. The budget proposes a minimum of a three month operating reserve. Should the reserve not be adequate to meet expenses, any discount will be discontinued and/or rates adjusted. Council acceptance of this concept is needed. 17. MTA Service - It is recommended that the MTA Board be asked to review the transit budget and provide its recommendations (on or before December 31, 1995) on how to maintain operations consistent with revenues available both now and in the immediate future. 18. S.A.M. Transit Facility - The City received a FTA grant of over $5.8 million to construct a new facility. The City's share of this 80-20 grant is approximately $1.5 million. The Federal Transit Administration has requested a decision from the City as to its plans on proceeding with this project or returning the grant offered. A decision is requested on or before August 10, 1995. The previous City Council agreed that this grant should be accepted but delayed a decision on where the City's share of this improvement would be allocated. It is recommended that the City Council provide direction to the Staff as to how it wishes to proceed. Vice Mayor Kamen Vice Mayor Kamen inquired if anyone wished to be heard. Jack Handley Jack Handley, South Central Improvement Alliance, said only new swimming pools have to meet ADA requirements. Mr. Handley questioned the priority of the City spending $150,000 for public art instead of for the children. Lois Ann Newman Lois Ann Newman, South Central Progressive Association, spoke against the closing of neighborhood pools and said the City should help and not delay repairs year after year. Ms. Newman suggested cash reserves could also be used for pool repairs. Jack Myers Jack Myers, President of the Human Services Board, spoke against the closing of neighborhood centers. James Van Milligan James Van Milligan, President of the Fairmount Neighborhood Association, said the Fairmount pool is underutilized and is too small. Mr. Van Milligan agreed with the closing of the Fairmount pool. Ted Grovener Ted Grovener, Great Plains Transportation Museum at 700 East Douglas, said there is on-going restoration and remodeling of the only museum in Old Town. The Museum is eligible for funding and Mr. Grovener asked for a fair share of the funds. Council Member Cole left the Bench. Tom Burnett Tom Burnett, President of the FOP, said encouraged the Council to support the Mayor's Select Committee's recommendations on Public Safety. Mr. Burnett said he agreed that there should be a review after 1996 but that the recommendations should be funded fully through 1997. All of the funding would not necessarily need to come out of reserves as there are some other sources, including grant funds, available. MaryAnn Kouri MaryAnn Kouri, ADAAB, recommended that funds be redirected to the Pueblo Program which provides a service to non-English speaking citizens. Council Member Cole present. Ms. Kouri the Big Brother/Big Sister Program and Youth Development Services provide training which can be done by others. Nick Mork Nick Mork, Executive Director of Big Brothers/Big Sisters, said 98 percent of the ADAAB money goes to match at-risk children which is not something that another agency can step in and do. The program prevents substance abuse. Mayor Knight present and in the Chair. Mary San Martin Edmunds Mary San Martin Edmunds, Director of the Pueblo Program, said a lot of time is spent developing parenting skills and learning English. The program is primary intervention. Other revenues are $30,000 (matched) funds from the United Methodist Health Care Fund which will be reduced to $15,000 in 1996; and some funding from SRS which will be reduced in 1996. Clients are primarily adults with 72 percent being 25 to 44 years of age and 70 percent being married and having families. Rev. Sylvia Farmer-Drew Rev. Sylvia Farmer-Drew, Director of Development for Big Brothers/Big Sisters, said there are currently over 600 children which Big Brothers/Big Sisters works with one-on-one of which 20 percent are Hispanic. One-on-one interaction opens opportunities for the children to gain self esteem and skills. Shelly Shelly (inaudible), Youth Development Services, said the Challenge Club Program ranks as a priority number one program and addresses prevention and treatment of persons in high-risk groups. The target population is children in SRS custody who have been identified by the courts as neglected and in need of care, and children who are at risk for illegal and unsafe behavior and have already broken the law. Funding approval was urged. Motion -- carried Knight moved that the public hearing be closed. Motion carried 7 to 0. (The Council moved to executive session and lunch and then returned to this item.) Motion -- Ferris moved that a budget adjustment be made for 1995 and that the 1996 budget include $4.2 million from General Fund Reserves for the purpose of implementation of the Police Task Force and the Municipal Court. Council Member Ferris Council Member Ferris explained that the Task Force recommendation was approximately $4 million for the Police Study for years 1995 and 1996. The report on the Task Force for the Municipal Courts for 1996 was $200,000. These two would equal the $4.2 million which would be made available. Individual implementation procedures can be done at a later date but appropriation will be made. -- carried Motion carried 7 to 0. Motion -- Ferris moved that $1.043 million be taken from the General Fund Reserves to be used for the City's General Fund contribution above the $500,000+ already -- carried allocated for the Storm Water Utility. Motion carried 7 to 0. Council Member Ferris Council Member Ferris, regarding the golf course fees, said that in looking at projections, it appears the $1 increase will not be necessary to accomplish the capital projects previously approved and some additional projects. Motion -- Ferris moved that the $1 increase in golf course fees be deleted from the 1996 Budget. Council Member Rogers Council Member Rogers said he could not vote for the motion because he did not see the golf course operation separate from the total park operation. Council Member Ferris Council Member Fees explained that the golf courses pay an administrative charge to the City and are totally self-supporting. -- carried Motion carried 6 to 1. Rogers - No. Council Member Ferris Council Member Ferris said that about four to five years ago, the City lowered the property tax in the Debt and Interest Fund and increased it in the General Fund so that a property tax could be off-set. The revenues in the Debt and Interest fund have been lowered but a lot of challenges have been taken on which were not previously budgeted. The capital program needs to be more aggressive, the temporary note projects need to be closed out, and new projects need to be moved forward. Motion -- Ferris moved that $2 million be taken out of the General Fund Reserves (1995 and 1996) and be appropriated for repairs to the floodway (Big Ditch). Mayor Knight Mayor Knight expressed concern because, as a general rule, it is a mistake to use operating funds to finance permanent improvements. Ray Trail Director of Finance said the repairs are shown for $2 million in 1996 and it may be spread over 1996 and 1997 depending on how long the effort is to get the necessary engineering work completed. Mayor Knight Mayor Knight stated that everything he had heard indicates a sense of urgency about the repairs. Ray Trail Director of Finance responded that Sedgwick County has scheduled its first million dollars for 1996. If Public Works can move forward quickly enough and start things this year, it would be possible to bring to the Council action that would initiate the effort as quickly as possible. Chris Cherches City Manager said the City has been waiting for over a year to get a permit from the Corps of Engineers to do some of the work and just recently the permit was received. Council Member Ferris Council Member Ferris said that an earlier response from the Director of Finance, with regard to when the money was going to be appropriated for the repairs, was 1995 and 1996. This is really a 1995 and 1996 allocation. There is no need to allocate the 1997 money today. The motion should indicate this is a 1995 and 1996 allocation. Chris Cherches City Manager said there is work being done now and the some of the money will be needed this fiscal year. -- carried Motion carried 6 to 1. Rogers - No. Motion -- Kamen moved that the $26,450 be restored to the Library Budget in 1996 from General Fund Cash Reserves. Council Member Ferris Council Member Ferris said the only way he would support adding on-going increases (future and on-going) would be with corresponding cuts in the budget. An offer was made for $70,000 from the WI/SE Budget. Council Member Cole Council Member Cole said funds should not be taken from WI/SE because it is for economic development. Council Member Gale Council Member Gale expressed preference for finding room in the General Fund Budget rather than from Cash Reserves. -- carried Motion carried 5 to 2. Ferris, Gale - No. Ray Trail Director of Finance, regarding the Animal Control operation, said Animal currently has 18 full-time and 1 part-time position. Action in the proposed budget would reduce staff to 17 full-time positions. Council Member Kamen Council Member Kamen said he felt that Animal Control could be partially privatized but it should not be allowed to lose efficiency until a determination can be made. The recommendation is for 1996 only. Motion -- Kamen moved that $41,300 be reinstated to Animal Control. Amendment -- Kamen, with consent of the second, amended the motion to add that Staff be instructed to return to the Council with a plan to maintain the level of service for 1997 either through privatization or staffing. -- carried Motion, as amended, carried 7 to 0. Motion -- Cather moved that $200,000 be allotted to new Park acquisitions. Council Member Cather Council Member Cather said the motion is not intended to tie any project to it but, at 71st Street South, the plan was that about 200 acres total would be purchased out to finish out a triangle. The interior land is not as good for park purposes for wild or scenic land but it is perfect for a golf course. The land is near the south sewer plant and would be in a perfect location to use reclaimed sewage water on the greens. If it were not used as golf course land it could be used to round out the park. Council Member Cole Council Member Cole said that even if community associations were going to be asked to assume operating expenses of pools, there are probably some repairs the City would need to make before the pools are turned over to those associations. Suggestion is that $350,000 to $400,000 be set aside for a combination of park acquisition and enhancement and that it not be spent until Council has had an opportunity to look at some of these items in a serious manner. Chris Cherches City Manager, responding to a question regarding recent park land acquisition, said $400,000 has been budgeted every-other year in the Capital Improvement Program for land acquisition. Council Member Ferris Council Member Ferris said that if the money is available and the Council wants to purchase a piece of property, the action can be taken to do so. Mayor Knight left the Bench; Vice Mayor Kamen in the Chair. Council Member Cather Council Member Cather said the property he is speaking of has been identified and it adjoins land already purchased. Council Member Cole Council Member Cole said she wants to get through another year of maintaining the pools sufficient to allow use by the children; and during that time exploring the possibility of neighborhood associations, churches, or other groups to maintain the pools. Cosmetic repairs to the swimming pools would be under $100,000. Council Member Rogers Council Member Rogers said he is more in favor of renovating some and maintaining the present pools; however, he would like to see acquisition moneys also available. Subst. Motion -- Cole moved a substitute motion that park acquisition and enhancements totaling $300,000 be set aside from Debt Service - pay as you go. Council Member Kamen Council Member Kamen spoke against cosmetic repairs which would only postpone necessary repairs. Amendment -- Cole, with consent of the second, amended the substitute motion to $400,000 for a combination of park acquisition and enhancement to come from Debt Service. Mayor Knight present and in the Chair. Council Member Cole Council Member Cole said she meant to indicate that the funds are not just for pools and park enhancements but are also for one year operating expenses with money set aside in case it is determined the repairs are to be done. Mayor Knight Mayor Knight said he is not interested in spending large amounts of moneys for the pools until more information is received. There may be options with College Hill that are not available with other neighborhood pools. Council Member Ferris Council Member Ferris said he has a problem with a blanket amount and it is assumed that if the $400,000 is approved, nothing will be spent on pools or property acquisition without individual agenda items coming back to the Council for allocation and approval. Mayor Knight Mayor Knight said he did not think the City needs to wait until summer of 1996 to seriously consider this matter. The matter should be considered early and if there are some options about transferring ownership to neighborhood associations or other strategies, that needs to be approached early. Amendment -- Ferris moved an amendment to the Substitute motion that there would be no specific expenditure of the $400,000 without it returning as a City Council Agenda Item for the approval of the majority of the Council. Amendment carried -- carried 7 to 0. -- carried Substitute motion, as amended, carried 7 to 0. Motion -- Rogers moved that $250,000 be allocated from Debt Service Reserves for the Northeast Library new facility. Chris Cherches City Manager explained that the $435,000 CDBG funds has been utilized. Amendment -- Rogers, with consent of the second, amended the motion that the $250,000 be taken from CDBG 1996 funds instead of the Debt Service Reserves. Council Member Kamen left the Bench. -- carried Motion, as amended, carried 6 to 0. (Kamen absent) Motion -- Cather moved that the five Park Recreation positions be restored. Motion died -- died for lack of a second. Ray Trail Director of Finance explained that three positions are General Recreation Supervisors and there are some seasonal park recreation staff. The total for all five positions is $172,720 for 1996. There is also recommendation to eliminate some guard positions that are primarily available to pick up money from different centers. In lieu of the guard positions, armored car service will be used. The $159,000 is just for the three management positions. The recreation positions are $12,410. One of the supervisory positions is currently unfilled. The positions are officed at City Hall. They are management positions in a structure that report to the Recreation Director (a division level position directly under the Director of Parks). Below these positions of General Recreation Supervisors, there are other supervisory level positions. These are not the positions that staff and run any of the recreation centers in the field. They, of course, do spend time in the field but, generally speaking, their position and function is one of management based out of City Hall as opposed to management and direct supervision of recreation programs in the centers. Council Member Rogers Council Member Rogers said one of the Supervisors would probably have been responsible for all of the organized sports programs that take place at the parks. Council Member Rogers said he did not have the day-to-day in-depth knowledge to determine which positions are needed for the Recreation Director. Council Member Kamen present. Motion -- Cather moved that $159,000 for the three management positions be restored. -- died Motion died for lack of a second. Chris Cherches City Manager said the new Park and Recreation Director will probably be looking at a total reorganization in the future. The organization chart has been in existence for over 20 years and it is felt that with new technology and new people coming in, the organization could be staffed in such a way that service levels would not be impacted. After reorganization, there may be moving of some functions, utilization of some people doing things that they have not done before, and everyone is comfortable that the recreation program can continue without these positions. While the Director would like to have the money, it is not sure the money would be put back in to these same positions. Motion -- Rogers moved that $159,000 be placed back in the Park Department Budget. Motion -- failed failed 4 to 3. Ferris, Gale, Kamen, Knight - No. Mayor Knight Mayor Knight said public transportation is going through a profound change. Building the MTA garage is an acknowledgment that things are going to be the same and sustainable and there is nothing on the horizon that would lead to the conclusion that it is going to be sustainable. Now would be the worst time in the world to get a federal contribution that is significant. Motion -- Knight moved that the $1.5 million not be spent for the new MTA garage facility. Council Member Kamen Council Member Kamen said the new proposed MTA garage would be close to the Transit Center which would eliminate some of the travel costs and reduce operational costs. The cost for the new MTA Garage would be funded $1.5 million from the City and $5.8 million from the Federal Government. Michael Melaniphy MTA General Manager, responding to questions, said the cost would be $6 million to bring the present facility up to standards. There would be a cost savings of operating a garage closer to the Transit Center. Chris Cherches City Manager said one of the decisions that was made to start looking for a relocation was because of the decision to relocate the Water and Sewer Department maintenance building so Cowtown could expand. The plan was to move the MTA Garage in the complex near the fleet maintenance shop so the river area could be open to Cowtown. Michael Melaniphy MTA General Manager, continuing to respond to questions, said that currently the Garage does not have any oil/water separators so all of the run-off goes into the storm sewers. The underground storage tanks are good until 1998 but if the Garage is going to remain where it is, the replacement procedure needs to be started now. The minimal amount that could be spent on the current facility to meet mandates would exceed the $1.5 million City match for the project. The exact dollar figures are not available because additional funds could not be expended without encumbering additional FTA funds. In general conversations with the architects, it was felt the update amount would exceed $1.5 million. Mayor Knight Mayor Knight said there is no question that the federal government is withdrawing from subsidizing transit systems for cities like Wichita. There is no conceivable way to sustain the strategy the City has going now. Mayor Knight said he has not seen anything that is compelling about the MTA garage. If something has to be done about removing underground storage tanks - then do it. "I think we ought to just stop, now, on these kinds of investments and start trying to make sense out of it." Council Member Kamen Council Member Kamen said he feels that the City will keep the MTA system approximately the same size. Chris Cherches City Manager said the Council received the architectural report on the MTA garage about one year ago. The initial estimated cost was more than the budget to put all the buses under one roof so re-application was made to the Federal Government for additional moneys to fund what it would take to put the buses under cover. -- failed Motion 4 to 3. Cather, Cole, Kamen, Rogers - No. Council Member Ferris momentarily absent. Motion -- Kamen moved that $1.5 million be approved for the MTA facility from Debt Service -- carried pay-as-go. Motion carried 4 to 3. Ferris, Gale, Knight - No. Motion -- Cather moved that Fee Increases for the following: a) Domestic Violence Case Fee (increase by $1 to $4 total); b) Warrant Fee (from $10 to $15); c) Rental rates at Century II - parking, storage, and office; d) Library overdue books (to 25 cents, maximum of $4); and f) Transit fee adjustment (15 cents from $.85 to $1) be approved. Council Member Ferris Council Member Ferris said the fee increases are in the budget and when the motion to accept the budget is made, the fee increases will have been made. -- withdrawn Motion withdrawn. Motion -- withdrawn Cather moved that the Landfill Tipping Fee not be cut. Motion withdrawn. Motion -- Kamen moved that Staff be directed to work with the agencies on the fees if their -- carried budgets do not coincide with the Council budget. Motion carried 6 to 1. Ferris - No. Motion -- Rogers moved that the Landfill fee remain as it is. Motion failed 4 to 3. -- carried Ferris, Gale, Kamen, Knight - No. Motion -- Cole moved that, within the General Fund Cash Reserves, retain the $12,810 operating costs to keep the Fairmount and Lincoln Pools open in 1996. Motion -- carried carried 7 to 0. Motion -- Cole moved that $36,910 for a second Neighborhood Assistant be retained from the General Fund Cash Reserves. Subst. Motion -- Ferris moved a substitute motion that 50 percent of the $36,910 be allocated to fund the second Neighborhood Assistant position through July 1, 1996, and that if the Council wanted to maintain that position it could be done through a restructuring of the CPO and Neighborhood Allocations in the CDBG process. Mayor Knight left the Bench; Vice Mayor Kamen in the Chair. Council Member Cole Council Member Cole said a neighborhood organization, WIN, has been encouraged and is now 30 organizations city-wide. It is understood that if one of the two positions is funded with CDBG funds, then 50 percent of the activities that would be designated neighborhood must occur in low and moderate income neighborhoods. It is suggested that that is fairly limiting. Chris Cherches City Manager said this would be eligible for CDBG funds but it would be restricted to low and moderate income areas. Council Member Ferris Council Member Ferris said he did not think the Neighborhood Assistant is doing a whole lot of work in his district or Kamen's district. There is one full position that would be a General Fund position and one full position that would be a CDBG position. The General Fund position probably would be spending more time in the low and moderate areas than they would outside that area but there would be the flexibility to spend 100 percent of their time where needed. An analysis of the time would probably show an excess of time spent in low and moderate income. Council Member Rogers Council Member Rogers said nobody argues against the philosophy of the Neighborhood Initiative or says that it is not doing what it was intended to do in a reasonably exemplary manner except that it might not be doing enough. The Council is making some bad long-term decisions in terms of the kind of adjustments that need to be made in this society when the focus is always on the dollars. Mayor Knight Mayor Knight said there are now foundations that believe that they have a responsibility to try and support funding for some of the neighborhood efforts. The City of Wichita has made a significant commitment to community-based organizations which will surely continue to grow. Council Member Ferris Council Member Ferris said his recommendation is not that the position be cut but, rather, that the funding source be cut from the general fund and added to the CDBG fund which is dedicated for those kinds of activities. -- carried Substitute motion carried 5 to 2. Cather, Rogers - No. Motion -- Cole moved that $11,330 be returned to the budget for Big Brothers/Big Sisters; to return to YES $12,980; and to take from the Reserves $ $12,000 for Pueblo. Subst. Motion -- Knight moved a substitute motion that $11,330 be restored to Big Brothers/Big -- withdrawn Sisters and $19,980 to Youth Development Services. Subst. Motion withdrawn. Subst. Motion -- Ferris moved a substitute motion that $24,310 be taken from the appropriated Reserves, applying $11,330 to Big Brothers/Big Sisters and $12,980 to YES. -- carried Substitute motion carried 7 to 0. Chris Cherches City Manager stated that the City Council took action on July 25, 1995, on the repairs for the Lincoln Street Dam. At that time, the proposal was that the Council would name the funding source for the repairs during the Budget consideration. The amount of money for the permanent repairs is $487,580. Several years ago some money was spent out of the operating budget for repairs (close to $50,000) but no major dollars have been spent over the last 10 years for repairs. Mayor Knight Mayor Knight said the repair work ought to be bonded. Motion -- Ferris moved that the $487,580 be taken from the Debt Service pay-as-you-go -- carried program. Motion carried 6 to 1. Knight - No. Motion -- Kamen moved that the changes for the Fire Department be approved as follows: 1) eliminate two Fire Lieutenant positions; 2) promote one Lieutenant to Captain; 3) provide for a 40-hour exempt position under the FLSA providing for week-end and evening call-outs when needed without overtime compensation; 4) eliminate Fire Investigator I position; and 5) reinstate Chief Fire Investigator and the Medical and Rescue Coordinator. Council Member Rogers Council Member Rogers said he does not feel qualified to talk about positions. This is the Chief's recommendation and the City Council ought not to be into the positions at all. Council Member Ferris Council Member Ferris explained that when the Council approves the Budget, the Council is approving the positions. -- carried Motion carried 6 to 1. Rogers - No. Council Member Ferris Council Member Ferris said a different strategy on approaching salaries for department heads. The Manager has been given very little discretion and has been held to a 2 percent increase. With the performance the Council demands and expects, perhaps the Manager should be given the latitude of up to the average increase for a City employee (can be calculated on an annual basis). The Manager then would be able to evaluate department heads and senior management positions based on that, up to whatever the average increase for a City employee was, so that no department head would ever make more than the average increase and might make less - but it would be based on performance, experience, and other evaluation items. Council Member Cole Council Member Cole, regarding the Maple/Sycamore Intersection, said it seems ridiculous to wait until ground breaking for the Ice Rink to decide to do something about the intersection improvements. Mayor Knight Mayor Knight said he had asked the City Manager to have Staff, when the retreat on the Capital Improvement Program is held, provide a priority listing of projects in the City. Council Member Ferris Council Member Ferris suggested the project be brought back to the Council on the Agenda for Council decision on how the project will be funded. Chris Cherches City Manager, with regard to Williamsburg Park, said that when the Council approved the item in 1993, the motion was that the delinquent taxes for that year be taken from the reserve and that all future years be programmed within the Park Budget. For some reason the delinquent tax was not taken care of and now must be taken care of. Motion -- Ferris moved that the Williamsburg Park delinquent tax be taken from the -- carried Reserves. Motion carried 7 to 0. Council Member Ferris Council Member Ferris, regarding the Public Safety budget item, said his motion was for 1995 and 1996. The intent was to authorize expenditures in 1995. Motion -- Ferris moved that the 1996 Budget be approved and the budget Ordinance be placed on second reading and adopted; the amendments to the 1995 budget be approved; the joint agreements with Sedgwick County for the Wichita-Sedgwick County Flood Control Works, Wichita-Sedgwick County Department of Community Health, and the Wichita-Sedgwick County Metropolitan Planning Department be approved and the Mayor be authorized to sign; and the use of local funds derived from property within the corporate limits for the Wichita State University Board of Trustees be -- carried approved. Motion carried 7 to 0. ORDINANCE NO. 42-828 An Ordinance making and fixing the general tax levy for the city of Wichita, Kansas, for the year beginning January 1, 1996, and ending December 31, 1996, and relating thereto, read for the second time. Ferris moved that the Ordinance be placed upon its passage and adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. (B) 1996 BUDGET - TAX INCREMENT FINANCING DISTRICT #1 (GILBERT AND MOSLEY). Chris Cherches City Manager reviewed the Item. Agenda Report No. 95-611 A. The City Council has received the Tax Increment Financing District #1 budget. The Tax Increment Financing District #1 was established in August, 1991, to fund the clean-up of ground water contamination in the Gilbert/Mosley district. Clean-up expenditures not attributable, nor billable, to potentially responsible parties are covered by the tax increment. The City has entered in a legal agreement with 1 responsible party, and 39 potentially responsible parties have been identified. The 1996 proposed budget includes total expenditures of $5,731,240 for capital outlay, operational costs, debt service payments and administrative costs. Contributions from potentially responsible parties are budgeted at $3,644,607, and bond proceeds, at $156,500. The tax district increment is estimated at $472,000. Other sources are from interest earnings ($93,212) and fund balance ($1,364,921). The proposed tax increment for the 1996 budget cannot be increased but the amount can be decreased by City Council action. Publication requirements of State law for the final public hearing have been met. Following final Council action on the proposed budget, proper certification will be made of the increment 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 1996 budget of $5,731,240 be approved; and the budget Ordinance be placed on second reading and adopted. -- carried Motion carried 7 to 0. ORDINANCE NO. 42-829 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, 1996, and ending December 31, 1996, read for the second time. Knight moved that the Ordinance be placed upon its passage and adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. ADDENDUM ITEM IRB - MACARTHUR PARK REQUEST FOR LETTER OF INTENT FOR INDUSTRIAL REVENUE BONDS - MACARTHUR PARK APARTMENTS. (District III) Chris Cherches City Manager reviewed the Item. Agenda Report No. 95-673. Midland Properties, Inc., has requested issuance of a Letter of Intent for City of Wichita Industrial Revenue Bonds in an amount not to exceed $4.5 million. Bond sale proceeds will be used for the purchase of and the extensive rehabilitation of the MacArthur Park Apartments, located at 4244 South Hydraulic. A property tax abatement has not been requested. MacArthur Park Apartments is a 216 unit garden apartment project built during the mid-1960s by a church sponsored group. The initial objective was to provide quality, moderately priced housing for residents of southeast Wichita. On April 22, 1986, MacArthur Park Apartments was acquired by MacArthur Park, Inc., a Kansas Corporation owned by three local businessmen. Bond sale proceeds will be used to acquire and rehabilitate the 216 units. The rehabilitation will consist of the replacement of most appliances (including the addition of dishwashers) and the carpeting as well as most kitchen cabinets. The renovation will occur over the first 12 months and stabilization of project income should occur within the first 24 months. The sources and uses of funding for the project are summarized in the following table: Sources of Funds IRB Proceeds $4,500,000 Corporate Funds 300,000 Total Sources $4,800,000 Uses of Funds Acquisition $2,600,000 Rehab Costs 1,450,000 Bond Reserve 365,000 Issuance Costs 160,000 Working Capital 225,000 Total Uses $4,800,000 The rehabilitation of this apartment complex will enable the project to house approximately 400-450 wage earning individuals. The use of tax-exempt IRBs will allow a savings which can be passed on to the tenants through competitive rents. In order to qualify for tax-exempt financing at least 20% of the units will be reserved for lease by families or individuals whose annual income is not more than 50% of the median income for the Wichita area. Depending on family size, tenants in these units will have combined gross incomes that average less than $20,000 per year. The facility is expected to generate $28,000 each year in ad valorem taxes. Midland Properties, Inc., will be required to provide an acceptable EEO/AA Plan and Water Conservation Plan to the City prior to issuance of bonds. Midland Properties, Inc., agrees to pay all costs of issuing the bonds as well as the City's annual administrative fee for the term of the bonds. Midland Properties, Inc., is not requesting abatement of ad valorem taxes on any part of this project. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Cather moved that the issuance of a Letter of Intent to Midland Properties, Inc. for Industrial Revenue Bonds in an amount not to exceed $4.5 million, with no tax abatement being granted, be approved and the Mayor be authorized to sign, subject to the following conditions: 1. Negotiation of a Lease Agreement, Trust Indenture 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 Ascetic 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 financial statements to the City. 12. Cooperation with any annual compliance audit procedure the City may adopt to monitor compliance with conditions, including any annual reports required of the applicant and any inspections of the applicant's premises or interviews with the applicant's staff. 13. Commitment to achieve and maintain its proposed employment goals, and to meet its Equal Employment Opportunity/Affirmative Action goals, during the term of the bonds. 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. Board of Appeals of Air Conditioning, Refrigeration, Warm Air Heating and Boilers (9 vacancies - Council at large) Board of Appeals of Plumbers and Gas Fitters (4 vacancies - Council at large) Board of Code Standards and Appeals (4 vacancies - Cather, Gale, 2-City Manager) Board of Electrical Appeals (5 vacancies - Council at large) Board of Park Commissioners (1 vacancy - Kamen) Board of Zoning Appeals (1 vacancy - Cole) Civil Rights and Services Board (1 vacancy - Cole) Commission on the Status of People with Disabilities (6 vacancies - Cole, Kamen, Ferris, Gale, 2-Rogers) Group Life Insurance Board of Trustees (1 vacancy - Council at large) Metropolitan Area Planning Commission (1 vacancy - Rogers) Traffic Commission (1 vacancy - Gale) Wichita Athletic Commission (2 vacancies - Council at large) Wichita Commission on the Status of Women (2 vacancies - Knight, Kamen) Wichita Public Building Commission (3 vacancies - Gale, Kamen, Knight) Wichita-Sedgwick County Alcohol and Drug Abuse Advisory Board (2 vacancies - Council at large) Wichita-Sedgwick County Solid Waste Management Committee (1 vacancy - City/County Chair - Knight) Appointments will be for terms expiring June 30, 1997. Council Member Kamen Council Member Kamen asked for recommendations for appointment to the Commission on the Status of Women. Motion -- Cather appointed Melinda Johanningsmeier to the Wichita-Sedgwick County Alcohol and Drug Abuse Advisory Board and moved that the appointment be approved. Motion -- carried carried 7 to 0. Motion -- Gale appointed Michael Williams to the Traffic Commission and moved that the -- carried appointment be approved. Motion carried 7 to 0. APPOINTMENT TO HUMAN SERVICES BOARD. Oletha Goudeau, 1213 Williamsburg #A, was selected as a low-income member of the Human Services Board (Northeast district), for a term expiring June 30, 1997. Motion -- Rogers appointed Oletha Goudeau and moved that the appointment be approved. -- carried Motion carried 7 to 0. PROCLAMATION PROCLAMATION. -- Constitution Week Motion -- carried Knight moved that the proclamation be authorized. Motion carried 7 to 0. CONSENT AGENDA Knight moved that the Consent Agenda, except Items 24 and 25, 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 7, 1995. At 10:00 a.m., Friday, August 4, 1995, pursuant to advertisements published, bids were received, publicly opened, read aloud and tabulated for the Board of Bids and Contracts: (Ref: Bid analysis report attached to Board of Bids Minutes 8/7/95) PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION: SEWERS, PAVING AND WATER MAINS AS PER SPECIFICATIONS Storm Water Sewer #436 to serve Lot 2, Block 1, Comatara Power Center Addition (north of K-96, west of Rock Road). (468-82226/750687/485) Does not affect existing traffic. (Council approval date 06-06-95) (District II) WB Carter Construction - $176,626.00 Tracy from the north line of St. Louis to the south line of Central in Park Wilde Addition (south of Central, west of West Street). (472-82537/762898/490392) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 11-29-94) (District IV) Kansas Paving - $116,158.30 Decel Lane along the north side of 21st Street North to serve Lots 4, 5, & 6, Block 6 including major entrance to Lot 4, Sterling Farms Addition (north on 21st Street, west of Tyler). (472-81891/762583/490361) Traffic to be maintained through construction. (Council approval date 06-27- 95) (District V) AND 21st Street Left Turn Lane from the west line of Lot 1 to the west line of Lot 5, Block 6 to serve Sterling Farms Addition (on 21st Street North, west of Tyler). (472- 81892/762591/490362) Traffic to be maintained through construction. (Council approval date 02-14-89) (District V) Ritchie Paving - $103,733.50 (81891) $ 40,039.00 (81892) $143,772.50 (Aggregate Total) South Lakes Park excavate approximately a 10- acre pond, place fill material, and softball field area at the South Lakes Sports Complex (east of Meridian, between 47th and 55th Streets South). Does not affect existing traffic. (Index Code n/a) (Council approval date 05-04-93) (District IV) Bergkamp Construction - $247,860.00 (Engineer's Construction Estimate) 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. PUBLIC WORKS DEPARTMENT/FLEET & BUILDINGS DIVISION: FURNISH LABOR, MATERIALS, AND EQUIPMENT TO PROVIDE CARPET REPLACEMENT FOR CENTURY II CONVENTION CENTER, CONCERT HALL AS PER SPECIFICATIONS Carpet Value - $132,224.00 (Base Bid) PUBLIC WORKS DEPARTMENT/FLEET & BUILDINGS DIVISION: OMNISPHERE RENOVATIONS AS PER SPECIFICATIONS Hahner, Foreman & Harness - $112,550.00 (Base Bid) CITY MANAGER/CENTURY II: ASSISTED LISTENING DEVICESAS PER SPECIFICATIONS McClelland Sound, Inc. - $22,408.20 HUMAN SERVICES DEPARTMENT/HOUSING DIVISION: H.V.A.C. EQUIPMENT AS PER SPECIFICATIONS Baker Wholesale - Item 1 - $384.00 per each - Item 2 - $409.00 per each - Item 3 - $450.00 per each - Item 4 - $503.00 per each - Item 5 - $560.00 per each - Item 6 - $665.00 per each - Item 7 - $ 90.00 per each - Item 8 - $105.00 per each - Item 9 - $105.00 per each - Item 10 - $132.00 per each - Item 11 - $132.00 per each - Item 12 - $159.00 per each - Item 13 - $ 77.00 per each - Item 14 - $ 94.00 per each - Item 15 - $ 94.00 per each - Item 16 - $116.00 per each - Item 17 - $116.00 per each - Item 18 - $140.00 per each FINANCE DEPARTMENT/DATA CENTER: COMPUTER EQUIPMENTAS PER SPECIFICATIONS Pioneer-Standard - Total Net Bid - $179,501.63 Option 1 - No charge Knight moved that the contracts 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. Special Event Dave Burk Marketplace Properties835 E. First Renewal 1995 (Consumption on Premises) Kevin F. Raven Taco Tico* 3131 N. Rock Rd. Kevin F. Raven Taco Tico* 8001 E. Central Kevin F. Raven Taco Tico* 1230 S. Rock Rd. Kevin F. Raven Taco Tico* 603 E. 47th St. (Consumption off Premises) John J. Leeker Farmers Market, Inc.2901 N. Broadway David M. Arntzen Osco Drug Store #21354035 E. Harry St. David M. Arntzen Osco Drug Store #21333333 E. Central David M. Arntzen Osco Drug Store #21322501 S. Seneca Ralph McGuire Dillon Store No. 662244 N. Rock Rd. Ct. Kevin J. Temple Phillips 66 4414 W. Maple New Operator/Renewal 1995 (Consumption on Premises) Robert E. Bilyeu Bears Den** ***1007 E. Pawnee New Establishment 1995 (Consumption on Premises) Jorge V. Linares Casa Linares* 7338 W. Central *General Retailer--beer sales derive less than 50% of gross revenues. **Located within 150 feet of a residential district. ***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. Lateral 1, Main 16, Southwest Interceptor Sewer to serve Lake Ridge Second Addition (north of 21st Street, east of Ridge Road). (468-82335/742346/480326) Does not affect existing traffic. (Council approval date 08-15-95) (District V) b. Lateral 2, Main 17, Southwest Interceptor Sewer to serve part of Forest Lakes Addition (north of 29th, west of Ridge). (468-82300/742395/480331) Does not affect existing traffic. (Council approval date 07-25-95) (District V) c. Lateral 3, Main 17, Southwest Interceptor Sewer to serve part of Forest Lakes Addition (north of 29th, west of Ridge). (468-82301/742403/480332) Does not affect existing traffic. (Council approval date 07-25-95) (District V) d. Water Distribution System to serve Forest Lakes Addition (north of 29th, west of Ridge). (448- 88699/732818/470359) Does not affect existing traffic. (Council approval date 07-25-95) (District V) e. Water Distribution System to serve Forest Lakes Addition (north of 29th, west of Ridge). (448- 88700/732826/470360) Does not affect existing traffic. (Council approval date 04-06-95) (District V) 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., August 18, 1995. Motion carried 7 to 0. f. 1995-1996 CDBG Sidewalk Reconstruction at various locations. (617514/814002) Traffic to be maintained through construction. (Council approval date 03-14-95) (District all) g. Accel/Decel Lane on the west side of Broadway from the north line of Lot 1, Block 1 to the south line of Lot 1, Block 1; and on 47th Street South from the east line of Lot 1, Block 1 to the major entrance; and sidewalk constructed on the west side of Broadway and the north side of 47th Street South, Dillon Eleventh Addition (Broadway and 47th Street South). (472-82539/763029/490405) Traffic to be maintained through construction. (Council approval date 12-13- 94) (District IV) h. Median in Broadway from a point 200 feet more or less north of the south line of Lot 1, to a point 420 feet more or less north of the south line of Lot 1, Dillon Eleventh Addition (north of 47th Street south, west of Broadway). (472-82540/763037/490406) Traffic to be maintained through construction. (Council approval date 12-13-94) (District IV) i. Lateral 55, Main 4, Southwest Interceptor Sewer to serve an unplatted tract and Westwood Addition (south of Maple, west of the Big Ditch). (468-82431/742163/480308) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 11-29-94) (District V) j. 1995 Sanitary Sewer Rehabilitation Program, Phase III (north of Douglas, east of Broadway). (Index code not available) Traffic to be maintained through construction. (Council approval date ) (District all) k. Water Distribution System to serve Buckhead Addition (north of Central, west of 119th Street West). (448-88925/732792/470357) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 07-11-95) (District V) l. Water Main Improvements at Ridge Road from 21st Street North to Garden Ridge (east of Garden Ridge, north of 21st Street). (448-88870/633057/544370) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 07-18-95) (District V) 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., August 25, 1995. Motion carried 7 to 0. PRELIMINARY ESTIMATES PRELIMINARY ESTIMATES. a. Storm Water Sewer #436 to serve Lot 2, Block 1, Comatara Power Center Addition (north of K-96, west of Rock Road) - $320,000.00. (468-82226/750687/485104) Does not affect existing traffic. (Council approval date 06-06-95) (District II) b. Tracy from the north line of St. Louis to the south line of Central in Park Wilde Addition (south of Central, west of West Street) - $169,400.12. (472- 82537/762898/490392) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 11-29-94) (District IV) c. Decel Lane along the north side of 21st Street North to serve Lots 4, 5, & 6, Block 6 including major entrance to Lot 4, Sterling Farms Addition (north on 21st Street, west of Tyler) - $130,000.00. (472-81891/762583/490361) Traffic to be maintained through construction. (Council approval date 06-27-95) (District V) d. 21st Street Left Turn Lane from the west line of Lot 1 to the west line of Lot 5, Block 6 to serve Sterling Farms Addition (on 21st Street North, west of Tyler) - $57,313.00. (472-81892/762591/490362) Traffic to be maintained through construction. (Council approval date 02-14-89) (District V) e. South Lakes Park excavate approximately a 10-acre pond, place fill material in softball field area at the South Lakes Sports Complex (east of Meridian, between 47th and 55th Streets South) - $250,000.00. Does not affect existing traffic. (No project numbers available) (Council approval date 05-04-93) (District IV) Motion -- Knight moved that the preliminary estimates be approved and filed. Motion -- carried carried 7 to 0. PETITIONS PETITIONS (100%). a. Sanitary Sewer to serve part of Lake Ridge Second Addition (north of 21st, east of Ridge). (District V) Agenda Report No. 95-660. On June 27, 1995, the City Council approved a sanitary sewer petition to serve Lake Ridge 2nd Addition, a new single family neighborhood. An attempt to award a contract within the budget set by the petition was not successful. A new petition with an increased budget is being submitted. The signature on the new petition represents 100% of the improvement district. The original project budget was $228,000. The new petition contains a $325,000 budget. The funding source is Special Assessments. Motion -- Knight moved that the Petition be approved and the Resolution be adopted. -- carried Motion carried 7 to 0. RESOLUTION NO. R-95- 380 Resolution of findings of advisability and Resolution authorizing construction of Lateral 1, Main 16, SWI (north of 21st, east of Ridge) Project No. 468-82335 in the City of Wichita, Kansas, pursuant to findings of advisability made by the Governing Body of the City of Wichita, Kansas, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. b. Sanitary Sewer to serve part of Sunridge Second Addition (south of 21st, east of 119th Street West). (District V) Agenda Report No. 95-661. The signature on the petitions represents 100% of the improvement districts. The purpose of the new petitions is to rephase the sanitary sewer plan to accommodate changes in the home building rate. The projects total $64,000. The funding source is Special Assessments. Motion -- Knight moved that the Petition be approved and the Resolution be adopted. -- carried Motion carried 7 to 0. RESOLUTION NO. R-95- 381 Resolution of findings of advisability and Resolution authorizing construction of Lateral 33, Main 12, Southwest Interceptor Sewer (south of 21st, east of 119th Street West) Project No. 468-82158 in the City of Wichita, Kansas, pursuant to findings of advisability made by the Governing Body of the City of Wichita, Kansas, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. RESOLUTION NO. R-95- 382 Resolution of findings of advisability and Resolution authorizing construction of Lateral 37, Main 12, Southwest Interceptor Sewer (south of 21st, east of 119th Street West) Project No. 468-82487 in the City of Wichita, Kansas, pursuant to findings of advisability made by the Governing Body of the City of Wichita, Kansas, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. BOARDS MINUTES MINUTES OF ADVISORY BOARDS. CPO Southwest Council 4, 7/27/95 CPO Northwest Council 5, 8/3/95, 7/26/95 Wichita Employees Retirement System, 7/19/95 Wichita Police & Fire Retirement System, 7/26/95 Wichita/Sedgwick Board of Health Sub- committee, 7/26/95 Wichita/Sedgwick Metropolitan Planning Commission, 6/29/95, 6/15/95 Motion -- carried Knight moved that the Minutes be received and filed. Motion carried 7 to 0. EASEMENTS/DEDICATIONS EASEMENTS AND DEDICATIONS. a. Easement dated June 29, 1995, from Quentin Moeder for a tract in Lexington Addition (Maybelle Paving, Index #772625) (no cost to City). b. Easement dated July 10, 1995, from Jay Russell for tracts in Meadow Oaks Addition (Meadow Oaks Paving, Index #762997) (no cost to City). c. Easement dated July 14, 1995, from Reginald Boothe for a tract in Reflection Ridge Commercial Second (Private Water #335PPW, Index #607853) (no cost to City). Has been filed and recorded. d. Easements dated May 25, 1995, and June 8, 1995, from Frank Remar and Michael Giobbe for tracts in Dillon Eighth Addition (Harry and Edgemoor, Index #706093) (no cost to City). e. Easements dated December 14, 1994, and December 16, 1994, from Walter Palmer and Bill Johnson for tracts in the Northeast ¼, Section 33, Township 26 South, Range 1 East (Lateral 128, Main 4, Sanitary Sewer #23, Index #742189) (no cost to City). Motion -- Knight moved that the documents be received and filed and the City Clerk be -- carried instructed to record with the Register of Deeds. Motion carried 7 to 0. STREET CLOSURES/USES CONSIDERATION OF STREET CLOSURES/USES. Agenda Report. Utility Contractors, Inc. is requesting a five-hour (1:00 a.m. to 6:00 a.m.) closure of Oliver approximately one-quarter mile south of Pawnee. The contractor is presently accomplishing hydrodemolition and bridge deck surface replacement on Harry Street over I-135 and on Oliver between Pawnee and George Washington Boulevard. Due to the restricted work area at the Oliver location and the need to use the adjacent traffic lane for concrete delivery and finishing operations, the contractor is requesting a five-hour total closure at the bridge area. The closure is requested from 1:00 a.m. until 6:00 a.m. on Thursday, August 17, 1995. If it is raining or the temperature is too warm to allow surface placement on Thursday, August 17, the work will be attempted between 1:00 a.m. and 6:00 a.m. on Friday, August 18, 1995. George Washington Boulevard has been reconstructed between Pawnee and Oliver and will serve as a detour during the closure. The contractor is responsible for construction barricades and detour signing. The Boeing Company has been notified and will inform their employees. Motion -- carried Knight moved that the closure be approved. Motion carried 7 to 0. Agenda Report. The Atchison, Topeka, and Santa Fe Railway is requesting a three-day closure (Monday, August 21 through Wednesday, August 23) of 21st Street, east of Broadway. A section of the existing rubber crossing material in one of the three tracks at the crossing had failed and has been removed. During the closure, the railroad will reconstruct the damaged crossing and install the new concrete crossing material. This project will be accomplished at no cost to the City. During the closure, 21st Street traffic will be detoured using Topeka, 17th Street and Broadway. The railroad is responsible for construction barricades and detour signing during the project. There is no cost to the City. Motion -- carried Knight moved that the street closure be approved. Motion carried 7 to 0. Agenda Report No. 95-662. In accordance with Special Event Procedures, event sponsors are to notify adjacent property owners and coordinate arrangements with Staff, subject to final approval by City Council. The following Special Event requests have been submitted: 1. Event: Wichita Summernationals Date/time of Closure/Use: September 15-17, 1995 Location: McLean Boulevard and Arkansas River (Maple to Lincoln) Street Closures: Lewis/Maple Street Bridge; Lincoln Street Bridge; McLean Boulevard Lincoln to Maple. 2. Event: Wichita Scoops Festival Date/time of Closure/Use: Saturday, August 19, 1995 Location: Old Town Street Closures: First Street, Rock Island to Mosley 3. Event: Oz Fest Date/time of Closure/Use: August 25-26, 1995 Location: West Bank Stage Street Closures: McLean Boulevard, Second to Douglas; Sycamore, Second Street to Douglas; First, Sycamore to McLean Boulevard. Inasmuch as possible, event sponsors are responsible for all costs associated with special events. Motion -- Knight moved that the requests be approved subject to: (1) Event Sponsor notifying every property and/or business adjoining any portion of the streets to be used for the event; (2) coordination of event arrangements with City Staff; (3) hiring off-duty public safety officers as required by the Police Department; (4) obtaining barricades to close the streets in accordance with requirements of Police, Fire and Public Works Departments; (5) submitting a certificate of insurance evidencing general liability insurance which covers the event and its related activities, including the naming of the City as an additional insured with respect to the event's use of the closed City streets. Motion carried -- carried 7 to 0. EQUIPMENT PURCHASE STORM WATER MAINTENANCE EQUIPMENT PURCHASES. Agenda Report No. 95-663. The Storm Water Utility became active on March 1, 1993. A primary element of the Utility is the implementation of an enhanced maintenance program to better repair, clean and maintain the existing storm water facilities. In order to attain the expected levels of service associated with maintenance of the drainage systems, allow free flow through the drainage systems to prevent flooding, and comply with performance levels of the NPDES permit, equipment is needed to perform maintenance operations. A minimal amount of equipment was transferred to the Storm Water Utility from the Water and Sewer Department, Sewer Maintenance Section upon implementation of the Utility to allow the crews to clean and repair catch basins, culverts, storm sewer lines, channels, ditches and other drainage facilities. The equipment was in marginal condition when transferred and is often down for repairs. To provide Storm Water Utility crews with the necessary equipment to accomplish the maintenance tasks associated with the drainage systems, the 1995 Revised Budget includes the purchases of the following pieces of equipment, as well as radios to communicate between staff members at different locations and improve efficiency of operations: Water Truck with Stainless Steel Tank Cleaner Vaccon Pick-Up Supercab 4x4 (2) Dozer (Small D-6) Track Loader Tandem Axle Dump Truck (2) Mountable Arrow Boards (2) The 1995 Revised Storm Water Utility Operating Budget provides for $657,154 for funding of the purchases of the above stated items. Motion -- carried Knight moved that the purchases be approved. Motion carried 7 to 0. LINCOLN STREET DAM LINCOLN STREET DAM EMERGENCY REPAIRS. (District VI) Agenda Report No. 95-664. On July 25, 1995, the City Council authorized the Mayor to sign an agreement for engineering services for design of a new permanent system at the Lincoln Street Dam and approved funding of the engineering and estimated construction costs associated with the permanent system. To assure public safety, staff had to address the emergency repairs to the dam immediately. The emergency repairs are only a temporary system. Mid-Kansas Engineering Consultants, Inc. (MKEC) furnished the emergency professional services needed to set-up the temporary system. City staff purchased all necessary parts and materials as per the consultant and installed the system which will function only with constant supervision and daily maintenance until the permanent system can be constructed. Since all the above stated services and materials were provided and purchased under emergency circumstances, the funding approval is now needed for services and materials rendered. The costs are not currently budgeted for the emergency repairs made to the dam in June. However, those costs were submitted to the budget office on July 5, 1995 in response to their request for one-time maintenance projects which could be funded with additional 1995 funds. The actual costs for the emergency professional services, parts and materials totaled $15,000. The Finance office suggests these costs should be funded through the General Fund appropriated reserve for one-time expenses. Motion -- Knight moved that the funding source as recommended be approved. -- carried Motion carried 7 to 0. CDBG CONTRACT CDBG CONTRACT - CATHOLIC SOCIAL SERVICE, INC. - HARBOR HOUSE. Agenda Report No. 95-665. On March 14, 1995, the City Council authorized solicitation of proposals for shelter services, counseling and support services for female victims of domestic violence and their children. On June 6, 1995, the Council selected Catholic Social Service, Inc. and the YWCA to provide such services through separate agreements with the City. Catholic Social Service will provide services at Harbor House with the CDBG contract providing a portion of funding for staff. The contract amount is $48,800. Motion -- Knight moved that the Contract be approved and the Mayor be authorized to -- carried execute. Motion carried 7 to 0. USGS CONTRACT COOPERATIVE AGREEMENT WITH U.S.G.S. TO MEASURE GROUNDWATER LEVELS IN THE EQUUS BEDS WELLFIELD AND STREAMFLOWS IN THE LITTLE ARKANSAS RIVER. Agenda Report No. 95-666. This agreement between the City of Wichita and the United States Dept. of Interior, Geological Survey (U.S.G.S.) is a cooperative agreement for measuring the groundwater levels in the City of Wichita's Wellfield and for operating and maintaining three streamflow gages on the Little Arkansas River. The City will measure water levels in about 268 wells in the Wellfield on a monthly or quarterly basis, and the U.S.G.S. will store the information and publish maps of the groundwater levels. The streamflow gages were installed in 1994 as part of the Water Supply Plan. The costs of these projects are split 50-50 between the City and the U.S.G.S.. In the past these projects were covered under two agreements with the U.S.G.S., but they have now been combined into one agreement. Accurate groundwater information is the most important data for the management of our groundwater resources, and is needed for any research of groundwater related problems. This water level project is a continuing program of collection, analysis, and storage of data required to analyze the groundwater resources of the Equus Beds, where Wichita's water supply wells are located. The Water Supply Plan includes efforts to recharge the Equus Beds using water from the Little Arkansas River, so monitoring the groundwater levels in the wellfield has become even more important. This water level measurement project has been in operation continuously for many decades as a cooperative program between the Wichita Water and Sewer Department and the U.S.G.S.. The project is designed to: 1) Measure the water levels in the network of wells in the Wellfield. 2) Store the data into a computer file. 3) Provide the City of Wichita with quarterly water level change maps. 4) Publish the data. 5) Maintain a permanent computer file of this data locally. The gages on the Little Arkansas River provide extremely important information about the flow in the river. With the aid of that information the City will be able to determine if water from the river is available to recharge the wellfield. Staff has identified three alternatives: 1. Approve the Agreement and continue to use Federal funds to assist in these projects. 2. Refuse the Federal funds, but continue to do the projects using only City funds. 3. Cease all activities associated with this project. This would result in the loss of data that is vital to the operation of the wellfield and data that is critical to successful completion of the Water Supply Plan. This alternative is not recommended. The City's share of the cost of this program is $20,300, which is 50% of the total cost of the program. The other 50% is funded through the U.S.G.S.. The City's share of the costs have been budgeted in the Water Production and Pumping Division's budget. This will cover the contract period from October 1, 1995 to September 30, 1996. Motion -- Knight moved that the Contract be approved and the Mayor be authorized to -- carried execute. Motion carried 7 to 0. INDEMNIFICATION AGMT. INDEMNIFICATION AGREEMENT FOR HOME OIL COMPANY. (District VI) Agenda Report No. 95-667. In February of 1982, the City Council approved the sale of the north portion of Bridgeport III to Curtis Homes, a Joint Venture, to construct a facility to manufacture prefabricated homes. The Curtis Homes facility was purchased and constructed under a $1.0 million IRB that subsequently failed and the property and facility were acquired by William Nath of Home Oil Company in December 1986. Home Oil, who manufactures, markets, and ships petroleum based products nationwide, has occupied the 373,266 sq. ft. tract and over 10,000 sq. ft. office/warehouse facility at 3511 N. Ohio since they purchased it. Home Oil Company is concerned that since the facility is located in the EPA Superfund 29th and Mead site they have been unable to use this property and facility for collateral for expanding the facility and is requesting the City indemnify them. Home Oil has also experienced complications from prospective customers when HOC has proposed to package and distribute the customers chemicals due to concerns about the liability of being associated with a Superfund site and with KDHE. They have purchased three other properties within Bridgeport III and the City has indemnified them against the soil and underground water contamination that exists in this area prior to their respective purchases. They have found that without an indemnification agreement banks will not provide loans for the property and improvements. At the time of sale to HOC it was not known that there was ground water contamination near this facility nor that it would be in an EPA Superfund site. Since 1986 to this date the City has indemnified the other three purchases by the Nath's of Bridgeport III property of approximately 710,750 sq. ft. Based upon recent analytical information taken by the Environmental Health Division from deep and shallow ground water testing at this site, there were no volatile organic detected in the samples that indicate the presence of ground water contamination on this site. Environmental Health found no migratory underground water contamination under the subject site nor that Home Oil is a source of the ground water contamination. It is anticipated the City will be taking responsibility for this area just as was done in the Gilbert/Mosley underground contaminated area. At that time the City would indemnify HOC since there is no indication when the original tests were made in 1989 that this facility may have been a participant in the pollution of the soil or underground water. The cost of the tests are at no expense to the City. The City has the legal authority but not the legal obligation to provide an environmental indemnification agreement; it is a policy decision whether the indemnification is given. This agreement provides indemnification similar to that provided for other City owned properties sold by the City, the difference being that this indemnification is provided several years after the sale. The City is not assuming any liability for activity on the property subsequent to sale. Motion -- Knight moved that Indemnifying Home Oil Company from any contamination that was present prior to their ownership be and the Indemnification Agreement be approved -- carried and the Mayor be authorized to sign the Agreement. Motion carried 7 to 0. PROPERTY ACQUISITION OLIVER STREET WIDENING PROJECT PROPERTY ACQUISITION BY EMINENT DOMAIN. Agenda Report No. 95-668. The City's Public Works Department has identified the need to acquire a 20 ft. portion of right-of-way from front of 3240 N. Oliver for the Oliver Street Project. This property is needed in connection with the widening and paving of north Oliver Street from 25th to 35th Streets north. This property is owned by Don E. & Phyllis A. Malzahn. The acquisition of this property will not require the removal or relocation of any homes or businesses and will not interfere with any of the residents or tenant's that occupy this tract. City staff has attempted to negotiate a purchase of the identified property but has been unable to reach agreement with the owner. This will require the taking of approximately 4,915 sq. ft. of frontage from the approximate 162,195 sq. ft. property. The City has offered $7,392, or approximately $1.50 per sq. ft. for the land. The Malzahn's are wanting $30,000 or approximately $6.00 per sq. ft. for this vacant residential property. The Malzahn's have also requested as part of the purchase agreement the City correct or assist in the correction of a drainage problem that they claim was created when the creek that surrounds their property was realigned. City staff and the project Consultant have reviewed the drainage problem and find that the existing Oliver Street and the proposed Oliver Street paving project do not impact nor have any bearing on the Malzahn's drainage problem. The drainage difficulties are outside the scope of this federal/state project and project funds can not be utilized to correct this drainage problem. The City is empowered to acquire this property under its eminent domain authority. Funds have been budgeted in the 1995/96 Capital Improvement Program in the amount of $100,000 for the Oliver Street Land Acquisition Project No. is MS-467. This is the second of three acquisitions for this project. Expenditures to date total $2,087.00 leaving $97,913.00 for remaining acquisitions. The City is authorized by law to commence eminent domain proceedings to acquire this property. Motion -- Knight moved that the ordinance providing for the acquisition by eminent domain of certain property within the North Oliver Street Project area and direct the City Attorney to file the appropriate proceedings in the District Court to -- carried accomplish such acquisition be placed on first reading. Motion carried 7 to 0. ORDINANCE An Ordinance providing for the acquisition by eminent domain of certain private property, easements, and right-of-way therein, for the purpose of street improvements and to be known as the Oliver Street Pavement Widening Project in the City of Wichita, Sedgwick County, Kansas; designating the lands required for such purposes and establishing a benefit district and directing the City Attorney to file a petition in the District Court of Sedgwick County, Kansas, for acquisition of the lands and easements therein taken and providing for payment of the cost thereof, introduced and under the rules laid over. ITEM NO. 24 PROPERTY DISPOSITION SALE OF SURPLUS PROPERTY LOCATED ADJACENT TO 2760 SOUTH ROOSEVELT. Agenda Report No. 95-669. The City of Wichita has received an offer of $5,000 from Bob Allen representing Brookside Methodist Church on the property located adjacent to 2760 South Roosevelt in Plainview. The United States Government conveyed a number of platted reserves in the Plainview area to the City in 1952. Some of these reserves are being utilized as drainage easements. The selling of this portion of the property will not have any effect on drainage in the area. The purchaser will have to comply with any zoning and landscaping requirements. The Planning Department raised concerns that the area between the lot and the street remain open grassed area. The property has been declared surplus by the council on May 30, 1995. The property is a vacant parcel containing approximately 50,043 square feet. The parcel is adjacent to Brookside Methodist Church at 2760 South Roosevelt and is along Roosevelt. The Church has shown an interest in acquiring this property in order to provide additional parking. Due to the low economic status of the area, demand for land is very low. No comparables were found in the area. The current offer is around $.10 per square foot. The City will receive cash consideration for the sale of the property. Since fee title to the property was acquired from the U.S. Government for the sum of $1, the City will receive the full purchase price minus any associated administrative and closing costs. Council Member Kamen Council Member Kamen said a surplus property policy is needed for items such as this. Chris Cherches City Manager said it is anticipated a policy proposal will be presented the first meeting in September. Motion -- Knight moved that the Contract be approved and the Mayor be authorized to -- carried execute. Motion carried 7 to 0. ITEM 25 PROPERTY DISPOSITION SURPLUS PROPERTY LOCATED ALONG GREENWAY BOULEVARD, NORTH OF MT. VERNON AND SOUTH OF HARRY. (District VI) Chris Cherches City Manager asked that this Item be withdrawn. Motion -- carried Knight moved that the Item be stricken. Motion carried 7 to 0. INTERFAITH INN CONTRACT AMENDMENT WITH INTERFAITH INN. (District I) Agenda Report No. 95-671. The Emergency Shelter contract amendment modifies a contract approved by the Council on September 16, 1994. The contract time of performance, budget detail, and cost control statement are modified. The contract if funded through federal funds and the amount remains unchanged. Motion -- Knight moved that the Contract be approved and the Mayor be authorized to -- carried execute. Motion carried 7 to 0. PROPERTY ACQUISITION ACQUISITION OF PROPERTY - EAST BANK. Agenda Report No. 95-672. To complete East Bank development plans, Staff has identified the need to acquire the property at 401 S. Main (Lot 77, Main Street, Sutton's Reserve to the City of Wichita, Sedgwick County, Kansas) for East Bank redevelopment purposes. This property is needed in connection with the East Bank Redevelopment Project and the East Bank Hotel. This property will continue the City's efforts to provide a contiguous assemblage of land for public infrastructure improvements and make it available for redevelopment. This property is owned by Arthur E. Miller. The structures on the property, a commercial building with three tenants, will conflict with the East Bank redevelopment project and will require the tenants, Keller's Radiator Warehouse at 401 S. Main; Wilson's Body Shop, 107 W. Waterman; and Keller's Radiator Service, 111 W. Waterman to vacate the property. City Staff has attempted to negotiate a purchase of the identified property but has been unable to reach agreement with the owner. The proposal will take approximately 7,100 sq. ft. of land and a 7,092 sq. ft. retail/warehouse building. The County's appraised value, and the Staff's offer was $120,000 which calculates to $16.90 per sq. ft. for the land. The owner has reviewed the City's offers but felt that the cost to purchase, construct or renovate another facility and relocate the business will cost an estimated $300,000 or more. The owner feels the City should assist in the purchase of another facility in the downtown area and in the relocation of these businesses. Funds will be made available from the Core Area Land Acquisition/Demolition funds, Project No. CA-9204 for the acquisition. Motion -- Knight moved that the Ordinance providing for the acquisition by eminent domain of certain property within the East Bank area and direct the City Attorney to file the appropriate proceedings in the District Court to accomplish such acquisition be placed on first reading and the Resolution authorizing funding be -- carried adopted. Motion carried 7 to 0. ORDINANCE An Ordinance providing for the acquisition by eminent domain of certain private property, easements and right- of-way therein, for the purpose of public infrastructure and possible redevelopment and to be known as the East Bank Redevelopment Project in the City of Wichita, Sedgwick County, Kansas; designating the lands required for such purposes and directing the City Attorney to file a petition in the District Court of Sedgwick County, Kansas, for acquisition of the lands and easements therein taken and providing for payment of the cost thereof, introduced and under the rules laid over. RESOLUTION NO. R-95- 383 A Resolution authorizing the issuance of bonds by the City of Wichita at large for public improvements to acquire property for the East Bank Project, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. ORDINANCES SECOND READING ORDINANCES. (First Reading 8/8/95) Eminent Domain ORDINANCE NO. 42-830 37th N. & Lawrence An Ordinance providing for the acquisition by eminent domain of certain private property, easements and right- of-way therein, for the purpose of constructing, operating and maintaining a sanitary sewer and to be known as Lateral 128, Main 4, Sanitary Sewer No. 23 in the City of Wichita, Sedgwick County, Kansas; designating the lands required for such purposes and establishing a benefit district and directing the City Attorney to file a petition in the District Court of Sedgwick County, Kansas, for acquisition of the lands and easements therein taken and providing for payment of the cost thereof, read for the second time. Knight moved that the Ordinance be placed upon its passage and adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. ORDINANCE NO. 42-831 Z-3173 An Ordinance changing the zoning classifications or districts of certain lands located in the City of Wichita, Kansas, under the authority granted by Section 28.04.210, the Code of the City of Wichita, Kansas, read for the second time. Knight moved that the Ordinance be placed upon its passage and adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. Z-3173. ORDINANCE NO. 42-832 Z-3174 An Ordinance changing the zoning classifications or districts of certain lands located in the City of Wichita, Kansas, under the authority granted by Section 28.04.210, the Code of the City of Wichita, Kansas, read for the second time. Knight moved that the Ordinance be placed upon its passage and adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. Z-3174. RECESS The City Council recessed at 9:52 a.m. and returned to regular session at 10:40 a.m. (The Council returned to the Budget Item and action is shown in Agenda order.) 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 potential litigation, legal advice, and contract negotiations; personnel matters of non-elected personnel; and the regular meeting -- carried be resumed at 1:00 p.m. in the City Council Chambers. Motion carried 7 to 0. RECESS Council recessed at 11:44 a.m. and reconvened in regular session at 1:00 p.m. Mayor Knight Mayor Knight announced that no action was necessary as a result of the executive session. (The Council again returned to the Budget Item and action is shown in Agenda Order.) ADJOURNMENT The City Council meeting adjourned at 3:47 p.m. Pat Burnett Deputy City Clerk Workshop: 1996 Budget COUNCIL PROCEEDINGS JOURNAL 159 AUGUST 15, 1995 Page