MINUTES OF THE MEETING OF THE CITY COUNCIL Wichita, Kansas, April 16, 1996 Tuesday, 9:00 A.M. The City Council met in regular session with Mayor Knight in the Chair. Council Members Cather, Cole, Ferris, Gale, Rogers; present. *Council Member Kamen absent. Cathy Holdeman, City Manager's Office; Gary Rebenstorf, Director of Law; Patricia L. Burnett, Deputy City Clerk; present. The invocation was given by Matt Friesen, Hope Mennonite 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 April 9, 1996, were -- approved approved 6 to 0. (Kamen absent) AWARDS AND PRESENTATIONS SERVICE CITATIONS Mayor Knight presented Distinguished Service Citations to those present. EMPLOYEE RECOGNITION Curtis Bowen was recognized for saving a person's life. *Council Member Kamen present. PROCLAMATIONS Mayor Knight presented the Proclamations previously approved. SCHOLARSHIP The Coastal/Gooch Scholarship was presented to Jason McCarthy. (The Council proceeded to take up Item 7 out of Order. Action is shown in Agenda Order.) PUBLIC AGENDA COMMENTS BY KIRK ANDERSON. Kirk Anderson Kirk Anderson, 2932 South Fern, said that in 1993, the City Council had referred the matter of tattooing in the City of Wichita to the Wichita/Sedgwick County Board of Health. On January 5, 1993, the City Council action continued the ban on tattooing within the City and referred the matter to the Kansas Department of Health and Environment for consideration. Mr. Anderson said HB 2916 became law in March, 1996, and now it is time for the City Council to take action to repeal City Code Section 5.80.010. Motion -- Knight moved that this matter be referred back to the Board of Health to be revisited and to make any necessary recommendations to the Council. Motion -- carried carried 7 to 0. UNFINISHED BUSINESS 33RD STREET NORTH PAVING OF 33RD STREET NORTH FROM SALINA TO WOODLAND. (District III) Cathy Holdeman City Manager's Office reviewed the Item which was continued from April 2, 1996, pending meetings with the neighborhood. Council Member Cole Council Member Cole said a meeting was held on April 10, 1996, with CPO Council 6 and affected property owners. The consensus of the group was that the method of assessment for the project should be on an equal share basis. Council Member Cole said a vast majority of the neighborhood was present and in favor of the project. Mike Lindebak City Engineer stated that there were over 20 people present at the meeting and the CPO voted to support the project. The public hearing on May 7, 1996, will allow those objecting to be heard. Motion -- Cole moved that the Resolution setting the public hearing for May 7, 1996, at -- carried 9:00 a.m. be adopted. Motion carried 7 to 0. RESOLUTION NO. R-96-146 A Resolution directing and ordering a public hearing on the advisability of improving 33rd Street North from the west line of Salina to the west line of Woodland, presented. Cole moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. RECESS The City Council recessed at 10:29 a.m. and reconvened at 11:10 a.m. Council Members Cather, Kamen; absent. ORDINANCES. a. Franchise Ordinance - Southwestern Bell Telephone Company. Cathy Holdeman City Manager's Office reviewed the Item. Joe Lang City Attorney explained the changes to the franchise ordinance as follows: 1) Section 1. "Access line" definition has been expanded to include those access lines that might be used for local telecommunications services. The definition is consistent (but not identical) to the definition used in the Occupation Tax ordinance. 2) Section 2(b). The "Cable service" definition and exclusion has been clarified. (SWB does not have the right to provide cable service under this franchise; that is subject to a separate franchise.) The grant of this franchise does not include the new open video system (OVS) service developed in the Telecommunications Act of 1996. Any offering of that service will be subject to future negotiations and actions consistent with the Act. 3) Section 4 on Indemnity and Hold Harmless has been modified slightly to reflect current Kansas law. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Ferris moved that the Ordinance be placed on the third and final reading and -- carried placed upon its passage and adopted. Motion carried 5 to 0. (Cather, Kamen; absent) ORDINANCE NO. 43-128 An Ordinance granting to Southwestern Bell Telephone Company, its successors and assigns, a Franchise and the right to construct, operate, maintain, and extend a telecommunication system in the City of Wichita, Kansas, prescribing the terms of said grant and relating thereto; and repealing Ordinance No. 40-649 and all other ordinances and resolutions and parts thereof inconsistent or in conflict with the terms hereof, read for the third time. Ferris moved that the Ordinance be placed upon its passage and adopted. Motion carried 5 to 0. (Cather, Kamen; absent) Yeas: Cole, Ferris, Gale, Rogers, Knight. b. Occupation Tax Ordinance. Joe Lang First Assistant City Attorney reviewed the changes in the ordinance. As a result of franchise revisions and suggestions from consultants, the following changes (with no change to the basic concepts of an occupation tax on providers of telecommunications services) from the ordinance presented for first reading have been made: 1) Access line definition. The intent is to include those access lines that might be used for local telecommunications services (not identical to the definition in the SWB Franchise Ordinance). 2) A late charge of 1.5 percent per month is imposed. 3) The provision to provide a credit and avoid duplicative payments by those entities making franchise payments is clarified. 4) Violation and penalties sections are enhanced to ensure the ability to enforce the ordinance. Penalty upon conviction is set at $2,500. 5) Other provisions are rewritten to assure clarity and consistency in terminology. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Ferris moved that the Ordinance be placed upon its passage and adopted. Motion -- carried carried 5 to 0. (Cather, Kamen; absent) ORDINANCE NO. 43-127 An Ordinance of the City of Wichita, Kansas, establishing an occupation tax for providers of telecommunications services within the City of Wichita, read for the second time. Ferris moved that the Ordinance be placed upon its passage and adopted. Motion carried 5 to 0. (Cather, Kamen; absent) Yeas: Cole, Ferris, Gale, Rogers, Knight. PUBLIC BUILDING COMM. CHARTER ORDINANCE FOR PUBLIC BUILDING COMMISSION. Continued from April 2, 1996. Cathy Holdeman City Manager's Office reviewed the Item. Council Members Cather, Kamen; present. The Wichita Public Building Commission tentatively approved a request from USD #259 that the PBC undertake the issuance of lease revenue bonds on behalf of the District to finance the acquisition of a $17 million data processing and telecommunications system. In order to complete this financing project, the PBC's authority must be expanded to include this project. Mayor Knight Mayor Knight inquired if anyone wished to be heard. Council Member Kamen present. A letter was presented by Karl Peterjohn on behalf of Cindy Duckett. Karl Peterjohn Karl Peterjohn said his main concern is that this would get the City involved in, basically, a bond issue for schools. When there is a different local governmental body there could be confusion over responsibility with the City issuing school bonds. Mr. Peterjohn urged care in considering this matter because bonded indebtedness can play just as big of role in terms of forcing the taxpayers to pick up the burden as a direct mill levy. Mayor Knight Mayor Knight said the City should be prepared to assist but the School Board would be the one to deal with problems with the use of the bonds. Council Member Ferris Council Member Ferris said he found it troubling that the Public Building Commission had approved this before the City Council had approved the Charter Ordinance and that it would be sent back to the Public Building Commission for a public hearing on whether or not this would be appropriate for the Public Building Commission. It is one thing to give the Public Building Commission authority and another thing for the Public Building Commission to take the action. There are two separate steps - one making it possible for other governmental agencies to be able to do this type of thing and the other to look at individual projects and processes. Usually when a request of this sort is made there are minutes of that agency which reflect discussions and decisions. Allen Bell Financial Projects Director said he did not believe this matter had gone to the School Board for a public vote but would do so at the time the financing goes forward and a lease agreement is required. Council Member Cather present. Council Member Ferris Council Member Ferris said the process seems disconcerting with the City Council taking the lead and the School Board not having taken a vote on the matter or the Public Building Commission making public notification. Council Member Ferris said he might be able to support this Item after the School Board has taken public vote on the issue. Motion -- Knight moved that the Charter Ordinance be placed on first reading. Motion -- carried carried 5 to 2. Ferris, Gale - No. CHARTER ORDINANCE A Charter Ordinance exempting the City of Wichita, Kansas, from the provisions of K.S.A. 12-1759, 12-1760, 12-1762, 12-1763 (1995 Supp.) and 12-1767, providing for substitute provisions on the same subject relating to the Public Building Commission and amending the supplementing Charter Ordinances No. 107 and 149, introduced and under the rules laid over. CITY HALL PARKING CITY HALL PARKING. Cathy Holdeman City Manager's Office reviewed the Item. Agenda Report No. 96-619 A. At the last City Council meeting, Mayor Knight asked the City Council to revise the City Hall parking to eliminate the traffic congestion and address the criticism from users. Mayor Knight indicated he was not interested in redesigning the parking facilities, but wanted to review what modifications might be possible to address the obvious problems. Council Member Ferris was asked to work with Staff to address some of the concerns. The City Hall parking garage and surface parking were configured for metered parking, similar to the previous parking facility. It was not designed for managed parking/control which was later implemented by Council action (after the design completion of the garage). When managed parking was implemented, involving pay booths, no major redesign was made except installation of pay booth islands at the entry ways, along with employee and official vehicle parking provided at two entries with electronic key ingress/egress. Public Works Staff, along with Councilman Ferris, reviewed the design and considered several options. The intent was to attempt to address the criticisms of entry and access for short-term parking, internal turning movements and parking fees. In studying design possibilities, a key consideration was not to reconfigure the parking areas or encounter significant expense, but more to alleviate some of the criticisms of the current facilities. In addressing the parking layout, it is suggested that a new fee schedule be adopted, as follows: Optional: First 15-20 minutes in managed parking area (for drop-offs/quick service use) = Free Parking First 30 minutes = $.25/hr. Next 30 minutes = $.50/hr. Each hour thereafter = $.75/hr. Maximum Parking/Day = $5.00 day Metered (30 Minutes) Short Term Parking (proposed new separate parking area) = $.25 It is also recommended that the parking lot at Waco and Central Street be made available for employee parking at no charge. The following parking suggestions are made: OPTION #1: This Option involves designating the area immediately south of City Hall as a short-term metered parking lot (30 minute meters). This lot would be isolated from the managed parking facilities off Third Street and have a separate access from Third Street. By having this short-term metered parking lot, it would provide City Hall patrons with a CHOICE by either parking in the short-term surface lot, or entering the managed parking facilities via the pay booth. This Option would include: A) Installation of a new concrete approach on Third Street, with two lanes of ingress/egress. The new drive would be located between Main Street and the existing parking booth. To facilitate this access, five (5) parking spaces would have to be eliminated. B) The parking lot would be closed at the west end (near Pay Booth) to eliminate access to this lot from the booth and eliminate the exit from the metered area. Four parking spaces would be removed to create a turn-around space for users of the parking lot. Other revisions made in conjunction with this new parking lot configuration would be: 1. New way finding signage. 2. Removal of electronic access (by employees and official vehicles) at the Third Street entrance/exit to reduce congestion. 3. Elimination of the nine (9) parking spaces west of City Hall to eliminate conflicts with vehicles entering/exiting via the pay booth on Third Street. An alternative could be to use this parking for handicapped, police vehicles or other official vehicle parking, as needed. This Option would provide the parking public with a choice of using this short term parking lot to avoid the managed parking/garage. The intended use would be for persons that do not have long-term business at City Hall. It would provide 71 metered, short-term parking spaces for the public. OPTION #2: This Option, in addition to creating a short- term parking lot south of City Hall, would add a double row of metered spaces between the current Third Street booth access and Water Street employee/official vehicle entry. This added parking (41 spaces) would allow for more short-term (perhaps one-hour) metered parking. By utilizing this added surface parking, the pay booth would have to be relocated into the interior of the parking lot (toward the north). This Option would include: A) Relocating the parking booth and parking control equipment, and repairs to the existing island. B) Closure of the west end (at employee entry/exit location - Water Street), along with elimination of four (4) parking spaces for turn-around movement. C) Other revisions noted in Option #1 would also be implemented with this option. By adding this additional surface parking to the West Lot, a total of 112 spaces would be placed into short- term, metered parking use (outside of the managed parking facilities). The Council might wish to implement Option #1 for a trial period to determine impacts, prior to consideration of Option #2. The City has invested approximately $265,000 in the managed parking facilities, including equipment and pay booths. A total of $4.8 million in outstanding bonds on parking construction are carried on this facility. The Debt Service Fund cash flow projects a minimum of $158,000 net revenue (after operating and maintenance expense) necessary to support a portion of the debt service payments for the general obligation bonds issued to finance the parking complex. Annual debt service is $746,000 in l996, declining to $493,000 in the year 2005. Annual costs to support the attended parking booths and garage operation is $90,000, with an additional $55,000 projected to pay for annual maintenance costs associated with the parking facilities. If metered parking areas are selected as options, then it is proposed that electronic meters be acquired. These meters have the flexibility to program parking time/fees, allowing for more flexibility in the future should changing times (or fees) be required. Electronic meters for Option #1 would cost $23,400. Electronic meters for Option #2 would cost $39,320. Mechanical meters could be acquired for lessor costs but would not have the flexibility provided in the electronic meters. If the decision is made to modify the City Hall parking facilities to implement the above (or other) options, a funding source(s) for the associated one-time costs and replacement for lost revenues to offset debt service would need to be identified. Capital expenditures to modify the parking complex would require governing body approval of an initiating resolution and change order for the work to be required. Mayor Knight momentarily absent; Vice Mayor Cather in the Chair. Council Member Ferris Council Member Ferris said Option 1 was recommended due to the lower cost and the fact that it could be an interim test for Option 2. The area on the map which is marked "LOSE 9 STALLS" (Official Vehicles) is for police cars for officers who have some "quick" business that needs to be taken care of at City Hall. This would be easy access for the Police Officers and the Officers are trained drivers who will be able to make sure they do not back into traffic and cause traffic problems. Steve Lackey Director of Public Works said Option 1 could be accomplished within the Public Works operating budget for about $5,000. There are sufficient mechanical meters in inventory to install. The driveway can be built out of the Public Works operating budget. The metered parking lot would be signed short-term and the other area signed long-term. It is also planned to eliminate the employee egress/ingress at the Third Street manned booth. Council Member Ferris Council Member Ferris recommended the fee structure be cut significantly. The revenue stream has been adequate. It is recommended the rates be $.25 for the first one-half hour, $.50 for the next one-half hour, $.75 for the following hours to a maximum of $5.00 per day. It is also recommended that there be free employee parking at Central and Waco. It would not be prudent to offer free employee parking in the City Hall Parking Garage because there must be space for the public and if it is all taken by employee parking there would not be enough parking space for the public. The Council needs to make a decision regarding whether there should be half-hour or hour parking meters. Twenty-five cents per half hour is reasonable. It may be that the parking lot should be just half-hour, short-term with the other areas for longer than half-hour parking. There is still a problem with the directional areas of the parking garage. It makes sense for right-turns in the parking garage. However, perhaps the action recommended should be taken and then evaluated in about 4 months. There is potential conflict with pedestrians and vehicles with right- turns and there is potential expense to be incurred with right- turn designation. Before any action is taken, there should be confidence that that is the best appropriate action. Regarding free Tuesday Council Meeting parking, Council Member Ferris said Staff will need to give direction on the administrative situation. It would be nice to offer parking on Tuesdays from 8 to 1, when the Council is in session, at no charge. At 1:00 p.m. the time would start for any car parked in the lot. It is unknown, administratively, how that would work. There would be some loss of revenue and there certainly would be some people using City Hall who were not attending the Council meetings. There is some potential for benefit and this can be evaluated if there are a lot of spaces lost during those free hours. It is also thought that when people are invited to the building (subpoenas and other such invitations) the City has the mechanism to validate tickets. Council Member Gale Council Member Gale spoke in favor of Option One, the new fee structure, and hour parking meters. Council Member Kamen Council Member Kamen stated that he felt there was no way 71 meters could take care of users of City Hall and the IRS building with hour meters. Possibly, 71 meters may be adequate with half-hour parking. Steve Lackey Director of Public Works said the meter heads can be changed out fairly easily. With the half-hour meters, there would be the option of short-term or long-term parking. Council Member Cole Council Member Cole said she could see horrendous problems with free parking for those attending City Council meetings. People would tend to do business with the City and the IRS on Tuesday mornings. Thirty minute parking might accommodate those going to the IRS building but would not accommodate those doing business with the City. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Council Member Ferris Council Member Ferris said the most appropriate way would be to install 30-minute meters and have the metered area signed as "30-Minute Parking Only" at the entrance. This can be evaluated in four months or sooner if a Council Member feels evaluation is needed. Regarding free Tuesday parking, thought can be given to developing a creative parking solution in the next two to three months. Motion -- Ferris moved that Staff be instructed to appropriate the necessary funds to do Option One with the current in-stock 30- minute meters, and that the signage to the metered area read "30-Minute Parking Only"; the parking lot rates of $.25 for the first half-hour, $.50 for the next half-hour, $.75 per hour, and $5.00 per day be instituted immediately; the far south and west parking lot be blocked off and reserved for City vehicles; the parking stalls identified as "Lose 9 Stalls" be designated "Police Car Only" parking; and that the parking lot at Central and -- carried Waco be made available for employee parking at no charge. Motion carried 7 to 0. NEW BUSINESS IRB - SOUTHCLIFF REQUEST FOR LETTER OF INTENT FOR TAXABLE INDUSTRIAL REVENUE BONDS - SOUTHCLIFF SHOPPING CENTER ASSOCIATES. (District III) Cathy Holdeman City Manager's Office reviewed the Item. Agenda Report No. 96-317. Southcliff Shopping Center Associates (Southcliff) is a Kansas general partnership and owner of a facility located at 3050 S. Hydraulic which is leased to A. M. Castle & Co., d/b/a Castle Metals (Castle). Southcliff has submitted a request for the issuance of a Letter of Intent for Taxable Industrial Revenue Bonds in an amount not to exceed $1,500,000 to construct an expansion to the facility leased to Castle. Southcliff also requests a 100% 10-year property tax abatement on the new IRB-financed improvements. Castle was founded in 1890 and is North America's largest industrial distributor of specialty metals including carbon alloy and stainless steels; nickel alloys; aluminum; titanium; copper and brass. Castle provides highly engineered materials and a full range of value-added services to a widely diversified customer base that includes many Fortune 500 companies. Locally, Castle's markets include substantial sales to local aircraft manufacturing companies. Castle has over 28 locations nationwide and over 2.4 million square feet of capacity including the approximately 26,500 square feet currently under roof at 3050 S. Hydraulic. Bond proceeds will be used to construct an approximately 30,000 square foot warehouse and 2,500 square foot administrative office expansion of the facility located at 3050 S. Hydraulic. The expansion would more than double Castle's capacity at the facility. The bonds will be privately placed with Emprise Bank. Emprise Bank has committed to purchase the bonds for their investment portfolio. The firm of Hinkle, Eberhart & Elkouri, L.L.C. will serve as bond counsel in the transaction. The project will be financed by bond proceeds as follows: USE OF BOND PROCEEDS Building Construction $1,300,000 Issuance Costs (Legal Fees, etc.) 80,000 Other Financing Costs 80,000 (Appraisals, Capitalized Interest, etc.) Contingency 40,000 Total: $1,500,000 Castle currently employs approximately 28 people and anticipates adding another 7 employees by the end of the first full year following construction of the expansion. Castle also anticipates relocating 2 existing management staff from out-of-state locations to the Wichita area during the same time frame. Southcliff will have a current approved EEO/AA Plan on file with the City's Human Resources Department prior to the issuance of the bonds. Southcliff 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. Southcliff is requesting a 100% tax abatement of ad valorem property taxes on the project. A cost/benefit analysis will be provided by Wichita State University prior to the City Council's consideration of this item. Under the City's Business Incentives Policy, Southcliff/Castle would qualify for a 92% tax abatement. Bond documents needed for the issuance of the bonds will be prepared by Hinkle, Eberhart & Elkouri, bond counsel for the project. The City Attorney's Office will review and approve the form of bond documents prior to the issuance of any bonds. Allen Bell Financial Projects Director said a cost benefit analysis had been completed by Wichita State University. The ratio of benefits to cost for the City is estimated to be 2.06 to 1, for Sedgwick County 1.52 to 1, for U.S.D. 259 1 to 1, and for the State of Kansas 11.6 to 1. The reason the ratios are higher than usual is because the average wages of the new employees of A.M. Castle, the subtenant in the issue, will be over $100,000 a year. Staff calculated, based on the Business Incentive Police, the eligible percentage of tax abatement to be 92 percent. Staff is recommending a 5 years plus 5 for the term of tax abatement. Council Member Kamen Council Member Kamen questioned the amount of actual manufacturing being done by A.M. Castle. Council Member Kamen also said the term should be for no more than five years. Motion -- Cather moved that the issuance of a Letter of Intent to Southcliff Shopping Center Associates for Taxable Industrial Revenue Bonds in an amount not to exceed $1.5 million for a 6- month term be approved and the Mayor be authorized to sign; and a property tax abatement for 5 years plus 5 be approved, subject to the following conditions: 1. Negotiation of a Lease Agreement and Bond Ordinance. 2. Arrangements have been made for the sale/placement of the bonds. 3. Guarantees for the payment of the bonds are in place. 4. Agreement to pay the City administrative fees of $2,500 per year for as long as the bonds are outstanding. 5. Agreement to pay all costs incurred by the City for processing the bonds/application. 6. An approved Equal Employment Opportunity/Affirmative Action Plan is on file with the City prior to issuance of the bonds. 7. An approved Water Conservation Plan is on file with the City prior to issuance of the bonds. 8. Agreement to submit building and site plans to CART (City manager's Aesthetic Review Team) for review and to modify the proposed design to comply with any reasonable CART conditions or recommendations. 9. Agreement to provide the City, prior to submitting the proposed Lease Agreement, an Environmental Site Assessment (ESA) that documents the environmental conditions of the property, and an agreement that the ESA will be conducted by an 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. 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. Winton Hinkle Winton Hinkle, Bond Counsel, said that manufacturing, from a tax standpoint, is regarded as an operation in which materials are changed in character. There activities of that sort that occur at this facility. It is understood that the operation principally consists of warehousing of metals which are sold to the aircraft industry and to subcontractors of the aircraft industry for further fabrication into aircraft parts. Metals are cut to length and activities of that sort. It is understood that the actual fabrication of parts for airplanes is not a part of A.M. Castle's business. A.M. Castle's operations are unique and the facility is a mixed-use facility that is difficult to characterize in simple terms. Council Member Kamen Council Member Kamen said his concern is that warehouses should be considered warehouses and that the City should look at definitions of manufacturing with regard to future issues. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. -- carried Motion carried 6 to 1. Kamen - No. IRB - RIVERSIDE REQUEST FOR LETTER OF INTENT FOR HOSPITAL FACILITIES IMPROVEMENT AND REFUNDING REVENUE BONDS - RIVERSIDE HEALTH SYSTEM, INC. (District VI) Cathy Holdeman City Manager's Office reviewed the Item. Agenda Report No. 96-318. In February of 1977, the City Council approved the issuance of $5,415,000 in revenue bonds to Osteopathic Hospital (now Riverside) to refund a 1976 bond issue and to construct an addition to the facility. In September of 1985, the Council approved the issuance of $1,600,000 in bonds to finance the construction of additional improvements to the hospital. Another bond issue in May of 1991 was approved to refund the 1985 bond issue and to finance the construction of a satellite facility and to add three additional floors to the hospital. Riverside Health System has now submitted a request for the issuance of a Letter of Intent for Hospital Facilities Improvement and Refunding Revenue Bonds for a 5-year term. Bond proceeds will be used to refund all outstanding balances of prior bond issues; to construct a retirement community and to construct two new family practice clinics. A tax abatement is not requested because of the 501(c)(3) status of the hospital. Riverside Health System, Inc., is a Kansas corporation chartered in 1947 as a non-profit corporation. Riverside is licensed for 125 acute care beds and maintains a staff of 225 physicians. Riverside is also a teaching hospital providing post-graduate training to 216 physicians of whom 75% have chosen to practice in Kansas. Riverside operates nine family practice clinics located throughout the City of Wichita, Sedgwick County and surrounding counties. Bond proceeds will be used to refund the outstanding balances of Riverside's 1977 and 1991 bond issues; to construct a retirement community complex located north of the existing hospital that will consist of "active adult" duplexes; a 75-unit independent living facility; a 60-unit assisted living facility; a 45-bed nursing home; a 25-bed Alzheimer/dementia unit and a well/fitness facility to serve the entire complex; and to construct two new family practice clinics to be located at West Street and DelSienno and at 135th and Maple. The bonds will be underwritten by Stifel, Nicolaus and Company of Wichita. The firm of Hinkle, Eberhart & Elkouri, L.L.C. will serve as bond counsel in the transaction. The project will be financed by bond proceeds as follows: USE OF BOND PROCEEDS Land Acquisition $ 800,000 Active Adult Duplexes 3,200,000 Independent Living Facility 9,900,000 Assisted Living Facility 2,700,000 Nursing Home Facility 4,000,000 Alzheimer/Dementia Unit 2,000,000 Family Practice Clinics 2,400,000 Hospital Equipment 500,000 Refunding Existing Debt 9,000,000 Cost of Issuance 500,000 Total: $35,000,000 Riverside, over and above the physicians on staff, currently employs approximately 650 people and anticipates adding another 130 plus employees upon completion of the project. Riverside has a current approved EEO/AA Plan on file with the City's Human Resources Department. Riverside 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. Riverside is not requesting a tax abatement of ad valorem property taxes on the project because they are exempt from taxes by virtue of their status as an exempt organization under Section 501(c)(3) of the Internal Revenue Code. Mayor Knight Mayor Knight inquired if anyone wished to be heard. Robert Dixon Robert Dixon, CEO of Riverside Health System, Inc., reviewed the project. Motion -- Cole moved that the issuance of a Letter of Intent to Riverside Health System, Inc. for Hospital Facilities Improvement and Refunding Revenue Bonds in an amount not to exceed $35.0 million for a 5-year term, be approved and the Mayor be authorized to sign, subject to the following conditions: 1. Negotiation of a Lease Agreement and Bond Ordinance. 2. Arrangements have been made for the sale/placement of the bonds. 3. Guarantees for the payment of the bonds are in place. 4. Agreement to pay the City administrative fees of $2,500 per year for as long as the bonds are outstanding. 5. Agreement to pay all costs incurred by the City for processing the bonds/application. 6. An approved Equal Employment Opportunity/Affirmative Action Plan is on file with the City prior to issuance of the bonds. 7. An approved Water Conservation Plan is on file with the City prior to issuance of the bonds. 8. Agreement to submit building and site plans to CART (City manager's Aesthetic Review Team) for review and to modify the proposed design to comply with any reasonable CART conditions or recommendations. 9. Agreement to provide the City, prior to submitting the proposed Lease Agreement, an Environmental Site Assessment (ESA) that documents the environmental conditions of the property, and an agreement that the ESA will be conducted by an 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. 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. JOINT FIRE MAINTENANCE PROPOSED CONTRACT FOR PILOT PROGRAM - JOINT FIRE MAINTENANCE FOR CITY AND CONTRACT SEDGWICK COUNTY FIRE DEPARTMENTS. Cathy Holdeman City Manager's Office reviewed the Item. Agenda Report No. 96-319. The Fire Department and the Sedgwick County Fire Department were requested to review possibilities for functional consolidation to improve operational efficiency, response to community needs, and/or reductions in costs. As a result of this review, it was suggested that there was an opportunity to merge City and County Fire Department fleet maintenance activities to gain more efficient operations at a cost savings. A task force comprising staff from both the City and County was established to further study this project. The result was a recommendation to implement a pilot project for a twelve month period, beginning July 1, 1996. The proposed joint fire maintenance would be located at the City's current fire facility, located at 500 South Topeka. This building includes four bays; parts and storage areas; and office space for management and support personnel. The facility has the capacity to accommodate the increased maintenance activities associated with County fleet operations. The trial project proposes that management and administrative support will be provided by existing City of Wichita Fire Department fleet maintenance personnel. The joint project will retain the existing three City fire fleet mechanics and the two County fire mechanics. The City and County will continue to be responsible for the compensation packages (salary and benefits) associated with their respective personnel during the trial period. Fire staffs have analyzed effect of consolidation on fire maintenance operations and have concluded that there could be benefits that accrue to both the City and Sedgwick County. Labor resources will be combined which will increase capacity and should prevent the need for increasing individual labor resources in the near future. Shared training and educational opportunities for highly specialized work will benefit all that are involved in this function. Quantity purchases of parts, supplies, and services should result in some cost savings. Recovery of all costs associated with this project is assured. The County will be financially responsible for reimbursing the City for parts, materials and services utilized in the repair, service and management of County fleet units. Additionally, the County will be assessed an overhead charge for miscellaneous materials and supplies. The County will also reimburse the City for its fair percentage of the utility costs, management and staff support services, and administrative charges. Larry Garcia Fire Chief said he was excited about this opportunity which was another way to become more efficient for the community. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Knight moved that the pilot program be approved; and the joint agreement be -- carried approved and the Mayor be authorized to sign. Motion carried 7 to 0. OLD TOWN PARKING LOT #1 ORDINANCE TO RESTRICT PARKING FOR OLD TOWN DISTRICT PARKING LOT #1 LOCATED AT THE PARKING RESTRICTION NORTHWEST CORNER OF MEAD STREET AND DOUGLAS AVENUE. (District VI) Council Member Kamen declared a conflict of interest and left the Bench. Cathy Holdeman City Manager's Office reviewed the Item. Agenda Report No. 96-320. A petition was submitted by "adjacent" business owners and lessors of property in Old Town to restrict parking on Old Town District Parking Lot #1. The Old Town District parking lots were established for the patrons and employees of the area businesses. The owners and lessors of the businesses pay parking assessments for the right to utilize the public parking lots to satisfy their off-street parking requirements. Currently, a number of persons working outside the Old Town District park their cars in these lots during the early morning and occupy the parking spaces throughout the day. By installing "NO PARKING - 4 AM to 9:30 AM" signs on Parking Lot #1 (the northwest corner of Mead Street and Douglas Avenue), these parking spaces will be available for Old Town patrons and employees. The petition was reviewed by the Old Town Advisory Committee (Council Member Cole, Chair, on April 4, 1996). The Committee supports the restriction on this parking lot, but was concerned about the possible impacts on other Old Town Parking areas. That is, would the non-Old Town patrons currently using Lot #1 for all day parking move to these other lots, thus reducing the spaces available for Old Town businesses. Inasmuch as the Old Town businesses are paying special assessments for the parking space, the Committee does not want to see these public spaces utilized by employees or patrons of non-Old Town businesses. The Committee is recommending to the City Council that these restrictions (as outlined in the petition) be placed on a trial basis for a suggested 30-day period to determine the impacts. The additional signing to the parking lot will cost approximately $200. The work can be performed by City crews without an increase in the Traffic Maintenance budget. Council Member Cole Council Member Cole said the City will find out whether this will help the parking situation during a 30-day trial period. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Cole moved that the Petition be approved and the Ordinance be placed on first -- carried reading. Motion carried 6 to 0. (Kamen absent) ORDINANCE An Ordinance creating Section 11.52.115 of the Code of the City of Wichita, Kansas, pertaining to parking procedures in lots in the Old Town District, introduced and under the rules laid over. Council Member Kamen present. CITY COUNCIL AGENDA VEHICLE IMPOUNDS TASK FORCE TO STUDY ORDINANCE ON IMPOUNDING OF VEHICLES. (Requested by Council Member Kamen) Council Member Kamen Council Member Kamen suggested the Council establish a task force of citizens and staff to study the possibility of an ordinance to impound cars of persons driving with a suspended drivers license or driving with an unauthorized license tag. Those who are driving with suspended drivers licenses, with few exceptions, are (1) those who have been convicted of a high frequency of serious events which indicate a disrespect for traffic laws and disregard for the safety of other persons on the streets, (2) they have been convicted of three or more moving traffic violations and have an obligation to not drive until the situation is cleared, or (3) have posted bond and relinquished it by not showing up for court. Mayor Knight momentarily absent with Vice Mayor Cather in the Chair. At the present time, persons stopped and are driving with a suspended drivers license are arrested, required to post bond, and are released. A number of these people do not show up for court again and warrants are issued and are added to the growing pile of unenforced warrants. This system is not working out. There is a thought of going to just citations in such instances but this would just add to the unpaid citations and eventual warrants. The way to handle the situation would be with "instant justice" - impound the vehicle and issue a citation. If the citation is paid, the car can be released. This would not eliminate due process as the opportunity is still available to go to court and fight the "system." Mike Watson Police Chief spoke in favor having a commission or a task force look at the factors involved and recommend a strategy. It takes a police officer about one and a- half hours to impound a vehicle and the Police Department incurs the cost of the impound. During the first three months of 1996, there have been either citations given or arrests made for 2,965 of these violations. There are other suggestions that might help and other things that can be done to defray some of the costs and make this work. There needs to be a committee look at the matter to see what would work. There is special interest in this area when it comes to repeat violators. There are many people who drive on suspended and revoked drivers licenses and who do so repeatedly. Especially, in these cases, it might be a good idea to temporarily remove the vehicle. With regard to illegal tags and things of that nature, a real hard look would need to be made because there are ordinances that cover everything from a person who has two cars and puts the wrong tag on the wrong car to a person who has a stolen tag. Police Chief Watson said he would certainly be willing to serve on any kind of task force to look at this matter. Mary Ann Khoury Mary Ann Khoury, Executive Director of the DUI Victim Center of Kansas, said that, in the past, she has done research on this type ordinance and knows that there are some successful laws in other parts of the country. There are numerous repeat offenders and their victims come through the DUI Victim program. Ms. Khoury encouraged the Council to establish a task force to look at available options and offered to serve and help gather information. Council Member Ferris Council Member Ferris said there would need to be evaluation especially with regard to the possibility that the vehicle being impounded might belong to someone other than the driver who might be unaware that the driver had a suspended drivers license. Tag violators are not usually a danger to others. Council Member Cole Council Member Cole expressed concern regarding the amount of time and what kind of money involved. It would not be good to have the Task Force return with recommendations and then have the Council determine the cost was too great. Before a task force is set up, the Council should determine the amount of cost it would be willing to back such as $10,000. Motion -- Knight moved that Council Member Kamen lead a citizen group in reviewing the matter and that recommendations be returned for Council consideration. Motion -- carried carried 7 to 0. APPOINTMENTS APPOINTMENT TO WICHITA PUBLIC BUILDING COMMISSION. One appointment (Kamen) for a term to expire June 30, 1997. Motion -- carried Knight moved that this Item be deferred two weeks. Motion carried 7 to 0. APPOINTMENT TO CIVIL RIGHTS AND SERVICES BOARD. One appointment (Cole) for a term to expire June 30, 1997. Motion -- carried Cole moved that this Item be deferred two weeks. Motion carried 7 to 0. APPOINTMENT TO WICHITA/SEDGWICK COUNTY ALCOHOL AND DRUG ABUSE ADVISORY BOARD. One appointment (youth - Council at large) for a term to expire June 30, 1997. Mayor Knight Mayor Knight asked that the City Manager check with the High Schools to see if there was someone interested in serving on the Board. Motion -- carried Ferris moved that this Item be deferred two weeks. Motion carried 7 to 0. APPOINTMENT TO CONVENTION AND TOURISM COMMITTEE. One appointment (Rogers) for a term to expire June 30, 1997. Motion -- carried Rogers moved that this Item be deferred two weeks. Motion carried 7 to 0. NOTICE OF VACANCY - SISTER CITIES ADVISORY BOARD. One vacancy (Gale), due to the resignation of Fran Lewis, for a term expiring June 30, 1997. Appointment will be made April 30, 1996. NOTICE OF VACANCY - BOARD OF ZONING APPEALS. One vacancy (Knight), due to the nonattendance of Doug Malone, for a term expiring June 30, 1997. Appointment will be made April 30, 1996. PROCLAMATIONS PROCLAMATIONS. -- Wichita-Berlin Friendship Force Days -- Wichita-Chaing Mai Friendship Force Days -- Take Our Daughters to Work Day -- Workers Memorial Day Motion -- carried Knight moved that the proclamations be authorized. Motion carried 7 to 0. CONSENT AGENDA Knight moved that the Consent Agenda, except Items 28(b), 31, and Addendum Item 39, 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 APRIL 15, 1996. At 10:00 a.m., Friday, April 12, 1996, pursuant to advertisements published, bids were received, publicly opened, read aloud and tabulated for the Board of Bids and Contracts: (Ref: Bid analysis report attached to Board of Bids Minutes April 15, 1996) PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION: SEWERS, PAVING AND WATER MAINS AS PER SPECIFICATIONS Hickory Creek from the north line of the plat to the south line of Lot 41, Block 2; Hickory Creek Court (Lots 4-18, Block 1) from the easterly line of Hickory Creek to and including the cul-de-sac; Hickory Creek Court (Lots 19-24, Block 1) from the south line of Hickory Creek to and including the cul-de-sac; Hickory Creek Court (Lots 1-9, Block 2) from the westerly line of Hickory Creek to and including the cul-de-sac; Hickory Creek Court (Lots 27-36, Block 2) from the west line of Hickory Creek to and including the cul-de-sac; Hickory Creek Court (Lots 37-40, Block 2) from the westerly line of Hickory Creek to and including the cul-de-sac; and Hickory Creek Court (Lots 1-9, Block 3) from the easterly line of Hickory Creek to and including the cul-de-sac; and Sidewalk along both sides of Hickory Creek or along one side of Hickory Creek and one walk around the entire lake in Reserve "A", Hickory Creek Estates Addition (south of 13th, west of 119th St. West). (472- 82676/763573/490460) Does not affect existing traffic. (Council approval date 01-23-96) (District V) Asphalt Construction - $429,381.40 Sewer Response Plan - Phase IIa Rehabilitation. (468-82584/621292/533240) Traffic to be maintained through construction. (Council approval date 07-18- 95) (District all) Municipal Pipe Tool - $260,221.50 Knight moved that the contract(s) be awarded as outlined above, subject to check, same being the lowest and best bid within the Engineer's construction estimate, and the Mayor be authorized to sign for the City. Motion carried 7 to 0. VARIOUS CITY DEPARTMENTS, BOARDS AND AGENCIES: MISCELLANEOUS AIR, FUEL AND OIL FILTERS AS PER SPECIFICATIONS Central Detroit Diesel-Allison, Inc. - AC 42A/57A-20 61% discount ESC. Net AND Central Detroit Diesel-Allison, Inc. - Alternate Bid Fram P$-F$-296G 51% discount ESC. Net GENERAL GOVERNMENT/OFFICE OF CENTRAL INSPECTION: DEMOLITION, REMOVAL OF STRUCTURES AND CLEAN-UP OF THE FOLLOWING FIVE GROUPS CONTAINING A TOTAL OF TWENTY-ONE (21) PROPERTIES (206334) AS PER SPECIFICATIONS Group 1 - Farha Construction - $7,950.00 (Total Net Bid) Group 2 - Farha Construction - $9,930.00 (Total Net Bid) Group 3 - Farha Construction - $6,065.00 (Total Net Bid) Group 4 - Cornejo & Sons, Inc. - $7,635.00 (Total Net Bid) Group 5 - Cornejo & Sons, Inc. - $10,695.00 (Total Net Bid) PUBLIC WORKS DEPARTMENT/FLEET & BUILDINGS DIVISION: DEMOLITION & OFFSITE REMOVAL OF FOUR (4) PROPERTIES (791343) AS PER SPECIFICATIONS Cornejo & Sons, Inc. - $13,660.00 (Total Net Bid) POLICE DEPARTMENT: AMMUNITION (083600) AS PER SPECIFICATIONS Group 1 - Precision Delta Corporation Item 1 - $105.00 Per M Option 1-per m deduct $10.00 Group 2 - Precision Delta Corporation Item 1 - $134.00 per M Option 1-per M deduct $18.00 Group 3 - Zero Ammunition Co., Inc. Item 1 - $89.90 Per M Option 1-per M deduct $32.00 Knight moved that the contract(s) be awarded as outlined above, same being the lowest and best bid. Motion carried 7 to 0. LICENSE APPLICATIONS APPLICATIONS FOR LICENSES TO RETAIL CEREAL MALT BEVERAGES. Renewal 1996 (Consumption on Premises) Isabel Salome Angela's Cafe* 10901 E. Kellogg New Establishment 1996 (Consumption off Premises) Candace Buckley Zip-EZE L.L.C. 1718 George Washington Blvd Special Event Jack L. Silvers Old Town Barbeque Cook-Off200 N. Mosley Colleen Gillen Kansas Newman College- 3100 McCormick Renaissance Faire*** *General Retailer--beer sales derive less than 50% of gross revenues. ***Located within 300 feet of a church/school. Motion -- Knight moved that the licenses be approved subject to Staff review and -- carried approval. Motion carried 7 to 0. PLANS AND SPECS. PLANS AND SPECIFICATIONS. a. Gravity Sewer to Replace Lift Station #17 (east of Broadway, south of Pawnee). (468- 82526/630681/533340) Does not affect existing traffic. (Council approval dated 07-18-95) (District III) b. Baehr Street from the north line of First Street to the south line of Second Street in Orchard Park Addition (south of Central, west of West Street). (472-82616/763276/490430) Traffic to be maintained through construction. (Council approval date 08-01-95) (District IV) c. St. Clair from Dora to Orient in South University Place Addition (south of Harry, east of Meridian). (472-82615/763268/490429) Traffic to be maintained through construction. (Council approval date 08-01-95) (District V) d. 1996 Contract Maintenance Chip Seal of asphalt streets at various locations. (131607/112000) Traffic to be maintained through construction. (Council approval date 01-23-96) (District all) 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., April 26, 1996. Motion carried 7 to 0. SUBDIVISION PLANS AND SPECIFICATIONS. a. Water Distribution System to serve Oak Ridge Addition (north of 29th Street North, west of Ridge). (448-88976/733063/470384) Traffic to be maintained during construction using flagpersons and barricades. (Council approval date 04-30-96) (District 5) Motion -- Knight moved that the plans and specifications be approved and the City Clerk be instructed to advertise for bids to be submitted to the Board of Bids and -- carried Contracts by 10:00 a.m., April 26, 1996. Motion carried 7 to 0. PRELIMINARY ESTIMATES PRELIMINARY ESTIMATES. a. Topaz Circle and Topaz Court serving Lots 1 through 19, Block 1, Oak Ridge Addition (north of 29th, west of Ridge) - $142,044.00. (472-82662/763532/490456) Does not affect existing traffic. (Council approval date 12-12-95) (District V) b. 29th Street North from the east line of Oak Ridge Addition to west line of Topaz Circle Oak Ridge Addition (1/2 mile west of Ridge Road) - $35,700.00. (472- 82663/763540/490457) Twenty-Ninth Street shall be closed during construction. (Council approval date 03-26-96) (District V) c. 29th Street North from the west line of Reflection Ridge 8th Addition to the west line of Lot 1, Block 4, Forset Lakes Addition (1/2 mile west of Ridge Road) - $40,000.00. (472-82316/763557/490458) Twenty-Ninth Street shall be closed during construction. (Council approval date 04-06-93) (District V) d. Westport from the west line of Windwood Addition to west line of Maize Road; Skyview from the south line of Windwood Addition to the south line of Westport; Lark Circle serving Lots 6 through 15, Block 3, from the north line of Lark Court to and including the cul-de-sac; Lark Court serving lots 17 through 27, Block 3, from the east line of Lark to and including the cul-de-sac, and; Lark from the north line of Westport to the north line of Lark court in Windwood Addition (south of 21st, west of Maize) - $306,000.00. (472- 82648/763524/490455) Does not affect existing traffic. (Council approval date 11-21-95) (District V) e. Main 18, Southwest Interceptor Sewer and Pump Station (#18) to serve an unplatted tract and Buckhead and Hickory Creek Estates Addition (south of 13th, west of 119th Street West) - $153,000.00. (468-82580/742585/480350) Does not affect existing traffic. (Council approval date 03-19-96) (District V) f. Lift Station and Force Main in connection with Laterals 1 and 2, Main 18, Southwest Interceptor Sewer to serve Hickory Creek Estates Addition (south of 13th, west of 119th Street West) - $108,120.00. (468-82561/742593/480351) Does not affect existing traffic. (Council approval date 01-23-96) (District V) g. Providing and Delivering 24" Rip-Rap for the Wichita-Valley Center Flood Control Project - Phase I (south of 85th Street North and west of Valley Center) - $400,000.00. (791335/435162) Does not affect existing traffic. (Council approval date 08-30-95) (District n/a) h. Water Line along Meridian from Maple Street to Caroline, Martha from Meridian to St. Clair, and Third Street from Meridian to St. Clair - $452,799.00. (448- 88997/634428/544442) Traffic to be maintained during construction using flagpersons and barricades. (Council approval date 07-18-95) (District IV) i. 27th Street North from Volutsia to Hillside - $140,000.00. (472-82620/617852/810040) Traffic to be maintained through construction using flagpersons and barricades. (Council approval date 08-08-95) (District I) j. 1996 Contract Maintenance Surface Milling and Asphalt Concrete Overlay of Arterial Streets, Phase II, at: Intersections of 21st N and Woodlawn; 21st N and Rock Road; and Kellogg and Rock Road - $141,420.00. (/132282/630418 (MH Adj)/112000) Traffic to be maintained through construction. (Council approval date 01-23-96) (District II) k. 48" Raw Waterline through the Little Arkansas River Floodway; Wichita-Valley Center Flood Control Project (east of Ridge Road, south of 85th St North) - $575,000.00. (448-88927/632372/544550) Does not affect traffic. (Council approval date 12-12-95) l. Storm Water Sewer #467 to serve Sunridge 2nd and 3rd Additions (south of 21st, east of 119th Street West) - $95,400.00. (468-82514/750737/485109) Does not affect existing traffic. (Council approval date 11-07-95) (District V) m. Storm Water Sewer #415 to serve Smithmoor Third Addition (south of Harry, west of Greenwich) - $88,480.00. (468-82118/750745/485110) Does not affect existing traffic. (Council approval date 05-21-91) (District II) n. Water Distribution System to serve Sunridge 2nd Addition, Phase 2 (south of 21st, east of 119th Street West) - $72,000.00. (448-88946/733014/470379) Traffic to be maintained during construction using flagpersons and barricades. (Council approval date 11-07-95) (District V) Motion -- Knight moved that the preliminary estimates be approved and filed. Motion -- carried carried 7 to 0. STATEMENTS OF COST STATEMENTS OF COST. a. (Final Statement of Cost) South Neighborhood Police Facility - 221 E. Pawnee - $538,464.70. (Less bonds previously issued $520,000.00); Bonds to be issued at this time - $18,464.70. (435-100/790691) b. (Final Statement of Cost) Intersection at 13th Street and McLean Blvd including modification of the 13th Bridge at the Big Arkansas River - $1944,215.00. (Less financing previously issued $1,890,000.00); Financing to be issued at this time - $54,215.00. (472-82233/715326/415-046) c. (Final Statement of Cost) MacArthur Road from east line of Seneca to 129.2 ft. east of east line of Waco - $497,562.00. (Less financing previously issued $475,425.00); Financing to be issued at this time - $22,137.00. (472- 81863/705079/405-060) d. (Final Statement of Cost) Webb Road from Harry to Kellogg and Webb Road Bridge over the KDOT Turnpike - $585,977.00. (Less financing previously issued $566,000.00); Financing to be issued at this time - $19,977.00. (472- 81863/705079/405-084) e. (Final Statement of Cost) 13th and Hillside Intersection - $105,000.00. (Less financing previously issued $105,000.00); Financing to be issued at this time - $.00. (472-81939/705251/405-079) f. (Final Statement of Cost) Brownthrush Park Improvements - $75,164.00 (Less Bonds previously issued $75,000.00); Bonds to be issued at this time - $164.00. (472- 82168/785089/440-039) g. (Final Statement of Cost) Buffalo Park Improvements - $30,468.00. (Less Bonds previously issued $28,000.00); Bonds to be issued at this time - $2,468.00. (/785345/440-065) h. (Final Statement of Cost) George Washington Bridge over Gypsum Creek - $224,684.00. (Less financing previously issued $215,000.00); Financing to be issued at this time $9,684.00. (472-82255/715201/415-034) Motion -- Knight moved that the Statements of Cost be approved and filed. Motion -- carried carried 7 to 0. SIDEWALK PETITION PETITION FOR SIDEWALK ALONG PARKRIDGE STREET IN PAWNEE MESA ADDITION (NORTH OF PAWNEE, WEST OF MAIZE). (District V) Agenda Report No. 96.00 The signature on the petition represents 100% of the improvement district. Sidewalks will be built along the primary street through Pawnee Mesa Addition, a single-family neighborhood. The project budget is $12,000. 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-96- 147 Resolution of findings of advisability and Resolution authorizing constructing sidewalk along both sides of Parkridge from the north line of Lotus to the north line of Lot 8, Block 3 (west side); and from the north line of Lotus to the north line of Lot 6, Block 6, Project No. 472-82708 (north of Pawnee, west of Maize) 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. Board of Appeals of Air Conditioning, Refrigeration, Warm Air Heating and Boilers, 03/28/96 Board of Appeals of Plumbers and Gas Fitters, 04/02/96 Board of Electrical Appeals, 03/12/96 Civil Rights & Services board, 03/18/96 Public Art Advisory Board, 03/14/96 Wichita Art Museum Board, 03/28/96 Wichita Commission on the Status of People with Disabilities, 03/27/96 Wichita Police & Fire Retirement System, 03/27/96 Motion -- carried Knight moved that the Minutes be received and filed. Motion carried 7 to 0. BOARDS ANNUAL REPORTS 1995 ANNUAL REPORTS OF ADVISORY BOARDS AND COMMISSIONS. Motion -- carried Knight moved that the Reports be received and filed. Motion carried 7 to 0. STREET CLOSURES/USES CONSIDERATION OF STREET CLOSURES/USES Agenda Report No. 96-322. 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) Law Enforcement Torch Run Date of event: May 31, 1996 Location: City Hall Street Closures: Main (Central to Third) (6:30 - 8:00 p.m.) 2) "Mars Attacks" Filming Date of event: Tuesday-Thursday, April 16-17-18, 1996 Location: 2800 North Hillside Street Closures: Hillside, 2800 block 3) Frankenstein, The Musical Date of event: Friday-Sunday, April 19-21, 1996 Location: Orpheum Theater Street Closures: Alley adjacent to Orpheum between Broadway & Topeka 4) Law Day Date of event: Friday, April 26, 1996 Location: City Hall Street Closures: Main Street, Central to Third (10 a.m. - 2 p.m.) 5) 1996 Olympic Torch Relay Community Event Date of event: May 17, 1996 Location: Public Parking Lot - Seneca and Stackman Drive Street Closures: None Inasmuch as possible, event sponsors are responsible for all costs associated with special events. Motion -- Knight moved that the request be approved subject to: (1) Event Sponsor notifying every property and/or business adjoining any portion of the closed street; (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. Item No. 28(b) Agenda Report No. 96-330. Mike Lindebak City Engineer reviewed the Item. Diamond Engineering has contracted with Southwestern Bell Telephone to accomplish the lowering of a conduit bank in advance of improvements in Oliver between 25th Street and K-96. The conduit bank lies under the east edge of the existing asphalt pavement. To accomplish the conduit lowering, it will be necessary to expose approximately 100 foot sections of the conduit at a time. The contractor is requesting the closure of Oliver to northbound traffic in the work area. The contractor has agreed to phase the work to reduce the impact to normal traffic movements. Phase I will involve the section of Oliver between 25th and 27th Streets. Phase II will involve the section of Oliver just north of 27th Street. Phase III will involve the section of Oliver between 29th Street and K-96. Work is scheduled to begin April 17 and each phase is estimated to take approximately two weeks, with completion expected by the end of May. The contractor is responsible for detour signing and construction barricades, and must maintain access to adjacent properties at all times. There is no cost to the City. During Phases I and II, northbound Oliver traffic will be detoured using 21st Street, Woodlawn and 29th Street. During Phase III, northbound Oliver will be detoured using 29th Street, Woodlawn and K-96. Motion -- carried Knight moved that the street closure be approved. Motion carried 7 to 0. PROPERTY ACQUISITION PAYMENT OF APPRAISERS' AWARD AND FEES -- LATERAL 128, MAIN 4, SS #23 PROJECT. Agenda Report No. 96-323. On September 20, 1995, the City filed eminent domain proceedings to acquire a sewer easement from property adjacent to Broadway and just south of 37th Street North. This easement is necessary for the construction of sewer improvements to serve property in the area. The easement is a 20 foot by 32.5 foot strip from the middle of a narrow strip of land on the west side of Broadway from 36th to 37th Streets. The court-appointed appraisers valued the easement taken at $500. The court awarded the appraisers fees in the amount of $500 each. Court costs are $66.50. The report of appraisers was filed March 22, 1996, and for the City to acquire the easement it is necessary for it to pay the award, costs and fees into the Clerk of the District Court on or before April 22, 1996. This award and the fees and costs will be charged against the sewer project which is to be paid 100% by special assessment. The City must pay the award, costs and fees into the court by April 22, 1996, in order to acquire the necessary right-of-way. Motion -- Knight moved that payment of the sum of $2066.60 to the Clerk of the District -- carried Court be approved. Motion carried 7 to 0. LEGAL SERVICES AGMT. AGREEMENT FOR PROFESSIONAL LEGAL SERVICES. Agenda Report No. 96-324. The City previously contracted with outside legal counsel to assist the Department of Law in the drafting and/or negotiation of the developer agreement and other agreements necessary for the project. Because of the numerous agreements and issues involved in the negotiation process, the amount of the previous supplemental contract has been reached making it necessary for another supplemental contract for professional services. Costs have exceeded the contract amount. Legal services by the firm will be coordinated with that of the Department of Law, bond counsel, other consultants, and City staff on an as needed basis. Compensation is based on an hourly rate and a not-to-exceed amount of $75,000. Previous funding for the contract was from the general fund appropriated reserves (Index Code 791376). This appears to be the most viable option for funding and it is suggested the same fund be utilized for the supplemental contract. Motion -- Knight moved that the Agreement be approved and the Mayor be authorized to -- carried execute. Motion carried 7 to 0. WELLS FARGO CONTRACT CONTRACT FOR WELLS FARGO GUARD SERVICES. (Item No. 31) Agenda Report No. 96-325. Kansas Law requires first conviction drunk drivers to be incarcerated for forty-eight hours and attend alcohol classes. In 1984, Municipal Court established the Wichita Intervention Program which combined both aspects in a setting outside of jail. It was the second intervention program in the nation. The program helps relieve the overcrowded jail, offenders pay for their incarceration, the program has the lowest recidivism rate in the State and City streets are safer. Under the Program, drunk drivers are confined at a motel. Security guards, working under the direction of a probation officer, provide supervision on a continuous basis. The guards do pat-downs, sort through luggage, prohibit visitors and perform hourly bed checks. The Contract extends the agreement with Wells Fargo guard services. Wells Fargo has contracted with the City since 1992. The proposed Contract does not change the rate charged by Wells Fargo, but only extends the length of the Contract through December 1996, with the option to renew under the same terms for an additional one year period. Wells Fargo charges $7.60 per hour. The entire cost is paid by offender fees. Council Member Ferris Council Member Ferris said contracts should not be automatically renewed without taking proposals every two to three years to allow anyone to participate. Motion -- Ferris moved that the Contract be approved and the Mayor be authorized to -- carried execute. Motion carried 7 to 0. 47TH STREET SOUTH AUTHORITY TO AWARD CONTRACT - COMMITMENT OF CITY FUNDS FOR 47TH STREET KDOT CONTRACT SOUTH, SENECA TO BROADWAY. (District IV) Agenda Report No. 96-326. The authorization document between the City and the Kansas Department of Transportation (KDOT) is for reconstructing and widening 47th Street South from Seneca to Broadway. On August 1, 1995, the City Council approved the project for construction and approved an agreement with KDOT to administer the project and provide 80 percent federal funding. The project is a part of the 1996 Capital Improvement Program (CIP No. MS-454, page 46). There is also an Agreement between the City and KDOT for construction engineering services. The existing roadway is an old, two-lane, county-type street that does not have sufficient capacity to meet peak traffic demand. The proposed improvements will provide four lanes of through traffic. Sidewalks will be installed along both sides of the street and the right-of-way will be landscaped. Bids for construction of the improvements were received on March 20, 1996. Cornejo & Sons, Inc. submitted the low bid of $1,368,095. In accordance with the Agreement entered into by the City and KDOT, the City's share of the cost is $281,828 and will be paid by General Obligation Bonds. KDOT will reimburse the City for 80 percent of the cost for construction engineering services which has an upper limit of $153,142. Motion -- Knight moved that award of the Construction Contract and payment of the City's share of the costs be approved; and the Construction Engineering Agreement be -- carried approved and the Mayor be authorized to execute. Motion carried 7 to 0. WATER PIPELINE PROJECT TO STABILIZE AND RELOCATE RAW WATER PIPELINE. Agenda Report No. 96-327. On May 23, 1995, the City Council approved an amendment to the 1995 Capital Improvement Program to add project W-550, 48 inch Raw Water Pipeline Protection. The authorized project expenditure for this project was $300,000. This project is required due to channel erosion in the Valley Center Floodway (south of 85th St. North), downstream from the point where the City's 48 inch raw water line crosses the Floodway channel. The erosion threatens to undermine the pipe and cause it to collapse. This project (W-550) provides for the stabilization and relocation of the 48 inch raw water line as it crosses the Valley Center Floodway. Engineering and design have been completed, providing for the most economical and reliable solution to the problem of protecting the 48" line. However, engineers and contractors who have examined the condition of the line have informed staff that construction expenditures will be higher than staff had anticipated in May of 1995, due to the severity of the channel erosion. On April 5, bids were received and the low bid was for $366,000. In order to proceed with this contract, the budget will need to be increased to $450,000 to allow for completion of the work, including design and inspection fees. Since the construction cost of the project will exceed available project funds originally approved by the Council on May 23, 1995, staff recommends a budget increase in the amount of $150,000. In order to avoid a net increase in the 1996 Water CIP budget, staff recommends making a corresponding decrease in the budget for project W-405, Gilbert-Mosley Water Supply Development. This project has a 1996 budget of $300,000, however no expenditures are anticipated for 1996, so the budget could be used for more pressing needs, such as the protection of the 48" line. Amendments to the CIP must be approved by the City Council. Motion -- Knight moved that the revised project budget authorization be approved and the -- carried Water CIP for 1996 be amended. Motion carried 7 to 0. YMCA AGREEMENT AGREEMENT WITH YMCA FOR SCHEDULING OF SOFTBALL FIELDS. Agenda Report No. 96-328. The Department of Park and Recreation proposes to extend for one additional year an agreement with the Y.M.C.A. wherein the Park Department assumes maintenance and scheduling responsibilities of softball fields located on land owned by the Y.M.C.A. and known as Garvey Park in southeast Wichita. An agreement approved by City Council in 1995 with the Y.M.C.A. allowed the City of Wichita exclusive use of the Y.M.C.A.'s softball facilities at their Garvey Park location for a one-year period. The Park Department proposes that this agreement be renewed for another year, from April 16, 1996 to October 31, 1996. These softball facilities include softball diamonds, spectator area, rest rooms, parking lot, lights and irrigation system. The City of Wichita will have authority to schedule adult softball league and tournament play during that period of time and retain all revenues from team/league play. The City of Wichita will be responsible for custodial and ground maintenance of the softball facilities. This agreement is for softball facilities only and does not include operation and maintenance of the swimming pool at Garvey Park. Maintenance and personnel costs at this facility for the term of the agreement are estimated at $24,000. Offsetting revenues to be realized through team/league fees are estimated at approximately $30,000. Motion -- carried Knight moved that the agreement be approved. Motion carried 7 to 0. CONDEMNATIONS REPAIR OR REMOVAL OF DANGEROUS & UNSAFE STRUCTURES. Agenda Report No. 96-329. On April 1, 1996, the Board of Code Standards (BCSA) held a hearing on the following seven (7) properties. These properties are considered dangerous and unsafe structures, and are being presented to schedule a condemnation hearing before the Governing Body. Improvement notices have been issued on these structures, however, compliance has not been achieved. Pre- condemnation and formal condemnation letters were issued and the time granted has expired. No action has been taken to repair or remove the following properties. Property Address Council District (1) 533 N. Hydraulic 1 (2) 925 N. Ohio 1 (3) 925 1/2 N. Ohio 1 (4) 1061 N. Ohio 1 (5) 1501 N. Pennsylvania 1 (6) 1432 N. Emporia 6 (7) 3889-93 E. Roseberry 3 These structures have defects that under Ordinance No. 28-251 of the Code of the City of Wichita, shall cause them to be deemed as dangerous and unsafe buildings, as required by State Statute for condemnation and consideration. Motion -- Knight moved that the resolutions placing this matter on the agenda for a Hearing -- carried before the Governing Body on June 4, 1996, be adopted. Motion carried 7 to 0. RESOLUTION NO. R-96- 139 A Resolution fixing a time and place and providing for notice of a hearing before the Governing Body of the City of Wichita, at which the owner, his agent, lienholders of record and occupants of the structure located on land described as: Lot 3, Hardy Addition to Wichita, Sedgwick County, Kansas, known as 533 North Hydraulic in said City may appear and show cause why such structure should not be condemned and ordered repaired or demolished as a dangerous or unsafe structure, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. RESOLUTION NO. R-96- 140 A Resolution fixing a time and place and providing for notice of a hearing before the Governing Body of the City of Wichita, at which the owner, his agent, lienholders of record and occupants of the structure located on land described as: Lots 25 and 27, on Ohio Avenue, in Moore's Addition to Wichita, Sedgwick County, Kansas, known as 925 North Ohio in said City may appear and show cause why such structure should not be condemned and ordered repaired or demolished as a dangerous or unsafe structure, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. RESOLUTION NO. R-96- 141 A Resolution fixing a time and place and providing for notice of a hearing before the Governing Body of the City of Wichita, at which the owner, his agent, lienholders of record and occupants of the structure located on land described as: Lots 25 and 27, on Ohio Avenue, Moore's Addition to Wichita, Sedgwick County, Kansas, known as 925 ½ North Ohio in said City may appear and show cause why such structure should not be condemned and ordered repaired or demolished as a dangerous or unsafe structure, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. RESOLUTION NO. R-96- 142 A Resolution fixing a time and place and providing for notice of a hearing before the Governing Body of the City of Wichita, at which the owner, his agent, lienholders of record and occupants of the structure located on land described as: odd Lots 41 through 47, inclusive, in Wabash Addition to Wichita, Sedgwick County, Kansas, known as 1061 North Ohio in said City may appear and show cause why such structure should not be condemned and ordered repaired or demolished as a dangerous or unsafe structure, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. RESOLUTION NO. R-96- 143 A Resolution fixing a time and place and providing for notice of a hearing before the Governing Body of the City of Wichita, at which the owner, his agent, lienholders of record and occupants of the structure located on land described as: Lots 16 and 18, on Orange Avenue, now Pennsylvania Avenue, in Milford's replat of Lots 1 to 29 inclusive on Union Avenue to Wichita, Sedgwick County, Kansas, known as 1501 North Pennsylvania in said City may appear and show cause why such structure should not be condemned and ordered repaired or demolished as a dangerous or unsafe structure, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. RESOLUTION NO. R-96- 144 A Resolution fixing a time and place and providing for notice of a hearing before the Governing Body of the City of Wichita, at which the owner, his agent, lienholders of record and occupants of the structure located on land described as: Lot 31, and the south 16 feet of Lot 33, on Emporia Avenue, Eagle Addition to Wichita, Sedgwick County, Kansas, known as 1432 North Emporia in said City may appear and show cause why such structure should not be condemned and ordered repaired or demolished as a dangerous or unsafe structure, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. RESOLUTION NO. R-96- 145 A Resolution fixing a time and place and providing for notice of a hearing before the Governing Body of the City of Wichita, at which the owner, his agent, lienholders of record and occupants of the structure located on land described as: Lot 9, except that part lying southeasterly of a line 65.29 feet northwest of the southwest corner and extended northeasterly, parallel to the northwest line, to the northeasterly line, Block F, Planeview Subdivision No. 1, being a subdivision in Section 2, Township 28 South, Range 1 East of the 9th P.M. Sedgwick County, Kansas, known as 3889-93 East Roseberry in said City may appear and show cause why such structure should not be condemned and ordered repaired or demolished as a dangerous or unsafe structure, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. CLAIMS FILED REPORT REPORT ON CLAIMS FILED. Leota Trippel $ 56.48 Shawn Tremblay 158.16 Kenneth Holmes 200.00 R. J. Reiley III 1,175.49 Barbara J. Pope 80.00 Richard Thomas 195.00 Randi Benefiel 2,305.50 Motion -- carried Knight moved that the Report be received and filed. Motion carried 7 to 0. ORDINANCES SECOND READING ORDINANCES. (First Reading April 9, 1996) a. Moore (1st to 2nd). ORDINANCE NO. 43-129 An Ordinance levying assessments on lots, pieces, and parcels of land in the City of Wichita, Kansas, for the purpose of paying a portion of the cost of improving Moore Avenue from 1st to 2nd Streets North; and necessary transitions (Old Town Phase III, Part 1), 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. (472-82486/762674/490-370) b. Wichita Airport Authority/Wichita Employees' Retirement Plans. ORDINANCE NO. 43-130 An Ordinance amending Sections 2.28.010, 2.28.100, 2.28. 110, 2.28.200, 2.28.290, 2.28.300, 2.28.500, 2.28.530, and 2.28.550 and creating Sections 2.28.087 and 2.28.265 of the Code of the City of Wichita, Kansas, pertaining to definitions, termination of employment, death benefits and survivor's annuities, contributions and distribution of vested accounts, and providing special provisions for airport safety officers employed by the Wichita Airport Authority, all relating to the Wichita Employees' Retirement Plans, and repealing the originals of said Sections, 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. c. Position Classifications. ORDINANCE NO. 43-131 An Ordinance establishing position classifications for employees of the City of Wichita and prescribing pay rates by reference to position classifications in the schedule of pay ranges repealing Ordinance No. 42-973, 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. d. Z-3181. ORDINANCE NO. 43-132 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-Z-3181 e. Police and Fire Retirement Systems. CHARTER ORDINANCE NO. 161 A Charter Ordinance of the City of Wichita, Kansas, amending Sections 3 and 21 of Charter Ordinance No. 131 of the City of Wichita, Kansas, pertaining to definitions and Plan A and C-79, and amending Section 2 of Charter Ordinance No. 154 of the City of Wichita, Kansas, pertaining to distribution of benefits, all related to the Police and Fire Retirement System of the City of Wichita and repealing the originals of said sections, 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. ORDINANCES FIRST READING ORDINANCES. Motion -- Knight moved that the following Ordinance be placed on first reading. Motion -- carried carried 7 to 0. ORDINANCE An Ordinance Making a special assessment to pay the cost of unpaid sewer service charges and/or water service charges in the City of Wichita, introduced and under the rules laid over. (Addendum Item 39) BROADVIEW PARKING BROADVIEW PARKING FACILITY PURCHASE AGREEMENT. Agenda Report No. 96-332. On January 30, 1996, the City Council approved the issuance of a Letter of Intent to Historic Hotel Partners of Wichita, L.P. ("HHP") relating to the acquisition and renovation of the Broadview Hotel, including the acquisition by the City of the parking garage located across Waco Street from the hotel, financed by special assessments levied against the hotel property. On April 9, 1995, the City Council approved the management contract for operation of the garage by HHP, also provided for by the Letter of Intent. City staff and HHP have negotiated the terms of a real estate purchase agreement for the acquisition of the parking garage. The purchase agreement provides the legal framework for the transaction, stipulating the purchase price, closing date and conditions, warranties and representations, proration of taxes, title insurance, etc. It also includes provisions governing the purchase option and the right of first refusal granted to HHP, as agreed to in the Letter of Intent. In addition, the City consents to contingent assignment of the right of first refusal and purchase option, as well as HHP's rights under the management agreement, to the hotel's mortgage lender. The acquisition of the parking garage by the City is to be financed with general obligation bonds paid by special assessments levied against the Broadview Hotel property, pursuant to a special benefit district petition and resolutions already approved by the Council. The City's outside counsel, Mert Buckley of Adams, Jones Robinson & Malone, has participated in the drafting and negotiation of the real estate purchase agreement. The City Attorney's office has reviewed the agreement and approved it as to form. The resolution authorizes the issuance of general obligation bonds in the amount not-to-exceed $1,620,000. Council Member Ferris Council Member Ferris reviewed the Item. Motion -- Knight moved that the parking garage purchase agreement be approved and the Mayor -- carried be authorized to sign; and the Resolution be adopted. Motion carried 7 to 0. RESOLUTION NO. R-96- 148 A Resolution approving the initiation of a project to acquire a parking garage and declare it to be the intention of the City to issue General Obligation Bonds in an amount not to exceed $1,620,000.00 to pay all or a portion of the costs of such project, presented. Knight moved that the Resolution be adopted. Motion carried 7 to 0. Yeas: Cather, Cole, Ferris, Gale, Kamen, Rogers, Knight. EXECUTIVE SESSION Motion -- Knight moved that the Council recess to executive session to consider consultation with legal counsel on matters privileged in the attorney-client relationship relating to pending litigation and legal advice, and preliminary discussions relating to the acquisition of real property for public purposes, and the regular meeting be resumed at 1:30 p.m. in the City Council Chambers. Motion -- carried carried 7 to 0. RECESS Council recessed at 12:50 p.m. and reconvened in regular session at 1:39 p.m. Motion -- Knight moved that, as a result of the executive session, an Item be taken up off -- carried the Agenda. Motion carried 6 to 0. (Kamen absent) OFF AGENDA ITEM ELECTRIC RATE MATTERS. Council Member Kamen previously declared a conflict of interest on this Item and was not present to participate on this Item. Motion -- Knight moved that the City Council authorize the following actions involving electric rate matters: 1) That the City follow up on its intervention in KGE's pending electric rate case before the Kansas Corporation Commission. The City Attorney should use the assistance of staff and consultants to file testimony making a case for supporting additional reductions in electric rates. 2) That the City Attorney, staff, and consultants study the impact on Wichita of on-going and future merger activities involving KGE and Western Resources and report back to Council at the appropriate time with their results and recommendations. Mayor Knight Mayor Knight said City Staff is being authorized to follow up on its earlier decision to intervene in the KGE rate adjustment case before the Kansas Corporation Commission. It will do so by filing a comprehensive independent rate analysis case of its own. The City congratulates KGE's proposal to reduce future electric rates; however, this action will allow the City of Wichita, which spends on behalf of tax payers, $10,000,000 each year on electrical rates, to present its own analysis of the rate decrease. This will ensure that electric rates in Wichita will be as low as possible and that Western Resources continues to be a strong viable company. Since this is a very complicated rate case, the City, like KIRB and the Kansas Industrial customers and the others who are intervening in this case, has hired its own consultants to exercise its due diligence to the tax payers and to ensure citizens that the rate decrease will provide everyone with the greatest possible benefit. The consultants will provide the City and its citizens with an independent analysis which will help them fully understand the implications of the proposed rate adjustment. The Kansas Corporation Commission staff also will be filing its own independent analysis. All of these studies ultimately will be brought before the full KCC to help the commissioners make their final decision about whether Western Resources KGE electric rate rate decrease is sufficient or should be larger. The City Council also is instructing staff to have its consultants study Western Resources proposed apparently hostile takeover bid of Kansas City Power and Light. Four years ago, Western Resources, which owns Kansas Power and Light, acquired KG&E. That merger resulted in a significant electric rate disparity which has persisted ever since. That rate disparity has caused the citizens of Wichita and the KG&E rate paying area to pay hundreds of millions of dollars more in utility rates than the citizens and companies in the KP&L service area. The Council has voted to hire the consultants to make sure that the proposed takeover of KCPL imposes no new burdens on the citizens of Wichita and offers a potential for positive growth in Wichita and throughout the State of Kansas. -- carried Motion carried 6 to 0. (Kamen absent) Motion -- carried Knight moved that an Item be taken up off the Agenda. Motion carried 6 to 0. (Kamen absent) OFF AGENDA ITEM SNAP-IT PROGRAM. Mayor Knight Mayor Knight said he had received calls regarding the Snap-It Program in which handicapped people have received tickets for being parked illegally. Mayor Knight asked that the City Manager initiate a review of activity subsequent to the time of implementation of the Snap-It Program. Handicapped persons are not asking to be relieved from paying the tickets but that there be flexibility as to how the tickets are paid and, perhaps, a mechanism to make payments on the tickets. "For whatever reason, they have been advised by the courts that we have left them no latitude." Mayor Knight instructed Cathy Holdeman from the City Manager's Office to report to the City Manager that the Council would like a review of the matter and some immediate assistance in the judges working through some of the financial difficulties of some of the handicapped persons. There should be the sense that if there are mitigating circumstances, the City can be responsive; and if payments have to be made over a period of time - so be it. Council Member Rogers Council Member Rogers said he had no problem with making adjustments in the way the fine is paid but it should be kept in mind that the intent was to keep from having the fines eliminated in such an arbitrary way. Council Member Cather Council Member Cather suggested the City Manager visit with Hank Blaze on this matter. Council Member Cole Council Member Cole said she is unwilling to let anyone think there are going to be major changes but arrangements might be made for some to make payments. Mayor Knight Mayor Knight asked Council Members Cather and Cole to continue to be willing to work on this matter giving attention to those who have no money. Motion -- Knight moved that there be a review of this matter to see what the effect of the Program has been in the last four to five months, that some attention be given to handicapped people who have no money, and that Council Members Cather and Cole -- carried continue in a leadership role. Motion carried 6 to 0. (Kamen absent) ADJOURNMENT The City Council meeting adjourned at 1:50 p.m. Pat Burnett Deputy City Clerk COUNCIL PROCEEDINGS JOURNAL 161 APRIL 16, 1996 Page 7