City Council Meetings

Page 1 CITY COUNCIL PROCEEDINGS APRIL 20, 2021 MINUTES OF THE MEETING OF THE CITY COUNCIL Wichita, Kansas, April 20, 2021 Tuesday, 09:00 AM The City Council met in regular session with Brandon Whipple, Jeff Blubaugh, Becky Tuttle, Bryan Frye, Jared Cerullo, and Cindy Claycomb. Absent: Brandon Johnson. Staff Members Present: Bob Layton, City Manager, Jennifer Magana, City Attorney, and Karen Sublett, City Clerk. Mayor Whipple called the meeting to order at 9:00 a.m. Approve the minutes of regular meeting on April 13, 2021 MOTION: Mayor Whipple moved to approve the minutes of regular meeting on April 13, 2021. Motion carried 6 to 0, (Absent: Johnson). The following Proclamation was read aloud by Mayor Whipple: National Crime Victims Week I) PUBLIC AGENDA 1.) Randy Mullikin - Homeless Campsites and Accumulation of Trash Along the Arkansas River. Randy Mullikin 1302 N. Minisa, stated he represents the average citizen and homeowner here in Wichita and looks for government to be responsive to act on the needs as they arrive and to fulfill the duties that they have been assigned to. Stated he is here to address what he believes has been an insufficient response by the City to homeless campsites that have appeared along the Arkansas River through Central to 13th Street north. Stated his home is in Indian Hills, which is adjacent to the west river bank, south of 13th Street. Stated over the last three years there has been a steady increase in the number of these homeless camps that are parallel to the river and one of the reasons he thinks this is happening is because there is a lot of trees and foliage that provides some kind of concealment for these camps and is also located near the downtown corridor, which contributes to that. Stated correspondingly there has been an increase in the amount of household garbage that appears along the river bank as a result of these campsites. Stated he believes this stems from homeless people foraging through local residential trash cans looking for food. Stated he believes the increase in this garbage and campfires that occur from time to time, are a public safety. Stated he has communicated his concerns on a few occasions to Council Member Claycomb and to Chief Ramsay but to date, does not think there has been an organized or long-term solution to deal with this particular issue. Stated he recognizes that homelessness has greatly expanded from his own experience years ago as a police officer for the City and to combat this issue, the City must undertake steps to provide for reasonable access for lodging and food to those who are unable to provide for themselves. Stated this is strictly not an enforcement issue, pushing these people around is not going to  Page 2 CITY COUNCIL PROCEEDINGS APRIL 20, 2021 solve the problem and realize there are going to be some people who are not willing to participate in the programs that have been put into place but it is not an answer and there needs to be more done for the homeless. Stated he also believes that the City must ensure that homeowners living in this corridor has a quality of life equal to those living out in the suburbs, which requires that the City is going to need to provide much more oversight and enforcement to this area to eliminate the campsites and deal with the refuse that has been left behind. 2.) Michael McCorkle - Creation of a Wichita Sustainability Board. (Vice Mayor Johnson arrived at 9:11 a.m. and took his seat at the bench) Michael McCorkle stated our planet is facing a global climate change emergency which has not received enough attention in our local media. Stated we are at a time in history where everyone with any insight of the climate crisis that threatens our daily lives, our future prosperity, and the next generation's future, must speak out. Stated he cares about the future for all children and future generations and for too long our government leaders have failed the people who elected them when it comes to addressing this existential crisis threatening everyone's future, especially those who will be alive after 2050; climate change is real. Stated here in Wichita we have seen our traditional weather patterns change and most people see how climate change is changing the natural balance of our planet. Stated the chorus of voices raising the alarm of global climate change is growing in number and volume every day and asks our elected leaders to stand on the right side of history to use the power and authority of your office to take immediate action to protect Wichita's prosperity for future generations and urges all citizens who share his concern to contact their City representatives about the immediate need for the City to address climate change by developing a sustainability plan now and not later. Stated one month ago at the March 16th Council Meeting, we urged this Council to address this critical issue to release for public view, any ongoing sustainability study efforts from the City Manager's inconsistent answers and post-meeting reports of urging communication of WSU's Environmental Finance Center; it does not seem that much progress has been made on this critical issue up to now. Stated last week, others also asked the City Council to take action on climate change; we will continue to address this issue because you are failing us by not acknowledging the dire consequences of not taking action to protect Wichita's prosperity. Stated the most important action that every city must do to begin addressing its impact on the natural environment, is to develop an environmental sustainability plan. Council Member Tuttle stated the speaker said that on the March 16th meeting staff gave an update on the Sustainability Plan and asked the City Manager to give a brief update on where we are with that. Bob Layton City Manager stated we have conducted part of two studies or evaluations of our environmental work to date and received those score cards from national groups and recognize that we have a lot of work to do in order to improve our score and address issues of sustainability. Stated as a result of that, we have contracted with WSU to give us a series of recommendations on how to address the issues that came out of those surveys and scoring systems that they used. Stated that work is to be completed by the first quarter of next year and is fairly extensive in terms of what they will be doing for us. Stated he is glad to share the scope of that contract with anyone that wants it and has already had some people ask for that. 3.) Cristobal Patino - Homeless and Public Transit. (NO SHOW)  Page 3 CITY COUNCIL PROCEEDINGS APRIL 20, 2021 4.) Tremaine Longar - City Meters Accepting All Forms of Currency. Tremaine Longar stated he is asking for the city meters to accept all forms of currency and recently returned from Washington, D.C. where you can pay with any kind of currency that you have. Stated he is asking for a building space and donations for a Christian group, the Wichita City Christian Group, which they are planning to start. Stated they are planning on doing exercises, City cleanup activities, clerical activities, and spiritual Christian programming. Stated they will also be doing trash pickup and will need help with funding for that. Stated they want to hold weekly award ceremonies where they can award people for their good awards like honor roll students, trophy winners and people who do good deeds. Stated he wants to thank his grandma Norma Longar who gave him a special apology for feeding him the apple of the tree of knowledge when he was an infant, not knowing he was allergic to apples. Stated it is heavenly to have a grandma that loves him so much and to her and her friends, well done. Stated it is important to have church and government not be separated and with your donations, we will be able to further prove our allegiance to our U.S. flag of America, Lady Justice and all the good law abiding people, presidents and royalties of the world; such as President Biden, Prince Phillip, Queen Elizabeth and Jesus Christ. Stated we will also be having adult leisure time where we share drinks and food, drawings and raffles, and clothing lines and fine linens to help promote our businesses to give us new clothes of righteousness. Stated when it becomes legal, we want to do other things like legalizing marijuana and maybe have smoke outs and coffee and will need donations for that too. Stated we are asking for security, time, buildings, products, money, people and good word of mouth and volunteers to help us. Mayor Whipple thanked Mr. Longar for his work in cleaning up the City and picking up cigarette butts. II) CONSENT AGENDA ITEMS 1 THROUGH 10 MOTION: Mayor Whipple moved to approve consent agenda items 1 through 10 in accordance with the recommended actions shown thereon. Motion carried 7 to 0. COUNCIL BUSINESS III) BOARD OF BIDS AND CONTRACTS 1.) Report of Board of Bids and Contracts dated April 19, 2021. Attachment: 04-19-2021 Board of Bids.pdf Hannah Lang, Finance Department, presented the items. MOTION: Mayor Whipple moved to receive and file report, approve the contracts and authorize the necessary signatures. Motion carried 7 to 0.  Page 4 CITY COUNCIL PROCEEDINGS APRIL 20, 2021 2.) Wichita Airport Authority Report of Board of Bids and Contracts dated April 19, 2021. Attachment: 04-19-2021 Board of Bids WAA.pdf MOTION: Mayor Whipple moved to receive and file report, approve the contracts and authorize the necessary signatures. Motion carried 7 to 0. IV) PETITIONS FOR PUBLIC IMPROVEMENTS 1.) Petitions for Public Improvement Attachment: Petitions for Public Improvements.pdf Attachment: Resolution 21-125 012409.docx Attachment: Resolution 21-126 085721.docx Gary Janzen, Public Works Engineering, presented the item. MOTION: Mayor Whipple moved to approve the revised petitions and budgets, adopt the amending resolutions, and authorize the necessary signatures. Motion carried 7 to 0. V) UNFINISHED COUNCIL BUSINESS - NONE VI) NEW COUNCIL BUSINESS 1.) PUBLIC HEARING AND REQUEST FOR LETTER OF INTENT FOR MULTIFAMILY HOUSING REVENUE BONDS, WICHITA RAD SENIOR L.P. (DISTRICT VI) Attachment: Agenda Report No. VI-1.doc Attachment: Resolution 21-123 Tim Goodpasture Office of Economic Development, presented the item. Council Member Blubaugh stated he needs to better understand how this works; it is a private development company that is partnering with the City? Tim Goodpasture, Office of Economic Development stated yes. Council Member Blubaugh stated the property taxes on these properties will remain off the tax rolls. Tim Goodpasture, Office of Economic Development stated they will.  Page 5 CITY COUNCIL PROCEEDINGS APRIL 20, 2021 Council Member Blubaugh asked if we have an estimate of what that amount would be in property taxes. Tim Goodpasture, Office of Economic Development stated he does not. Bob Layton City Manager stated it would probably be a contrived number because these properties have never been on the tax rolls, they have always been public housing. Sally Stang Director of Housing and Community Services stated the properties have never been on the tax rolls, they are subject to a payment in lieu of taxes equivalent to what they call the Shelter Rent, which is 10% of what the residents pay for their portion of the rent, less the utility use expenses and that amount per the cooperation agreement is what is paid to the county in lieu of taxes. Council Member Blubaugh asked if this is something that we have done in the past, where we have had a private developer come in there and benefit from them without paying the property taxes. Sally Stang Director of Housing and Community Services stated no not related to public housing but yes there are other low-income housing projects that can apply for tax exemption based on the nature of providing affordable housing. Council Member Blubaugh stated historically this is the first one we have done. Sally Stang Director of Housing and Community Services stated yes with property owned by the housing authority. Council Member Frye stated this is a project that we have been working on for several years and there have been a lot of hurdles we have had to clear to get really creative and appreciates staff's dedication on this because we know our public housing stock has needed this for some time. Stated what is the timeline, what happens next, when do we start construction and when can we see these finished projects. Sally Stang Director of Housing and Community Services stated right now we are at a tentative closing date of July 26th, we have to get the bond issuance, the bond proceeds, the tax credits, the T21D4, plus all the soft financing together and at closing, construction will start on Rosa Gregg and Bernice Hutcherson in the vacant units that are there, those properties will be rehabbed in three phases and only require the residents to move just once from a non-rehabbed unit into a fully rehabbed unit at the site where they are located now. Stated shortly after closing, we will start relocating residents in the tower at McLean Manor to Greenway Manor; we have enough vacant units in Greenway due to the delays in the program to move the McLean residents into Greenway. Stated construction will begin on McLean Manor and will take about 10 months and all of those residents will be housed at Greenway. Stated once those units of rehabbed is complete, we will move the McLean Manor residents back to Mclean and offer any remaining Greenway Manor residents if they would like to be transferred from Greenway to either the Rosa Gregg or Bernice Hutcherson garden apartments or to McLean Manor, at their discretion they can do that or we will temporarily relocate them into private units in the community while the construction on Greenway Manor happens which will also take approximately 10 months. Stated we are looking at mid-2023 before all units are completed. Mayor Whipple stated a 99-year lease to a company in Ohio that has offices in Ohio and Pennsylvania; do they have an office here?  Page 6 CITY COUNCIL PROCEEDINGS APRIL 20, 2021 Sally Stang Director of Housing and Community Services stated they do not have an office here. Stated the 99-year ground lease is actually with the limited partnership for which the Housing Authority is the 51% member. Stated there is a partnership with KBK for the general partnership and then there is a limited partnership, which the general partnership is a member and the investment partner is a member. Stated what is written into that partnership agreement is after the 15-year compliance period, the Housing Authority will have the option to get the properties back, the improvements, because that is what we are financing. Stated we still own under the ground lease the land and the buildings but we are financing those improvements and can come back to us at a dollar over any debt that remains on the property at that time. Mayor Whipple stated what if the improvements are not up to standard, who would the tenants complain to or bring up these concerns to. Stated if there is no office here, are we at the City the ones who would take those concerns and then relay it to the company in which they would now make improvements or investments. Sally Stang Director of Housing and Community Services stated they will not be operating the properties once the construction is complete, they will actually pull out of the general partnership after stabilization and the City will be ultimately responsible but we were required to conduct an RFP, to select a management company. Stated the City has no experience in managing tax credit properties and per the tax credit regulations and the investor’s requirements, the management agent actually has to have five years’ experience managing tax credit properties. Stated we conducted that RFP and selected Mennonite Housing, one of our non-profit housing partners in the community will be doing the day to day management of the properties. Bob Layton City Manager stated we are the majority partner and we will not sign off on the improvements until they meet our standards and meet standards imposed by HUD. Vice Mayor Johnson thanked Sally Stang; this has been a long process and appreciates her and her team and getting us to this point and is looking forward seeing the renovated housing structures. Mayor Whipple stated all four of these apartments are located in the same area; are there other towers throughout the City that we own that would fall under this program. Sally Stang Director of Housing and Community Services stated the only remaining properties that we own that are public housing are all single-family homes and there are 352 of them. Stated we are working vigorously with HUD for a repositioning strategy and at this point are looking to work with our agency non-profit and for-profit developers to submit a Section 18 application for demolition disposition of properties as appropriate in hopes to replacement housing in the future. Stated we will hopefully be able to dispose of an existing unit to a partner who is willing to keep it affordable housing; we will get a tenant protection voucher for that unit, which is another unit of affordable housing and then do one per one replacement in the future. Stated this is just a strategy to take one affordable unit and hopefully turn it into three. Mayor Whipple inquired whether anyone from the audience wished to speak; no one came forward. Council Member Claycomb stated she has toured these and these improvements are much needed.  Page 7 CITY COUNCIL PROCEEDINGS APRIL 20, 2021 MOTION: Council Member Claycomb moved to close the public hearing, adopt the Resolution of Intent and authorize the necessary signatures. Motion carried 7 to 0. 2.) RENNICK AND RENNICK 2ND ADDITION DEVELOPER’S AGREEMENT. (DISTRICT VI) Attachment: Agenda Report No. VI-2 Attachment: Agreement.pdf Gary Janzen Public Works Engineering Council Member Frye stated he appreciates the flexibility we are giving with the criteria, sometimes lowest price isn't always the best for business especially as schedules end up costing with delays and so forth and asked if this is something we could ever change as it relates to our bid packages and start looking at these types of alternatives for City projects or do we always have to stay lowest bid? Gary Janzen Public Works Engineering stated we made some changes recently within our projects allowing some flexibility and what we mostly did was to look at the experience side. Stated we recently added some language working with the Law Department and it was a result of we have numerous contractors that were bidding on projects that we had never seen them do any work for the City before. Stated that is fine, we want to promote people wanting to own and run their own business but we have to be cautious too whether they have the ability to build the project because we are starting to have some issues. Stated even when you have things in place like liquidated damages that cover our costs if they go beyond the allotted time, that doesn't do a lot to help the developer. Stated we started to see some quality control issues, all projects are bonded so the contractor is responsible to come back but that can also have a negative impact on development on that point in time. Stated we do have some language in our bid documents now that allow us to vet out contractors based on initial experience which helps. Stated our long-term goal is to look at more of a performance based bidding so that we can reflect previous performance on projects within the bid and thinks we are getting closer to that. Council Member Blubaugh stated basically the developers using his own money to do this rather than using the money out of the CIP and then will reimburse it after the fact, so that the City is not having to fund this and we are not having to change around priorities. Gary Janzen Public Works Engineering stated all of this is special assessment funding and not through the CIP. Stated this is no different than any standard residential development and could be commercial too, anything we special assess, this will still be special assessed. Stated they have submitted petitions to cover the costs, the developer does have to fund the work up front initially to pay the contractor but that will submit monthly invoices to us, we will pay them and then ultimately through bond sale assess it to the developer so none of that part changes on how the project is financed. Council Member Blubaugh stated we generally have an allocation or estimate of how much we spend on each year and this is a way for a developer to get projects rather than waiting in line for the infrastructure to get in there, they just pay for it themselves.  Page 8 CITY COUNCIL PROCEEDINGS APRIL 20, 2021 Gary Janzen Public Works Engineering stated actually not, there are parts of that, that get a little bit tricky related to whether we've got to extend water and sewer mains, which is the only part where people might have to wait. Stated otherwise, this is at the developer's will, when they are ready to go and their petitions have been approved by Council, they submit a required letter of credit, we get the projects bid and they start construction; none of that changes. Stated this is just a different method for procuring the design consultant of the contractor, otherwise everything else stays the same. Council Member Blubaugh asked what the benefit is in this method if it is not to get things done faster. Gary Janzen Public Works Engineering stated the first time a developer tried to do this, they found it to be pretty cumbersome and we went back to the normal process of bidding the projects; what we have been asked for from the development community working closely through WABA for several years, the developers themselves want to have a contractor working for them. Stated they feel like it gives them the ability to schedule things a little bit differently, they feel like they can face things a little bit differently working with their builders if they want to. Stated he is not sure if it makes that big of a difference but we wanted to provide that flexibility, they asked for an alternative way to approach these projects and thinks it makes sense to allow them to. Stated we have only done this twice and is anxious to see how this works on a residential development because he does not know if it will benefit them a lot or not but there really is no down side to allowing this process. Council Member Blubaugh stated it is more for a hands on management versus some kind of financial part. Gary Janzen Public Works Engineering stated yes, the financial part does not change and the development will end up costing them more because they have costs on their side to manage the contractor and a consultant and have temporary financing also waiting for the City to pay them back. Stated this is almost entirely driven by the developer's interest to control schedules and to work directly with the contractor. Council Member Blubaugh asked if the special assessment makes the developer whole on everything or do they have some input costs. Gary Janzen Public Works Engineering stated it makes them whole on everything. Vice Mayor Johnson stated this is kind of a way for this developer to bid this on their own. Gary Janzen Public Works Engineering stated correct. Vice Mayor Johnson stated without the checks and balances of the City. Gary Janzen Public Works Engineering stated we have pretty much all the same checks and balances in place especially with the bidding process. Council Member Cerullo asked if the City is inspecting the final product of this infrastructure and what happens in 10 to 20 years if the infrastructure starts failing, who is responsible. Gary Janzen Public Works Engineering stated we still within the agreement and is one thing we require up front is that our field staff that oversees all of the construction projects, will still be involved. Stated we will have an inspector on site and a project engineer who will certify all the work that has been done  Page 9 CITY COUNCIL PROCEEDINGS APRIL 20, 2021 just like we do now. Stated the contractor has to provide a two-year maintenance bond, which means they have a warranty all the work for defects and materials and workmanship for two years. Stated that has been an established standard for a long time and works well. Stated 10 to 20 years from now, things will start to deteriorate and we may have to start maintaining things but with the process we have in place for an inspector being on site and the specifications we have in place, that allows us the ability to make sure it is built per our standards and is something that has worked well for a long time. Mayor Whipple inquired whether anyone from the audience wished to speak; no one came forward. MOTION: Council Member Claycomb moved to approve the agreement and authorize the necessary signatures. Motion carried 7 to 0. 3.) OLDER ADULT HOME MODIFICATION PROGRAM (OAHMP) GRANT APPLICATION. Attachment: Agenda Report No. VI-3 (Council Member Blubaugh momentarily left bench) Sally Stang Director of Housing and Community Services (Mayor Whipple momentarily left the bench; Vice Mayor Johnson in the chair) Mayor Whipple inquired whether anyone from the audience wished to speak; no one came forward. Council Member Tuttle stated she wants to applaud Sally Stang again for being innovative and taking time to apply. Stated this is something that is really near and dear to her heart. Stated if we receive the grant, will the $1.25 million pay for the occupational therapist that we will contract with for a three-year period. Sally Stang Director of Housing and Community Services stated yes and will cover all costs of the program including the program manager which will be an in-house staff member, the occupational therapist plus all of the home modifications. Council Member Tuttle asked if residents in the community who feel they are eligible for this; will there be an application process or is it just first come, first serve and then when the money is gone, the program ends. Sally Stang Director of Housing and Community Services stated there will be an application process but like all federal grants right now, will be required to provide preference to those living in an opportunity zone, which aligns with our goals and our area of investment, which we have identified but yes, it will end up being first come first serve unless one of the components is that we identify that there is a severe risk and then we can prioritize one activity over another. Council Member Frye asked if at this time there is a cap on the home amount that they can receive for their modifications.  Page 10 CITY COUNCIL PROCEEDINGS APRIL 20, 2021 Sally Stang Director of Housing and Community Services stated we are limited to $5,000 for those repairs but we can leverage other resources. Stated we have been having conversations with occupational therapists but Medicaid eligible households, there is funding through Medicaid that could be used to expand on those repairs as well as the VA. MOTION: Mayor Whipple moved to approve the Older Adult Home Modification grant application and approve the necessary signatures if awarded. Motion carried 7 to 0. COUNCIL BUSINESS SUBMITTED BY CITY AUTHORITIES PLANNING AGENDA VII) NON-CONSENT PLANNING AGENDA - NONE HOUSING AGENDA VIII) NON-CONSENT HOUSING AGENDA - NONE AIRPORT AGENDA IX) NON-CONSENT AIRPORT AGENDA 1.) AIRPORT HOTEL, LLC, CONCESSION AND LEASE AGREEMENT, WICHITA DWIGHT D. EISENHOWER NATIONAL AIRPORT. Attachment: Agenda Report No. IX-1.docx Attachment: Airport Hotel LLC -Concession and Lease Agreement.pdf Bradley Christopher, Assistant Director of Airport presented the item. Vice Mayor Johnson stated he saw that it said that the City had vetted this group and that they have done some work here in the region and asked staff if he knows any of those projects that they have worked and were they completed on time working through the City deadlines. Bradley Christopher, Assistant Director of Airport stated the vetting process that we have obtained through the City process, did not identify any problems, concerns or issues with those or anything was raised in terms of anything that would be a red flag for us. Stated these partners were also involved with the Hampton Inn Suites and we had no problems with any of that and they fully committed all of their obligations. Council Member Frye stated all of us on the Council received an email from the Doubletree group questioning the lease terms that they were offered versus the lease terms that are being proposed today, specifically about the $2 million dollar escrow and when it had to be deposited versus now and asked if that is a potential conflict.  Page 11 CITY COUNCIL PROCEEDINGS APRIL 20, 2021 Bob Layton City Manager asked Jay Hinkle to address that issue. Jay Hinkle Law Department stated the $2 million dollars which is being requested as of the start of the year is different in that respect and there is a good reason for that. Stated when this developer originally came to Council with the proposal, he was ready at that time to put up the $2 million dollars, which is what the agreement called for. Stated when he was told he could not go forward and we went through a process of over a year delay, now nobody is willing to deal with him to issue a preliminary franchise. Stated he needs to have enough time to be able to put together the franchise and then have engineering's drawing to meet that requirement and at that time to be able to go forward with construction. Stated during the period of time between the signing of the lease and when this would start, he has no beneficial use of property whatsoever so either his rent doesn't start and his bond requirement doesn't start until that time. Stated once it does, he has 30 days in which he must start construction. Stated that is a false issue, the right of first refusal (ROFR) in the contract with the Doubletree specifically says that since they have not taken up the opportunity that was given to them on two different occasions by contract and two different occasions by appearing before Council, since they turned those down, there is no restriction or limitation on how the Airport is going to contract the different developer. Stated the $2 million dollars is absolutely different than the previous presentation and so is also his commitment. Stated he came original with a $7 million dollar commitment and is now a $15 million dollar commitment of private investment. Stated those are two differences and there are others but the Airport's position is that those differences are impugn. Council Member Frye stated in terms of vetting the particular developer and if he reads the document correctly, these are the same partners that did Wichita Hilton Garden Inn downtown and know we had challenges with those deliverables and doesn't think it ever finished out the way it was originally proposed. Stated he is concerned and have we done proper vetting on this, considering that history and is it the same group or not. Jay Hinkle Law Department stated it is essentially the same group, we went through the normal process and that fact was expressly disclosed to them so they knew they were dealing with the same people that had built for example, the new hotel down on Douglas. Council Member Frye stated it is still city-owned property whether it is Airport Authority or City of Wichita. Stated this would ultimately be our inventory. Bob Layton City Manager stated the vetting process that we follow, looks at the financial capability of a company to perform on the current agreement and looks for tax delinquencies and other indications of their inability to perform financially and we feel confident after review of those documents that they do have the ability. Stated no doubt that we experienced some concerns and had some difficulties with the Hilton Garden Inn Downtown, that is well documented publicly, but there is nothing in our background check that would indicate that they do not have the ability to perform on this project. Council Member Claycomb asked if there was a negotiation with the Doubletree because they are saying the terms are different. Brad Christopher, Assistant Director of Airport stated he doesn't believe it got migrated to that point. Stated first of all they missed the ROFR, secondly there was discussion with the Doubletree Hotel, we established that the first target was by April to complete negotiations, which was kind of the startup of  Page 12 CITY COUNCIL PROCEEDINGS APRIL 20, 2021 COVID. Stated there was that first benchmark, they didn't accomplish that and there was the extension to July 1st; nothing really of any meaning was accomplished during that time on their part. Bob Layton City Manager stated there were numerous correspondence between the City and the Doubletree and in the course of the correspondence, it was outlined on what the terms would be for the agreement for them to move forward. Stated there was an indication at some point in the process that they were going to move in that direction. Jay Hinkle Law Department stated the original contractual ROFR allowed Doubletree to create their own development, they were not bound to what the first developer wanted to do. Stated let an entire year pass, they made no substantive contact for a negotiated agreement. Stated then the developer came forward with a specific proposal, the contractual ROFR at that point says, Doubletree still could have stepped in and taken that spot and stepped into the shoes of that developer if they were willing to accept that exact agreement. Stated they chose not to do so, they said we need more time to do their own study and they were given that opportunity. Stated the only thing that happened after that in the way of negotiation was negotiating for more time and not negotiating for a new substantive agreement to be closed. Council Member Claycomb stated when you say they were offered the same agreement, were they offered the timeframe of the $2 million dollars, which is what they are contesting. Jay Hinkle Law Department stated that was not an issue at that point. Stated the $2 million dollars changed now because they made their demands that altered the landscape for the current developer; they had that deal originally that would have been theirs, they chose not to take it up and so the contractual ROFR says at that point, all negotiation terms are open. Council Member Claycomb asked if these concerns were raised by the Doubletree or were they raised with the Airport Advisory Board. Jay Hinkle Law Department stated they made no appearance at the Airport Advisory Board. Council Member Claycomb asked what the ramifications of this group not meeting the terms of this agreement are. Jay Hinkle Law Department stated we have the protections that we have that are in any standard agreement and if they don't complete the construction, there is a bonding requirement that covers that. Stated the bonding company would step in and make sure that the construction has been completed. Mayor Whipple stated he understands there is some money in escrow, $2 million, and asked staff to speak on that. Jay Hinkle Law Department stated the $2 million dollar escrow is in effect until a given point in the construction. Stated it is held until the construction has risen to the point of when there is a roof or the construction is enclosed. Stated at that point, that $2 million dollars becomes available to the builder to plow into further developments inside the property. Council Member Claycomb stated if there were some default on this project, that money is retained by the City or does it go back into the project however picks it up to finish it.  Page 13 CITY COUNCIL PROCEEDINGS APRIL 20, 2021 Jay Hinkle Law Department stated the agreement doesn't really speak to that. Stated the presumption is that it is going into the completion of the project and is not wasted as a liquidated damage. Bradley Christopher, Assistant Director of Airport stated the $2 million was intended to act as a financial instead of move through the project. Council Member Blubaugh stated he has watched this over the last three years and there has been extension after extension and roadblocks and has seen no action. Stated he did not get a copy of the email that was referenced and asked if someone could send that to him. Stated the two developers that want to take action are here and would like to hear from them. Mitesh and Sumit Patel stated a lot came up about their reputation and the completion of the Wichita Downtown Hotel LLC, we actually sold our stake in the hotel in November 2019 before it was completed. Stated right before it was completed and as of the sale of the hotel negotiation, we were about 30 days to opening the pool and what the new ownership wanted was the funding was budgeted; they wanted to give us that money, we will finish it as they did not like our design, they wanted to change the design and revamp the area of what we wanted to finish. Stated we funded that money to the new buyers and let them finish the pool. Stated we opened the hotel in November 2019, we sold it a few weeks before we opened it and opened the hotel as we promised in November. Stated we closed our construction company in 2019 as well and will be using three reputable Wichita based builders for this project, we will not be constructing it and will not be the general contractors. Vice Mayor Johnson stated you mentioned November but believes you came to the Council in May of 2019 or maybe before that asking for an extension and it was before you mentioned anything about this occupier wanting to change the roof so you were having delays then. Mitesh and Sumit Patel stated the major delay on this project was that pool, a once in a lifetime glass bottom pool like that, there is only one developer for it based out of North Carolina, which was the main issue in getting this project open. Stated Hilton didn't want us to open the hotel until the roof of that building was complete, we went along with it, we wanted this pool for the City and it is sad it didn't happen on the time we wanted it to but did promise to deliver the product that we wanted before that sale. Vice Mayor Johnson stated you did deliver but prior to you delivering, believes there was also a financial penalty for being late with all of the deadlines that we had. Stated his concern is that it is at the Airport, which is the entrance into Wichita and will this project happen on time. Stated he appreciates you telling us that you no longer have your construction company, but will those deadlines be met and will actually open on time or will it be delayed again. Mitesh and Sumit Patel stated that is the reason we are putting all of this money upfront, $2 million, plus we are getting bonding for 100% of the project so if something happens that somebody cannot finish, there is enough money and security there to finish the project. Mayor Whipple inquired whether anyone from the audience wished to speak; no one came forward. Mayor Whipple stated this is one of those issues where it seems the majority of the Council does have questions and we could always entertain a motion to delay this item.  Page 14 CITY COUNCIL PROCEEDINGS APRIL 20, 2021 Council Member Frye stated that is a good suggestion and would like us to delay this. Stated next week's meeting is a consent and workshop, the next meeting after that would be May 4th. MOTION: Council Member Frye moved to delay decision on this until at least May 4th and bring it back for final consideration. Council Member Tuttle asked if we delay this, what are we hoping to learn or what information do we need, for the vote on May 4th. Mayor Whipple asked if there is anything we would like to direct staff as a body at this point in order for the Council to take up a vote on May 4th. Council Member Frye stated he does not know yet what he needs to know, just getting a little more comfort in the process and the fact that Council Member Blubaugh did not have the emails until just now and thinks that needs to be considered as well. Stated he appreciates the partners coming forward and sharing their timelines but knows that was a challenging project and thinks there was more than one delay and wants to confirm that as well. Motion carried 7 to 0. COUNCIL AGENDA X) COUNCIL MEMBER AGENDA - NONE XI) COUNCIL MEMBER APPOINTMENTS AND COMMENTS 1.) Board Appointments. Council Member Cerullo appointed Dioane Gates to the Diversity, Inclusion & Civil Rights Advisory board and Dominic Gauna to the Cultural Funding Committee. Mayor Whipple appointed Lee Schnyder to the Small Business Advisory Council. MOTION: Mayor Whipple moved to approve the appointments. Motion carried 7 to 0. Vice Mayor Johnson stated if you have plants you should have covered them because it is snowing today and pay attention to the weather. RECESS-EXECUTIVE SESSION MOTION: Mayor Whipple moved to recess into Executive Session for 20 minutes to receive information on a potential site for a city facility pursuant to K.S.A. 75-4319(B)(2): for the preliminary discussions of the acquisition of real property. The Executive Session is required to protect the City's right to the confidentiality of its negotiating position and the public interest. The Executive Session will begin at  Page 15 CITY COUNCIL PROCEEDINGS APRIL 20, 2021 10:45 a.m. and end at 11:05 a.m. The meeting will resume in the Council Chambers. Motion carried 7 to 0. RECONVENE The City Council reconvened in the Council Chambers at 11:11 a.m. ADJOURNMENT MOTION: Mayor Whipple moved to adjourn. Motion carried 5 to 0, (Absent: Blubaugh and Frye). The meeting was adjourned at 11:12 a.m. Respectfully submitted, Karen Sublett, MMC City Clerk  Page 16 CITY COUNCIL PROCEEDINGS APRIL 20, 2021 II) ATTACHMENT 1 - CONSENT AGENDA ITEMS 1 THROUGH 10 CITY COUNCIL CONSENT AGENDA ITEMS 1) Applications for Licenses: a.) List of Application for License. Attachment: Applications for Licenses April 20, 2021.docx 2) Applications for Licenses for Cereal Malt Beverages: a.) List of Applications for Licenses to Retail Cereal Malt Beverages. Attachment: CMBS FOR April 20, 2021.docx 3) Preliminary Estimates: a.) List of Preliminary Estimates. Attachment: PEsforCC_04-20-21.pdf 4) Minutes of Advisory Boards/Commissions: Library Monthly Activity Report, March 2021 Board of Building Code Standards and Appeals, March 1, 2021 MABCD Board of Appeals, March 4, 2021 Bicycle and Pedestrian Board, March 8, 2021 Library Board of Directors, March 16, 2021 Attachment: Library Monthly Activity Report, March 2021.pdf Attachment: Board of Building Code Standards and Appeals, March 1, 2021.pdf Attachment: MABCD Board of Appeals, March 4, 2021.pdf Attachment: Bicycle and Pedestrian Advisory Board, March 8, 2021.pdf Attachment: Library Board of Directors, March 16, 2021.pdf UNCATEGORIZED ITEMS: 5.) Community Events – Hopping Gnome Brewing Anniversary Party. (District I) Attachment: Agenda Report No. II-5  Page 17 CITY COUNCIL PROCEEDINGS APRIL 20, 2021 6.) Water and Sewer Utility Revenue Bond Sale. Attachment: Agenda Report No. II-6 Attachment: Bond Documents and Resolution 21-124 II) CONSENT PLANNING AGENDA ITEMS 7.) ZON2021-00005 - City Zone Change from SF-5 Single-Family Residential to LI Limited Industrial to Build a Warehouse; Generally Located Within 1000 Feet East of South Eisenhower Airport Parkway and Within 700 Feet North of West Harry Street, 1515 South Yucca Place. (District IV). Attachment: Agenda Report No. II-7 Attachment: Excerpt Minutes of March 8, 2021 Attachment: DAB Report for MAPD on ZON2021-00005.pdf Attachment: Ordinance 51-550 8.) ZON2021-00007 - City Zone Change from SF-5 Single-Family Residential to TF-3 Two-Family Residential to Allow Construction of a Duplex; Generally Located 1200 Feet South of West Central Avenue and 500 Feet West of I-235 at the Northeast Corner of North Eisenhower and West St. Louis, 5820 West St. Louis. (District V) Attachment: Agenda Report No. II-8 Attachment: Excerpt Minutes of March 18, 2021 MAPC.docx Attachment: 2021-03-01 DAB 5 Interoffice Memorandum ZON2021-00007.pdf Attachment: Ordinance 51-551 9.) VAC2021-00007 – City Vacation of a Portion of Plattor’s Text to Allow a Portion of Reserve E to be Transferred to an Adjacent Property Without Reserve E’s Restrictions; Generally Located South of East 21st Street North and West of North Greenwich Road. (District II) Attachment: Agenda Report No. II-9 Attachment: VAC2021 07 -Vacation Order.docx Attachment: VAC2021 07 -MAPC Min Excerpt.docx Attachment: Supporting Documents  Page 18 CITY COUNCIL PROCEEDINGS APRIL 20, 2021 10.) VAC2021-00008 – City Vacation of Access Control on South Webb Road to Allow Egress onto South Webb Road for a Retail Car Wash on LC Limited Commercial Zoned Lot within 200 Feet of Residential Zoning; Generally Located One-Half Mile South of East Kellogg, on the East Side of South Webb Road. (District II) Attachment: Agenda Report No. II-10 Attachment: VAC2021 08 -Vacation Order.docx Attachment: VAC2021 08 -MAPC Min Excerpt.docx Attachment: VAC2021 08 -signed dedication Access Control.pdf II) CONSENT HOUSING AGENDA ITEMS - NONE II) CONSENT AIRPORT AGENDA ITEMS - NONE