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City/KSU Projects Fund

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City/KSU Projects Fund CITY COMMISSION AGENDA MEMO April 27, 2015 FROM: Kiel Mangus, Assistant City Manager MEETING: May 5, 2015 SUBJECT: 2016 City/University Special Projects Funds Request and Committee Recommendation PRESENTERS: Kiel Mangus, Assistant City Manager Ethan Erickson, Assistant Vice President for Budget Planning Cindy Bontrager, K-State Vice President for Administration and Finance BACKGROUND The City/University Special Projects Fund was created as a result of the annexation of Kansas State University in July 1994 for the purpose of funding projects of mutual benefit to the community and Kansas State University (KSU). The attached annexation agreement specifies the process to be utilized for the submission and approval of projects. On June 3, 2014, the City Commission incorporated the 2015 City/University Special Projects Fund Committee Recommendations into the 2015 City Budget and Capital Improvements Program. At that same meeting, the City Commission expressed desire for more clarification in the City/University Fund agreement in order to show formal steps of input earlier in the process by the City. Steps at the time were taken on a staff level, but not brought formally to the City Commission for recommendations to Kansas State University. At the October 21, 2014, meeting the City Commission approved the First Addendum to the Annexation Agreement (see Enclosure 3). This addendum made some changes to deadline dates in the agreement for items the City sends to KSU, and items that KSU sends the City. The addendum did add a new step in the process. The City Commission will formally send their project requests in November to KSU for inclusion in their project process. The City Commission submitted their project requests to KSU in November 2014. University Administration submitted its 2016 request along with its preliminary planning document in early March 2015. The City/University Special Projects Fund Committee (Committee) met on April 22, 2015, and reviewed the status of the current year projects. After review of the status of 2015 projects the Committee reviewed the 2016 proposed projects (see enclosure 4 for draft meeting minutes). After discussion from the Committee a motion was made to not fund the Colbert Hills Special Tax Assessment Support. The motion failed on a vote of 4-5. A motion was then made to recommend all projects proposed. The motion passed on a vote of 7-2. DISCUSSION The City/University Special Projects Fund Committee reviewed the 2016 request from K-State and on a vote of 7-2 makes the following recommendations: North Campus Corridor Improvements Construct curb and gutter, storm sewer, sidewalk, grading, retaining wall, signal, and road improvements to North Manhattan Avenue adjacent to K-State Research Park. First of three-year request. ……………..….………...$200,000 Realignment of Intersection at Lovers Lane and Thurston Street Shift Lover's Lane to the north in order to align directly across from Thurston Street. Two new crosswalks will be constructed with lights, street lighting, and Americans with Disability Act (ADA) curb cuts. Also included is a bicycle contraflow lane. Stormwater improvements are also included in this project. First of a two year request ………………………………………………………….………......$149,283 Sidewalk Construction at Sunset Avenue Assist with sidewalk improvements on the east side of Sunset Avenue between College Heights Road and Montgomery Drive. Provide improvements for pedestrian traffic in area, which is expected to increase with opening of new K-State Dorm, Wefald Hall. …………….....$50,000 Student Union Forum Hall Accessibility Renovations Provide accessibility renovations and improvements to K-State Forum Hall. Forum Hall was built in 1970 and lacks adequate ADA accessibility items due to its age. First of a two year request..……….……..…$200,000 Colbert Hills Special Assessment Support Assist in payment of special assessment tax funding associated with the construction of Grand Mere Parkway. First of a three year request. ...........................................................................................................$30,000 FINANCING The total amount of the five (5) recommended projects for 2016 in the City/University Special Projects Fund is $629,283. From Ordinance No. 4897: ALTERNATIVES It appears the Commission has the following alternatives concerning the issue at hand. According to the Annexation Agreement, subsequent to the recommendations from the Committee and review by the City Commission, the Governing Body shall either: 1. Accept any, or all of the 2016 requested projects or programs for inclusion in the City’s CIP or Budget; or 2. Reject any, or all, of the proposed projects or programs. The Governing Body shall notify the K-State President as to the programs or projects that are rejected. The K-State President may resubmit new, or modified proposals, to replace those projects that are rejected. Such new or modified proposals are to be submitted directly to the Governing Body for consideration unless either the University or the Governing Body requests that the Committee review the new or modified request. RECOMMENDATION City/University Special Projects Fund Committee and City Administration recommend approval of the City/University Special Projects Fund Committee Request for 2016. POSSIBLE MOTION Direct City Administration to incorporate the 2016 City/University Special Projects Fund Committee Recommendation into the 2016 City Budget and Capital Improvements Program. Enclosures: 1. Ordinance No. 4897 2. Original Annexation Agreement 1994 3. First Addendum to Annexation Agreement 2014 4. City/University Special Projects Fund Committee Minutes from April 22, 2015 5. KSU City/University 2016 Projects Request FIRST ADDENDUM TO AGREEMENT THIS FIRST ADDENDUM TO AGREEMENT is hereby entered into this 4th day of November, 2014, by and between Kansas State University of Manhattan, Kansas hereinafter referred to as the "University" and the City of Manhattan, Kansas, a municipal corporation and body politic, hereinafter referred to as "City", and jointly referred to as the “parties”. WHEREAS, on or about June 30, 1994, the University and City entered into an Agreement that, inter alia, established mutual consent to annexation of University property into the corporate limits of the City and further established the shared responsibilities of the parties; and WHEREAS, the parties additionally established the "City-University Projects Fund" to mutually benefit the parties from the generation of additional sales taxes and franchise fees generally related to said annexation; and WHEREAS, the parties agree that it is in their best interest to amend and modify the June 30, 1994 Agreement with this First Addendum to Agreement to refine the current administration of the City- University Projects Fund, while allowing the existing provisions addressing annexation and shared responsibilities to remain unchanged from the June 30, 1994 Agreement. NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties hereto do agree to the updates and amendments to the June 30, 1994 Agreement as follows: Provision Number 1 is hereby deleted and replaced with new Provision Number 1 as follows: 1. The City hereby agrees to continue of the separate fund of the City, previously established by ordinance, and pursuant to law, and known as the "City-University Projects Fund", hereinafter referred to as the "Fund". All revenue generated from City sales taxes, county sales tax rebates, and City utility franchise fees which are generated from any portion of the property owned by Kansas State University or the Kansas Board of Regents within the City of Manhattan, Kansas, as long as such property is both used by the University to fulfill its mission to the public it serves, and is titled in the name of either the University, the State Board of Regents or the State of Kansas, shall be subject to transfer to the Fund to support projects of mutual benefit to the City and Kansas State University; provided that the above revenues will be adjusted by the annual estimated cost of fire services provided by the City to the University. Further, any monies not spent within the Fund during a calendar fiscal year will be credited as a beginning balance for the following fiscal year. Provision Number 4 is hereby deleted and replaced with new Provision Number 4 as follows: 4. Before October 1st of each calendar year, the Internal Audit Director for Kansas State University shall provide the City and Committee the actual receipts of sales taxes from any portion of property owned by Kansas State University or the Kansas Board of Regents within the City of Manhattan for the preceding fiscal year of the University. Provision Number 5 is hereby deleted and replaced with new Provision Number 5 as follows: 5. By November 1st of each calendar year, the City Manager shall notify the President of the University of the Estimated Revenues that are available to the City-University Projects Fund budget for the next following City budget cycle. Such estimate shall include the actual amount 1 CITY-UNIVERSITY PROJECTS JOINT COMMITTEE TERMS OF MEMBERS CREATED BY THIS AGREEMENT Original Appointments in 1994 (All 9 Members) 3 Citizens for 1-Year Terms Expiring June 30, 1995 3 Citizens for 2-Year Terms Expiring June 30, 1996 1 Faculty for 1-Year Term Expiring June 30, 1995 Appointments to be made in 1995 (6 Members) 3 Citizens for 2-Year Terms Expiring June 30, 1997 1 Faculty for 1-Year Term Expiring June 30, 1006 2 Students for 1-Year
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