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 State University in July 1994 for the purpose of funding projects of mutual benefit to the community and (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 Terms Expiring June 30, 1996

Appointments to be made in 1996 (6 Members)

3 Citizens for 2-Year Terms Expiring June 30, 1998 1 Faculty for 1-Year Term Expiring June 30, 1997 2 Students for 1-Year Terms Expiring June 30, 1997

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City University Fund Process Chart

Note 4 Note 1 note 1

submits a list of projects City Commission Receives CU/F Committee recomendations and reviews the project list proposed

Rejected Approved Projects Projects Rejected Projects

Note 2 Note 3 New or Modified Note 2

1) C/UF Committee limited to recommendations only 2) Commission can only approve or reject projects 3) KSU President can modify or make new proposals 4) C/UF Committee is not required to make recommendation on new proposals Commission can request input

City/University Special Projects Fund Committee Minutes of Meeting April 22, 2015

Members Present: Chair Jeff Koenig, Bob Strawn, Eileen Meyer, Vice Chair Dolly Gudder, Mike Dillon, Mike Silva, Sarah Haley Christa McKittrick, and Steven Graham Kansas State University: Ethan Erickson and Mark Taussig City Administration: Kiel Mangus

Chair Koenig called the meeting to order at 6:04 p.m. Introductions were made.

Chair Koenig asked if new members had gone through orientation for the Committee.

Mangus reported that orientation of new members was completed just before the meeting.

Graham nominated Dillon for Vice Chair. Strawn seconded. The motion was approved on a vote of 7-0.

Erickson provided the Committee with information about the process and details about last year’s projects (2014) and current projects (2015). As part of the discussion on process, Mangus indicated that the City Commission will consider the committee’s 2016 recommendation at the May 5th City Commission meeting if the Committee reached recommendations at the meeting tonight. The Committee discussed current projects and asked questions.

Erickson and Mangus presented a history of the fund as well as updates on past and current projects prior to beginning the 2016 budget request. The Committee reviewed the prior year projects.

North Campus Corridor Improvements

North Manhattan Ave corridor is a growing area with NBAF being under construction, the Kansas Department of Agriculture moving into the Research Park, and other growth in the park. There are congestion, drainage, and traffic issues along the North Manhattan Ave corridor. This project will help prepare the corridor for the potential business and research growth resulting from NBAF and will be beneficial to the local economy and the University. Proposed expenditure $200,000.

Erickson presented background information on the project and funding.

Mangus discussed the current state of the project schedule wise and what will happen moving forward with N. Manhattan Ave being closed down for the construction work after school gets out this year.

Strawn asked if there were improvements being made to the intersection itself at Kimball for the project.

Mangus provided more information on the scope of the project and how the intersection at Kimball and N. Manhattan Ave will look after the project. 1

Dillon asked if this $500,000 total over 3 years from the City-University Fund is to aid in the total project costs.

Mangus stated that the funds from City-University is to aid in total project costs and the City is paying for the rest of the project using Economic Development dollars.

Strawn stated he thought an opportunity was missed regarding putting in a world class roundabout at this intersection rather than keeping it a traffic signal.

No additional questions were raised about the project.

Realignment of Intersection at Lovers Lane and Thurston St.

Due to growing residential population east of campus, increasing vehicle counts, and the addition of the new College of Business building the improvement of this intersection has become critical to provide for pedestrian and vehicular safety. The project will shift Lovers Lane to the north in order to align directly across from Thurston Ave. Proposed expenditure $248,000.

Erickson presented background information on the project and funding.

Taussig commented on more information involved with the project.

No additional questions were raised about the project.

Sidewalk Construction at Sunset Avenue

This project will assist with sidewalk improvements on the east side of Sunset Avenue between roughly College Heights Road and Montgomery Drive. It will provide improvements in safety and flow for pedestrians traveling along Sunset Ave, which is expected to increase even more once the new dormitory, Wefald Hall, is completed at KSU. Proposed Expenditure $50,000.

Erickson presented background information on the project and funding.

Dillon commented that there are utility boxes blocking the sidewalk near the parking lot on the south end of the proposed project.

Mangus commented that they are aware of the utility boxes and have taken that into consideration with the costs of the project and the possible need to move those boxes.

Graham commented that the new facility constructed at the corner of College Heights Road and Sunset put in sidewalk which could tie into this project.

Erickson commented that the new sidewalk at that project was taken into consideration when planning this project.

Meyer asked if any costs would be passed onto homeowners that were adjacent to the sidewalk.

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Mangus stated that no costs would be passed onto homeowner adjacent to the sidewalk. Homeowners would be notified and made aware before project work occurred in the area.

No additional questions were raised about the project.

Student Union Forum Hall Accessibility Renovations

Forum Hall is part of the 1970 additional to the KSU Student Union that also included the book store and the bowling lane. The area is one of the most heavily utilized event spaces by the Manhattan Community in the Student Union. Currently, accessibility for disabled audience or event participants is inadequate. The only current accessible entrance is through a rear door, limiting the ability of disabled audience members to come on stage. In addition, the existing wheelchair lift is obsolete. This project will improve accessibility and ADA access to the stage area in Forum Hall. Proposed expenditure is $200,000.

Erickson presented background information on the project and funding.

Strawn commented that he thinks this is a good project and has seen the area used for many community events, including some early NBAF meetings at Forum Hall.

Erickson commented that KDOT staff and transportation members recently had a large conference and utilized the area.

Haley noted that 77 public meetings occurred in Forum Hall last year.

Graham noted that he has personally experienced the areas in Forum Hall that need improvement. The left side of the seating there is a dip in the walkway creating a hazard. There is also no handrail once you are called up on stage to hold onto as you go up the stairs.

No additional questions were raised about the project.

Colbert Hills Special Assessment Support

Colbert Hills is ranked as one of the best public golf courses in Kansas. It provides economic benefits to the community, hosts the KSU golf team, and is utilized by the University for environmental research and a turf management facility. This project helps provide relief to the special assessment payment associated with the construction of Grand Mere Parkway. The course has seen many housing developments and areas go along the road since it was built, so they consider themselves no longer the sole beneficiary of the roadway. Proposed expenditure is $30,000.

McKittrick asked if this payment could be used for other items by Colbert Hills?

Mangus clarified that the $30,000 would be used by Colbert Hills for special assessment payment relief.

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Strawn stated that benefit districts are common in the community today for development of infrastructure and new neighborhoods. If the road was built today the split would be 80/20, rather than 50/50 as it was back then. The golf course would be paying less today.

Dillon stated his objection is that the project says assessment in place. Based on the numbers it appears the Foundation would be saving nearly $500,000. What does this money do for them?

Erickson clarified that it was $1.1 million on them and the savings was hypothetical.

Chair Koening asked how the foundation was structured?

Mangus stated he believed the foundation was a private entity.

Vice-Chair Gudder asked if this was the best use of City-University funds? She stated that in her opinion it was not.

Strawn stated the land out where Colbert Hills is located was only $74/sf before the golf course was developed and he felt the land is worth much more today because of the golf course being there. Colbert Hills benefits both the University and the City. He felt it was appropriate to use this money, sales tax from the University, to give to a foundation that supports the University.

Strawn stated he felt this is a case of Colbert Hills being unfairly taxed from the beginning.

Haley stated this is the City-University Fund not the Colbert Hills-University Fund. She asked if they could come back and request more money after three years? She was not in support of binding future committees to this request.

Mangus clarified that this is a three-year request, but is subject to committee approval each year.

Chair Koenig stated he felt the issue here is the funds being sent a foundation which is a private entity. Koenig asked the question if the golf course is struggling, is the loss of the golf course, and the sales tax/property tax associated with it, greater to the community than this payment? He stated this is based on the theoretical basis of the golf course struggling to break even.

Vice-Chair Gudder stated she heard Manhattan Country Club is struggling as well and on the verge of bankruptcy, and mentioned that might be to other golf courses in the community. She stated that Colbert Hills academic production is lacking. In her memory they haven't had any published articles. She doesn't doubt KSU benefits from some sports and academics occurring there, but thinks the committee should be careful in what we are considering here.

Dillon stated he has used the golf course many times with his grandson for the First Tee Program and thinks the golf course is a benefit to the community. He acknowledged this topic is somewhat of a gray area.

Haley stated her concern for this becoming a constant ask. She doesn't want them coming back to ask for more, or think they can come back to ask for more.

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Silva stated he thought that if we approve this then the golf course will likely come back and ask for more since this is a three year request.

Haley stated she was hoping for more information on the research piece associated with Colbert Hills.

Taussig stated he knows a professor at KSU in turf management that basically uses the golf course as a laboratory of sorts and a classroom. Kids are taught and also employed there.

Chair Koenig stated he felt that it was important to note that those lab and classroom activities are valuable to KSU and provide value outside of research papers being produced.

Meyer stated in her mind it makes her think she is driving on a private foundation road when going down Grand Mere Parkway. She mentioned she is a realtor and is very busy in the Colbert Hills area. Several new houses are going in the area and she said the golf course being there was a piece of that happening.

Silva stated he again feels this is not a good use of City-University Funds. He is not against the City using other funds for this, but doesn't think that this project fits City-University Fund status. He also expressed concern that this is for the benefit of a private foundation and sets a precedent that may not be the right one for this fund designed to benefit the City and University.

A motion was made by Silva to not fund the Colbert Hills Special Assessment Support Project for $30,000. Motion was seconded by Vice-Chair Gudder. Motion failed on a vote of 4-5. Yay (Haley, Vice-Chair Gudder, McKittrick, Silva) Nay (Dillon, Graham, Chair Koening, Meyer, Strawn)

A motion was made by Strawn to recommend all projects presented for 2016 to the City Commission for approval. Motion was seconded by Dillon. Motion passed on a vote of 7-2. (Vice-Chair Gudder, Silva)

Chair Koenig reminded Mangus that prior meeting agenda minutes were not approved at this meeting.

A motion was made by Silva to approve meeting minutes from 05-12-14 prior meeting. Motion was seconded by Strawn. Motion passed unanimously (9-0).

There being no other action a motion was made by Strawn to adjourn the meeting. Motion was seconded by Koenig. Motion passed unanimously (9-0) and meeting was adjourned at 7:26 pm.

Respectfully submitted,

Kiel Mangus Assistant City Manager

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City/University Projects Fund Calendar Year 2016 Budget Request City/University Projects Fund created as a result of annexation of KSU in 1994. Participants in the Process • KSU President • Student Senate, Faculty Senate, University Support Staff Senate • KSU President’s Council • KSU Vice President for Administration and Finance • City Staff • City University Projects Fund Committee • City Commission Calendar of Events • August –President solicits requests for proposals from campus groups • November –City Commission submits a list of recommended projects to the University President • October to December – Proposals are submitted – final approval by President’s Staff ‐ University Budget Office prepares request • February – Request submitted to Mayor and City Manager • March/April – City/University Projects Fund Committee hears presentations on new proposals. Makes recommendation to City Commission Calendar of Events

• May/June –City Commission considers Committee recommendation

• August –Proposals are included in Capital Improvement Program (CIP), part of City’s budget development process

• Following January –Half of the funds are made available to complete approved proposals with the remaining balance available in July. Summary of Requests CY 1996‐2015

Approximately $8.2 million has been expended or approved for improvements to city and university from calendar year 1996 through calendar year 2015 Calendar Year 2014 and 2015 Allocations

2014 2015  Intersection Improvements $107,000 $107,000  Safety Improvements on Denison $248,000  City Park Pavement Project $218,000  Triangle Park Improvements $ 45,000  KSU Union Forum Hall Lighting Improvements $ 50,000 $  McCain Auditorium Lighting Improvements $224,600 $  KSU Garden Sidewalks $130,000 $  Bike Racks on Campus $ 18,000 $  Sidewalk South of Dickens Avenue $105,250 $

 TOTAL $634,850 $618,000 Calendar Year 2014 and 2015 Allocations

• Intersection Improvements – 2014/2015 ‐ Widen 17th St. from Laramie St to south of Anderson Ave. 2nd and 3rd year of 3 year funding request ($52,000/year)

– 2014/2015 – Improvements to Bluemont Ave and N. Manhattan Ave. 2nd and 3rd year of 3 year funding request ($55,000/year) Calendar Year 2014 and 2015 Allocations Widen 17th St. from Laramie St. to south of Anderson Ave.

Intersection improvements on Bluemont Ave. and N. Manhattan Ave. Add crosswalk on east side.

Page 20 Calendar Year 2014 and 2015 Allocations

• Safety Improvements Denison Avenue – 2015 – Enhance pedestrian safety and traffic flows on Denison Ave ($248,000). – Removal of parking lot intersections – New pedestrian signals Calendar Year 2014 and 2015 Allocations Calendar Year 2014 and 2015 Allocations

• City Park Pavement Project – 2015 ‐ Pave approximately sixty‐two parking spaces in parking lot – Also enhance lighting, drainage and landscaping ($218,000) Calendar Year 2014 and 2015 Allocations

• 2015 ‐ Triangle Park Improvements – Restore brick pavers and upgrade electrical service ($45,000) Calendar Year 2014 and 2015 Allocations

Union Forum Hall Lighting Improvements

2014 – Renovation of stage lights and control systems ($50,000) Calendar Year 2014 and 2015 Allocations • KSU Garden Sidewalks – 2014 –Construct a walkway that connects the parking lot to the gateway at Denison Ave. ($130,000) • Bike Racks on Campus – 2014 –Install additional bike racks on campus at the Leadership Building and back of Seaton Hall ($18,000)

• McCain Auditorium Lighting Improvements – 2014 –Replacement of antiquated and failing lighting systems ($224,600) Calendar Year 2014 and 2015 Allocations

McCain Auditorium Lighting Improvements

Bike Racks

KSU Garden Sidewalks Calendar Year 2014 and 2015 Allocations

Sidewalk south of Dickens Avenue 2014 – Construct a sidewalk south on Dickens Avenue connecting to the Georgetown Apartments ($105,250) Calendar Year 2016 Request

 North Campus Corridor Improvements $200,000  Realignment of Lover’s Lane & Thurston $149,283  Sidewalk on Sunset Avenue $ 50,000  Forum Hall: ADA Renovations & Improvements $200,000  Colbert Hills Special Assessment $ 30,000  TOTAL $629,283 City/University CY 2016 Request

North Campus Corridor Improvements North Campus Corridor Improvements

• Improvements to the curb and gutter, storm sewer, sidewalk, grading, retaining wall and traffic signal • Work will be completed on North Manhattan Ave. adjacent to K‐State Research Park • Request $200,000‐ First year of three year request North Campus Corridor Improvements North Campus Corridor Improvements City/University CY 2016 Request

Realignment of Lover’s Lane Realignment of Lover’s Lane

• Realignment of Lover’s Lane and Thurston St. • Will improve vehicular and pedestrian safety by aligning the currently offset intersection • Safety features include two new crosswalks across N. Manhattan Ave. and ADA curb cuts • Request $149,283, first year of a two year request. Realignment of Lover’s Lane

Existing Intersection

Proposed Realignment City/University CY 2016 Request

Sidewalk on Sunset Avenue Sidewalk on Sunset Avenue

• Installation of a sidewalk on the east side of Sunset Avenue between College Heights Road & Montgomery Drive. • High usage for pedestrian traffic – Traffic is expected to increase once Wefald Hall construction is complete • Request $50,000 Sidewalk on Sunset Avenue Priority # 3 Installation of Sidewalk on Sunset Avenue

Existing Path City/University CY 2016 Request

K‐State Union Forum Hall ADA Renovation & Improvements Forum Hall ADA Renovations & Improvements

• Renovations to improve disability access to the audience and stage areas – Outdated and noisy lift is main access to seating area – Individuals must exit the building and enter Forum Hall through a side door to have access to the stage

• Request $200,000, First year of a two year request Forum Hall ADA Renovations & Improvements

Existing Design of Forum Hall

Conceptual Design Providing Accessible Access to Stage Area

Accessible Access for all patrons to seating area City/University CY 2016 Request

Colbert Hills Special Assessment Colbert Hills Special Assessment • When Colbert Hills was constructed a benefit district was also established to construct Grand Mere Parkway – Cost to Construct roadway was split 50/50 between City and Golf Course – During intervening years, a number of houses and developments have been constructed along the Parkway – The Golf Course is no longer the sole beneficiary of the road Colbert Hills Special Assessment – Cont.

– The course is the home of K‐State’s golf teams, is utilized for environmental research, and as a turf management facility – The course is also an economic generator for the community • Request $30,000, first year of a three year request – Each request is subject to Colbert Hills financial review to determine profitability • If course generated a profit –then request would be denied. Colbert Hills Special Assessment

Grand Mere Parkway Any Questions or Comments?