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AGENDACITY COUNCIL
Tuesday, June 02, 20209:00 AM
The regular meeting of the City Council will be held on June 02, 2020 at 9:00 AM in the City CouncilChambers
455 N. Main Street, Wichita, KS 67202.
OPENING OF REGULAR MEETING
Call to Order
Invocation and Pledge of Allegiance
Approve the minutes of regular meeting on May 26, 2020
I. PUBLIC AGENDANOTICE: No action will be taken relative to items on this agenda other than referral forinformation. Requests to appear will be placed on a “first-come, first-served” basis. Thisportion of the meeting is limited to thirty minutes and shall be subject to a limitation of fiveminutes for each presentation with no extension of time permitted. No speaker shall beallowed to appear more frequently than once every fourth meeting. Members of the publicdesiring to present matters to the Council on the public agenda must submit a request inwriting to the office of the city clerk prior to twelve noon on the Tuesday preceding the councilmeeting. Matter pertaining to personnel, litigation and violations of laws and ordinances areexcluded from the agenda.Rules of decorum as provided in this code will be observed.
1. Gerald Baker - Request a three-way stop sign and painted crosswalk at 9th andMcLean for safe senior-pedestrian access to river walkways.
2. Jane Byrnes - Promote walking and safe walkability within Wichita.
II. CONSENT AGENDA ITEMS 1 THROUGH 10NOTICE: Items listed under the “Consent Agendas” will be enacted by one motion with noseparate discussion. If discussion on an item is desired, the item will be removed from the“Consent Agendas” and considered separately (The Council will be considering the CityCouncil Consent Agenda as well as the Planning, Housing, and Airport Consent Agendas.Please see “ATTACHMENT 1 – CONSENT AGENDA ITEMS” for a listing of all ConsentAgenda Items.
COUNCIL BUSINESS 1
City Council June 02, 2020
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III. BOARD OF BIDS AND CONTRACTS
1. Report of Board of Bids and Contracts dated June 1, 2020.
RECOMMENDED ACTION: Receive and file report, approve the contracts andauthorize the necessary signatures. 06-01-2020 Board of Bids.pdf
IV. UNFINISHED COUNCIL BUSINESS - NONE
V. NEW COUNCIL BUSINESS
1. Public Hearing and Resolution for Letter of Intent to Issue Industrial Revenue Bonds,Advance Catastrophe Technologies, Inc. (District V)
RECOMMENDED ACTION: Close the public hearing, adopt the Resolution andauthorize the necessary signatures. Agenda Report No. V-1.docxRequest IRB ACT 4-30-20 (1).pdfResolution No. 20-163
2. Funding for the Aquatics Master Plan Phase 2 and Artist First Joint Addendum.
RECOMMENDED ACTION: Approve the revised budget and the Artist First JointAddendum, adopt the amending resolution and authorize the necessary signatures.
Agenda Report No. V-2.docContract.pdfResolution No. 20-159
3. Funding and Change Order Limit Adjustment for Improvements to Pawnee from 119thto 135th Streets West. (District IV)
RECOMMENDED ACTION: Approve the budget, amending resolution and changeorder modification resolution, and authorize the necessary signatures.Agenda Report No. V-3.docxResolution 20-160 085556 CO Limit.docxResolution 20-161 085556 Sales Tax.docxResolution 20-162
4. 2020 Justice and Mental Health Collaboration Program Competitive Grant.
RECOMMENDED ACTION: Approve the grant application and authorize the Mayor tosign the grant upon award. 2
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Agenda Report No. V-4.doc
5. CDBG Funding Allocation for Case Management; Homeless Services.
RECOMMENDED ACTION: Approve the CDBG CARES Act funding allocations inthe total amount of $209,361, approve the funding agreements, and authorize thenecessary signatures. Agenda Report No. V-5.docxFunding Agreement - MHA.docxFunding Agreement - UMOD.docxFunding Agreement - SACK.docx
6. Substantial Amendment to the 2019-2020 Annual Action Plan and 2019-2024Consolidated Plan.
RECOMMENDED ACTION: Close the public hearing for the Substantial Amendmentto the first year Annual Action Plan and Consolidated Plan; approve the SubstantialAmendment to the 2019-2020 first year Annual Action Plan and Consolidated Plan;approve the funding allocations and authorize the necessary signatures.Agenda Report No. V-6.doc2019-2020 Substantial Amendment to AAP and Con Summary Citizen Participation Plan
7. Professional Services Agreement.
RECOMMENDED ACTION: Approve the agreement and authorize all necessarysignatures.Agenda Report No. V-7.docxTriplett Woolf PSA - Water Treatment Facility Loan.doc
8. 20 Ride Non-Expiring Passes for $20.
RECOMMENDED ACTION: Approve Wichita Transit to provide 20 Ride Passes for$20 from June 2 through August 18, 2020.Agenda Report No. V-8.docx
9. Police Patrol East Station Construction RFP Criteria. (District I)
RECOMMENDED ACTION: Approve the RFP selection criteria for constructionservices of the new Police Patrol East Station.Agenda Report No. V-9.doc
COUNCIL BUSINESS SUBMITTED BY CITY AUTHORITIES
PLANNING AGENDA3
City Council June 02, 2020
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NOTICE: Public hearing on planning items is conducted by the MAPC under provisions ofState law. Adopted policy is that additional hearing on zoning applications will not beconducted by the City Council unless a statement alleging (1) unfair hearing before theMAPC, or (2) alleging new facts or evidence has been filed with the City Clerk by 5p.m. onthe Wednesday preceding this meeting. The Council will determine from the writtenstatement whether to return the matter to the MAPC for rehearing.
VI. NON-CONSENT PLANNING AGENDA - NONE
HOUSING AGENDANOTICE: The City Council is meeting as the governing body of the Housing Authority forconsideration and action on the items on this Agenda, pursuant to State law, HUD, and Cityordinance. The meeting of the Authority is deemed called to order at the start of this Agendaand adjourned at the conclusion. A Housing Member is also seated with the City Council.
VII. NON-CONSENT HOUSING AGENDA - NONE
AIRPORT AGENDANOTICE: The City Council is meeting as the governing body of the Airport Authority forconsideration and action on items on this Agenda, pursuant to State law and City ordinance.The meeting of the Authority is deemed called to order at the start of this Agenda andadjourned at the conclusion.
VIII. NON-CONSENT AIRPORT AGENDA
1. CMAR Criteria - Aviation Fuel Storage and Distribution Facility Rehabilitation Project;Eisenhower National Airport.
RECOMMENDED ACTION: Approve the selection criteria, or provide additionalmodified criteria. Agenda Report No. VIII-1.docx
2. Mid-Continent Aviation Services, Inc., Use and Lease Agreement, Wichita Dwight D.Eisenhower National Airport.
RECOMMENDED ACTION: Approve the agreement and authorize the necessarysignaturesAgenda Report No. VIII-2.docMCA's Use and Lease Agreement.pdf
COUNCIL AGENDA
IX. COUNCIL MEMBER AGENDA - NONE
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X. COUNCIL MEMBER APPOINTMENTS AND COMMENTS
1. Board Appointments.
RECOMMENDED ACTION: Approve the appointments.
Adjournment
ATTACHMENT 1 - CONSENT AGENDA ITEMS 1 THROUGH 10
II. CITY COUNCIL CONSENT AGENDA ITEMS
1. Applications for Licenses for Cereal Malt Beverages:
a. Applications for Licenses to Retail Cereal Malt Beverages:
RECOMMENDED ACTION: Approve licenses subject to staff review and approval. CMBs for June 2, 2020.docx
2. Preliminary Estimates:
a. Not To Be Advertised water improvements for Emerald Bay 4th Addition.
RECOMMENDED ACTION: Receive and file.NTBA Emerald Bay 4th Addition.docPE- NTBA Emerald Bay 4th Addition.doc
3. Agreements/Contracts:
a. ASR 2019 Accounting Model and Annual Report.
RECOMMENDED ACTION: Approve the agreement, and authorize the necessarysignatures. Agenda Report No. II-3a.docxContract.pdf
4. Property Acquisitions:
a. Acquisition of a Temporary Construction Easement in the 12500 Block of WestPawnee for the Road Improvement Project, Pawnee - 119th to 135th Streets. West.(District IV)
RECOMMENDED ACTION: Approve the acquisition, authorize the budget andauthorize the Mayor to sign any necessary documents.Agenda Report No. II-4a.doc 5
City Council June 02, 2020
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Supporting Documents
b. Partial Acquisition 11004 East Pawnee for the Pawnee Avenue - Webb Road toGreenwich Road Improvement Project. (District II)
RECOMMENDED ACTION: Approve the acquisition, authorize the budget andauthorize the Mayor to sign any necessary documents.Agenda Report No. II-4b.docSupporting Document
c. Acquisition of a Temporary Construction Easement at 2145 South Bluff for the BluffCourt Sanitary Sewer Relocation Project. (District III)
RECOMMENDED ACTION: Approve the acquisition, authorize the budget andauthorize the Mayor to sign any necessary documents.Agenda Report No. II-4c.docSupporting Documents
Uncategorized Items:
5. Drug Enforcement Agency – 2020 High Intensity Drug Trafficking Area Task Force(HIDTA).
RECOMMENDED ACTION: Approve the 2020 HIDTA grant award, Memorandum ofUnderstanding and authorize the necessary signatures. This two-year grant covers2020 – 2021. Agenda Report No. II-5.docMOU
6. Project Safe Neighborhoods (PSN) Grant.
RECOMMENDED ACTION: Approve the grant application and authorize thenecessary signatures upon award.Agenda Report No. II-6.doc
7. Federal Coronavirus Emergency Supplemental Funding Program - KansasSolicitation.
RECOMMENDED ACTION: Approve the grant application and authorize thenecessary signatures if awarded. Agenda Report No. II-7.doc
8. Strategies for Policing Innovation Grant FY 2020 Competitive Grant Solicitation.
RECOMMENDED ACTION: Approve the grant application and authorize thenecessary signatures if awarded.
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City Council June 02, 2020
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Agenda Report No. II-8.doc
9. Second Reading Ordinances:
a. Second Reading Ordinances (first read May 26, 2020)
RECOMMENDED ACTION: Adopt the ordinances. List of Second Reading Ordinances 06-02-2020.docx
II. CONSENT PLANNING AGENDA ITEMS - NONENOTICE: Public hearing on planning items is conducted by the MAPC under provisions ofState law. Adopted policy is that additional hearing on zoning applications will not beconducted by the City Council unless a statement alleging (1) unfair hearing before theMAPC, or (2) alleging new facts or evidence has been filed with the City Clerk by 5p.m. onthe Wednesday preceding this meeting. The Council will determine from the writtenstatement whether to return the matter to the MAPC for rehearing.
II. CONSENT HOUSING AGENDA ITEMSNOTICE: The City Council is meeting as the governing body of the Housing Authority forconsideration and action on the items on this Agenda, pursuant to State law, HUD, and Cityordinance. The meeting of the Authority is deemed called to order at the start of this Agendaand adjourned at the conclusion. A Housing Member is also seated with the City Council.
10. Ratify the Adoption of Statutory and Regulatory Waivers.
RECOMMENDED ACTION: Ratify the adoption of U.S. Department of Housing andUrban Development’s (HUD) Coronavirus Aid, Relief and Economic Security(CARES) Act Statutory and Regulatory Waivers for the Wichita Housing Authority(WHA).Agenda Report No. II-10.docx
II. CONSENT AIRPORT AGENDA ITEMS - NONENOTICE: The City Council is meeting as the governing body of the Airport Authority forconsideration and action on items on this Agenda, pursuant to State law and City ordinance. The meeting of the Authority is deemed called to order at the start of this Agenda andadjourned at the conclusion.
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Agenda Item No. V-1
City of WichitaCity Council Meeting
June 2, 2020
TO: Mayor and City Council
SUBJECT: Public Hearing and Resolution for Letter of Intent to Issue Industrial Revenue Bonds(Advance Catastrophe Technologies, Inc.) (District V)
INITIATED BY: Office of Economic Development
AGENDA: New Business_________________________________________________________________________________
Recommendation: Close the public hearing and adopt the Resolution.
Background: Advance Catastrophe Technologies, Inc. (ACT) was founded in 2001 to provide disaster mitigation and reconstruction services for commercial properties. It intends to build a 20,000 square-footcorporate headquarters in northwest Wichita. ACT is requesting a Letter of Intent to issue Industrial Revenue Bonds in an amount not to exceed $2,885,000.
Analysis: ACT provides disaster mitigation and reconstruction services for facilities damaged by water, fire, mold or storms. ACT’s target industries include commercial/retail companies, hospitality and student housing, owners of hotels systems, healthcare systems and senior living systems.
ACT contracts with companies that have multiple locations to plan for disasters and provide services to clean up after a disaster and reconstruct damaged facilities. The company has approximately 500 subcontractors throughout the United States to provide its services. ACT is currently located in a 12,000 square-foot leased facility in Bel Aire, Kansas. ACT could not find a suitable location in Bel Aire. The City has a letter from the Bel Aire City Manager acknowledging that fact.
The new 20,000 square-foot expansion will be located in the 4000 block of Hoover Court near K-96 and Hoover. ACT currently has 46 employees and projects it will add 10 new employees over the next five years at an average annual salary of $44,400.
Within the last month, the City Council held an Economic Development retreat where it reviewed the existing incentive policies and recommended utilizing a new matrix for determining project abatements. The proposed guidelines utilize the following metrics for determining the cumulative percentage abatement.
New Jobs 5-25 26-50 >50Abatement 30% 40% 50%
New Capital Investment $1M-<$5M $5M-10M >$10M Abatement 40% 50% 60%
Additional ConsiderationsRegional Growth Plan sector 10%Utilizing State, federal or utility incentives 10%Sustainable Development/Alternative Energy use 15%Investing in, or funding, entrepreneurship 25%Talent attraction plan (must be documented) 25%Locating in Redevelopment Area 25%Community and Workforce Development Benefits 25% 22
Advance Catastrophe Technologies – IRB LOIJune 2, 2020Page 2
Under the proposed new guidelines, ACT would qualify for a 30% abatement based on 10 net new qualifying jobs (qualifying based on annual wages) and based on a $2,885,000 capital investment, ACT would qualify for an additional 40% abatement, bringing the total to 70%. Since ACT is utilizing State of Kansas incentives, it would receive an additional 10% abatement as an Additional Consideration item, bringing the total abatement to 80%.
The current City of Wichita economic development policy bases the percentage of abatement utilizing the performance metrics of job creation and capital investment on a sliding scale basis. Based on 10 net new qualifying jobs and ACT’s $2,885,000 capital investment ACT would only qualify for a 56.75% abatement.
The proposed new guidelines provide a greater benefit to smaller companies like ACT and provides the Council the ability to consider additional items when considering an abatement. This is an important distinction moving forward, especially for a company that is expanding during the Covid-19 recovery period. The company been busy during this time sanitizing properties for its customers.
ACT is requesting a letter of intent to issue Industrial Revenue bonds in an amount not to exceed $2,885,000 for a sales tax exemption on construction materials and an 80% property tax abatement on real property improvements on a 5+5 year basis. No land will be abated.
Financial Considerations: Based on the latest available mill levy, the estimated tax value of the 80% exemption for the first full year is approximately $59,234. The actual value of any abatement will be subject to the valuation by the Sedgwick County Treasurer. The estimated value of the real property tax exemption as applicable to taxing jurisdictions is:
City $15,706 State $ 720County $14,104 USD 266 $28,704
Wichita State University’s Center for Economic Development and Business Research performed an analysis,which indicates the following ratio of benefit to costs:
City of Wichita 1.36 to 1.00City of Wichita – General Fund 1.24 to 1.00City of Wichita – Debt Serv 1.61 to 1.00Sedgwick County 1.31 to 1.00USD 266 1.53 to 1.00State of Kansas 2.58 to 1.00
Legal Considerations: The Law Department has approved the attached Resolution as to form.
Recommendations/Actions: It is recommended that City Council close the public hearing, adopt the Resolution and authorize the necessary signatures.
Attachments: Application, Resolution
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600809.20543\RESOLUTION OF INTENT
Gilmore & Bell, P.C.05/18/2020
RESOLUTION NO. 20-163
A RESOLUTION OF THE GOVERNING BODY OF THE CITY OF WICHITA, KANSAS DETERMINING THE ADVISABILITY OF ISSUING TAXABLE INDUSTRIAL REVENUE BONDS FOR THE PURPOSE OF FINANCING THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF A COMMERCIALFACILITY TO BE LOCATED IN SAID CITY; AND AUTHORIZING EXECUTION OF RELATED DOCUMENTS.
WHEREAS, the City of Wichita, Kansas (the "City") is a municipal corporation, duly created, organized and existing under the Constitution and laws of the State of Kansas (the “State”); and
WHEREAS, the City Council (the “Governing Body”) of the City desires to promote, stimulate and develop the general economic welfare and prosperity of the City, and thereby to further promote, stimulate and develop the general economic welfare and prosperity of the State; and
WHEREAS, pursuant to the provisions of the Kansas Economic Development Revenue Bond Act, as amended and codified in K.S.A. 12-1740 et seq. (the "Act"), the City is authorized to issue revenue bonds for such purposes; and
WHEREAS, the Governing Body determines it to be advisable and in the interest and for the welfare of the City and its inhabitants that revenue bonds of the City be authorized and issued, in one or more series, to provide funds to pay the costs of the acquisition, construction and equipping of a commercial facility (the "Project") to be located in the City and to be leased by the City to Advance Catastrophe Technologies Inc.(the "Tenant").
NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF WICHITA, KANSAS:
Section 1. Public Purpose. The Governing Body hereby finds and determines that the Project will promote, stimulate and develop the general economic welfare and prosperity of the City, and thereby further promote, stimulate and develop the general economic welfare and prosperity of the State.
Section 2. Authorization to Acquire Project; Intent to Issue Bonds. The City is hereby authorized to proceed with the acquisition, construction and equipping of the Project and to issue its revenue bonds, in one or more series, in an aggregate principal amount not to exceed $2,885,000 (collectively, the "Bonds") to pay the costs thereof, subject to satisfaction of the conditions of issuance set forth herein.
Section 3. Conditions to Issuance of Bonds. The issuance of the Bonds is subject to: (a) the Tenant’s written acceptance of a Letter of Intent containing the City’s conditions to the issuance of the Bonds in accordance with the City’s Economic Development Incentive Policy (the “Letter of Intent”); (b) the successful negotiation and sale of the Bonds to a purchaser or purchasers to be determined by the Tenant and acceptable to the City (the "Purchaser"), which sale shall be the responsibility of the Tenant and not the City; (c) the receipt of the approving legal opinion of Gilmore & Bell, P.C. ("Bond Counsel") in form acceptable to the City, the Tenant and the Purchaser; (d) the obtaining of all necessary governmental approvals to the
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600809.20543\RESOLUTION OF INTENT
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issuance of the Bonds; and (e) the commitment to and payment by the Tenant or Purchaser of all expenses relating to the issuance of the Bonds, including, but not limited to: (i) expenses of the City and the City Attorney; (ii) any underwriting or placement fees and expenses; (iii) all legal fees and expenses of Bond Counsel; and (iv) all recording and filing fees, including fees of the Kansas Board of Tax Appeals.
Section 4. Property Tax Exemption. The Governing Body hereby determines that pursuant to the provisions of K.S.A. 79-201a the Project, to the extent purchased or constructed with the proceeds of the Bonds, should be eligible for an exemption from payment of ad valorem property taxes for a period up to ten calendar years commencing with the year following the year in which the Bonds are issued, provided proper application is made therefor; provided no exemption may be granted from the ad valorem property tax levied: (a) by a school district pursuant to the provisions of K.S.A. 72-53,113, and amendments thereto; (b) for the uses restricted pursuant to the provisions of K.S.A. 79-201a, Second and Twenty-Fourth; and (c) for real estate on which the Project is located. The Governing Body hereby conditionally approves a 80% ad valorem property tax exemption on the Bond-financed property, for a five year term, with an additional five year termto be considered thereafter, at the discretion of the Governing Body, all subject to the Tenant’s ongoing compliance with the City’s Economic Development Incentive Policy. Prior to making such determination the Governing Body has conducted the public hearing and reviewed the analysis of costs and benefits of such exemption required by the Act.
Section 5. Sales Tax Exemption. The Governing Body hereby determines that pursuant to the provisions of K.S.A. 79-3601 et seq. (the “Sales Tax Act”), particularly 79-3606(b) and (d) and other applicable laws, sales of tangible personal property or services purchased in connection with construction of the Project and financed with proceeds of the Bonds are entitled to exemption from the tax imposed by the Sales Tax Act; provided proper application is made therefore. In the event that the Bonds are not issued for any reason, the Tenant will not be entitled to a sales tax exemption under the terms of the Sales Tax Act and will remit to the State Department of Revenue all sales taxes that were not paid due to reliance on the sales tax exemption certificate granted hereunder.
Section 6. Reliance by Tenant; Limited Liability of City. It is contemplated that in order to expedite acquisition of the Project and realization of the benefits to be derived thereby, the Tenant may incur temporary indebtedness or expend its own funds to pay costs of the Project prior to the issuance of the Bonds; provided that such expenditures incurred prior to the issuance of the Bonds are at the risk of the Tenant that the Bonds will actually be issued. Proceeds of Bonds may be used to reimburse the Tenant for such expenditures made not more than 60 days prior to the date this Resolution is adopted. The Bonds herein authorized and all interest thereon shall be paid solely from the revenues to be received by the City from the Project and not from any other fund or source. The City shall not be obligated on such Bonds in any way, except as herein set out. In the event that the Bonds are not issued, the City shall have no liability to the Tenant.
Section 7. Execution and Delivery of Documents. The Mayor is hereby authorized to execute the Letter of Intent, and the City Clerk is authorized to deliver executed copies of this Resolution and the Letter of Intent to the Tenant.
Section 8. Further Action. The Mayor, City Clerk and other officials, employees and agents of the City, including the City Attorney and Bond Counsel, are hereby further authorized and directed to take such other actions as may be appropriate or desirable to accomplish the purposes of this Resolution, including, but not limited to: (a) cooperate with the Tenant in filing an application for a sales tax exemption certificate with the Kansas Department of Revenue with respect to Bond-financed property; and (b) execution on behalf of the City of the information statement regarding the proposed issuance of the Bonds to be filed with the State Board of Tax Appeals pursuant to the Act.
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Section 9. Effective Date. This resolution shall become effective upon adoption by the Governing Body and shall remain in effect until December 31, 2021, unless extended by affirmative vote of a majority of the Governing Body.
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600809.20543\RESOLUTION OF INTENT
(Signature Page to Resolution of Intent)
ADOPTED by the City Council of the City of Wichita, Kansas, on June 2, 2020.
(SEAL)Brandon J. Whipple, Mayor
ATTEST:
Karen Sublett, City Clerk
APPROVED AS TO FORM:
Jennifer Magaña, Director of Law and City Attorney
CERTIFICATE
I hereby certify that the above and foregoing is a true and correct copy of the Resolution adopted by the City Council of the City of Wichita, Kansas on June 2, 2020, as the same appears of record in my office.
DATED: June 2, 2020.
Karen Sublett, City Clerk
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600809.20543\RESOLUTION OF INTENT
EXCERPT OF MINUTES OF A MEETINGOF THE GOVERNING BODY OF
THE CITY OF WICHITA, KANSASHELD ONJUNE 2, 2020
The City Council (the “Governing Body”) of the City of Wichita, Kansas (the “City”) met in regular session at the usual meeting place in the City, at 9:00 a.m., the following members being present and participating, to-wit:
Absent: .
The Mayor declared that a quorum was present and called the meeting to order.
* * * * * * * * * * * * * *
(Other Proceedings)
Among other business, in accordance with notice published on May 22, 2020, in the Wichita Eagle, a public hearing was held by the Governing Body relating to the proposed issuance of not to exceed $2,885,000principal amount of Taxable Industrial Revenue Bonds (Advance Catastrophe Technologies Inc.) (the “Bonds”). All interested persons were afforded an opportunity to present their views on the issuance of the Bonds and the location and nature of the Project to be financed with the proceeds of the Bonds. Thereupon, the public hearing was closed.
Thereupon, there was presented a Resolution entitled:
A RESOLUTION OF THE GOVERNING BODY OF THE CITY OF WICHITA, KANSAS DETERMINING THE ADVISABILITY OF ISSUING TAXABLE INDUSTRIAL REVENUE BONDS FOR THE PURPOSE OF FINANCING THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF A COMMERCIALFACILITY TO BE LOCATED IN SAID CITY; AND AUTHORIZING EXECUTION OF RELATED DOCUMENTS.
Thereupon, [_______________] moved that said Resolution be adopted. The motion was seconded by [_______________]. Said Resolution was duly read and considered, and upon being put, the motion for the adoption of said Resolution was carried by the vote of the Governing Body, the vote being as follows:
Aye:
Nay:
Thereupon, the Resolution was then duly numbered Resolution No. 20-163, and was signed by the Mayor and attested by the Clerk.
(Other Proceedings)
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600809.20543\RESOLUTION OF INTENT
(Signature Page to Excerpt of Minutes)
CERTIFICATE
I certify that the foregoing Excerpt of Minutes is a true and correct excerpt of the proceedings of the City Council of the City of Wichita, Kansas held on the date stated therein, and that the official minutes of such proceedings are on file in my office.
[SEAL]__________________________________________
Karen Sublett, City Clerk
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Agenda Item No. V-2
City of WichitaCity Council Meeting
June 2, 2020
TO: Mayor and City Council
SUBJECT: Funding for the Aquatics Master Plan Phase 2 and Artist First Joint Addendum(All Districts)
INITIATED BY: Departments of Public Works & Utilities
AGENDA: New Business
Recommendations: Approve the revised budget and Artist First Joint Addendum, and adopt theamending resolution.
Background: The Aquatics Master Plan will guide more than $22 million in investments over the nexttwo years for pool and water playground improvements. The City Council approved the plan on June 4,2019. Phase 1A and 1B construction contracts were approved by the City Council on May 19, 2020 and April 14, 2020, respectively.
Analysis: Phase 2 will rehabilitate the pools at Minisa and Harvest Parks, and will also convert the Linwood Park pool into a water playground. Additionally, the cost to complete the artist design for this project to-date has increased because of changes that were made during the design process and additional meetings associated with public engagement. The public engagement is vital to the success of the project due to stakeholders buying into the themed designs. The Artist First Joint Addendum has been prepared for the additional aesthetic design and public engagement efforts.
Any unspent funds from Phases 1 and 2 will be utilized toward Phase 3, which will rehabilitate the pool at College Hill Park and build new water playgrounds at Harrison and Planeview Parks. Additional funding will need to be programmed into a future Capital Improvement Program (CIP) to complete the Phase 3 projects.
Financial Considerations: The existing budget is $14,150,000. Staff recommends initiating $8,000,000 budgeted for 2020 in the 2019-2028 Adopted CIP. The revised project budget will be $22,150,000.
The additional artist design cost is $16,334, which will be funded by the existing budget and will be split evenly between the two artists. The original design contract was $35,000 per artist, which brings the total design contract to $42,167 per artist.
Legal Considerations: The Law Department has reviewed and approved the Artist First Joint Addendumand amending resolution as to form.
Recommendations/Actions: It is recommended that the City Council approve the revised budget and the Artist First Joint Addendum, adopt the amending resolution, and authorize the necessary signatures.
Attachments: Artist First Joint Addendum and amending resolution
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FIRST JOINT ADDENDUM TO
THE PROFESSIONAL SERVICES AGREEMENTS
BETWEEN THE CITY OF WICHITA, KANSAS,
AND CONSTANCE ERNATT, d/b/a ERNATT ART AND BRONZE,
AND KENT WILLIAMS, d/b/a KENT WILLIAMS ENVIRONMENTAL DESIGN,
FOR ART/AESTHETICS DEVELOPMENT AND WORKS
THIS FIRST JOINT ADDENDUM made and entered into this _____ day of
_______________, 2020, by and between THE CITY OF WICHITA, KANSAS, hereinafter called
“CITY”, and CONSTANCE ERNATT, d/b/a ERNATT ART AND BRONZE, hereinafter called
“ERNATT ARTIST”, and KENT WILLIAMS, d/b/a KENT WILLIAMS ENVIRONMENTAL
DESIGN, hereinafter called “KWED ARTIST”, modifies and supplements the PROFESSIONAL
SERVICES AGREEMENTS FOR ART/AESTHETICS DEVELOPMENT & WORKS dated 2018,
between CITY and ERNATT ARTIST, and between CITY and KWED ARTIST.
WITNESSETH THAT:
WHEREAS, in 2018, ERNATT ARTIST and KWED ARTIST each entered into a separate
PROFESSIONAL SERVICES AGREEMENT with the CITY for the purpose of ERNATT ARTIST
and KWED ARTIST providing artist development and works in support of the project known as the
AQUATICS MASTER PLAN, located in the City of Wichita, Kansas (hereinafter collectively referred
to as the “ARTIST CONTRACTS”). For purposes of this FIRST JOINT ADDENDUM, ERNATT
ARTIST and KWED ARTIST shall be referred to collectively as “ARTISTS”.
NOW, THEREFORE, the ARTISTS and CITY hereby agree, covenant and contract with each
other that the terms of the ARTIST CONTRACTS are hereby reaffirmed and re-executed for and on
behalf of these Parties with the following amendment, modifications and changes:
1. Section 1, Scope of Services, of the ARTIST CONTRACTS shall be amended to add
the following Additional Services in addition to, and with no change to those already included
in the ARTIST CONTRACTS:
ARTISTS shall provide Schematic Design and Design Development services for the
Minisa Park Pool and the Harvest Park Pool in accordance with the site plans
attached as Exhibit “A” to this FIRST JOINT ADDENDUM, and as included in the
CITY’S AQUATICS MASTER PLAN.
2. Section 4, Fees and Payment, of the ARTIST CONTRACTS shall be amended to add
the following in addition to, and with no change to those already included in the ARTIST
CONTRACTS:
CITY shall pay ARTISTS the following amount for the Additional Services
provided by ARTISTS for the Minisa Park Pool and the Harvest Park Pool:
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Minisa Park Pool:
Schematic Design $1,167.00
Design Development $7,000.00
Minisa SubTotal $8,167.00
Harvest Park Pool:
Schematic Design $1,167.00
Design Development $7,000.00
Harvest SubTotal $8,167.00
TOTAL MAXIMUM ADDENDUM AMOUNT $16,334.00
CITY and ARTISTS agree that the Total Maximum Addendum Amount represents the total
amount the ARTISTS may collectively charge for the Additional Services under this FIRST JOINT
ADDENDUM. The Total Maximum Addendum Amount shall be paid by CITY as $8,167.00 to
ERNATT ARTIST and $8,167.00 to KWED ARTIST within 30 days after Acceptance by the CITY
of the completed Additional Services by the ARTISTS.
CITY and ARTISTS agree that they are entering into this FIRST JOINT ADDENDUM
pursuant to Section 6, Additional Services, of the ARTIST CONTRACTS, and the Parties agree to
mutually determine an equitable adjustment in Time of Performance of these Additional Services.
Further, by signing this FIRST JOINT ADDENDUM, the representatives of CITY and
ARTISTS represent that they are duly authorized to execute this FIRST JOINT ADDENDUM, and
that the parties have agreed to be bound by the provisions the ARTIST CONTRACTS and this FIRST
JOINT ADDENDUM. This FIRST JOINT ADDENDUM shall be in effect as long as the ARTIST
CONTRACTS, and any subsequent renewals of the ARTIST CONTRACTS, are in effect.
IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year first
above written.
CITY OF WICHITA, KANSAS CONSTANCE ERNATT, d/b/a
ERNATT ART AND BRONZE
By _______________________________ By
________________________
Brandon J. Whpple, MayorConstance Ernatt
(SEAL)ATTEST:___________________________Karen Sublett, City Clerk
KENT WILLIAMS, d/b/a
KENT WILLIAMS ENVIRONMENTAL DESIGN
By _______________________________
Kent Williams APPROVED AS TO FORM:
_______________________Jennifer Magana, City Attorney & Director of Law
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SITE PLANHARVEST PARK POOL
SITE PLANMINISA PARK POOL
13 May 2020Ernatt Art & Bronze / kwed
Ernatt Art & Bronze
Phase 2Aquatics Master Plan38
RESOLUTION NO. 20-159
A RESOLUTION AMENDING AND SUPPLEMENTING RESOLUTION NO. 19-390 OF THE CITY OF WICHITA, KANSAS WHICH AUTHORIZED THE ISSUANCE OF GENERAL OBLIGATION BONDS TO PAY THE COSTS OFCERTAIN PUBLIC IMPROVEMENTS IN THE CITY.
WHEREAS, the City of Wichita, Kansas (the “City”) is a municipal corporation, duly created, organized and existing under the Constitution and laws of the State; and
WHEREAS, the Governing Body is authorized, pursuant to K.S.A. 13-1024c, as amended by Charter Ordinance No. 156 of the City (the “Act”) to issue general obligation bonds of the City without an election for the purpose of paying for the construction, purchase or improvement of any public improvement, including the land necessary therefore, and for the purpose of rebuilding, adding to or extending the same as the necessities of the City may require and for the purpose of paying for certain personal property therefore; and
WHEREAS, the Governing Body has heretofore by Resolution No. 19-390 of the City (the “Prior Resolution”), authorized the following described public improvements:
The Aquatic Master Plan will renovate pools at Aley, Harvest, Minisa, College Hill, Orchard and McAdams Parks and build new water playgrounds at Evergreen, Edgemoor, Boston, Harrison, Planeview and Linwood Parks (482-11006).
(the “Project”) and provided for the payment of all or a portion of the costs thereof by the issuance of general obligation bonds of the City pursuant to the Act; and
BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF WICHITA, KANSAS, AS FOLLOWS:
Section 1. Amendment. Section 1 of the Prior Resolution is hereby amended to read as follows:
Section 1. Amendment. Section 1 of Resolution No. 19-275 is hereby amended to read as follows:
Section 1. Amendment. Sections 1 and 2 of Resolution No. 18-148 are hereby amended to read as follows:
Section 1. Amended Project Authorization It is hereby authorized, ordered and directed that the Project be acquired and/or constructed at an estimated cost of $22,150,000 in accordance with specifications prepared or approved by the City Engineer.
Section 2. Project Financing. All or a portion of the costs of the Project, interest on financing and administrative and financing costs shall be financed with the proceeds of general obligation bonds of the City (the “Bonds”). The Bonds may be issued to reimburse expenditures made on or after the date which is 60 days before May 15, 2018,to the extent of Bonds authorized under the original version of Resolution No. 18-148,and 60 days before August 6, 2019, to the extent of Bonds authorized under the original version of Resolution No. 19-275, and 60 days before October 15, 2019, to the extent of Bonds authorized under the original version of Resolution No. 19-390 and 60 days before the date of adoption of this Resolution, to the extent of the increased authorization contained herein, all pursuant to Treasury Regulation §1.150-2. 39
Section 2. Repealer; Ratification. Section 1 of the Prior Resolution is hereby repealed; and the rest and remainder thereof is hereby ratified and confirmed.
Section 3. Effective Date. This Resolution shall be in full force and effect from and after its adoption by the Governing Body.
ADOPTED by the City Council of the City of Wichita, Kansas, on June 2, 2020.
(SEAL)Brandon J. Whipple, Mayor
ATTEST:
Karen Sublett, City Clerk
APPROVED AS TO FORM:
Jennifer Magaña, City Attorney and Director of Law
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Agenda Item No. V-3
City of WichitaCity Council Meeting
June 2, 2020
TO: Mayor and City Council
SUBJECT: Funding and Change Order Limit Adjustment for Improvements to Pawnee from119th to 135th Streets West (District IV)
INITIATED BY: Department of Public Works & Utilities
AGENDA: New Business
Recommendation: Approve the budget, adopt the amending resolution and change order modification resolution.
Background: On August 20, 2019, the City Council approved a design agreement with Baughman Company to improve Pawnee between 119th and 135th Streets West. A number of concerns related to the safety of the existing narrow lanes and the open ditch sections have been evaluated. The roadway has minimal shoulder width, putting the ditches, some with considerable depth, directly adjacent to motoristsand school busses.
Analysis: The current roadway is a two lane asphalt mat street. The proposed improvements will provide a hybrid section with two wider driving lanes, an improved shoulder on the south side and an urban standard street with curb and gutter and underground storm sewer on the north side. Due to right-of-way constraints and projected nominal traffic increases, the proposed two-lane roadway is a more cost effective solution than the typical three-lane urban section, while providing effective and safe traffic management. The roadway will be designed so a third lane could be added in the future with minimalimpacts to the proposed improvements. The north side of Pawnee will be developed to provide accommodations for a future multi-use path.
Additionally, without increasing the change order limit, all change orders above the $50,000 limit established by ordinance will require approval by the City Council regardless of cost. The approximate six-week process for change order approval will result in significant delays with increased costs. Due to the size and complexity of the project, staff recommends an increase in the change order limit to 6% of the bid amount, which is estimated to be $102,000. Increasing the staff authority level for change order approval will not increase the project budget.
Financial Considerations: The existing budget is $300,000, which was approved by the City Council on August 20, 2019. The 2019-2028 Adopted Capital Improvement Program (CIP) includes funding in the amount of $1,700,000 in 2020. This project is identified in the CIP as being eligible for Local Sales Tax funding. Staff recommends initiating $1,700,000 at this time for construction for a total budget of $2,000,000.
Legal Considerations: The amending resolution and change order modification resolution have beenreviewed and approved as to form by the Law Department.
Recommendation/Action: It is recommended that the City Council approve the budget, amending resolution and change order modification resolution, and authorize the necessary signatures.
Attachments: Amending resolution and change order modification resolution.41
Resolution No. 20-160
A RESOLUTION TO MODIFY THE CHANGE ORDER POLICY GOVERNING THE CONSTRUCTION OF A SINGLE PUBLIC WORKS PROJECT AS ALLOWED BY CHARTER ORDINANCE 228:
WHEREAS, the construction of major public works projects routinely entail the need to make contract modifications for field conditions, quantity adjustments, and other alterations necessary for efficient and effective project completion; and
WHEREAS, the use of public bidding followed by use of professional City staff for project oversightprotects against cost overruns that do not inure to the benefit of the public; and
WHEREAS, Pawnee between 119th Street West to 135th Street West project covered by contract number 472-2019-085556 qualifies as such a major public work construction project. Continued, timelyprosecution of that work is in the best interest of the public and nearby commercial and residential property owners;
WHEREAS, an increase in the level of change orders allowed without additional Council approval, as authorized in Charter Ordinance 228, will allow responsible project management to continue without costly and inconvenient construction delays;
NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF WICHITA ON THIS 2nd DAY OF June 2020 that,
1. The City Council for the City of Wichita, Kansas hereby adopts and approves a one-time
modification to the change order limit governing the Pawnee between 119th Street West to
135th Street West project covered by contract number 472-2019-085556. This modification
grants City staff authority to approve change orders for the Pawnee between 119th Street
West to 135th Street West project up to a cumulative cost not exceeding six (6%) of the
original contract price without separate City Council approval.
2. This policy is effective only for project change order work that both arises from unforeseen
conditions that are discovered after bids are let and that does not expand the scope of work to
be performed under the original contract. Work that is not the result of unforeseen conditions
or that expands the scope of the contract work is to be separately bid.
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ADOPTED AT WICHITA, KANSAS BY THE GOVERNING BODY OF THE CITY OF WICHITA ON THIS 2nd DAY OF June, 2020.
__________________________________ BRANDON J. WHIPPLE, MAYOR
ATTEST:
___________________________________ KAREN SUBLETT, CITY CLERK
(SEAL)
APPROVED AS TO FORM:
___________________________________ JENNIFER MAGAÑA, CITY ATTORNEY AND DIRECTOR OF LAW
43
RESOLUTION NO. 20-161
A RESOLUTION DECLARING IT NECESSARY TO ISSUE GENERAL OBLIGATION SALES TAX BONDS OF THE CITY OF WICHITA, KANSAS, FOR THE PURPOSE OF PAYING THE COSTS OF FINANCING ROAD AND HIGHWAY IMPROVEMENTS OF THE CITY; AND PROVIDING FOR THE GIVING OF NOTICE OF SAID INTENTION AS REQUIRED BY LAW.
WHEREAS, the City of Wichita, Kansas (the “City”) is a municipal corporation, duly created, organized and existing under the Constitution and laws of the State; and
WHEREAS, Sedgwick County, Kansas (the “County”) pursuant to the authority of K.S.A. 12-187 et seq. (the “Act”) imposes a one percent (1%) retailers’ sales tax within the County (the “Sales Tax� ); and
WHEREAS, pursuant to the Act, the City is the recipient of funds derived from the Sales Tax and is authorized pursuant to K.S.A. 12-195b to issue general obligation bonds secured by a pledge of the Sales Tax, provided certain procedural requirements contained in the Act are satisfied and the city obtains a comprehensive feasibility study showing that the City’s revenues from such Sales Tax will be sufficient to retire such Bonds; and
WHEREAS, pursuant to the Act, the City Council (the “Governing Body”) of the City has heretofore passed Ordinance No. 41-815 pledging one-half of the City’s receipts from the Sales Tax for the purpose of financing the costs of road, highway and bridge projects in the city and related right-of-way acquisition; and
WHEREAS, the Governing Body, by separate Resolution, has found it necessary and desirable to make certain public road and highway improvements described as “design, right-of-way acquisition and construction of improvements for Pawnee, between 119th Street West to 135th Street West (472-2019-085556) (the “Improvements� ); and
WHEREAS, the City is authorized under the laws of the State of Kansas to issue general obligation bonds to construct the Improvements; and
WHEREAS, the Governing Body hereby finds and determines it to be necessary to issue sales tax/general obligation bonds under the authority of the Act for purposes of financing the costs of the Improvements and to pledge fifty percent (50%) of the City’s revenues from the Sales Tax to the payment of such sales tax/general obligation bonds:
BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF WICHITA, KANSAS, AS FOLLOWS:
Section 1. Bond Authorization. It is hereby determined and declared to be necessary to issue sales tax/general obligation bonds for the purpose of paying $1,700,000 of the costs of the Improvements and related interest and financing costs (the “Bonds”). The Bonds shall be general obligation bonds of the City, to be paid and secured by a pledge of a portion of the City’s receipts from the Sales Tax as set forth in Section 2 hereof, and, if not so paid, shall be paid from ad valorem taxes which may be levied by the City for such purpose without limit as to rate or amount. The Bonds may be issued to reimburse expenditures made on or after the date 60 days prior to the date of adoption of this Resolution, pursuant to Treasury Regulation § 1.150-2.
Section 2. Pledge of Sales Tax. The Governing Body hereby pledges fifty percent (50%) of City’s revenues from the Sales Tax to the payment of the Bonds.
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Section 3. Publications. This Resolution shall be published once a week for two 92 consecutive weeks in the official newspaper of the City. If within thirty (30) days after the final publication, there shall be filed with the Sedgwick County Election Commissioner, a written petition requesting an election on the issuance of the Bonds and the pledge of the Sales Tax, signed by not less than five percent (5%) of the electors of the City who voted at the last preceding general election of the City, then no such Bonds shall be issued or Sales Tax pledged unless such proposition shall be submitted to and approved by a majority of the voters of the City voting at an election held thereon. If no sufficient protest is filed within the period of time hereinbefore stated, then the Governing Body shall be authorized to issue the Bonds pursuant to the act and pledge a portion of the City’s portion of the Sales Tax to the payment thereof.
Section 4. Effective Date. This Resolution shall be in full force and effect from and after its adoption by the Governing Body.
ADOPTED by the City Council of the City of Wichita, Kansas, on June 2, 2020.
(SEAL)Brandon J. Whipple, Mayor
ATTEST:
Karen Sublett, City Clerk
APPROVED AS TO FORM:
Jennifer Magaña, City Attorney and Director of Law
45
RESOLUTION NO. 20-162
A RESOLUTION AMENDING AND SUPPLEMENTING RESOLUTION NO. 19-306 OF THE CITY OF WICHITA, KANSAS WHICH AUTHORIZED THE ISSUANCE OF GENERAL OBLIGATION BONDS TO PAY THE COSTS OFCERTAIN PUBLIC IMPROVEMENTS IN THE CITY.
WHEREAS, the City of Wichita, Kansas (the “City”) is a municipal corporation, duly created, organized and existing under the Constitution and laws of the State; and
WHEREAS, the Governing Body is authorized, pursuant to K.S.A. 13-1024c, as amended by Charter Ordinance No. 156 of the City (the “Act”) to issue general obligation bonds of the City without an election for the purpose of paying for the construction, purchase or improvement of any public improvement, including the land necessary therefore, and for the purpose of rebuilding, adding to or extending the same as the necessities of the City may require and for the purpose of paying for certain personal property therefore; and
WHEREAS, the Governing Body has heretofore by Resolution No. 19-306 of the City (the “Prior Resolution”), authorized the following described public improvements:
Design, right-of-way acquisition and staff oversight for Pawnee between 119th Street West to 135th
Street West as necessary for a major traffic facility (472-2019-085556).
(the “Project”) and provided for the payment of all or a portion of the costs thereof by the issuance of general obligation bonds of the City pursuant to the Act.
WHEREAS, the Governing Body now deems it necessary and desirable to expand the scope of work to include construction in relation to the Amended Project:
Design, right-of-way acquisition, construction and staff oversight for Pawnee between 119th Street West to 135th Street West as necessary for a major traffic facility (472-2019-085556).
BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF WICHITA, KANSAS, AS FOLLOWS:
Section 1. Amendment. Sections 1 and 2 of the Prior Resolution are hereby amended to read as follows:
Section 1. Amended Project Authorization. It is hereby authorized, ordered and directed that the Project be acquired and/or constructed at an estimated cost of $2,000,000 in accordance with specifications prepared or approved by the City Engineer.
Section 2. Project Financing. All or a portion of the costs of the Project, interest on financing and administrative and financing costs shall be financed with the proceeds of general obligation bonds of the City (the “Bonds”). The Bonds may be issued to reimburse expenditures made on or after the date which is 60 days before August 20, 2019, to the extent of Bonds authorized under the original version of Resolution No. 19-306, and 60 days before the date of adoption of this Resolution, to the extent of the increased authorization contained herein, all pursuant to Treasury Regulation §1.150-2.
Section 2. Repealer; Ratification. Sections 1 and 2 of the Prior Resolution are hereby repealed; and the rest and remainder thereof is hereby ratified and confirmed.
Section 3. Effective Date. This Resolution shall be in full force and effect from and after its adoption by the Governing Body.
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ADOPTED by the City Council of the City of Wichita, Kansas, on June 2, 2020.
(SEAL)Brandon J. Whipple, Mayor
ATTEST:
Karen Sublett, City Clerk
APPROVED AS TO FORM:
Jennifer Magaña, City Attorney and Director of Law
47
Agenda Item No. V-4
City of WichitaCity Council Meeting
June 2, 2020
TO: Mayor and City Council
SUBJECT: 2020 Justice and Mental Health Collaboration Program Competitive Grant
INITIATED BY: Wichita Police Department
AGENDA: New Business
Recommendation: Approve the 2020 Justice and Mental Health Collaboration Program (JMHCP) grant application and authorize the Mayor to sign the grant upon award.
Background: The JMHCP gives support to law enforcement and other criminal justice agencies to partner with mental health agencies to reduce crime and recidivism associated with people with mental illnesses.
The Wichita Police Department (WPD) responds to an increasing number of behavioral health-related calls, which are primarily a result of cuts to mental health treatment in Kansas. Due to these cuts, the default first responders are police officers. Over the last 10 years, the number of mental health crisis calls for the WPD has consumed large amounts of resources and created rising risks for officers and those in crisis. Current data shows the number of mental health calls for service has increased by 69% since 2009. These calls have become a revolving door for many offenders and their reoccurring problems. WPD continues to struggle with the gaps in the mental health care system. There have been instances where individuals in crisis have been injured as a result of the actions they have taken due to their condition. For example, within five days in May 2019, there were two officer-involved shootings involving individuals in a mental health crisis that fired a weapon at police officers and neighbors. WPD, along with Sedgwick County COMCARE, and Sedgwick County EMS, has been working toward a change in response to thesecalls.
Analysis: The primary grant funding request is to fund a new full-time Police Officer position, a full-time Paramedic, and a Licensed Master Social Worker (LMSW) position to be part of a triad co-responder team to individuals in crisis. Sedgwick County COMCARE and Sedgwick County EMS would be sub-recipients of the grant. Together, the Police Officer and LMSW, along with a Paramedic, will co-respond to crisis calls and work toward assisting individuals in crisis to get the necessary help needed toreduce recidivism and free police officers to respond to other calls in the City of Wichita. An ICT-1 trial period began in August of 2019. Since that time, they were able to treat in place 56% of those in crisis. The national average is 50%. Additionally, ICT-1 has been able to free up almost five hundred 911 resources for other dispatched calls. However, there is no funding currently to cover personnel costs and additional costs associated with ICT-1. Grant funding will allow this trial to become a three-yearprogram.
Financial Considerations: WPD is requesting $750,000 from the JMHCP grant. 80% of the requested amount for years one and two will be provided from the JMHCP funding. 20% of years one and two will be provided by an in-kind match (personnel and operational costs) by WPD, Sedgwick County COMCARE, and Sedgwick County EMS. For year three, 60% of the requested amount will be provided from JMHCP, and 40% will be provided by an in-kind match (personnel and operational costs) by WPD, Sedgwick County COMCARE, and Sedgwick County EMS.
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Legal Considerations: The Law Department has reviewed and approved the grant application as to form.
Recommendations/Actions: It is recommended the City Council approve the grant application and authorize the Mayor to sign the grant upon award.
Attachments: None.
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1
Agenda Item No. V-5
City of WichitaCity Council Meeting
June 2, 2020
TO: Mayor and City Council
SUBJECT: CDBG Funding Allocation for Case Management; Homeless Services
INITIATED BY: Housing and Community Services Department
AGENDA: New Business
Recommendation: Approve the CDBG CARES Act funding allocations in the total amount of $209,361, approve the funding agreements, and authorize the necessary signatures.
Background: The City of Wichita is recognized as an entitlement city by the U.S. Department of Housing and Urban Development, and receives Federal funding for community development activities. Specific entitlement funding sources include the Community Development Block Grant (CDBG)program, the HOME Investment Partnerships program, and the Emergency Solutions Grant (ESG) program.
The CDBG program provides funding to local governments to develop viable urban communities by providing decent housing and a suitable living environment and by expanding economic opportunities for low-moderate income persons.
Analysis: In addition to the City’s 2019-2020 annual funding allocation of $2,806,594, the City will receive $ 1,725,897 in additional CDBG funding authorized by the Coronavirus Aid, Relief and Economic Security Act (CARES Act). CDBG funding authorized by the CARES Act must be used to prevent, prepare for, and respond to the coronavirus (COVID-19) public health emergency.
United Way of the Plains, Inc. (United Way), is the lead agency for Impact ICT (formerly known as the Wichita-Sedgwick County Continuum of Care), a local collaboration that addresses homelessness. Impact ICT is a group of community stakeholders that coordinates local homelessness planning, services, funding applications, and other activities. Impact ICT has identified a need for a case management services program that will assist identified homeless individuals and families in securing permanent housing. The program will be part of the effort to slow the spread of the COVID-19 virus within the community.
The Housing and Community Services Department developed a funding application that was distributed to the various organizations that make up Impact ICT. Organizations submitting applications are to have demonstrated capacity in providing case management services, as well as staffing sufficient to provide a full-time case worker. The case worker will assist homeless individuals and families in securing permanent housing utilizing all available resources within the community. Case workers are also expected to assist with other needs of the individuals and families served, such as securing employment, applying for available benefits, addressing mental health and substance abuse needs, maintaining their housing, and mediating tenant/landlord issues. Case workers are also expected to assist identified homeless individuals and families on the Impact ICT “By Name List,” which is maintained by United Way, in securing permanent housing.
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Housing and Community Services staff reviewed applications submitted for the program, and recommended the following funding allocations:
Substance Abuse Center of Kansas, Inc.: $80,188
Mental Health Association Residential Care, Inc.: $68,390
United Methodist Open Door, Inc.: $60,783
Funding provided will cover salaries and benefits expenses, telephone expenses, automobile mileage expenses, and office supplies, as well as housing application fees, security deposits, and expenses related to obtaining identification for the clients served.
Financial Considerations: There is no impact to the General Fund, as a result of this action. CDBGfunding the City will receive through the CARES Act will be utilized to cover the expense.
Legal Considerations: The Law Department will review and approve the funding agreements as to form.
Recommendations/Actions: It is recommended that the City Council approve the CDBG CARES Act funding allocations in the total amount of $209,361, approve the funding agreements, and authorize the necessary signatures.
Attachments: Funding Agreements
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CONTRACT AGREEMENT
between
THE CITY OF WICHITAHOUSING AND COMMUNITY SERVICES DEPARTMENT
and
MENTAL HEALTH ASSOCIATION RESIDENTIAL CARE, INC.
For
Homeless Case Management Services
Funded through theCommunity Development Block Grant (CDBG) Program
CARES ActPerformance Period: June 2, 2020 – May 31, 2021
Amount of federal funds obligated by this action: $68,390Total amount of federal funds obligated to this subrecipient: $68,390Total amount of the federal award committed to this subrecipient by the pass-through entity: $68,390
Sally Stang, DirectorHousing and Community Services Department455 N Main StreetWichita, Kansas 67202Phone (316) 462-3725Fax (316) 337-9103
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2
PART AAGREEMENT
THIS CONTRACT (hereinafter the “Agreement”) entered into this 2nd day of June, 2020, and dated to be effective June 2, 2020 by and between the City of Wichita, Kansas (hereinafter the “City”) and Mental Health Association Residential Care, Inc., (hereinafter the “Subrecipient”), located at 555 N. Woodlawn, Suite 3105, Wichita, Kansas 67208.
WITNESSETH THAT:
WHEREAS, the City of Wichita has entered into a funding Agreement with the United States of America for the Department of Housing and Urban Development (hereinafter referred to as HUD) for the execution of projects and activities under Title I of the Housing and Community Development Act of 1974 (Pub. L. 93-383, 42 USC. 5301 et. seq.) under the Community Development Block Grant (CDBG) Program hereinafter referred to as CDBG; and
WHEREAS, the City has entered into a contract with the United States of America for the implementation of a program of local assistance for the City of Wichita pursuant to HUD for implementation of a CDBG program; and
WHEREAS, the department of Housing and Community Services is authorized to act on behalf of the City in implementing this grant Agreement; and
WHEREAS, the cooperation of the City and the Subrecipient is essential for the successful implementation of a public service project under the CDBG program; and
WHEREAS, on June 2, 2020, the Wichita City Council designated $209,361 from anticipated 2019-2020 CDBG funds for Case Management Services for the Homeless; and
WHEREAS, Mental Health Association Residential Care, Inc. submitted a proposal and was selected to provide case management services to individuals and families determined to be homeless and listed on the “By Name List” administered by the United Way of the Plains, Inc., on behalf of Impact ICT; and
WHEREAS, on June 2, 2020, the Wichita City Council obligated federal funds in the amount of$68,390 in CDBG funds for the execution of the approved activity, Mental Health Association Residential Care, Inc.; and
NOW, THEREFORE, the parties hereto do mutually agree that this Agreement is entered into predicated upon the following terms and/or conditions, all and every one of which the parties hereto agree to observe and perform:
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3
1. SCOPE OF SERVICES
1. Scope of Services: Mental Health Association Residential Care, Inc. will provide shelter and supportive services to 15-25 homeless individuals or families which meets the expectations of the funding source CDBG. The Subrecipient will provide case management services to homeless individuals and/or families listed on the Impact ICT “By Name List”, which is administered by United Way of the Plains, Inc., in order to assist them in obtaining permanent housing, maintaining permanent housing, and securing other needed services. Funds will pay for staff salaries and benefits, and other specified costs. Project effectiveness will be demonstrated by specified outcome measurements.
The Subrecipient, assuming responsibility for the implementation of actual operation of a certain project herein specified, shall perform services in a satisfactory and proper manner as determined by the City and as outlined per PART B.
2. Revision of Scope: The performance criteria and objectives may be modified, revised or amended upon the joint written consent of the parties. The City may revise the approved objectives, accomplishments, and budget items in PART B and C when necessary. The Subrecipient may request a budget revision at any time throughout the duration of this Agreement. However, prior to any purchases under the new budget, the City must approve the revision in writing. Approval may be in the form of a letter, a fax, or an email.
2. COMMENCEMENT AND COMPLETION
1. Time of Performance: The services of the Subrecipient are to commence as soon as practicable on or after the date of this contract, and shall be undertaken and completed in such sequence as to assure their expeditious completion in light of the purposes of this contract through a period ending May 31, 2021. All expenditures associated with implementation of this activity must be submitted for reimbursement by July 15, 2021.
2. Close-out Period: The Subrecipient has 30 days following the performance of this activity during which to conduct and complete close-out requirements associated with this Agreement. Final accomplishment and outcome reports are due to the City by July 15, 2021.
3. Contract Completion Date: Unless an extension has been approved by the City in advance, OR unless this Agreement is terminated earlier in accordance with other provisions herein, this agreement will end on July 15, 2021.
3. COMPENSATION AND USE OF FUNDSRegulation for Use of Funds: The use of funds received pursuant to this Agreement shall be in accordance with the requirements of the Housing and Community Development Act of 1974 (as amended), 24 CFR Parts 570, other regulations governing the use of contract funds, and any amendments or policy revisions thereto which shall become effective during the term of this Agreement. It is the Subrecipient’s responsibility to read, understand, and comply with these regulations.
1. Uniform Grant Administrative Requirements and Cost Principles: During the administration of this contract, the Subrecipient shall comply with, and adhere to: a. 2 CFR Chapter II Part 215; andb. 2 CFR Chapter II Part 230
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2. Total Payments: Total amount of funds provided by the City to the Subrecipient under this Agreement shall not exceed $68,390 which must be drawn on a monthly basis. At the sole discretion of the City, any funds remaining unexpended as of July 15, 2021 may be de-obligated from this Agreement and made available for other eligible projects, as determined appropriate by the City.
3. Reimbursement Requests: This is a cost-reimbursement Agreement. Disbursement of funds under this Agreement may be requested only for necessary, reasonable, and allowable costs described in PART B, and for which the Subrecipient has made payment during the period of performance set forth in item Section 2.1 above. The City agrees to reimburse the Subrecipient for such costs, and payment shall be made upon receipt of a request for reimbursement form as provided by the City, accompanied by a monthly progress report from the Subrecipient specifying the services performed and expenses incurred. All requests for reimbursement must be accompanied by an invoice which identifies the address to which payment should be remitted, documentation of payment for eligible expenses (i.e., invoices, receipts, bills from vendors, copies of checks, time sheets, etc.), and other supporting documentation. Supporting documentation must be accompanied by an agency payment voucher providing this information and a copy of the signed check with which the payment was made. Requests for Reimbursement must be received by the 15th day of the month following the month during which the expenditure was paid.
4. Double Reimbursement: The Subrecipient must not claim reimbursement from the City under this Agreement for any portion of its obligations that has been paid by another source of revenue.
5. Restriction on Disbursements: CDBG funds shall not be disbursed to a Subrecipient or contractor except pursuant to a written contract, which incorporates by reference the general conditions of this Agreement. Disbursements may be suspended or terminated under this Agreement upon refusal to accept any additional conditions that may be imposed by the City at any time or if the entitlement funds to the City of Wichita under the Federal Act(s) are suspended or terminated.
6. Withholding Payments: All payments to the Subrecipient are subject to the Subrecipient’s compliance with this Agreement. Any breach of the Agreement is grounds for non-payment until such corrective measures are made which will resolve Agreement non-compliance.
7. Closeout Reimbursement: Closeout billings must be submitted by July 15, 2021. If not submitted, the unexpended funds shall revert to the City of Wichita.
8. Program Income: The Subrecipient agrees to abide by the Program Income Requirements set forth in 24 CFR 570.504(c). Program Income is defined as gross income received by a unit of local government (City) or a Subrecipient of a unit of general local government (City) that was generated from the use of CDBG funds.
The Subrecipient agrees to remit all Program Income to the City within 15 days of its receipt, unless a request is made to the City within that same 15 day period that the Subrecipient would like to spend those funds on other CDBG-eligible costs. The City and/or HUD must approve such requests in writing prior to Subrecipient expenditure of Program Income. Should these requests be approved, verification of the expenditure of Program Income must be provided to the City no later than the contract completion date described in Section 2.1 of this Agreement. If Subrecipient, after City
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approval, chooses not to remit Program Income to the City, the Subrecipient must spend all Program Income on eligible CDBG activities prior to requesting additional reimbursements from the City.
Program Income that is received by the Subrecipient before closeout of the grant that generated the income is treated as additional CDBG funds and is subject to all federal regulations and policies governing the program. Under limited circumstances, the City may approve the use of CDBG Program Income for the purpose of capitalizing a revolving loan fund for specific identified activities. Payments to a revolving loan fund are Program Income and must substantially be disbursed from the revolving loan fund before additional grant funds are drawn from the City for revolving loan fund activities.
Regardless of whether Program Income is remitted to the City or spent on other CDBG-eligible costs, documentation of the receipt of Program Income, such as supporting schedules identifying theproject and the source of income, must be submitted to the City within 15 days of its receipt. When Program Income is generated by an activity that is only partially assisted with CDBG funds, the Program Income shall be prorated to reflect the percentage of said funds used. Donations to the program covered by this agreement are not considered program income.
At the end of the term of this Agreement, as described in Section 2.1, the City may require remittance of all or part of any Program Income balances (including investments thereof) held by the Subrecipient (except those needed for immediate cash needs, cash balances of a revolving loan fund, cash balances from a lump sum draw down, or cash or investments held for Section 108 security needs).
4. USE AND DISPOSITION OF PROPERTY
1. Disposition of Expendable/Non-Expendable Personal Property: The Subrecipient must obtain written authorization from the City before disposing of an item of equipment with an original cost exceeding $1,000. All proceeds from the sale of property purchased with any of these federal funds must be returned to the City. The Subrecipient agrees the City may file the appropriate legal instrument(s) necessary to protect the City’s financial interest.
All office equipment and other personal property purchased in whole or in part with funds pursuant to this contract and used for the administration of this contract or in the administration of a program operated by the City shall be the sole and exclusive property of the City unless otherwise specified in PART B.
Upon expiration and/or termination of any on-ongoing Agreement, the Subrecipient shall immediately return to the City said office equipment and other property unless otherwise authorized by the City.
2. Disposition of Real Property: All real property purchased or otherwise acquired under the terms of this contract shall be under title of the City unless otherwise specified in PART B.
5. ASSIGNMENTS
1. Assignability: Neither the City nor the Subrecipient shall assign, sublet, or transfer their interest in this Agreement without the prior written consent of the other.
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2. Subcontracting/Third Party Contracts: The Subrecipient agrees to furnish the City with a copy of any and all third party contracts that it executes in the performance of the work to be undertaken within the scope of this Agreement.
The Subrecipient agrees to incorporate or cause to be incorporated in all third party contracts or subcontracts funded under the CDBG program provisions requiring all applicable Federal, State, and local laws, rules, and regulations to be adhered to in accordance with all parts of this Agreement. Specifically, the Subrecipient agrees to require and monitor compliance by all contractors, subcontractors, and other third parties. Any third party contract that is not in accordance with the outlined budget in this Agreement shall be subject to the advance, written approval of the City. Furthermore, the City shall not be obligated or liable hereunder to any party other than the Subrecipient.
6. AUDITS AND INSPECTIONS
1. Audits and Inspections: The Subrecipient must establish an adequate accounting system on a current basis in accordance with generally accepted accounting principles and standards and in accordance with any specific requirements of the Controller of the City of Wichita. Subrecipient personnel will make available to City staff and any other auditor authorized by the City, all program and accounting records and financial statements needed to meet the requirements of 2 CFR 200.300 through 200.309 and Subpart F. If any portion of the funds approved by this contract is subcontracted to other organizations for the delivery of objectives and criteria, the Subrecipient will ensure that the fiscal and performance records of the subcontractor will be available for inspection by Comptroller Office personnel or duly authorized auditors; by including appropriate clauses in all of its subcontracts.
Subrecipients that expend $750,000 or more during the fiscal year in Federal Awards must have a single audit conducted for that year in accordance with the provisions of 2 CFR Part 200, Subpart F. Single audit requirements will remain in effect until all sub-award funds are expended and audited.
Any Subrecipient receiving less than $750,000 in Federal funding shall not be required by the City to undergo an annual independent audit of the CDBG expenditures under this Agreement. Furthermore, no expenditures with respect to any such audit undertaken by the Subrecipient of its own initiative shall be chargeable to the funds under this Agreement. All audit reports are due on or before one year after the close of the program year. Before the due date, the Subrecipient should submit to the City (a) an audit report or (b) a letter giving the reason for non-compliance with the due date and requesting an extension of time with a specific date the report will be submitted. In event of the latter, the City will respond in writing to the Subrecipient to approve or disapprove the request.
7. SUBRECIPIENT RESPONSIBILITIES
1. Compliance with Laws: All parties shall comply with all applicable laws, ordinances, codes and regulations of the State of Kansas and local governments. Further, the Subrecipient agrees to perform services pursuant to the provisions of this contract and Federal and City regulations, rules and policies and special assurances included therein.
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2. Non-Municipal Personnel and Services: All services required herein will be performed by the Subrecipient under the direction of its Board of Directors or other governing body. Any services outside the budget line or the Scope of Services which the Subrecipient deems necessary to assign to a subcontractor, must first have written approval from the City unless otherwise specified in PART B.
8. DOCUMENTATION AND RECORD KEEPING
1. Establishment and Maintenance of Records: The Subrecipient shall establish and maintain records as prescribed by HUD and/or the City, with respect to all matters covered by this contract.
2. Record Requirements: The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506 and 570.507, and that are pertinent to the activities to be funded under this Agreement. Such records shall include but are not limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives of the
CDBG program; c. Records required to determine the eligibility of activities and all program participants; d. Records which demonstrate compliance with the requirements in 24 CFR 570.505 regarding any
change of use of real property acquired or improved with CDBG assistance; e. Records that demonstrate compliance with citizen participation requirements; f. Records which demonstrate compliance with requirements in 24 CFR 570.606 regarding
acquisition, displacement, relocation, and replacement housing; g. Records documenting compliance with all Federal Fair Housing and Equal Opportunity
regulations in the use of CDBG funds; h. Financial records that document all transactions and that can be properly documented and
audited, as required by 24 CFR 570.502, and 2 CFR Chapter II Part 215; i. Agreements and other records related to lump sum disbursements to private financial institutions
for financing rehabilitation as prescribed in 24 CFR 570.513; j. Other records necessary to document compliance with Subpart K of 24 CFR 570;k. Copies of all bid documents, bids received, RFPs, RFQs, and any other procurement documents; l. Copies of all third party or subcontracts; and m. Detailed records on Subrecipient’s organization, financial and administrative systems, and the
specific CDBG-funded project(s) or activities.
Please note that the above descriptions are brief and provide only a summary of the records the Subrecipient is required to maintain. The Subrecipient must consult 24 CFR 570.506 for a detailed description of the required records.
3. Retention: In accordance with 24 CFR 91.105(h), citizen participation requirements, the Subrecipient must retain all financial records, supporting documents, statistical records, and all other records pertinent to any and all expenditures incurred under this Agreement, and any other information as requested by the City or by HUD for a period of five years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report to the City of Wichita. Records for non-expendable property acquired with funds under this Agreement shall be retained for five years after final disposition of such property. If any litigation, claim, negotiation, or other action involving the records has been started before the expiration of the five year period, the
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records must be retained until completion of the action and resolution of issues which arise from it, or until the end of the five year period, whichever is later. All files and records will be made available during normal business hours and other reasonable times for review by the City or by HUD.
4. Documentation of Costs: All costs must be supported by proper documentation evidencing in proper detail the nature and propriety of the charges. All checks, payrolls, invoices, contracts, vouchers, orders or other accounting documents pertaining in whole or in part to this contract shall be clearly identified and readily accessible.
5. Inventory Management: The Subrecipient must submit an annual statement identifying the status of all equipment and non-real property items purchased with CDBG funds by the contract termination date. The status report should inventory all equipment and non-real properties purchased with CDBG funds and state the condition of the equipment and its location.
6. Access to Records: The Subrecipient agrees that the City, HUD, or any authorized representative has access to and the right to examine all records, books, papers, or documents related to the project. The City reserves the right, on demand and without notice, to review all of the Subrecipient’s files associated with this Agreement where payments are based on a record of time, salaries, materials, or actual expenses. The same right to review will be imposed upon any third party or subcontractor of the Subrecipient; therefore, it is the Subrecipient’s responsibility to ensure that any contract entered into with a third party or subcontractor contains all necessary clauses and language required by the City and/or HUD to ensure compliance with this Agreement and with all local, state, and Federal regulations.
9. PROGRAM EVALUATION
1. Performance Measures: During the Grant Agreement Period, the Subrecipient agrees to work diligently towards the objectives and projected accomplishments outlined in PART B, and to assist the City in demonstrating appropriate program benefits for the project activities implemented by Subrecipient. If it is determined that any of these objectives will not be completed within the identified timeframe, a request for an extension must be submitted to the City for consideration. However in no instance may accomplishment data reflect activity occurring after May 31, 2020. Such a request must identify the reasons for the extension and must be accompanied by a proposed project timeline that can reasonably be accomplished. Failure to meet the objectives in PART B will represent grounds for imposition of sanctions as found in Section 11.2. Incidents of nonperformance will suspend grant operations until corrective measures are implemented. If the grant is conditioned, access to grant funds will be suspended pending a satisfactory cure to the related incident of nonperformance.
2. Reporting: The Subrecipient is required to submit monthly performance reports as specified in PART
B no later than the 15th calendar day following the start of the new month (unless otherwise specified), as well as other information and data required by the City to respond to current HUD regulations and for the preparation of the Consolidated Annual Performance and Evaluation Report (CAPER) and/or the Integrated Disbursement Information System (IDIS) project set-up and completion activities. Accomplishment and financial reports must be received before the City can
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honor requests for funds. As stated in Section 11.2, sanctions will be imposed upon the Subrecipient for failure to satisfy report due dates.a. The City’s Accomplishment Report form provided as PART D;b. A description of all project activities that have taken place during the reporting period, including
all outreach activities and public participation events; c. Photographs and newspaper/media clippings of progress to date, if applicable; d. A description of any anticipated problems or obstacles, and a plan for how those future obstacles
will be addressed; e. A description of how objectives specified for achievement by that date have been met, OR a
description of obstacles that have prevented those objectives from being met, how those obstacles are being addressed, and a new anticipated date of completion for those objectives;
f. A description and dollar amount of funds spent to date, and how much of those funds have already been reimbursed;
g. A description of the number and qualifying low to moderate income characteristics of persons or households assisted to date;
h. Other supportive information or documentation, as applicable; and i. Any other reports or documentation as requested by the City or HUD.
3. Client Data: The Subrecipient agrees to maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, ethnicity, race, gender, age, head of household, income level, disability, homeless status, or other basis for determining eligibility, and a description of the service provided.
4. Accomplishment Reports: The Subrecipient agrees to submit project activity and progress reports to the City on a monthly basis and other reports as may be required or requested by the City or HUD. Accomplishment Reports will include, as applicable, at a minimum: a. A description of the number and qualifying low to moderate income characteristics of persons or
households assisted with CDBG funds to dateb. List of clients by name, status and progress (with respect to housing), narrative report regarding
other services secured for the client.c. Other supportive information or documentation, as applicable; and d. Any other reports or documentation as requested by the City or HUDe. And requirements listed in section 9.2 above
5. Final Accomplishment Reports: Final, year-end performance reports will also serve as the final project report, and will include, in addition to the requirements listed in items 9.2 and 9.4 above, a thorough assessment of the project, including successes and weaknesses; a comparison of projected accomplishments and objectives to actual accomplishments and goals achieved, including reasons for any discrepancies between the two; notation of any funds that were not expended and reasons why; total number and qualifying low to moderate income characteristics of persons or households assisted with funds or other resources leveraged by using other funds, including any donations that would not have been received without assistance; and identification of future related projects that may be eligible for assistance. This final report will be due July 15, 2021 or the date of final request for reimbursement, whichever is sooner.
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10. PROGRAM MONITORING
1. General: City staff will evaluate progress based on the objectives, criteria, work schedule and budget in PART B, to determine if it is consistent with the initial purpose of the project, the City’s strategies, comprehensive and neighborhood plans, and if it has a positive impact on the City and its neighborhoods. All data necessary to review and monitor project progress as determined by the City will be made available to City personnel. This includes, but is not limited to, performance records and interviews with the Subrecipient staff and project participants, as required by the City. City personnel will also make field inspections at the office/job site(s) if:
a. The Subrecipient fails to take recommended corrective action on two consecutive desk audits;
b. Projects are at high risk of error for activities that serve large number of people;c. Projects are at high risk based on the amount of funds involved.
2. Financial Monitoring: City staff shall monitor, review, and evaluate the financial procedures of the Subrecipient through documents submitted to the City and on-site monitoring. The Subrecipient shall provide and make available to the City such reports and records that will be necessary for a proper financial evaluation. With reasonable notice being given to the Subrecipient, the City may schedule at least one on-site visit and other visits that may be needed during the course of this Agreement.
3. Programmatic Monitoring: City staff shall monitor, review, and evaluate the Subrecipient. Fiscal reports will be reviewed and evaluated in terms of the total budget and accomplishments in relationship to expenditures. With reasonable notice being given to the Subrecipient, the City may schedule at least one on-site visit and other visits that may be needed during the course of this Agreement. At such times and in such forms as the City may require, there shall be furnished to the City such statements, records, data, and information as may be necessary.
The Subrecipient shall at any time and as often as the Housing and Community Services Department, or the City or the Comptroller General, or the Department of Housing and Urban Development, (HUD) or the HUD Inspector General of the United States may deem necessary, make available all its records and data for the purpose of making audits, reviews, examinations, excerpts and transcriptions.
4. Projects Involving Construction or Renovation: For all projects requiring building construction or renovation, the construction/renovation must comply with the City building code and all zoning regulations. Additionally, for construction/renovation projects, including façade improvements, aCity official will complete a site inspection prior to reimbursements to ensure that materials for which a reimbursement is requested are in place on the building. Reimbursements for construction/building materials and façade improvements will only be made once the materials are in place.
5. Monitoring Letters and Reports: Written reports of the City’s monitoring findings will be provided to the Subrecipient within 30 days of an official monitoring visit. Such reports will note outstanding performance as well as findings or concerns and recommendations for improvement.
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6. Subrecipient Response: The Subrecipient shall have 30 days from the receipt of a financial or programmatic monitoring visit letter to address any findings or concerns.
11. TERMINATION, SANCTIONS AND CLOSEOUTS
1. Termination: In the event that the Subrecipient fails to comply with any term of this Agreement, the City may suspend or terminate this Agreement, in whole or in part, or take other remedial action in accordance with 2 CFR 200.338 through 200.342. The City may also terminate this Agreement for convenience.
Furthermore, funding to be made available by the City under this Agreement has been approved by the U.S. Congress. In the event that sufficient funds are not appropriated, at the sole discretion of the City, this Agreement may be terminated in whole or in part.
In the event of termination of this Agreement by the City, due to Subrecipient noncompliance as set forth above, the Subrecipient shall refund to the City all unexpended monies provided under the Agreement. At the City’s discretion, the Subrecipient may also be required to refund all funds awarded during the period of this Agreement that have already been spent by the Subrecipient and reimbursed by the City. Funding may be re-allocated to another subrecipient providing services under this program.
Should the City desire to terminate this Agreement for noncompliance, it shall first give written notice of the reason for proposed termination. The notice shall set forth the following: a. Reasonable description of the default/reason for termination; b. Demand for a cure; and c. Statement of reasonable time within which a cure must be effected. Such reasonable time will be
presumed to be not less than five, nor more than fifteen, business days. Such times shall be measured from the actual receipt of said notice.
If the Subrecipient cures the default within the reasonable period of time set forth in the notice, or as otherwise agreed between the parties, the City shall not terminate the Agreement and the written notice of proposed termination shall be deemed revoked, null and void.
2. Imposition of Sanctions: The City reserves the right to impose sanctions on the Non-profit Subrecipient for the violation of any terms of this Agreement, failure to comply with any terms of this Agreement, or failure to undertake the project in a timely manner. Sanctions may include, but are not necessarily limited to, suspension of grant operations until corrective measures are implemented, withholding any and all project funds, termination of the Agreement, requiring the Non-profit Subrecipient to return funds already received, or barring the Non-profit Subrecipientfrom future funding. No sanction may be imposed pursuant to this paragraph unless the (1) City provides the Non-profit Subrecipient written notice of the alleged violation of a term of this Agreement or alleged failure to comply with any term of this Agreement which (a) provides a reasonable description of the alleged default or reason for proposed imposition of sanction; (b) demands a cure; and (c) provides a reasonable period of time within which a cure must be effected which is not less than five, nor more than fifteen, business days measured from the actual receipt of
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said notice; and (2) the Non-profit Subrecipient fails to cure the alleged default within the reasonable period of time provided for in the notice or as otherwise agreed between the parties.
3. Closeout: The Subrecipient’s obligation to the City shall not end until all closeout requirements are completed. Activities during the close-out period shall include, but are not limited to, submitting final reimbursement request and final activity/progress report to the City, disposing of project assets (including the return of all equipment, program income balances, and receivable accounts to the City), and determining the custodianship of records. Grant closeout is not considered final until the City is fully satisfied that project objectives have been met, at which point the City will issue a close-out/grant finalization letter to the Subrecipient.
4. Reversion of Assets: The Subrecipient agrees that upon termination of this Agreement by any means, all real property of a value in excess of $25,000 under control of the Subrecipient by mortgage contract or otherwise, that is not titled in the name of the city and not so transferred, shall be treated as follows:
a. The property shall be used, for a minimum period of five (5) years from the termination of this Agreement, and for such additional time as determined to be appropriate by the City, to meet the national objective of benefiting low to moderate income persons and/or preventing or eliminating slum or blight.
After satisfaction of the designated time period and an approved use, no payment is due.
b. In lieu of such use, the Subrecipient shall pay to the City an amount equal to the current fair market value of the property, less any portion of the value of the property attributable to expenditures of non-CDBG funds. These payments are Program Income when received.
5. Property of the City: Any data or material furnished by the City to the Subrecipient shall remain the property of the City, and when said data or material is no longer needed by the Subrecipient for the performance of this Agreement, it shall be returned to the City.
12. TAXES
1. Payment of Taxes: The City shall not be liable for the payment of any taxes levied by the City, State, or Federal Governments against the Subrecipient, and all such taxes shall be paid by Subrecipient; however, should the City nevertheless pay any such taxes, the Subrecipient shall immediately reimburse the City.
13. LAWS, REGULATIONS AND SPECIAL CONDITIONS
The information in this Article is included for the convenience of the Subrecipient and to inform the Subrecipient of the diverse statutory and regulatory requirements to which the acceptance of funds makes them subject. For the actual regulatory or statutory requirements, the Subrecipient should consult the actual laws, regulations, and documents referenced in this Article. In addition to the other requirements set forth herein, the Subrecipient shall likewise comply with the applicable provisions of Subpart K of 24 CFR 570, in accordance with the type of project assisted. All of the referenced regulations are available online, and upon request, the City may provide these materials to the Subrecipient.
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1. Debarment and Suspension: In accordance with 24 CFR 24, the Subrecipient shall not employ or otherwise engage any debarred, suspended, or ineligible contractors or subcontractors to conduct any activities under this Agreement. The Subrecipient will consult appropriate references, including but not limited to the Excluded Parties Listing System website at www.sam.gov, to ascertain the status of any third parties prior to engaging their services. The Subrecipient will submit to the City the names of contractors and subcontractors selected under this Agreement, including a certification by the Subrecipient that it has determined that none of these entities are presently debarred, suspended, or ineligible.
2. Emerging Business Enterprises: If a Subrecipient solicits or requests an invitation for bids, every effort feasible will be made to contact emerging, minority-owned, and women-owned business enterprises for a response to the solicitation or invitation for bidders. If utilizing a minority subcontractor, the Subrecipient shall summarize what portion of the project the minority subcontractor handled. At the end of the project, the Subrecipient shall submit a summary of all payments made to the minority subcontractor(s). The Subrecipient shall submit all necessary forms with quarterly reports to assure compliance with this requirement.
3. Building and Zoning Regulations and Permits: The Subrecipient agrees to comply with all laws of City of Wichita and the State of Kansas. In particular, the Subrecipient shall comply with all applicable building and zoning regulations. In addition, the Subrecipient shall obtain all necessary permits for intended improvements or building activities.
4. Environmental Review: In accordance with 24 CFR 570.604, the activities under this Agreement are subject to environmental review requirements. Such requirements may include, but are not necessarily limited to, activities related to historic districts and/or properties, floodplain management and wetland protection, noise, wild and scenic rivers, air quality, farmlands protection, environmental justice, airports, site contamination, and hazardous facilities. There shall not be any costs incurred or obligation of funds until such time as an Environmental Review (ER) is completed for each project (generally one per project). The ER shall be completed by the City. The Subrecipient also agrees to comply with the following regulations insofar as they apply to the use of CDBG funds: a. Clean Air Act, 42 USC, 1857, et seq.; b. Federal Water Pollution Control Act, as amended, 33 USC. 1251, et seq., as amended 1318
relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued there under;
c. Environmental Protection Agency (EPA) regulations pursuant to 40 CFR 50, as amended; d. National Environmental Policy Act of 1969; and e. HUD Environmental Review Procedures (24 CFR 58). Subrecipient should note that completion of the ER is the City’s responsibility. Nothing in this section or in any other part of this Agreement should be construed as relieving the City of this responsibility or placing this responsibility on the Subrecipient.
5. Fire Protection: The Subrecipient agrees to comply with the Fire Administration Authorization Act of 1992. This Act requires that existing dwelling units receiving housing assistance under this
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contract, including operating assistance, must be protected by hard-wired or battery-operated smoke detector(s) installed in accordance with NFPA 72.
6. Section 504 - Persons with Disabilities: The Subrecipient, in the implementation of projects funded by this Agreement and in all of its other operations, will comply with all requirements of Section 504 of the Rehabilitation Act of 1973 (29 USC. 794) (and the implementing regulations at 24 CFR 8), the Americans with Disabilities Act of 1990 (PL 101-336), and all state and local laws requiring physical and program accessibility to people with disabilities, and agrees to defend, hold harmless, and indemnify the City from and against any and all liability for any noncompliance on the part of the Subrecipient.
7. Discrimination Prohibited: No recipient or proposed recipient of any funds, services or other assistance under the provisions of this contract or any program related to this contract shall be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any project or activity funded in whole or in part with the funds made available through this contract on the grounds of race, color, national origin, ancestry, religion, disability, sex or age. For purposes of this section, "project or activity" is defined as any function conducted by an identifiable administrative unit of the Subrecipient receiving funds pursuant to this contract.
The Subrecipient further agrees to implement and comply with the "Revised Non-Discrimination and Equal Employment Opportunity Statement for Contracts or Agreements" as provided in Attachment A.
8. Nepotism: No person shall be employed or contracted with if a member of his or her immediate family is on the Board of Directors of the Subrecipient or is employed in an administrative capacity by the Subrecipient. For the purposes of this section, “immediate family” includes: wife, husband, daughter, son, mother, father, brother, sister, brother-in-law, sister-in-law, father-in-law, mother-in-law, aunt, uncle, niece, nephew, stepparent and stepchild; “administrative capacity” includes those who have selection, hiring, supervisory or operational responsibility for the project.
9. Conflict of Interest: The Subrecipient hereby severally warrants that it will establish and adopt safeguards to prohibit members, officers, and employees from using positions for a purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business, or other ties. Further, In accordance with 24 CFR 570.611, no member, officer, or employee of the Subrecipient who exercises any functions or responsibility with respect to the program during his or her tenure, or for one year thereafter, shall have any financial interest or benefit, direct or indirect, in any contract or subcontract, or the proceeds thereof, either for themselves or those with whom they have family or business ties, for work to be performed in connection with the project assisted under this Agreement.
10. Political Activity Prohibited:a. None of the funds, materials, property or services provided directly or indirectly under this
contract shall be used for partisan political activity.b. The funds provided under this contract shall not be engaged in any way in contravention of
Chapter 15 of Title 5, USC.
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11. Lobbying Prohibited: None of the funds provided under this contract shall be used for lobbying and/or propaganda purposes designed to support or defeat legislation pending before the Congress of the United States of America or the Legislature of the State of Kansas. The Subrecipient shall assure compliance with the regulations at 2 CFR 200.450 by submitting, and requiring all applicable subcontractors to submit, a certification of compliance with this provision.
The Subrecipient certifies to the best of its knowledge and belief that:
a. No Federal appropriated funds have been paid or will be paid, by or on behalf of the Subrecipient to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement;
b. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of congress, or an employee of a Member of Congress in connection with the Federal contract, grant, loan, or cooperative agreement, the Subrecipient will complete and submit Standard Form LLL, "Disclosure Form to Report Lobbying," in accordance with its instruction.
12. Faith-Based Activities: Subrecipient agrees to follow the regulations of 24 CFR 570-Faith-Based activities.
a. Organizations that are religious or faith-based are eligible, on the same basis as any other organization, to participate in the CDBG program. Neither the Federal government nor a State or local government receiving CDBG funds shall discriminate against an organization on the basis of the organization's religious character or affiliation.
b. Organizations receiving CDBG funds may not engage in inherently religious activities, such as worship, religious instruction, or proselytization as part of the programs or services funded under this part. If an organization conducts such activities, the activities must be offered separately, in time or location, from the programs or services funded under this part, and participation must be voluntary for the beneficiaries of the HUD-funded programs or services.
c. A religious organization that receives CDBG funds will retain its independence from Federal, State, and local governments, and may continue to carry out its mission, including the definition, practice, and expression of its religious beliefs, provided that it does not use CDBG funds to support any inherently religious activities, such as worship, religious instruction, or proselytization. Among other things, faith-based organizations may use space in their facilities to provide CDBG-funded services, without removing religious art, icons, scriptures, or other religious symbols. In addition, any CDBG-funded religious organization retains its authority over its internal governance, and it may retain religious terms in its organization's name, select
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its board members on a religious basis, and include religious references in its organization's mission statements and other governing documents.
d. An organization that receives CDBG funds shall not, in providing program assistance, discriminate against a program beneficiary or prospective program beneficiary on the basis of religion or religious belief.
e. CDBG funds shall not be used for the rehabilitation of structures to the extent that those structures are used for inherently religious activities. CDBG funds may be used for the rehabilitation of structures only to the extent that those structures are used for conducting eligible activities under this part. Where a structure is used for both eligible and inherently religious activities, CDBG funds may not exceed the cost of those portions of the rehabilitation that are attributable to eligible activities in accordance with the cost accounting requirements applicable to emergency shelter grants in this part. Sanctuaries, chapels, or other rooms that a CDBG-funded religious congregation uses as its principal place of worship, however, are ineligible for CDBG-funded improvements. Disposition of real property after the term of the grant, or any change in use of the property during the term of the grant, is subject to government-wide regulations governing real property disposition (see 2 CFR 200.311).
f. If a State or local government voluntarily contributes its own funds to supplement federally funded activities, the State or local government has the option to segregate the Federal funds or commingle them. However, if the funds are commingled, this section applies to all of the commingled funds.
14. MISCELLANEOUS CLAUSES AND NOTICES
1. Findings Confidential: Except as provided by law, all reports, information, data, and documentation prepared or assessed by the City or the Subrecipient under this Agreement are confidential. The Subrecipient agrees that the reports shall not be made available to any individual or organization without the prior written approval of the City.
2. Dissemination of Information: The Subrecipient, at such times and in such forms as HUD and/or the City may require, shall furnish to HUD and/or the City, such statements, records, reports, data and information as HUD and/or the City may request pertaining to matters covered by this contract. All reports, information, data and other related materials, prepared or assembled by the Subrecipient under this contract, are confidential and shall not be made available to anyone other than an appropriate agency of the United States government without the prior written approval of the City or as set forth in K.S.A. 45-201 et. seq.
3. Identification of Documents and Projects: All projects, reports, maps, news releases and/or other documents undertaken as part of this contract, other than documents exclusively for internal use with City staff, shall contain the following posted information at the project site or the front cover or title page of any reports or documents, or in the case of maps, in an appropriate block: “City of Wichita”, then name of the Subrecipient, and, in the case of written material, the month and year of preparation and the following information regarding Federal assistance: “The (preparation/funding) of this project, report, map, document, etc., was financed (in whole or in part) through a grant from the U.S.
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Department of Housing and Urban Development and the City of Wichita under the provision of Title I of the Housing and Community Development Act of 1974.”
4. Training Required: It shall be the responsibility of the Subrecipient to participate in all appropriate training conducted by the department of Housing and Community Services or approved by the City of Wichita. The City shall provide timely notice of all training.
5. Copyrights: If this contract results in a book or other material that may be copyrighted, the author is free to copyright the work, subject to HUD regulations. HUD and the City reserve a royalty-free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use all copyrighted material and all material that can be copyrighted.
6. Patents: Any discovery or invention arising out of or developed in the course of work aided by this contract shall promptly and fully be reported to HUD and the City for determination by HUD and the City as to whether patent protection on such invention or patent discovery shall be sought and how the rights in the invention or discovery, including rights under the patent issued thereon, shall be disposed of and administered, in order to protect the public interest. All such determinations are subject to HUD regulations.
7. Anti-Trust Litigation: For good cause, and as consideration for executing this contract, the Subrecipient, acting herein by and through its authorized agent, hereby conveys, sells, assigns and transfers to the City of Wichita all rights, title and interest in and to all causes of action it may now or hereafter acquire under the anti-trust laws of the United States and the State of Kansas, relating to the particular product, products, or services purchased or acquired by the Subrecipient pursuant to this contract.
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15. APPENDICES
All attachments referenced in this Agreement, all amendments mutually agreed upon, and modifications made by both parties are hereby incorporated as though fully set forth herein.
Attachment A – Revised Non-Discrimination and Equal Employment Opportunity Statement for Contracts or Agreements
Part A – AgreementPart B – Performance Criteria/ObjectivesPart C – Budget DetailPart D – Accomplishment Report
[Rest of page intentionally blank]
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16. AUTHORIZATION TO ENTER INTO CONTRACT
The undersigned person signing as an officer on behalf of the Subrecipient, a party to this Agreement, hereby severally warrants and represents that said person has authority to enter into this Agreement on behalf of said Subrecipient and to bind the Subrecipient to this Agreement, and further that said Subrecipient has authority to enter into this Agreement and that there are no restrictions or prohibitions contained in any article of incorporation or bylaw against entering into this Agreement.
SUBRECIPIENT
Mary Jones, Chief Executive Officer DateMental Health Association Residential Care, Inc.
CITY OF WICHITA
Brandon J. Whipple, Mayor Date
ATTEST:
Karen Sublett, City Clerk Date
APPROVED AS TO FORM:
Jennifer Magana, DateCity Attorney and Director of Law
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REVISED NON-DISCRIMINATION ANDEQUAL EMPLOYMENT OPPORTUNITY/AFFIRMATIVE ACTION PROGRAM
REQUIREMENTS STATEMENT FOR CONTRACTS OR AGREEMENTS
During the term of this contract, the contractor or subcontractor, vendor or supplier of the City, by whatever term identified herein, shall comply with the following Nondiscrimination – Equal Employment Opportunity/Affirmative Action Program Requirements:
A. During the performance of this contract, the contractor, subcontractor, vendor or supplier of the City, or any of its agencies, shall comply with all the provisions of the Civil Rights Act of 1964, as amended: The Equal Employment Opportunity Act of 1972; Presidential Executive Orders 11246, 11375, 11131; Part 60 of Title 41 of the Code of Federal Regulations; the Age Discrimination in Employment Act of 1967; the Americans with Disabilities Act of 1990 and laws, regulations or amendments as may be promulgated thereunder.
B. Requirements of the State of Kansas:1. The contractor shall observe the provisions of the Kansas Act against Discrimination (Kansas
Statutes Annotated 44-1001, et seq.) and shall not discriminate against any person in the performance of work under the present contract because of race, religion, color, sex, disability, and age except where age is a bona fide occupational qualification, national origin or ancestry;
2. In all solicitations or advertisements for employees, the contractor shall include the phrase, "Equal Opportunity Employer", or a similar phrase to be approved by the "Kansas Human Rights Commission";
3. If the contractor fails to comply with the manner in which the contractor reports to the "Kansas Human Rights Commission" in accordance with the provisions of K.S.A. 1976 Supp. 44-1031, as amended, the contractor shall be deemed to have breached this contract and it may be canceled, terminated or suspended in whole or in part by the contracting agency;
4. If the contractor is found guilty of a violation of the Kansas Act against Discrimination under a decision or order of the "Kansas Human Rights Commission" which has become final, the contractor shall be deemed to have breached the present contract, and it may be canceled, terminated or suspended in whole or in part by the contracting agency;
5. The contractor shall include the provisions of Paragraphs 1 through 4 inclusive, of this Subsection B, in every subcontract or purchase so that such provisions will be binding upon such subcontractor or vendor.
C. Requirements of the City of Wichita, Kansas, relating to Non-Discrimination -- Equal Employment Opportunity/Affirmative Action Program Requirements:1. The vendor, supplier, contractor or subcontractor shall practice Non-Discrimination -- Equal
Employment Opportunity in all employment relations, including but not limited to employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The vendor, supplier, contractor or subcontractor shall submit an Equal Employment Opportunity or Affirmative Action Program, when required, to the Department of Finance of the City of Wichita, Kansas, in accordance with the guidelines established for review and evaluation;
2. The vendor, supplier, contractor or subcontractor will, in all solicitations or advertisements for employees placed by or on behalf of the vendor, supplier, contractor or subcontractor, state that all
Attachment A
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qualified applicants will receive consideration for employment without regard to race, religion, color, sex, "disability, and age except where age is a bona fide occupational qualification", national origin or ancestry. In all solicitations or advertisements for employees the vendor, supplier, contractor or subcontractor shall include the phrase, "Equal Opportunity Employer", or a similar phrase;
3. The vendor, supplier, contractor or subcontractor will furnish all information and reports required by the Department of Finance of said City for the purpose of investigation to ascertain compliance with Nondiscrimination -- Equal Employment Opportunity Requirements. If the vendor, supplier, con-tractor, or subcontractor fails to comply with the manner in which he/she or it reports to the City in accordance with the provisions hereof, the vendor, supplier, contractor or subcontractor shall be deemed to have breached the present contract, purchase order or agreement and it may be canceled, terminated or suspended in whole or in part by the City or its agency; and further Civil Rights complaints, or investigations may be referred to the State;
4. The vendor, supplier, contractor or subcontractor shall include the provisions of Subsections 1 through 3 inclusive, of this present section in every subcontract, subpurchase order or subagreement so that such provisions will be binding upon each subcontractor, subvendor or subsupplier;
5. If the contractor fails to comply with the manner in which the contractor reports to the Department of Finance as stated above, the contractor shall be deemed to have breached this contract and it may be canceled, terminated or suspended in whole or in part by the contracting agency.
D. Exempted from these requirements are: 1. Those contractors, subcontractors, vendors or suppliers who have less than four (4) employees, whose
contracts, purchase orders or agreements cumulatively total less than five thousand dollars ($5,000) during the fiscal year of said City are exempt from any further Equal Employment Opportunity or Affirmative Action Program submittal.
2. Those vendors, suppliers, contractors or subcontractors who have already complied with the provisions set forth in this section by reason of holding a contract with the Federal government or contract involving Federal funds; provided that such contractor, subcontractor, vendor or supplier provides written notification of a compliance review and determination of an acceptable compliance posture within a preceding forty-five (45) day period from the Federal agency involved.
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Part BPERFORMANCE CRITERIA AND OBJECTIVES
SUBRECIPIENT: MENTAL HEALTH ASSOCIATION RESIDENTIAL CARE, INC. DUNS #: 079099803
CFDA#: 14.218CFDA NAME: COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS –CARESACT
SUBRECIPIENT INFORMATION
ACTIVITY NAME: Mental Health Association Residential Care, Inc.
CHIEF EXECUTIVE OFFICER: Mary Jones
CONTACT PERSON(S): N/AADDRESS (NOT PO BOX): 555 N. Woodlawn, Suite 3105, Wichita, KansasZIP + 4: 67208PHONE: (316) 685-1821
EMAIL: [email protected]
PERFORMANCE PERIOD:
CONTRACT PERIOD:
June 2, 2020 through May 31, 2021
June 2, 2020 through July 15, 2021
FUNDING SOURCE(S): CDBG – CARES Act
HUD OUTCOME PERFORMANCE MEASUREMENTS
NATIONAL OBJECTIVE(S): Low/Mod Benefit Slum/Blight Urgent Need
OBJECTIVE CATEGORY:Sustainable Living Environment Decent Housing Creating Economic Opportunities
OUTCOME CATEGORY:Availability/Accessibility Affordability Sustainability
PROJECT ELIGIBILITY: According to 24 CFR Part 570.208(2)(a) this project qualifies, meeting the CDBG National Objective for limited clientele. This public service activity is limited to homeless individuals and families, who are presumed by HUD to be primarily low and moderate income persons.
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The Subrecipient agrees:
1. It is the principal administrative and coordinating agency for this project, contracting and/or subcontracting outside services, as may be necessary, subject to compliance with all applicable local, state and federal laws; and
2. It is the responsible authority without recourse to the City regarding the settlement and satisfaction of all contractual and administrative issues arising out of the contract entered into; and
3. It will maintain, during the term of this agreement, a filing with the Secretary of the State of Kansas as a not for profit corporation, or shall be designated a 501 (c)(3) tax-exempt organization by the Internal Revenue Service. Evidence of such status will be provided to the City upon request.
Participant Eligibility: According to 24 CFR Part 570.208(2)(a) this project qualifies, meeting the CDBG National Objective for limited clientele. Pursuant to 24 CFR Part 570.506(3)(i), documentation establishing that the service is designed for the particular needs of or used exclusively by homeless individuals and families for which the regulations provide a presumption concerning the extent to which low-and moderate-income persons benefit. This public service activity is limited to homeless individuals or families and therefore presumed by HUD to be primarily low and moderate income.
Goal: To provide case management services to individuals and families on the United Way/Impact ICT “By Name List”, in order to assist said individuals and families to secure permanent housing and to assist with other needs for the individuals and families served.
Project Description/Objectives: Mental Health Association Residential Care, Inc. will dedicate one full-time (40 Hours Per Week) case manager to provide case management services under this agreement, in order to:
Assist homeless individuals and families listed on the United Way/Impact ICT “By Name List” to secure permanent housing using all resources available in the community.
Assist said individuals and families in maintaining their housing and mediating tenant/landlord issues.
Assist said individuals and families in securing applicable and available social services, including but not limited to:
o Securing Employmento Applying for Social Security Benefitso Applying for Food Stampso Assist with Access to Medical Careo Assist with Access to Mental Health Careo Assist with Access to Substance Abuse Services
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Project Content: The Subrecipient shall complete the above objective(s) in a manner acceptable to the City, in accordance with the schedule, budget and conditions detailed herein. The City reserves the right to revise or otherwise alter established objective(s) and criteria during the grant period in an effort to allow for meaningful project measurement and evaluation which will directly impact future funding recommendations.
Outcome Goals: Establish and maintain a case load of 15-25 individuals/families from the “By Name List”
described above, depending on Vulnerability Index – Service Prioritization Decision Assistance Tool
85% of individuals/families served will have secured permanent housing. 50% of individuals and families served will have secured a stable income source - Employment,
Social Security Benefits, etc. 50% of individuals and families served will have established a primary health care provider.
Project Administration: The Subrecipient Program Director will supervise operations and administration on a day-to-day basis.
Procurement Methods: The Subrecipient shall use its own procurement practices which comply with applicable state and local laws, rules and regulations so long as those practices do not unduly limit bidding competition. Additionally, procurement made with federal grant funds shall adhere to the standards set forth in 2 CFR Chapter II Part 215, including:
1. Maintaining a code or standard of conduct governing the performance of the Subrecipient’s officers, employees or agents engaged in awarding and administering contracts supported with Federal funds.
2. Advertising of procurement transactions as appropriate without regard to a dollar value in a manner allowing maximum free and open competition. No sole source procurement (obtaining only one bid) is permitted without prior approval for all purchases except small purchase procedures defined in 2 CFR Chapter II Part 215.
3. Invitations for bids shall be based on specifications developed by the Subrecipient. Said specifications shall be detailed to the extent necessary to solicit comparable bids without unduly limiting competitive bidding.
4. Bids will be awarded on the basis of the lowest and best bid, price and other factors considered.
5. The Subrecipient agrees to purchase services, goods and materials on an “as needed basis” and at the “lowest price obtainable”.
6. The Subrecipient will maintain procurement files outlining procurement efforts for each bid, including names and addresses of bidders solicited, information pertaining to advertising, and solicitation of Small and Emerging Business Enterprise participation. Information will be
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maintained of bid tabulations, justification of bid award, letters of notification to bidders regarding bid award, and any other pertinent information.
Funding: It is mutually agreed by and between the City and the Subrecipient that the City will pass through to the Subrecipient no more than $68,390 in CDBG funds for reimbursement of eligible and necessary expenses, and the Subrecipient will case management services to homeless individuals and/or families listed on the Impact ICT “By Name List”, which is administered by United Way of the Plains, Inc., in order to assist them in obtaining permanent housing, maintaining permanent housing, and securing other needed services. Any costs in excess of $68,390 are the responsibility of the Subrecipient.
Budget: The City shall pay the Subrecipient as hereinafter set out; the maximum of $68,390 for the activity described in this Agreement. Funding under this Agreement shall be originally budgeted as detailed in PART C. Adjustments to budget line items and categories may be made with agreement by both parties to this Agreement.
Indirect Cost Rate: If the Subrecipient chooses to charge Indirect under this grant, the Subrecipient shall provide their indirect cost rate that has been negotiated between their entity and the Federal Government. If the subrecipient has never received a negotiated indirect cost rate a de minimis indirect cost rate of 10% of modified total direct costs (MTDC) may be used.
“Modified Total Direct Costs (MTDC) shall mean all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, and rental costs.
The indirect cost rate charged under this agreement is: N/A. In accord with 24 CFR 570.200(g), no more than 20% of the sum of any award shall be expended for planning and administrative costs.
Method of Payment: The Subrecipient agrees that payments under this contract shall be made according to established budgeting, purchasing and accounting procedures of the City of Wichita and CDBG program.
1. The City and the Subrecipient also agree that the categories of expenditures and amounts are estimates and may vary during the course of the contract. Changes greater than $25,000, other than those within the scope of this agreement must be approved by the City Council.
2. The Subrecipient will ensure all costs are eligible according to the approved budget. The original documentation supporting any expenditure made under this Agreement will be retained in the Subrecipient’s files for five (5) years after the final audit of expenditures made under this contract.
Accomplishment Reports, Financial and Client Files: The Subrecipient shall establish and maintain accounting and project records specifically for the federal funds awarded. Original documentation supporting all reimbursed expenditures and other project records will be retained by the Subrecipient for five (5) years after the final audit of expenditures made under this Agreement.
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1. The Subrecipient must maintain records of persons served by race, ethnicity, and income. Such records are subject to review by the City to ensure the accuracy and validity of information reported in monthly progress reports.
2. Accomplishment reports must be submitted by the 15th of the following month on Part D, Accomplishment Report.
3. Requests for Reimbursement must be submitted on a request for reimbursement form by the 15th of the month following the month the expenditure was paid.
4. Records must be maintained documenting receipts of CDBG program income and expenditures of the same. Goods and services received as program income in lieu of cash must require valuation as an in-kind item with appropriate records maintenance and reporting in the same manner as other program income. Any CDBG attributable income generated by this program shall be retained to offset project costs. Donations to the project covered by this agreement are not considered program income.
5. Additionally, a narrative or other description of progress may be required.
Project Evaluation: The City will evaluate this project based on the objective(s) stated in Part B. Failure by the Subrecipient to provide the level of service stated herein may result in a determination by the City to modify the level of payment to the Subrecipient on a pro rata basis with level of service. Subrecipient records are subject to review by the City to ensure the accuracy and validity of information reported in monthly progress reports.
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Part C
BUDGET:
Delegate Agencies – Payroll $ 35,360
Delegate Agencies – Employee Benefits/Payroll Taxes $ 8,840
Delegate Agencies – Office Supplies $ 0
Delegate Agencies – Mileage $ 8,190
Delegate Agencies – Security Deposits, Application Fees,Identification Expenses $ 16,000
TOTAL $ 68,390
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PART D
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CONTRACT AGREEMENT
between
THE CITY OF WICHITAHOUSING AND COMMUNITY SERVICES DEPARTMENT
and
UNITED METHODIST OPEN DOOR, INC.
For
Homeless Case Management Services
Funded through theCommunity Development Block Grant (CDBG) Program
CARES ActPerformance Period: June 2, 2020 – May 31, 2021
Amount of federal funds obligated by this action: $60,783Total amount of federal funds obligated to this subrecipient: $60,783Total amount of the federal award committed to this subrecipient by the pass-through entity: $60,783
Sally Stang, DirectorHousing and Community Services Department455 N Main StreetWichita, Kansas 67202Phone (316) 462-3725Fax (316) 337-9103
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PART AAGREEMENT
THIS CONTRACT (hereinafter the “Agreement”) entered into this 2nd day of June, 2020, and dated to be effective June 2, 2020 by and between the City of Wichita, Kansas (hereinafter the “City”) and United Methodist Open Door, Inc., (hereinafter the “Subrecipient”), located at 402 E. 2nd Street, Wichita, Kansas, 67202
WITNESSETH THAT:
WHEREAS, the City of Wichita has entered into a funding Agreement with the United States of America for the Department of Housing and Urban Development (hereinafter referred to as HUD) for the execution of projects and activities under Title I of the Housing and Community Development Act of 1974 (Pub. L. 93-383, 42 USC. 5301 et. seq.) under the Community Development Block Grant (CDBG) Program hereinafter referred to as CDBG; and
WHEREAS, the City has entered into a contract with the United States of America for the implementation of a program of local assistance for the City of Wichita pursuant to HUD for implementation of a CDBG program; and
WHEREAS, the department of Housing and Community Services is authorized to act on behalf of the City in implementing this grant Agreement; and
WHEREAS, the cooperation of the City and the Subrecipient is essential for the successful implementation of a public service project under the CDBG program; and
WHEREAS, on June 2, 2020, the Wichita City Council designated $209,361 from anticipated 2019-2020 CDBG funds for Case Management Services for the Homeless; and
WHEREAS, United Methodist Open Door, Inc. submitted a proposal and was selected to provide case management services to individuals and families determined to be homeless and listed on the “By Name List” administered by the United Way of the Plains, Inc., on behalf of Impact ICT; and
WHEREAS, on June 2, 2020, the Wichita City Council obligated federal funds in the amount of$60,783 in CDBG funds for the execution of the approved activity, United Methodist Open Door, Inc.;and
NOW, THEREFORE, the parties hereto do mutually agree that this Agreement is entered into predicated upon the following terms and/or conditions, all and every one of which the parties hereto agree to observe and perform:
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1. SCOPE OF SERVICES
1. Scope of Services: United Methodist Open Door, Inc. will provide shelter and supportive services to 15-25 homeless individuals or families which meets the expectations of the funding source CDBG. The Subrecipient will provide case management services to homeless individuals and/or families listed on the Impact ICT “By Name List”, which is administered by United Way of the Plains, Inc., in order to assist them in obtaining permanent housing, maintaining permanent housing, and securing other needed services. Funds will pay for staff salaries and benefits, and other specified costs. Project effectiveness will be demonstrated by specified outcome measurements.
The Subrecipient, assuming responsibility for the implementation of actual operation of a certain project herein specified, shall perform services in a satisfactory and proper manner as determined by the City and as outlined per PART B.
2. Revision of Scope: The performance criteria and objectives may be modified, revised or amended upon the joint written consent of the parties. The City may revise the approved objectives, accomplishments, and budget items in PART B and C when necessary. The Subrecipient may request a budget revision at any time throughout the duration of this Agreement. However, prior to any purchases under the new budget, the City must approve the revision in writing. Approval may be in the form of a letter, a fax, or an email.
2. COMMENCEMENT AND COMPLETION
1. Time of Performance: The services of the Subrecipient are to commence as soon as practicable on or after the date of this contract, and shall be undertaken and completed in such sequence as to assure their expeditious completion in light of the purposes of this contract through a period ending May 31, 2021. All expenditures associated with implementation of this activity must be submitted for reimbursement by July 15, 2021.
2. Close-out Period: The Subrecipient has 30 days following the performance of this activity during which to conduct and complete close-out requirements associated with this Agreement. Final accomplishment and outcome reports are due to the City by July 15, 2021.
3. Contract Completion Date: Unless an extension has been approved by the City in advance, OR unless this Agreement is terminated earlier in accordance with other provisions herein, this agreement will end on July 15, 2021.
3. COMPENSATION AND USE OF FUNDSRegulation for Use of Funds: The use of funds received pursuant to this Agreement shall be in accordance with the requirements of the Housing and Community Development Act of 1974 (as amended), 24 CFR Parts 570, other regulations governing the use of contract funds, and any amendments or policy revisions thereto which shall become effective during the term of this Agreement. It is the Subrecipient’s responsibility to read, understand, and comply with these regulations.
1. Uniform Grant Administrative Requirements and Cost Principles: During the administration of this contract, the Subrecipient shall comply with, and adhere to: a. 2 CFR Chapter II Part 215; andb. 2 CFR Chapter II Part 230
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2. Total Payments: Total amount of funds provided by the City to the Subrecipient under this Agreement shall not exceed $60,783 which must be drawn on a monthly basis. At the sole discretion of the City, any funds remaining unexpended as of July 15, 2021 may be de-obligated from this Agreement and made available for other eligible projects, as determined appropriate by the City.
3. Reimbursement Requests: This is a cost-reimbursement Agreement. Disbursement of funds under this Agreement may be requested only for necessary, reasonable, and allowable costs described in PART B, and for which the Subrecipient has made payment during the period of performance set forth in item Section 2.1 above. The City agrees to reimburse the Subrecipient for such costs, and payment shall be made upon receipt of a request for reimbursement form as provided by the City, accompanied by a monthly progress report from the Subrecipient specifying the services performed and expenses incurred. All requests for reimbursement must be accompanied by an invoice which identifies the address to which payment should be remitted, documentation of payment for eligible expenses (i.e., invoices, receipts, bills from vendors, copies of checks, time sheets, etc.), and other supporting documentation. Supporting documentation must be accompanied by an agency payment voucher providing this information and a copy of the signed check with which the payment was made. Requests for Reimbursement must be received by the 15th day of the month following the month during which the expenditure was paid.
4. Double Reimbursement: The Subrecipient must not claim reimbursement from the City under this Agreement for any portion of its obligations that has been paid by another source of revenue.
5. Restriction on Disbursements: CDBG funds shall not be disbursed to a Subrecipient or contractor except pursuant to a written contract, which incorporates by reference the general conditions of this Agreement. Disbursements may be suspended or terminated under this Agreement upon refusal to accept any additional conditions that may be imposed by the City at any time or if the entitlement funds to the City of Wichita under the Federal Act(s) are suspended or terminated.
6. Withholding Payments: All payments to the Subrecipient are subject to the Subrecipient’s compliance with this Agreement. Any breach of the Agreement is grounds for non-payment until such corrective measures are made which will resolve Agreement non-compliance.
7. Closeout Reimbursement: Closeout billings must be submitted by July 15, 2021. If not submitted, the unexpended funds shall revert to the City of Wichita.
8. Program Income: The Subrecipient agrees to abide by the Program Income Requirements set forth in 24 CFR 570.504(c). Program Income is defined as gross income received by a unit of local government (City) or a Subrecipient of a unit of general local government (City) that was generated from the use of CDBG funds.
The Subrecipient agrees to remit all Program Income to the City within 15 days of its receipt, unless a request is made to the City within that same 15 day period that the Subrecipient would like to spend those funds on other CDBG-eligible costs. The City and/or HUD must approve such requests in writing prior to Subrecipient expenditure of Program Income. Should these requests be approved, verification of the expenditure of Program Income must be provided to the City no later than the contract completion date described in Section 2.1 of this Agreement. If Subrecipient, after City
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approval, chooses not to remit Program Income to the City, the Subrecipient must spend all Program Income on eligible CDBG activities prior to requesting additional reimbursements from the City.
Program Income that is received by the Subrecipient before closeout of the grant that generated the income is treated as additional CDBG funds and is subject to all federal regulations and policies governing the program. Under limited circumstances, the City may approve the use of CDBG Program Income for the purpose of capitalizing a revolving loan fund for specific identified activities. Payments to a revolving loan fund are Program Income and must substantially be disbursed from the revolving loan fund before additional grant funds are drawn from the City for revolving loan fund activities.
Regardless of whether Program Income is remitted to the City or spent on other CDBG-eligible costs, documentation of the receipt of Program Income, such as supporting schedules identifying the project and the source of income, must be submitted to the City within 15 days of its receipt. When Program Income is generated by an activity that is only partially assisted with CDBG funds, the Program Income shall be prorated to reflect the percentage of said funds used. Donations to the program covered by this agreement are not considered program income.
At the end of the term of this Agreement, as described in Section 2.1, the City may require remittance of all or part of any Program Income balances (including investments thereof) held by the Subrecipient (except those needed for immediate cash needs, cash balances of a revolving loan fund, cash balances from a lump sum draw down, or cash or investments held for Section 108 security needs).
4. USE AND DISPOSITION OF PROPERTY
1. Disposition of Expendable/Non-Expendable Personal Property: The Subrecipient must obtain written authorization from the City before disposing of an item of equipment with an original cost exceeding $1,000. All proceeds from the sale of property purchased with any of these federal funds must be returned to the City. The Subrecipient agrees the City may file the appropriate legal instrument(s) necessary to protect the City’s financial interest.
All office equipment and other personal property purchased in whole or in part with funds pursuant to this contract and used for the administration of this contract or in the administration of a program operated by the City shall be the sole and exclusive property of the City unless otherwise specified in PART B.
Upon expiration and/or termination of any on-ongoing Agreement, the Subrecipient shall immediately return to the City said office equipment and other property unless otherwise authorized by the City.
2. Disposition of Real Property: All real property purchased or otherwise acquired under the terms of this contract shall be under title of the City unless otherwise specified in PART B.
5. ASSIGNMENTS
1. Assignability: Neither the City nor the Subrecipient shall assign, sublet, or transfer their interest in this Agreement without the prior written consent of the other.
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2. Subcontracting/Third Party Contracts: The Subrecipient agrees to furnish the City with a copy of any and all third party contracts that it executes in the performance of the work to be undertaken within the scope of this Agreement.
The Subrecipient agrees to incorporate or cause to be incorporated in all third party contracts or subcontracts funded under the CDBG program provisions requiring all applicable Federal, State, and local laws, rules, and regulations to be adhered to in accordance with all parts of this Agreement. Specifically, the Subrecipient agrees to require and monitor compliance by all contractors, subcontractors, and other third parties. Any third party contract that is not in accordance with the outlined budget in this Agreement shall be subject to the advance, written approval of the City. Furthermore, the City shall not be obligated or liable hereunder to any party other than the Subrecipient.
6. AUDITS AND INSPECTIONS
1. Audits and Inspections: The Subrecipient must establish an adequate accounting system on a current basis in accordance with generally accepted accounting principles and standards and in accordance with any specific requirements of the Controller of the City of Wichita. Subrecipient personnel will make available to City staff and any other auditor authorized by the City, all program and accounting records and financial statements needed to meet the requirements of 2 CFR 200.300 through 200.309 and Subpart F. If any portion of the funds approved by this contract is subcontracted to other organizations for the delivery of objectives and criteria, the Subrecipient will ensure that the fiscal and performance records of the subcontractor will be available for inspection by Comptroller Office personnel or duly authorized auditors; by including appropriate clauses in all of its subcontracts.
Subrecipients that expend $750,000 or more during the fiscal year in Federal Awards must have a single audit conducted for that year in accordance with the provisions of 2 CFR Part 200, Subpart F. Single audit requirements will remain in effect until all sub-award funds are expended and audited.
Any Subrecipient receiving less than $750,000 in Federal funding shall not be required by the City to undergo an annual independent audit of the CDBG expenditures under this Agreement. Furthermore, no expenditures with respect to any such audit undertaken by the Subrecipient of its own initiative shall be chargeable to the funds under this Agreement. All audit reports are due on or before one year after the close of the program year. Before the due date, the Subrecipient should submit to the City (a) an audit report or (b) a letter giving the reason for non-compliance with the due date and requesting an extension of time with a specific date the report will be submitted. In event of the latter, the City will respond in writing to the Subrecipient to approve or disapprove the request.
7. SUBRECIPIENT RESPONSIBILITIES
1. Compliance with Laws: All parties shall comply with all applicable laws, ordinances, codes and regulations of the State of Kansas and local governments. Further, the Subrecipient agrees to perform services pursuant to the provisions of this contract and Federal and City regulations, rules and policies and special assurances included therein.
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2. Non-Municipal Personnel and Services: All services required herein will be performed by the Subrecipient under the direction of its Board of Directors or other governing body. Any services outside the budget line or the Scope of Services which the Subrecipient deems necessary to assign to a subcontractor, must first have written approval from the City unless otherwise specified in PART B.
8. DOCUMENTATION AND RECORD KEEPING
1. Establishment and Maintenance of Records: The Subrecipient shall establish and maintain records as prescribed by HUD and/or the City, with respect to all matters covered by this contract.
2. Record Requirements: The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506 and 570.507, and that are pertinent to the activities to be funded under this Agreement. Such records shall include but are not limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives of the
CDBG program; c. Records required to determine the eligibility of activities and all program participants; d. Records which demonstrate compliance with the requirements in 24 CFR 570.505 regarding any
change of use of real property acquired or improved with CDBG assistance; e. Records that demonstrate compliance with citizen participation requirements; f. Records which demonstrate compliance with requirements in 24 CFR 570.606 regarding
acquisition, displacement, relocation, and replacement housing; g. Records documenting compliance with all Federal Fair Housing and Equal Opportunity
regulations in the use of CDBG funds; h. Financial records that document all transactions and that can be properly documented and
audited, as required by 24 CFR 570.502, and 2 CFR Chapter II Part 215; i. Agreements and other records related to lump sum disbursements to private financial institutions
for financing rehabilitation as prescribed in 24 CFR 570.513; j. Other records necessary to document compliance with Subpart K of 24 CFR 570;k. Copies of all bid documents, bids received, RFPs, RFQs, and any other procurement documents; l. Copies of all third party or subcontracts; and m. Detailed records on Subrecipient’s organization, financial and administrative systems, and the
specific CDBG-funded project(s) or activities.
Please note that the above descriptions are brief and provide only a summary of the records the Subrecipient is required to maintain. The Subrecipient must consult 24 CFR 570.506 for a detailed description of the required records.
3. Retention: In accordance with 24 CFR 91.105(h), citizen participation requirements, the Subrecipient must retain all financial records, supporting documents, statistical records, and all other records pertinent to any and all expenditures incurred under this Agreement, and any other information as requested by the City or by HUD for a period of five years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report to the City of Wichita. Records for non-expendable property acquired with funds under this Agreement shall be retained for five years after final disposition of such property. If any litigation, claim, negotiation, or other action involving the records has been started before the expiration of the five year period, the
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records must be retained until completion of the action and resolution of issues which arise from it, or until the end of the five year period, whichever is later. All files and records will be made available during normal business hours and other reasonable times for review by the City or by HUD.
4. Documentation of Costs: All costs must be supported by proper documentation evidencing in proper detail the nature and propriety of the charges. All checks, payrolls, invoices, contracts, vouchers, orders or other accounting documents pertaining in whole or in part to this contract shall be clearly identified and readily accessible.
5. Inventory Management: The Subrecipient must submit an annual statement identifying the status of all equipment and non-real property items purchased with CDBG funds by the contract termination date. The status report should inventory all equipment and non-real properties purchased with CDBG funds and state the condition of the equipment and its location.
6. Access to Records: The Subrecipient agrees that the City, HUD, or any authorized representative has access to and the right to examine all records, books, papers, or documents related to the project. The City reserves the right, on demand and without notice, to review all of the Subrecipient’s files associated with this Agreement where payments are based on a record of time, salaries, materials, or actual expenses. The same right to review will be imposed upon any third party or subcontractor of the Subrecipient; therefore, it is the Subrecipient’s responsibility to ensure that any contract entered into with a third party or subcontractor contains all necessary clauses and language required by the City and/or HUD to ensure compliance with this Agreement and with all local, state, and Federal regulations.
9. PROGRAM EVALUATION
1. Performance Measures: During the Grant Agreement Period, the Subrecipient agrees to work diligently towards the objectives and projected accomplishments outlined in PART B, and to assist the City in demonstrating appropriate program benefits for the project activities implemented by Subrecipient. If it is determined that any of these objectives will not be completed within the identified timeframe, a request for an extension must be submitted to the City for consideration. However in no instance may accomplishment data reflect activity occurring after May 31, 2020. Such a request must identify the reasons for the extension and must be accompanied by a proposed project timeline that can reasonably be accomplished. Failure to meet the objectives in PART B will represent grounds for imposition of sanctions as found in Section 11.2. Incidents of nonperformance will suspend grant operations until corrective measures are implemented. If the grant is conditioned, access to grant funds will be suspended pending a satisfactory cure to the related incident of nonperformance.
2. Reporting: The Subrecipient is required to submit monthly performance reports as specified in PART
B no later than the 15th calendar day following the start of the new month (unless otherwise specified), as well as other information and data required by the City to respond to current HUD regulations and for the preparation of the Consolidated Annual Performance and Evaluation Report (CAPER) and/or the Integrated Disbursement Information System (IDIS) project set-up and completion activities. Accomplishment and financial reports must be received before the City can
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honor requests for funds. As stated in Section 11.2, sanctions will be imposed upon the Subrecipient for failure to satisfy report due dates.a. The City’s Accomplishment Report form provided as PART D;b. A description of all project activities that have taken place during the reporting period, including
all outreach activities and public participation events; c. Photographs and newspaper/media clippings of progress to date, if applicable; d. A description of any anticipated problems or obstacles, and a plan for how those future obstacles
will be addressed; e. A description of how objectives specified for achievement by that date have been met, OR a
description of obstacles that have prevented those objectives from being met, how those obstacles are being addressed, and a new anticipated date of completion for those objectives;
f. A description and dollar amount of funds spent to date, and how much of those funds have already been reimbursed;
g. A description of the number and qualifying low to moderate income characteristics of persons or households assisted to date;
h. Other supportive information or documentation, as applicable; and i. Any other reports or documentation as requested by the City or HUD.
3. Client Data: The Subrecipient agrees to maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, ethnicity, race, gender, age, head of household, income level, disability, homeless status, or other basis for determining eligibility, and a description of the service provided.
4. Accomplishment Reports: The Subrecipient agrees to submit project activity and progress reports to the City on a monthly basis and other reports as may be required or requested by the City or HUD. Accomplishment Reports will include, as applicable, at a minimum: a. A description of the number and qualifying low to moderate income characteristics of persons or
households assisted with CDBG funds to dateb. List of clients by name, status and progress (with respect to housing), narrative report regarding
other services secured for the client.c. Other supportive information or documentation, as applicable; and d. Any other reports or documentation as requested by the City or HUDe. And requirements listed in section 9.2 above
5. Final Accomplishment Reports: Final, year-end performance reports will also serve as the final project report, and will include, in addition to the requirements listed in items 9.2 and 9.4 above, a thorough assessment of the project, including successes and weaknesses; a comparison of projected accomplishments and objectives to actual accomplishments and goals achieved, including reasons for any discrepancies between the two; notation of any funds that were not expended and reasons why; total number and qualifying low to moderate income characteristics of persons or households assisted with funds or other resources leveraged by using other funds, including any donations that would not have been received without assistance; and identification of future related projects that may be eligible for assistance. This final report will be due July 15, 2021 or the date of final request for reimbursement, whichever is sooner.
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10. PROGRAM MONITORING
1. General: City staff will evaluate progress based on the objectives, criteria, work schedule and budget in PART B, to determine if it is consistent with the initial purpose of the project, the City’s strategies, comprehensive and neighborhood plans, and if it has a positive impact on the City and its neighborhoods. All data necessary to review and monitor project progress as determined by the City will be made available to City personnel. This includes, but is not limited to, performance records and interviews with the Subrecipient staff and project participants, as required by the City. City personnel will also make field inspections at the office/job site(s) if:
a. The Subrecipient fails to take recommended corrective action on two consecutive desk audits;
b. Projects are at high risk of error for activities that serve large number of people;c. Projects are at high risk based on the amount of funds involved.
2. Financial Monitoring: City staff shall monitor, review, and evaluate the financial procedures of the Subrecipient through documents submitted to the City and on-site monitoring. The Subrecipient shall provide and make available to the City such reports and records that will be necessary for a proper financial evaluation. With reasonable notice being given to the Subrecipient, the City may schedule at least one on-site visit and other visits that may be needed during the course of this Agreement.
3. Programmatic Monitoring: City staff shall monitor, review, and evaluate the Subrecipient. Fiscal reports will be reviewed and evaluated in terms of the total budget and accomplishments in relationship to expenditures. With reasonable notice being given to the Subrecipient, the City may schedule at least one on-site visit and other visits that may be needed during the course of this Agreement. At such times and in such forms as the City may require, there shall be furnished to the City such statements, records, data, and information as may be necessary.
The Subrecipient shall at any time and as often as the Housing and Community Services Department, or the City or the Comptroller General, or the Department of Housing and Urban Development, (HUD) or the HUD Inspector General of the United States may deem necessary, make available all its records and data for the purpose of making audits, reviews, examinations, excerpts and transcriptions.
4. Projects Involving Construction or Renovation: For all projects requiring building construction or renovation, the construction/renovation must comply with the City building code and all zoning regulations. Additionally, for construction/renovation projects, including façade improvements, a City official will complete a site inspection prior to reimbursements to ensure that materials for which a reimbursement is requested are in place on the building. Reimbursements for construction/building materials and façade improvements will only be made once the materials are in place.
5. Monitoring Letters and Reports: Written reports of the City’s monitoring findings will be provided to the Subrecipient within 30 days of an official monitoring visit. Such reports will note outstanding performance as well as findings or concerns and recommendations for improvement.
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6. Subrecipient Response: The Subrecipient shall have 30 days from the receipt of a financial or programmatic monitoring visit letter to address any findings or concerns.
11. TERMINATION, SANCTIONS AND CLOSEOUTS
1. Termination: In the event that the Subrecipient fails to comply with any term of this Agreement, the City may suspend or terminate this Agreement, in whole or in part, or take other remedial action in accordance with 2 CFR 200.338 through 200.342. The City may also terminate this Agreement for convenience.
Furthermore, funding to be made available by the City under this Agreement has been approved by the U.S. Congress. In the event that sufficient funds are not appropriated, at the sole discretion of the City, this Agreement may be terminated in whole or in part.
In the event of termination of this Agreement by the City, due to Subrecipient noncompliance as set forth above, the Subrecipient shall refund to the City all unexpended monies provided under the Agreement. At the City’s discretion, the Subrecipient may also be required to refund all funds awarded during the period of this Agreement that have already been spent by the Subrecipient and reimbursed by the City. Funding may be re-allocated to another subrecipient providing services under this program.
Should the City desire to terminate this Agreement for noncompliance, it shall first give written notice of the reason for proposed termination. The notice shall set forth the following: a. Reasonable description of the default/reason for termination; b. Demand for a cure; and c. Statement of reasonable time within which a cure must be effected. Such reasonable time will be
presumed to be not less than five, nor more than fifteen, business days. Such times shall be measured from the actual receipt of said notice.
If the Subrecipient cures the default within the reasonable period of time set forth in the notice, or as otherwise agreed between the parties, the City shall not terminate the Agreement and the written notice of proposed termination shall be deemed revoked, null and void.
2. Imposition of Sanctions: The City reserves the right to impose sanctions on the Non-profit Subrecipient for the violation of any terms of this Agreement, failure to comply with any terms of this Agreement, or failure to undertake the project in a timely manner. Sanctions may include, but are not necessarily limited to, suspension of grant operations until corrective measures are implemented, withholding any and all project funds, termination of the Agreement, requiring the Non-profit Subrecipient to return funds already received, or barring the Non-profit Subrecipientfrom future funding. No sanction may be imposed pursuant to this paragraph unless the (1) City provides the Non-profit Subrecipient written notice of the alleged violation of a term of this Agreement or alleged failure to comply with any term of this Agreement which (a) provides a reasonable description of the alleged default or reason for proposed imposition of sanction; (b) demands a cure; and (c) provides a reasonable period of time within which a cure must be effected which is not less than five, nor more than fifteen, business days measured from the actual receipt of
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said notice; and (2) the Non-profit Subrecipient fails to cure the alleged default within the reasonable period of time provided for in the notice or as otherwise agreed between the parties.
3. Closeout: The Subrecipient’s obligation to the City shall not end until all closeout requirements are completed. Activities during the close-out period shall include, but are not limited to, submitting final reimbursement request and final activity/progress report to the City, disposing of project assets (including the return of all equipment, program income balances, and receivable accounts to the City), and determining the custodianship of records. Grant closeout is not considered final until the City is fully satisfied that project objectives have been met, at which point the City will issue a close-out/grant finalization letter to the Subrecipient.
4. Reversion of Assets: The Subrecipient agrees that upon termination of this Agreement by any means, all real property of a value in excess of $25,000 under control of the Subrecipient by mortgage contract or otherwise, that is not titled in the name of the city and not so transferred, shall be treated as follows:
a. The property shall be used, for a minimum period of five (5) years from the termination of this Agreement, and for such additional time as determined to be appropriate by the City, to meet the national objective of benefiting low to moderate income persons and/or preventing or eliminating slum or blight.
After satisfaction of the designated time period and an approved use, no payment is due.
b. In lieu of such use, the Subrecipient shall pay to the City an amount equal to the current fair market value of the property, less any portion of the value of the property attributable to expenditures of non-CDBG funds. These payments are Program Income when received.
5. Property of the City: Any data or material furnished by the City to the Subrecipient shall remain the property of the City, and when said data or material is no longer needed by the Subrecipient for the performance of this Agreement, it shall be returned to the City.
12. TAXES
1. Payment of Taxes: The City shall not be liable for the payment of any taxes levied by the City, State, or Federal Governments against the Subrecipient, and all such taxes shall be paid by Subrecipient; however, should the City nevertheless pay any such taxes, the Subrecipient shall immediately reimburse the City.
13. LAWS, REGULATIONS AND SPECIAL CONDITIONS
The information in this Article is included for the convenience of the Subrecipient and to inform the Subrecipient of the diverse statutory and regulatory requirements to which the acceptance of funds makes them subject. For the actual regulatory or statutory requirements, the Subrecipient should consult the actual laws, regulations, and documents referenced in this Article. In addition to the other requirements set forth herein, the Subrecipient shall likewise comply with the applicable provisions of Subpart K of 24 CFR 570, in accordance with the type of project assisted. All of the referenced regulations are available online, and upon request, the City may provide these materials to the Subrecipient.
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1. Debarment and Suspension: In accordance with 24 CFR 24, the Subrecipient shall not employ or otherwise engage any debarred, suspended, or ineligible contractors or subcontractors to conduct any activities under this Agreement. The Subrecipient will consult appropriate references, including but not limited to the Excluded Parties Listing System website at www.sam.gov, to ascertain the status of any third parties prior to engaging their services. The Subrecipient will submit to the City the names of contractors and subcontractors selected under this Agreement, including a certification by the Subrecipient that it has determined that none of these entities are presently debarred, suspended, or ineligible.
2. Emerging Business Enterprises: If a Subrecipient solicits or requests an invitation for bids, every effort feasible will be made to contact emerging, minority-owned, and women-owned business enterprises for a response to the solicitation or invitation for bidders. If utilizing a minority subcontractor, the Subrecipient shall summarize what portion of the project the minority subcontractor handled. At the end of the project, the Subrecipient shall submit a summary of all payments made to the minority subcontractor(s). The Subrecipient shall submit all necessary forms with quarterly reports to assure compliance with this requirement.
3. Building and Zoning Regulations and Permits: The Subrecipient agrees to comply with all laws of City of Wichita and the State of Kansas. In particular, the Subrecipient shall comply with all applicable building and zoning regulations. In addition, the Subrecipient shall obtain all necessary permits for intended improvements or building activities.
4. Environmental Review: In accordance with 24 CFR 570.604, the activities under this Agreement are subject to environmental review requirements. Such requirements may include, but are not necessarily limited to, activities related to historic districts and/or properties, floodplain management and wetland protection, noise, wild and scenic rivers, air quality, farmlands protection, environmental justice, airports, site contamination, and hazardous facilities. There shall not be any costs incurred or obligation of funds until such time as an Environmental Review (ER) is completed for each project (generally one per project). The ER shall be completed by the City. The Subrecipient also agrees to comply with the following regulations insofar as they apply to the use of CDBG funds: a. Clean Air Act, 42 USC, 1857, et seq.; b. Federal Water Pollution Control Act, as amended, 33 USC. 1251, et seq., as amended 1318
relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued there under;
c. Environmental Protection Agency (EPA) regulations pursuant to 40 CFR 50, as amended; d. National Environmental Policy Act of 1969; and e. HUD Environmental Review Procedures (24 CFR 58). Subrecipient should note that completion of the ER is the City’s responsibility. Nothing in this section or in any other part of this Agreement should be construed as relieving the City of this responsibility or placing this responsibility on the Subrecipient.
5. Fire Protection: The Subrecipient agrees to comply with the Fire Administration Authorization Act of 1992. This Act requires that existing dwelling units receiving housing assistance under this
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contract, including operating assistance, must be protected by hard-wired or battery-operated smoke detector(s) installed in accordance with NFPA 72.
6. Section 504 - Persons with Disabilities: The Subrecipient, in the implementation of projects funded by this Agreement and in all of its other operations, will comply with all requirements of Section 504 of the Rehabilitation Act of 1973 (29 USC. 794) (and the implementing regulations at 24 CFR 8), the Americans with Disabilities Act of 1990 (PL 101-336), and all state and local laws requiring physical and program accessibility to people with disabilities, and agrees to defend, hold harmless, and indemnify the City from and against any and all liability for any noncompliance on the part of the Subrecipient.
7. Discrimination Prohibited: No recipient or proposed recipient of any funds, services or other assistance under the provisions of this contract or any program related to this contract shall be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any project or activity funded in whole or in part with the funds made available through this contract on the grounds of race, color, national origin, ancestry, religion, disability, sex or age. For purposes of this section, "project or activity" is defined as any function conducted by an identifiable administrative unit of the Subrecipient receiving funds pursuant to this contract.
The Subrecipient further agrees to implement and comply with the "Revised Non-Discrimination and Equal Employment Opportunity Statement for Contracts or Agreements" as provided in Attachment A.
8. Nepotism: No person shall be employed or contracted with if a member of his or her immediate family is on the Board of Directors of the Subrecipient or is employed in an administrative capacity by the Subrecipient. For the purposes of this section, “immediate family” includes: wife, husband, daughter, son, mother, father, brother, sister, brother-in-law, sister-in-law, father-in-law, mother-in-law, aunt, uncle, niece, nephew, stepparent and stepchild; “administrative capacity” includes those who have selection, hiring, supervisory or operational responsibility for the project.
9. Conflict of Interest: The Subrecipient hereby severally warrants that it will establish and adopt safeguards to prohibit members, officers, and employees from using positions for a purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business, or other ties. Further, In accordance with 24 CFR 570.611, no member, officer, or employee of the Subrecipient who exercises any functions or responsibility with respect to the program during his or her tenure, or for one year thereafter, shall have any financial interest or benefit, direct or indirect, in any contract or subcontract, or the proceeds thereof, either for themselves or those with whom they have family or business ties, for work to be performed in connection with the project assisted under this Agreement.
10. Political Activity Prohibited:a. None of the funds, materials, property or services provided directly or indirectly under this
contract shall be used for partisan political activity.b. The funds provided under this contract shall not be engaged in any way in contravention of
Chapter 15 of Title 5, USC.
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11. Lobbying Prohibited: None of the funds provided under this contract shall be used for lobbying and/or propaganda purposes designed to support or defeat legislation pending before the Congress of the United States of America or the Legislature of the State of Kansas. The Subrecipient shall assure compliance with the regulations at 2 CFR 200.450 by submitting, and requiring all applicable subcontractors to submit, a certification of compliance with this provision.
The Subrecipient certifies to the best of its knowledge and belief that:
a. No Federal appropriated funds have been paid or will be paid, by or on behalf of the Subrecipient to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement;
b. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of congress, or an employee of a Member of Congress in connection with the Federal contract, grant, loan, or cooperative agreement, the Subrecipient will complete and submit Standard Form LLL, "Disclosure Form to Report Lobbying," in accordance with its instruction.
12. Faith-Based Activities: Subrecipient agrees to follow the regulations of 24 CFR 570-Faith-Based activities.
a. Organizations that are religious or faith-based are eligible, on the same basis as any other organization, to participate in the CDBG program. Neither the Federal government nor a State or local government receiving CDBG funds shall discriminate against an organization on the basis of the organization's religious character or affiliation.
b. Organizations receiving CDBG funds may not engage in inherently religious activities, such as worship, religious instruction, or proselytization as part of the programs or services funded under this part. If an organization conducts such activities, the activities must be offered separately, in time or location, from the programs or services funded under this part, and participation must be voluntary for the beneficiaries of the HUD-funded programs or services.
c. A religious organization that receives CDBG funds will retain its independence from Federal, State, and local governments, and may continue to carry out its mission, including the definition, practice, and expression of its religious beliefs, provided that it does not use CDBG funds to support any inherently religious activities, such as worship, religious instruction, or proselytization. Among other things, faith-based organizations may use space in their facilities to provide CDBG-funded services, without removing religious art, icons, scriptures, or other religious symbols. In addition, any CDBG-funded religious organization retains its authority over its internal governance, and it may retain religious terms in its organization's name, select
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its board members on a religious basis, and include religious references in its organization's mission statements and other governing documents.
d. An organization that receives CDBG funds shall not, in providing program assistance, discriminate against a program beneficiary or prospective program beneficiary on the basis of religion or religious belief.
e. CDBG funds shall not be used for the rehabilitation of structures to the extent that those structures are used for inherently religious activities. CDBG funds may be used for the rehabilitation of structures only to the extent that those structures are used for conducting eligible activities under this part. Where a structure is used for both eligible and inherently religious activities, CDBG funds may not exceed the cost of those portions of the rehabilitation that are attributable to eligible activities in accordance with the cost accounting requirements applicable to emergency shelter grants in this part. Sanctuaries, chapels, or other rooms that a CDBG-funded religious congregation uses as its principal place of worship, however, are ineligible for CDBG-funded improvements. Disposition of real property after the term of the grant, or any change in use of the property during the term of the grant, is subject to government-wide regulations governing real property disposition (see 2 CFR 200.311).
f. If a State or local government voluntarily contributes its own funds to supplement federally funded activities, the State or local government has the option to segregate the Federal funds or commingle them. However, if the funds are commingled, this section applies to all of the commingled funds.
14. MISCELLANEOUS CLAUSES AND NOTICES
1. Findings Confidential: Except as provided by law, all reports, information, data, and documentation prepared or assessed by the City or the Subrecipient under this Agreement are confidential. The Subrecipient agrees that the reports shall not be made available to any individual or organization without the prior written approval of the City.
2. Dissemination of Information: The Subrecipient, at such times and in such forms as HUD and/or the City may require, shall furnish to HUD and/or the City, such statements, records, reports, data and information as HUD and/or the City may request pertaining to matters covered by this contract. All reports, information, data and other related materials, prepared or assembled by the Subrecipient under this contract, are confidential and shall not be made available to anyone other than an appropriate agency of the United States government without the prior written approval of the City or as set forth in K.S.A. 45-201 et. seq.
3. Identification of Documents and Projects: All projects, reports, maps, news releases and/or other documents undertaken as part of this contract, other than documents exclusively for internal use with City staff, shall contain the following posted information at the project site or the front cover or title page of any reports or documents, or in the case of maps, in an appropriate block: “City of Wichita”, then name of the Subrecipient, and, in the case of written material, the month and year of preparation and the following information regarding Federal assistance: “The (preparation/funding) of this project, report, map, document, etc., was financed (in whole or in part) through a grant from the U.S.
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Department of Housing and Urban Development and the City of Wichita under the provision of Title I of the Housing and Community Development Act of 1974.”
4. Training Required: It shall be the responsibility of the Subrecipient to participate in all appropriate training conducted by the department of Housing and Community Services or approved by the City of Wichita. The City shall provide timely notice of all training.
5. Copyrights: If this contract results in a book or other material that may be copyrighted, the author is free to copyright the work, subject to HUD regulations. HUD and the City reserve a royalty-free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use all copyrighted material and all material that can be copyrighted.
6. Patents: Any discovery or invention arising out of or developed in the course of work aided by this contract shall promptly and fully be reported to HUD and the City for determination by HUD and the City as to whether patent protection on such invention or patent discovery shall be sought and how the rights in the invention or discovery, including rights under the patent issued thereon, shall be disposed of and administered, in order to protect the public interest. All such determinations are subject to HUD regulations.
7. Anti-Trust Litigation: For good cause, and as consideration for executing this contract, the Subrecipient, acting herein by and through its authorized agent, hereby conveys, sells, assigns and transfers to the City of Wichita all rights, title and interest in and to all causes of action it may now or hereafter acquire under the anti-trust laws of the United States and the State of Kansas, relating to the particular product, products, or services purchased or acquired by the Subrecipient pursuant to this contract.
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15. APPENDICES
All attachments referenced in this Agreement, all amendments mutually agreed upon, and modifications made by both parties are hereby incorporated as though fully set forth herein.
Attachment A – Revised Non-Discrimination and Equal Employment Opportunity Statement for Contracts or Agreements
Part A – AgreementPart B – Performance Criteria/ObjectivesPart C – Budget DetailPart D – Accomplishment Report
[Rest of page intentionally blank]
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16. AUTHORIZATION TO ENTER INTO CONTRACT
The undersigned person signing as an officer on behalf of the Subrecipient, a party to this Agreement, hereby severally warrants and represents that said person has authority to enter into this Agreement on behalf of said Subrecipient and to bind the Subrecipient to this Agreement, and further that said Subrecipient has authority to enter into this Agreement and that there are no restrictions or prohibitions contained in any article of incorporation or bylaw against entering into this Agreement.
SUBRECIPIENT
Deann Smith, Executive Director DateUnited Methodist Open Door, Inc.
CITY OF WICHITA
Brandon J. Whipple, Mayor Date
ATTEST:
Karen Sublett, City Clerk Date
APPROVED AS TO FORM:
Jennifer Magana, DateCity Attorney and Director of Law
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REVISED NON-DISCRIMINATION ANDEQUAL EMPLOYMENT OPPORTUNITY/AFFIRMATIVE ACTION PROGRAM
REQUIREMENTS STATEMENT FOR CONTRACTS OR AGREEMENTS
During the term of this contract, the contractor or subcontractor, vendor or supplier of the City, by whatever term identified herein, shall comply with the following Nondiscrimination – Equal Employment Opportunity/Affirmative Action Program Requirements:
A. During the performance of this contract, the contractor, subcontractor, vendor or supplier of the City, or any of its agencies, shall comply with all the provisions of the Civil Rights Act of 1964, as amended: The Equal Employment Opportunity Act of 1972; Presidential Executive Orders 11246, 11375, 11131; Part 60 of Title 41 of the Code of Federal Regulations; the Age Discrimination in Employment Act of 1967; the Americans with Disabilities Act of 1990 and laws, regulations or amendments as may be promulgated thereunder.
B. Requirements of the State of Kansas:1. The contractor shall observe the provisions of the Kansas Act against Discrimination (Kansas
Statutes Annotated 44-1001, et seq.) and shall not discriminate against any person in the performance of work under the present contract because of race, religion, color, sex, disability, and age except where age is a bona fide occupational qualification, national origin or ancestry;
2. In all solicitations or advertisements for employees, the contractor shall include the phrase, "Equal Opportunity Employer", or a similar phrase to be approved by the "Kansas Human Rights Commission";
3. If the contractor fails to comply with the manner in which the contractor reports to the "Kansas Human Rights Commission" in accordance with the provisions of K.S.A. 1976 Supp. 44-1031, as amended, the contractor shall be deemed to have breached this contract and it may be canceled, terminated or suspended in whole or in part by the contracting agency;
4. If the contractor is found guilty of a violation of the Kansas Act against Discrimination under a decision or order of the "Kansas Human Rights Commission" which has become final, the contractor shall be deemed to have breached the present contract, and it may be canceled, terminated or suspended in whole or in part by the contracting agency;
5. The contractor shall include the provisions of Paragraphs 1 through 4 inclusive, of this Subsection B, in every subcontract or purchase so that such provisions will be binding upon such subcontractor or vendor.
C. Requirements of the City of Wichita, Kansas, relating to Non-Discrimination -- Equal Employment Opportunity/Affirmative Action Program Requirements:1. The vendor, supplier, contractor or subcontractor shall practice Non-Discrimination -- Equal
Employment Opportunity in all employment relations, including but not limited to employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The vendor, supplier, contractor or subcontractor shall submit an Equal Employment Opportunity or Affirmative Action Program, when required, to the Department of Finance of the City of Wichita, Kansas, in accordance with the guidelines established for review and evaluation;
2. The vendor, supplier, contractor or subcontractor will, in all solicitations or advertisements for employees placed by or on behalf of the vendor, supplier, contractor or subcontractor, state that all
Attachment A
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qualified applicants will receive consideration for employment without regard to race, religion, color, sex, "disability, and age except where age is a bona fide occupational qualification", national origin or ancestry. In all solicitations or advertisements for employees the vendor, supplier, contractor or subcontractor shall include the phrase, "Equal Opportunity Employer", or a similar phrase;
3. The vendor, supplier, contractor or subcontractor will furnish all information and reports required by the Department of Finance of said City for the purpose of investigation to ascertain compliance with Nondiscrimination -- Equal Employment Opportunity Requirements. If the vendor, supplier, con-tractor, or subcontractor fails to comply with the manner in which he/she or it reports to the City in accordance with the provisions hereof, the vendor, supplier, contractor or subcontractor shall be deemed to have breached the present contract, purchase order or agreement and it may be canceled, terminated or suspended in whole or in part by the City or its agency; and further Civil Rights complaints, or investigations may be referred to the State;
4. The vendor, supplier, contractor or subcontractor shall include the provisions of Subsections 1 through 3 inclusive, of this present section in every subcontract, subpurchase order or subagreement so that such provisions will be binding upon each subcontractor, subvendor or subsupplier;
5. If the contractor fails to comply with the manner in which the contractor reports to the Department of Finance as stated above, the contractor shall be deemed to have breached this contract and it may be canceled, terminated or suspended in whole or in part by the contracting agency.
D. Exempted from these requirements are: 1. Those contractors, subcontractors, vendors or suppliers who have less than four (4) employees, whose
contracts, purchase orders or agreements cumulatively total less than five thousand dollars ($5,000) during the fiscal year of said City are exempt from any further Equal Employment Opportunity or Affirmative Action Program submittal.
2. Those vendors, suppliers, contractors or subcontractors who have already complied with the provisions set forth in this section by reason of holding a contract with the Federal government or contract involving Federal funds; provided that such contractor, subcontractor, vendor or supplier provides written notification of a compliance review and determination of an acceptable compliance posture within a preceding forty-five (45) day period from the Federal agency involved.
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Part BPERFORMANCE CRITERIA AND OBJECTIVES
SUBRECIPIENT: UNITED METHODIST OPEN DOOR, INC. DUNS #: 04-723-7131
CFDA#: 14.218CFDA NAME: COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS –CARESACT
SUBRECIPIENT INFORMATION
ACTIVITY NAME: United Methodist Open Door, Inc.
EXECUTIVE DIRECTOR: Deann Smith
CONTACT PERSON(S): N/AADDRESS (NOT PO BOX): 402 E. 2nd Street, Wichita, KSZIP + 4: 67202PHONE: (316) 265-4064
EMAIL: [email protected]
PERFORMANCE PERIOD:
CONTRACT PERIOD:
June 2, 2020 through May 31, 2021
June 2, 2020 through July 15, 2021
FUNDING SOURCE(S): CDBG – CARES Act
HUD OUTCOME PERFORMANCE MEASUREMENTS
NATIONAL OBJECTIVE(S): Low/Mod Benefit Slum/Blight Urgent Need
OBJECTIVE CATEGORY:Sustainable Living Environment Decent Housing Creating Economic Opportunities
OUTCOME CATEGORY:Availability/Accessibility Affordability Sustainability
PROJECT ELIGIBILITY: According to 24 CFR Part 570.208(2)(a) this project qualifies, meeting the CDBG National Objective for limited clientele. This public service activity is limited to homeless individuals and families, who are presumed by HUD to be primarily low and moderate income persons.
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The Subrecipient agrees:
1. It is the principal administrative and coordinating agency for this project, contracting and/or subcontracting outside services, as may be necessary, subject to compliance with all applicable local, state and federal laws; and
2. It is the responsible authority without recourse to the City regarding the settlement and satisfaction of all contractual and administrative issues arising out of the contract entered into; and
3. It will maintain, during the term of this agreement, a filing with the Secretary of the State of Kansas as a not for profit corporation, or shall be designated a 501 (c)(3) tax-exempt organization by the Internal Revenue Service. Evidence of such status will be provided to the City upon request.
Participant Eligibility: According to 24 CFR Part 570.208(2)(a) this project qualifies, meeting the CDBG National Objective for limited clientele. Pursuant to 24 CFR Part 570.506(3)(i), documentation establishing that the service is designed for the particular needs of or used exclusively by homeless individuals and families for which the regulations provide a presumption concerning the extent to which low-and moderate-income persons benefit. This public service activity is limited to homeless individuals or families and therefore presumed by HUD to be primarily low and moderate income.
Goal: To provide case management services to individuals and families on the United Way/Impact ICT “By Name List”, in order to assist said individuals and families to secure permanent housing and to assist with other needs for the individuals and families served.
Project Description/Objectives: United Methodist Open Door, Inc. will dedicate one full-time (40 Hours Per Week) case manager to provide case management services under this agreement, in order to:
Assist homeless individuals and families listed on the United Way/Impact ICT “By Name List” to secure permanent housing using all resources available in the community.
Assist said individuals and families in maintaining their housing and mediating tenant/landlord issues.
Assist said individuals and families in securing applicable and available social services, including but not limited to:
o Securing Employmento Applying for Social Security Benefitso Applying for Food Stampso Assist with Access to Medical Careo Assist with Access to Mental Health Careo Assist with Access to Substance Abuse Services
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Project Content: The Subrecipient shall complete the above objective(s) in a manner acceptable to the City, in accordance with the schedule, budget and conditions detailed herein. The City reserves the right to revise or otherwise alter established objective(s) and criteria during the grant period in an effort to allow for meaningful project measurement and evaluation which will directly impact future funding recommendations.
Outcome Goals: Establish and maintain a case load of 15-25 individuals/families from the “By Name List”
described above, depending on Vulnerability Index – Service Prioritization Decision Assistance Tool
85% of individuals/families served will have secured permanent housing. 50% of individuals and families served will have secured a stable income source - Employment,
Social Security Benefits, etc. 50% of individuals and families served will have established a primary health care provider.
Project Administration: The Subrecipient Program Director will supervise operations and administration on a day-to-day basis.
Procurement Methods: The Subrecipient shall use its own procurement practices which comply with applicable state and local laws, rules and regulations so long as those practices do not unduly limit bidding competition. Additionally, procurement made with federal grant funds shall adhere to the standards set forth in 2 CFR Chapter II Part 215, including:
1. Maintaining a code or standard of conduct governing the performance of the Subrecipient’s officers, employees or agents engaged in awarding and administering contracts supported with Federal funds.
2. Advertising of procurement transactions as appropriate without regard to a dollar value in a manner allowing maximum free and open competition. No sole source procurement (obtaining only one bid) is permitted without prior approval for all purchases except small purchase procedures defined in 2 CFR Chapter II Part 215.
3. Invitations for bids shall be based on specifications developed by the Subrecipient. Said specifications shall be detailed to the extent necessary to solicit comparable bids without unduly limiting competitive bidding.
4. Bids will be awarded on the basis of the lowest and best bid, price and other factors considered.
5. The Subrecipient agrees to purchase services, goods and materials on an “as needed basis” and at the “lowest price obtainable”.
6. The Subrecipient will maintain procurement files outlining procurement efforts for each bid, including names and addresses of bidders solicited, information pertaining to advertising, and solicitation of Small and Emerging Business Enterprise participation. Information will be maintained of bid tabulations, justification of bid award, letters of notification to bidders regarding bid award, and any other pertinent information.
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Funding: It is mutually agreed by and between the City and the Subrecipient that the City will pass through to the Subrecipient no more than $60,783 in CDBG funds for reimbursement of eligible and necessary expenses, and the Subrecipient will case management services to homeless individuals and/or families listed on the Impact ICT “By Name List”, which is administered by United Way of the Plains, Inc., in order to assist them in obtaining permanent housing, maintaining permanent housing, and securing other needed services. Any costs in excess of $60,783 are the responsibility of the Subrecipient.
Budget: The City shall pay the Subrecipient as hereinafter set out; the maximum of $60,783 for the activity described in this Agreement. Funding under this Agreement shall be originally budgeted asdetailed in PART C. Adjustments to budget line items and categories may be made with agreement by both parties to this Agreement.
Indirect Cost Rate: If the Subrecipient chooses to charge Indirect under this grant, the Subrecipient shall provide their indirect cost rate that has been negotiated between their entity and the Federal Government. If the subrecipient has never received a negotiated indirect cost rate a de minimis indirect cost rate of 10% of modified total direct costs (MTDC) may be used.
“Modified Total Direct Costs (MTDC) shall mean all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, and rental costs.
The indirect cost rate charged under this agreement is: N/A. In accord with 24 CFR 570.200(g), no more than 20% of the sum of any award shall be expended for planning and administrative costs.
Method of Payment: The Subrecipient agrees that payments under this contract shall be made according to established budgeting, purchasing and accounting procedures of the City of Wichita and CDBG program.
1. The City and the Subrecipient also agree that the categories of expenditures and amounts are estimates and may vary during the course of the contract. Changes greater than $25,000, other than those within the scope of this agreement must be approved by the City Council.
2. The Subrecipient will ensure all costs are eligible according to the approved budget. The original documentation supporting any expenditure made under this Agreement will be retained in the Subrecipient’s files for five (5) years after the final audit of expenditures made under this contract.
Accomplishment Reports, Financial and Client Files: The Subrecipient shall establish and maintain accounting and project records specifically for the federal funds awarded. Original documentation supporting all reimbursed expenditures and other project records will be retained by the Subrecipient for five (5) years after the final audit of expenditures made under this Agreement.
1. The Subrecipient must maintain records of persons served by race, ethnicity, and income. Such records are subject to review by the City to ensure the accuracy and validity of information reported in monthly progress reports.
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2. Accomplishment reports must be submitted by the 15th of the following month on Part D, Accomplishment Report.
3. Requests for Reimbursement must be submitted on a request for reimbursement form by the 15th of the month following the month the expenditure was paid.
4. Records must be maintained documenting receipts of CDBG program income and expenditures of the same. Goods and services received as program income in lieu of cash must require valuation as an in-kind item with appropriate records maintenance and reporting in the same manner as other program income. Any CDBG attributable income generated by this program shall be retained to offset project costs. Donations to the project covered by this agreement are not considered program income.
5. Additionally, a narrative or other description of progress may be required.
Project Evaluation: The City will evaluate this project based on the objective(s) stated in Part B. Failure by the Subrecipient to provide the level of service stated herein may result in a determination by the City to modify the level of payment to the Subrecipient on a pro rata basis with level of service. Subrecipient records are subject to review by the City to ensure the accuracy and validity of information reported in monthly progress reports.
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Part C
BUDGET:
Delegate Agencies – Payroll $ 29,120
Delegate Agencies – Employee Benefits/Payroll Taxes $ 8,303
Delegate Agencies – Office Supplies $ 1,800
Delegate Agencies – Cell Phone $ 560
Delegate Agencies – Mileage $ 5,000
Delegate Agencies – Security Deposits, Application Fees,Identification Expenses $ 16,000
TOTAL $ 60,783
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PART D
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CONTRACT AGREEMENT
between
THE CITY OF WICHITAHOUSING AND COMMUNITY SERVICES DEPARTMENT
and
SUBSTANCE ABUSE CENTER OF KANSAS, INC.
For
Homeless Case Management Services
Funded through theCommunity Development Block Grant (CDBG) Program
CARES ActPerformance Period: June 2, 2020 – May 31, 2021
Amount of federal funds obligated by this action: $80,188Total amount of federal funds obligated to this subrecipient: $80,188Total amount of the federal award committed to this subrecipient by the pass-through entity: $80,188
Sally Stang, DirectorHousing and Community Services Department455 N Main StreetWichita, Kansas 67202Phone (316) 462-3725Fax (316) 337-9103
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PART AAGREEMENT
THIS CONTRACT (hereinafter the “Agreement”) entered into this 2nd day of June, 2020, and dated to be effective June 2, 2020 by and between the City of Wichita, Kansas (hereinafter the “City”) and Substance Abuse Center of Kansas, Inc., (hereinafter the “Subrecipient”), located at 731 N. Water St., Suite 2, Wichita, Kansas 67203.
WITNESSETH THAT:
WHEREAS, the City of Wichita has entered into a funding Agreement with the United States of America for the Department of Housing and Urban Development (hereinafter referred to as HUD) for the execution of projects and activities under Title I of the Housing and Community Development Act of 1974 (Pub. L. 93-383, 42 USC. 5301 et. seq.) under the Community Development Block Grant (CDBG) Program hereinafter referred to as CDBG; and
WHEREAS, the City has entered into a contract with the United States of America for the implementation of a program of local assistance for the City of Wichita pursuant to HUD for implementation of a CDBG program; and
WHEREAS, the department of Housing and Community Services is authorized to act on behalf of the City in implementing this grant Agreement; and
WHEREAS, the cooperation of the City and the Subrecipient is essential for the successful implementation of a public service project under the CDBG program; and
WHEREAS, on June 2, 2020, the Wichita City Council designated $209,361 from anticipated 2019-2020 CDBG funds for Case Management Services for the Homeless; and
WHEREAS, Substance Abuse Center of Kansas, Inc. submitted a proposal and was selected to provide case management services to individuals and families determined to be homeless and listed on the “By Name List” administered by the United Way of the Plains, Inc., on behalf of Impact ICT; and
WHEREAS, on June 2, 2020, the Wichita City Council obligated federal funds in the amount of$80,188 in CDBG funds for the execution of the approved activity, Substance Abuse Center of Kansas, Inc.; and
NOW, THEREFORE, the parties hereto do mutually agree that this Agreement is entered into predicated upon the following terms and/or conditions, all and every one of which the parties hereto agree to observe and perform:
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1. SCOPE OF SERVICES
1. Scope of Services: Substance Abuse Center of Kansas, Inc. will provide shelter and supportive services to 15-25 homeless individuals or families which meets the expectations of the funding source CDBG. The Subrecipient will provide case management services to homeless individuals and/or families listed on the Impact ICT “By Name List”, which is administered by United Way of the Plains, Inc., in order to assist them in obtaining permanent housing, maintaining permanent housing, and securing other needed services. Funds will pay for staff salaries and benefits, and other specified costs. Project effectiveness will be demonstrated by specified outcome measurements.
The Subrecipient, assuming responsibility for the implementation of actual operation of a certain project herein specified, shall perform services in a satisfactory and proper manner as determined by the City and as outlined per PART B.
2. Revision of Scope: The performance criteria and objectives may be modified, revised or amended upon the joint written consent of the parties. The City may revise the approved objectives, accomplishments, and budget items in PART B and C when necessary. The Subrecipient may request a budget revision at any time throughout the duration of this Agreement. However, prior to any purchases under the new budget, the City must approve the revision in writing. Approval may be in the form of a letter, a fax, or an email.
2. COMMENCEMENT AND COMPLETION
1. Time of Performance: The services of the Subrecipient are to commence as soon as practicable on or after the date of this contract, and shall be undertaken and completed in such sequence as to assure their expeditious completion in light of the purposes of this contract through a period ending May 31, 2021. All expenditures associated with implementation of this activity must be submitted for reimbursement by July 15, 2021.
2. Close-out Period: The Subrecipient has 30 days following the performance of this activity during which to conduct and complete close-out requirements associated with this Agreement. Final accomplishment and outcome reports are due to the City by July 15, 2021.
3. Contract Completion Date: Unless an extension has been approved by the City in advance, OR unless this Agreement is terminated earlier in accordance with other provisions herein, this agreement will end on July 15, 2021.
3. COMPENSATION AND USE OF FUNDSRegulation for Use of Funds: The use of funds received pursuant to this Agreement shall be in accordance with the requirements of the Housing and Community Development Act of 1974 (as amended), 24 CFR Parts 570, other regulations governing the use of contract funds, and any amendments or policy revisions thereto which shall become effective during the term of this Agreement. It is the Subrecipient’s responsibility to read, understand, and comply with these regulations.
1. Uniform Grant Administrative Requirements and Cost Principles: During the administration of this contract, the Subrecipient shall comply with, and adhere to: a. 2 CFR Chapter II Part 215; andb. 2 CFR Chapter II Part 230
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2. Total Payments: Total amount of funds provided by the City to the Subrecipient under this Agreement shall not exceed $80,188 which must be drawn on a monthly basis. At the sole discretion of the City, any funds remaining unexpended as of July 15, 2021 may be de-obligated from this Agreement and made available for other eligible projects, as determined appropriate by the City.
3. Reimbursement Requests: This is a cost-reimbursement Agreement. Disbursement of funds under this Agreement may be requested only for necessary, reasonable, and allowable costs described in PART B, and for which the Subrecipient has made payment during the period of performance set forth in item Section 2.1 above. The City agrees to reimburse the Subrecipient for such costs, and payment shall be made upon receipt of a request for reimbursement form as provided by the City, accompanied by a monthly progress report from the Subrecipient specifying the services performed and expenses incurred. All requests for reimbursement must be accompanied by an invoice which identifies the address to which payment should be remitted, documentation of payment for eligible expenses (i.e., invoices, receipts, bills from vendors, copies of checks, time sheets, etc.), and other supporting documentation. Supporting documentation must be accompanied by an agency payment voucher providing this information and a copy of the signed check with which the payment was made. Requests for Reimbursement must be received by the 15th day of the month following the month during which the expenditure was paid.
4. Double Reimbursement: The Subrecipient must not claim reimbursement from the City under this Agreement for any portion of its obligations that has been paid by another source of revenue.
5. Restriction on Disbursements: CDBG funds shall not be disbursed to a Subrecipient or contractor except pursuant to a written contract, which incorporates by reference the general conditions of this Agreement. Disbursements may be suspended or terminated under this Agreement upon refusal to accept any additional conditions that may be imposed by the City at any time or if the entitlement funds to the City of Wichita under the Federal Act(s) are suspended or terminated.
6. Withholding Payments: All payments to the Subrecipient are subject to the Subrecipient’s compliance with this Agreement. Any breach of the Agreement is grounds for non-payment until such corrective measures are made which will resolve Agreement non-compliance.
7. Closeout Reimbursement: Closeout billings must be submitted by July 15, 2021. If not submitted, the unexpended funds shall revert to the City of Wichita.
8. Program Income: The Subrecipient agrees to abide by the Program Income Requirements set forth in 24 CFR 570.504(c). Program Income is defined as gross income received by a unit of local government (City) or a Subrecipient of a unit of general local government (City) that was generated from the use of CDBG funds.
The Subrecipient agrees to remit all Program Income to the City within 15 days of its receipt, unless a request is made to the City within that same 15 day period that the Subrecipient would like to spend those funds on other CDBG-eligible costs. The City and/or HUD must approve such requests in writing prior to Subrecipient expenditure of Program Income. Should these requests be approved, verification of the expenditure of Program Income must be provided to the City no later than the contract completion date described in Section 2.1 of this Agreement. If Subrecipient, after City
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approval, chooses not to remit Program Income to the City, the Subrecipient must spend all Program Income on eligible CDBG activities prior to requesting additional reimbursements from the City.
Program Income that is received by the Subrecipient before closeout of the grant that generated the income is treated as additional CDBG funds and is subject to all federal regulations and policies governing the program. Under limited circumstances, the City may approve the use of CDBG Program Income for the purpose of capitalizing a revolving loan fund for specific identified activities. Payments to a revolving loan fund are Program Income and must substantially be disbursed from the revolving loan fund before additional grant funds are drawn from the City for revolving loan fund activities.
Regardless of whether Program Income is remitted to the City or spent on other CDBG-eligible costs, documentation of the receipt of Program Income, such as supporting schedules identifying the project and the source of income, must be submitted to the City within 15 days of its receipt. When Program Income is generated by an activity that is only partially assisted with CDBG funds, the Program Income shall be prorated to reflect the percentage of said funds used. Donations to the program covered by this agreement are not considered program income.
At the end of the term of this Agreement, as described in Section 2.1, the City may require remittance of all or part of any Program Income balances (including investments thereof) held by the Subrecipient (except those needed for immediate cash needs, cash balances of a revolving loan fund, cash balances from a lump sum draw down, or cash or investments held for Section 108 security needs).
4. USE AND DISPOSITION OF PROPERTY
1. Disposition of Expendable/Non-Expendable Personal Property: The Subrecipient must obtain written authorization from the City before disposing of an item of equipment with an original cost exceeding $1,000. All proceeds from the sale of property purchased with any of these federal funds must be returned to the City. The Subrecipient agrees the City may file the appropriate legal instrument(s) necessary to protect the City’s financial interest.
All office equipment and other personal property purchased in whole or in part with funds pursuant to this contract and used for the administration of this contract or in the administration of a program operated by the City shall be the sole and exclusive property of the City unless otherwise specified in PART B.
Upon expiration and/or termination of any on-ongoing Agreement, the Subrecipient shall immediately return to the City said office equipment and other property unless otherwise authorized by the City.
2. Disposition of Real Property: All real property purchased or otherwise acquired under the terms of this contract shall be under title of the City unless otherwise specified in PART B.
5. ASSIGNMENTS
1. Assignability: Neither the City nor the Subrecipient shall assign, sublet, or transfer their interest in this Agreement without the prior written consent of the other.
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2. Subcontracting/Third Party Contracts: The Subrecipient agrees to furnish the City with a copy of any and all third party contracts that it executes in the performance of the work to be undertaken within the scope of this Agreement.
The Subrecipient agrees to incorporate or cause to be incorporated in all third party contracts or subcontracts funded under the CDBG program provisions requiring all applicable Federal, State, and local laws, rules, and regulations to be adhered to in accordance with all parts of this Agreement. Specifically, the Subrecipient agrees to require and monitor compliance by all contractors, subcontractors, and other third parties. Any third party contract that is not in accordance with the outlined budget in this Agreement shall be subject to the advance, written approval of the City. Furthermore, the City shall not be obligated or liable hereunder to any party other than the Subrecipient.
6. AUDITS AND INSPECTIONS
1. Audits and Inspections: The Subrecipient must establish an adequate accounting system on a current basis in accordance with generally accepted accounting principles and standards and in accordance with any specific requirements of the Controller of the City of Wichita. Subrecipient personnel will make available to City staff and any other auditor authorized by the City, all program and accounting records and financial statements needed to meet the requirements of 2 CFR 200.300 through 200.309 and Subpart F. If any portion of the funds approved by this contract is subcontracted to other organizations for the delivery of objectives and criteria, the Subrecipient will ensure that the fiscal and performance records of the subcontractor will be available for inspection by Comptroller Office personnel or duly authorized auditors; by including appropriate clauses in all of its subcontracts.
Subrecipients that expend $750,000 or more during the fiscal year in Federal Awards must have a single audit conducted for that year in accordance with the provisions of 2 CFR Part 200, Subpart F. Single audit requirements will remain in effect until all sub-award funds are expended and audited.
Any Subrecipient receiving less than $750,000 in Federal funding shall not be required by the City to undergo an annual independent audit of the CDBG expenditures under this Agreement. Furthermore, no expenditures with respect to any such audit undertaken by the Subrecipient of its own initiative shall be chargeable to the funds under this Agreement. All audit reports are due on or before one year after the close of the program year. Before the due date, the Subrecipient should submit to the City (a) an audit report or (b) a letter giving the reason for non-compliance with the due date and requesting an extension of time with a specific date the report will be submitted. In event of the latter, the City will respond in writing to the Subrecipient to approve or disapprove the request.
7. SUBRECIPIENT RESPONSIBILITIES
1. Compliance with Laws: All parties shall comply with all applicable laws, ordinances, codes and regulations of the State of Kansas and local governments. Further, the Subrecipient agrees to perform services pursuant to the provisions of this contract and Federal and City regulations, rules and policies and special assurances included therein.
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2. Non-Municipal Personnel and Services: All services required herein will be performed by the Subrecipient under the direction of its Board of Directors or other governing body. Any services outside the budget line or the Scope of Services which the Subrecipient deems necessary to assign to a subcontractor, must first have written approval from the City unless otherwise specified in PART B.
8. DOCUMENTATION AND RECORD KEEPING
1. Establishment and Maintenance of Records: The Subrecipient shall establish and maintain records as prescribed by HUD and/or the City, with respect to all matters covered by this contract.
2. Record Requirements: The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506 and 570.507, and that are pertinent to the activities to be funded under this Agreement. Such records shall include but are not limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives of the
CDBG program; c. Records required to determine the eligibility of activities and all program participants; d. Records which demonstrate compliance with the requirements in 24 CFR 570.505 regarding any
change of use of real property acquired or improved with CDBG assistance; e. Records that demonstrate compliance with citizen participation requirements; f. Records which demonstrate compliance with requirements in 24 CFR 570.606 regarding
acquisition, displacement, relocation, and replacement housing; g. Records documenting compliance with all Federal Fair Housing and Equal Opportunity
regulations in the use of CDBG funds; h. Financial records that document all transactions and that can be properly documented and
audited, as required by 24 CFR 570.502, and 2 CFR Chapter II Part 215; i. Agreements and other records related to lump sum disbursements to private financial institutions
for financing rehabilitation as prescribed in 24 CFR 570.513; j. Other records necessary to document compliance with Subpart K of 24 CFR 570;k. Copies of all bid documents, bids received, RFPs, RFQs, and any other procurement documents; l. Copies of all third party or subcontracts; and m. Detailed records on Subrecipient’s organization, financial and administrative systems, and the
specific CDBG-funded project(s) or activities.
Please note that the above descriptions are brief and provide only a summary of the records the Subrecipient is required to maintain. The Subrecipient must consult 24 CFR 570.506 for a detailed description of the required records.
3. Retention: In accordance with 24 CFR 91.105(h), citizen participation requirements, the Subrecipient must retain all financial records, supporting documents, statistical records, and all other records pertinent to any and all expenditures incurred under this Agreement, and any other information as requested by the City or by HUD for a period of five years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report to the City of Wichita. Records for non-expendable property acquired with funds under this Agreement shall be retained for five years after final disposition of such property. If any litigation, claim, negotiation, or other action involving the records has been started before the expiration of the five year period, the
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records must be retained until completion of the action and resolution of issues which arise from it, or until the end of the five year period, whichever is later. All files and records will be made available during normal business hours and other reasonable times for review by the City or by HUD.
4. Documentation of Costs: All costs must be supported by proper documentation evidencing in proper detail the nature and propriety of the charges. All checks, payrolls, invoices, contracts, vouchers, orders or other accounting documents pertaining in whole or in part to this contract shall be clearly identified and readily accessible.
5. Inventory Management: The Subrecipient must submit an annual statement identifying the status of all equipment and non-real property items purchased with CDBG funds by the contract termination date. The status report should inventory all equipment and non-real properties purchased with CDBG funds and state the condition of the equipment and its location.
6. Access to Records: The Subrecipient agrees that the City, HUD, or any authorized representative has access to and the right to examine all records, books, papers, or documents related to the project. The City reserves the right, on demand and without notice, to review all of the Subrecipient’s files associated with this Agreement where payments are based on a record of time, salaries, materials, or actual expenses. The same right to review will be imposed upon any third party or subcontractor of the Subrecipient; therefore, it is the Subrecipient’s responsibility to ensure that any contract entered into with a third party or subcontractor contains all necessary clauses and language required by the City and/or HUD to ensure compliance with this Agreement and with all local, state, and Federal regulations.
9. PROGRAM EVALUATION
1. Performance Measures: During the Grant Agreement Period, the Subrecipient agrees to work diligently towards the objectives and projected accomplishments outlined in PART B, and to assist the City in demonstrating appropriate program benefits for the project activities implemented by Subrecipient. If it is determined that any of these objectives will not be completed within the identified timeframe, a request for an extension must be submitted to the City for consideration. However in no instance may accomplishment data reflect activity occurring after May 31, 2020. Such a request must identify the reasons for the extension and must be accompanied by a proposed project timeline that can reasonably be accomplished. Failure to meet the objectives in PART B will represent grounds for imposition of sanctions as found in Section 11.2. Incidents of nonperformance will suspend grant operations until corrective measures are implemented. If the grant is conditioned, access to grant funds will be suspended pending a satisfactory cure to the related incident of nonperformance.
2. Reporting: The Subrecipient is required to submit monthly performance reports as specified in PART
B no later than the 15th calendar day following the start of the new month (unless otherwise specified), as well as other information and data required by the City to respond to current HUD regulations and for the preparation of the Consolidated Annual Performance and Evaluation Report (CAPER) and/or the Integrated Disbursement Information System (IDIS) project set-up and completion activities. Accomplishment and financial reports must be received before the City can
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honor requests for funds. As stated in Section 11.2, sanctions will be imposed upon the Subrecipient for failure to satisfy report due dates.a. The City’s Accomplishment Report form provided as PART D;b. A description of all project activities that have taken place during the reporting period, including
all outreach activities and public participation events; c. Photographs and newspaper/media clippings of progress to date, if applicable; d. A description of any anticipated problems or obstacles, and a plan for how those future obstacles
will be addressed; e. A description of how objectives specified for achievement by that date have been met, OR a
description of obstacles that have prevented those objectives from being met, how those obstacles are being addressed, and a new anticipated date of completion for those objectives;
f. A description and dollar amount of funds spent to date, and how much of those funds have already been reimbursed;
g. A description of the number and qualifying low to moderate income characteristics of persons or households assisted to date;
h. Other supportive information or documentation, as applicable; and i. Any other reports or documentation as requested by the City or HUD.
3. Client Data: The Subrecipient agrees to maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, ethnicity, race, gender, age, head of household, income level, disability, homeless status, or other basis for determining eligibility, and a description of the service provided.
4. Accomplishment Reports: The Subrecipient agrees to submit project activity and progress reports to the City on a monthly basis and other reports as may be required or requested by the City or HUD. Accomplishment Reports will include, as applicable, at a minimum: a. A description of the number and qualifying low to moderate income characteristics of persons or
households assisted with CDBG funds to date;b. List of clients by name, status and progress (with respect to housing), narrative report regarding
other services secured for the client.c. Other supportive information or documentation, as applicable; and d. Any other reports or documentation as requested by the City or HUDe. And requirements listed in section 9.2 above
5. Final Accomplishment Reports: Final, year-end performance reports will also serve as the final project report, and will include, in addition to the requirements listed in items 9.2 and 9.4 above, a thorough assessment of the project, including successes and weaknesses; a comparison of projected accomplishments and objectives to actual accomplishments and goals achieved, including reasons for any discrepancies between the two; notation of any funds that were not expended and reasons why; total number and qualifying low to moderate income characteristics of persons or households assisted with funds or other resources leveraged by using other funds, including any donations that would not have been received without assistance; and identification of future related projects that may be eligible for assistance. This final report will be due July 15, 2021 or the date of final request for reimbursement, whichever is sooner.
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10. PROGRAM MONITORING
1. General: City staff will evaluate progress based on the objectives, criteria, work schedule and budget in PART B, to determine if it is consistent with the initial purpose of the project, the City’s strategies, comprehensive and neighborhood plans, and if it has a positive impact on the City and its neighborhoods. All data necessary to review and monitor project progress as determined by the City will be made available to City personnel. This includes, but is not limited to, performance records and interviews with the Subrecipient staff and project participants, as required by the City. City personnel will also make field inspections at the office/job site(s) if:
a. The Subrecipient fails to take recommended corrective action on two consecutive desk audits;
b. Projects are at high risk of error for activities that serve large number of people;c. Projects are at high risk based on the amount of funds involved.
2. Financial Monitoring: City staff shall monitor, review, and evaluate the financial procedures of the Subrecipient through documents submitted to the City and on-site monitoring. The Subrecipient shall provide and make available to the City such reports and records that will be necessary for a proper financial evaluation. With reasonable notice being given to the Subrecipient, the City may schedule at least one on-site visit and other visits that may be needed during the course of this Agreement.
3. Programmatic Monitoring: City staff shall monitor, review, and evaluate the Subrecipient. Fiscal reports will be reviewed and evaluated in terms of the total budget and accomplishments in relationship to expenditures. With reasonable notice being given to the Subrecipient, the City may schedule at least one on-site visit and other visits that may be needed during the course of this Agreement. At such times and in such forms as the City may require, there shall be furnished to the City such statements, records, data, and information as may be necessary.
The Subrecipient shall at any time and as often as the Housing and Community Services Department, or the City or the Comptroller General, or the Department of Housing and Urban Development, (HUD) or the HUD Inspector General of the United States may deem necessary, make available all its records and data for the purpose of making audits, reviews, examinations, excerpts and transcriptions.
4. Projects Involving Construction or Renovation: For all projects requiring building construction or renovation, the construction/renovation must comply with the City building code and all zoning regulations. Additionally, for construction/renovation projects, including façade improvements, a City official will complete a site inspection prior to reimbursements to ensure that materials for which a reimbursement is requested are in place on the building. Reimbursements for construction/building materials and façade improvements will only be made once the materials are in place.
5. Monitoring Letters and Reports: Written reports of the City’s monitoring findings will be provided to the Subrecipient within 30 days of an official monitoring visit. Such reports will note outstanding performance as well as findings or concerns and recommendations for improvement.
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6. Subrecipient Response: The Subrecipient shall have 30 days from the receipt of a financial or programmatic monitoring visit letter to address any findings or concerns.
11. TERMINATION, SANCTIONS AND CLOSEOUTS
1. Termination: In the event that the Subrecipient fails to comply with any term of this Agreement, the City may suspend or terminate this Agreement, in whole or in part, or take other remedial action in accordance with 2 CFR 200.338 through 200.342. The City may also terminate this Agreement for convenience.
Furthermore, funding to be made available by the City under this Agreement has been approved by the U.S. Congress. In the event that sufficient funds are not appropriated, at the sole discretion of the City, this Agreement may be terminated in whole or in part.
In the event of termination of this Agreement by the City, due to Subrecipient noncompliance as set forth above, the Subrecipient shall refund to the City all unexpended monies provided under the Agreement. At the City’s discretion, the Subrecipient may also be required to refund all funds awarded during the period of this Agreement that have already been spent by the Subrecipient and reimbursed by the City. Funding may be re-allocated to another subrecipient providing services under this program.
Should the City desire to terminate this Agreement for noncompliance, it shall first give written notice of the reason for proposed termination. The notice shall set forth the following: a. Reasonable description of the default/reason for termination; b. Demand for a cure; and c. Statement of reasonable time within which a cure must be effected. Such reasonable time will be
presumed to be not less than five, nor more than fifteen, business days. Such times shall be measured from the actual receipt of said notice.
If the Subrecipient cures the default within the reasonable period of time set forth in the notice, or as otherwise agreed between the parties, the City shall not terminate the Agreement and the written notice of proposed termination shall be deemed revoked, null and void.
2. Imposition of Sanctions: The City reserves the right to impose sanctions on the Non-profit Subrecipient for the violation of any terms of this Agreement, failure to comply with any terms of this Agreement, or failure to undertake the project in a timely manner. Sanctions may include, but are not necessarily limited to, suspension of grant operations until corrective measures are implemented, withholding any and all project funds, termination of the Agreement, requiring the Non-profit Subrecipient to return funds already received, or barring the Non-profit Subrecipientfrom future funding. No sanction may be imposed pursuant to this paragraph unless the (1) City provides the Non-profit Subrecipient written notice of the alleged violation of a term of this Agreement or alleged failure to comply with any term of this Agreement which (a) provides a reasonable description of the alleged default or reason for proposed imposition of sanction; (b) demands a cure; and (c) provides a reasonable period of time within which a cure must be effected which is not less than five, nor more than fifteen, business days measured from the actual receipt of
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said notice; and (2) the Non-profit Subrecipient fails to cure the alleged default within the reasonable period of time provided for in the notice or as otherwise agreed between the parties.
3. Closeout: The Subrecipient’s obligation to the City shall not end until all closeout requirements are completed. Activities during the close-out period shall include, but are not limited to, submitting final reimbursement request and final activity/progress report to the City, disposing of project assets (including the return of all equipment, program income balances, and receivable accounts to the City), and determining the custodianship of records. Grant closeout is not considered final until the City is fully satisfied that project objectives have been met, at which point the City will issue a close-out/grant finalization letter to the Subrecipient.
4. Reversion of Assets: The Subrecipient agrees that upon termination of this Agreement by any means, all real property of a value in excess of $25,000 under control of the Subrecipient by mortgage contract or otherwise, that is not titled in the name of the city and not so transferred, shall be treated as follows:
a. The property shall be used, for a minimum period of five (5) years from the termination of this Agreement, and for such additional time as determined to be appropriate by the City, to meet the national objective of benefiting low to moderate income persons and/or preventing or eliminating slum or blight.
After satisfaction of the designated time period and an approved use, no payment is due.
b. In lieu of such use, the Subrecipient shall pay to the City an amount equal to the current fair market value of the property, less any portion of the value of the property attributable to expenditures of non-CDBG funds. These payments are Program Income when received.
5. Property of the City: Any data or material furnished by the City to the Subrecipient shall remain the property of the City, and when said data or material is no longer needed by the Subrecipient for the performance of this Agreement, it shall be returned to the City.
12. TAXES
1. Payment of Taxes: The City shall not be liable for the payment of any taxes levied by the City, State, or Federal Governments against the Subrecipient, and all such taxes shall be paid by Subrecipient; however, should the City nevertheless pay any such taxes, the Subrecipient shall immediately reimburse the City.
13. LAWS, REGULATIONS AND SPECIAL CONDITIONS
The information in this Article is included for the convenience of the Subrecipient and to inform the Subrecipient of the diverse statutory and regulatory requirements to which the acceptance of funds makes them subject. For the actual regulatory or statutory requirements, the Subrecipient should consult the actual laws, regulations, and documents referenced in this Article. In addition to the other requirements set forth herein, the Subrecipient shall likewise comply with the applicable provisions of Subpart K of 24 CFR 570, in accordance with the type of project assisted. All of the referenced regulations are available online, and upon request, the City may provide these materials to the Subrecipient.
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1. Debarment and Suspension: In accordance with 24 CFR 24, the Subrecipient shall not employ or otherwise engage any debarred, suspended, or ineligible contractors or subcontractors to conduct any activities under this Agreement. The Subrecipient will consult appropriate references, including but not limited to the Excluded Parties Listing System website at www.sam.gov, to ascertain the status of any third parties prior to engaging their services. The Subrecipient will submit to the City the names of contractors and subcontractors selected under this Agreement, including a certification by the Subrecipient that it has determined that none of these entities are presently debarred, suspended, or ineligible.
2. Emerging Business Enterprises: If a Subrecipient solicits or requests an invitation for bids, every effort feasible will be made to contact emerging, minority-owned, and women-owned business enterprises for a response to the solicitation or invitation for bidders. If utilizing a minority subcontractor, the Subrecipient shall summarize what portion of the project the minoritysubcontractor handled. At the end of the project, the Subrecipient shall submit a summary of all payments made to the minority subcontractor(s). The Subrecipient shall submit all necessary forms with quarterly reports to assure compliance with this requirement.
3. Building and Zoning Regulations and Permits: The Subrecipient agrees to comply with all laws of City of Wichita and the State of Kansas. In particular, the Subrecipient shall comply with all applicable building and zoning regulations. In addition, the Subrecipient shall obtain all necessary permits for intended improvements or building activities.
4. Environmental Review: In accordance with 24 CFR 570.604, the activities under this Agreement are subject to environmental review requirements. Such requirements may include, but are not necessarily limited to, activities related to historic districts and/or properties, floodplain management and wetland protection, noise, wild and scenic rivers, air quality, farmlands protection, environmental justice, airports, site contamination, and hazardous facilities. There shall not be any costs incurred or obligation of funds until such time as an Environmental Review (ER) is completed for each project (generally one per project). The ER shall be completed by the City. The Subrecipient also agrees to comply with the following regulations insofar as they apply to the use of CDBG funds: a. Clean Air Act, 42 USC, 1857, et seq.; b. Federal Water Pollution Control Act, as amended, 33 USC. 1251, et seq., as amended 1318
relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued there under;
c. Environmental Protection Agency (EPA) regulations pursuant to 40 CFR 50, as amended; d. National Environmental Policy Act of 1969; and e. HUD Environmental Review Procedures (24 CFR 58). Subrecipient should note that completion of the ER is the City’s responsibility. Nothing in this section or in any other part of this Agreement should be construed as relieving the City of this responsibility or placing this responsibility on the Subrecipient.
5. Fire Protection: The Subrecipient agrees to comply with the Fire Administration Authorization Act of 1992. This Act requires that existing dwelling units receiving housing assistance under this
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contract, including operating assistance, must be protected by hard-wired or battery-operated smoke detector(s) installed in accordance with NFPA 72.
6. Section 504 - Persons with Disabilities: The Subrecipient, in the implementation of projects funded by this Agreement and in all of its other operations, will comply with all requirements of Section 504 of the Rehabilitation Act of 1973 (29 USC. 794) (and the implementing regulations at 24 CFR 8), the Americans with Disabilities Act of 1990 (PL 101-336), and all state and local laws requiring physical and program accessibility to people with disabilities, and agrees to defend, hold harmless, and indemnify the City from and against any and all liability for any noncompliance on the part of the Subrecipient.
7. Discrimination Prohibited: No recipient or proposed recipient of any funds, services or other assistance under the provisions of this contract or any program related to this contract shall be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any project or activity funded in whole or in part with the funds made available through this contract on the grounds of race, color, national origin, ancestry, religion, disability, sex or age. For purposes of this section, "project or activity" is defined as any function conducted by an identifiable administrative unit of the Subrecipient receiving funds pursuant to this contract.
The Subrecipient further agrees to implement and comply with the "Revised Non-Discrimination and Equal Employment Opportunity Statement for Contracts or Agreements" as provided in Attachment A.
8. Nepotism: No person shall be employed or contracted with if a member of his or her immediate family is on the Board of Directors of the Subrecipient or is employed in an administrative capacity by the Subrecipient. For the purposes of this section, “immediate family” includes: wife, husband, daughter, son, mother, father, brother, sister, brother-in-law, sister-in-law, father-in-law, mother-in-law, aunt, uncle, niece, nephew, stepparent and stepchild; “administrative capacity” includes those who have selection, hiring, supervisory or operational responsibility for the project.
9. Conflict of Interest: The Subrecipient hereby severally warrants that it will establish and adopt safeguards to prohibit members, officers, and employees from using positions for a purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business, or other ties. Further, In accordance with 24 CFR 570.611, no member, officer, or employee of the Subrecipient who exercises any functions or responsibility with respect to the program during his or her tenure, or for one year thereafter, shall have any financial interest or benefit, direct or indirect, in any contract or subcontract, or the proceeds thereof, either for themselves or those with whom they have family or business ties, for work to be performed in connection with the project assisted under this Agreement.
10. Political Activity Prohibited:a. None of the funds, materials, property or services provided directly or indirectly under this
contract shall be used for partisan political activity.b. The funds provided under this contract shall not be engaged in any way in contravention of
Chapter 15 of Title 5, USC.
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11. Lobbying Prohibited: None of the funds provided under this contract shall be used for lobbying and/or propaganda purposes designed to support or defeat legislation pending before the Congress of the United States of America or the Legislature of the State of Kansas. The Subrecipient shall assure compliance with the regulations at 2 CFR 200.450 by submitting, and requiring all applicable subcontractors to submit, a certification of compliance with this provision.
The Subrecipient certifies to the best of its knowledge and belief that:
a. No Federal appropriated funds have been paid or will be paid, by or on behalf of the Subrecipient to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement;
b. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of congress, or an employee of a Member of Congress in connection with the Federal contract, grant, loan, or cooperative agreement, the Subrecipient will complete and submit Standard Form LLL, "Disclosure Form to Report Lobbying," in accordance with its instruction.
12. Faith-Based Activities: Subrecipient agrees to follow the regulations of 24 CFR 570-Faith-Based activities.
a. Organizations that are religious or faith-based are eligible, on the same basis as any other organization, to participate in the CDBG program. Neither the Federal government nor a State or local government receiving CDBG funds shall discriminate against an organization on the basis of the organization's religious character or affiliation.
b. Organizations receiving CDBG funds may not engage in inherently religious activities, such as worship, religious instruction, or proselytization as part of the programs or services funded under this part. If an organization conducts such activities, the activities must be offered separately, in time or location, from the programs or services funded under this part, and participation must be voluntary for the beneficiaries of the HUD-funded programs or services.
c. A religious organization that receives CDBG funds will retain its independence from Federal, State, and local governments, and may continue to carry out its mission, including the definition, practice, and expression of its religious beliefs, provided that it does not use CDBG funds to support any inherently religious activities, such as worship, religious instruction, or proselytization. Among other things, faith-based organizations may use space in their facilities to provide CDBG-funded services, without removing religious art, icons, scriptures, or other religious symbols. In addition, any CDBG-funded religious organization retains its authority over its internal governance, and it may retain religious terms in its organization's name, select
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its board members on a religious basis, and include religious references in its organization's mission statements and other governing documents.
d. An organization that receives CDBG funds shall not, in providing program assistance, discriminate against a program beneficiary or prospective program beneficiary on the basis of religion or religious belief.
e. CDBG funds shall not be used for the rehabilitation of structures to the extent that those structures are used for inherently religious activities. CDBG funds may be used for the rehabilitation of structures only to the extent that those structures are used for conducting eligible activities under this part. Where a structure is used for both eligible and inherently religious activities, CDBG funds may not exceed the cost of those portions of the rehabilitation that are attributable to eligible activities in accordance with the cost accounting requirements applicable to emergency shelter grants in this part. Sanctuaries, chapels, or other rooms that a CDBG-funded religious congregation uses as its principal place of worship, however, are ineligible for CDBG-funded improvements. Disposition of real property after the term of the grant, or any change in use of the property during the term of the grant, is subject to government-wide regulations governing real property disposition (see 2 CFR 200.311).
f. If a State or local government voluntarily contributes its own funds to supplement federally funded activities, the State or local government has the option to segregate the Federal funds or commingle them. However, if the funds are commingled, this section applies to all of the commingled funds.
14. MISCELLANEOUS CLAUSES AND NOTICES
1. Findings Confidential: Except as provided by law, all reports, information, data, and documentation prepared or assessed by the City or the Subrecipient under this Agreement are confidential. The Subrecipient agrees that the reports shall not be made available to any individual or organization without the prior written approval of the City.
2. Dissemination of Information: The Subrecipient, at such times and in such forms as HUD and/or the City may require, shall furnish to HUD and/or the City, such statements, records, reports, data and information as HUD and/or the City may request pertaining to matters covered by this contract. All reports, information, data and other related materials, prepared or assembled by the Subrecipient under this contract, are confidential and shall not be made available to anyone other than an appropriate agency of the United States government without the prior written approval of the City or as set forth in K.S.A. 45-201 et. seq.
3. Identification of Documents and Projects: All projects, reports, maps, news releases and/or other documents undertaken as part of this contract, other than documents exclusively for internal use with City staff, shall contain the following posted information at the project site or the front cover or title page of any reports or documents, or in the case of maps, in an appropriate block: “City of Wichita”, then name of the Subrecipient, and, in the case of written material, the month and year of preparation and the following information regarding Federal assistance: “The (preparation/funding) of this project, report, map, document, etc., was financed (in whole or in part) through a grant from the U.S.
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Department of Housing and Urban Development and the City of Wichita under the provision of Title I of the Housing and Community Development Act of 1974.”
4. Training Required: It shall be the responsibility of the Subrecipient to participate in all appropriate training conducted by the department of Housing and Community Services or approved by the Cityof Wichita. The City shall provide timely notice of all training.
5. Copyrights: If this contract results in a book or other material that may be copyrighted, the author is free to copyright the work, subject to HUD regulations. HUD and the City reserve a royalty-free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use all copyrighted material and all material that can be copyrighted.
6. Patents: Any discovery or invention arising out of or developed in the course of work aided by this contract shall promptly and fully be reported to HUD and the City for determination by HUD and the City as to whether patent protection on such invention or patent discovery shall be sought and how the rights in the invention or discovery, including rights under the patent issued thereon, shall be disposed of and administered, in order to protect the public interest. All such determinations are subject to HUD regulations.
7. Anti-Trust Litigation: For good cause, and as consideration for executing this contract, the Subrecipient, acting herein by and through its authorized agent, hereby conveys, sells, assigns and transfers to the City of Wichita all rights, title and interest in and to all causes of action it may now or hereafter acquire under the anti-trust laws of the United States and the State of Kansas, relating to the particular product, products, or services purchased or acquired by the Subrecipient pursuant to this contract.
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15. APPENDICES
All attachments referenced in this Agreement, all amendments mutually agreed upon, and modifications made by both parties are hereby incorporated as though fully set forth herein.
Attachment A – Revised Non-Discrimination and Equal Employment Opportunity Statement for Contracts or Agreements
Part A – AgreementPart B – Performance Criteria/ObjectivesPart C – Budget DetailPart D – Accomplishment Report
[Rest of page intentionally blank]
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16. AUTHORIZATION TO ENTER INTO CONTRACT
The undersigned person signing as an officer on behalf of the Subrecipient, a party to this Agreement, hereby severally warrants and represents that said person has authority to enter into this Agreement on behalf of said Subrecipient and to bind the Subrecipient to this Agreement, and further that said Subrecipient has authority to enter into this Agreement and that there are no restrictions or prohibitions contained in any article of incorporation or bylaw against entering into this Agreement.
SUBRECIPIENT
Harold Casey, Executive Director DateSubstance Abuse Center of Kansas, Inc.
CITY OF WICHITA
Brandon J. Whipple, Mayor Date
ATTEST:
Karen Sublett, City Clerk Date
APPROVED AS TO FORM:
Jennifer Magana, DateCity Attorney and Director of Law
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REVISED NON-DISCRIMINATION ANDEQUAL EMPLOYMENT OPPORTUNITY/AFFIRMATIVE ACTION PROGRAM
REQUIREMENTS STATEMENT FOR CONTRACTS OR AGREEMENTS
During the term of this contract, the contractor or subcontractor, vendor or supplier of the City, by whatever term identified herein, shall comply with the following Nondiscrimination – Equal Employment Opportunity/Affirmative Action Program Requirements:
A. During the performance of this contract, the contractor, subcontractor, vendor or supplier of the City, or any of its agencies, shall comply with all the provisions of the Civil Rights Act of 1964, as amended: The Equal Employment Opportunity Act of 1972; Presidential Executive Orders 11246, 11375, 11131; Part 60 of Title 41 of the Code of Federal Regulations; the Age Discrimination in Employment Act of 1967; the Americans with Disabilities Act of 1990 and laws, regulations or amendments as may be promulgated thereunder.
B. Requirements of the State of Kansas:1. The contractor shall observe the provisions of the Kansas Act against Discrimination (Kansas
Statutes Annotated 44-1001, et seq.) and shall not discriminate against any person in the performance of work under the present contract because of race, religion, color, sex, disability, and age except where age is a bona fide occupational qualification, national origin or ancestry;
2. In all solicitations or advertisements for employees, the contractor shall include the phrase, "Equal Opportunity Employer", or a similar phrase to be approved by the "Kansas Human Rights Commission";
3. If the contractor fails to comply with the manner in which the contractor reports to the "Kansas Human Rights Commission" in accordance with the provisions of K.S.A. 1976 Supp. 44-1031, as amended, the contractor shall be deemed to have breached this contract and it may be canceled, terminated or suspended in whole or in part by the contracting agency;
4. If the contractor is found guilty of a violation of the Kansas Act against Discrimination under a decision or order of the "Kansas Human Rights Commission" which has become final, the contractor shall be deemed to have breached the present contract, and it may be canceled, terminated or suspended in whole or in part by the contracting agency;
5. The contractor shall include the provisions of Paragraphs 1 through 4 inclusive, of this Subsection B, in every subcontract or purchase so that such provisions will be binding upon such subcontractor or vendor.
C. Requirements of the City of Wichita, Kansas, relating to Non-Discrimination -- Equal Employment Opportunity/Affirmative Action Program Requirements:1. The vendor, supplier, contractor or subcontractor shall practice Non-Discrimination -- Equal
Employment Opportunity in all employment relations, including but not limited to employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The vendor, supplier, contractor or subcontractor shall submit an Equal Employment Opportunity or Affirmative Action Program, when required, to the Department of Finance of the City of Wichita, Kansas, in accordance with the guidelines established for review and evaluation;
2. The vendor, supplier, contractor or subcontractor will, in all solicitations or advertisements for employees placed by or on behalf of the vendor, supplier, contractor or subcontractor, state that all
Attachment A
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qualified applicants will receive consideration for employment without regard to race, religion, color, sex, "disability, and age except where age is a bona fide occupational qualification", national origin or ancestry. In all solicitations or advertisements for employees the vendor, supplier, contractor or subcontractor shall include the phrase, "Equal Opportunity Employer", or a similar phrase;
3. The vendor, supplier, contractor or subcontractor will furnish all information and reports required by the Department of Finance of said City for the purpose of investigation to ascertain compliance with Nondiscrimination -- Equal Employment Opportunity Requirements. If the vendor, supplier, con-tractor, or subcontractor fails to comply with the manner in which he/she or it reports to the City in accordance with the provisions hereof, the vendor, supplier, contractor or subcontractor shall be deemed to have breached the present contract, purchase order or agreement and it may be canceled, terminated or suspended in whole or in part by the City or its agency; and further Civil Rights complaints, or investigations may be referred to the State;
4. The vendor, supplier, contractor or subcontractor shall include the provisions of Subsections 1 through 3 inclusive, of this present section in every subcontract, subpurchase order or subagreement so that such provisions will be binding upon each subcontractor, subvendor or subsupplier;
5. If the contractor fails to comply with the manner in which the contractor reports to the Department of Finance as stated above, the contractor shall be deemed to have breached this contract and it may be canceled, terminated or suspended in whole or in part by the contracting agency.
D. Exempted from these requirements are: 1. Those contractors, subcontractors, vendors or suppliers who have less than four (4) employees, whose
contracts, purchase orders or agreements cumulatively total less than five thousand dollars ($5,000) during the fiscal year of said City are exempt from any further Equal Employment Opportunity or Affirmative Action Program submittal.
2. Those vendors, suppliers, contractors or subcontractors who have already complied with the provisions set forth in this section by reason of holding a contract with the Federal government or contract involving Federal funds; provided that such contractor, subcontractor, vendor or supplier provides written notification of a compliance review and determination of an acceptable compliance posture within a preceding forty-five (45) day period from the Federal agency involved.
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Part BPERFORMANCE CRITERIA AND OBJECTIVES
SUBRECIPIENT: SUBSTANCE ABUSE CENTER OF KANSAS, INC. DUNS #: 0966316353
CFDA#: 14.218CFDA NAME: COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS –CARESACT
SUBRECIPIENT INFORMATION
ACTIVITY NAME: Substance Abuse Center of Kansas, Inc.
CHIEF EXECUTIVE
OFFICER/EXECUTIVE OFFICER: Harold Casey
CONTACT PERSON(S): N/AADDRESS (NOT PO BOX): 731 N. Water St., Suite 2ZIP + 4: 67203PHONE: (316) 267-3825
EMAIL: [email protected]
PERFORMANCE PERIOD:
CONTRACT PERIOD:
June 2, 2020 through May 31, 2021
June 2, 2020 through July 15, 2021
FUNDING SOURCE(S): CDBG – CARES Act
HUD OUTCOME PERFORMANCE MEASUREMENTS
NATIONAL OBJECTIVE(S): Low/Mod Benefit Slum/Blight Urgent Need
OBJECTIVE CATEGORY:Sustainable Living Environment Decent Housing Creating Economic Opportunities
OUTCOME CATEGORY:Availability/Accessibility Affordability Sustainability
PROJECT ELIGIBILITY: According to 24 CFR Part 570.208(2)(a) this project qualifies, meeting the CDBG National Objective for limited clientele. This public service activity is limited to homeless individuals and families, who are presumed by HUD to be primarily low and moderate income persons.
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The Subrecipient agrees:
1. It is the principal administrative and coordinating agency for this project, contracting and/or subcontracting outside services, as may be necessary, subject to compliance with all applicable local, state and federal laws; and
2. It is the responsible authority without recourse to the City regarding the settlement and satisfaction of all contractual and administrative issues arising out of the contract entered into; and
3. It will maintain, during the term of this agreement, a filing with the Secretary of the State of Kansas as a not for profit corporation, or shall be designated a 501 (c)(3) tax-exempt organization by the Internal Revenue Service. Evidence of such status will be provided to the City upon request.
Participant Eligibility: According to 24 CFR Part 570.208(2)(a) this project qualifies, meeting the CDBG National Objective for limited clientele. Pursuant to 24 CFR Part 570.506(3)(i), documentation establishing that the service is designed for the particular needs of or used exclusively by homeless individuals and families for which the regulations provide a presumption concerning the extent to which low-and moderate-income persons benefit. This public service activity is limited to homeless individuals or families and therefore presumed by HUD to be primarily low and moderate income.
Goal: To provide case management services to individuals and families on the United Way/Impact ICT “By Name List”, in order to assist said individuals and families to secure permanent housing and to assist with other needs for the individuals and families served.
Project Description/Objectives: Substance Abuse Center of Kansas, Inc. will dedicate one full-time (40 Hours Per Week) case manager to provide case management services under this agreement, in order to:
Assist homeless individuals and families listed on the United Way/Impact ICT “By Name List” to secure permanent housing using all resources available in the community.
Assist said individuals and families in maintaining their housing and mediating tenant/landlord issues.
Assist said individuals and families in securing applicable and available social services, including but not limited to:
o Securing Employmento Applying for Social Security Benefitso Applying for Food Stampso Assist with Access to Medical Careo Assist with Access to Mental Health Careo Assist with Access to Substance Abuse Services
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Project Content: The Subrecipient shall complete the above objective(s) in a manner acceptable to the City, in accordance with the schedule, budget and conditions detailed herein. The City reserves the right to revise or otherwise alter established objective(s) and criteria during the grant period in an effort to allow for meaningful project measurement and evaluation which will directly impact future funding recommendations.
Outcome Goals: Establish and maintain a case load of 15-25 individuals/families from the “By Name List”
described above, depending on Vulnerability Index – Service Prioritization Decision Assistance Tool.
85% of individuals/families served will have secured permanent housing. 50% of individuals and families served will have secured a stable income source - Employment,
Social Security Benefits, etc. 50% of individuals and families served will have established a primary health care provider.
Project Administration: The Subrecipient Program Director will supervise operations and administration on a day-to-day basis.
Procurement Methods: The Subrecipient shall use its own procurement practices which comply with applicable state and local laws, rules and regulations so long as those practices do not unduly limit bidding competition. Additionally, procurement made with federal grant funds shall adhere to the standards set forth in 2 CFR Chapter II Part 215, including:
1. Maintaining a code or standard of conduct governing the performance of the Subrecipient’s officers, employees or agents engaged in awarding and administering contracts supported with Federal funds.
2. Advertising of procurement transactions as appropriate without regard to a dollar value in a manner allowing maximum free and open competition. No sole source procurement (obtaining only one bid) is permitted without prior approval for all purchases except small purchase procedures defined in 2 CFR Chapter II Part 215.
3. Invitations for bids shall be based on specifications developed by the Subrecipient. Said specifications shall be detailed to the extent necessary to solicit comparable bids without unduly limiting competitive bidding.
4. Bids will be awarded on the basis of the lowest and best bid, price and other factors considered.
5. The Subrecipient agrees to purchase services, goods and materials on an “as needed basis” and at the “lowest price obtainable”.
6. The Subrecipient will maintain procurement files outlining procurement efforts for each bid, including names and addresses of bidders solicited, information pertaining to advertising, and solicitation of Small and Emerging Business Enterprise participation. Information will be
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maintained of bid tabulations, justification of bid award, letters of notification to bidders regarding bid award, and any other pertinent information.
Funding: It is mutually agreed by and between the City and the Subrecipient that the City will pass through to the Subrecipient no more than $80,188 in CDBG funds for reimbursement of eligible and necessary expenses, and the Subrecipient will case management services to homeless individuals and/or families listed on the Impact ICT “By Name List”, which is administered by United Way of the Plains, Inc., in order to assist them in obtaining permanent housing, maintaining permanent housing, and securing other needed services. Any costs in excess of $80,188 are the responsibility of the Subrecipient.
Budget: The City shall pay the Subrecipient as hereinafter set out; the maximum of $80,188 for the activity described in this Agreement. Funding under this Agreement shall be originally budgeted asdetailed in PART C. Adjustments to budget line items and categories may be made with agreement by both parties to this Agreement.
Indirect Cost Rate: If the Subrecipient chooses to charge Indirect under this grant, the Subrecipient shall provide their indirect cost rate that has been negotiated between their entity and the Federal Government. If the subrecipient has never received a negotiated indirect cost rate a de minimis indirect cost rate of 10% of modified total direct costs (MTDC) may be used.
“Modified Total Direct Costs (MTDC) shall mean all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, and rental costs.
The indirect cost rate charged under this agreement is: N/A. In accord with 24 CFR 570.200(g), no more than 20% of the sum of any award shall be expended for planning and administrative costs.
Method of Payment: The Subrecipient agrees that payments under this contract shall be made according to established budgeting, purchasing and accounting procedures of the City of Wichita and CDBG program.
1. The City and the Subrecipient also agree that the categories of expenditures and amounts are estimates and may vary during the course of the contract. Changes greater than $25,000, other than those within the scope of this agreement must be approved by the City Council.
2. The Subrecipient will ensure all costs are eligible according to the approved budget. The original documentation supporting any expenditure made under this Agreement will be retained in the Subrecipient’s files for five (5) years after the final audit of expenditures made under this contract.
Accomplishment Reports, Financial and Client Files: The Subrecipient shall establish and maintain accounting and project records specifically for the federal funds awarded. Original documentation supporting all reimbursed expenditures and other project records will be retained by the Subrecipient for five (5) years after the final audit of expenditures made under this Agreement.
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1. The Subrecipient must maintain records of persons served by race, ethnicity, and income. Such records are subject to review by the City to ensure the accuracy and validity of information reported in monthly progress reports.
2. Accomplishment reports must be submitted by the 15th of the following month on Part D, Accomplishment Report.
3. Requests for Reimbursement must be submitted on a request for reimbursement form by the 15th of the month following the month the expenditure was paid.
4. Records must be maintained documenting receipts of CDBG program income and expenditures of the same. Goods and services received as program income in lieu of cash must require valuation as an in-kind item with appropriate records maintenance and reporting in the same manner as other program income. Any CDBG attributable income generated by this program shall be retained to offset project costs. Donations to the project covered by this agreement are not considered program income.
5. Additionally, a narrative or other description of progress may be required.
Project Evaluation: The City will evaluate this project based on the objective(s) stated in Part B. Failure by the Subrecipient to provide the level of service stated herein may result in a determination by the City to modify the level of payment to the Subrecipient on a pro rata basis with level of service. Subrecipient records are subject to review by the City to ensure the accuracy and validity of information reported in monthly progress reports.
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Part C
BUDGET:
Delegate Agencies – Payroll $ 45,000
Delegate Agencies – Employee Benefits/Payroll Taxes $ 15,588
Delegate Agencies – Cell Phone $ 400
Delegate Agencies – Office Supplies $ 1,200
Delegate Agencies – Mileage $ 2,000
Delegate Agencies – Security Deposits, Application Fees,Identification Expenses $ 16,000
TOTAL $ 80,188
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PART D
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Agenda Item No. V-6
City of WichitaCity Council Meeting
June 2, 2020
TO: Mayor and City Council
SUBJECT: Substantial Amendment to the 2019-2020 Annual Action Plan and 2019-2024Consolidated Plan
INITIATED BY: Housing and Community Services Department
AGENDA: New Business
Recommendation: Close the public hearing, approve the Substantial Amendment to the 2019-2024 Consolidated Plan, the Substantial Amendment to the 2019-2020 first year Annual Action Plan, and the amendment to the Citizen Participation Plan, and authorize the necessary signatures.
Background: Wichita is recognized as an entitlement city by the U.S. Department of Housing and Urban Development (HUD). This designation is based on a federal formula, which considers total population, the number of persons below the poverty level, the number of overcrowded housing units, the age of housing and the population growth lag. In order to receive Federal funds under the Community Development program, entitlement cities must complete and submit a multi-year Consolidated Plan for HUD approval. Upon HUD’s acceptance, cities submit one-year action plans for each year of the Consolidated Plan. The first year of the 2019-2024 Consolidated Plan covers the period of July 1, 2019through June 30, 2020.
The 2019-2020 Annual Action Plan and 2019-2024 Consolidated Plan were approved by the City Council on June 11, 2019. The Plan included anticipated spending for three entitlement grants: Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) and Emergency Solutions Grant. The proposed substantial amendment seeks to modify activities for the CDBG and ESG grants.
In addition to the City’s 2019-2020 annual funding allocation for the CDBG and ESG Programs of $2,806,594 and $238,128 respectively, the City will receive $1,725,897 in additional CBDG funding and $850,376 in additional ESG funding authorized by the Coronavirus Aid, Relief and Economic Security Act (CARES Act).
CDBG funding authorized by the CARES Act must be used to prevent, prepare for and respond to thecoronavirus pandemic (COVID-19). ESG funding authorized by the CARES Act must be used to prevent, prepare for, and respond to COVID-19 among individuals and families who are homeless and to support additional homeless assistance and homelessness prevention activities to mitigate the impacts of COVID-19.
Substantial amendments to the current Annual Action Plan and Consolidated Plan are needed for this to account for and allocate additional CARES Act funding. The Department seeks to make various funding allocations for CDBG and ESG eligible activities.
Analysis: With respect to ESG, four activities are proposed. In the homeless services and assistance category, $120,000 is allocated to support a 24-hour emergency shelter, operated by HumanKind Ministries. This program extends the organization’s winter shelter through the months of April and Mayof 2020; 410 homeless persons are expected to be served through this activity. Another program proposed 136
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is the United Way Hotel/Motel Voucher program. The purpose of this program is to provide hotel vouchers for those homeless individuals who are either undergoing testing for COVID-19, or have been diagnosed with COVID-19, so that they are able to safely quarantine away from others. The $300,510 allocated for the program will serve approximately 318 individuals. Further, an additional $194,829 is set aside in the homeless services and assistance category for activities to prevent, prepare for, and respond to the COVID-19 public health emergency. Approximately 1,050 are anticipated to be served with this funding. Lastly, $150,000 is set aside for homeless prevention activities. This allocation will provide rent assistance to individuals and families who are at risk of being evicted due to nonpayment of rent. The proposed amendments are summarized in the following table:
Activity 2019-2023 Consolidated Plan Resources, Projected Service
Levels
2019-20 Annual Action Plan Resources, Projected Service
Levels*Homeless Services –HumanKind Emergency Shelter
$120,000, 60 persons nightly, 410 unduplicated
$120,000, 60 persons nightly, 410 unduplicated
United Way Hotel/Motel Voucher Program
$300,510, 318 individuals served $60,000, 78 individuals served
Homeless Services Activities
$194,829, 1,050 served Funding to be Allocated During 2020-2021 Program Year
Homeless Prevention $150,000, 100 households served $6,250, four households servedAdministration (10%) $85,037 $9,488TOTAL FUNDING $850,376 $195,738
*Funding will carry over into future program years. Additional accomplishments will accrue in future program years.
With respect to CDBG, four additional activities are proposed, all falling within the public services category. First, many domestic violence shelters in the area are seeing increased demand for services due to COVID-19. An additional $75,000, to be allocated across three organizations is proposed to serve 750 adults and children. Additional funding amounts will be allocated at 30% of the organization’s 2019/2020 allocation. A program to provide vouchers for nonprofit organizations and/or small businesses employing low-income workers, and/or small business serving low income neighborhoods to obtain personal protective (PPE) is proposed to serve 100 organizations with $150,000 over a two-year period. Funding in the amount of $420,000 for a case management services program to assist homeless individuals and families to secure permanent housing is also proposed. The program would assist designated social services organizations to assist 120 homeless individuals or families to secure permanent housing and to provide ongoing services. Lastly, an additional $735,718 in CDBG CARES Act funding is set aside for other public services activities to prepare for and respond to and prevent the spread of COVID-19. The proposed amendments are summarized in the following table:
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Activity 2019-2023 Consolidated Plan Resources, Projected Service
Levels
2019-20 Annual Action Plan Resources, Projected Service
Levels*Public Services –Supplemental Assistance for Domestic Violence Shelters
$75,000, 187 persons served Funding to be allocated during 2020-2021 Program Year
Public Services - PPE Voucher Program
$150,000, 100 organizations to be served
$6,250, four organizations to be served
Public Services -Homeless Case Management Services Program
$420,000, 120 individuals or households to be served
$17,500, five individuals or households to be served
Public Services – Other Activities to prevent, prepare for, and respond to the COVID-19 Public Health Emergency
$735,718, 3,400 individuals or households to be served
Funding to be allocated during 2020-2021 Program Year
Administration (20%) $345,179 $52,514TOTAL FUNDING $1,725,897 $76,264
*Funding will carry over into future program years. Additional accomplishments will accrue in future program years.
Staff also proposes an amendment to the City’s Citizen Participation Plan. The proposed amendment is specifically related to CARES Act CDBG and ESG funding and/or other funding related to COVID-19 response or for response to any disasters declared by the Federal government. The amendment will allow for a public comment period of five days, with posting of associated plans, amendments, substantial amendments and funding allocations on the City website.
The City is required to provide an opportunity for citizens to review and comment on the proposed Substantial Amendments. In order to comply with CARES Act requirements, Housing and Community Services staff published the proposed Substantial Amendments on the City Website for a period of five days. Financial Considerations: There is no impact to the General Fund as a result of this action.
Legal Consideration: The Law Department has reviewed the Substantial Amendments as to form.
Recommendation/Actions: It is recommended that the City Council close the public hearing for the Substantial Amendment to the first year Annual Action Plan and Consolidated Plan; approve the Substantial Amendment to the 2019-2020 first year Annual Action Plan and Consolidated Plan; approve the funding allocations; authorize the necessary signatures.
Attachments: Summary of the Substantial Amendment to the 2019-2020 First Year Annual Action PlanSummary of the Substantial Amendment to the 2019-2023 Consolidated PlanAmended Citizen Participation Plan
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Executive Summary 1. Introduction
The 2019-20 Annual Action Plan is the first year of the City of Wichita 2019-2023 Consolidated Plan, which provides a basis and strategy for the use of federal funds allocated to the City of Wichita by the U.S. Department of Housing and Urban Development (HUD), including the Community Development Block Grant (CDBG) program, the HOME Investment Partnerships Program (HOME Program) and the Emergency Solutions Grant (ESG) program. The Consolidated Plan covers five program years, beginning July 1, 2019 and ending June 30, 2024. Programs and activities described in this plan are intended to primarily benefit low and moderate-income residents of the City of Wichita, and neighborhoods with high concentrations of low-income and moderate-income residents, which will ultimately benefit the City as a whole. This plan is the product of citizen participation, including public meetings, consultation with various service agencies, groups and organizations involved in the development of affordable housing, creation of job opportunities for low and moderate-income residents, and/or provision of services to children, elderly persons, persons with disabilities, and homeless persons. A complete draft of this plan and the associated First Program Year Action Plan has been made available for public review and comment for a 30-day comment period during May and June, 2019. The availability of the plan was advertised in the Wichita Eagle and the Community Voice newspapers and the complete document was made available for review at the City’s website and in print form in the Housing and Community Services Department, the City Council office, Community Services Centers, and select branches of the Wichita Public Library system.
In addition to the City’s 2019-2020 annual funding allocation for the CDBG and ESG Programs of $2,806,594 and $238,128 respectively, the City will receive $1,725,897 in additional CBDG funding and $850,376 in additional ESG funding authorized by the Coronavirus Aid, Relief and Economic Security Act (CARES Act).
CDBG funding authorized by the CARES Act must be used to prevent, prepare for and respond to the coronavirus pandemic (COVID-19). ESG funding authorized by the CARES Act must be used to prevent, prepare for, and respond to COVID-19 among individuals and families who are homeless and to support additional homeless assistance and homelessness prevention activities to mitigate the impacts of COVID-19.
This Substantial Amendment to the 2019-20 First Program Year Action Plan allocates additional CARES CDBG and ESG funding. With respect to CDBG, an additional four activities are proposed, all falling within the public services category. First, many domestic violence shelters in the area are seeing increased demand for services due to COVID-19. An additional $75,000, to be allocated across three organizations is proposed to serve 187 adults and children. Additional funding amounts will be
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allocated at 30% of the organization’s 2019/2020 allocation. A program to provide vouchers for nonprofit organizations and/or small businesses employing low-income workers, and/or small business serving low income neighborhoods to obtain personal protective (PPE) is proposed to serve 100 organizations with $150,000 over a two year period. A program in the amount of $420,000 toprovide three organizations with funding to hire case managers is proposed. The program would assist 120 homeless individuals to secure permanent housing and provide ongoing services. Lastly, an additional $735,718 in CDBG CARES Act funding is set aside to prepares and respond to and prevent the spread of COVID-19. A total of $345,179 will be allocated for the City of Wichita’s administrative costs, in accordance with applicable regulations.
With respect to ESG, four activities are proposed. In the homeless services and assistance category, $120,000 is allocated to support a 24-hour emergency shelter, operated by HumanKind Ministries. This program extends the organization’s winter shelter through the months of April and May of 2020; 410 homeless persons are expected to be served through this activity. Another program proposed is the United Way Hotel/Motel Voucher program. The purpose of this program is to provide hotel vouchers for those homeless individuals who are either undergoing testing for COVID-19, or have been diagnosed with COVID-19, so that they are able to safely quarantine away from others. The $300,510 allocated for the program will serve approximately 318 individuals. Finally, an additional $194,829 is set aside in the homeless services and assistance category to provide support for homeless shelter activities and case management. Approximately 1,050 are anticipated to be served in this program. Lastly, $150,000 is set aside for homeless prevention activities. This allocation will provide rent assistance to individuals and families who are at risk of being evicted due to nonpayment of rent. 100 households are anticipated to be served. A total of $85,037 will be allocated for the City of Wichita’s administrative costs, in accordance with applicable regulations.
2. Summarize the objectives and outcomes identified in the Plan
The Plan activities will prioritize housing and community needs in the core areas of the City. Housing needs will be supported by developing and/or maintaining strong infrastructure to enhance the living and working environment in the City’s core. Support for economic development is recognized an important component of the City’s plan. In addition to the focus on the physical needs of the City’s communities, the Consolidated Plan also recognizes and plans for the needs of the people who Consolidated Plan WICHITA 2 OMB Control No: 2506-0117 (exp. 06/30/2018) live and/or work in these areas. Specifically, the City will continue supporting services for the homeless, but will also support activities involving homes prevention and permanent housing solutions.
The Substantial Amendment to the 2019-20 Plan will not change the objectives and outcomes previously identified, but will provide and allocate additional funding allocated by the CARES Act to prevent, prepare for and respond to COVID-19.
3. Evaluation of past performance
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The City of Wichita has a history of successful administration of federal programs for housing, as well as community planning and development. This administrative capacity is firmly in place and will continue for future administration of Consolidated Plan funds and includes professional administration by City staff and through partnerships and contracts with community agencies. Results of the City’s administration of programs funded with Consolidated Plan resources are reported using the Consolidated Annual Performance and Evaluation Report (CAPER) format and can be found on the City’s website.
4. Summary of Citizen Participation Process and consultation process
For the City of Wichita, citizen participation is a vital component of the consolidated planning process. To encourage Wichita citizens to be involved in establishing priorities regarding planning and funding public programs and activities, the Housing and Community Services Department has developed a Citizen Participation Plan which uses various media formats to engage the public in identifying needs and priorities. An amendment to the Citizen Participation Plan is also proposed, in order to provide for a five day public review and comment period for any substantial amendments to a Consolidated Plan or an Annual Action plan, when the substantial amendment is specifically related to CARES Act CDBG and ESG funding and/or other funding related to COVID-19 response or for response to any disasters declared by the Federal government. Such amendments will be published and made available only on the City of Wichita’s website, www.wichita.gov. The proposed amended Citizen Participation plan is attached to this document.
All citizens are encouraged to participate in the development and review of the Consolidated Plans and Annual Plans, including substantial amendments, and the Consolidated Annual Performance and Evaluation Reports (CAPER). Notice of public hearings and comment periods are normally published in the designated official newspaper or newspapers of general circulation, and advertised on the City-7 cable television channel.
This summary of the proposed Substantial Amendments to the 2019-2023 Consolidated Plan and 2019-2020 Annual Action Plan are made available for public review and comment from Monday, May 25, 2020 through Friday, May 29, 2020. A public hearing is scheduled for Tuesday, June 2, 2020. Comments regarding the plan may be submitted through Friday, May 29, 2020 to: City of Wichita, Housing and Community Services Department, 455 N. Main, 10th Floor, Wichita, Kansas, 67202, by telephone to 316-462-3734, or by e-mail to [email protected]. There will be a public hearing on this matter during the City Council Meeting at City Hall on Tuesday, June 2, 2020, at 9:00 AM. Oral comments can be made at the meeting. Individuals who require auxiliary aids and services for effective communication with City of Wichita personnel should contact the Office of the City Manager, 316-268-2468 as soon as possible, but no later than 48 hours before the scheduled event or appearance.
Attached: Goals and Objectives Detail, Amended Citizen Participation Plan.
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Goals and ObjectivesSubstantial Amendment, 2019-2023 Consolidated Plan – CARES Act Funding – Emergency Solutions Grant
Activity Purpose Amount Projected Numbers ServedHomeless Services/Assistance-Humankind
24-hour Emergency Shelter $120,000 60 nightly, 410 Unduplicated (April, May 2020)
Homeless Services/Assistance -Hotel/Motel Voucher Program – United Way
Quarantine for Homeless Persons undergoing testing or testing positive for COVID-19 $300,510
318 (April, May 2020 and July 2020-June 2021)
Homeless Prevention Activities to mitigate the effects of COVID-19.
Rental Assistance for Individuals/Families under threat of eviction due to inability to pay rent.
$150,000 100 Households
Homeless Services/Assistance Activities to prevent, prepare for, and respond to the coronavirus pandemic among individuals and families.
Support for Homeless Shelters and Case Management
$194,829 1,050 Individuals, Unduplicated
Administration Costs 10% $ 85,037 N/A
TOTAL $850,376
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Substantial Amendment, 2019-2023 Consolidated Plan – CARES Act Funding – Community Development Block GrantActivity Purpose Amount Projected Numbers Served
Public Services – Supplemental Assistance for Domestic Violence Shelters
Assist and Provide Shelter for Victims of Domestic Violence
$ 75,000, 3 organizations, each funded at an additional 30% of their 2019-2020 allocation.
187 Adults and Children
Public Services – Case Management Services for Homeless Individuals
Assist homeless individuals to secure permanent housing and provide ongoing services
$ 420,000 (3 Organizations X 70,000 Each, for two years.)
120 (60 served annually, X 2 = 120.)
Public Services – PPE Program Program to provide vouchers for the Non-Profit Organizations or small businesses employing low-income workers, or small businesses serving low-income neighborhoods.
$ 150,000 ($75K annually, for two years.)
100 Organizations
Other Public Service Activities related to the effects of COVID-19
Prepare for and respond to prevent the spread of COVID-19.
$ 735,718 3,400 individuals or households to be served
Administration Costs 20% $ 345,179 N/A
TOTAL $1,725,897
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Substantial Amendment, 2019-2020 Annual Action Plan – CARES Act Funding – Emergency Solutions Grant Program
Activity Purpose Amount Projected Numbers ServedHomeless Services/Assistance-Humankind
24-hour Emergency Shelter $120,000 (HumanKind emergency shelter, to close end of May, 2020)
60 nightly, 410 Unduplicated (April, May 2020 – Activity concludes in May)
Homeless Services/Assistance -Hotel/Motel Voucher Program – United Way
Quarantine for Homeless Persons undergoing testing or testing positive for COVID-19
$60,000 (Assumes some clients will be served during April, May, June, 2020.)
78 (April, May, June 2020, 26 per month)
Homeless Prevention Activities to mitigate the effects of COVID-19.
Rental Assistance for Individuals/Families under threat of eviction due to inability to pay rent.
$6,250 (Assumes implementation in June 2020, one month of service.)
4 Households Assisted.
Homeless Services/Assistance Activities to prevent, prepare for, and respond to the coronavirus pandemic among individuals and families.
Support for Homeless Shelters and Case Management
Funding to be Allocated During 2020-2021 Program Year
Service levels to be determined during 2020-2021 Program Year
Administration Costs 10% $9,488 N/A
TOTAL $195,738
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Substantial Amendment, 2019-2020 Annual Action Plan – CARES Act Funding – Community Development Block Grant
Activity Purpose Amount Projected Numbers ServedPublic Services – Supplemental Assistance for Domestic Violence Shelters
Assist and Provide Shelter for Victims of Domestic Violence
Funding to be allocated during 2020-2021 Program Year
Service Levels to be determined during 2020-2021 Program Year
Public Services – Case Management Services for Homeless Individuals
Assist homeless individuals to secure permanent housing and provide ongoing services
$17,500 (3 Organizations) 5 (60 served annually/12 = 5 per month.)
Public Services – PPE Program Program to provide vouchers for the Non-Profit Organizations or small businesses employing low-income workers, or small businesses serving low-income neighborhoods.
$6,250 (150,000/24 months, assumes one month of service during 19-20 – Assumes program implements June, 2020)
4 Organizations
Other Public Service Activities related to the effects of COVID-19
Prepare for and respond to prevent the spread of COVID-19.
Funding to be allocated during 2020-2021 Program Year
Service Levels to be determined during 2020-2021 Program Year
Administration Costs 20% $52,514 N/A
TOTAL $76,264
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CITY OF WICHITACITIZEN PARTICIPATION PLAN
Adopted November 8, 1994Revised April 18, 1995Revised February 6, 1998Revised January 6, 1998Revised February 7, 2000Revised December 9, 2014Revised June 2, 2020
PREFACEThe Citizen Participation Plan is the process by which the City of Wichita identifies the policies and procedures to be used to encourage citizen participation and involvement in programs/activities under U.S. Department of Housing and Urban Development (HUD) Five-Year Consolidated Plan. The Five-Year Consolidated Plan identifies the City’s housing, homeless and community development needs and establishes goals and strategies for addressing those needs, including the use of Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) funds. The Citizen Participation Plan sets forth the mutual rights, duties and responsibilities of both the City and participating citizens and citizens’ groups.
CITIZEN PARTICIPATIONAll citizens, including low and moderate income persons, persons living in slum and blighted areas, minorities, non-English speaking persons, persons with disabilities, persons with HIV/AIDS and their families, homeless persons/agencies and residents of public and assisted housing developments are encouraged to participate in the development and review of the:
HUD Five-Year Consolidated Plan; Annual One-Year Action Plan; Substantial Amendments to the One-Year Action Plan or Five-Year Plan; and Consolidated Annual Performance and Evaluation Report (CAPER) Citizen Participation Plan
Every citizen and citizen group shall be afforded the opportunity to: Submit their views through such groups as the District Advisory Boards (DAB),
Neighborhood Associations or any other neighborhood or community organization; Submit written or verbal comments at formal public hearings or directly to City
Departments administering specific HUD programs.
Notices of public hearings, substantial amendments and notification of 15 or 30 day comment periods will be published in the designated official newspaper or newspapers of general circulation, and advertised on the City-7 cable television channel.
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Accommodations for disabled or non-English speaking residents will be made available upon request.
Copies of the HUD Five-Year Consolidated Plan, the Annual One-Year Action Plan and Consolidated Annual Performance and Evaluation Report (CAPER) will be made available for public review at City Hall, the main and selected branch libraries, and other designated locations. Requirements for public comment periods, environmental review, request for release of funds and advertising are as follows:
Comment Period
Public Hearing
Environmental Review *
Request for Release of
Funds*
Advertise in Local
Newspaper(s)Five-Year
Consolidated Plan
30 Days Yes No No Yes
One-Year Action Plan
30 Days Yes Yes Yes Yes
Consolidated Annual
Performance and
Evaluation Report
(CAPER)
15 Days Yes N/A N/A Yes
Substantial Amendments
30 Days No ** *** Yes
Non-Substantial Amendment
None No No *** No
* Public comment periods for Notice of Finding of No Significant Impact (FONSI) and notice of intent to Request Release of Funds (RROF) will be issued concurrently and require a 15 day comment period unless there are exceptional circumstances which then would require a 30 day comment period.** Environmental findings may be re-evaluated as necessary.*** Activities that are Exempt or Categorically Excluded from an environmental assessment do not require a request for release of funds.
Substantial Amendments or Amendments to a Consolidated Plan or Annual Action Plan related to CARES Act CDBG and ESG funding and/or Other Funding related to COVID-19 response or for response to any disasters declared by the Federal government will require a comment period of five days, with associated plans or funding allocations to be posted on the City website.
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SUBSTANTIAL AMENDMENT:A change that exceeds 20% of the annual grant amount of any funding component will constitute a substantial amendment. A substantial amendment will be required in order to change the use of CDBG, HOME, or ESG funds from one eligible activity to another, or to add a new eligible activity.
Written comments received during the 5/15/30 day comment periods and comments received at the public hearings will be considered prior to preparing the final consolidated plan, before the substantial amendment is implemented or before submitting a performance report on the consolidated program to HUD.
PUBLIC HEARINGSCitizens will be notified of and invited to attend all public hearings, which will also be accessible to persons with disabilities. At least two public hearings per year will be held to:
Review development of proposed activities; and Review program performance of grant funding.
ACCESS TO MEETINGSThe City will provide timely notification of local meetings and public hearings. Notice will be made at least two weeks in advance for public hearings.
Notices of public hearings and other meetings pertaining to development of the Five-Year Consolidated Plan, the One-Year Action Plan and the Comprehensive Annual PerformanceEvaluation Report may also be provided through:
Publication of notices in the official designated newspaper or newspapers of general local circulation;
Publication in other local publications or on the City’s Web page; Notification of District Advisory Boards; Making notices available to community organizations and at public facilities such as
libraries and community centers; and/or Notification through cable TV Channel, or through the City’s Office of Community
Engagement.
Notices will contain information on day, time, place, and purpose of the public hearings/meetings.
Meetings and public hearings will be held in facilities accessible to persons with disabilities.
An opportunity to speak at meetings and public hearings is afforded those desiring to do so within the meeting protocol established.
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ACCESS TO INFORMATIONCitizens, public agencies and other interested parties will be given the opportunity to receive information, review and submit comments on any proposed submission regarding the Five-Year Consolidated Plan and annual use of funds under the programs. A summary of the proposed Five-Year Consolidated Plan will be published to afford citizens 30 days for review and comment. Written comments will be considered prior to adopting the plan.
Citizens will be invited to comment on needs and strategies pertaining to the Five-Year Consolidated Plan or, any program included within the scope of the Five-Year Consolidated Plan, prior to submission of the Five-Year Consolidated Plan to HUD.
Citizens will be provided information on the amount of funds available (annually) under the programs covered by the Five-Year Consolidated Plan, the range of activities that may be undertaken, and the estimated amount that will be designed to meet the low/moderate benefitnational objective.
Information pertinent to the Five-Year Consolidated Plan, One-Year Action Plan, Substantial Amendments, and the Comprehensive Annual Performance Evaluation Report is available during regular business hours between 8 a.m. and 5 p.m., Monday through Friday, in the Housing and Community Services Department, 455 N. Main, 10th Floor, Wichita, Kansas, 67202, and on the City of Wichita website.
DISPLACEMENTThe City intends to undertake activities with funds covered by the Five-Year Consolidated Plan that minimize displacement of persons. In the event displacement occurs, the Uniform Relocation and Real Property Acquisition Policies Act of 1970 (Uniform Act), as amended will be followed. Persons displaced will be provided information on their rights and benefits, and will receive referrals for comparable replacement housing in adjacent neighborhoods. All payments will be in accordance with HUD regulations implementing the Uniform Act.
TECHNICAL ASSISTANCEThe City will provide technical assistance to low, very low, and poverty income individuals in developing proposals for funding, as part of the pre-proposal process for all requests for proposals utilizing these federal funds. City staff will also provide technical assistance to grant recipients to ensure compliance with federal rules and regulations.
CITIZEN REPRESENTATIONThe District Advisory Board (DAB) is an appointed body for each City Council district with advisory responsibilities to their respective City Council member. There are six eleven-member DABs located in each of the City Council districts. Each Council district contains approximately one sixth of the City’s population, with DAB membership boundaries coinciding with City Council district boundaries. DAB responsibilities include but are not limited to:
Review and advise the District Council member on capital improvements and neighborhood planning.
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Review and make recommendations on local traffic concerns. Serve as an informational exchange and make recommendations to the District Council
member on zoning and land use matters. Establish an effective method to disseminate and communicate information of interest to
residents of the District. Advise the District City Council member on appointments to City advisory
boards/commissions. Work closely with neighborhood organizations, homeowners associations and
community-based groups to overcome obstacles to citizen actions and involvement with neighborhoods and community.
Serve as a vehicle for citizen involvement, education and input, and a forum for citizens to provide comments and direction to address issues of concern for the District and community.
A formal review process will be established through a 14 member Grants Review Committee (GRC) with the following composition: six DAB members designated from each City Council District; two from the Wichita Independent Neighborhoods Association; one from United Way; one representative of the Sedgwick County Manager; one representative of theUSD 259 Superintendent, one representative of the Wichita State University President; one representative from large business, and one representative from small business. The GRC will review CDBG, HOME and ESG funding proposals and applications, hold a public hearing regarding those proposals, and submit funding recommendations to the City Councilthrough the City Manager. Nothing herein will preclude the Committee from considering comments from their respective organizations.
BILINGUAL OPPORUNITIESThe City will accommodate the needs of non-English speaking citizens for participation in development/review of the Five-Year Consolidated Plan, the One-Year Action Plan and Consolidated Annual Performance and Evaluation Report by publishing public notices in minority and non-English newspapers (as available/appropriate); and providing interpreters for public hearings, upon request.
COMPLAINTS The City will provide written responses to complaints and grievances within fifteen (15) working days of receipt, where practicable. Citizens wishing to file complaints should contact the Citizen Participation Coordinator, who is responsible for the implementation and oversight of the Citizen Participation Plan, at the following address:
Director of Housing and Community Services455 N. Main, 10th FloorWichita, Kansas 67202
(316) [email protected]
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Agenda Item No. V-7
City of WichitaCity Council Meeting
June 2, 2020
TO: Mayor and City Council Members
SUBJECT: Professional Services Agreement
INITIATED BY: Law Department
AGENDA: New Business
____________________________________________________________________________________
Recommendation: Approve the agreement and authorize all necessary signatures.
Background: City Utility staff are working with the Kansas Department of Health and the Environment (“KDHE”) and the Kansas Development Finance Authority (“KDFA”) on the structure of a loan agreement to finance a portion of the City’s new water treatment plant under the State Revolving Fund Loan (“SRF Loan”) program administered by KDHE. KDFA is involved in the discussions because bonds issued and marketed by KDFA will provide a significant funding source for the SRF Loan program.
Normally, the City’s general Bond Counsel, currently Gilmore & Bell, P.C., would advise and assist the City in structuring the terms of the SRF Loan and providing legal opinions in connection with the loan closings. However, Gilmore & Bell, P.C. also serves as Bond Counsel to KDFA and KDFA has requested that the firm not participate in the SRF Loan transaction on behalf of the City of Wichita due to conflict concerns.
Analysis: Staff requested proposed pricing from the local firm of Triplett Woolf Garretson, LLC, to provide the necessary opinions and to advise and assist the City in negotiating the terms of the SRF Loans. Apart from Gilmore & Bell, P.C., Triplett Woolf Garretson, LLC is the other local firm that provides legal services in the area of municipal finance and the firm has worked on a number of prior City of Wichita financings.
As the SRF Loan structure is currently contemplated by KDHE, the $275,000,000 anticipated aggregate principal amount of the SRF Loans would be drawn by the City in $55,000,000 installments each year for five years, under five separate loan agreements, with substantially similar terms, but with interest rates reflecting market rates at the times of the various installments.
Financial Considerations: Triplett Woolf Garretson, LLC is willing to provide the necessary services for a fee of $42,000 for the closing of the initial installment, and $36,000 for each of the installments thereafter (subject to mutual renegotiation if the final installment is less than the $55,000,000 anticipated). The agreement also provides for reimbursement of required travel or incidental expenses, but total compensation and reimbursements are subject to a cap of $191,000.
The fee for each installment of SRF Loan proceeds will be contingent upon, and payable at the time of, thesuccessful closing of that particular installment.
Legal Considerations: The Law Department has reviewed the agreement and approved it as to form.
Recommendation/Action: It is recommended that the City Council approve the agreement and authorizethe necessary signatures.
Attachment: Professional Services Agreement 151
PROFESSIONAL SERVICES AGREEMENT
by and between
THE CITY OF WICHITA, KANSAS
and
TRIPLETT WOOLF GARRETSON, LLC
THIS AGREEMENT is made and entered into this 2nd day of June, 2020, by and
between THE CITY OF WICHITA, KANSAS, a municipal corporation of the State of Kansas,
having its principal office at 455 North Main Street, Wichita, Kansas ("City"), acting for and on
behalf of its Department of Law (“City Attorney”) and TRIPLETT WOOLF GARRETSON,
LLC, having its principal office at 2959 N. Rock Road, Suite 300, Wichita, Kansas 67226
(“Attorney").
WHEREAS, City, through its City Attorney, is authorized by law to employ attorneys to
assist the City Attorney in representation of the legal interests of the City; and
WHEREAS, City is in need of outside counsel for legal review and advice, to provide
assistance in negotiating loan terms and a legal opinion on the sufficiency of the City’s
proceedings and the enforceability of its obligations in relation to its borrowings from the State
of Kansas for the Northwest Water Treatment facility, and to provide those services as more fully
described in Exhibit A attached hereto and made a part hereof by reference.
WHEREAS, Attorney is desirous of providing such services for the City, and City is
desirous of retaining the services of Attorney.
NOW, THEREFORE, IT IS MUTUALLY AGREED by and between the parties as
follows:
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1. Attorney shall be retained by the City to provide professional services in connection
with the above-referenced matter.
2. The Attorney hereby agrees to provide professional services to the City as required
herein, primarily by and through J.T. Klaus, who is a partner in the firm.
3. Attorney shall be compensated for its services for each separate installment of the
proposed borrowing, as set forth below. Billing statements shall be prepared in a manner
consistent with the parameters set forth in Cypress Media, Inc. v. City of Overland Park, 268
Kan. 407 (2000) for the purpose of protecting attorney-client privileged information and work
product. Attorney shall be compensated by the City for work on each installment of the proposed
borrowing as and when each loan is successfully closed, as follows:
A. First installment - $42,000
B. Second installment - $36,000
C. Third installment - $36,000
D. Fourth installment - $36,000
E. Fifth installment - $36,000 (with adjustment for lesser amount borrowed
on final issue at then applicable rates, to be mutually agreed upon prior to
commencement of work on the documents for this final borrowing).
4. In addition, City agrees to pay the reasonable and necessary expenses and
disbursements actually incurred by Attorney, including but not limited to out-of-pocket
disbursements for postage, deliveries, and out-of-town costs, if applicable. In no event, however,
shall the total compensation and reimbursement of expenses hereunder exceed the sum of
$191,000.00 in the aggregate, unless specifically authorized by the City Council of the City of
Wichita, Kansas. Payments for expenses and disbursements shall be made monthly in
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accordance with City purchasing procedures upon presentation of itemized statements for
expenses incurred and services rendered showing, by date, the activities engaged in under this
Agreement. There shall be no further compensation for services rendered or for expenses
incurred in addition to those specified above in the absence of prior written consent. It is
understood that Attorney shall have no responsibility to perform services if the City does not
authorize additional funds for payment of same.
5. This Agreement may not be assigned, transferred, or in any way disposed of by
Attorney without first having obtained written approval from the City Manager or City Council
of the City of Wichita, Kansas.
6. Attorney agrees that J. T. Klaus, through whom it is to perform the services of this
Agreement, will be available at all reasonable times for conferences and consultation with the
City Council, the City Manager, and/or the City Attorney throughout the term of this Agreement.
7. The term of this Agreement shall be from the date signed above through December 31,
2025.
8. This Agreement contains no authorization for Attorney to sign any papers or
documents in the name of the City Attorney. Further, it is understood and agreed that Attorney
shall have no authority to contract or incur any liability, cost, or expense on the part of the City,
except as may be authorized by this Agreement or specifically authorized in writing by the City
Attorney.
9. Either party may terminate this Agreement upon ten (10) days’ written notice to the
other. In the event of such termination, Attorney shall be paid for services rendered and properly
documented and for which payment has not been made.
10. Attorney agrees to maintain professional liability insurance coverage during the term
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of this Agreement with the limits of such coverage to be not less than $5,000,000.00.
11. Attorney agrees that it will observe the provisions of the Wichita Ordinance Against
Discrimination and will not discriminate against any person in the performance of services under
this Agreement because of race, color, sex, religion, national origin, ancestry, marital status, age,
or disability, except where criteria based on age or absence of disability is a bona fide occupa-
tional qualification.
IN WITNESS WHEREOF, this Agreement has been executed the day and year first
above written.
THE CITY OF WICHITA, KANSAS
By_______________________________________ Brandon S. Whipple, Mayor
ATTEST:
__________________________________________Karen Sublett, City Clerk
TRIPLETT WOOLF GARRETSON, LLC
By_______________________________________ J. T. Klaus, Partner
Approved as to Form:
___________________________Jennifer MagañaCity Attorney and Director of Law
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EXHIBIT “A”
SCOPE OF SERVICES TO BE PROVIDED
During the performance of the contract, Attorney agrees to perform and shall be prepared to provide a broad range of professional services relative to matters leading up to and following the City’s anticipated borrowing(s) from the State of Kansas Revolving Fund to defray a portion of the costs of construction of a new water treatment plant. The resulting obligations are intended to constitute special revenue obligations of the City, payable from net revenues of its combined Water and Sewer Utility, on a parity with outstanding Water and Sewer Utility Revenue Bonds of the City. Professional services to be provided hereunder shall include, but not be limited to, the following:
1. Render advice, guidance and assistance when requested by the City Manager, City Attorney, Director of Finance or their designees, relative to the proposed borrowings, including negotiation of loan terms, the drafting or review of the proposed loan agreement(s), drafting or review of proposed resolutions or ordinances of the Governing Body, and any necessary public notices;
2. Prepare all special certificates needed to complete the City’s borrowings, including any necessary closing certificates and receipts;
3. Assist in preparation of any necessary transcripts for the borrowings;
4. Examine certified copies of official transcripts of all proceedings for the borrowings;
5. Render acceptable enforceability opinions as to the borrowing(s) and the City’s related approval and execution proceedings;
6. Issue and deliver other written opinions pertaining to any legal question concerning an area of law pertinent to the borrowings and their relation to other outstanding Water and Sewer Utility Revenue obligations of the City, the City’s uses of proceeds of the borrowings, or subsequent or proposed uses of the financed facility, at the request of the City Attorney;
7. Have available at all reasonable times a member of the firm for the purposes of providing the services described herein in a timely manner;
8. Upon request, attend City Council meetings when a matter involving the proposed borrowings is to be considered by the City Council;
9. Upon the request of the City Council or the City Manager, provide a report to the City Council summarizing the borrowings the City Council is considering;
10. Provide advice and assistance to the City Attorney and the Director of Finance in the preparation and review of agenda items relating to bond matters prior to submission to the City Council.
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Agenda Item No. V-8
City of WichitaCity Council Meeting
June 2, 2020
TO: Mayor and City Council
SUBJECT: 20 Ride Non-Expiring Passes for $20
INITIATED BY: Wichita Transit
AGENDA: New Business
Recommendation: Approve Wichita Transit to provide 20 Ride Passes at a discounted rate from June 2, through August 18, 2020.
Background: Due to the impact of COVID-19 on the community, many Wichita residents are without employment or have experienced a reduction of resources not limited to transportation options. The cost of transportation could create more barriers for families to obtain the required necessities for their households.
Analysis: In an effort to reduce the financial hardships on citizens during this COVID-19 pandemic, Wichita Transit is proposing the sale of a 20 Ride Pass from June 2 through August 18, 2020 at a cost of $20. The passes would not have an expiration date required for use, which would increase their value to the non-daily user and would represent a reduction of 57% of the full fare. By lowering the cost and eliminating the expiration date, Wichita Transit believes this proposal will create more opportunities for citizens to use Wichita Transit.
Financial Considerations: The overall revenue reduction amount of this program is eligible to be reimbursed 100% through the CARES Act. It is estimated that over the period will be 5,000 passes with a reimbursement totaling $65,000.
Legal Considerations: None.
Recommendations/Actions: It is recommended that the City Council approve Wichita Transit to provide 20 Ride Passes for $20 from June 2 through August 18, 2020.
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Agenda Item No. V-9
City of WichitaCity Council Meeting
June 2, 2020
TO: Mayor and City Council
SUBJECT: Police Patrol East Station Construction RFP Criteria (District I)
INITIATED BY: Department of Public Works & Utilities
AGENDA: New Business______________________________________________________________________________
Recommendation: Approve the Request for Proposal (RFP) selection criteria for construction services of the new Police Patrol East Station.
Background: On April 16, 2019, a project to design and construct a new Police Patrol East Station was approved by the City Council. On December 17, 2019, the City Council approved the contract for design services with GLMV Architecture. The design scope included a pause at partial design completion in order to hire a Construction Manager at Risk (CMAR) that would provide insight to finishing the design and build the patrol station.
Analysis: The design has progressed to a point where it is time to solicit the CMAR through a RFP process. The RFP will require that each proposing firm submit a Guaranteed Maximum Price (GMP) to construct the station.
Per Charter Ordinance 228, selection criteria must be approved by City Council prior to issuance of anRFP for these types of services. The recommended criteria and weighting are as follows:
1. GMP, Alternate Costs & Value Engineering Ideas 55%2. Experience with Similar Projects 15%3. References from Projects 10%4. Project Management Approach 10%5. Planning, Coordination & Safety Plans 5%6. Emerging and Disadvantaged Business participation 5%
If approved, the RFP Staff Screening and Selection Committee (SSSC) will shortlist, interview and rank contractors according to these criteria, and will bring the recommended contractor and proposed contract back for City Council approval.
Financial Considerations: None.
Legal Considerations: The Law Department has reviewed and approved compliance with Charter Ordinance 228.
Recommendation/Action: It is recommended that the City Council approve the RFP selection criteriafor construction services of the new Police Patrol East Station.
Attachment: None.
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Agenda Item No. VIII-1City of Wichita
City Council Meeting June 2, 2020
TO: Wichita Airport Authority
SUBJECT: CMAR Criteria - Aviation Fuel Storage and Distribution Facility Rehabilitation Project; Eisenhower National Airport
INITIATED BY: Department of Airports
AGENDA: Wichita Airport Authority (Non-Consent)___________________________________________________________________________________
Recommendation: Approve the selection criteria.
Background: The Aviation Fuel Storage and Distribution (AFSD) facility at Eisenhower National Airport was constructed in 1954 concurrently with construction of the new municipal airport, as the sole facility to store and dispense aviation fuel to the airlines, cargo operators, and fixed-base operators. The AFSD continues to serve the same customer base today. The project installed eight 25,000-gallon underground storage tanks (UST). These original USTs have remained continuously in service, with multiple upgrades and improvements. Currently, six of the USTs store Jet-A fuel, and the remaining two USTs are temporarily empty pending conversion to Jet-A fuel storage. Under normal times, the six USTs allow for approximately three to four days of fuel storage, which is the minimum requirement of the airlines. Converting the two empty tanks to Jet-A storage will increase the available storage. Currier and Company was selected to provide consulting services. The project was initiated with Wichita Airport Authority (WAA) approval on November 13, 2018. On January 14, 2020, approval was granted to use the Construction Manager At-Risk (CMAR) delivery method, as allowed in Charter Ordinance 228. At that time, the WAA did not expressly establish CMAR selection criteria.
Analysis: Charter Ordinance 228, Section 6 identifies selection criteria for the CMAR process, which is shown below. Additionally, the City of Wichita Emerging Business Enterprise program is recommended to be included in the selection criteria.
Proposer’s experience with similar projects and the project delivery method Proposer’s references of projects constructed using the CMAR process Proposer’s project management approach Proposer’s identification and intended solutions to project challenges Proposer’s bonding capacity for this project Proposer’s overview of its pre-construction, construction planning, construction coordination and
safety plan Proposer’s fees
The Charter Ordinance calls for these criteria to be confirmed or modified as appropriate for this project. Following WAA approval, the project will be advertised for a Request for Proposals from qualified contractors.
Financial Considerations: Not applicable.
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Legal Considerations: The Law Department concurs that this procedural step is necessary to comply with Charter Ordinance 228.
Recommendations/Actions: It is recommended that the Wichita Airport Authority approve the selection criteria, or provide additional modified criteria.
Attachments: None.
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Agenda Item No. VIII-2
City of WichitaCity Council Meeting
June 2, 2020
TO: Wichita Airport Authority
SUBJECT: Mid-Continent Aviation Services, Inc.Use and Lease AgreementWichita Dwight D. Eisenhower National Airport
INITIATED BY: Department of Airports
AGENDA: Wichita Airport Authority (Non-Consent)
Recommendation: Approve the agreement.
Background: On November 5, 2019, the Wichita Airport Authority (WAA) approved an assignment and assumption agreement between Wichita Airport Facilities, Inc. (WAF) and ICM, Inc. (ICM), parent company of Mid-Continent Aviation Services, Inc. (MCAS) for the properties located contiguously at 1640 and 1600 Airport Road, known as Hangars 17 and 19, at Wichita Dwight D. Eisenhower National Airport (Airport). The assignment and assumption agreement transferred leasehold interest in the property from WAF to ICM. ICM had previously subleased the property from WAF for the last 10 years. Theproperties include aircraft storage and maintenance bays, customer service area, aircraft ramp, and offices. MCAS conducts a General Aviation Maintenance, Repair & Overhaul (MRO) business from this location.
Analysis: ICM, through its subsidiary corporation MCAS, now wishes to obtain a new agreement with the WAA, effective March 1, 2020 with a five-year Initial Term, and five, five-year Option Terms. The March 1, 2020 effective date coincides with the end of the previous Option Term that ICM acquired through the assignment and assumption agreement. Major capital upgrades and improvements to the property totaling $1.2 million dollars have been undertaken by MCAS over the last five years. In the nearfuture, MCAS intends to make substantial additional capital improvements and upgrades to the property.
Financial Considerations: The rates for the five-year Initial Term will be set as follows: land rental rate of $0.15 per sq. ft. per year for the 249,366 sq. ft. of land, and the facility rental rate at $1.57 per sq. ft.per year for the 62,923 sq. ft. of facilities. The new annual combined facility and land rental due to the WAA is $136,194. This is an increase of 10% of annual revenue compared to the previous year. Beginning with the first Option Term and throughout the remainder of the agreement, the land and facility rent will incrementally increase to levels closer to market value.
Legal Considerations: The Law Department has reviewed and approved the agreement as to form.
Recommendations/Actions: It is recommended that the Wichita Airport Authority approve theagreement and authorize the necessary signatures.
Attachment: Use and Lease Agreement.
162
by and between
WICHITA AIRPORT AUTHORITY
and
MID-CONTINENT AVIATION SERVICES, INC.
at the
Wichita Dwight D. Eisenhower National Airport
Wichita, Kansas
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Table of Contents SECTION Page # 1. PREMISES ........................................................................................................................................................... 4 2. TRIPLE NET LEASE .......................................................................................................................................... 5 3. TERM................................................................................................................................................................... 6 4. LAND RENT ....................................................................................................................................................... 6 5. FACILITY RENT ................................................................................................................................................ 8 6. COMBINED RENTS ........................................................................................................................................... 9 7. OTHER FEES AND CHARGES ....................................................................................................................... 10 8. PAYMENT PROCEDURE ................................................................................................................................ 10 9. LESSEE’S IDENTITY ...................................................................................................................................... 11 10. COMMON USE AND ACCESS ....................................................................................................................... 11 11. PERMITTED COMMERCIAL AERONAUTICAL USE ................................................................................. 12 12. PROHIBITED SERVICES AND USE OF PREMISES .................................................................................... 12 13. AIRCRAFT SELF-SERVICES NOT PROHIBITED ........................................................................................ 14 14. NON-EXCLUSIVE USE OF CERTAIN FACILITIES ..................................................................................... 15 15. LESSEE’S RIGHTS AND PRIVILEGES ......................................................................................................... 15 16. LESSOR’S RIGHTS AND PRIVILEGES ......................................................................................................... 16 17. NON-INTERFERENCE WITH AIRPORT OPERATIONS ............................................................................. 17 18. COOPERATION WITH AIRPORT DEVELOPMENT .................................................................................... 17 19. NEW FACILITIES CONSTRUCTION, RENOVATIONS AND SITE IMPROVEMENTS ........................... 18 20. CONSTRUCTION COSTS ................................................................................................................................ 21 21. CONSTRUCTION INSPECTIONS ................................................................................................................... 23 22. REMOVAL AND DEMOLITION .................................................................................................................... 23 23. TITLE TO FACILITIES, IMPROVEMENTS AND FIXTURES ..................................................................... 23 24. LIENS ................................................................................................................................................................ 24 25. TAXES, LICENSES AND PERMITS ............................................................................................................... 25 26. UTILITIES ......................................................................................................................................................... 26 27. OWNERSHIP .................................................................................................................................................... 27 28. ASSIGNMENT .................................................................................................................................................. 28 29. SUBLEASING, PERMITTING AND CONTRACTING .................................................................................. 28 30. LIABILITY INSURANCE ................................................................................................................................ 30 31. ALL RISK PROPERTY INSURANCE ............................................................................................................. 32 32. SUBROGATION OF INSURANCE ................................................................................................................. 33 33. LOSS OF PERSONAL PROPERTY ................................................................................................................. 34 34. TERMINATION BY LESSOR .......................................................................................................................... 34 35. TERMINATION BY LESSEE .......................................................................................................................... 35 36. MAINTENANCE AND REPAIR BY LESSOR................................................................................................ 36 37. MAINTENANCE AND REPAIR BY LESSEE ................................................................................................ 37 38. FACILITY CONDITION ASSESSMENT ........................................................................................................ 37 39. SNOW AND ICE CONTROL ........................................................................................................................... 38 40. EXTERIOR SIGNS AND ADVERTISING ...................................................................................................... 39 41. PORTABLE STORAGE CONTAINERS/STRUCTURES ............................................................................... 39 42. GRANTING OF EASEMENTS ........................................................................................................................ 40 43. RULES AND REGULATIONS ......................................................................................................................... 40 44. AIRPORT SECURITY PROGRAM COMPLIANCE ....................................................................................... 40 45. MINIMUM STANDARDS FOR AERONAUTICAL ACTIVITIES ................................................................ 42 46. ENCROACHERS, TRESPASSERS AND OTHER THIRD PARTY HAZARDS ........................................... 43
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47. FIRE EQUIPMENT AND SYSTEMS ............................................................................................................... 43 48. ENVIRONMENTAL ASSESSMENT ............................................................................................................... 43 49. ENVIRONMENTAL COVENANTS ................................................................................................................ 44 50. INDEMNITY ..................................................................................................................................................... 47 51. DAMAGE OR DESTRUCTION ....................................................................................................................... 48 52. CONDEMNATION ........................................................................................................................................... 48 53. MODIFICATIONS FOR GRANTING FAA FUNDS ....................................................................................... 49 54. NONDISCRIMINATION .................................................................................................................................. 49 55. GENERAL PROVISIONS ................................................................................................................................. 50 56. FORCE MAJEURE ........................................................................................................................................... 55 57. THIRD PARTY RIGHTS .................................................................................................................................. 55 58. QUIET ENJOYMENT ....................................................................................................................................... 55 59. HOLD OVER ..................................................................................................................................................... 55 60. SURRENDER OF POSSESSION AND RESTORATION ............................................................................... 56 61. INTENTION OF PARTIES ............................................................................................................................... 56 62. ENTIRE AGREEMENT SUPERSEDES PRIOR AGREEMENTS .................................................................. 57 63. AMENDMENT .................................................................................................................................................. 58 64. APPROVAL, CONSENT, DIRECTION OR DESIGNATION BY LESSOR .................................................. 58
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THIS USE AND LEASE AGREEMENT (“Agreement”) is entered into this __ day of 2020,
between the Wichita Airport Authority, Wichita, Kansas (“LESSOR”) and Mid-Continent Aviation
Services, Inc., Federal Tax Identification #27-1813319 (“LESSEE”), or collectively referred to as the
(“Parties”) to this Agreement.
WHEREAS, LESSOR is a quasi-governmental entity authorized under the laws of the State of Kansas to
own and operate one or more airports, with full, lawful power and authority to enter into binding legal
instruments by and through its governing body; and
WHEREAS, LESSOR owns, operates, regulates, administers, and maintains the Wichita Dwight D.
Eisenhower National Airport (“Airport”); and
WHEREAS, LESSEE is an individual, or an entity authorized to operate in the state of Kansas that desires
to lease land and improvements, conduct aeronautical activities, and provide commercial aeronautical
services on the Airport from LESSOR under the terms and conditions set forth in this Use and Lease
Agreement; and
WHEREAS, the Parties desire to enter into this USE AND LEASE AGREEMENT for the purpose of
LESSEE leasing from LESSOR parcels of Land and improvements thereon, and providing commercial
aeronautical services and aeronautical activities therefrom; and
NOW, THEREFORE, in consideration of the mutual promises and agreements herein set forth, LESSOR
and LESSEE do hereby covenant and agree as follows:
1. PREMISES
a. LESSOR does hereby agree to let to LESSEE, and LESSEE does hereby agree to rent from LESSOR
certain real property located at the Wichita Dwight D. National Eisenhower Airport, 1600 and 1640
Airport Road, Wichita, Kansas consisting more or less of 249,366 sq. ft. of Land, (“Premises”), as set
forth and shown on the attached Exhibit “A”. The Premises shall include the Land, aircraft parking
apron, and any Facilities, structures, and improvements located thereupon the Land.
Hangar 17 - 1640 Airport Road 29,420
Breakdown:
Hangar 17 North 10,145
Hangar 17 South 9,209
Office & Other First Floor 5,046
Office & Other Second Floor 2,320
GSE Shop 2,700
Hangar 19 - 1600 Airport Road 33,503
Breakdown:
Hangar 19 North 13,265
Hangar 19 South 7,464
Office & Other First Floor 7,276
Office & Other Second Floor 1,308
Garage 4,190166
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b. For the purposes of this Agreement, “Exclusive Use” Premises shall mean all Land and Facilities
leased to LESSEE for which LESSEE shall have non-sharable Exclusive Use of Premises as shown
on Exhibit “A” attached hereto. For the purposes of this Agreement, “Preferential Use” Premises shall
mean the aircraft parking apron leased to LESSEE for which LESSEE shall have Preferential Use as
shown on Exhibit “A” attached hereto, and defined as the higher and continuous priority over all other
users.
c. The Director may, with notice appropriate under the circumstances, authorize another aeronautical
tenant upon the Airport to utilize LESSEE’S Preferential Use aircraft parking apron when such use
does not unreasonably conflict with LESSEE’S business activities, and such use is subordinate to the
LESSEE’S higher and continuous priority use.
d. The taking of possession of the Premises by LESSEE shall in itself constitute acknowledgement that
the Premises are in good and tenantable condition, and LESSEE agrees to accept Premises in its
presently existing condition, “as is,” “where is,” and that LESSOR shall not be obligated to make any
improvements or modifications to the Premises.
e. During the Term of this Agreement, LESSOR or LESSEE may cause to be re-measured by a Kansas
professional surveyor, areas within and around the Premises in an effort to more accurately reflect
improvements, additions and modifications. In the event the square footage of the Premises identified
herein differs from the Premises square footage determined by such re-measurement, the Parties agree
to enter into an amendment to this Agreement to modify the Premises description to reflect the actual
square footage of the Premises subject to the provisions of this Agreement. If the actual square footage
of the Premises is determined to differ from that square footage herein defined, the then-current rent
shall be re-calculated and applied. Thereafter, LESSEE’s monthly rent shall be based upon the re-
measured square footage. The Parties agree that any increase or decrease in the rent payable resulting
from re-measurement of the Premises shall not be applied retroactively. The Director is authorized by
LESSOR to execute amendments to this Agreement on behalf of LESSOR to reflect the adjusted
premises and monthly fees and charges.
2. TRIPLE NET LEASE
The Parties agree that this is a triple net lease and that, unless otherwise agreed to in this Agreement or by
amendment or supplement thereto, the LESSEE is solely responsible for all obligations normally imposed
on the Premises, including but not limited to utilities, taxes, insurance, maintenance and repairs, and any
other expenses and costs that arise from the LESSEE’S tenancy, use, operation and administration of the
Premises.
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3. TERM
a. Initial Term. The Term of this Agreement shall commence (“Commencement Date”) on March 1,
2020, and shall continue for a period of five (5) Contract Years (“Term”), with the Term expiring on
February 28, 2025, unless otherwise terminated under provisions agreed to herein.
b. Option Terms. This Agreement may be renewed upon the mutual agreement of the Parties, for up to
five (5) additional and consecutive five (5) year periods (“Option Terms”) as follows:
First Option: March 1, 2025 through February 28, 2030
Second Option: March 1, 2030 through February 28, 2035
Third Option: March 1, 2035 through February 29, 2040
Fourth Option: March 1, 2040 through February 28, 2045
Fifth Option: March 1, 2045 through February 28, 2050
c. If LESSEE wishes to exercise an Option Term, a written request shall be given to LESSOR no less
than ninety (90) calendar days prior to the expiration of the current Term. LESSOR shall deliver any
approval of such request within sixty (60) calendar days prior to the expiration of the current Term.
Rents shall be paid by LESSEE for any Option Term allowed at the escalation rates established in
Sections 4 LAND RENT and 5 FACILITY RENT of this Agreement.
4. LAND RENT
Land Rent is defined as that rent due and payable to the LESSOR by the LESSEE for the Land, as
measured from the outer-most limits of the leased property Premises as set forth and shown on the attached
Exhibit “A”. Upon Commencement Date of this Agreement, LESSEE shall pay Land Rent to LESSOR as
follows:
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Rate Per Sq. Ft. Monthly Annual
TERM 3/1/2020 - 2/28/2025 $0.15 $3,117.08 $37,404.96
OPTION 1 3/1/2025 - 2/28/2030 $0.3500 $7,273.18 $87,278.16
OPTION 2 3/1/2030 - 2/28/2031 $0.3570 $7,418.64 $89,023.68
3/1/2031 - 2/29/2032 $0.3641 $7,566.18 $90,794.16
3/1/2032 - 2/28/2033 $0.3714 $7,717.88 $92,614.56
3/1/2033 - 2/28/2034 $0.3788 $7,871.65 $94,459.80
3/1/2034 - 2/28/2035 $0.3864 $8,029.59 $96,355.08
OPTION 3 3/1/2035 - 2/29/2036 $0.3941 $8,189.60 $98,275.20
3/1/2036 - 2/28/2037 $0.4020 $8,353.76 $100,245.12
3/1/2037 - 2/28/2038 $0.4100 $8,520.01 $102,240.12
3/1/2038 - 2/28/2039 $0.4182 $8,690.41 $104,284.92
3/1/2039 - 2/29/2040 $0.4266 $8,864.96 $106,379.52
OPTION 4 3/1/2040 - 2/28/2041 $0.4351 $9,041.60 $108,499.20
3/1/2041 - 2/28/2042 $0.4438 $9,222.39 $110,668.68
3/1/2042 - 2/28/2043 $0.4527 $9,407.33 $112,887.96
3/1/2043 - 2/29/2044 $0.4618 $9,596.43 $115,157.16
3/1/2044 - 2/28/2045 $0.4710 $9,787.62 $117,451.44
OPTION 5 3/1/2045 - 2/28/2046 $0.4804 $9,982.95 $119,795.40
3/1/2046 - 2/28/2047 $0.4900 $10,182.45 $122,189.40
3/1/2047 - 2/29/2048 $0.4998 $10,386.09 $124,633.08
3/1/2048 - 2/28/2049 $0.5098 $10,593.90 $127,126.80
3/1/2049 - 2/28/2050 $0.5200 $10,805.86 $129,670.32
Escalation rate = 2%/year
Escalation rate = 2%/year
Escalation rate = 2%/year
Escalation rate = 2%/year
LAND RENT
Leased Land Total of 249,366 sq. ft.
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5. FACILITY RENT
Facility Rent is defined as that rent due and payable to the LESSOR by the LESSEE for the Facilities, as
set forth and shown on the attached Exhibit “A”. Upon Commencement Date of this Agreement, LESSEE
shall pay Facility Rent to LESSOR as follows:
Rate Per Sq. Ft. Monthly Annual
TERM 3/1/2020 - 2/28/2025 $1.57 $8,232.43 $98,789.16
OPTION 1 3/1/2025 - 2/28/2030 $1.75 $9,176.27 $110,115.24
OPTION 2 3/1/2030 - 2/28/2035 $2.02 $10,592.04 $127,104.48
OPTION 3 3/1/2035 - 2/29/2040 $2.06 $10,801.78 $129,621.36
OPTION 4 3/1/2040 - 2/28/2041 $2.32 $12,165.11 $145,981.32
3/1/2041 - 2/28/2042 $2.37 $12,427.29 $149,127.48
3/1/2042 - 2/28/2043 $2.42 $12,689.47 $152,273.64
3/1/2043 - 2/29/2044 $2.47 $12,951.65 $155,419.80
3/1/2044 - 2/28/2045 $2.52 $13,213.83 $158,565.96
OPTION 5 3/1/2045 - 2/28/2046 $2.57 $13,476.01 $161,712.12
3/1/2046 - 2/28/2047 $2.62 $13,738.19 $164,858.28
3/1/2047 - 2/29/2048 $2.67 $14,000.37 $168,004.44
3/1/2048 - 2/28/2049 $2.72 $14,262.55 $171,150.60
3/1/2049 - 2/28/2050 $2.77 $14,524.73 $174,296.76
FACILITY RENT
Leased Facilities Total of 62,923 sq. ft.
Escalation rate = 2%/year
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6. COMBINED RENTS
The combined Land Rent and Facility Rent is the total rent due and payable to the LESSOR by the
LESSEE on the first day of each month, as follows:
Monthly Annual
TERM 3/1/2020 - 2/28/2025 $11,349.51 $136,194.12
OPTION 1 3/1/2025 - 2/28/2030 $16,449.45 $197,393.40
OPTION 2 3/1/2030 - 2/28/2031 $18,010.68 $216,128.16
3/1/2031 - 2/29/2032 $18,158.22 $217,898.64
3/1/2032 - 2/28/2033 $18,309.92 $219,719.04
3/1/2033 - 2/28/2034 $18,463.69 $221,564.28
3/1/2034 - 2/28/2035 $18,621.63 $223,459.56
OPTION 3 3/1/2035 - 2/29/2036 $18,991.38 $227,896.56
3/1/2036 - 2/28/2037 $19,155.54 $229,866.48
3/1/2037 - 2/28/2038 $19,321.79 $231,861.48
3/1/2038 - 2/28/2039 $19,492.19 $233,906.28
3/1/2039 - 2/29/2040 $19,666.74 $236,000.88
OPTION 4 3/1/2040 - 2/28/2041 $21,206.71 $254,480.52
3/1/2041 - 2/28/2042 $21,649.68 $259,796.16
3/1/2042 - 2/28/2043 $22,096.80 $265,161.60
3/1/2043 - 2/29/2044 $22,548.08 $270,576.96
3/1/2044 - 2/28/2045 $23,001.45 $276,017.40
OPTION 5 3/1/2045 - 2/28/2046 $23,458.96 $281,507.52
3/1/2046 - 2/28/2047 $23,920.64 $287,047.68
3/1/2047 - 2/29/2048 $24,386.46 $292,637.52
3/1/2048 - 2/28/2049 $24,856.45 $298,277.40
3/1/2049 - 2/28/2050 $25,330.59 $303,967.08
TOTALS
LAND RENT & FACILITY RENT
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7. OTHER FEES AND CHARGES
a. Unless otherwise defined in this Agreement, LESSOR may assess fees and charges to LESSEE
according to rates established by LESSOR in LESSOR’s then-current SCHEDULES OF FEES
AND CHARGES FOR THE WICHITA AIRPORT AUTHORITY. Such Schedules may be
amended from time-to-time by action of the LESSOR upon a minimum of thirty (30) calendar
day’s written notice. LESSOR’s SCHEDULES OF FEES AND CHARGES FOR THE WICHITA
AIRPORT AUTHORITY shall uniformly apply, and be enforced, with regard to all tenants and
operators of the same user groups on the Airport as defined by the SCHEDULES OF FEES AND
CHARGES FOR THE WICHITA AIRPORT AUTHORITY.
b. Miscellaneous Fees and Charges: Any amounts due LESSOR from LESSEE for utility,
maintenance, reimbursements, or other special charges will be paid by LESSEE within thirty (30)
calendar days of the date of the invoice.
8. PAYMENT PROCEDURE
a. LESSEE shall pay to LESSOR in advance on the first day of each month, without demand or
invoicing, for rental for the Premises as set forth herein. LESSEE shall pay to LESSOR all other
fees within thirty (30) calendar days of the date of invoices of all amounts due as set forth in this
Agreement. In the event LESSEE fails to make payment within ten (10) calendar days of the dates
due as set forth in this Agreement, and after LESSOR has provided LESSEE with written notice
and LESSEE does not make payment within seven (7) calendar days after the date said notice is
received, then LESSOR, may charge LESSEE a monthly service charge of twelve percent (12%)
on an annual basis for any such overdue amount, unless a lesser sum is set as the maximum
allowable under state statutes on any such overdue amount, plus reasonable attorneys’ and
administrative fees incurred by LESSOR in attempting to obtain payment. If LESSOR does not
receive payment within seven (7) calendar days of the date of receipt of said written notice, then
the monthly service charge shall retroactively commence on the date the payment was originally
due.
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b. LESSEE shall make all payments to the Wichita Airport Authority and in a form acceptable to
LESSOR. ACH direct deposit is preferred. Bank account and routing information is available
upon request. Payments made by check shall be delivered or mailed to:
Wichita Airport Authority
2173 Air Cargo Road
Wichita, Kansas 67209
or such other address as designated in writing by LESSOR.
c. Bills, notices and invoices may be delivered to the LESSEE by mail, email, or personal delivery
at:
ICM
C/O MCAS/General Counsel
301 N. 1st Street
Colwich, KS 67030
[email protected] and/or [email protected]
or such other address as designated in writing by LESSEE.
9. LESSEE’S IDENTITY
LESSEE must be a natural person or a state franchised business entity (such as a corporation, partnership,
limited liability company, or a joint venture) under State of Kansas Law and is registered with the Kansas
Secretary of State.
10. COMMON USE AND ACCESS
a. LESSEE may access and use certain areas in common with other tenants who now, and may
hereafter occupy other portions of the Airport. LESSEE in common with other tenants, shall have
the right to use public roadways, streets, aircraft parking ramps, taxiways, runways, access gates,
lighting, beacons, navigational aids, or other conveniences for aeronautical or non-aeronautical
activities, and these common use facilities are not offered exclusively to any party. LESSEE shall
conduct its operations in such a manner as to not block, impede, hinder, or obstruct access by
others to these common use facilities, nor in any other way interfere with, nor disrupt the business
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of other tenants, or the quiet enjoyment of their leasehold interests at the Airport. LESSEE
recognizes that this right of quiet enjoyment and unimpeded access extends to all tenants equally.
b. LESSOR reserves the right to grant and/or permit other parties the right to use any portion of the
Airport, except that described in Section 1, Premises, for any permitted purpose, and upon any fair
and non-discriminatory terms established by the LESSOR.
11. PERMITTED COMMERCIAL AERONAUTICAL USE
a. LESSEE shall have the right to provide aeronautical services on the Premises for the purpose of
operating a full-service maintenance, repair and overhaul facility including sale of aircraft parts
and accessories, storage, and support facilities. LESSEE shall have the right of use of the Premises
as defined and regulated under FAA Part 145 Repair Station, or as may be amended by Federal
Aviation Regulations. And further, the LESSEE may store LESSEE’s or LESSEE’s parent or
subsidiary company’s privately owned or leased aircraft. The Director is authorized by LESSOR
to execute amendments to this Agreement on behalf of LESSOR to amend this Section a.
b. LESSEE shall have the right of ingress and egress, in common with others, for both vehicles and
aircraft, for the benefit of its employees, invitees, contractors, subcontractors, agents and
representatives, to be exercised in a reasonable manner. This right of ingress and egress is granted
for activities incidental or related to LESSEE’S approved activities, and for no other purposes
except as may be approved in writing by LESSOR. This right is subject to federal, state and local
security and safety requirements and standards. As required by Kansas state statute and the City
of Wichita Charter Ordinance, it is understood and agreed that the Premises shall be used and
occupied only for aviation purposes or purposes incidental or related thereto in support of
Specialized Commercial Aeronautical activities.
12. PROHIBITED SERVICES AND USE OF PREMISES
a. The Premises shall not be used for any purpose not expressly permitted in Section 11 PERMITTED
COMMERCIAL AERONAUTICAL USE unless expressly authorized by prior written consent of
the LESSOR. The following operations, services or concessions shall be specifically prohibited
upon or from the Premises or any other location on the Airport without the prior written consent
of the LESSOR, and then only with provisions for payment of fees, charges, or percentage of gross
sales as may be deemed reasonably appropriate by the LESSOR. The Director is authorized by
LESSOR to execute amendments to this Agreement on behalf of LESSOR to amend this Section
a. 1) through 12).
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1) Commercial catering, restaurant and/or lounge concessions, except as may be incidental to
aeronautical activities, customer support and convenience, courtesy/complimentary services,
or commercial vending operations on the Premises;
2) Subleasing, permitting or contracting the Premises or portions thereof to any party not engaged
in an aviation activity, or contrary to the provisions of Section 29 SUBLEASING,
PERMITTING, AND CONTRACTING;
3) Commercial (for hire) ground transportation;
4) Commercial “paid” parking;
5) Commercial hotel or lodging;
6) Commercial outdoor advertising;
7) Sale of non-aviation or non-aeronautical products and services;
8) Sale, trade or bartering of aviation fuels, or other fuel or lubricant products;
9) Revenue-producing communication systems or systems not directly applicable to LESSEE’s
operations on the Premises;
10) Automobile rental business or franchise; however, LESSOR shall not object to LESSEE
subleasing to a nationally recognized rental car company to service LESSEE’s aeronautical
customers, or to LESSEE serving as agent or representative for a rental car company for the
same purpose, subject to the requirements of Section 29 SUBLEASING, PERMITTING, AND
CONTRACTING. Regardless of the business relationship, LESSEE shall promptly report to
LESSOR all such business affiliations with rental car companies conducting business to/from
and upon the Premises.
11) Storage and/or maintenance of any auto, truck, trailer, camper, boat, jet ski, motor cycle,
recreational vehicle, or other non-aviation or non-aircraft service and support vehicle or
equipment; provided, that parking of customers’ personal automobiles while the customers are
traveling is not prohibited;
12) Any activity reasonably considered by LESSOR to not be aeronautical services, aviation
purposes, and the support and administration thereof.
b. LESSEE, its affiliated entities, subsidiaries, employees, agents, representatives, contractors, and
subcontractors, shall not transact or otherwise engage in any other activities, business, and/or
services on or from the Premises, except as defined and described in this Agreement, unless such
is provided for by a separate written approval or amendment to this Agreement, and subject to
approval by LESSOR.
c. The LESSEE shall not perform, or allow to be performed, any engine “run-up” in excess of fifty
percent (50%) power level on the Premises.
d. LESSEE shall have no right to overhang or otherwise invade by vegetation, equipment,
improvements, or any part of an aircraft, beyond the leasehold Premises boundary, or the vertical
areas there above commencing at the Premises lease lines. This prohibition applies to both
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permanent and transitory invasions. The sole exception to this provision shall be for the
navigational easement, described in the Airspace and Easement for Flight provisions of Section 55
GENERAL PROVISIONS, granted to airborne aircraft.
13. AIRCRAFT SELF-SERVICES NOT PROHIBITED
a. The Parties acknowledge and agree, for the purposes of this Agreement, and in accordance with the
definition and intent of the U.S. Department of Transportation, FAA Airport Compliance Manual -
ORDER 5190.6B, “Self-Fueling” shall mean the fueling of an aircraft by the aircraft owner, or with
his or her own employees and using his or her own equipment. Self-Fueling, and the operation and
maintenance of equipment and systems reasonably required in support thereof, shall be subject to
Authority’s enforcement of reasonable and non-discriminatory rules, procedures and standards that
would prevent unsafe, unsightly, detriments to public welfare, or that would affect the efficient use of
the Airport by others. Self-Fueling applies to fuel purchased, contracted, or obtained by the aircraft
owner for his/her use from the source of his/her preference. Self-Fueling is not a commercial activity,
and shall not be contracted out to another party.
b. The Parties acknowledge and agree, for the purposes of this Agreement, and in accordance with the
definition and intent of the U.S. Department of Transportation, FAA Airport Compliance Manual -
ORDER 5190.6B, “Self-Service” shall mean legally authorized activities such as adjusting, repairing,
cleaning, and otherwise servicing an aircraft by the aircraft owner, or his/her employees with resources
supplied by the aircraft owner. Self-Service is not a commercial activity, and shall not be contracted
out to another party.
c. The Parties acknowledge and agree, for the purposes of this Agreement, that no right or privilege has
been granted to LESSEE which would prevent any person, firm or corporation operating aircraft on
the Airport from performing any lawful services on its own aircraft with its own regular employees,
including but not limited to “Self-Fueling” and “Self-Service,” that it may choose to perform, and may
be allowed, or not otherwise prevented by, federal law or regulation. Services that are performed by
persons other than an owner or employees thereof for compensation or other consideration are deemed
to be commercial activities, and may only be provided by persons and/or companies authorized by the
Wichita Airport Authority to conduct such commercial business at the Airport. Any person, firm or
corporation shall, however, whether defined as “Self-Fueling” or “Self-Service,” comply with all
federal, state and local codes, regulations, and statutes which apply to such service or activity.
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14. NON-EXCLUSIVE USE OF CERTAIN FACILITIES
LESSOR grants the LESSEE, in common with other users, the non-exclusive use of the Airport and
appurtenances, together with all facilities, improvements and services which are now, or may hereafter be
provided at, or in connection with the Airport. This use is limited to the purposes for which such facilities
were designed and constructed, and for no other purposes, and is available on a non-exclusive use basis,
according to the discretionary operational decisions of LESSOR. These facilities include, but are not
limited to roadways, streets, ramps, taxiways, runways, access gates, lighting, beacons, navigational aids,
or other conveniences for aeronautical operations which are not exclusively leased areas of the LESSEE
or of any other tenant on the Airport.
15. LESSEE’S RIGHTS AND PRIVILEGES
a. LESSEE shall have the following rights and privileges on the Premises and on the Airport:
1) Those rights and privileges specifically authorized under this Agreement; and
2) The rights to install, operate, repair, and store upon the Premises all personal property and
fixtures necessary for the conduct of LESSEE’s lawful business; and
3) The right of ingress and egress to and from the Premises, which rights shall extend to
LESSEE’s customers, agents, invitees, contractors, representatives and employees; subject,
however, to all reasonable regulations; and
4) The right in common with others authorized to do so, the use of Common Use areas of the
Airport, consisting of but not limited to public roadways, streets, aircraft parking ramps,
taxiways, runways, access gates, lighting, beacons, and navigational aids; and
5) The right to public and non-exclusive use taxiway connections and access to and from the
Premises and LESSOR’s public and non-exclusive use air operations areas (AOA) connecting
and adjacent to the Premises subject to the provisions of Section 17 NON-INTERFERANCE
WITH AIRPORT OPERATIONS, and Section 18 COOPERATION WITH AIRPORT
DEVELOPMENT.
6) All other rights and privileges expressly granted to LESSEE under the terms and conditions
of this Agreement.
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16. LESSOR’S RIGHTS AND PRIVILEGES
a. LESSOR expressly reserves from the Premises:
1) Mineral Rights. All gas, oil and mineral rights in and under the soil.
2) Water Rights. All statutory, exempt, vested, and granted appropriation rights for the use of
water, and all rights to request further appropriations for the Premises.
3) Airspace. A public right of flight through the airspace above the surface of the Premises. This
public right of flight shall include the right to cause or allow in said airspace, any noise inherent
in the operation of any aircraft used for navigation or flight through said airspace or landing
at, taking off from, or operation on the Airport. No liability on the part of LESSOR or any
tenant will result from the exercise of this right.
4) Navigational Aids. The right to install, maintain and modify and/or permit others to install,
maintain and modify on the Premises visual and electronic navigational aids.
5) Entry and Inspection of Premises. The right of LESSOR, its authorized officers, employees,
agents, contractors, subcontractors, authorized government agents, or other representatives to
enter upon the Premises at reasonable intervals during regular business hours, and with prior
notice;
6) Inspection. To inspect at reasonable intervals during regular business hours, and with prior
notice, to determine whether LESSEE has complied, and is complying with the terms and
conditions of this Agreement. To inspect without notice at any time in case of emergency,
apparent or imminent emergency or urgency, or lawful investigation the Premises, facilities,
and equipment for compliance with laws, regulations and/or codes of the federal, state or local
government, airport rules and regulations, and airport standard operating procedures; and
7) Construction. To construct or erect new facilities, or to perform maintenance, repair, or
replacement relating to the Premises or any facility thereon, as may be required and necessary,
but LESSOR shall not be obligated to exercise this option.
8) Radio/Wireless Communication Systems. The right to approve or withhold approval of any
use of fixed RF Systems for the transmission of radio frequency signals in/on the Premises.
9) General Provisions. The right to exercise any and all rights set out in Section 55 GENERAL
PROVISIONS.
10) Signage. The right to enter onto the premises for installation, and the right to install any
signage on the Premises required by law, order, rule, regulation, Airport Security Program or
federal directive.
b. Provided that exercise by LESSOR of any such reserved rights 1) through 10) shall be without
expense to the LESSEE, excepting the provisions of Section 18 COOPERATION WITH
AIRPORT DEVELOPMENT, and shall not unreasonably or materially interfere with LESSEE’s
use of the Premises and shall not unreasonably delay LESSEE in the exercise of its rights, or the
performance of its duties hereunder, or increase the costs of such performance.
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17. NON-INTERFERENCE WITH AIRPORT OPERATIONS
a. LESSEE covenants and agrees that it shall not cause, consent to, or allow to be caused on the
Premises:
1) Any activity or condition which shall materially or adversely affect the development,
improvement, operation, or maintenance of the Airport or its facilities, nor shall LESSEE use
or permit the Premises to be used in any manner which might interfere with the ground
movement, landing and take-off of aircraft from the Airport, or otherwise constitute a hazard
or nuisance to the general public, or to LESSOR’s tenants or the customers, agents, invitees,
contractors, representatives and employees of those tenants; and
2) Any activity or condition which shall materially or adversely affect, infringe upon, block, or
interrupt the operations and business activity of other airport tenant leaseholds; and
3) Any activity or condition resulting in damage, destruction, or interruption of water, sewer,
electric, gas, communications or data utility facilities and services, or to fire detection and
suppression systems; and
4) The storage of flammable or combustible materials except as allowed by LESSOR under this
Agreement, and only in accordance with applicable federal, state, and local laws and
ordinances, and applicable fire, building, and safety codes; and
5) Any activity or condition causing, or which may cause a violation of 14 CFR Part 77 Safe,
Efficient Use and Preservation of the Navigable Airspace, or applicable sections of Chapter
28.08 of the City of Wichita and Sedgwick County AIRPORT HAZARD ZONING CODE.
6) Any activity or condition causing, or which may cause or create electronic interference of
aeronautical communications or navigational signals between aircraft and ground based
equipment.
18. COOPERATION WITH AIRPORT DEVELOPMENT
LESSEE understands and agrees that LESSOR may pursue Airport development, improvements and
maintenance activities from time-to-time that may directly or indirectly affect the Premises and other areas
of the Airport. LESSEE agrees to work cooperatively and in good faith with the LESSOR and other
tenants and contractors in development, improvement and maintenance activities to minimize or mitigate
any disruptions. If requested by the LESSOR, LESSEE shall cooperate with and assist the LESSOR to
the greatest extent possible in the development and implementation of any plans, designs, ingress/egress,
or transition that may arise in connection with such Airport development, improvement, and maintenance
activities. LESSOR may temporarily or permanently close, re-route, or consent to the closing or re-routing
of any method of ingress or egress on the Airport, so long as reasonable means of ingress and egress to
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taxiways, ramps or portions thereof for purposes of maintenance, replacement, re-construction or
expansion. Exercise by LESSOR of any such Airport development, improvement, or maintenance shall
be paid by LESSOR. LESSEE shall not be entitled to any compensation for loss of revenue, business
interruption, relocation, temporary storage rental, additional labor costs, additional increased fuel costs,
cycles on engines, or any other expense attributable to the development, improvement, or maintenance on
the Airport.
19. NEW FACILITIES CONSTRUCTION, RENOVATIONS AND SITE IMPROVEMENTS
a. LESSEE may construct facilities and improvements on the Premises subject to the LESSOR’s prior
written approval of LESSEE’s proposed plans and specifications. All construction shall be performed
in a good and skilled manner with adherence as set forth in this Section, and all applicable federal,
state or local rules, regulations, codes, and Airport Standard Operating Procedures.
b. Additions or alterations must be designed and constructed in a manner that will not weaken or
compromise the structural strength, or reduce the value or functionality of the Premises or existing
improvements thereon. LESSEE shall be responsible to follow the construction requirements as set
forth in this Section.
c. Any approvals issued under this Section shall be deemed approvals of the Wichita Airport Authority,
as LESSOR, in its capacity as the property owner and landlord, but shall not be deemed approvals as
required by the City of Wichita or other local agencies having jurisdictional authority for the
enforcement of local codes. LESSEE shall indemnify and hold the LESSOR harmless for any liability
for regulatory or governmental approvals or the failure to obtain the same. LESSEE shall be
responsible for obtaining all permits and approvals required for the construction, maintenance,
operation and use of all facilities on the Premises. LESSEE shall use reasonable efforts to coordinate
the construction of the improvements with time schedules established by the LESSOR, should other
construction be occurring at the Airport which may be impacted by this project.
d. LESSEE shall administer and observe on-site construction and/or design professionals to ensure
compliance with the approved plans and specifications.
e. Inaccurate or false certifications under this Section shall be a breach of this Agreement which the
Parties agree may only be remedied by specific performance whenever discovered. LESSEE’s
obligation to cure deficiencies in the improvements to the Premises by performance in a good and
skilled manner shall survive this Agreement. 180
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f. Upon completion of the project, LESSEE shall furnish a letter to LESSOR warranting that:
1) The improvements have been completed by a licensed contractor in accordance with the
approved plans and specifications;
2) The improvements have been completed in a good and skilled manner;
3) No liens have been filed, nor is there any basis for the filing of such liens with respect to the
improvements; and
4) All improvements constituting a part of the project are located or installed upon the Premises.
g. LESSEE shall provide LESSOR, within sixty (60) calendar days following occupancy of the facilities,
a complete reproducible set of as-built record drawings, along with a certification of project costs for
all permanent improvements. Post construction or site improvement documentation shall include a
copy of all testing results and corrective actions taken.
h. LESSEE agrees to repair or replace property damaged in the construction of the facilities and
improvements by LESSEE, its contractors, agents or employees.
GUIDELINES FOR EXTERIOR WORK ON ANY NEW CONSTRUCTION, RENOVATIONS
AND SITE IMPROVEMENT:
i. If applicable, LESSEE shall provide a storm water management plan as part of the plan review process.
Storm water management facilities shall be designed and maintained in accordance with guidelines
established by the City of Wichita, the Wichita Airport Authority, and all federal agencies. No
construction, development or subsequent activities shall be allowed on the Premises causing adverse
drainage issues such as erosion, blocking the flow of stormwater flow, or introducing stormwater flow
across the leasehold of other Airport tenants. No stormwater runoff shall be allowed to leave the
Premises except as may be allowed, and in the manner prescribed or approved, in advance by the
LESSOR and subject to the design of a licensed civil engineer.
j. If applicable, LESSOR shall have the option to conduct such construction as needed to insure
compliance with the storm water management plan. In the event of any negative impact due to
LESSEE’s construction, LESSOR shall be entitled to either repair sufficient to remediate the non-
compliance, or complete restoration work at LESSEE’s expense, plus an additional twenty percent
(20%) administrative fee to be paid by LESSEE directly to LESSOR. If LESSEE obtains an extension
from a jurisdictional agency of ninety (90) calendar days or more to remedy the damaging effects of
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stormwater flows, then LESSEE acknowledges and agrees to hold harmless and indemnify LESSOR
from all claims of resulting damage, and for all administrative fines or penalties imposed due to such
delay. Upon LESSOR approval of all plans and specifications and upon approval and issuance of
required building permits by the Metropolitan Area Building and Construction Department, the
LESSEE and LESSEE’s employees, contractors, subcontractors, suppliers, agents, and/or
representatives shall have the right to enter upon the Premises and commence construction.
Stormwater best management practices shall be installed and maintained as required by LESSOR, and
other federal, state, and local agencies having regulatory jurisdictional authority. No subsequent
activities shall be allowed on the Premises causing adverse drainage issues such as erosion, blocking
the flow of stormwater flow, or introducing stormwater flow across the leasehold of other Airport
tenants. No stormwater runoff shall be allowed to leave the Premises except as may be allowed, and
in the manner prescribed or approved, in advance by the LESSOR and subject to the design of a
licensed civil engineer.
k. LESSEE shall:
1) Provide LESSOR with surveyed coordinates and elevations by a licensed and qualified surveyor,
with accuracy tolerances not more than those defined under FAA Order 8260.19H, Appendix C, or
as may be amended for all proposed above-grade structures and improvements on the Premises for
the purpose of the LESSOR’s submittal of Form 7460-1 Notice of Proposed Alteration and
Construction;
2) Only commence vertical construction following formal FAA notification of a “Favorable
Determination of No Hazard,” and with no “Notice of Presumed Hazard (NPH) determinations”;
3) Submit to LESSOR for prior approval all proposed construction modifications, amendments or
changes to the plans and specifications; and
4) Install temporary security and/or construction barricade fence at LESSEE’s expense.
GUIDELINES FOR NEW CONSTRUCTION:
l. LESSEE or designated representatives including the contractor and the consultants shall meet with
LESSOR for a pre-design meeting to discuss the project, applicable criteria and standards, schedule,
utility requirements, etc. LESSEE shall design and construct facilities and improvements on the
Premises subject to the LESSOR’s express approval of LESSEE’s proposed plans and specifications.
Any proposed changes prior to or during construction, shall be submitted to the LESSOR for review
and approval. Such construction shall adhere to the terms of this Agreement and to any additional
design and construction standards, Airport Standard Operating Procedures, and any other applicable
regulations, codes and requirements set out by LESSOR or any governmental agency, or unit. Plans
and specification review submittals shall follow accepted practice for such deliverables, and the
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LESSOR shall provide comments, as applicable, on each submittal. Upon the LESSOR’s reasonable
request, the LESSEE shall provide additional or supplemental submittals, as may be reasonably
required, to fully understand the proposed improvements. LESSOR reserves the right to observe the
work from time to time however this shall not take away from the LESSEE’s responsibilities.
m. LESSEE is responsible to retain the services of a Kansas Professional surveyor to develop a tract map
with legal description and set the lease pins. Such tract map and legal description shall be provided to
LESSOR for review and approval.
20. CONSTRUCTION COSTS
a. LESSEE agrees to pay all costs incurred in connection with construction of any future structures,
facilities, improvements, additions or alterations unless otherwise expressly agreed to in writing by
the LESSEE and LESSOR. LESSEE agrees to make direct payment to all materials, product and
service providers for all such costs as they are incurred. LESSEE shall have no right, authority, or
power to bind LESSOR or any interest of LESSOR in the Premises, for the payment of any claim for
labor or material or for any charge or expense incurred in the erection, construction, operation, or
maintenance of said improvements and Premises.
b. Before beginning any future structures, facilities, improvements, additions or alterations, LESSEE
shall, by agreement with its contractor or otherwise, provide performance, labor and material payment
bonds and statutory bonds with respect to any improvement that exceeds One hundred thousand dollars
($100,000) in cost constructed on the Premises in the full amount for the project contract. The general
contractor shall be the principal on such bonds, the LESSOR shall be the obligee and a surety company
or companies qualified to do business in Kansas shall serve as surety. Such performance, labor and
material payment bonds shall name the Wichita Airport Authority and the City of Wichita, Kansas as
the obligees. The statute of limitations on all such bonds shall be for a minimum of two (2) years from
project completion.
c. For any construction improvement projects that exceeds One Hundred thousand dollars ($100,000)
constructed on the Premises, LESSEE shall purchase and maintain a builder’s risk insurance policy,
or require its prime contractor to carry such policies, in a sum equal to the full project replacement
value as set forth in Section 30, LIABILITY INSURANCE. Builder’s Risk coverages shall be in
effect from the date of the construction notice-to-proceed and continue in force until all financial
interest ceases. The Wichita Airport Authority and the City of Wichita shall be named as additional
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insured on such policies, and all policies shall be written by insurers subject to LESSOR’s reasonable
approval.
d. If at any time during the term of this Agreement, LESSEE desires to have LESSOR provide
construction improvements on LESSEE’s behalf, and LESSOR agrees to provide such improvements,
the following process and procedures shall be followed:
1) LESSEE shall consult with LESSOR, and LESSOR shall then develop and provide to LESSEE a
scope of work and a preliminary cost estimate for the construction improvements. Upon
LESSEE’s written acceptance of the scope of work and preliminary cost estimate, LESSOR shall
proceed with design. At the conclusion of the design phase, an updated cost estimate will be
provided to LESSEE. Upon LESSEE’s written acceptance of the updated cost estimate, LESSOR
shall proceed with bidding the work and, using bid values, provide a final cost estimate to LESSEE.
Upon LESSEE’s written acceptance of the final cost estimate, LESSOR shall invoice LESSEE
and LESSEE will prepay the estimated costs. Should LESSEE not accept any cost estimate, this
process will be terminated and LESSOR shall not proceed with the construction improvements,
and will invoice LESSEE for the costs already incurred, including design and estimating work.
2) If there are change orders required during the course of the construction improvements, LESSOR
shall provide to LESSEE a description of the work along with a cost proposal from the contractor.
Upon LESSEE’s written acceptance of the cost proposal, LESSOR shall invoice LESSEE, and
LESSEE will prepay the costs.
3) Once the construction improvements are complete and final costs are known, LESSOR shall
provide LESSEE a reconciliation of actual costs compared to prepayments made by LESSEE. If
actuals costs exceed the prepayments, LESSEE will pay the difference to LESSOR. If the
prepayments exceed the actual costs, LESSOR will reimburse LESSEE. The required
reconciliation payment from one party to the other will be made within thirty (30) calendar days
from the date of the reconciliation statement.
4) All cost estimates and billing by LESSOR will include a twelve percent (12%) administrative fee.
The fee will be applied to the total cost incurred by LESSOR in providing the construction
improvements. The fee represents the LESSOR’s cost to manage the task including procurement
services, approval processes, management staff time, supervision and overhead. It does not
include a profit component.
5) LESSEE agrees to pay all billings from LESSOR within thirty (30) calendar days of billing.
Failure of LESSEE to reimburse LESSOR for the invoiced amount shall constitute a default of this
Agreement by the terms of Section 34, TERMINATION BY LESSOR.
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21. CONSTRUCTION INSPECTIONS
LESSOR shall have the right at any reasonable time prior to the completion of any construction of facilities
and improvements or future alterations and improvements thereto, to enter upon the Premises for the
purpose of inspecting the construction thereof, to determine whether or not the improvements are being
constructed substantially in accordance with LESSOR approved plans and specifications. If at any time
during the progress of such construction, it is determined that the improvements are not being constructed
substantially in accordance with LESSOR approved plans and specifications, upon receipt of written
notice from LESSOR, LESSEE shall make or cause to be made such reasonable alterations as may be
required to cause the improvements to substantially conform to the plans and specifications. However,
LESSOR has no duty to undertake such inspections, and LESSOR shall not be held to any duty of care
regarding such inspections, if conducted.
22. REMOVAL AND DEMOLITION
LESSEE shall not remove or demolish, in whole or in part, any improvements upon the Premises without
the prior written consent of the LESSOR, which may, at its discretion, condition such consent upon the
obligation of LESSEE replacing the same by a reasonable improvement specified in such consent.
LESSEE shall obtain from LESSOR written consent and conditions before commencing demolition.
Failure to obtain this consent shall entitle the LESSOR to such compensation as is necessary to restore the
affected improvements.
23. TITLE TO FACILITIES, IMPROVEMENTS AND FIXTURES
a. It is understood and agreed by the Parties that title to the Premises and to all existing and future
structures, facilities, improvements, and fixtures shall be, and shall remain, exclusively with
LESSOR, the Wichita Airport Authority.
b. The term "fixtures", whenever used in this Agreement, shall be construed to include all fixed
systems and equipment erected or installed upon the Premises, including but not limited to fencing,
grading and pavement, underground wires, cables, pipes, building mechanical systems, conduits,
drains and drainages, and all other property of every kind and nature which is permanently affixed
to the Premises.
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c. LESSEE may, without cost to LESSOR, furnish and install non-affixed furniture, movable
partitions, decorations, systems, accessories, equipment, and tools necessary to conduct its
business, which shall be defined as and status retained as Personal Property. Title/ownership to
non-affixed, or temporarily affixed, Personal Property shall remain with LESSEE.
d. All above ground storage tanks (AST) and dispensing facilities, equipment and systems, and
auxiliary and ancillary appurtenances thereto shall be considered non-affixed, or temporarily
affixed systems, accessories, equipment and tools, and LESSEE shall retain title/ownership as
Personal Property.
e. All non-affixed furniture, movable partitions, decorations, systems, accessories, equipment, and
tools shall retain their status as the LESSEE’s Personal Property, and shall be removed by
LESSEE upon termination of the Agreement, unless permission to abandon the same is sought
and obtained in writing from LESSOR.
f. All facilities, structures, improvements, alterations, additions, and fixtures permanently affixed to
the Premises, shall remain upon and be surrendered with the Premises as a part thereof, on any
termination or expiration of this Agreement, for any cause, and shall remain the property of the
LESSOR.
24. LIENS
a. LESSEE shall take or cause to be taken all steps that are required or permitted by law in order to
avoid the imposition of any lien upon the Premises or any improvements thereon. Should actions
or inactions of the LESSEE cause any lien to be placed on the Premises or any improvements
thereon, LESSEE shall bond against or discharge the same within thirty (30) calendar days after
actual notice of the same from any source, whether from LESSOR or otherwise, and provide
written proof of discharge or bonding to LESSOR within that time. This obligation includes, but
is not limited to, tax liens, and liens arising out of or because of any financing, construction or
installation performed by or on behalf of LESSEE or any of its contractors or subcontractors upon
LESSEE’S Premises, or due to the performance or lack of performance of any work or labor to it
or them at said Premises, or the furnishing of any materials to it or them for use at said Premises.
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b. LESSEE acknowledges that LESSEE acquires no equity interest in the Premises, notwithstanding
its construction of improvements on the Premises. Although such improvements accrue to the
LESSOR, improvements are for the benefit and enhancement of LESSEE’S use of the Premises.
LESSEE has no agency authority to act on behalf of LESSOR for any such construction. LESSEE
may not mortgage or pledge as collateral its leasehold interest herein without the prior written
consent and conditions of the LESSOR.
c. LESSOR may consent, upon LESSEE’s written request, to an assignment of rents to a
governmentally regulated and insured commercial lender as security for financing of LESSEE’S
activities on the Premises, which assignment is intended to be a present transfer to such lender of
all of LESSEE’S rights to collect and receive rents and charges from approved customers, users,
operators, sublessees and permitees. Lender(s) shall have no rights to assign this Agreement or
sublease the Premises without the prior written consent of the LESSOR as required under Section
28 ASSIGNMENT, and Section 29 SUBLEASING, PERMITTING AND CONTRACTING.
Upon LESSEE’S written consent, LESSOR agrees to give Lender(s) notice of any default or
termination of the Agreement, and allow Lender(s) the same opportunity as the LESSEE under the
Agreement to correct any condition or cure any default. Nothing in this Section is intended to
relieve the LESSEE of its obligations under this Agreement.
25. TAXES, LICENSES AND PERMITS
a. The Parties acknowledge that the facility is not eligible for a sales tax exemption certificate on
materials and furnishings directly through the Wichita Airport Authority. The facility may be
financed with the proceeds of Airport Special Facilities Revenue Bonds to qualify for a sales tax
exemption certificate on materials and furnishings. In the event such bonds are issued, the parties
agree to amend this Agreement as necessary to provide for the issuance and payment of such
bonds.
b. LESSEE agrees to pay all present and future taxes, or in lieu of taxes, special assessments now or
hereafter levied or assessed upon: 1) the Premises and facilities; 2) the property owned or
possessed by LESSEE and situated on the Premises; and 3) LESSEE’s interest in or use of the
Premises. LESSEE shall defend, indemnify and save LESSOR, the Wichita Airport Authority,
and the City of Wichita, Kansas harmless from any claims or liens in connection with such taxes,
obligations in lieu of taxes or assessments.
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c. LESSEE shall promptly pay all taxes, excises, license fees and permit fees of whatever nature
lawfully due and applicable to its operation on the Premises. LESSEE may elect, however, at its
own cost and expense, to contest any such tax, excise, levy, or assessment. LESSEE shall keep
current all Federal, State or local licenses, operating certificates or permits required for the conduct
of its operations. LESSEE represents and warrants to LESSOR that it has obtained all licenses,
franchises, operating certificates, or other agreements or permits necessary to operate LESSEE’S
operation in accordance with the terms of this Agreement, and LESSEE covenants to keep all such
licenses, franchises, permits, operating certificates and other agreements in full force and effect
during the Term of this Agreement.
d. LESSEE shall pay all lawful taxes and assessments which, during the Term hereof, may become
a lien upon or which may be levied by the State, County, City or any other tax levying body, upon
the leased Premises or upon any taxable interest of LESSEE acquired in this Agreement, or any
taxable possessory right which LESSEE may have in or to the leased Premises, including any
improvements or facilities located on the Premises.
e. LESSEE shall pay all lawful taxes and assessments on taxable property, real or personal, owned
by LESSEE in and about said Premises.
f. Nothing in this Section shall prevent LESSEE from contesting the legality, validity or application
of any such tax or assessment to the full extent LESSEE may be lawfully entitled so to do.
26. UTILITIES
a. LESSEE shall pay all costs for utility services (whether for installation, service, administration,
connection, or maintenance thereof) used by LESSEE to and/or upon the Premises with no
responsibility or expense accruing or ascribed to LESSOR, including all permits, licenses or
authorizations necessary in connection therewith. Such payments by LESSEE shall be made
directly to the utility supplier or service provider, except that if such utilities should be supplied
by the LESSOR, then in this event, LESSEE shall pay those costs to LESSOR within thirty (30)
calendar days after receipt of LESSOR’s invoice. LESSOR agrees that any such costs invoiced to
LESSEE will be based on the rates charged to LESSOR by utility supplier, plus reasonable capital
and administrative recovery costs. If LESSEE is allowed by LESSOR to encroach over areas
reserved for installation and operation of utilities, then LESSEE shall bear all responsibility for
restoration of LESSEE’s own property and improvements in case of repairs by the LESSOR or the
utility owner.
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b. If LESSEE requires utilities beyond what is currently available, LESSEE agrees to pay the full
cost and expense associated with the upgrade/extension/installation of all such utilities related to
its use of the Premises, and to comply with all provisions for maintaining such utilities.
c. The LESSOR reserves for itself, and its utility providers, the right to upgrade, extend, install,
maintain and repair all utilities and services on or across the Premises, whether or not such services
or utilities are for the benefit of LESSEE. The LESSOR shall take all reasonable care and diligence
to protect existing improvements and utilities, and shall avoid to the greatest extent possible, any
unreasonable interference or interruption to LESSEE’S operations.
d. LESSEE shall design and install all utilities used by LESSEE subject to the express approval of
the LESSOR prior to installation. All utilities, including but not limited to, electrical, gas, data
and communications utilities installed or caused to be installed shall be underground, and no utility
services or other cables or wires shall be installed on poles or otherwise above ground. Unless
otherwise provided in this Agreement, all conduits or ducts installed shall be considered fixtures
as defined under Section 23 TITLE TO FACILITIES, IMPROVEMENTS AND FIXTURES, and
shall become the owned property of LESSOR. All utility facilities installations shall meet the
requirements of Section 19 NEW FACILITIES CONSTRUCTION, RENOVATIONS AND SITE
IMPROVEMENTS of this Agreement.
e. Wastes not legally permitted and authorized for disposal into the storm and/or sanitary drainage
system shall not be discharged, connected or introduced into storm and/or sanitary drains and the
storm and/or sanitary drainage system. LESSEE shall take all reasonable precautions to prevent
the discharge of material into any drainage system that would create interference with the flow
therein, or that would cause a hazard or unlawful contamination thereto. A copy of LESSEE’S
Stormwater Pollution Prevention Plan and Spill Prevention Control and Countermeasure Plan shall
be submitted to the LESSOR upon the LESSOR’S request.
27. OWNERSHIP
LESSEE shall retain a minimum of fifty one percent (51%) of company ownership interest as they exist
at the time of execution of this Agreement for a minimum of two (2) years after the Agreement
Commencement Date. If such ownership interest changes outside this parameter during this two (2) year
period, the LESSOR shall have the right to void the Agreement and negotiate a new agreement with the
new or modified ownership entity at prevailing market terms for land and facilities.
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28. ASSIGNMENT
a. With the exception of intra-company assignment, delegation, re-organization, or transfer to a parent
“holding” company or subsidiary, LESSEE shall have no right to assign, delegate, or transfer its
tenancy, or any of its rights or duties pursuant to this Agreement without the prior written consent of
LESSOR. Prior to Director’s consideration of any assignment, the Director shall evaluate, consent, or
withhold consent of assignment to any proposed assignee based, in part, on the following: 1)
historically successful operational experience; 2) capability and willingness to satisfy the requirements
of the Minimum Standards for Aeronautical Activities current at the time of assignment; 3) financial
capabilities; and, 4) creditworthiness and credit history of the proposed assignee. Any assignment,
delegation, or transfer so made by LESSEE, and so permitted by LESSOR, shall be subject to all
terms, conditions, and other provisions of this Agreement. Any attempted assignment, delegation, or
transfer in violation of this Section shall be void and have no force or effect whatsoever, and at
LESSOR’S sole discretion, is grounds for TERMINATION BY LESSOR under Section 34
TERMINATION BY LESSOR of this Agreement.
b. Any assignment requests are subject to a processing fee of two-thousand and five hundred dollars
($2,500.00), and shall be paid to the Wichita Airport Authority prior to the LESSOR’s approval.
29. SUBLEASING, PERMITTING AND CONTRACTING
a. LESSEE shall not sublease, rent, or permit any persons, firms or corporations to occupy any part
of the Premises, or to provide any type of commercial or non-commercial operation on the
Premises without the prior written consent of LESSOR, and then consent may be granted by
LESSOR only under the following conditions:
1) All sublease(s) must comply with Section 12 PROHIBITED SERVICES AND USE OF
PREMISES of this Agreement, and shall be reviewed for compliance by LESSOR to that end.
Any arrangement for the subleasing of space must be in conformance with the use of the
Premises outlined in this Agreement, unless expressly approved otherwise in writing by
LESSOR.
2) LESSEE must keep current records on file and available for LESSOR’S inspection that
describes the nature, and documents the legitimacy of the sublessee’s business, including all
current municipal, state, or local licenses or permits required for the conduct of sublessee’s
business.
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3) LESSEE hereby agrees that it shall incorporate language acceptable to LESSOR into all of its
sublease agreements, placing on any sublessee and that sublessee’s affiliated entities,
customers, employees, invitees, contractors, and subcontractors similar restrictions, as may
be appropriate to its approved uses as those which bind LESSEE and its use of the facility
through this Agreement. LESSEE shall also incorporate and make reference to this
Agreement, as may be amended from time to time, to ensure sublessee’s operations and
conduct are subject to and are in compliance with the terms and conditions of this Agreement,
as may be amended from time to time. Any sublease agreement shall explicitly state that it is
subordinate to this Agreement, and that the sublessee shall never obtain rights in the Premises
greater than those held by LESSEE under this Agreement, or as may be amended. Any
sublessee shall be specifically subject to eviction from the Premises as a result of termination,
cancellation, or expiration of this Agreement, irrespective of sublessee’s state of compliance
with the terms of its sublease.
4) LESSEE shall at all times during the term(s) of approved sublease(s), remain responsible to
LESSOR for the compliance of its sublessees with the terms and conditions of any approved
sublease and with this Agreement. LESSOR shall look to LESSEE directly to satisfy any
failure of sublessee to comply with these documents.
5) Consent to one sublease permit or subcontract shall not be deemed consent to any subsequent
sublease permit or subcontract. Prior written consent of the LESSOR shall be required for
each sublease permit or subcontract executed by the LESSEE.
6) Any arrangements and terms must be in the form of a written instrument, must be for purposes
and uses of the Premises as authorized under this Agreement, and shall be subject to the
provisions of this Agreement. LESSEE shall submit a copy of such proposed instrument at the
time of requesting consent of LESSOR. LESSEE shall not sublease, rent or permit any
persons, firms or corporations to occupy any part of a leased Premises, or to provide any type
of commercial or non-commercial activity, operation or services, or not specifically allowed
under this Agreement, on the leased Premises without having first presented the LESSOR with
a proposed sublease agreement or operating permit for review, and received the prior written
approval of the LESSOR.
b. This Section shall not have the effect of requiring LESSOR’s approval, nor payment of fees to
LESSOR, of written or verbal arrangements, agreements or contracts for transient or based aircraft
tie-down, ramp parking, hangar space rental, or rental of storage or office space to based tenants
incidental to and as are customary services provided in the aircraft support industry. Furthermore,
written or verbal arrangements, agreements or contracts for products or services not involving the
subleasing of land or facilities shall not require Authority approval.
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30. LIABILITY INSURANCE
a. LESSEE shall procure, maintain and carry, at its sole cost, in accordance with and for the Term of
this Agreement all insurance, as required per the amounts as set forth in this Section. Insurance
shall be furnished by a company meeting the reasonable approval of the LESSOR. Policy
deductible amounts also require reasonable approval of the LESSOR.
b. Insurance certificates shall be issued on a standard ACORD form or such other documentation as
may be acceptable to LESSOR in its discretion and include the NAIC number of the insuring
company. Each insurance company’s rating, as shown in the latest Best’s Key Rating Guide, shall
be no less than A-VII, unless otherwise approved by the LESSOR, or from a Workers’
Compensation pool approved by the State of Kansas. Insurance certificates must be received and
approved by the LESSOR prior to occupancy. LESSOR retains the right to require reasonable
changes in the character, coverages and amounts of coverage commensurate with changes in the
LESSEE’S use of the Premises. All policy deductibles shall be shown on the certificate of
insurance and meet the approval of the LESSOR.
c. If the LESSEE fails to procure or maintain any of the specified coverages during the Lease term,
the LESSOR has the right, but not the obligation, to secure the coverage and charge the cost to the
LESSEE along with a 20% administrative fee.
d. The LESSEE shall be responsible for determining the types and limits of insurance coverage
required by any approved SUBLESSEE, permittee or contractor of the LESSEE commensurate
with the type of activity and associated risk levels. At a minimum, any SUBLESSEE shall carry
Workers’ Compensation, general liability (minimum of $1,000,000 per occurrence) and
automobile liability (minimum of $500,000 combined single limit). LESSEE shall require in any
approved sublease that the Wichita Airport Authority and the City of Wichita shall be added as
primary and non-contributory additional insureds on the SUBLESSEE’S general liability policy.
e. The requirements, procurement and carrying of the required insurance shall not limit any of the
LESSEE’s obligations or liability under this Agreement or as a matter of law.
f. No self-insurance policies will be accepted for any of the required coverages.
g. Where “minimum limits” of insurance are specified in this Section, such minimum insurance limits
are required and considered by LESSOR to be the lowest insured amounts acceptable under this
Agreement. The LESSEE is not limited or restricted whatsoever in securing additional insurance
coverage and higher insured limits than those specified herein if, at the LESSEE’s determination
and discretion and commensurate with the type of activity and associated business and operational
risk, additional coverage and higher limits are necessary and appropriate.
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h. Insurance shall include the following terms, conditions and minimum limits:
1) WORKERS’ COMPENSATION
LESSEE shall maintain Workers’ Compensation insurance to cover the statutory requirements
of the Workers’ Compensation laws of the State of Kansas for its operations on the Premises,
and when applicable, to Federal Laws and Voluntary Compensation and Employer’s Liability
(including occupational disease) coverage.
2) AUTOMOBILE LIABILITY
LESSEE shall maintain automobile insurance, which shall include all owned, non-owned and
hired automobiles used on the Premises, and shall have minimum bodily injury and property
damage limits as outlined herein.
Combined Single Limit $1,000,000 Each Accident
3) AVIATION COMMERCIAL GENERAL LIABILITY
LESSEE shall maintain commercial general liability insurance on an occurrence form which
shall include on-going operations, product/completed operations (minimum of two years
following the project completion) and personal and advertising injury, and liability assumed
under contract. Minimum limits, as outlined herein, shall be:
General Annual Aggregate $10,000,000
Each Occurrence $5,000,000
Products/Completed Operations Aggregate $5,000,000
Personal & Advertising Injury Aggregate $5,000,000
The Wichita Airport Authority and the City of Wichita shall be added as primary and non-
contributory additional insureds.
4) HANGARKEEPERS AND PREMISES LIABILITY COVERAGE
LESSEE shall maintain Hangarkeepers and Premises Liability Insurance.
Minimum limits, as outlined herein, shall be:
Each Occurrence Limit $5,000,000
Each Loss Limit $15,000,000
The Wichita Airport Authority and the City of Wichita shall be added as additional insureds for the
Premises Liability only.
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i. LESSEE agrees that in the event of future changes in the law or upon notice by the LESSOR, the
minimum levels of insurance required by this Section may be increased within the bounds of
commercial reasonableness.
j. LESSEE agrees, prior to the commencement of the Agreement, to provide LESSOR with copies
of certificates, evidencing that such insurance is in full force and effect, and stating the terms
thereof. This Agreement shall not commence until certificates of insurance satisfactory to
LESSOR are supplied by LESSEE. LESSEE shall provide LESSOR updated certificates of
insurance the earlier of annually, or upon renewal, which certificate shall demonstrate the coverage
required in this Section for the ensuing twelve month period. Failure to maintain satisfactory
insurance policies in force shall constitute grounds for termination of this Agreement as set forth
in Section 34 TERMINATION BY LESSOR.
k. LESSEE shall be solely responsible, and at its sole discretion, for obtaining insurance policies that
provide coverage for losses of LESSEE-owned personal property. LESSOR shall not provide such
insurance coverage for LESSEE-owned personal property, or be responsible for payment of
LESSEE’s cost for such insurance.
31. ALL RISK PROPERTY INSURANCE
a. LESSEE, at its expense, throughout the Term of this Agreement, shall cause any facilities,
structures, fixtures and improvements on the Premises to be insured against loss or damage by fire
or other casualty equal to the full replacement value thereof and by a fire and extended risks
coverage Property policy furnished by a company licensed to do business in Kansas. Such policy
shall not exclude, or in the alternative, shall carry full coverage endorsements for damage from
tornado, hail, and sewer backup, and shall furnish LESSOR a certificate evidencing such
insurance. The first dollar proceeds of any payments made under such insurance policy or policies
shall be used to replace, restore, rehabilitate or reconstruct the insured facilities, subject to the
provisions governing damage or destruction found in Section 51 DAMAGE OR DESTRUCTION.
LESSEE agrees, prior to the commencement of the Agreement, to provide LESSOR with copies
of all policies or certificates evidencing that such insurance is in full force and effect, and stating
the terms thereof. This Agreement shall not commence until policies of insurance satisfactory to
LESSOR are supplied by LESSEE.
b. No self-insurance policies will be accepted for any of the required coverages.
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c. LESSEE shall provide LESSOR updated certificates of insurance the earlier of annually, or upon
renewal, which certificate shall demonstrate the coverage required in this Section for the ensuing
twelve (12) month period. Failure to continuously maintain satisfactory insurance policies in force
shall constitute grounds for termination of this Agreement.
d. In lieu of LESSEE insuring the Premises against loss or damage by Property coverage, LESSEE
shall have the option to request that the facilities and improvements on the Premises be insured
under the LESSOR’s blanket policy. Upon such request the LESSEE agrees to pay the premiums
for the cost of the insurance, plus any deductible required to be paid by LESSOR under its blanket
policy for any claim attributable to losses of the Premises. The value of the facilities and
improvements shall be reasonably determined by LESSOR.
e. LESSEE shall be solely responsible for obtaining insurance policies that provide coverage for
losses or damage of LESSEE-owned (personal) property. LESSOR shall not provide such
insurance coverage for LESSEE-owned (personal) property, or be responsible for payment of
LESSEE’s cost for such insurance.
32. SUBROGATION OF INSURANCE
a. LESSOR hereby waives any and all rights of recovery against LESSEE for or arising out of
damage or destruction of the building, or the demised Premises, or any other property of LESSOR,
from causes then included under any of LESSOR’s property insurance policies, to the extent such
damage or destruction is covered by the proceeds of such policies, whether or not such damage or
destruction shall have been caused by the negligence of LESSEE, its agents, servants or employees
or otherwise, but only to the extent that its insurance policies then in force permit such waiver
without diminution of LESSOR coverage.
b. LESSEE hereby waives any and all rights of recovery against LESSOR for or arising out of
damage to or destruction of any property of LESSEE from causes then included under any of
LESSEE’s property insurance policies, to the extent such damage or destruction is covered by the
proceeds of said policies, whether or not such damage or destruction shall have been caused by
the negligence of LESSOR, its agents, servants or employees or otherwise, but only to the extent
that its insurance policies then in force permit such waiver.
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33. LOSS OF PERSONAL PROPERTY
Any Personal Property of LESSEE or others placed in or upon the Premises shall be at the sole risk of the
LESSEE, and LESSOR shall not be responsible or liable for any loss, damage or replacement thereto,
regardless of the cause of such loss or damage, and the LESSEE waives all rights of subrogation against
recovery from the LESSOR for such loss or damage unless such loss or damage is the result of the
LESSOR’s negligence.
34. TERMINATION BY LESSOR
a. The LESSOR, in addition to any other rights to which it may be entitled by law or otherwise, may
terminate this Agreement by giving LESSEE written notice in the event of default by LESSEE
under this Agreement failing to be resolved in less than sixty (60) calendar days after the
LESSEE’s receipt of written notice of such event of default and opportunity to cure from the
LESSOR, upon or after the happening of any one of the following events:
1) LESSEE shall file a voluntary petition in bankruptcy or that proceedings in bankruptcy shall be
instituted against it and LESSEE is thereafter adjudicated bankrupt pursuant to such proceedings;
2) A court shall take jurisdiction of LESSEE and its assets pursuant to proceedings brought under
the provisions of any Federal reorganization act;
3) Receiver of LESSEE’s assets shall be appointed;
4) LESSEE shall be divested of its estate herein by other operation of law;
5) LESSEE shall fail to perform, keep and observe any of the obligations, terms, warranties or
conditions contained in this Agreement that on the part of LESSEE are to be performed, kept or
observed.
b. If any such condition or default cannot reasonably be corrected within the sixty (60) day period,
and LESSEE has demonstrated due diligence with respect to curing said default, then such cure
period may be extended for consecutive periods of thirty (30) calendar days, as long as diligent
progress is made toward cure, with a reasonably foreseeable resolution date. Under such
circumstances, default may be treated as cured until cured. Should diligent progress cease, or the
reason for default become apparent as insoluble, then the Term shall cease and expire at the end
of the thirty (30) day extension then in effect.
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c. Acceptance of rental by LESSOR for any period or periods after a notice of default is issued by
LESSOR of any of the obligations, terms, warranties and conditions herein contained to be
performed, kept and observed by LESSEE shall not be deemed a waiver of any other right on the
part of LESSOR to terminate this Agreement for failure by LESSEE so to perform, keep and
observe any of the obligations, terms, warranties, or conditions hereof to be performed, kept and
observed. No waiver of default by LESSOR of any of the obligations, terms, warranties or
conditions hereof to be performed, kept and observed by LESSEE, shall be construed to be or act
as a waiver of any subsequent default of any of the obligations, terms, warranties or conditions
herein contained to be performed, kept and observed by LESSEE.
35. TERMINATION BY LESSEE
a. The LESSEE, in addition to any other rights to which it may be entitled by law or otherwise, may
terminate this Agreement by giving LESSOR written notice in the event of default by LESSOR
under this Agreement continuing for more than sixty (60) calendar days after the LESSOR’s
receipt of written notice of such event of default and opportunity to cure from the LESSEE, upon
or after the happening of any one of the following events:
1) Issuance by any court of competent jurisdiction of a permanent injunction in any way preventing
or restraining the use of the Airport or any major part thereof for aeronautical purposes and the
remaining in full force of such permanent injunction for a period of at least sixty (60) calendar
days.
2) Inability of the LESSEE to use, for a period in excess of one hundred and eighty (180) calendar
days, the Airport or any part of the facility because of any law, order, rule, regulation or other
action or non-action of the Federal Aviation Administration or any other governmental authority,
or because of fire, earthquake, other casualties or acts of God or the public enemy.
3) LESSOR shall fail to perform, keep and observe any of the obligations, terms, warranties or
conditions contained in this Agreement that on the part of LESSOR are to be performed, kept or
observed, then:
i. LESSEE may give LESSOR written notice to correct such condition or cure such
default, and if any such condition or default shall continue for sixty (60) calendar
days after receipt of such notice by LESSOR, LESSEE may terminate this
Agreement and the Term hereof shall cease and expire at the end of such sixty
calendar (60) days in the same manner and to the same effect as if it were the
expiration of the Term, unless such condition or default cannot reasonably be
corrected within the sixty (60) calendar day period and LESSOR has demonstrated
due diligence with respect to curing said default, then such cure period may be
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progress is made toward cure, with a reasonably foreseeable resolution date. Under
such circumstances, default may be treated as cured until cured. Should diligent
progress cease, or the reason for default become apparent as insoluble, then the
Term shall cease and expire at the end of the thirty (30) calendar day extension
then in effect;
4) Assumption by the United States Government or any other authorized agency thereof of the
operation, control or use of the Airport and the facility herein described, or of any substantial
part or parts thereof in such a manner as to substantially restrict the LESSEE for a period of one
hundred and eighty (180) calendar days from operating on and within the facility.
5) In the event of destruction of the facilities, improvements, or the demised Premises as more fully
described in Section 51 DAMAGE OR DESTRUCTION.
36. MAINTENANCE AND REPAIR BY LESSOR
a. LESSOR shall be responsible for maintenance, repair and replacement of public access and
common-use paved surfaces and subgrades, street lighting, airfield lighting system, taxiway
connectors, and storm drainage systems on the Airport not within or upon the Premises.
b. LESSOR assumes responsibility for major replacement of the paved aircraft parking ramp surfaces
within the Preferential Use areas of the leased Premises only if or at such time as federal grants-
in-aid funding may be received, and the governing board of the Wichita Airport Authority
approves and authorizes expenditure of funds for such purposes, and improvements are installed
to final completion in accordance with all federal and local specifications and standards. The
Parties mutually acknowledge and agree that the LESSOR has no control, jurisdiction, authority,
or rights to determine when, if any, federal grants-in-aid funding may be received. Such control
and jurisdiction rests solely and exclusively with the federal government.
c. The LESSOR has no duty or obligation under this Agreement to undertake and perform
maintenance within the Preferential Use areas of the leased Premises except under the conditions
herein identified. Notwithstanding the foregoing, LESSOR shall be responsible for any
maintenance or repair arising from any defect in the performance of the development,
improvement, or maintenance pursued by LESSOR, including any defect arising from the major
replacement of the paved aircraft parking ramp as set forth in Subsection b of this Section 36. The
LESSOR has no other duty or obligation under this Agreement to undertake and perform pavement
or pavement subgrade repairs within the Preferential Use areas of the leased Premises considered
to be of a maintenance, preventive maintenance, or preservation nature.
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37. MAINTENANCE AND REPAIR BY LESSEE
a. LESSEE shall maintain, repair, and keep at its sole cost and expense, the interior and exterior of
Premises and improvements, including all structures, pavements, landscaping, fixtures and
appurtenances thereto in good condition, subject to reasonable wear and tear, and keep the Premises
free of trash, debris and obstructions. LESSEE, at its sole cost and expense, shall maintain and keep
in good repair the entirety of the leased Premises and all improvements placed thereon.
b. Should LESSEE not meet the established maintenance and repair obligations for all improvements,
LESSOR may, but is not required to, accomplish the needed repairs by Airport staff or a contract with
a third party, with such repairs being made at LESSEE’s expense. A twelve percent (12%)
administrative fee shall be charged on any task that is performed by the LESSOR or its agent on behalf
of LESSEE upon thirty (30) calendar days prior written notice of its intent to do so. The fee shall be
applied to the total cost incurred by the LESSOR in performing the task. The fee represents the
LESSOR’s cost to manage the task including procurement services, approval processes, management
staff time, supervision and overhead. In case of emergency action taken in order to protect against
personal injury or property damage but not limited to, for which no notice is necessary, LESSOR shall
charge the same cost to the expense of LESSEE and a twenty percent (20%) administrative fee.
c. Commencing on the first anniversary of the Agreement Commencement Date, and by no later than the
anniversary date of each year thereafter during the Term of this Agreement, the LESSEE shall provide
the LESSOR with a “Prior Year’s Maintenance Report” detailing maintenance and repairs performed
by LESSEE, or LESSEE’S contractor(s), to and upon the Premises. The Prior Year’s Maintenance
Report shall primarily focus on major structural systems and components, including but not limited
to: pavements, utilities, building structures, roofs, and heating/ventilation/air conditioning (HVAC),
plumbing, and electrical systems. The Maintenance Report shall list and identify, by line-item, all
maintenance and repairs, date maintenance or repairs were performed, and the actual cost of
maintenance or repairs. At LESSEE’S discretion, individual maintenance or repair items valued at
less than $1,000, or minor maintenance or repairs performed by the LESSEE’S own employee’s need
not be included in the Maintenance Report.
38. FACILITY CONDITION ASSESSMENT
On the fifth anniversary of the Agreement Commencement Date, and by no later than the anniversary date
of each fifth year thereafter during the Term of this Agreement, the LESSEE shall provide, upon the
LESSOR’s request, a “Condition Assessment Report” of the leased Premises and site improvements
thereon, prepared by either a licensed contractor, engineer or architect (“A/E”), and licensed to do business
in the State of Kansas. This Condition Assessment Report shall address the current condition, the
contractor’s or A/E’s professional opinion of the useful life remaining of the structures and systems, and
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the contractor’s or A/E’s professional opinion of repairs, replacements, or refurbishments recommended
to maintain the operationally useful state and condition of the Premises. When appropriate and relevant,
the Condition Assessment Reports shall reference and incorporate Prior Year’s Maintenance Reports as
defined and described in Section 37 MAINTENANCE AND REPAIR BY LESSEE. Condition
Assessment Reports shall primarily focus on major structural systems and components, including but not
limited to: pavements, utilities, building structures, roofs, and heating/ventilation/air conditioning
(HVAC), plumbing, and electrical systems. Upon such request by the LESSOR of a Condition
Assessment Report, the LESSOR and LESSEE agree to pay equal one-half (1/2) shares for the Report.
39. SNOW AND ICE CONTROL
a. LESSEE shall be responsible for all snow and ice removal on the Premises. Aircraft parking ramps
and the Air Operations Area (AOA) within the Premises shall be maintained to a winter surface
condition safe for aircraft operations, and safe for customers and employees moving and working
on the ramp. At no time shall LESSEE engage in snow and ice removal beyond the Premises
without the prior approval of the LESSOR.
b. Snow piles, windrows or other accumulations of snow shall not:
1) Be closer than twenty five feet from any security fence;
2) Block any access gates or controls;
3) Block or impede any taxiway or taxi lane;
4) Impose an obstruction within the object free area of any taxiway or taxi lane;
5) Block or impede the performance of any navigational aid;
6) Infringe upon, block or interrupt the business of other airport tenant leaseholds.
c. Snow piles and accumulations requiring removal may be stored on approved paved or non-paved
areas as authorized in advance by LESSOR.
d. Only Federal Aviation Administration (FAA) approved dry and liquid chemicals may be used for
de-icing or snow removal on aircraft operating surfaces, as set forth in Advisory Circular
150/5200-30, current edition, or as may be amended, Airport Winter Operations and Safety, Sub-
sections 4-6 Approved Chemicals, current edition, or as may be amended.
e. The use of snow and ice removal contractors may be authorized subject to prior written approval
by LESSOR, and subject to acceptable completion of contractor employee training, and other
reasonable safety requirements and standards that LESSOR may impose, including but not limited
to compliance with Airport Rules and Regulations, and Standard Operating Procedures. All such
snow and ice removal contractors shall maintain a general liability insurance policy of not less
than $1,000,000 limit, naming LESSEE, LESSOR and the City of Wichita as additional insureds. 200
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f. LESSOR shall be responsible for snow and ice removal on paved surfaces of the Airport not within
the Premises.
40. EXTERIOR SIGNS AND ADVERTISING
a. LESSEE agrees that no exterior signs or advertising material shall be erected on the Premises, on
any improvement or facility on the Premises, or upon any utility or utility corridor unless the
proposed location, design and layout of such signs and advertising material, together with the
materials and method of construction of such signs and advertising material, shall have been
approved in advance in writing by LESSOR, which approval shall not be unreasonably withheld
or unduly delayed.
b. LESSEE shall not erect, install, operate, nor cause or permit to be erected, installed, or operated
upon any non-leased Premises of the Airport property, any signs, banners, or other similar
devices for its own business, or the business of others. This provision shall not have the effect of
limiting or restricting LESSEE’s right to enter into an agreement with LESSOR’S authorized and
permitted marketing, advertising or signage agency for the display of informational, marketing or
advertising media at approved designated locations on Airport property.
c. LESSEE shall have no right to erect or install, or cause or consent to be erected or installed any
commercial outdoor advertising by an outdoor commercial advertising agency.
41. PORTABLE STORAGE CONTAINERS/STRUCTURES
a. Unless specifically approved in writing, and under conditions specified by LESSOR, LESSEE
shall not place or allow to be placed upon Premises, any type of portable storage container, trailer,
unit, box, or barrel which is used to store merchandise and/or equipment and supplies outside of
an enclosed permanent building or structure. Unless specifically approved, and under conditions
specified by LESSOR, LESSEE shall not place or allow to be placed upon Premises, any type of
portable or temporary structure, trailer, mobile home, modular structure or device.
b. LESSOR will not unreasonably withhold approval of such container(s) and structure(s) if such is
of a temporary nature for the purpose of supporting construction, alteration or improvement
activity, or other approved project.
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42. GRANTING OF EASEMENTS
LESSEE shall not grant easements, licenses and other rights or privileges in the nature of easements with
respect to any land on the Airport, or release existing easements, licenses, right-of-ways and other rights
or privileges; and, LESSEE agrees, to the extent that it may legally do so, that it will execute and deliver
any instrument necessary or appropriate to release any such easement, license, right-of-way or other right
or privilege or any such agreement or other arrangement, upon receipt by LESSEE of: a copy of the
instrument of grant or release or of the agreement or other arrangement; and, a written application signed
by the LESSOR requesting execution and delivery of such instrument, provided that, such grant or release
is not detrimental to the proper conduct of the business of LESSEE, and such grant or release will not
impair the effective use or interfere with the efficient and economical operation of the facilities. LESSEE
shall not request any payment or other consideration for such execution, the same being amply supported
by the promises exchanged in this Agreement. Any payments or other consideration received by LESSOR
for any such grant or with respect to or under any such agreement or other arrangement shall be and remain
the property of LESSOR. The obligations of this Section shall survive termination of this Agreement.
43. RULES AND REGULATIONS
a. LESSEE, its agents and employees, shall be subject to any and all applicable rules, regulations,
Airport Standard Operating Procedures, orders and restrictions which are now in force or which
may hereafter be adopted by the Wichita Airport Authority or the City of Wichita, Kansas, in
respect to the operation of the Airport; and shall also be subject to any and all applicable laws,
statutes, rules, regulations or orders of any governmental authority, federal or state, lawfully
exercising authority over the Airport or LESSEE’s operations conducted hereunder.
b. LESSOR shall not be liable to LESSEE for any diminution or deprivation of its rights hereunder
on account of the exercise of any such authority as in this Section provided, nor shall LESSEE be
entitled to terminate this Agreement nor be entitled to seek any damages from LESSOR by reason
thereof unless exercise of such authority shall so interfere with LESSEE’s exercise of the rights
hereunder as to constitute a termination of this Agreement by operation of law in accordance with
the laws of the State of Kansas, or as set out in Section 35 TERMINATION BY LESSEE.
44. AIRPORT SECURITY PROGRAM COMPLIANCE
a. LESSEE must obtain Airport Security Identification and Access Media (I.D. Media) for its employees,
subcontractors, suppliers, agents, and representatives requiring access to the sterile areas, secured Air
Operations Areas (AOA), Security Identification Display Area, or other secured areas as may be
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identified in the Airport Security Program, and pay any related costs associated with this privileges as
set forth under this Section. With respect to the issuance, maintenance, and administration of I.D.
Media, the LESSEE shall pay or cause to be paid to the LESSOR all charges as may be established
from time to time by the LESSOR. Such costs may include, but are not limited to: (i) the initial
issuance of I.D. Media; (ii) the replacement of lost or stolen I.D. Media; (iii) administrative costs with
respect to those I.D. Media not returned to the LESSOR.
b. Said I.D. Media shall be valid as set forth under the Airport Security Program, and must be returned
to the Airport Police & Fire Division, at 2193 Air Cargo Road within twenty-four (24) hours after
expiration, suspension, and/or termination of this Agreement. Said I.D. Media shall be valid for no
longer than the period of this Agreement. The LESSEE shall be responsible for requesting the issuance
of I.D. Media to employees or other authorized representatives of the LESSEE who require access to
secured areas on the Airport due to operational need and necessity. In addition, LESSEE shall be
responsible for the immediate reporting of all lost or stolen I.D. Media and the immediate return of
the I.D. Media of LESSEE’s personnel transferred from the Airport, or separated from the employ of
LESSEE.
c. LESSEE warrants that it shall at all times maintain the integrity of the Airport Security Program and
comply with all applicable regulations of the Transportation Security Administration (TSA), 49 CFR
Parts 1500, 1544, 1546, 1548, and 1550 as amended or promulgated, and that it will always maintain
the security of the Airport, Premises, and/or any AOA access for which LESSEE is responsible. The
LESSOR shall have the right to require the LESSEE to conduct background investigations, and to
furnish certain data on such employees or other persons before the issuance of I.D. Media, which data
may include the fingerprinting of any and all of its employees, subcontractors, suppliers, agents, and/or
representatives. LESSEE also hereby agrees that it shall be responsible for any and all of the actions
on the Premises of its employees, subcontractors, suppliers, agents, customers, invitees, and/or
representatives and shall provide any and all necessary escorts, as outlined in the Airport Security
Program. LESSEE hereby agrees that it shall immediately implement any and all security changes
that are directed either directly or indirectly by the TSA, or LESSOR. LESSEE further agrees to
correct any security deficiency or other deficiency as may be determined as such by the LESSOR or
the TSA, or any other federal or state agency with jurisdiction. In the event LESSEE fails to remedy
any such deficiency, the LESSOR may do so at the sole cost and expense of LESSEE. The LESSOR
reserves the right to take whatever action is necessary to correct and remedy any security deficiency
or other deficiency. When the LESSOR takes actions to remedy deficiencies of any kind, it shall be
done in a reasonable and cost-conscious manner.
d. Should LESSEE, its employees, subcontractors, suppliers, agents, customers, invitees, and/or
representatives cause any security violations, and should LESSOR be cited for a civil fine or penalty
for such security violation, LESSEE agrees to reimburse LESSOR for any monetary civil fine or
penalty which may be imposed on LESSOR. However, nothing herein shall prevent the LESSEE from
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be lawfully entitled, nor require LESSOR to pursue such a contest on LESSEE’S behalf. LESSEE, its
employees, subcontractors, suppliers, agents, customers, invitees, and/or representatives may have
I.D. Media/access privileges immediately suspended and/or revoked by LESSOR for failure to adhere
to the Airport Security Program, or for failure to return all I.D. Media within the time-frames specified
herein.
e. The LESSEE agrees that information concerning the location, type, nature, capabilities, application
and use of the LESSOR’s security system is considered Sensitive Security Information (SSI) as
defined by TSR 1520, and shall restrict the distribution, disclosure and availability of SSI only to
persons with an operational need and necessity to know. All requests for SSI by persons not directly
employed by the LESSEE, and deemed to have an operational need and necessity to know shall be
referred to LESSOR for consideration and determination of whether such information is legal and
appropriate for dissemination.
f. Before the LESSEE shall permit any employee, subcontractor, supplier, agents, customer, invitee,
and/or representative to operate a motor vehicle of any kind or type on the AOA of Dwight D.
Eisenhower National Airport (unless such employee is escorted by a LESSOR-approved escort), the
LESSEE shall ensure that all such vehicle operators have completed required AOA access and driver
training, possess a current, valid, and appropriate Kansas driver’s license, appropriate Airport issued
I.D. Media, and a Vehicle Ramp Permit. LESSEE company vehicles prominently displaying a
permanent company name and/or logo on vehicles and equipment are excluded from the requirement
of displaying a Vehicle Ramp Permit.
g. The LESSEE agrees that its vehicles, cargo, goods, and other personal property are subject to being
inspected and searched when entering, exiting and while on the AOA.
h. The LESSEE agrees that it shall be responsible for the installation, operation, maintenance, and
monitoring of all vehicle and/or pedestrian access gates and doors and security access controls on the
Premises with access from non-secured areas to the secured AOA. All such access gates and controls
require the prior written approval of the LESSOR and shall be in compliance at all times with the
Airport Security Program.
45. MINIMUM STANDARDS FOR AERONAUTICAL ACTIVITIES
LESSEE acknowledges and agrees that it shall meet or exceed the requirements of the Minimum Standards
for Aeronautical Activities and Services for Wichita Dwight D. Eisenhower National Airport, effective
June 8, 2010, and revised December 2017. LESSOR may, with due notice, revise, amend, or update the
Minimum Standards for Aeronautical Activities and Services, and the LESSEE agrees to observe and
comply with the same. However, any updated, revised or amended minimum standards which may be
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developed and promulgated during the Term of this Agreement, shall not have the effect of imposing upon
LESSEE the requirements of additional facilities, services or standards beyond those set forth after the
Commencement Date of this Agreement.
46. ENCROACHERS, TRESPASSERS AND OTHER THIRD PARTY HAZARDS
LESSEE shall lawfully remove, or cause to be removed by LESSOR or other official law enforcement
agency, all encroachers, trespassers and other third parties violating laws of the federal, state or local
government, or who are not on the Premises for legitimate purposes.
47. FIRE EQUIPMENT AND SYSTEMS
a. LESSEE shall furnish and maintain at its sole expense on the Premises, fully and continuously
operational heat and/or smoke detection devices, fire suppression systems, and portable fire
extinguishing equipment as may be required by City and State codes and insurance underwriters.
b. LESSEE shall immediately notify the LESSOR if any heat and/or smoke detection devices, or fire
suppression systems are out of operation for more than twenty-four (24) hours.
c. LESSEE shall maintain the sole duty and obligation to insure that all heat and/or smoke detection
and fire suppression systems are inspected, maintained, and functional in accordance with local
and state fire codes.
48. ENVIRONMENTAL ASSESSMENT
a. LESSEE shall have a “Phase-II” environmental site assessment conducted by an environmental
consultant, at LESSEE's expense, within ninety (90) calendar days prior to the cancellation or
termination of this Agreement.
b. A copy of these reports shall be promptly provided to the LESSOR and LESSEE. If any contamination
of the property has occurred through LESSEE’s fault or negligence, or the fault or negligence of a
LESSEE supplier, agent or contractor, LESSEE shall be required to re-establish the Premises to the
pre-Agreement threshold or baseline levels, in a timely manner and acceptable to LESSOR.
c. Nothing in this Section shall be construed to hold LESSEE liable in any way for any environmental
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impact or release of Hazardous Substances affecting the Premises that occurs by reason of the
migration, release, discharge or flow from other verifiable and documented off-site contamination
sources that are not attributable to the LESSEE’s activity on the Premises. The burden of proof shall
rest exclusively with the LESSEE to demonstrate that any such environmental impacts affecting the
Premises are not attributable to the LESSEE’s activity on the Premises.
49. ENVIRONMENTAL COVENANTS
a. The LESSEE hereby covenants that it shall not cause or permit any Hazardous Substances to be
placed, held, located, or disposed of, on, under or at the Premises and storage tank or within the
vicinity, shown on the attached Exhibit A, other than in the ordinary course of business and in
compliance with all applicable laws.
b. The term “Hazardous Substance” as used in this Agreement shall mean any toxic or hazardous
substance, material or waste or any pollutant or contaminant or infectious or radioactive material,
including but not limited to those substances, materials or wastes regulated now or in the future
under any of the statutes or regulations listed below and any and all of those substances included
within the definitions of “hazardous substances”, “hazardous materials”, “hazardous waste”,
“hazardous chemical substance or mixture”, “imminently hazardous chemical substance or
mixture”, “toxic substances”, “hazardous air pollutant”, “toxic pollutant” or “solid waste” in the
statues or regulations listed below. Hazardous Substances shall also mean any and all other similar
terms defined in other federal state and local laws, statutes, regulations, orders or rules and
materials and wastes which are, or in the future become, regulated under applicable local, state or
federal law for the protection of health or the environment or which are classified as hazardous or
toxic substances, materials or waste, pollutants or contaminants, as defined, listed or regulated by
any federal, state or local law, regulation or order or by common law decision, including, without
limitation, (i) trichloroethylene, tetrachloroethylene, perchloroethylene and other chlorinated
solvents, (ii) any petroleum products or fractions thereof, (iii) asbestos, (iv) polychlorinated
biphenyls, (v) flammable explosives, (vi) urea formaldehyde, and (vii) radioactive materials and
waste.
c. In addition, a Hazardous Substance shall include: a “Hazardous Substance”, “Hazardous
Material”, “Hazardous Waste”, or “Toxic Substance” under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, 42 U.S.C. §§ 9601, et seq., the Hazardous
Materials Transportation Act, 49 U.S.C. §§ 1801, et seq., or the Resource Conservation and
Recovery Act, 42 U.S.C. §§ 6901, et seq.
d. In furtherance and not in limitation of any indemnity elsewhere provided in this Agreement to the
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of Wichita from and against any and all losses, liabilities, including strict liability, damages,
injuries, expenses, including reasonable attorneys’ fees, costs of any settlement or judgment and
claims of any and every kind whatsoever paid, incurred or suffered by, or asserted against, the
LESSOR or the City of Wichita by any person or entity for or arising out of the presence on or
under, or the escape, seepage, leakage, spillage, discharge, emission, discharging or release from
the Premises during the Term of this Lease Agreement of any Substance (hazardous or otherwise)
regulated by any applicable statute, law, ordinance, code, rule, regulation, order or decree
regulating, relating to or imposing liability, including strict liability, or standards of conduct
concerning, any Hazardous Substance (including, without limitation, any losses, liabilities,
reasonable attorneys’ fees, costs of any settlement or judgment or claims asserted or arising under
the Comprehensive Environmental Response, Compensation and Liability Act, any federal, state
or local so-called “Superfund” or “Super lien” laws), if such presence, escape, seepage, leakage,
spillage, discharge, emission was caused by the LESSEE, or persons within the control of the
LESSEE, its officers, employees, agents, contractors, invitees and/or licensees, or if such
Substance (hazardous or otherwise) was owned by, or located on the Premises by, the LESSEE
(without regard to the actual cause of any escape, seepage, leakage, spillage, discharge, emission
or release).
e. If, during the Term of this Agreement, the LESSEE receives any notice of:
1) the happening of any event involving the use (other than in the ordinary course of business
and in compliance with all applicable laws), spill, release, leak, seepage, discharge or cleanup
of any Substance (hazardous or otherwise) on the Premises or in connection with the
LESSEE’s operations thereon; or
2) any complaint, order, citation or notice with regard to air emissions, water discharges, or any
other environmental, health, or safety matter affecting the LESSEE from any persons or
entity (including, without limitation, the United States Environmental Protection Agency
(the “EPA”) or the Kansas Department of Health and Environment (“KDHE”)), the LESSEE
shall immediately notify the LESSOR in writing of said notice.
f. The LESSOR shall have the right, but not the obligation, and without limitation of the LESSOR’s
other rights under this Agreement, to enter the Premises or to take such other actions as deemed
necessary or advisable to inspect, clean up, remove, resolve or minimize the impact of, or to
otherwise deal with, any Substance (hazardous or otherwise) or environmental complaint
following receipt of any notice from any person, including, without limitation, the EPA or KDHE,
asserting the existence of any Substance (hazardous or otherwise) or an environmental complaint
pertaining to the Premises or any part thereof which, if true, could result in an order, suit or other
action against the LESSEE and/or which, in the reasonable judgment of the LESSOR, could
jeopardize its interests under this Agreement. If such conditions are caused by circumstances
within the control of the LESSEE or if such circumstances result from a Substance (hazardous or
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otherwise) owned by, or located on the Premises by, the LESSEE (without regard to the actual
cause of any escape, seepage, leakage, spillage, discharge, emission or release) all reasonable costs
and expenses incurred by the LESSOR in the exercise of any such rights shall be payable by the
LESSEE, within 15 calendar days of written demand by Landlord.
g. If an event of default shall have occurred and be continuing, the LESSEE at the request of the
LESSOR shall periodically perform, at the LESSEE’s expense, an environmental audit following
the requirements of Exhibit “A” and, if reasonably deemed necessary by the LESSOR, an
environmental risk assessment, of the Premises, or the hazardous waste management practices
and/or hazardous waste disposal sites used by the LESSEE with respect to the Premises. Such
audits and/or risk assessments shall be conducted by an environmental consultant satisfactory to
the LESSOR, and all environmental audits and environmental risk assessments must be reasonable
satisfactory to the LESSOR. Should the LESSEE fail to perform any such environmental audit
or risk assessment within 90 calendar days of the written request of the LESSOR, the LESSOR
shall have the right, but not the obligation, to retain an environmental consultant to perform any
such environmental audit or risk assessment. All costs and expenses incurred by the LESSOR in
the exercise of such rights shall be payable by the LESSEE on demand.
h. Neither LESSEE nor LESSOR shall install or permit to be installed in the Premises friable
asbestos, electrical equipment containing polychlorinated biphenyls, or any Substance containing
asbestos and deemed hazardous by federal or state regulations applicable to the Premises and
respecting such material. The LESSEE shall defend, indemnify, and save the LESSOR and the
City of Wichita harmless from all costs and expenses (including consequential damages) asserted
or proven against the LESSEE by any person, as a result of the presence of said Substances, and
the costs of any removal or compliance with such regulations, if said Substance was installed by
the LESSEE, or persons within its control.
i. Subject to any limitations or restrictions imposed by the Kansas Budget Law or Cash Basis Law,
the LESSOR hereby agrees to indemnify and hold harmless the LESSEE from and against any and
all losses, liabilities, including strict liability, damages, injuries, expenses, including reasonable
attorneys’ fees, costs of any settlement or judgment and claims of any and every kind whatsoever
paid, incurred or suffered by, or asserted against, the LESSEE by any person or entity for, arising
out of, the presence on or under, or the escape, seepage, leakage, spillage, discharge, emission,
discharging or release from the Premises during the Term of this Agreement and the period prior
to the Term of this Agreement of any Substance (hazardous or otherwise) (including, without
limitation, any losses, liabilities, reasonable attorneys’ fees, costs of any settlement or judgment
or claims asserted or arising under the Comprehensive Environmental Response, Compensation
and Liability Act, any federal, state or local so-called “Superfund” or “Super lien” laws, or any
other applicable statute, law, ordinance, code, rule, regulation, order of decree regulating, relating
to or imposing liability, including strict liability, or standards of conduct concerning any
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Hazardous Substance) unless such presence, escape, seepage, leakage, spillage, discharge,
emission or release was caused by the LESSEE, or persons within the control of the LESSEE, its
officers, employees, agents, invitees and/or licensees, or if such Substance (hazardous or
otherwise) was owned by, or placed upon the Premises by, the LESSEE (without regard to the
actual cause of any escape, seepage, leakage, spillage, discharge, emission or release except to the
extent such was caused by the LESSOR).
j. Environmental compliance shall not be limited to those items noted within this Agreement but
shall include any current or future federal, state, or local law, statute or regulation, that may be
required of LESSEE’s operation (storage or use of Substances (hazardous or otherwise), activities
of LESSEE’s employees or contracted vendor’s etc.). LESSEE shall provide LESSOR upon
request copies of any plan, training program, training records, material safety data sheet or any
other documentation required by said laws.
k. The provisions of this Section shall survive the termination of this Agreement.
50. INDEMNITY
a. To the extent allowed by law LESSEE, shall protect, defend and hold LESSOR and the City of
Wichita and its officers, elected officials, agents and employees completely harmless from and
against any and all liabilities, losses, suits, claims, judgments, fines or demands arising by reason
of injury or death of any person or damage to any property, including all reasonable costs for
investigation and defense thereof (including but not limited to attorney fees, court cost and expert
fees), or other liability of any nature whatsoever arising out of or incident to this Agreement and/or
the use or occupancy of the Premises or the acts or omissions of LESSEE’s officers, agents,
employees, contractors, subcontractors, licensees or invitees, regardless of where the injury, death
or damage may occur, except to the extent such injury, death or damage is caused by the negligence
of LESSOR. The LESSOR shall give to LESSEE reasonable notice of any such claims or actions.
b. To the extent allowed by law, LESSOR shall protect, defend and hold LESSEE, its officers,
members, managers, agents and employees completely harmless from and against all liabilities,
losses, suits, claims, judgments, fines or demands arising by reason of injury to or death of any
person or damage to any property, including all reasonable costs for investigation and defense
thereof (including but not limited to attorney fees, court costs and expert fees), or other liability of
any nature whatsoever arising out of or incident to this Agreement and/or the use or occupancy of
the Premises or the acts of omissions of LESSOR’s officers, agents, employees, contractors,
subcontractors, licensees or invitees, regardless of where the injury, death or damage may occur,
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except to the extent such injury, death or damage is caused by the negligence of LESSEE. The
LESSEE shall give LESSOR reasonable notice of any such claims or actions.
c. Should LESSEE, its employees, subcontractors, suppliers, agents, customers, and/or
representatives cause any violations of federal, state or local law, regulation or ordinance, and
should LESSOR be cited for a fine or penalty for such violation, LESSEE agrees to reimburse
LESSOR for any monetary fine or penalty which may be imposed on LESSOR. However, nothing
herein shall prevent the LESSEE from contesting the legality, validity or application of such fine
or penalty to the full extent LESSEE may be lawfully entitled, nor require LESSOR to pursue such
a contest on LESSEE’s behalf.
d. The provisions of this Section shall survive the expiration or termination of this Agreement to the
extent that they relate to liabilities, losses, suits, claims, judgments, fines or demands arising from
or incident to events occurring during LESSEE’S occupancy of the Premises. The LESSEE shall
use counsel reasonably acceptable to LESSOR in carrying out its obligations in this Section.
51. DAMAGE OR DESTRUCTION
In the event that facilities or improvements on the Premises are damaged or destroyed in whole or in part
by fire, lightning or any other peril or other casualty during the Term of this Agreement, this Agreement
shall remain in full force and effect and LESSEE shall proceed with due diligence to repair, restore, rebuild
or replace said damaged or destroyed property or parts thereof to as good a condition as all affected
properties were in immediately prior to such damage or destruction, subject to such alterations as LESSEE
may elect to make and are permitted in this Agreement. All proceeds from the insurance policies related
to such damage or destruction shall be first applied to cover the cost of such repairs or restoration. In
alternative, and in LESSOR’s discretion to allow and LESSEE’s election to exercise, LESSEE may be
released from this Agreement upon payment of all demolition and removal costs for damaged or destroyed
improvements and payment therefor at the fair market value.
52. CONDEMNATION
a. If, during the Term, title to, or the temporary use of, all or any part of the Premises shall be
condemned by any authority exercising the power of eminent domain, LESSEE shall, within
fifteen (15) calendar days after the date of entry of a final order in any eminent domain proceedings
granting condemnation, notify LESSOR in writing as to the nature and extent of such
condemnation and whether it is practicable for LESSEE to acquire or construct substitute
improvements, or whether LESSEE shall elect to terminate this Agreement.
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b. If LESSEE shall determine that such substitution is practicable and desirable and LESSOR agrees
thereto, LESSEE shall forthwith proceed with and complete with reasonable dispatch the
acquisition or construction of such substitute improvements. In such case, any net proceeds
received from any award or awards with respect to the Premises or any part thereof made in such
condemnation or eminent domain proceeds shall be used and applied for the purpose of paying the
cost of such substitution. Any proceeds not required for such costs shall be distributed to the
Parties in pro-rata distributions as their interests may appear based upon Agreement Term
remaining and the fair market value of each Party’s interest at the time the proceeds are received.
c. If LESSEE shall determine that it is not practicable and desirable to acquire or construct substitute
improvements, any net proceeds shall be distributed to the Parties in pro-rata distributions as their
interests may appear based upon the Agreement Term remaining, and the fair market value of each
Party’s interest at the time the proceeds are received.
d. LESSOR shall cooperate fully with LESSEE in the handling and conduct of any prospective or
pending condemnation proceedings with respect to the Premises or any part thereof. In no event
shall LESSEE or LESSOR voluntarily settle or consent to the settlement of any prospective or
pending condemnation proceedings with respect to the Premises without the mutual agreement
and written consent of the other Party to this Agreement.
53. MODIFICATIONS FOR GRANTING FAA FUNDS
In the event that the LESSOR determines the Federal Aviation Administration requirements call for
modifications or changes to this Agreement as a condition precedent to granting of funds for the
improvement of the Airport, these modifications or changes shall supersede this Agreement and LESSEE
agrees to consent to such amendments, modifications, revisions, supplements or deletions of any of the
terms, conditions or requirements of this Agreement as may be reasonably required by the LESSOR to
fully comply with federal grant assurances and directives, and to obtain Federal Aviation Administration
grants-in-aid, provided that no such changes shall materially alter the rights or obligations of LESSEE
hereunder.
54. NONDISCRIMINATION
The LESSEE agrees that it shall not discriminate or permit discrimination against any person on the basis
of race, color, sex, religion, disability, age (except where age is a bona fide occupational qualification),
national origin or ancestry in its operations or services, and its use or occupancy of property under this
Agreement. The LESSEE agrees to comply with all applicable provisions of federal and state laws,
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regulations, or executive orders prohibiting discriminatory conduct. The LESSEE further agrees that it
shall not engage in unjust discrimination among aeronautical users as defined by FAA Airport Compliance
Manual – Order 5190.6B, and Sponsor Grant Assurance 22 Economic Nondiscrimination.
55. GENERAL PROVISIONS
LESSOR shall not be obligated to maintain and keep in repair such areas of the Airport as may be leased
to or under the control of Airport tenants, whether such area serves aeronautical users or otherwise.
Brokerage Fees. The Authority will not pay brokerage fees to brokers representing the LESSEE. All
brokerage fees shall be the responsibility of the LESSEE.
Operation of Airport by the United States of America. This Agreement and all the provisions hereof shall
be subject to whatever right the United States of America now has or in the future may have or acquire,
affecting the control, operation, regulation and taking over of said Airport or the exclusive or nonexclusive
use of the Airport by the United States during the time of war or national emergency.
14 CFR Part 77 of Federal Aviation Regulations. LESSEE agrees to comply with the notification and
review requirements covered in Part 77 of the Federal Aviation Regulations in the event future
construction of a building, structure, or attachment thereto is planned for the Premises, or in the event of
any planned modification or alteration of any present or future building or structure situated on the
Premises. LESSEE by accepting this Agreement expressly agrees for itself, its successors and assignees,
it shall not erect nor permit the erection of any structure or object, nor permit the growth of any tree on
the Premises which shall exceed such maximum height as may be stipulated by LESSOR. It is understood
and agreed that applicable laws, codes, regulations or agreements concerning height restrictions shall
govern the maximum height to be stipulated by LESSOR. In the event the aforesaid covenants are
breached, LESSOR reserves the right to enter upon the Premises and to remove the offending structure or
object, and cut down the offending tree, all of which shall be at the expense of LESSEE and without
liability to LESSOR.
Airspace. There is hereby reserved to LESSOR, its successors and assigns, for the use and benefit of the
public, a right of flight for the passage of aircraft in the airspace above the surface of the Premises. This
public right of flight shall include the right to cause or allow in said airspace, any noise inherent in the
operation of any aircraft used for navigation or flight through the said airspace or landing at, taking off
from or operation on the Airport. No liability on the part of LESSOR shall result from the exercise of this
right.
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Easement for Flight. LESSEE releases LESSOR from any present or future liability whatsoever and
covenants not to sue LESSOR for damages or any other relief based directly or indirectly upon noise,
light, vibrations, smoke, fumes, odors, air currents, electronic or other emissions occurring as a result of
aviation or airport related operations at or otherwise associated with the Airport. This release and covenant
includes but is not limited to claims for damages for physical or emotional injuries, discomfort,
inconvenience, property damage, death, interference with use and enjoyment of property, nuisance, or
inverse condemnation or for injunctive or other extraordinary or equitable relief.
It is further agreed that LESSOR shall have no duty to avoid or mitigate such damages by, without
limitation, setting aside or condemning buffer lands, rerouting air traffic, erecting sound or other barriers,
establishing curfews, noise or other regulations, relocating airport facilities or operations or taking other
measures, except to the extent, if any, that such actions are validly required by government authority.
LESSOR reserves these rights from the Premises an easement for flight of aircraft in or adjacent to the
airspace above the Premises and for the existence and imposition over, on and upon said Premises of noise,
light, vibrations, smoke, fumes, odors, air currents, electronic or other emissions, discomfort,
inconvenience, interference with use and enjoyment, and any consequent reduction in market value which
may occur directly or indirectly as a result of aviation, airport or airport-related operations at or otherwise
associated with use of the Airport. LESSEE accepts the Premises subject to the risks and activities
hereinabove described.
Airport Hazards. LESSEE by accepting this Agreement agrees for itself, its successors and assigns, that it
shall not make use of the Premises in any manner which may interfere with the landing and taking off of
aircraft from the Airport or otherwise constitute a hazard. In the event this Agreement Term is breached,
LESSOR reserves the right to enter upon the Premises and cause the abatement of such interference at the
expense of LESSEE without liability to LESSOR of any kind.
Federal Aviation Administration Requirements. LESSOR and LESSEE agree that the requirements of the
FAA set out below are approved by both Parties, and if applicable, LESSEE agrees to comply with all
FAA requirements with respect to its operations, use of the Airport and this Agreement:
(a) The LESSEE, for itself and its representatives, successors in interest and assigns, as a part of
the consideration hereof, does hereby covenant and agree as a covenant running with the
Land that in the event Facilities are constructed, maintained or otherwise operated on the
Premises for a purpose for which a Department of Transportation program or activity is
extended or for another purpose involving the provision of similar services or benefits, the
LESSEE shall maintain and operate such Facilities and services in compliance with all other
requirements imposed pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted
Programs of the Department of Transportation, and as said Regulations may be amended.
(b) The LESSEE, for itself and its representatives, successors in interest and assigns, as a part of
the consideration hereof, does hereby covenant and agree as a covenant running with the
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Land that: (1) no person on the grounds of race, color, or national origin shall be excluded
from participation in, denied the benefits of, or be otherwise subjected to discrimination in
the use of said Facilities, (2) that in the construction of any improvements on, over, or under
such Land and the furnishing of services thereon, no person on the grounds of race, color, or
national origin shall be excluded from participation in, denied the benefits of, or otherwise
be subjected to discrimination, (3) that the LESSEE shall use the Premises in compliance
with all other requirements imposed by or pursuant to 49 CFR Part 21, Nondiscrimination in
Federally Assisted Programs of the Department of Transportation, and as said Regulations
may be amended.
(c) The LESSEE assures that it shall undertake an affirmative action program if required by 14
CFR Part 152, Subpart E, to insure that no person shall on the grounds of race, creed, color,
national origin, or sex be excluded from participating in any employment activities covered
in 14 CFR Part 152, Subpart E. The LESSEE assures that no person shall be excluded on
these grounds from participating in or receiving the services or benefits of any program or
activity covered by this subpart. The LESSEE assures that it shall require that its covered
suborganizations provide assurances to the LESSEE that they similarly shall undertake
affirmative action programs, and that they shall require assurances from their
suborganizations, as required by 14 CFR Part 152, Subpart E, to the same effect.
(d) It is understood and agreed that nothing herein contained shall be construed to grant or
authorize the granting of an exclusive right within the meaning of Section 308 of the Federal
Aviation Act of 1958. Rights granted under the Agreement are nonexclusive and that
LESSOR reserves the right to grant similar rights and privileges to other tenants and
operators in accordance with 49 USC 47107 – Section 308 (a) of Federal Aviation Act of
1982.
(e) LESSEE agrees to furnish service on a fair, equal and not unjustly discriminatory basis to all
users thereof, and to charge fair, reasonable and not unjustly discriminatory prices for each
unit or service; PROVIDED, that LESSEE may make reasonable and nondiscriminatory
discounts, rebates or other similar types of price reductions to volume purchasers.
(f) LESSOR reserves the right (but shall not be obligated to LESSEE) to maintain and keep in
repair the landing area of the airport and all publicly-owned facilities of the airport, together
with the right to direct and control all activities of LESSEE in this regard.
(g) LESSOR reserves the right further to develop or improve the landing area and all publicly-
owned air navigation facilities of the airport as it sees fit, regardless of the desires or views
of LESSEE, and without interference or hindrance.
(h) LESSOR reserves the right to take any action it considers necessary to protect the aerial
approaches of the airport against obstruction, together with the right to prevent LESSEE from
erecting, or permitting to be erected, any building or other structure on the airport which, in
the opinion of LESSOR, would limit the usefulness of the airport or constitute a hazard to
aircraft.
(i) During time of war or national emergency LESSOR shall have the right to enter into an
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agreement with the United States Government for military or naval use of part or all of the
landing area, the publicly-owned air navigation facilities and/or other areas or facilities of
the Airport. If any such agreement is executed, the provisions of this instrument, insofar as
they are inconsistent with the provisions of the agreement with the Government, shall be
suspended.
(j) It is understood and agreed that the rights granted by this Agreement shall not be exercised in
such a way as to interfere with or adversely affect the use, operation, maintenance or
development of the Airport.
(k) There is hereby reserved to LESSOR, its successors and assigns, for the use and benefit of the
public, a free and unrestricted right of flight for the passage of aircraft in the air space above
the surface of the Premises herein conveyed, together with the right to cause in said airspace
such noise as may be inherent in the operation of aircraft now known or hereafter used for
navigation of or flight in the air, using said airspace or landing at, taking off from or operating
on or about the airport.
(l) This Agreement shall become subordinate to provisions of any existing or future agreement
between the LESSOR and the United States of America or any agency thereof relative to the
operation, development or maintenance of the airport, the execution of which has been or
may be required as a condition precedent to the expenditure of federal funds for the
development of the Airport.
Subordination to Agreements with the U.S. Government. This Agreement is subject and subordinate to
the provisions of any agreements heretofore or hereafter made between LESSOR and the United States
Government relative to the operation or maintenance of Airport, the execution of which has been required
as a condition precedent to the transfer of federal rights or property to LESSOR for Airport purposes, or
the expenditure of federal funds for the improvement or development of Airport, including the expenditure
of federal funds for the development of Airport in accordance with the provisions of the Federal Aviation
Act of 1958, as it has been amended from time to time. LESSOR covenants that it has no known existing
agreements with the United States Government in conflict with the express provisions hereof.
Non-Waiver of Rights. No waiver or default by either Party of any of the terms, warranties, covenants
and conditions hereof to be performed, kept and observed by the other Party shall be construed as, or shall
operate as, a waiver of any subsequent default of any of the terms, warranties, covenants or conditions
herein contained, to be performed, kept and observed by the other Party.
Captions. The captions/headings of the Sections of this Agreement are inserted only as a matter of
convenience and for reference, and in no way define, limit or describe the scope or intent of any provisions
of this Agreement, and shall not be construed to affect in any manner the terms and provisions hereof or
the interpretation or construction thereof.
Severability and Invalid Provisions. In the event any term, covenant, condition or provision herein
contained is held to be invalid by any court of competent jurisdiction, the invalidity of any such term,
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covenant, condition or provision shall in no way affect any other term, covenant, condition or provision
herein contained; provided, however, that the invalidity of any such term, covenant, condition or provision
does not materially prejudice either the LESSOR or the LESSEE in their respective rights and obligations
contained in the valid terms, covenants, conditions or provisions in this agreement.
Incorporation of Exhibits. All exhibits referred to in this Agreement are intended to be and are hereby
specifically made a part of this Agreement.
Incorporation of Required Provisions. The Parties incorporate in this Agreement by this reference all
provisions lawfully required to be contained herein by any governmental body or agency.
Non-Liability of Agents and Employees. No manager, member, officer, agent or employee of either Party
to this Agreement shall be charged personally, or held contractually liable by or to the other Party under
the terms or provisions of this Agreement, or because of any breach thereof or because of its or their
execution or attempted execution.
Successors and Assigns Bound. This Agreement shall be binding upon and inure to the benefit of the
successors and assigns of the Parties hereto where permitted by this Agreement.
Time of Essence. Time is of the essence in this Agreement.
Relationship of the Parties. It is understood LESSEE is not in any way or for any purpose a partner or
joint venturer with or an agent of LESSOR. LESSEE shall act as an independent contractor in the
performance of its duties pursuant to this Agreement.
Interpretation. LESSOR and LESSEE hereby agree that this Agreement shall not be construed or
interpreted in favor of either Party on the basis of preparation.
Authorization. The individuals executing this Agreement personally warrant that they have full authority
to execute this Agreement on behalf of the entity for which they are acting herein.
Acknowledgement. The Parties hereto acknowledge that they have thoroughly read this Agreement,
including any exhibits or attachments hereto, and have sought and received whatever competent advice
and counsel deemed necessary for them to form a full and complete understanding of all rights and
obligations herein.
Kansas Laws to Govern. This Agreement is created in the State of Kansas and the terms and conditions
herein contained shall at all times be governed, interpreted and construed under and in accordance with
the laws of the State of Kansas, and venue for resolution of any issue pertaining to this Agreement shall
be in Sedgwick County, Kansas.
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56. FORCE MAJEURE
Anything contained in this Agreement to the contrary notwithstanding, neither Party shall be deemed in
default with respect to the performance of any of the terms, covenants, and conditions of this Agreement
if non-performance shall be due to any “Act of God” or “Force Majeure” which terms are defined for
purposes of this Agreement as strikes, lockouts, civil commotion, riots, material or labor restrictions by
any governmental authority, explosions, earthquakes, fire, floods, catastrophic weather events, acts of the
public enemy, wars, acts of terrorism, or insurrections. The occurrence of any Act of God or Force
Majeure shall be excused for the period of the delay thus occasioned and the period for performance of
any such acts shall be extended for a period equivalent to the period of such delay.
57. THIRD PARTY RIGHTS
It is agreed between the parties that it is not intended by any of the provisions of this Agreement to create
for the public or any member thereof the status of a third-party beneficiary, or to authorize anyone not a
party to this Agreement to maintain a suit for damages pursuant to the terms or provisions of this
Agreement.
58. QUIET ENJOYMENT
LESSOR agrees that, on payment of the rentals and fees and performance of the terms, covenants,
conditions and agreements on the part of LESSEE to be performed in this Agreement, LESSEE shall have
the right to peaceably occupy and enjoy the Premises, subject however, to the provisions otherwise set out
in this Agreement.
59. HOLD OVER
In the event LESSEE holds over the lease of the Premises, any rights granted after expiration of this
Agreement without any written renewal, shall not be deemed to operate as a renewal or extension of this
Agreement, but shall only create a month-to-month arrangement, which may be terminated within thirty
(30) day notice by LESSOR or LESSEE.
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60. SURRENDER OF POSSESSION AND RESTORATION
a. LESSEE shall yield and deliver to LESSOR possession of the Premises at the expiration or
termination of this Agreement in good condition in accordance with LESSEE’s obligations in this
Agreement, except for reasonable wear and tear. LESSEE is relieved of financial responsibility
for fire or other casualty for which full insurance compensation has been paid as agreed. LESSEE
shall, at its expense, deliver the Premises in good order and condition, including:
1) cleaning and hauling away all supplies and trash;
2) remove and legally transport and dispose of all fuel storage and dispensing facilities,
equipment and systems and auxiliary and ancillary appurtenances thereto;
3) removing by legal means all materials or other substances classified as hazardous;
4) leaving in operating condition all bulbs and ballasts in Exclusive Use areas;
5) replacing all broken glass; and
6) return to LESSOR all keys and security access and ID media to all doors and gates.
b. LESSEE, at LESSEE’s expense, shall remove prior to the termination or expiration of this
Agreement all fixtures, non-attached equipment and personal property placed by LESSEE on or
about the Premises herein leased, subject to LESSEE’s repairing any damage thereto caused by
such removal and subject to any valid lien which LESSOR may have on that property for unpaid
rents, expenses or fees.
c. In the event LESSEE does not remove all of its equipment and personal property within thirty (30)
calendar days after the termination or expiration of this Agreement, any remaining property shall
be considered abandoned and LESSOR may take possession and use for its own purposes, or
alternatively dispose of said property without any further responsibility or liability to LESSEE.
The net disposal costs of such property shall be the financial obligation of LESSEE.
61. INTENTION OF PARTIES
a. This Agreement is intended solely for the benefit of LESSOR and LESSEE and is not intended to
benefit, either directly or indirectly, any third party or member(s) of the public at large. Any work
done or inspection of the Premises performed by LESSOR is solely for the benefit of LESSOR
and LESSEE.
b. Nothing contained herein shall be deemed or construed by the Parties hereto, or by any third party,
as creating the relationship of principal and agent, partners, joint ventures, or any other similar
such relationship, between the Parties hereto. Further, non-parties to this Agreement may not
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maintain a suit for personal injuries or property damage pursuant to the terms or provisions of the
Agreement. The Parties shall understand and agree that neither the method of payment, nor any
other provision contained herein, nor any act(s) of the Parties hereto creates a relationship other
than the contractual relationship of the LESSOR and the LESSEE.
c. It is agreed between the Parties that it is not intended by any of the provisions of this Agreement
to create for the public or any member thereof the status of a third-party beneficiary, or to authorize
anyone not a party to this Agreement to maintain a suit for damages pursuant to the terms or
provisions of this Agreement.
62. ENTIRE AGREEMENT SUPERSEDES PRIOR AGREEMENTS
a. The Parties understand and agree that this instrument contains the entire Agreement between them.
The Parties hereto further understand and agree that the other Party and its agents have made no
representations or promises with respect to the Agreement or the making or entry into this
Agreement, except as expressed in this Agreement, and that no claim or liability or cause for
termination shall be asserted by either Party against the other and such Party shall not be liable by
reason of, the making of any representations or promises not expressly stated in this Agreement,
any other written or oral agreement with the other being expressly waived.
b. The individuals executing this Agreement personally warrant that they have full authority to
execute this Agreement on behalf of the entity for which they represent.
c. The Parties hereto acknowledge that they have read this Agreement, including any exhibits or
attachments hereto, and have sought and received whatever competent advice and counsel deemed
necessary for them to form a full and complete understanding of all rights and obligations herein.
d. As of the Commencement Date hereof, this Agreement shall nullify all prior agreements and
arrangements, written or verbal, between the Parties.
e. Any sublease agreement between the LESSEE and third-parties which conveys access to, rights of
tenancy, or rights or privileges to occupy and use the Premises by third-parties, shall be null and
void as a result of termination, cancellation, or expiration of this Agreement, regardless of
sublessee’s state of compliance with the terms of its sublease.
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63. AMENDMENT
No amendment, modification, or alteration of the terms of this Agreement shall be binding unless the same
is in writing, dated subsequent to the date hereof, and duly executed by the Parties hereto.
64. APPROVAL, CONSENT, DIRECTION OR DESIGNATION BY LESSOR
Wherever under this Agreement, approvals, consents, directions, or designations are required or permitted,
such approvals, consents, directions, or designations required or permitted under this Agreement shall be
performed by the Director of Airports, or his/her authorized representative. Approvals, consents,
directions, or designations made at any time by the Director of Airports, and from time to time, may be
withdrawn or modified by notice from LESSOR to LESSEE.
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IN WITNESS WHEREOF, the Parties hereto have executed this agreement the day and year first above
written.
ATTEST: THE WICHITA AIRPORT AUTHORITY
WICHITA, KANSAS
By _________________________________ By __________________________________
Karen Sublett, City Clerk Brandon Whipple, President
"LESSOR"
By _________________________________
Victor D. White, Director of Airports
TEST: ATTEST: MID-CONTINENT AVIATION SERVICES, INC.
By _________________________________ By _________________________________
Dave VanderGriend, President
“LESSEE”
APPROVED AS TO FORM: _____________________________ Date: _____________
Jennifer Magaña,
City Attorney and Director of Law
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PROFESSIONAL ENGINEERING CONSULTANTS, P.A.
303 SOUTH TOPEKA
316-262-2691www.pec1.com
WICHITA, KS 67202
02-07-20
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PROFESSIONAL ENGINEERING CONSULTANTS, P.A.
303 SOUTH TOPEKA
316-262-2691www.pec1.com
WICHITA, KS 67202
02-07-20
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PROFESSIONAL ENGINEERING CONSULTANTS, P.A.
303 SOUTH TOPEKA
316-262-2691www.pec1.com
WICHITA, KS 67202
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CMB’S FOR June 2, 2020
Renew 2020 Consumption On PremisesDebi Chun BJ’s Restaurant & Brewhouse** 7960 E. Kellogg Dr
Renew 2020 Consumption Off PremisesJason White Quik Trip #356R*** 1623 E. 47th St SJason white Quik Trip #329R*** 1620 S. Oliver St
** General/Restaurant (need 50% or more gross revenue from sale of food)*** Retailer (Grocery stores, convenience stores, etc.)
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THE CITY OF WICHITA Wichita, KansasDepartment of Public Works
NOT TO BE ADVERTISEDPRELIMINARY ESTIMATES
FOR CITY COUNCIL JUNE 2, 2020
PRELIMINARY ESTIMATE of the cost of water improvements to serve Emerald Bay 4th
Addition, (north of 21st North, east of Hoover Road) (District VI) (448-2019-007864/E9073/474110219) – Total Estimated Cost $87,480.
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To the City Council Date of CC 06/02/2020Wichita, Kansas (PROJ/ORG) E9073/47110219
(ENG PROJ) 448-2019-007864
THIS PROJECT IS NOT TO BE ADVERTISED FOR BIDS
PRELIMINARY ESTIMATE of the cost of water improvements to serve Emerald Bay 4thAddition (District VI).
All work done and all materials furnished to be in accordance with plans and specifications on file in the office of the City Engineer.
Total Estimated Cost $87,480
CITY OF WICHITASTATE OF KANSAS) SS
I do solemnly swear that the above amount is correct, reasonable and just.
_______________________________ Gary Janzen, City Engineer
Sworn to and subscribed before me this 2nd day of June.
_______________________________________________________
City Clerk
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Page ______ Exhibit _________
PRELIMINARY ESTIMATE of the cost of water improvements to serve Emerald Bay 4thAddition, (north of 21st North, east of Hoover Road) (District VI (448-2019-007864/E9073/47110219) – Total Estimated Cost $87,480.
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____ Exhibit _________
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Agenda Item No. II-3a
City of WichitaCity Council Meeting
June 2, 2020
TO: Mayor and City Council
SUBJECT: ASR 2019 Accounting Model and Annual Report (All Districts)
INITIATED BY: Department of Public Works & Utilities
AGENDA: Consent
Recommendation: Approve the agreement.
Background: The City of Wichita is required to provide an annual accounting of water volumes withdrawn and recharged into the Equus Beds Aquifer as a condition of the permit to operate the Aquifer Storage and Recovery (ASR) project. One of the conditions placed on the project by the chief engineer of the Division of Water Resources (DWR) is the use of a hydrogeological computer model (MODFLOW)to determine the amount of recharge credits available for appropriation.
The original hydrogeological model was developed by Burns and McDonnell Engineering Company (BMcD) and the United States Geological Service (USGS) to track all of the water uses in the project area.
Analysis: BMcD was originally selected as the service provider for other ASR tasks, through a competitive process. With its specific experience and knowledge of the model, selecting BMcD to provide the accounting report removes the learning expense another firm would introduce and reduces the other resources necessary to facilitate data acquisition and report preparation. The Sole Source Policy, Section 2.64.030, allows for sole-source procurement when it is economically disadvantageous to solicit multiple vendors. Purchasing has indicated concurrence with the renewal of this sole-source procurement.
The proposed agreement between the City and BMcD provides for: Updates to the MODFLOW model with 2019 data, and calculation of recharge credits. Generation of the 2019 Annual Report and submittal to the DWR.
Financial Considerations: Payment to BMcD will be based on time related charges for labor and direct expenses, with the total of all payments not to exceed $112,596. The agreement provides that any costs in excess of the stated limit will be agreed upon by both parties prior to the services being provided or expenses being incurred. Funding for the proposed agreement is available in the 2020 Adopted Budget for Water Production and Pumping operations.
Legal Considerations: The agreement has been reviewed and approved as to form by the Law Department.
Recommendation/Action: It is recommended that the City Council approve the agreement, and authorize the necessary signatures.
Attachments: Agreement and Exhibit “B” Cost Estimate.
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WICHITA ASR ACCOUNT MODEL ANNUAL REPORT.DOCX
AGREEMENT
for
PROFESSIONAL SERVICES
between
THE CITY OF WICHITA, KANSAS
and
BURNS & MCDONNELL ENGINEERING COMPANY, INC.
for
2019 ASR ACCOUNTING MODEL & ANNUAL REPORT
THIS AGREEMENT, made this _____ day of ________________, 2020, by and between the CITY OF WICHITA, KANSAS, party of the first part, hereinafter called the "CITY" and BURNS & MCDONNELL ENGINEERING COMPANY, INC., party of the second part, hereinafter called the "ENGINEER".
WHEREAS, the CITY wishes to supplement their current staff capabilities in the areas of water resource planning, water rights administration, AND Aquifer Storage and Recovery.
WHEREAS, the major components of this PROJECT will include, but not be limited to providing engineering services to the City of Wichita Public Works and Utilities; and,
WHEREAS, the work will be conducted under the direction of the City Engineer or his designated representative.
NOW, THEREFORE, the parties hereto do mutually agree as follows:
I. SCOPE OF SERVICES A. The ENGINEER shall furnish professional services to complete the 2019 ASR
Accounting Model & Annual Report. The major tasks for this work include: 231
WICHITA ASR ACCOUNT MODEL ANNUAL REPORT.DOCX
1. Update the MODFLOW model with 2019 data. 2. Run the model and obtain 2019 results. 3. Calculate recharge credits 4. Generate 2019 report and submit to Division of Water Resources (DWR).
II. IN ADDITION, THE ENGINEER AGREES
A. To provide the various technical and professional services, equipment, material and transportation to perform the tasks as requested.
B. To attend meetings with the City and other local, state and federal agencies as necessitated by the SCOPE OF SERVICES.
C. To make available during regular office hours, all writings, calculations, sketches, drawings and models such as the CITY may wish to examine periodically during performance of this agreement.
D. To save and hold CITY harmless against all suits, claims, damages and losses for injuries to persons or property arising from or caused by errors, omissions or negligent acts of ENGINEER, its agents, servants, employees, or subcontractors occurring in the performance of its services under this contract.
E. To maintain books, documents, papers, accounting records and other evidence pertaining to costs incurred by ENGINEER and, where relevant to method of payment, to make such material available to the CITY, or its authorized representative. To comply with all Federal, State and local laws, ordinances and regulations applicable to the work, including Title VI of the Civil Rights Act of 1964, and to comply with the CITY’S Affirmative Action Program as set forth in Exhibit “A” which is attached hereto and adopted by reference as though fully set forth herein.
F. To accept compensation for the work herein described in such amounts and at such periods as provided in Article IV and that such compensation shall be satisfactory and sufficient payment for all work performed, equipment or materials used and services rendered in connection with such work.
G. To complete the services to be performed by ENGINEER within the time allotted for the PROJECT. EXCEPT that the ENGINEER shall not be responsible or held liable for delays occasioned by the actions or inactions of the CITY or other agencies, or for other unavoidable delays beyond control of the ENGINEER.
H. Covenants and represents to be responsible for the professional and technical accuracies and the coordination of all designs, drawings, specifications, plans, writings, models, and/or other work or material furnished by the ENGINEER under this agreement. ENGINEER further agrees, covenants and represents, that all designs, drawings, specifications, plans, writings, models, and other work or material furnished by ENGINEER, its agents, employees and subcontractors, under this agreement, including any additions, alterations or amendments thereof, shall be free from negligent errors or omissions. The Study Report, model(s), presentation materials, and any other work produced under this Agreement which may be copyrighted shall become the property of the CITY upon completion, and there shall be no restriction or limitation on the further use of said works by the CITY. The parties hereto intend the CITY to have copyright ownership in the works produced hereunder, as “works made for hire”, under the
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provisions of United States copyright laws. In the event any of the works is ever determined not to constitute or qualify as a “work made for hire,” ENGINEER agrees to grant the CITY a perpetual, royalty-free and irrevocable license to reproduce, publish and/or otherwise use and authorize others to use such works.
I. ENGINEER shall procure and maintain such insurance as will protect the ENGINEER from damages resulting from the negligent acts of the ENGINEER, its agents, officers, employees and subcontractors in the performance of the professional services rendered under this agreement. Such policy of insurance shall be in an amount not less than $500,000.00. In addition, a Worker’s Compensation and Employer’s Liability Policy shall be procured and maintained. This policy shall include an “all state” endorsement. Said insurance policy shall also cover claims for injury, disease or death of employees arising out of and in the course of their employment, which, for any reason, may not fall within the provisions of the Workman’s Compensation Law. The liability limit shall be not less than:
Worker’s Compensation – Statutory
Employer’s Liability - $500,000 each occurrence.
Further, a commercial general liability policy shall be procured and maintained by the ENGINEER that shall be written in a comprehensive form and shall protect ENGINEER against all claims arising from injuries to persons (other than ENGINEER’S employees) or damage to property of the CITY or others arising out of any negligent act or omission of ENGINEER, its agents, officers, employees or subcontractors in the performance of the professional services under this agreement. The liability limit shall not be less than $500,000.00 per occurrence for bodily injury, death and property damage. Satisfactory Certificates of Insurance shall be filed with the CITY prior to the time ENGINEER starts any work under this agreement. ENGINEER shall provide CITY thirty (30) days written notice by the insurance company before such policy is substantially changed or canceled.
J. To designate a Project Manager for the coordination of the work that this agreement requires to be performed. The ENGINEER agrees to advise the CITY, in writing, of the person(s) designated as Project Manager not later than five (5) days following issuance of the notice to proceed on the work required by this agreement. The ENGINEER shall also advise the CITY of any changes in the person designated Project Manager. Written notification shall be provided to the CITY for any changes exceeding one week in length of time.
III. THE CITY AGREES:
A. To furnish all available data pertaining to the PROJECT now in the CITY’S files at no cost to the ENGINEER. Confidential materials marked or otherwise identified by CITY and so furnished will be kept confidential by the ENGINEER.
B. To provide standards as required for the PROJECT; however, reproduction costs are the responsibility of the ENGINEER.
C. To pay the ENGINEER for his services in accordance with the requirements of this agreement.
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D. To provide the right-of-entry for ENGINEER’S personnel in performing field surveys and inspections.
E. To designate a Project Manager for the coordination of the work that this agreement requires to be performed. The CITY agrees to advise the ENGINEER, in writing, of the person(s) designated as Project Manager with the issuance of the notice to proceed on the work required by this agreement. The CITY shall also advise the ENGINEER of any changes in the person(s) designated Project Manager. Written notification shall be provided to the ENGINEER for any changes exceeding one week in length of time.
F. To examine all studies, reports, sketches, drawings, specifications, proposals and other documents presented by ENGINEER in a timely fashion.
IV. PAYMENT PROVISIONS
A. Payment to the Engineer for the performance of the professional services required shall be time related charges for labor, per attached rate table shown in Exhibit “B” and direct expenses, but the total of all payments shall not exceed $112,596 and may be less than the estimated amount.
B. During the progress of work covered by this agreement, partial payments may be made to the ENGINEER monthly. The progress billings shall be supported by documentation acceptable to the City Engineer which shall include a project Gantt chart or other suitable progress chart indicating progress on the PROJECT and a record of the time period to complete the work, the time period elapsed, and the time period that remains to complete the work.
C. When requested by the CITY, the ENGINEER will enter into a Supplemental Agreement for additional services related to the PROJECT such as, but not limited to: 1. Consultant or witness for the CITY in any litigation, administrative hearing, or
other legal proceedings related to the PROJECT. 2. Additional services not covered by the scope of this agreement. 3. Administration related to this PROJECT 4. A major change in the scope of services for the PROJECT.
If additional work should be necessary, the ENGINEER will be given written notice by the CITY along with a request for an estimate of the increase necessary in the not-to-exceed fee for performance of such additions. No additional work shall be performed nor shall additional compensation be paid except on the basis of a Supplemental Agreement duly entered into by the parties.
V. THE PARTIES HERETO MUTUALLY AGREE:
A. That the right is reserved to the CITY to terminate this agreement at any time, upon written notice, in the event the PROJECT is to be abandoned or indefinitely postponed, or because of the ENGINEER’S inability to proceed with the work.
B. That the notes and other pertinent drawings and documents pertaining to the PROJECT shall become the property of the CITY upon completion or termination of the ENGINEER’S services in accordance with this agreement; and there shall be no restriction or limitation on their further use by the CITY. Provided, however, that CITY shall hold ENGINEER harmless from any and all claims, damages or causes of
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action which arise out of such further use when such further use is not in connection with the PROJECT.
C. That the services to be performed by the ENGINEER under the terms of this agreement are personal and cannot be assigned, sublet or transferred without specific consent of the CITY.
D. In the event of unavoidable delays in the progress of the work contemplated by this agreement, reasonable extensions in the time allotted for the work will be granted by the CITY, provided, however, that the ENGINEER shall request extensions, in writing, giving the reasons therefor.
E. It is further agreed that this agreement and all contracts entered into under the provisions of this agreement shall be binding upon the parties hereto and their successors and assigns.
F. Neither the CITY’S review, approval, or acceptance of, nor payment for, any of the work or services required to be performed by the ENGINEER under this agreement shall be construed to operate as a waiver of any right under this agreement or any cause of action arising out of the performance of this agreement.
G. The rights and remedies of the CITY provided for under this agreement are in addition to any other rights and remedies provided by law.
It is specifically agreed between the parties executing this contract, that it is not intended by any of the provisions of any part of this contract to create the public or any member thereof a third party beneficiary hereunder, or to authorize anyone not a party to this contract to maintain a suit for damages pursuant to the terms or provisions of this contract.
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IN WITNESS WHEREOF, the CITY and the ENGINEER have executed this agreement as of the date first written above. BY ACTION OF THE CITY COUNCIL ______________________________________
Brandon J. Whipple, Mayor SEAL: ATTEST: ____________________________________________ Karen Sublett, City Clerk APPROVED AS TO FORM: ___________________________________________ Jennifer Magaña, City Attorney
BURNS & MCDONNELL ENGINEERING COMPANY, INC.
____________________________________ Darin Brickman, Vice President
ATTEST:
____________________________________
tdamfnhn236
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EXHIBIT ''A"
REVISED NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY/AFFIRMATIVE ACTION PROGRAM REQUIREMENTS STATEMENT FOR
CONTRACTS OR AGREEMENTS
CITY OF WICHITA, KANSAS WATER SUPPLY and TREATMENT
2018 ASR Accounting Model & Annual Report During the term of this contract, the contractor or subcontractor, vendor or supplier of the City, by whatever term identified herein, shall comply with the following Non-Discrimination - Equal Employment Opportunity/Affirmative Action Program Requirements:
A. During the performance of this contract, the contractor, subcontractor, vendor or supplier of the City, or any of its agencies, shall comply with all the provisions of the Civil Rights Act of 1964, as amended: The Equal Employment Opportunity Act of 1972; Presidential Executive Orders 11246, 11375, 11141; Part 60 of Title 41 of the Code of Federal Regulations; the Age Discrimination in Employment Act of 1967; the Americans with Disabilities Act of 1990 and laws, regulations or amendments as may be promulgated thereunder.
B. Requirements of the State of Kansas:
1. The contractor shall observe the provisions of the Kansas Act against Discrimination
(Kansas Statutes Annotated 44-1001, et seq.) and shall not discriminate against any person in the performance of work under the present contract because of race, religion, color, sex, disability, and age except where age is a bona fide occupational qualification, national origin or ancestry;
2. In all solicitations or advertisements for employees, the contractor shall include the
phrase, "Equal Opportunity Employer", or a similar phrase to be approved by the "Kansas Human Rights Commission";
3. If the contractor fails to comply with the manner in which the contractor reports to the
"Kansas Human Rights Commission" in accordance with the provisions of K.S.A. 1976 Supp. 44-1031, as amended, the contractor shall be deemed to have breached this contract and it may be canceled, terminated or suspended in whole or in part by the contracting agency;
4. If the contractor is found guilty of a violation of the Kansas Act against Discrimination
under a decision or order of the "Kansas Human Rights Commission" which has become final, the contractor shall be deemed to have breached the present contract, and it may be canceled, terminated or suspended in whole or in part by the contracting agency;
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5. The contractor shall include the provisions of Paragraphs 1 through 4 inclusive, of this Subsection B, in every subcontract or purchase so that such provisions will be binding upon such subcontractor or vendor.
C. Requirements of the City of Wichita, Kansas, relating to Non-Discrimination - Equal
Employment Opportunity/Affirmative Action Program Requirements:
1. The vendor, supplier, contractor or subcontractor shall practice Non-Discrimination - Equal Employment Opportunity in all employment relations, including but not limited to employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The vendor, supplier, contractor or subcontractor shall submit an Equal Employment Opportunity or Affirmative Action Program, when required, to the Department of Finance of the City of Wichita, Kansas, in accordance with the guidelines established for review and evaluation;
2. The vendor, supplier, contractor or subcontractor will, in all solicitations or
advertisements for employees placed by or on behalf of the vendor, supplier, contractor or subcontractor, state that all qualified applicants will receive consideration for employment without regard to race, religion, color, sex, "disability, and age except where age is a bona fide occupational qualification", national origin or ancestry. In all solicitations or advertisements for employees the vendor, supplier, contractor or subcontractor shall include the phrase, "Equal Opportunity Employer", or a similar phrase;
3. The vendor, supplier, contractor or subcontractor will furnish information and reports
reasonably required by the Department of Finance of said City for the purpose of investigation to ascertain compliance with Non-Discrimination - Equal Employment Opportunity Requirements. If the vendor, supplier, contractor, or subcontractor fails to comply with the manner in which he/she or it reports to the City in accordance with the provisions hereof, the vendor, supplier, contractor or subcontractor shall be deemed to have breached the present contract, purchase order or agreement and it may be canceled, terminated or suspended in whole or in part by the City or its agency; and further Civil Rights complaints, or investigations may be referred to the State;
4. The vendor, supplier, contractor or subcontractor shall include the provisions of
Subsections 1 through 3 inclusive, of this present section in every subcontract, subpurchase order or subagreement so that such provisions will be binding upon each subcontractor, subvendor or subsupplier.
5. If the contractor fails to comply with the manner in which the contractor reports to the Department of Finance as stated above, the contractor shall be deemed to have breached this contract and it may be canceled, terminated or suspended in whole or in part by the contracting agency;
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D. Exempted from these requirements are:
1. Those contractors, subcontractors, vendors or suppliers who have less than four (4) employees, whose contracts, purchase orders or agreements cumulatively total less than five thousand dollars ($5,000) during the fiscal year of said City are exempt from any further Equal Employment Opportunity or Affirmative Action Program submittal.
2. Those vendors, suppliers, contractors or subcontractors who have already complied
with the provisions set forth in this section by reason of holding a contract with the Federal government or contract involving Federal funds; provided that such contractor, subcontractor, vendor or supplier provides written notification of a compliance review and determination of an acceptable compliance posture within a preceding forty-five (45) day period from the Federal agency involved.
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Task TotalNo. Description Hours Task
Cost
1 Update Accounting Model with 2019 Data 96 $24,2952 Evaluate calibration of 2019 Accounting Model 32 $7,9983 Run 2019 Accounting Model 16 $4,3034 Analyze model data 92 $23,7155 Prepare 2019 Accounting Model & Annual Report for City review 124 $34,0386 Meetings to review model updates and results 20 $5,3127 Project Management and QA/QC 48 $12,934
Total - 2019 ASR Annual Accounting Report 428 $112,596
Exhibit B2019 ASR Annual Accounting Report
City of Wichita, Kansas
2019 Model Update Ann Rpt Cost Est - 032520.xlsx4/6/2020 Page 1 of 1 BURNS & MCDONNELL
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WICHITAKS1020.DOC
Schedule of Hourly Professional Service Billing Rates
Position Classification
Classification Level
Hourly Billing Rate
Technician*
6 $83.00
Assistant* 7 $96.00 8 $133.00
9 $156.00
Staff* 10 $181.00
11 $196.00
Senior 12 $221.00
13 $247.00
Associate 14 $254.00 15 $259.00 16 $262.00 17 $266.00
NOTES: 1. Position classifications listed above refer to the firm’s internal classification system for employee compensation.
For example, “Associate”, “Senior”, etc., refer to such positions as “Associate Engineer”, “Senior Architect”, etc. 2. For any nonexempt personnel in positions marked with an asterisk (*), overtime will be billed at 1.5 times the
hourly labor billing rates shown. 3. Project time spent by corporate officers will be billed at Level 17 rate plus 25 percent. 4. For outside expenses incurred by Burns & McDonnell, such as authorized travel and subsistence, and for services
rendered by others such as subcontractors, the client shall pay the cost to Burns & McDonnell. 5. A charge will be applied at a rate of $9.95 per labor hour for technology usage, software, hardware, printing &
reprographics, shipping and telecommunications. Specialty items are not included in the technology charge. 6. Monthly invoices will be submitted for payment covering services and expenses during the preceding month.
Invoices are due upon receipt. 7. The services of contract/agency and/or any personnel of a Burns & McDonnell subsidiary or affiliate shall be
billed to Owner according to the rate sheet as if such personnel is a direct employee of Burns & McDonnell. 8. The rates shown above are effective for services through December 31, 2020, and are subject to revision
thereafter.
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Agenda Item No. II-4a
City of WichitaCity Council Meeting
June 2, 2020
TO: Mayor and City Council
SUBJECT: Acquisition of a Temporary Construction Easement in the 12500 Block of West Pawnee for the Road Improvement Project, Pawnee - 119th to 135th Streets West (District IV)
INITIATED BY: Office of Property Management
AGENDA: Consent
Recommendation: Approve the acquisition.
Background: On August 19, 2019, the City Council approved funding for the design of improvements to Pawnee from 119th Street West to 135th Street West. This section of Pawnee Avenue is a narrow, two-lane asphalt mat roadway without sidewalks or a curb and gutter drainage system. The project calls for improving the roadway to provide a safer travel way. A curb and gutter system will be installed on the north side of the road, and a suitable shoulder on the other. A pedestrian walkway will be constructed on the north side of Pawnee, if the construction budget allows. The project impacts seven tracts.
Analysis: Tract six is a vacant parcel located in the 12500 block of West Pawnee. A temporary construction easement comprised of 2,240 square feet is required. The owner agreed to accept the estimated appraised value of $450, or $.20 per square-foot.
Financial Considerations: The funding source for the acquisitions is General Obligation bonds. A budget of $550 is requested. This includes $450 for the acquisition and $100 for administrative fees and recording fees.
Legal Considerations: The temporary construction easement agreement has been reviewed and approved as to form by the Law Department.
Recommendation/Action: It is recommended that the City Council approve the acquisition, authorize the budget and authorize the Mayor to sign any necessary documents.
Attachments: Temporary construction easement agreement, tract map, and aerial.
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Agenda Item No. II-4b
City of WichitaCity Council Meeting
June 2, 2020
TO: Mayor and City Council
SUBJECT: Partial Acquisition 11004 East Pawnee for the Pawnee Avenue - Webb Road to Greenwich Road Improvement Project (District II)
INITIATED BY: Office of Property Management
AGENDA: Consent
Recommendation: Approve the acquisition.
Background: On February 5, 2019, the City Council approved the funding for the design of improvements to Pawnee Avenue from Webb Road to Greenwich Road. This section of Pawnee Avenue is currently two-lane asphalt mat with bar ditches on each side of the roadway and no sidewalks. The project calls for improving the roadway to three lanes with curb and gutter and underground storm sewer. The design also includes a six-foot sidewalk on one side and a 10-foot multi-use path on the other side. The property at 11004 East Pawnee is improved as a single-family residence. The proposed acquisition at this parcel is both right-of-way and temporary construction easements. Mature landscaping is impacted by the project.
Analysis: The owner agreed to accept the estimated appraised value in the amount of $2,760 for the land impacted. This amount is comprised of $2,690, or $0.83 per square-foot for the right-of-way and $70 for the temporary construction easements. An additional $ 3,960 has been established as compensation for the cost to relocate and replace mature landscaping that will be damaged by the project. This amount is based on an estimate from a local nursery. The total cost of the acquisition at the subject property is $6,720.
Financial Considerations: The funding source for the acquisition is General Obligation bonds. A budget of $7,220 is requested. This includes $6,720 for the acquisition, and $500 for title work, closing costs, administrative fees and other miscellaneous costs.
Legal Considerations: The Law Department has approved the real estate agreement as to form.
Recommendation/Action: It is recommended that the City Council approve the acquisition, authorize the budget and authorize the Mayor to sign any necessary documents.
Attachments: Real estate agreement, tract map, and aerial.
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Agenda Item No. II-4c
City of WichitaCity Council Meeting
June 2, 2020
TO: Mayor and City Council
SUBJECT: Acquisition of a Temporary Construction Easement at 2145 South Bluff for the Bluff Court Sanitary Sewer Relocation Project. (District III)
INITIATED BY: Office of Property Management
AGENDA: Consent
Recommendation: Approve the acquisition.
Background: On November 5, 2019, the City Council approved funding for City-wide Distribution and Collection Mains Replacement Program. One such project is the replacement of the sanitary sewer main at Bluff Court. The Bluff Court main needs to be replaced due to erosion issues along Dry Creek. That part of the main to be replaced is located at 2117 Bluff Court; however, access to the work area is needed from the property at 2145 South Bluff. The subject property is improved with a single-family residence. The proposed temporary construction easement is comprised of 13,468 square feet and is located in the northern portion of the property’s yard. Mature landscaping will be impacted by the project in addition to a new guide wire arm will need to be installed on the power pole located at the proposed access point off South Bluff.
Analysis: The owner agreed to the estimated appraised value of $1,350, or $0.10 per square-foot for the proposed easement. The owner agreed to an additional $1,005 for the cost to replace and relocate mature landscaping together with the installation of a new guide wire arm affected by the temporary construction easement. These amounts are based on estimates from a local nursery and a quote from Evergy to perform the installation of the guide wire arm.
Financial Considerations: The funding source for the acquisitions is General Obligation bonds. A budget of $2,505 is requested. This includes $2,355 for the acquisition and $150 for administrative feesand recording fees.
Legal Considerations: The temporary construction easement agreement has been reviewed and approved as to form by the Law Department.
Recommendation/Action: It is recommended that the City Council approve the acquisition, authorize the budget and authorize the Mayor to sign any necessary documents.
Attachments: Temporary construction easement agreement, tract map, and aerial.
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Agenda Report No. II-5
City of WichitaCity Council Meeting
June 2, 2020
TO: Mayor and City Council
SUBJECT: Drug Enforcement Agency – 2020 High Intensity Drug Trafficking Area Task Force (HIDTA)
INITIATED BY: Wichita Police Department
AGENDA: Consent
Recommendation: Approve the 2020 grant award.
Background: The Wichita Police Department (WPD) has participated in the Drug Enforcement Agency – High Intensity Drug Trafficking Area (HIDTA) Task Force since 2002. The mission is to combat the manufacture and importation of methamphetamine and disrupt poly-drug trafficking organizations, thereby reducing the availability of illegal drugs and reducing itsimpact in this area. The Kansas Bureau of Investigation (KBI) is the fiscal agent for award proceeds to be distributed to state and local agencies participating in the Midwest HIDTA Task Force.
Analysis: The WPD has two years, January 1, 2020 – December 31, 2021 to spend the 2020grant award, which is retroactive. This award must be used before concurrent ones can be utilized. KBI will reimburse the City of Wichita for overtime and related expenses for personnel assigned to the task force. Currently, the WPD has two detectives designated to the HIDTATask Force.
Financial Considerations: The KBI will reimburse the WPD up to $109,524 for overtime and related expenses incurred by personnel assigned to the task force. There is no local match requirement.
Legal Considerations: The 2020 HIDTA award is outlined in the attached Memorandum of Understanding, which has been approved as to form by the Law Department.
Recommendations/Actions: It is recommended that the City Council approve the 2020 HIDTA grant award, Memorandum of Understanding and authorize the necessary signatures. This two-year grant covers 2020-2021.
Attachment: Memorandum of Understanding.
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Agenda Report No. II-6
City of WichitaCity Council Meeting
June 2, 2020
TO: Mayor and City Council
SUBJECT: Project Safe Neighborhoods (PSN) Grant
INITIATED BY: Wichita Police Department
AGENDA: Consent
__________________________________________________________________________________
Recommendation: Authorize the grant application and acceptance after awarded.
Background: The U.S. Department of Justice (DOJ) administers the Project Safe Neighborhoods (PSN) Grant through the Office of Justice Programs (OJP) under the Bureau of Justice Assistance (BJA). Awarded funds are used towards assisting jurisdictions in reducing crime and improving the functioning of the criminal justice system, specifically through support for innovative and evidence-based policing practices, more effective information sharing, and multi-agency collaboration. The Wichita Police Department is in partnership with the U.S. Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Wichita State University on Project Safe Neighborhood (PSN) to mitigate a rise in gun violence in the City of Wichita. In 2017, WPD reached out to the U.S. Attorney for the District of Kansas and inquired about partnering and reinitiating the PSN Program in Wichita. Both Wichita and Garden City, Kansas were selected as possible PSN sites and have been awarded funding.
Analysis: In 2001, the DOJ placed a priority on reducing gun violence throughout America. To accomplish this, PSN was created. The PSN initiative closely coordinates the work of federal, state, and local law enforcement with community and neighborhood organizations; its primary goals are decreasing gun violence in communities and increasing the number of gun crime prosecutions. Since its inception in May 2003, the PSN program has proven to be an invaluable tool to the City of Wichita and the WPD by enhancing efforts to remove dangerous criminals who use firearms to commit violent crimes. For several years, the WPD participated in the project, but after 2007, did not pursue the funding.
Recently WPD restored participation and interest in the PSN Program. The WPD will use the grant funding to create and foster safer neighborhoods through a sustained reduction in violent crime. The WPD is committed to developing evidence-based policing strategies to reduce gun violence in thecommunity. The effectiveness of the program depends on the ongoing coordination, cooperation, and partnerships of local, state, and federal law enforcement agencies and the communities they serve.
Financial Considerations: Due to a rise in violent crimes in Wichita, the DOJ deemed Wichita as a community that would benefit from PSN funding. It is estimated that $149,300 will be available for subgrant awards by the DOJ. These funds will be prioritized to the Wichita Police Department, Garden City Police Department, and Wichita State University. Thirty percent of awarded funds are to be used for gang enforcement and the rest of funds can be used for travel and training, overtime pay and related fringe benfits, and protective equipment. There is no required match for this funding. 287
Legal Considerations: None
Recommendations/Actions: It is recommended that the City Council approve the grant application and authorize the necessary signatures upon award.
Attachments: None
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Agenda Report No. II-7
City of WichitaCity Council Meeting
June 2, 2020
TO: Mayor and City Council
SUBJECT: Federal Coronavirus Emergency Supplemental Funding Program -Kansas Solicitation
INITIATED BY: Wichita Police Department
AGENDA: Consent
Recommendation: Approve the grant application and authorize the necessary signatures if awarded.
Background: The Federal Coronavirus Emergency Supplemental Funding (CESF) Program provides funding for Kansas to prevent, prepare for, and respond to the Coronavirus. The Department of JusticeCESF Program is being administered by the Kansas Governor’s Grant Program.
Analysis: The Wichita Police Department (WPD) will use funds from the CESF grant to purchase personal protection equipment (PPE). Requested PPE includes sanitizing stations, towels for the portable sanitizing stations, and forehead thermometers to help monitor the health of employees to ensure best practices in Coronavirus prevention. Additionally, requested are stanchion barriers, and portable plexiglass screens. Also, police vehicles and facilities will need cleaning, and a request of funds includesthe purchasing of cleaning supplies and equipment to clean and sanitize WPD vehicles, City Hall and WPD facilities.
Studies show that reusable respirator filtered face masks are more effective in the prevention of virus spreading than N95 masks. When properly worn, they form a complete seal. The respirator face masks filter out 98, 99, or 100 % of large and microscopic airborne particles. They are also more cost-effective because the masks can be reused and only require the filters to be replaced. They are designed to be reusable, can be adjustable, are fit tested, and have a user seal check. The mask does require some maintenance and must be cleaned, disinfected, and stored after each patient interaction or incident. Funds from the CESF grant will allow WPD to purchase the reusable filtered masks.
Reports have shown that social distancing helps minimize the likelihood of contracting the Coronavirus. The City of Wichita developed a program whereby certain department members who perform their work tasks on a computer can work from home, providing they have access to a computer and the internet. A high number of staff are working remotely from home, and the WPD’s needs for communications have increased. Daily and/or weekly phone conferences and Microsoft Team meetings have significantly increased due to maintaining social distancing. The employee working from home is granted access to the City of Wichita computer network and with a CITRIX account to access their work computer desktop. Currently, there are not enough laptops. The WPD will purchase laptops for these employees working from home, where there is no budget available for these additional computers. Grant funding will provide the funding needed for the laptops and ongoing costs associated with the use of them.
The Coronavirus pandemic has altered the way WPD employees are handling their required training. Currently, the WPD’s In-Service Training Section consists of a police sergeant and a data entry clerk. Per the requirement of the Kansas Commission on Peace Officers Standards and Training (KS-CPOST), all continuing education credits (CEU) must be maintained by the agency commissioning the officer. The WPD has 673 commissioned law enforcement personnel that enter CEU’s into SharePoint. SharePoint is very limited in its search capabilities and does not provide an appropriate platform for CEU entry. In
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2019, a glitch between the Microsoft software and SharePoint occurred, resulting in a data dump of WPD’s training history. The information was partially saved, but much of it had to be manually placed back into the system, causing an increase in overtime for the data entry clerk. With all the issues WPD has experienced with SharePoint and the increasing workload due to the Coronavirus and online training, it has become apparent that the WPD needs to move to a software platform, ACADIS. ACADIS is designed to track CEU’s and will reduce overtime and allow for better communication for the officers to track and know what CEU’s are available and are required of them to obtain. The software will also push out policy updates and provide confirmation digitally when the information has been reviewed. With the increase in online web-based training, the Law Enforcement Training Center data entry has increased four times more than last year at this time. This software will reduce the loss of data being input into SharePoint. Additionally, ACADIS is also the software being utilized by the Kansas Highway Patrol and the Kansas Law Enforcement Training Center.
To strengthen social distancing, the Wichita Fire Department (WFD) is requesting touch screen displays, which would enhance the WFD’s response to the COVID-19 pandemic in several ways. The large-format touch screens would strengthen the use of social distancing by making training, information sharing, and situational awareness accessible in the WFD’s widely distributed locations. Additionally, the WFD has no integrated technological solution for tracking or delivering medical and fire training, policy management, communications management, or daily equipment checks. At best, these items are tracked manually and often anecdotally. The Coronavirus pandemic has added to the WFD’s difficulties providing and recording training of 420 firefighters. An integrated training system coupled with interactive monitors will allow the WFD to provide classroom-type training remotely to all firefighters, keeping everyone safe. Tactics and strategies are other areas where the WFD is falling short in training due to these same issues. An integrated training system would be a force multiplier in both medical and firefighter training. The interactive display is capable of using Microsoft products and would have the ability to link all 22 WFD fire stations to train employees simultaneously.
Financial Considerations: The CESF Funding request is for $459,854. There is no local match required.WPD funding will provide PPE for employees and citizens entering City Hall and WPD facilities, laptops for WPD Investigations, and ACADIS Training software for two years. Additionally, WFD funding includes interactive training displays and integrated online training solutions. At the end of the grant period the WPD and WFD will look at incorporating ongoing expenses into the Police and Fire General Fund budget or seek additional grant funding.
Legal Considerations: None.
Recommendations/Actions: It is recommended that the City Council approve the grant application and authorize the necessary signatures if awarded.
Attachments: None.
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Agenda Report No. II-8
City of WichitaCity Council Meeting
June 2, 2020
TO: Mayor and City Council
SUBJECT: Strategies for Policing Innovation Grant FY 2020 Competitive Grant Solicitation
INITIATED BY: Wichita Police Department
AGENDA: Consent
Recommendation: Approve the grant application and authorize the necessary signatures.
Background: The US Department of Justice administers the Strategies for Policing Innovation (SPI) Grant through the Office of Justice Programs under the Bureau of Justice Assistance (BJA). Awardedfunds to assist jurisdictions in reducing crime and improving the functioning of the criminal justice system, specifically through support for innovative and evidence-based policing practices, more effective information sharing, and multi-agency collaboration.
Analysis: The Wichita Police Department (WPD) will use the SPI grant to create a unit, specifically funding two police officer positions. Emphasis will be on identifying underlying issues or sources that contribute to aggravated assaults in Wichita. The WPD will work closely with established law enforcement and community partners to develop and deploy prevention and enforcement strategies to reduce aggravated assaults in the community. Well-established modeling of successful programs such as Operation Cease Fire, Crime Gun Intelligence Centers, and Project Safe Neighborhoods will be a key priority.
The grant-funded officer positions will conduct criminal debriefings, interpret domestic violence lethality assessments, and seek or expand community partnerships to identify and prioritize crime trends.
Before the unit is created, Wichita State University will assist in the development of appropriate operational guidelines and protocols for the program. These guidelines will ensure the unit is adhering to the principals of fair and impartial policing and protecting individual privacy rights.
Financial Considerations: The WPD is applying for $700,000 through the 2020 SPI grant, which is the maximum amount per award. BJA expects to make 10 awards, and there is no local match required. The funding will provide two new full-time police officer positions for three years. Additionally, the Department will award $50,000 to Wichita State University as a sub-recipient of the grant for evaluation services during the three-year grant period. Other defined program expenses include travel and training, as required by the grant solicitation, and overtime. It is anticipated that ongoing costs will be incorporated into the Police general fund budget or additional grant funding will be identified if the program proves successful.
Legal Considerations: None.
Recommendations/Actions: It is recommended that the City Council approve the grant application and authorize the necessary signatures if awarded.
Attachments: None. 291
SECOND READING ORDINANCES FOR JUNE 2, 2020 (FIRST READ MAY 26, 2020)
a. ORDINANCE NO. 51-213AN ORDINANCE INCLUDING AND INCORPORATING CERTAIN BLOCKS, PARCELS, PIECES AND TRACTS OF LAND WITHIN THE LIMITS AND BOUNDARIES OF THE CITY OF WICHITA, KANSAS.Case No. A20-04
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Agenda Report No. II-10City of Wichita
City Council MeetingJune 2, 2020
TO: Wichita Housing Authority Board
SUBJECT: Ratify the Adoption of Statutory and Regulatory Waivers
INITIATED BY: Housing and Community Services Department
AGENDA: Wichita Housing Authority Board (Consent)
Recommendation: Ratify the adoption of U.S. Department of Housing and Urban Development’s (HUD)Coronavirus Aid, Relief and Economic Security (CARES) Act Statutory and Regulatory Waivers for Public Housing Agencies including the Wichita Housing Authority (WHA).
Background: Under the authority of the Coronavirus Aid, Relief and Economic Security (CARES) Act, HUD is waiving laws and regulations and establishing alternative requirements for the Public Housing and Housing Choice Voucher (HCV) programs. The waivers, found in Notice PIH 2020-05: COVID-19, Statutory and Regulatory Waivers for Public Housing, Housing Choice Voucher, Indian Housing Block Grant and Indian Community Development Block Grant programs, Suspension of Public Housing Assessment System and Section Eight Management Assessment Program, provide administrative flexibilities and relief to public housing agencies (PHAs) in response to the COVID-19 national emergency. Use of the waivers is at the discretion of the PHA however, HUD strongly encourages agencies to utilize the waivers and alternative requirements in order to keep public housing and HCV programs operational to the extent practicable. HUD recognizes that many PHA staff are working remotely during these times and have limited access to clients and information. HUD also encourages limited person-to-person interaction or social distancing during this time.
Analysis: The waivers and alternative requirements are necessary for the safe and effective administration of the Public Housing and HCV programs. On April 10, 2020, the issue date of Notice PIH 2020-05, HUD made the waivers available for immediate implementation. The waivers are consistent with the purposes described under the CARES Act, to prevent, prepare for, and respond to COVID-19. PHAs did not need to notify HUD as to which waivers they chose to implement, however they do need to record dates and circumstances regarding which waivers they apply to their programs. The attached table shows which waivers and adoption dates the WHA selected. Residents and owners must be notified about the change of protocol. PHAs must explain the anticipated impacts of the waiver(s) to their clients and partners.
On April 14th the WHA posted a table from Notice PIH 2020-05 on the Housing and Community Services website showing the waivers it adopted on April 15, 2020. With this flexibility, HUD strongly encourages PHAs to continue using available funding to house families, keep families in their homes and conduct critical operations that can be done remotely and safely. The WHA adopted the waivers listed below.
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PH and HCV- 1: PHA 5-Year and Annual Plan. PHAs may submit their annual plans later than normal. PHA’s including the WHA with a 12/31 year end will be able to submit their plan no later than 1/16/2021 (75 days before 4/1/2021), whereas it is usually 75 days prior to 12/31.
PH and HCV–2: PHAs may delay annual reexaminations of income and family composition until 12/31.
PH and HCV-3: Annual reexamination income verification. HUD is waiving the requirements to use income hierarchy, including the use of Enterprise Income Verification (EIV). This waiver will allow PHAs to consider self-certification as the highest form of income verification. PHAs that implement this waiver will be responsible for addressing material income discrepancies that later may arise.
PH and HCV-4: Interim reexaminations. Waives the requirement to use the income verification requirements, including EIV, for interim reexaminations.
PH and HCV-5: EIV system monitoring. Waives the mandatory EIV monitoring requirements.
PH and HCV-6: Family Self-Sufficiency Contract of Participation. HUD considers COVID-19 a good reason to extend a family’s participation contract in the Family Self-Sufficiency program.
PH and HCV–7: Waiting List. HUD has waived the requirement to publish a notification in the local newspaper when opening and closing the waiting list.
HQS-1: Initial Inspection. Changes initial inspection requirements allowing the owner to self-certify that there are no life-threatening deficiencies. The PHA must inspect the unit no later than October 31, 2020.
HQS-3: Non-life threatening HQS – Initial unit approval. This waiver allows an extension of up to 30-days for the owner to make repairs of non-life threatening conditions.
HQS-4: Initial HQS – Alternative inspections. Under the initial HQS alternative inspection option, housing assistance payments may commence based on the owner’s certification that there are no life-threatening deficiencies. When self-certification is used the PHA must inspect the unit no later than October 31, 2020.
HQS-5: Biennial Inspections. This waiver allows for a delay in biennial inspections. All delayed inspections must be completed as soon as reasonably possible but no later than October 31, 2020.
HQS-6: Interim Inspections. Under this waiver the PHA is not required to conduct interim inspections, but requires an alternative inspection method. Repairs must be verified by an alternative method as well.
HQS-9: HQS Quality Control (QC). This waiver provides for a suspension of the QC sampling requirement.
HQS-10: HQS Space and Security. Waives the requirement that each dwelling unit have at least one bedroom or living/sleeping room for each two persons.
HQS-11: Homeownership HQS. Waives the requirement to perform an initial HQS inspection in order to begin making homeownership assistance payments. In this situation, the family is required to obtain an independent professional inspection.
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HCV-1: Administrative Plan. Under this waiver HCV Administrative Plan revisions can be temporarily revised without Board approval, however changes must be formally adopted as soon as practically possible.
HCV-2: PHA Oral Briefing. Families selected from the waiting must receive an oral briefing. HUD is allowing PHAs to brief new families by alternative means including webcasts, videos, or expanded information packet. All communication must adhere to Section 504 and ADA and provide effective communication and equal participation of each family member, including those with vision, hearing and other communication-related disabilities and ensures meaningful access for persons with limited English proficiency.
HCV-3: Term of Voucher – Extensions of Term. HUD is allowing PHAs to extend the initial voucher term even if it is not in accord with the administrative plan.
HCV-4: Approval of Assisted Tenancy – when the HAP contract is executed. PHAs may execute HAP contracts after the regulatory 60-day limit of the lease term, but no longer than 120-days past the beginning of the lease term. PHAs must not pay HAP to owner until a HAP contract is executed.
HCV-5: Absence from Unit. The regulation requires that a family member may not be absent from their unit for more than 180 consecutive calendar days for any reason. HUD is waiving this requirement to allow the PHA, at its discretion, to continue housing assistance payments and not terminate the HAP contract due to extenuating circumstances such as hospitalization, extended stays at nursing homes, and caring for family members.
HCV-6: Automatic Termination of the HAP Contract. HAP contracts terminate automatically when a client’s income increases to a level that reduces the housing assistance payment to $0 for 180 days. PHA’s are required to terminate the HAP contract 180 days after the last housing assistance payment is made. The PHA, at its discretion may extend the period beyond 180 days, but may not extend it beyond December 31, 2020.
HCV-8: Utility Allowance Schedule. Provides for delay in updating utility allowance schedule.
PH-1: Fiscal Closeout of Capital Grant Funds. Extensions of Actual Development Cost Certificate (ADCC) and Actual Modernization Cost Certificate (AMCC).
PH-2: Total Development Costs (TDC). Waives the TDC and Housing Construction Cost limits permitting approval of amounts in excess of published TCD by 25 percent to 50 percent on a case-by-case basis.
PH-4: Admissions and Continued Occupancy Policy (ACOP). Adoption of Tenant Selection Policies. HUD is allowing PHAs to expedite revisions to the ACOP without formal Board approval. However, the changes must be formally adopted as soon as practicable following June 30, 2020, but no later than July 31, 2020.
PH-5: Community Service and Self-Sufficiency Requirement (CSSR). HUD is waiving this requirement and is alternatively suspending the community service and self-sufficiency requirement. If a PHA adopts this waiver, tenants will not be subject to the CSSR until the family’s next annual reexamination.
PH-6: Energy Audits. Temporarily suspends energy audits. PHAs are required by this regulation to complete an energy audit for each public housing property not less than once every five years. HUD is
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waiving this requirement and is alternatively suspending the performance of the audits for one year for those that were due before December 31, 2020.
PH-7: Over-Income Families. HUD is waiving the requirement for PHAs to terminate over-income families or charge them an alternative rent. PHAs may allow families to remain in their units and continue to pay the same rental amount until their next annual recertification that would impact the family.
PH-9: Utility Allowance. Provides for a delay in updating the utility allowance schedule.
PH-10: Tenant Notifications. HUD is waiving the requirement to give 30-day notice to impacted tenant families for changes to policies and rules however, advance notice still applies for tenant-related charges. The alternative requirement is that PHAs must still notify impacted families within 30-days of the change.
PH-11c: Financial Reporting. Allows for extensions of financial reporting deadlines.
PH-12a: Form HUD 50058. Waives the requirement to file the form within 60 days. Alternative requirement allow PHAs to submit within 90 days of the effective date of action.
PH-12c: Deadline for Reporting Operating and Capital Fund Expenditures. The waiver provides a one-year extension.
HUD can extend the period of availability for these waivers if it sees that the need is warranted, however in most cases waivers will expire at the end of the year.
Financial Considerations: There is no impact to the General Fund with this action.
Legal Considerations: The Law Department has reviewed the proposed PHA statutory and regulatory waivers and has approved as to form.
Recommendation/Action: It is recommended that the Wichita Housing Authority Board ratify the adoption of U.S. Department of Housing and Urban Development’s (HUD) Coronavirus Aid, Relief and Economic Security (CARES) Act Statutory and Regulatory Waivers for the Wichita Housing Authority.
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