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Legislation #: 160125 Introduction Date: 2/18/2016
Type: Ordinance Effective Date: 3/4/2016
Sponsor: COUNCILMEMBER WAGNER
Title: Authorizing the Director of the General Services Department to execute a Lease with the State of Missouri and a $1,986,000,00 Property Management Agreement with Homkor of Missouri, Inc. (“Homkor”) for the future building management and maintenance of the Kansas City Assessment Triage Center located in at 2600 E. 12th Street; authorizing Homkor to enter into a contract with Rau Construction for the renovations of the building; re-appropriating $1,505,000.00 from the KC Streetcar System Phase 2 project account to the Assessment Triage Center ($1,500,000.00) and Bond Issuance Expense ($5,000.00) accounts in Fund No. 3432, the Series 2014D Special Obligation Anticipation Fund; appropriating $1,000,000.00 from Unappropriated Fund Balance of Fund No. 2330, the Health Levy Fund for the Assessment Triage Center project account; reducing appropriation in the amount of $3,675,196.60 in Fund No. 3432, the Series 2014D Special Obligation Anticipation Fund and transferring that amount in Fund No. 3090, the Capital Improvements Fund to pay for debt service on the Series 2014D Special Obligation Bond Anticipation Bonds; authorizing the Director of Finance to close project accounts upon completion; designating requisitioning authorities; approving bond counsels in connection with the repurposing of a portion of the proceeds of the Series 2014 D Bonds, defined below; and recognizing an accelerated effective date.

Legislation History
DateMinutesDescription
2/19/2016 Filed by the Clerk's office
2/18/2016 Referred to Finance and Governance Committee
2/24/2016 Hold On Agenda (3/2/2016)
3/2/2016 Advance and Do Pass as a Committee Substitute, Debate
3/3/2016 Passed as Substituted

View Attachments
FileTypeSizeDescription
160125.pdf Authenticated 364K Authenticated
property managemenet contract.docx Contracts 102K property management contract
exhibit b.docx Exhibit 43K Exhibit B

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 160125

 

Authorizing the Director of the General Services Department to execute a Lease with the State of Missouri and a $1,986,000,00 Property Management Agreement with Homkor of Missouri, Inc. (“Homkor”) for the future building management and maintenance of the Kansas City Assessment Triage Center located in at 2600 E. 12th Street; authorizing Homkor to enter into a contract with Rau Construction for the renovations of the building; re-appropriating $1,505,000.00 from the KC Streetcar System Phase 2 project account to the Assessment Triage Center ($1,500,000.00) and Bond Issuance Expense ($5,000.00) accounts in Fund No. 3432, the Series 2014D Special Obligation Anticipation Fund; appropriating $1,000,000.00 from Unappropriated Fund Balance of Fund No. 2330, the Health Levy Fund for the Assessment Triage Center project account; reducing appropriation in the amount of $3,675,196.60 in Fund No. 3432, the Series 2014D Special Obligation Anticipation Fund and transferring that amount in Fund No. 3090, the Capital Improvements Fund to pay for debt service on the Series 2014D Special Obligation Bond Anticipation Bonds; authorizing the Director of Finance to close project accounts upon completion; designating requisitioning authorities; approving bond counsels in connection with the repurposing of a portion of the proceeds of the Series 2014 D Bonds, defined below; and recognizing an accelerated effective date.

WHEREAS, Kansas City, Missouri in conjunction with the State of Missouri is creating an Assessment Triage Center at 2600 E. 12th Street in Kansas City Missouri, to more efficiently serve people with a mental illness or substance use disorder by getting them off the streets and into a treatment setting (“Assessment Center”); and

 

WHEREAS, the Office of the Missouri Attorney General (“Attorney General”) and Ascension Health, a Missouri nonprofit corporation (“Ascension”) entered into a Settlement Agreement dated October 5, 2015 (“Settlement Agreement”) by which Ascension agreed to donate $20,000,000.00 (“Donation”), in equal annual installments beginning on March 15, 2016, and continuing each March 15th thereafter until the donation has been paid in full by March 15, 2025 (“Donation Period”), to be used to fund the direct operational expenses of a pilot project to provide the Kansas City community with an alternative, safe resource for triage, stabilization and referral for persons presenting a psychiatric or substance abuse-induced crisis (“Program”) which is intended to be operated out of the Assessment Center; and

 

WHEREAS, the Attorney General, Ascension, the State of Missouri by and through its Departments of Mental Health and Administration (collectively referred to as the “State”), and City by and through the Court Administrator of Municipal Court (“Court Administrator”) desire to enter into a Memorandum of Understanding to implement the Settlement Agreement through the creation of the Assessment Center, and its future operations funded by the Donation; and

 

WHEREAS, the existing building owned by the State will be leased to the City and then modified to have evaluation space, waiting areas, offices, restrooms, showers, eating areas, and patient rooms for evaluation periods up to 23 hours, pending an analysis and recommendation by the health specialist as to the appropriate next step for the patients to get the help they need; and

 

WHEREAS, the Court Administrator of Municipal Court (“Court Administrator”) will contract with a design firm and purchase furniture and equipment for the Assessment Center; and

 

WHEREAS, the Court Administrator is separately negotiating operational agreements as deemed necessary and appropriate with ReDiscover, a Missouri nonprofit corporation, intended to carry out the Program with the resources from the Donation; and

WHEREAS, Homkor will manage the construction of the renovations and contract with RAU Construction, as a sole source contract, but Rau Construction will competitively bid the work to sub-contractors, following all the applicable City ordinances and State requirements including but not limited to women and minority participation goals, Prevailing Wage, and payment bonds; and

 

WHEREAS, Homkor will provide building management and maintenance, and security for the Assessment Center and the office area occupied by the State of Missouri Offices, including building operation and maintenance, custodial, site work, and snow removal; and

 

WHEREAS, the City previously issued its Special Obligation Bond Anticipation Bonds (Streetcar System Expansion Project), Series 2014D (the “Series 2014D Bonds”) pursuant to the Bond Issuance and Purchase Agreement dated as of June 1, 2014, as amended by the First Amendment to Bond Issuance and Purchase Agreement dated as of January 1, 2015 (as amended, the “Bond Issuance Agreement”), by and between the City and PNC Bank, National Association, as Purchaser of the Series 2014D Bonds; and

 

WHEREAS, the City has determined that it is in the best interests of the City to repurpose a portion of the proceeds of the Series 2014D Bonds to renovate and improve the Assessment Center, and to designate the Assessment Center project as a General City Project as defined in the Bond Issuance Agreement; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the City hereby designates the Assessment Center project as a General City Project pursuant to the Bond Issuance Agreement, and authorizes the repurposing of proceeds of the Series 2014D Bonds to finance the costs of such project. The costs of such project are deemed to be:

 

Project Design/Construction

Construction of Capital Improvements: $1,700,000.00

Architectural Design Fees: $200,000.00

Furniture and Equipment: $250,000.00

Project Contingency: $64,000.00

 

Building and Construction Management and Maintenance

Building Manager Service Annualized Fee $36,000.00

Service Contracts: $250,000.00

 

Section 2. That the Director of the Department of General Services (“Director”) is hereby authorized to further negotiate and execute a Property Management Agreement between the City of Kansas City, Missouri and Homkor for the renovation of the Assessment Center located in at 2600 E. 12th Street, at a construction expense of $1,700,000.00 for the capital improvements, permitting Homkor to enter into service contracts not to exceed $250,000, including construction management oversight, and the subsequent physical management and maintenance of and security services for the Assessment Center for a fee of $3,000.00 monthly from and after the date of the issuance of the occupancy permit, which Property Management Agreement shall be substantially in the form of Exhibit A attached hereto for an initial term through April 30, 2017 (“Agreement”), with the final signed form to be maintained on file with the Director.

 

Section 3. That it is in the City’s best interest to authorize Homkor to sole source contract with Rau Construction, as the general contractor of such construction work for the capital improvements of the Assessment Center, in accordance with all terms and provisions of the Agreement.

 

Section 4. That the Director is hereby authorized, but not obligated, to execute an extension or a new agreement with Homkor for the subsequent period of May 1, 2017 through April 30, 2018, subject to availability of appropriated funds from the City for a monthly payment not to exceed the lesser of (i) $3,000.00 or (ii) the reasonable amount attributable to services provided as determined by the Director, or such longer term deemed appropriate by such Director, provided such extended term agreement shall not exceed the remaining period for which installments of the Donation are to be made being the Donation Period.

 

Section 5. Alternatively, subject to appropriation of funds, the Director, may enter into a similar agreement with another entity selected to perform such services provided for in Section 4 through competitive bidding process of behalf of the City. Such future agreements will be for the building management and maintenance and security for the Assessment Center and the State of Missouri offices in the northwest wing of the structure including building maintenance, custodial, site work, and snow removal at the Assessment Center in substantial form to the Agreement, with the exception of the modification of provisions related to compensation, and Article XI which is related to the initial construction management function, as it will no longer needed upon completion of renovations. Any agreement entered into effective May 1, 2018 or thereafter shall be pursued in an open and competitive bidding process for such terms and conditions then considered reasonable. This authority will lapse and no longer be in effect at the end of the Donation Period.

 

Section 6. That the Director is hereby authorized to further negotiate and execute a Lease with the State of Missouri for the property to be commonly known as 2600 E. 12th Street, Kansas City, Missouri, substantially in the form of Exhibit B attached hereto (“State Lease”), with renewal options exercisable at the discretion of the City, subject to availability of appropriations, with the final signed form to be maintained on file with the Director.

 

Section 7. That the appropriation in the following account of Fund No. 3432, the Series 2014D Special Obligation Anticipation Fund is hereby reduced by the following amount:

 

AL-3432-898044-B KC Streetcar System Phase 2 $3,675,196.60

 

Section 8. That the sum of $3,175,196.60 is hereby appropriated from the Unappropriated Fund Balance of Fund No. 3432, the Series 2014D Special Obligation Anticipation Fund, to the following accounts:

 

AL-3432-078027-B-07001209 Assessment Triage Center $1,500,000.00  

AL-3432-129998-903090 Transfer to Capital Improvements

Fund 2,170,196.60

AL-3432-129620-B Bond Issuance Expense 5,000.00

$3,675,196.60

 

Section 9. That the sum of $1,000,000.00 is hereby appropriated from the Unappropriated Fund Balance of Fund No. 2330, the Health Levy Fund, to the following account:

 

16-2330-078027-B-07001209 Assessment Triage Center $1,000,000.00  

 

Section 10. That the revenue in the following account of Fund No. 3090, the Capital Improvements Fund is hereby estimated in the following amount:

 

16-3090-120000-503432 Transfer from 2014D Special Obl $2,170,196.60

 

Section 11. That the sum of $2,170,196.60 is hereby appropriated from the Unappropriated Fund Balance of Fund No. 3090, the Capital Improvements Fund, to the following account:

 

16-3090-899610-G Debt Service Streetcar $2,170,196.60

 


Section 12. That the Director is hereby designated as requisitioning authority for Account Nos. AL-3432-078027 and AL-16-2330-078027 and the Director of Finance is hereby designated as requisitioning authority for Account Nos. AL-3432-129998-903090, AL-3432-129620 and 16-3090-899610.

 

Section 13. That the City Manager is authorized for the fiscal year commencing May 1, 2017, and each fiscal year thereafter that the City remains a party to the Lease, to allocate any costs under the Lease and Property Management Agreement not covered by the quarterly installments from the Donation under the Settlement Agreement or other contributions or payments from area hospitals (“Non-City Funding”), from one or more of the following sources: Health Levy Fund, the Community Development Block Grant Program, and the City wide allocation within the Capital Improvements Program administered by the Public Improvements Advisory Committee (“PIAC”), and shall not rely exclusively upon the Health Levy as the sole funding source for the gap, if any, created by a shortfall from Non-City Funding and the costs to maintain, secure and operate the Assessment Center; provided, however, any such allocation shall be limited by eligibility due to regulations applied to such funding sources.

 

Section 14. Notwithstanding the provisions of Section 13 above, for fiscal year 2017-18, $100,000 will be allocated from the City Council District 1 designated PIAC funds to the maintenance of capital improvements at the Assessment Center.

 

Section 15. That the Director of Finance is hereby authorized to close project accounts upon project completion and return the unspent portion of the appropriation to the Fund Balance from which it came.

 

Section 16. That the Court Administrator is authorized to enter into a contract for design services for the construction work for the Assessment Center with Wellner Architects, which consideration in the aggregate shall not exceed the amount of $200,000.00, with the final signed form to be maintained on file with the Court Administrator.

 

Section 17. That the Court Administrator is authorized to purchase furniture, equipment, and furnishings for the Assessment Center for an aggregate amount not to exceed $250,000.00 through an open and competitive bidding process.

 

Section 18. That the City approves Kutak Rock LLP and Hardwick Law Firm LLC to serve as Co-Bond Counsel for the City in connection with the repurposing of a portion of the proceeds of the Series 2014D Bonds as described in this ordinance.

 

Section 19. That this ordinance is recognized as having an accelerated effective date within the provisions of Section 503 of the City Charter in that it appropriates money, and shall take effect in accordance with that section.

 

____________________________________

 

I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.

 

 

______________________________

Randall J. Landes

Director of Finance

 

Approved as to form and legality:

 

 

______________________________

Amelia McIntyre

Assistant City Attorney