Director of Aviation - Regular Meeting

Welcome to TINL. I'm Kevin O'Neill, the chair.

Lindsey Prench, 2nd District at large.

Eric Prench, 4th District. Jonathan?

Jonathan Duncan, 6th District.

Staff.

By the Ross City Clerk's Office.

Place of mind, assistant city manager.

Mario, you're next. Our

year.

We Welcome to our TINO. Have We'll have the a first, 260461. Red?

Yes. 260461. Authorizing the director of water services to execute a $246,085 facility repair and maintenance contract with Atlas for the river water intake traveling screens rehabilitation at the water treatment plant, renewal number two project, and recognizing this ordinance is having an accelerated effective date.

Good morning, chair O'Neill and council members. David Poirier. I'm deputy director of engineering at Water Services. And I got Blake Anderson. He's a facilities manager of engineering. Have a very of twenty

twenty

we projects

of have.

We have new

And

leaves, debris, things like that, can come up with a very screen. This screen basically removes that material, allows us to return it to the river. Water supply has one extra screen, so every year or so we send that out. It gets rebuilt, rehabbed, returned, replaced. The first

COVID-nineteen

the the

No We public testimony.

I would had entertain a a motion.

Mr. Chair, I move that ordinance number two hundred sixty thousand four and sixty one be reported out of committee with

recommendation in advance if

you pass.

Second.

All those in favor? Aye. Aye. All those opposed? Ordinance passes. Thank you. Blake?

260462, authorizing the director of water services to execute a $13,425,900 design build contract with Heartland Construction for the Blue River Wastewater Treatment Plant primary site power p n project authorizing a maximum expenditure of 14,000,007 Board

Board of of

the

to

And

we're

starts the power delivery to the wastewater treatment plant at the Blue River Station. So it needed a major upgrade. And Blake Anderson, Facilities Manager, will explain more

about this project.

Thank you, David. Blake Anderson, Water Services. So yes, this is a design build contract at our Blue River Treatment Plant. It is the main treatment plant for Kansas City on the wastewater side. It's located at approximately Front Street in 435 and the Blue River.

Work existing lot

power

basically, we've had issues with water intrusion. Several years ago, we even had a situation where that water intrusion caused a whole plant fault. As David mentioned, this is the power plant. All electrical power on this site goes through this structure and the new structure that we'll be replacing it. So that takes the 13,000 volt feeds from multiple Evergy feeds as well as a tap to bring in portable generators as if needed.

We've done some brief rehab work to keep water intrusion out by putting this cover over the existing facility. But we're running on borrowed time in particular because this area of the plant has high hydrogen sulfide levels. It's the head of the plant where sewage comes in. We've done some odor control, but there still is a fairly high level. That hydrogen sulfide eats basically helps the steel coatings basically to corrode more and the internal copper also basically starts to tarnish, corrode and degrade.

It's part of the reason why the new facility will be new power pen equipment will be in a purpose built facility with activated carbon filter filters that should offer a longer life cycle overall. The contractor the winning design builder was Hartline. They are a certified city WBE, and they submitted a contract utilization plan of 16% MB and 24% WBE, and that was approved by Creo.

Directors

of of Van City Pass.

Second. Just

one quick question. The $2,700,000 contract, is that $2,700,000 over four years or each year of the contract?

The next.

Of answer.

That's the

next one. I'm sorry. I'll save that one. Aye. Aye. Aye. Aye. Everybody opposed? No. Ordinance passes.

Board the of

Directors

we're sure we're

to

for for renewals. 27%

a year each year for four years, right?

Correct.

Okay. Just want to make sure I

have that.

So I'll start off by saying direction. We'll we're in Ordinance the 02/1940 466. This contract authorizes $2,700,000 before she digs it. This is our emergency water distribution repair contract for our distribution system. So this primarily focuses on pipe sizes from all the way from two inches all the way up to 12 inches.

So we call that our distribution pipeline system. When water leaks, it usually creates somewhat of an emergency situation. You can see on the left hand side that you have street collapse undermining roads, buildings. So we need to address these leaks, these Code leaks as soon as possible, and this contract allows us to address those needs as quickly as possible. I looked at last year's work.

We had 3,660 total work orders. This includes all types and codes ranging from one to three, three being the most immediate need. Of those, fifty one percent of them were repaired by the contractor, whereas about 49% with in house within pipeline. I also do that. That.

To

And three thousand six hundred and sixty, eight seventy three were Code 3s. And our contractor this contract addressed zero two five of those, 25%, whereas pipeline covered about 75%. So I thought that would give you a good idea of how we run the program and how we utilize this contract. For this contract, it was worth a sheet visit, but they are a progress in pleased progress

Yes.

Thank you. Appreciate you attending. I don't have any questions. I believe the 2,700,000,000 is that the one we're talking about? Make sure I get this right. That $2,700,000 is an estimate based on previous years. So you come up with that number every year based on the last five years, two years, three years or something like that?

Yes, exactly that. We look at the last five years, and we understand we look at the amount of work and then the spend rate. And also, we look at staff availability. Quite frankly, I can answer that question better with the next ordinance, I think I'll explain a sense doing. What we'll of to we're And a 2,700,000,000 and it's worked out for us.

I will we'll get into it with the next ordinance, but we are seeing a funding gap. And so what we're also concerned about is making sure we the right staff availability, right? So we didn't want to just bump this one up because then we're relying on the same contractors to do the work. So we try to spread that out.

When you're talking about

the be opportunity

a

you your time. Like

I you would

All those in favor, aye. Aye. Aye. All those opposed? Boardman passes. Thank you, gentlemen. Right. Next.

02/60467, authorizing the manager services to execute a $2,000,000 contract construction contract with She Diggsit for the emergency large diameter water service system repair project authorizing four successive renewal options with further city council approval and very team. Pleased we've

the Ordinance And number 260467 authorizes a $2,000,000 contract, two sheet exit for emergency large diameter repair contract. This particular contract addresses well, I'd like to start off by saying, if you recall back in April, I showed this exact same slide. We have a transmission repair contract, emergency repair contract, that's to Leith and Sons. Going going able to And that. It usually creates big problems.

And As you can see, there's a humongous sinkhole by highway there. It also requires specialty equipment and specialty type knowledge on how to repair larger half of able we're

going do

that. Explain a versatile contractor than Whit we're Merrifield, who's the quintessential utility infielder. So we found this type of contractor, and she digs it, we believe. They have the capability and staff to do both transmission repair, which you see on the right, and distribution repair, as you see on the left. What this slide, this is a two part slide.

I'd like to focus on the right hand side in the graph. What we noticed over about a four year period is a three year period rather, is that as we utilize that well, I guess, historically, we on the transmission side, we had a $1,670,000 contract. And we were noticing that we did not get the full year. So the blue bars show you what the contract value was, and then the orange bar shows you how much money we had to spend within a year. So you can see that the annualized cost increased over the contract value, what we anticipated.

At the end September at the end of last year, what we noticed was there's about a $2,000,000 gap. You can see we the annualized cost was about $4,000,000 and we had a contract around $2,000,000 So we were looking for a $2,000,000 contract. So this large diameter contract focuses on filling that funding gap or that need for the transmission main repairs. And but it also allows us, this contract, to also address needs if we need it on the distribution side. I also wanted to show that we just recently did a benchmarking study where we kind of looked across the entire department of our vacancy rates.

One of the reasons why we have this need is because we run about a 24% vacancy rate, and that puts us company. Have lot to of the company. And and 11% MBE. Do you have any questions in this context?

Just if you can answer this quickly. If not, I'll get off line. But what exactly is the difference between a transmission line and a distribution line?

Two things. Pipe size. So we're going to convey more water through that transmission main. They range from 16 inches all the way up to 90 inches tunnel that goes underneath the

That's transmission.

Those are transmission mains. Service connections typically aren't on a transmission main. So when we shut those down, we're not putting people out of service, okay, to do the repair. But they're larger, I mean, significantly larger. The weight of the fittings, the size of the equipment to put the fittings in place it takes you to a different level with regards to a contractor,

There you go.

And we use distribution because with the transmission, the flow of water is so much faster that it deregulates the water pressure and everything Wouldn't for

say so much faster.

It's just the volume water.

When they break, big things happen.

Yes. Okay. All right. Any other questions from my

So before this request for contract, sense

to to

get in first quarter

get

in

we're this third large diameter. Correct.

So where we did that work before, that was taken out of those other two contracts?

Yes. We were basically renewing it sooner than a year had gone through. That's

what Okay. That That's what because I remember you coming back and having contact

we'll start question. Out of the contract. That's the goal.

Okay. That's great because I have a lot of constituent concerns. And when water happens, water is going to do what water is going to do. And you guys are very receptive to that and reactive. And so being able to have enough funds to do so

past.

Of

of Board

of

of

customers. Customers. That

Airport. I And Pete, that's I'm excited the to hear about this. This is a great

opportunity to present Pete Fullerton, Chairman O'Neill threw me off. Had my whole speech already. Chairman O'Neill, members of the committee, Pete Fullerton, Deputy Director of Properties and Commercial Development for the aviation department. And as noted before, it's an exciting opportunity for us to come before you for this ordinance to authorize the director of aviation to enter in a leasing concession agreement to build a new hotel at Kansas City International Airport. I'll go back in time a little bit because it has been a process.

Director Cooper had mentioned a little earlier that this dates back to even when she was sitting in this seat. We issued an RFP for development on a piece of property just south of our administrative offices that you see in this picture to the right and down. We had those proposals out on the street at December 2022. I should mention while we were working hard to open the new terminal. March 9 was when the proposals were due. We did have three requests for the RFP. Did receive one proposal. Did ir own

to

And

so that. So

do

to

and Michael Collins Group, Grayson Capital, both those folks are here and have done great work all over the city. This is actually the layout on that piece of property. I should mention that the angling of the facility mirror kind of an opposite of what our facility or aviation department offices are. That's a four acre track do that.

Able to

half And

we're we're And we're that. Do proposal, with some local not for profits, such as the American Jazz Museum, Black Archives, City of Founds Foundation, Kansas City Museum, Negro Leagues Baseball Museum, and the World War I Museum. And perhaps Doug can to able And questions.

Able do open up for

This is a $45,000,000 private investment, all private, And no aviation dollars into this project and looks to create 35 permanent jobs. We have a term of thirty years with two twenty year options. Should mention that, that mirrors pretty closely to what our other hotel, the Marriott, has going forward. Marriott still has thirty six years left with two twenty year options. So a very similar kind of setup.

Same thing with regards to the rents and concession fees and other revenues, those mirror the Marriott. So we felt it was important to make sure that all everybody is equal in our programming there. And once this opens, we project that there would be about a $250,000 revenue to the aviation department in the city per year going forward. So I would like to And that's

question.

And then answer any questions.

Hi. Thanks, Pete. Thank you, councilman. I appreciate Melissa. There's a lot of things to go around. I think Pete and I discussed this earlier, maybe 2017. I was in Melissa's office now, Pat Klein, discussing the new Herbert Terminal, what was gonna be built, what wasn't gonna we laid it on Terminal C. We were actually gonna build on top of the garage originally and then move to this site here. The the exciting part about this project, two things. The airport, 12,000,000 visitors, six in, six out. That. And And And we're

we're

going gonna to be partner kinda And like we did with the eight one six hotel, if anyone remembers that, in Westport years ago with some local institutions and let them help decorate the hotel. So imagine the the 2nd Floor being dedicated to the Negro League Baseball Museum. Instead of regular artwork in the rooms, we'll have things that are specific to theirs. It becomes a little testament, a little museum to the city itself and tells the story of Kansas City to all those 6,000,000 people coming in and out that end up walking through there or stopping through there. Going able able then to to the company. And

that. I I think ability to stick with this project for as long as you have. So we're thrilled to have a new hotel on the properties.

Thanks. Yes. Without Pete and Melissa's help, your help, and of course, Michael, Andrea with Grayson Capital, very opportunity

to And

What is the excited occupancy rates for the Marriott? And we're sure that airport has the capacity to have another hotel. I mean, and anecdotally, I just wanna say, I I think the answer is yes. I've the Veterans of Foreign Wars, of which I used to work for for ten years, we held a lot of conventions out at the Marriott. It's old, and, we we usually had it at capacity. But I just wanted a better understanding of the capacity for that and the rationale for having another hotel out there.

Yeah. At least as far as what we've looked at. I know, Doug had put together a market study a few years ago that determined that they could finance it at work. There is a market. As far as I think one of the other things that's a little different about this facility as opposed to one that we normally see up and down I-twenty 9 is it actually is on airport.

It's a little different breed of cat. So I think it's really going to its market is going to be a bit different. Our friends and colleagues over at the Marriott have been able to do a good business, and we think this will be actually pretty collaborative activity between the two facilities since they're just right down the street from each other.

Very good. Thank you.

Would this been possible without the new terminal?

Doug, you want to try that one? Because it's actually his that's private money, and that's a good real question for

The in theory, yes. Sense

to

at Mexico and I-twenty 9. I mean, that brand sense new terminal has changed quite a bit. And I don't think anyone would be up here having this conversation today if the new terminal wasn't built.

Yes. Just curious.

Thank you.

Appreciate it.

All right. Any other comments from my colleagues? If not, any public testimony?

No public testimony. I would

entertain a motion. Mr. Chair, I

move that ordinance number 260,468 be reported out of committee do

to able

the amount of 1,500,000 in the fund number 3527, the GOAT two 2027 q '1 fund appropriating 1,500,000 from the unappropriated fund balance in fund number 3527, the GOAT twenty twenty seven q one fund for street resurfacing, reducing appropriations in the amount of $1,500,000 in the fund number thirty ninety, the capital improvement fund appropriating $1,000,000 $1,500,000 from the unappropriated fund balance in the fund number 3090 in the capital improvements fund for 89008232 31st And Van Brunt Boulevard, and recognizing this ordinance is having an accelerated effective date.

I understand you have too much money right now?

Good morning, mister chairman, members of the committee. Nicholas Bosonetta, city engineer. Yes, this project is a $25,000,000 project. It is funded. The only issue we had is that it is funded with GEO Bond and grant funds, and those funds cannot be used to purchase right away. So what this ordinance does is it moves $1,500,000 from the project GEO bond over to 3,090 fund, and then we're taking that $1,500,000 in 3,090 funds, moving it to the project because you can use 3,090 funds to purchase

You're just stretching up funds.

Yes, just changing the flavor of the money.

Got you. Any questions from my colleagues? If not, any public testimony on this?

No public testimony.

I would entertain a motion then.

Mr. Chair, members of ordinance over 260,470 Board Directors of of

of