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Financing of Improvements to Beechcraft Road CONTRACT between CITY OF SALINA, KANSAS and SALINA AIRPORT AUTHORITY for FINANCING OF IMPROVEMENTS TO BEECHCRAFT ROAD Pursuant to K.S.A. 12-2908 (as amended by H.B. 2094 (2017)) This Contract is entered this 2sday of August, 2017 between the City of Salina, Kansas, a municipal corporation, (the "City") and the Salina Airport Authority, an authority established by the City pursuant to the surplus property and public airport authority act, K.S.A. 27-315, et seq., (the "SAA"). Recitals A. The city street known as Beechcraft Road runs east and west from the Salina Regional Airport to Centennial Road(see attached Exhibit A)and serves as a gateway to the Salina community,particularly for persons arriving via general or business aviation. B. The public interest will be served by the City's and SAA's cooperative work to improve Beechcraft Road in the form of a complete reconstruction of the west 1,192 feet(including curb and gutter, replacement of storm sewer, and installation of street lights) and the construction of a"streetscape" plan for the full length of Beechcraft Road (including burial of overhead utility lines and installation of sidewalks, bike paths, and landscaping) (collectively referred to as "the Project") to be financed by the SAA's issuance of general obligation temporary notes for future reimbursement by the City's issuance of general obligation bonds. C. The City may issue general obligation bonds to pay the cost of improving City streets that have been designated as main trafficways(K.S.A. 12-685); the SAA may issue general obligation bonds with the consent of the City(K.S.A. 27-323(a)) and may enter into an agreement with the City for the furnishing of facilities owned and maintained by the City(K.S.A. 27-320(j)); and the City and the SAA may enter into an agreement to perform any governmental service, activity or undertaking which each contracting municipality is authorized by law to perform (K.S.A. 12-2908, as amended by H.B. 2094 (2017)). THE PARTIES AGREE AND COVENANT: 1. Purpose. By this Agreement the City and the SAA intend to provide for design, bidding, contract award, construction, and temporary financing of the Project under the authority and administration of the SAA and the long-term financing of the Project under the authority of the City to issue general obligation bonds to pay the cost of improving City streets that have been designated as main trafficways. 2. Preliminary design and estimated costs. The SAA has engaged the services of H.W. Lochner, Inc. ("Lochner") for preliminary design and cost estimate services for the Project. Attached Exhibit B depicts the preliminary design concept. Attached Exhibit C outlines the estimated Sources and Uses of Funds for the Project. 3. Engineering. Promptly upon execution of this Agreement by the City and the SAA, the SAA agrees to enter into a contract with Lochner,as preapproved by the City Engineer, for the 1 final design and engineering services necessary to bid and construct the Project in accordance with all City standards and specifications (the "Engineering Services Contract"). The final design and engineering phase of the Project is projected for completion no later than October 31, 2017. 4. Bidding, contracting, and construction. The SAA agrees to advertise and bid the Project in accordance with its sealed bid practices and to enter into and manage a contract for construction of the Project, subject to all City requirements for public improvements to be constructed in the City's right-of-way, under the following projected schedule: Phase Schedule Project design,engineering, and approval August—October 31, 2017 Bidding for construction contract November 1 —November 30, 2017 Construction Period April 1 —June 15, 2018 5. Temporary note financing by SAA; unconditional City approval. The SAA agrees to finance the cost of the Project by the issuance of general obligation temporary notes (Series 2017-1) to be issued in accordance with the Calendar of Events attached as Exhibit D. The City and the SAA agree that the general obligation temporary notes will be issued in a principal amount not to exceed actual costs identified after the SAA contracts for construction of the Project plus costs of issuance and capitalized interest on the notes. 6. Permanent financing with City general obligation bonds. The City agrees to designate Beechcraft Road as a main trafficway and to permanently finance the cost of the Project by reimbursing the SAA for the principal and interest costs of its temporary financing of the Project from the proceeds of the City's issuance of general obligation bonds at such time in either 2018 or 2019 that the City would normally issue its general obligation bonds, provided however, that the reimbursement shall be made no later than July 25,2019. Any costs of the Project over the amount of the principal and interest costs of the SAA's temporary financing shall be borne by the SAA. 7. Representation. The City and the SAA acknowledge that both are represented by the law firm of Clark, Mize& Linville, Chartered("CM&L"); agree that the City's and the SAA's interests in the subject matter of this Contract are not adverse; and consent to preparation of this Contract by CM&L. The duly authorized officers of each of the parties have executed this Agreement effective as of the day and year first written above. CITY OF SA INA, KANSAS SALINA AIRPORT AUTHORITY IlL By: A1'/L Kaye Cra o Mayor Katherine M. Platten, Board Chair ATTEST: ATTEST: By: OgwokLJ( By: Shandi Wicks,CMC, City Clerk Ke t D. Buer. Board Secretary 2 EXHIBIT A 2353.28' Center of Centennial to Gate H1 1191.60' Reconstruct 1161.68' Curb & Gutter _ i _ . - ifi VOW APR, ' � r L 1� 44 i i • 411,4* , c ;L.: - I ' • `: IF CC . . . .i. till $ W 3 k . U .. '-....... , I) i j I 411 " I/1\ • • lir I' _ / ,/ ,r#; l JO Ili . deis.+i. 12•:31' D \I • ' Z II F = •r 0 ICI '' • rr ` 0 I. r - LL 41( # _ tri:i LLI 03 - -1-•1 Z h-. - - v lJ 4 - _• 41.0.±..'_--c M s ESTIMATED EXHIBIT C SOURCES AND USES OF FUNDS SAUNA REGIONAL AIRPORT SALINA AIRPORT AUTHORITY SALINA, KANSAS 2017-1 General Obligation Temporary Notes Beechcraft Rd. Reconstruction and Streetscaping Project As of July 24, 2017 SOURCES OF FUNDS 2017-1 GO Temp Note Project Funds $ 1,378,000 TOTAL SOURCES = $ 1,378,000 USES OF FUNDS Preliminary Design Report $ P3,000 Engineering Design Services 98,400 Construction Services 93,300 Construction Beechcraft Road rehabilitation 830,000 Streetscaping 183,300 Utility line relocations 150,000 Total Designated Use of Funds $ 1,378,000 Unemcumbered Bond Fund Balance $ - Notes: 1.Street lighting included in road rehabilitation. 2.Does not include hangar siring improvements. 3.All work within City right of way. 4. Road rehabl1itation is west 1.192'of roadway. 5.The streetscaping would include entire length of roadway. 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