4A Wichita Falls Economic Development Minutes - 05/16/2019MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
May 16, 2019
PRESENT:
Leo Lane, President § WFEDC Members
David Toogood, Vice -President §
Darron Leiker §
Dave Lilley §
Stephen Santellana, Mayor § Mayor & Council
Bobby Whiteley, Councilor at Large §
Jeff Browning, Councilor District 3 §
R. Kinley Hegglund, Jr., City Attorney
§ City Staff
Amy Gardner, Assistant City Attorney
§
Jim Dockery, Deputy City Manager
§
Paul Menzies, Assistant City Manager
§
Karen Montgomery-Gagnd, Planning Administrator
§
Linda Merrill, Recording Secretary
§
Henry Florsheim, CEO
§
Scott Poenitzsch, Chairman
§
Travis Haggard, V.P., Business Retention & Expansion
§
Adrine Wike, Director of Research
§
Katie Britt, Marketing Director
§ CCI
Taylor Davis, Talent Partnership Director
§
Hillary Robinson, Administrative Assistant
§
ABSENT:
Reno Gustafson, Secretary -Treasurer § WFEDC members
1. Call to Order
Leo Lane called the meeting to order at 3:30 p.m.
2. Financial Report
Jim Dockery said $5.664 million is budgeted for revenues, including the $1.5 million in
DEAAG reimbursement. Budgeted expenditures are at $2.654 million thus far. Revenues in excess
of expenditures total $3 million. The unreserved fund balance is $4.975 million, which sum could
be allocated without the Board overcommitting its funding. The unreserved actual fund balance
totals $3 million.
Six months into this fiscal year, sales tax receipts are running 4.3% ahead of last year's
actual totals.
3. Approval of Minutes (4/18/19)
Mr. Lilley noted an error on the second page. Mr. Leiker moved for approval, subiect to
the correction. Seconded by Mr. Lilley, the motion carried 4-0.
4. Consideration of purchasing general liability insurance for Corporation properties
Mr. Dockery noted the Board had previously authorized staff to secure Director's and
Officer's Insurance in an amount not to exceed $5,000 in annual premiums. He has received
recommendations from consultants that evaluate city insurance policies. The recommendation is a
Philadelphia Insurance Company policy with a $3 million maximum aggregate limit and $1 million
for each executive officer. There is a $7,500 deductible and the premium is $4,424. This policy is
ready for Mr. Lane to sign today.
The best quote on the Board's two buildings — the former ATCO and Stanley buildings —
is $3,500 with a $1,000 deductible. This would cover $2 million aggregate, and $1 million per
occurrence. This is reasonable, but he is still getting comparisons to ensure the best coverage. He
recommends that $6,000 would be adequate if the Board chooses to only insure the two buildings.
However, if the Board chooses to also insure the Business Park, he recommends the sum of
$10,000. This is not ready for signature today, but the appropriation could still be made.
5. Contract modification for engineering review by Guernsey not to exceed $17,000 for
Sheppard Air Force Base main gate project
Kinley Hegglund said this is a joint partnership between the WFEDC and the military to
rebuild and improve Sheppard's front gate. Initially, it was thought that Benham would do the
design, and either the military or the Corps of Engineers would handle the construction. That
turned out not to be the case. He and Karen Gagnd have been working on how to get the
construction done properly.
The contract for the design work has expired. Guernsey has been contracted to do oversight
work on 4A's behalf. Under the initial contract, the company agreed to review the work three times
per week, to ensure that Terra Construction was fulfilling its contractual obligations. However,
there is no one to handle the engineering issues, and Terra has several questions.
The City asked Benham and Guernsey for quotes to handle engineering questions, and
Benham gave a not -to -exceed bid of $20,000, while Guernsey's not -to -exceed bid was for $17,000.
Mr. Hegglund feels Guernsey's bid offers the best value. However, that would still not handle all
management issues. Guernsey has said they could handle 99% of management issues with a not -
to -exceed bid of $34,000.
Ms. Gagnd said the latter figure is preferable, as it would cover both project and
construction administration. Mr. Hegglund agreed, as it would take the burden off City staff.
Overseeing construction contracts is not Ms. Gagnd's primary job.
Mr. Leiker asked the original cost for Guernsey. Mr. Hegglund said it was $68,000. At the
time, it was a low price based on the total project amount. However, it did not include these extra
responsibilities. Mr. Leiker asked if Guernsey is fulfilling the contract's scope of work.
Mr. Hegglund said he did; when it was negotiated, it was assumed more support would come from
the base or from the Corps of Engineers. That did not materialize, as it was not legally possible for
them to assist with the 4A portion of the project. Mr. Leiker said that Ms. Gagnd is a great
employee, and he knows she has spent hours at the site, but this is not her area of expertise. He
believes it would be best to fund the full $34,000.
Mr. Hegglund said that would mean Guernsey would be receiving $100,00 in total for its
services. He asked Mr. Lilley if that sum was in line for that type of service. Mr. Lilley said he did
not know the details. Mr. Dockery said to keep in mind that one-half of this would be reimbursed
through the DEAAG grant.
Mr. Lane asked if Guernsey has any liability for its decisions. Mr. Hegglund said they do
not have an engineer at present, so they would have basic negligence. But if they are on board with
making engineering decisions, they can be held liable on those decisions. Benham can face liability
on engineering issues, however.
Mr. Leiker referred to the letter in the packet, and asked if the $34,000 would cover the
items described there. Ms. Gagnd said there is not a formalized letter from Guernsey today, but
Bob McCombs is available by text for more information. Mr. Hegglund suggested the Board could
authorize up to $34,000 contingent upon getting an agreement in writing to include those other
items.
6. Executive Session
Mr. Lane adjourned the meeting into executive session at 3:53 p.m. pursuant to Texas
Government Code §§551.072 and 551.087. He announced the meeting back into regular session
at 4:35 p.m. The subjects posted in the Notice of Meeting were deliberated, and no votes or further
action were taken on these items in executive session.
7. Motions
General liability insurance for properties owned by the Corporation
Mr. Leiker moved to authorize up to $10,000 to purchase general liability insurance for the
three properties owned by the 4A Board (former ATCO building, former Stanley Tools building,
and the Business Park). Seconded by David Toogood, the motion carried 4-0.
Guernsey contract modification for SAFB main gate project
Mr. Leiker moved to authorize the contract modification with Guernsey for engineering
review of the Sheppard AFB main gate project, at a cost not to exceed $34,000, provided the scope
of services is deemed acceptable to the President and the City Attorney. Seconded by David
Toogood, the motion carried 4-0. Mr. Lilley commented that free money sure is expensive.
8. Adjourn
Dave Lilley moved to adjourn the meethn .The meeting adjourned at 4:40 p.m.
eo Lane, President