4A Wichita Falls Economic Development Minutes - 01/16/2020MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
January 16, 2020
PRESENT:
Leo Lane, President § WFEDC Members
David Toogood, Vice -President §
Phyllis Cowling §
Darron Leiker §
Jeff Browning, Council District 3 § City Council
Paul Menzies, Assistant City Manager
§ City Staff
Blake Jurecek, Assistant City Manager
§
R. Kinley Hegglund, Jr., City Attorney
§
Karen Montgomery Gagne, Planning Administrator
§
Linda Merrill, Recording Secretary
§
Henry Florsheim, CEO
§ CCI
David Leezer, Vice President of Business Attraction
§
Travis Haggard, V.P., Business Retention & Expansion
§
Ken Hines §
Tim Croucher §
ABSENT:
Reno Gustafson, Secretary -Treasurer
1. Call to Order
Leo Lane calb�d the meeting to order at 3:00 p.m.
2. Financial Report
Paul Menzies said the sales tax report for January (reflective of November's receipts)
shows a .07% increase over the same period last year, despite the fact there were only three
Christmas shopping days in November, compared to 9 or 10 in 2018..
Mr. Lane asked when the fund would see revenue from online purchases. Darron Leiker
said Amazon has been paying for a while, as well as Netflix, eBay, and all the major ones one
might expect. There might be an uptick, but not a large number.
Mr. Menzies drew attention to the Board's ending cash balance. At the time of this report,
things were still being reconciled. The Board has $3 million in its unreserved fund balance:
$350,000 from the November sales tax receipts has yet to be included, plus the $2.4 million from
the sale of the Stanley building. The Board could also realize $1 million being unencumbered from
the Sheppard AFB Main Gate Project. Staff will also be auditing some of the projects that have
remained opened for a while, so there may be some funds unencumbered as a result. In addition,
the Board also has $3.5 million in sales tax revenue from this year.
Owens Corning has submitted two requests; he paid $225,000 to them today, and is in the
process of reconciling its request regarding the creation of 100 new jobs. He is also reviewing
other requests, including one from USA800. The Council approved the Chamber of Commerce
and Industry and the Du Plooy Trucking agreements, which are accounted for in this report.
3. Approval of Minutes (December 19, 2019)
David Toogood moved to approve. Seconded by Phyllis Cowling, the motion carried 4-0.
4. Update on Sheppard AFB Main Gate Project
Karen Montgomery Gagne stated that staff met with Terra Construction twice last week.
Some key components to the project need to be addressed. She met today with the Mission Support
Group commander. Problems with the subcontractor continue, and she is here to give a financial
update.
Monday, January 13 at 5:00 p.m. was the deadline to submit final reimbursement under the
grant program. She estimated all $1.5 million of the grant would have been used. However, at the
close of the invoice period (November 29), there was still significant work to be done on the
project. Staff was not sure the work listed in the last invoice of $307,000 would be done properly,
so only part of the invoice was certified. The sum of $31,000 was left to still be paid by the
WFEDC, and staff is actively working to ensure expenses are limited moving forward. The sum
of $1,468.924.50 was paid under the grant. She worked to get everything possible included. In any
event, the project is still coming in under the estimate of the prior month.
Ms. Cowling said the $31,000 not charged to the grant may have been an error, but it was
because the contractor did not do was needed to be done in the appropriate timeframe. Mr. Lane
said staff may have been withholding the funds as leverage, but the performance or payment bond
could have acted as that leverage to guarantee the work.
Ms. Gagne said it has been explained to Terra Construction there will be no change after
today if the WFEDC approves this change order. If they go with a different entity to complete the
work, they will have to pay any additional costs. Harris Landscaping has done the stamped, fully
dyed concrete at the intersection; they will be doing the circular Heritage Plaza and possibly more.
She elaborated that Terra Construction's interpretation of Benham's design plans for reinforced
concrete sidewalk in a sample hatched area in the schematics for the inner circle of the Heritage
Plaza differs from the City and Guernsey's interpretation. The City and Guernsey have interpreted
Benham's design plans as it was always to be reinforced concrete. The design plans provided by
Benham only indicated a small tile for reinforced concrete sidewalk within the inner section of the
Plaza. It is unclear why they opted for this method rather than marking the entire area and noting
in the schematic side notes. The added reference stating 'sidewalk' should have been understood
that it was all to be concrete not just the outer circular ring.
The outer circular sidewalk around the Plaza was previously addressed in a no -cost change
order during summer 2019 to remove all brick pavers noted in Benham's original plans and
substitute for stamped, dyed concrete. Sheppard AFB leadership identified their color preferences
for the dyed concrete sidewalk and indicated no vegetation within or around the perimeter of the
Heritage Plaza to avoid potential security concerns and maintenance issues. City staff had concerns
with Terra's proposed change order for concrete in the inner circle wedge areas abutting the
concrete plane base, but understand this issue puts the project at a standstill; without reaching some
form of resolution it will hold up completion of the Plaza's other components, including the
inbound/outbound lanes. Terra has still not provided the requested 10-year Maintenance Bond to
guarantee the looped sidewalk work in Zone A/B as continually requested since October 2019,
Ms. Cowling said if she knew this was the last change order, she would feel better. But she
wonders what may come next, considering the history of this project. Ms. Gagne reiterated that
Terra Construction was told there would not be another change order. Kinley Hegglund added that
he walked the project last week with the City Engineer, Director of Development Services, and
Ms. Gagne. There was not that much left to complete, and the City Engineer said this would almost
certainly be the last item on the list that would involve a change order. Ms. Cowling said that
assumes that Terra will do the things on the prior change order. Ms. Gagne said they did complete
the north drainage ditch. They did a good job and came in at $98,000 instead of the change order
amount of $I 10,000.
Currently, the WFEDC saved $1.1 million out of the $1.5 million pledged, or 76.8%. There
may be a final bill from Guernsey, as they are certifying some of the payroll. She told them to
invoice by November 29, so there may not be another bill from them. She has included $10,000 in
this change order in the event they do submit a bill. If they do not, the Board may save closer to
77% of the funds. Mr. Toogood summarized that out of the $1.5 million pledge from 4A funds,
only $348,000 is being spent. Ms. Gagne said last month it was thought to be closer to $430,000.
Even with the change order for the $31,000, it is still under what was anticipated to be spent.
5. Executive Session
Mr. Lane adjourned the meeting into executive session at 3:28 p.m. pursuant to Texas
Government Code §§551.072 and 551.087. He announced the meeting back into regular session
at 4:09 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.
6. Motions
Change order for Sheppard AFB Main Gate Project
Mr. Toogood moved to authorize the WFEDC to approve the change order to Terra
Construction's contract for the Sheppard AFB Main Gate Project up to the amount of $29,663.00.
Seconded by Mr. Leiker. the motion carried 4-0.
7. Adjourn
The meeting adjourned at 4:12 p.m.
Leo Lane, President