4B Sales Tax Corporation Minutes - 05/11/2007MINUTES OF THE 4B SALES TAX CORPORATION
May 11, 2007
Present:
Warren Ayres, President §
Leon Mallonee, Vice - President §
Darron Leiker §
Ray Gonzalez §
Bob Seabury §
Alan Donaldson §
Randy Schaffner §
RECEIVED IN
CITY CLERK'S OFFICE
Dam__ VLildo
By Time A94--+4
Corporation Board Members
Jim Ginnings, Councilor At -Large § City Council
Matt Benoit, Assistant City Manager §
Jim Dockery, Director of Finance §
Jack Murphy, Director of Parks & Recreation § City Staff
Linda Merrill, Recording Secretary §
1. CALL TO ORDER
President Warren Ayres called the meeting to order at 8:00 a.m.
2. APPROVAL OF MINUTES (MARCH 20, 2007)
Mr. Ayres noted there was no reference to a final vote on the project approval for
the repair and replacement of items for the Multi- Purpose Events Center, although the
Board did vote affirmatively on this issue. Leon Mallonee moved for approval subject to
that correction, seconded by Randy Schaffner. The motion carried.
3. CONSIDER A REQUEST FOR ADDITIONAL FUNDING TO COMPLETE THE
FOUR -FIELD ADDITION TO THE CITY'S SOFTBALL COMPLEX.
Matt Benoit passed out a hard copy of a Power Point presentation regarding this
item. The Council issued debt in 2006; some of which was to be paid out of the City's
General Fund, and some out of 4B funds. The Weeks Park Golf Course renovation, TIF
#2 infrastructure, and replacement of TESCO Park softball fields were the 4B Board's
portion of that debt service issuance.
The 4B Board contributed $500,000 to replace TESCO softball fields, eliminated
due to the TIF #2 improvements. The Council has elected to construct two additional
softball fields, adjacent to the existing softball complex.
4B Minutes — May 11, 2007 2
The City hired Staley, Baker, Monson to complete design and construction
observation services. Thirty-five percent of the design reflects a cost estimate of $2.6
Million. The following outlines the major components of the cost of the complex:
Site Work will require a new lake
$333,592
12.9%
Irrigation System and Grassing
$228,563
8.9%
Fencing
$138,000
5.3%
Field Lighting
$322,448
12.5%
Concrete Improvements (Concourse, Drives,
Approaches Bleachers, Dugouts)
$339,789
13.2%
Parkin lot Gravel
$145.975
5.7%
Scoring/Concession Building
$578,484
22.4%
All Others Utilities, Covers, etc.
$291,893
11.3%
Subtotal
$2,378,744
Architect Fees
$2021193
8.5%
Total
$2,580,937
Plum Lake was created as a result of the current softball complex. The proposed
site of the new fields is immediately south of Plum Lake. There are elevation problems
in that area; a portion is in the floodway. The construction will require expansion of the
lake, and a significant amount of fill. The concession stand will be raised three to four
feet, and the area around the outfield fences will be raised six to eight inches.
There will be a lot of concrete areas, including the scoring and concession
building and the concourse. The scoring and concession building will be two stories; the
bottom is the concession stand, and the top is the scorers' area. The parking lot will be
gravel, as is the existing parking lot. There is an elevator in the scorer's building, and
additional concrete from the concourse to behind the backstop for seating, in
compliance with Americans with Disabilities Act requirements.
Bob Seabury noted this is the site of an old refinery, and asked what type of
environmental assessment has been performed. Mr. Benoit stated that there is one
abandoned oil pipeline down the center of the complex. The owner has no interest in
the line. Mr. Seabury asked if the City had completed Phase One, to which Mr. Benoit
replied no, but a plat review was performed and the utility companies were contacted.
Mr. Benoit noted it was the Council's recommendation to do a four -field
expansion at the complex, rather than only two fields. This expansion is proposed to be
funded as follows:
2006 Debt Issuance $ 500,000
General Fund Equity $ 500,000
Reduction in Traffic Flow Improvements $ 600,000
4B Sales Tax Funds $1,000,000
$2,600,000
4B Minutes — May 11, 2007 3
The reduction in traffic flow improvements refers to several intersections in the
City that need a left -hand turn lane or a wider right -hand turn lane. The City intends to
acquire or use existing right -of -way to perform the work so that traffic flows better. The
original budgeted amount of $1.4 Million is being reduced by $600,000, so that this sum
can be contributed to the softball field project.
Mr. Benoit noted the 4B Board has had a very busy 12 months. The 4B Fund's
current cash balance is $7,890,557. Its current encumbrances total $2,829,771. The
Board is responsible for about $930,000 in public safety debt service payments;
$500,000 in debt service payments for the golf course and TIF #2 improvements. Other
encumbrances include $500,000 for MPEC improvements, $350,000 for the Curtiss
Jenny, Radio, CAD and Records Maintenance, as well as Sheppard Military Affairs.
The future projects the Board faces include the request today for $500,000 for
the softball fields, enhanced gymnasium space (also for $500,000), and for the Mobile
Data Terminals ( "MDT "). Proposals have been received for that project, and staff will be
interviewing vendors next week. This project is estimated at $4.2 Million. The Board is
paying the consultant fees and the funding request for the project will be forthcoming.
Mr. Benoit referred the Board to a financial spreadsheet. This document is an
attempt to show the Board all of its revenues and expenses, and to ensure that the
encumbrances are reflected correctly. The beginning cash balance for April is
$7,890,000. Taking into account estimated interest earnings and expenses, April's end
reveals a cash balance of $8,185,000. Subtracting expenditures of $2,819,000 leaves
an ending available balance of $5,365,000.
In June 2007, the Fund's encumbrances jump from $2.8 Million to $3.8 Million,
assuming the Board approves today's requests. The Fund will close the fiscal year in
September with an ending available balance of $5,890,500. The reason the
encumbrances jump so much from the end of one fiscal year to the start of another is
due to the debt service of $600,000 for TIF #2 improvements and the golf course
renovation, as well as $4.2 Million for the Mobile Data Terminals. The encumbrances
will increase to $7,154,000.
The Board's estimated cash balance as of October 2007 would fall to $180,500.
Mr. Ayres asked if this financial report includes income projection, to which Mr. Benoit
replied affirmatively. Mr. Benoit assured the Board that this is not an irresponsible place
to be. It would most certainly be time to close the doors for three to four months and let
some of the cash build back up. As of January 2008, with interest earnings and sales
tax collections, the fund would be back up to $1 Million.
Mr. Ayres assumed the money for the MDT is totally encumbered on day one,
but not from a cash perspective. Mr. Benoit replied that, although it would be unlikely
that both the infrastructure and the software pieces of that project line up at the same
4B Minutes — May 11, 2007 4
time, the end result is the same. The cash balance would drop to about $250,000.
Mr. Leiker assured Mr. Ayres that the 4B Board would not need to write a check for $4.2
Million on day one.
Mr. Schaffner asked if this balance of $180,000 is historically the lowest for the
4B fund. Mr. Benoit responded that he did not believe the 4B Fund has ever been
below $1 Million, including encumbrances. He added that the information he has
provided today is not a cash flow statement in the strictest sense, but a commitment of
funds. Mr. Dockery noted the encumbrances are identified to show the Board its
commitments, so that it does not become overextended.
Mr. Schaffner expressed concern that the City proposes to take $600,000 out of
traffic improvement needs to pay for softball fields. Mr. Benoit noted that is a valid
concern. However, the four projects left on the list are those that the Public Works
Director said has to get done. And there may be more money available after those four
projects are completed that will allow for the lion's share of the list to be accomplished.
Mr. Leiker noted the staff will be working during the budget process to include
other smaller traffic improvement projects. It will be difficult, as those projects will
compete for money against mill and overlay projects. The City does have a five -year
capital improvement program, so although these projects may be delayed, they will not
fall off the list. Councilor Jim Ginnings added that TxDOT will perform work on the
drainage ditch at Rhea Road and Southwest Parkway, and in the process will spend
money on that intersection.
4. CONDUCT A PUBLIC HEARING ON THE REQUEST FOR ADDITIONAL
FUNDING TO COMPLETE THE FOUR -FIELD ADDITION TO THE CITY'S
SOFTBALL COMPLEX.
Mr. Ayres opened the public hearing. Jack Murphy noted the genesis of the
addition to the softball complies was the Maplewood Project. The logic of
increasing from two fields to four is efficiency. There is so much infrastructure
necessary — concession, lighting, and parking — that it makes sense to construct
four fields rather than only two. In addition, having all the City's fields in one
location will increase camaraderie, attract larger tournaments, and allow for more
efficient maintenance.
Mr. Ayres asked if the softball complex is used frequently. Mr. Murphy
replied affirmatively. The addition of the four fields was looked at very carefully.
Instead of tournaments playing all night long, with more fields they can end
around midnight or 1:00 a.m. rather than 3:00 a.m. or 4:00 a.m., as is the current
practice.
4B Minutes — May 11, 2007 5
Leon Mallonee asked if the lake would be expanded. Mr. Murphy stated it
would be expanded to almost double its size. Mr. Leiker added that it will be an
"L" shape. Mr. Seabury asked the depth of the lake. Mr. Murphy replied that the
lake is currently two to five feet deep. Fishing is an attractive activity there, so the
hope is the new portion of the lake can be 10 to 12 feet deep. The depth of the
original lake was controlled by the amount of funds available.
Mr. Schaffner asked about the annual revenue stream from the complex, to
which Mr. Murphy replied it generates about 50% of what is needed to support
the operation (approximately $250,000). Mr. Schaffner asked if it is anticipated
that the revenue stream will increase when the complex is expanded. Mr. Murphy
replied that he hopes that is the case, with the acquisition of larger tournaments.
The softball complex is an investment; money goes to hotels and restaurants,
and the City gets its portion from that in the form of sales tax. He cannot think of a
complex in the State that would have such an attractive facility, with lodging and
restaurants all within walking distance.
Mr. Seabury noted there is a concentration of athletic facilities on the north
side of town, yet the expansion of the City is to the south. Mr. Leiker replied that
the City has what it has. The softball complex is a major investment; it would not
make sense to construct the softball fields elsewhere now. In hindsight, the
complex could have been constructed in a more central location. But the City
owns the land and wants to improve the area. The Council approved that area for
the new skate park due to its proximity to the highway. If it is successful, perhaps
a second skate park will be constructed in another portion of the city.
Mr. Murphy added that the softball complex was originally slated for
construction at Lake Wichita Park, then Jaycee Park. That idea lost favor, and
staff began looking for a site off the freeway. The land was found, it was available
for expansion, and it was away from housing to allow for all -night games to be
held. With the construction of the Falls Flyover, the site will be five minutes closer
to everyone from the southern part of town.
Mr. Gonzalez commented that there were a lot of problems with TESCO
Park regarding the light and noise disturbing the neighbors.
Mr. Seabury asked that attention be given next time to development of
Lake Wichita. This area continues to be ignored.
Mr. Ayres closed the public hearing.
4B Minutes — May 11, 2007 g
5. DISCUSSION AND POSSIBLE ACTION ON A REQUEST FOR ADDITIONAL
FUNDING TO COMPLETE THE FOUR -FIELD ADDITION TO THE CITY'S
SOFTBALL COMPLEX.
Mr. Leiker moved that the Board recommend that the City Council approve the
additional funding of $500,000 for the placement of a four -field complex at the City's
softball complex. Seconded by Alan Donaldson, the motion carried unanimously.
6. CONSIDER A REQUEST FOR ASSISTANCE IN CONSTRUCTION ENHANCED
GYMNASIUM SPACE FOR RECREATIONAL PROGRAMS.
Jack Murphy stated this is a rare opportunity. For 25 -30 years, the City has used
three of the School District's junior high gymnasiums for its adult basketball program.
But there have been scheduling problems during the last few years, as the School
District needs to use the gymnasiums for its own programs. This has stifled the City's
ability to have expanded basketball programs.
The School District had a successful bond issue, which included building 11 new
elementary school gymnasiums. Even before the bond issue, the City had an
agreement with the School District to build schools and gyms at Scotland and Southern
Hills Parks. After the bond issue success, staff came up with the idea to expand junior
high style gymnasiums into high - school style versions. The schools use the elementary
gyms only during the day, and the City's demand for the gyms is in the evenings and on
weekends. Even with the City moving from three gymnasiums to two, scheduling
opportunities will increase because the gyms will be available Monday- Sunday.
Bids will be opened in June on the expanded gymnasiums at two sites, Scotland
and Jefferson Park. It will then be discovered if the cost comes within the architect's
estimate. The original choices for construction were Scotland and Southern Hills, but
the School District prefers Jefferson Park. They will enter a joint use agreement with the
adjacent Southside Girls Club, negating the need for a new gym at Southern Hills.
Jim Dockery noted that Bundy Young Sims & Potter estimated the cost
difference between a small gym and a larger one at approximately $1.3 Million, which
would be the City's cost. The three funding sources include $500,000 of 4B funds;
$500,000 of City funds; and $300,000 cash received from the School District through
the sale of land at Southern Hills.
Mr. Schaffner asked why these schools were chosen. Mr. Murphy replied that
Scotland is the preferred site. It is the most accessible and visible location. It is near
downtown, and the city has an interest in the area with the softball complex. It is
preferable to find locations as close to the highways as possible. The City does not
want to users of the gymnasiums to have to drive through neighborhoods. The School
District favored Jefferson Elementary. It is only one block off of Fairway Boulevard, so it
should be fairly accessible to users of the gym.
46 Minutes — May 11, 2007 7
Mr. Leiker noted the gymnasiums will be transformed from elementary size to
full -size gyms. The enhanced gymnasiums are competition- sized, with tall ceilings,
wooden floors, scoreboards, and bleachers. This is a win /win situation for the School
District, the City and the taxpayers. The City needs additional gymnasium space. With
this project, that need can be fulfilled at half the price, arguably less. There is not a
need to acquire land or to build parking, and the School District will enjoy upgraded
gymnasiums for the students.
Mr. Schaffner noted that he liked the concept, but asked if it would make sense
to do a third gymnasium, rather than to stop at two. Mr. Leiker noted the need to
balance between the money available and the community's needs. The joint use
agreement will allow the City to use the gymnasiums seven days a week, on evenings,
weekends, and during the summers, which will allow for growth and better scheduling of
programs. Mr. Murphy interjected that the door might be open in phase three for more
opportunities. Only the gymnasium at the Scotland location will be developed
immediately; it will be a year before the Jefferson gymnasium is constructed. There may
be opportunities for more joint projects in the future.
Mr. Seabury asked who will pay the utilities. Mr. Leiker replied that there will be a
cost - sharing agreement on maintenance items. The School District will need to acquire
eight acres from the City at Scotland Park, and the money from that transaction will be
applied toward the City's share in the maintenance costs (such as HVAC replacement,
flooring, roofing). Mr. Seabury asked if this type of endeavor has occurred in other
cities. Mr. Leiker noted that Plano has done this successfully. It is a good example of
two governmental agencies working together in the best interests of its taxpayers.
Mr. Schaffner asked what would happen if the bids come in higher than
anticipated. Mr. Leiker replied that the City has an "out" clause. Mr. Dockery stated the
architect designed the plan to allow for two alternate bids — one with the standard
elementary-sized gym, and one with the enhanced gym. If the bid for the enhanced
gymnasium comes in too high, the School District can continue with the project, using
the bid for the standard -sized gym.
Mr. Ayres opened the public hearing. Hearing no comments, the public hearing
was closed.
7. DISCUSSION AND POSSIBLE ACTION ON A REQUEST FOR ASSISTANCE
IN CONSTRUCTION ENHANCED BY GYMNASIUM SPACE FOR RECREATIONAL
PROGRAMS.
Mr. Schaffner asked if any cost overruns encountered by the School District
would negatively affect this project. Mr. Leiker noted the projects are separated. The
School District is adamant that it has its own buildings to build. If the bid for the school
building structure, separate from the gymnasium, comes in high, it will not be the
4B Minutes — May 11, 2007 8
responsibility of the City or this Board. However, if the architect's estimate for a larger
gymnasium is too low, the City could be faced with some challenges. However, David
Potter (of Bundy, Young Sims & Potter) has taken a hard recent look at costs to come
up with the estimation.
Mr. Ayres moved, seconded by Ray Gonzalez, that the 4B Board recommend to
the City Council the expenditure of 413 funds in the sum of $500,000 for the gymnasium
enhancement program. The motion carried unanimously.
Alan Donaldson asked if this program will affect the long -term plans for a
centralized recreational center. Mr. Murphy replied that it is still in the Council's five -year
plan. This project is an opportunity to supplement the recreational center, not to replace
it. The recreational center would have rooms and other activities not satisfied by a
gymnasium. It would also be in a more centralized location.
E-�_ TW •
The meeting adjourned at 8:55 a.m.
Warren T. Ayres
President