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4B Sales Tax Corporation Minutes - 02/08/2007MINUTES OF THE 4B SALES TAX CORPORATION February 8, 2007 Present: Warren Ayres, President § Leon Mallonee, Vice - President § Darron Leiker § Ray Gonzalez § Corporation Board Members Bob Seabury § Alan Donaldson § Randy Schaffner § Matt Benoit, Assistant City Manager § Jim Dockery, Director of Finance § Bob Sullivan, Director of MPEC § City Staff Linda Merrill, Recording Secretary § George Bonnett § Carlana Fitch § Wichita Falls Arts Council 1. CALL TO ORDER President Warren Ayres called the meeting to order at 8:30 a.m. 2. APPROVAL OF MINUTES (NOVEMBER 3, 2006) Leon Mallonee moved, seconded by Randy Schaffner, for approval of the minutes. The motion carried. 3. CONSIDER AMENDMENT TO THE 2007 4B BUDGET Mr. Benoit noted that debt service has been issued for several City projects, including two 4B projects — the golf course renovation and the softball fields. Debt has been issued and the bonds have been sold. The final total comes to $231,225 for the TIF and softball field improvements, and $367,378 for the golf course renovations. These projects can be lumped together as one line item on the budget. The total amount of these projects, $598,603, comes in slightly under projection. The 4B Board will be obligated to this funding for the next 20 years. Jim Dockery added that the amount of the debt service will fluctuate a little on an annual basis, but will stay in the high $500,000 mark. Mr. Ayres asked what the interest rate is on the bonds. Mr. Dockery responded that the bonds for the golf course 413 Minutes November 3, 2006 2 renovation were taxable, and upwards of 5Y2 %. The tax exempt bonds for TIF were set at 4 % %. These are ballpark figures. Mr. Ayres asked for clarification that this action item simply moves what has already been approved into the 4B budget for the debt service on an annual basis. Mr. Benoit affirmed this statement. Mr. Leiker moved for approval of the debt service for the TIF, softball complex and golf course renovations. Ray Gonzalez seconded the motion, which was unanimously approved. 4. CONSIDER REQUEST FROM THE WICHITA FALLS ARTS COUNCIL FOR IMPROVEMENTS AT THE KEMP CENTER FOR THE ARTS Carlana Fitch spoke on behalf of the Arts Council. She noted that the former Kemp Public Library is now the Kemp Center for the Arts. It houses the offices of the Arts Council and the Wichita Falls Symphony Orchestra. But it also plays host to a great deal of activities that occur within the community. The building was formally opened in 2002 after a $2.6 Million renovation, but there has not been money available since that time to do any further improvements. The parking facilities and outdoor lighting are inadequate. The asphalt parking lot has potholes, which causes it to be unsafe for patrons and also produces drainage issues. Over 32,000 people visit the Kemp annually. Many of the patrons are elderly or have physical issues, and the poor parking facilities and lighting are issues of concern for them and all visitors to the Kemp. The Bridwell Foundation has granted the Kemp $75,000 to upgrade the parking lot and outdoor lighting. They wish to use concrete, as opposed to asphalt, as it would last longer and require less upkeep. The additional outdoor lighting would provide for safety during nighttime events. Ms. Fitch states the Kemp needs over $74,000 to fund this project, in addition to the money granted by the Bridwell Foundation. She then turned the presentation over to George Bonnett to discuss the particulars. Mr. Bonnett asked the Board to turn to Plate 1 of his mailing. There are three areas that are made of perhaps a series of seal coats. Patches of potholes do not hold, and drainage is quite marginal. It is critical to hold the grade. The Kemp Library was built long before the streets were paved; if it were four feet higher, the drainage would be much improved. He proposes to pull out the old seal coat in Areas 1, 2, and 3, and replace it with a 6" Portland Cement Concrete reinforced. He will utilize the City's alley paving specs. It has to be capable of withstanding normal wheel loads. He also noted they intend to put another six foot sidewalk inside the gate to allow for disabled patrons' access to various outdoor events. 48 Minutes November 3, 2006 3 The outdoor lighting will consist of four 400 watt metal light fixtures. They will be directional, so that the reflectors can be adjusted to illuminate the parking lot, as opposed to neighboring areas. This proposal has been approved by the Landmark Commission. Bob Seabury noted that City streets are normally paved at 5 inches. Mr. Bonnett replied that the subgrade is somewhat dubious, but he does not want to change it. Timing is critical, and the subgrade would have to be changed for the five inches. He is surprised at the utilization of the Kemp, and does not want the disruption to continue any longer than necessary. He decided to go with the six inches and reinforce it, and use the standard alley paving specifications. Randy Schaffner asked if berms would help the drainage issue. Mr. Bonnett noted that the parking lot drains, but only 4/10 of 1 % across the parking lot. The asphalt will erode, and start to hold water. Once that happens, stripping occurs. Mr. Mallonee asked if the Bridwell Foundation stipulated matching funds for this project. Ms. Fitch replied it did not. Mr. Mallonee then asked if the Kemp had only asked for the $75,000 granted by the Foundation. Ms. Fitch stated they did ask for more, but this was the amount the Foundation felt they could give toward this project. She was quick to point out that they have been very gracious, and was one of the major sponsors of the Kemp during renovation. The Foundation did stipulate that the $75,000 be used for this specific project. Mr. Schaffner asked if the 4B Board had funded any previous request of the Kemp Center, to which Ms. Fitch replied it had not. Mr. Gonzalez asked if this is the last of the asphalt parking lots at the Kemp, to which Mr. Bonnett affirmatively replied. Mr. Bonnett noted the lighting would be made of a brown anodized material. It would be a 20 -foot fixture, with directional lighting. The Landmark Commission suggested a period -type lighting fixture, but they are not very efficient in terms of lumens on the surface of the street. Mr. Benoit asked if the Kemp would be going out for bids on this project. Mr. Bonnett replied they would take closed quotes so that the process will be competitive. They will administer the contract, but would like to have the City pull concrete samples in order to have quality control. Mr. Mallonee asked if the basement of the Kemp Center floods. Mr. Bonnett replied that it has. This project will not affect that either positively or negatively. Mr. Ayres opened the public hearing for comments from any interested members of the public. Hearing none, he then closed the public hearing portion of the meeting. 46 Minutes = November 3, 2006 4 Ms. Fitch and Mr. Bonnett thanked the Board for their time and consideration, and left the meeting. Mr. Gonzalez asked how much money is available for this project. Mr. Benoit noted that he is remiss in doing a financial statement, but two months ago, the Board had $3.5 Million in unencumbered funds. Mr. Seabury stated that he thinks the six inches of concrete is an over - specification. Mr. Leiker states that Mr. Bonnett believes the subgrade is not adequate to five inches. If he had to go into the subgrade, the cost and time involved may make the project cost more. Mr. Ayres noted that the Arts Council has done a very good job of raising money to give the community a very nice facility. Mr. Mallonee moved that the project be funded with the understanding that, since they have received $75,000 from the Bridwell Foundation, if the bids for the project come in less than the $74,212 they are requesting from the 4B Board, that the Board only give the amount of the actual bid price for the projects, with the maximum being the $74,212 being requested. Mr. Gonzalez seconded the motion, which carried unanimously. S. PRESENTATION By BOB SULLIVAN, MPEC DIRECTOR Bob Sullivan, Director of MPEC, noted the Facility came under the direction of the City of Wichita Falls as of October of this current fiscal year. A number of items need attention. He and the City Manager are working on a 20 -year plan of capital improvements in order to be able to recognize when things need to be repaired or replaced. He presented a handout of six ranked items at the MPEC facilities that need repaired. He noted that the process requires that he approach the City Council first, and the Council would pass a resolution before he could officially appear before this Board with a request for funds. 4B Minutes = November 3, 2006 5 The list of items in need of repair, and the estimate expense for each, is as follows: Item Rank Item Detail Estimated Expense 1 Door Repair Replace 1 panel and repair folding wall between rooms 2 & 3 14,500.00 Replace locking devices on Ag Center doors 36,000.00 Replace double steel doors in Exhibit Hall B 5,000.00 2 Roof Repairs Aq Center roof repairs 2,000.00 Exhibit Hall roof repairs 12,500.00 3 Electronic Highway Sign Replacement of original sign 100,000.00 4 Floor covering for the hockey rink Portafloor, 10 year guarantee 68,000.00 5 Carpet Remove and replace office carpet 21,000.00 6 MPEC Water Fountain Repair and replacement of existing marble facing and installation of new flagstone facing 16,000.00 Total $275,000.00 Mr. Sullivan provided detailed explanations on these items: 1. A wall panel has ripped at the top of its frame, and the manufacturer stated the entire wall unit will need to be replaced. The locking devices on the Ag Center are damaged to the point of not being useful. The manufacturer went out of business, so the entire mechanism will need replaced. The frame of the steel double doors in Exhibit Hall B was bent by a truck during a load -out. The only way to secure it is to put a bar across the panic bar hardware. When the facility is in use, the bar has to be removed. 2. The Ag Center has a variety of leaks. The Exhibit Hall has a series of leaks between the seam of the administrative offices and the Exhibit Hall itself. Water comes through and stains the ceiling tiles. 3. The electronic highway sign is 10 years old. The technology for this system has to be run on a Windows 95 -based system, which is becoming obsolete itself. The display panels are failing, and the manufacturer no longer constructs this type of sign. The bulbs do not fire properly; sometimes only half a message will appear. Mr. Leiker noted that is not because the bulbs are out; it is the circuit behind the bulbs. It cost $12,000 last year to keep the sign in operation. It is important to have the sign, as it is the first look into the complex from the highway. 4. The hockey rink floor covering is a pressed cardboard material. It starts out one inch thick. However, liquid absorbs into the material. When it is put on, then taken off, the ice, part of the materials sticks to the ice. It wears out through the course 4B Minutes _ November 3, 2006 6 of the years, and it is an unsafe material. It was a low -cost method of covering the floor three years ago, at a cost of $46,000. Technology has improved, and he recommends a plastic roll -out covering that is honeycombed on one side. It can be washed, and does not warp. The current floor requires 12 employees three hours to put up and take down. The proposed flooring takes three employees only two hours to perform the same functions. The new floor costs $64,000, but has a 10 -year guarantee. 5. The administrative office carpeting is 10 years old, and is rippling and fraying at the seams throughout. It makes a bad impression of the offices. 6. The marble facing is deteriorating on the fountain between the Exhibit Hall and the Coliseum. He is looking at replacing it with a flagstone material that is more durable. Mr. Sullivan noted he will fine tune the pricing, but does not expect a great deal of price fluctuation. Mr. Schaffner asked if the roof warranty is expired. Mr. Sullivan replied that he is looking at documentation. There is an issue with the Exhibit Hall warranty, as problems have been evident for some time. The architect and the roofer have both been there, but no one claims responsibility. He believes the solution is to put in a seam and new facing material around that to keep the water from coming in. Mr. Schaffner asked if the electronic sign is under some type of maintenance agreement. Mr. Sullivan noted there will be, with the purchase of a new sign. The manufacturer of the current sign said that nothing else can be done to improve it. Mr. Seabury asked if the MPEC was not originally intended to be self supporting. Mr. Sullivan noted that there is no funding for capital improvements. The deficit funding was coming from the hotel /motel revenue funds. Mr. Leiker noted that the dollars were scraped together for the construction of the facility, and some of the materials used were the least expensive available. There has never been a separate capital improvement fund for repairs. The hotel /motel fund has struggled to pay the operations budget; there has not been any money left over for maintenance. Mr. Schaffner asked if tile, as opposed to carpet, had been considered for the administrative offices. Mr. Sullivan noted it could certainly be looked at as an alternative. Mr. Ayres noted that most of the items fall under the category of normal repairs and maintenance. If the City does not have the money, it has to go somewhere else to find it. He does encourage the City and MPEC to set aside money for these needs at some point. Mr. Leiker noted they are looking at the fee structure, and what options there may be to increase revenue, including an extra fee on tickets to events. 7 4B Minutes = November 3, 2006 7 Mr. Schaffner asked if the increase in the number of hotels in the City is helping with the hotel /motel fund balance. Mr. Dockery stated that the hotel /motel fund has been declining and is pretty well exhausted. Although revenues are increasing, that increase is barely enough to keep up with inflationary costs. He does not anticipate that hotel /motel funds will be used for renovations and replacements. Hopefully, the City can rely to some degree on other sources of funds, such as 4B funds. It is a challenge to find the money. Mr. Leiker concurred, noting that the City is close to having to dip into the general fund to subsidize the operations of MPEC. Mr. Sullivan thanked the Board for their time and attention. The Board then received an update from Mr. Benoit regarding the golf course renovation. Bids are to be opened on February 28, with a request for approval of this project by the Council scheduled for its March 6 meeting. The golf course architect has designed a renovation at a cost of $3.6 Million. He reminded the Board that it had allocated $4.3 Million. The architect still needs to be paid, and renovations completed on other facilities at the course. The City is nearing completion of negotiating a contract for management of the course. A full day of negotiations recently went very well. The agreement includes revenue sharing and some very detailed objective performance standards. The management company will be responsible for collecting money and making investments into the course. This item will most likely be on the Council's March 6 agenda, as well. He assured the Board he will prepare a financial statement. He noted that River Bend got a very substantial, but unexpected, check that equaled the Board's donation, so that piece of the project has been closed out. Alan Donaldson asked the timeline for the extension of Maplewood and the acquisition of properties for this project. Mr. Leiker noted that one or two properties will have to be acquired through eminent domain, which is a 60 to 90 day process. Scott Taylor will be ready to issue bids for the rest of the drainage work and Maplewood extension to Kemp by June. It is the hope that the area will be opened up in time for shopping by November. Mr. Seabury gave the Board an update on his efforts to acquire a Curtiss Jenny aircraft. He approached the Museum of North Texas History's Board of Directors. They have agreed to sponsor the efforts toward a Call Field Road memorial at Kickapoo Airport. He has approached the Priddy Foundation and others, and has raised some money. He needs to first acquire City approval of the use of the airport and hangar for this project. The City Manager told him he would need not only the approval of the City Council, but also that of the Federal Aviation Administration (FAA). He, Barry Macha and Douglas James will appear before the Council with the request when approval has been obtained from the FAA. If approval can be obtained from both the Council and the FAA, he will approach the 4B Board for some funding assistance. The current owner of the Curtiss Jenny is anxious to sell. Mr. Seabury knows of very few such aircraft in 46 Minutes _ November 3, 2006 g existence, and no others are for sale. Wichita Falls was one of a handful of World War I training bases. This would be a very unique and wonderful project for the community. Mr. Leiker explained the FAA is involved because the grant funds it furnishes are to be used solely for the Airport. A revenue diversion clause in the grants prohibits cities from using those airport grant funds on another City use. That revenue clause also states that fair market value must be charged at airports, including rent for office buildings or hangars. The City of Wichita Falls asserts that this situation is unique and deserving of a waiver. The hangar museum could help future business, as aircraft would buy fuel here because they want to stop to see the attraction. The City's grant manager at the FAA in Fort Worth has given his verbal approval, but the next step is to receive this approval in written form. 6. Adjourn The meeting adjourned at 9:25 a.m. Warren T. Ayres President