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4B Sales Tax Corporation Minutes - 07/20/2006MINUTES OF THE 4B SALES TAX CORPORATION July 20, 2006 Present: Warren Ayres, President § Leon Mallonee, Vice - President § Benay Ayers, Secretary- Treasurer § Ray Gonzalez § Corporation Board Members Tommy McCulloch § Bob Seabury § Alan Donaldson § Lanham Lyne, Mayor § City Council Jim Ginnings, Councilor At -Large § Darron Leiker, City Manager § Matt Benoit, Assistant City Manager § Scott Taylor, Director of Public Works § Jim Dockery, Director of Finance § Dave Clark, Dir. of Community Development § City Staff Jack Murphy, Dir. of Parks and Recreation § Dennis Bachman, Chief of Police § Laura Drury, Deputy Chief of Police § Earl Foster, Fire Chief § Blake Jurecek, Information Systems § Linda Merrill, Recording Secretary § David Bindel, Executive Director § Jeff Franklin, Board President § River Bend Nature Center John Hirschi § Jay Cottrell § Robert Morgan, Reporter § Times Record News Randy Schaffner § Attendee Bill Drake § Golf Course Renovation Study Don Lancaster § Committee Member Attendees 1. Call To Order President Warren Ayres called the meeting to order at 1:40 p.m. 46 Minutes — July 20, 2006 2 2. Approval Of Minutes (March 10, 2006) Tommy McCulloch moved, seconded by Alan Donaldson, for approval of the minutes. The motion carried. 3. Consider Request from River Bend Nature Works David Bindel, Executive Director of River Bend Nature Works, updated the Board on the improvements being made at the Center. He expressed his appreciation for the money previously given to the Center by the Board, noting it went to construction (of the conservatory and visitor's center). Construction will be completed this fall. Ninety percent of the funds provided have been spent on the design of the nature conservatory and its exhibits. They have been good stewards of the money provided. However, the costs of fuel and construction materials have risen due to Hurricane Katrina. Mr. Bindel noted the facility would provide year -round education for all ages, establish a continuous revenue stream, and increase tourism to Wichita Falls. Visitors to the Center have increased from 5,220 in 1997, to 24,730 in 2005. He believes the Center will develop its own niche to interpret the regional and local ecosystem. Its goal is to connect people to the area's natural environment, and be a model for resource conservation. The Center currently employs 4.5 full time employees; they intend to raise this number of 12 to 15 full time employees. River Bend has received sponsorship support from various area businesses. They intend to conduct a capital campaign, and seek grants from local civic organizations. It is more efficient to complete all the construction at one time, and all the components of the expansion are necessary for success. 4. Conduct A Public Hearing On The Request From River Bend Nature Works Mr. Ayres opened the public hearing at 2:03 p.m. Jay Cottrell stated that the expansion of the Center would benefit the entire community. Darron Leiker asked how the project was bid. Mr. Bindel replied the project was bid in phases; they locked in on steel and glass. Mr. Ayres stated the request appears to ask for ongoing operations and marketing funds. Mr. Gonzalez concurred, stating that $685,000 of the Center's request appears to be for operational -type items. Mr. Hirschi replied that these dollar amounts have been in existence since early in the project. Mr. Bindel stated that neither Dallas nor Oklahoma City has such a center; the closest cities with any similar facilities are Houston and St. Louis. The Center will 46 Minutes — July 20, 2006 3 charge admission fees, membership fees, and request donations, similar to the Kemp Center for the Arts. Jeff Franklin states the Center could be self- sustaining after the first years. The start-up funds make up a large portion of the $600,000. The Center's architect at the time of Hurricane Katrina was EDR, of New Orleans. Its offices were completely destroyed in the weather disaster; it was six weeks before they could even make contact. EDR could not generate a lot of the information already provided. They were forced to change architects, and this increased the costs for the project. Mr. McCulloch thought the Center's original request was going to be its only request. The cost overruns are quite high compared to other projects. The total project cost is up 33 %. Mr. Mallonee's concern was that the Center approached the City before conducting its capital campaign. Mr. Bindel replied that River Bend was invited to make this presentation by Mr. Benoit. Costs for copper and steel have gone up more than 30% since Hurricane Katrina. Mr. Ayres stated it is an outstanding project, but he has a problem authorizing operational funds. Mr. Bindel said they would appreciate any funding granted. The public hearing was closed at 2:19 p.m. 5. Consider Project Approval of River Bend Nature Works Request Bob Seabury expressed concern about authorizing money now, when there are several other requests before the Board today. Mr. Benoit referred the Board to the spreadsheet dated June 12, 2006. The Board has an unencumbered fund balance of $5,351,755. However, with $3 million allocated to the McGrath Creek Crossing, about $3.3 million of that is the net unencumbered balance. Benay Ayres suggested the Board hear all requests before making any final decisions on any particular request. The River Bend item was tabled pending discussions of the other requests before the Board. Upon discussion, Ms. Ayers stated she is inclined to move to allow funding for actual construction costs. Mr. Ayres suggested the proposal be to fund on a matching basis. Ms. Ayers moved to require River Bend Nature Center to match 4B funding of $240,000 for the visitor's center and the conservatory. Mr. McCulloch agreed, stating it would provide the Center with an incentive to raise the money. Mr. Mallonee seconded the motion, and it was unanimously approved. Mr. Bindel thanked the group for its assistance. 46 Minutes — July 20, 2006 4 6. Consider Request for Renovation to Weeks Park Golf Course Mr. Benoit reminded the Board that an analysis of Weeks Park Golf Course was performed by Sirius, the City's consultant, in November - December 2005. The results of that analysis were provided to the Board in February 2006. The recommended renovation model costs $4 million. If the Board were to issue debt for the $3 million it approved for the TIF #2 improvements, and $4 million for the golf course, a little less than half of the Board's revenue, or $1.5 million, will be eaten up by debt service for two years. The Board has three years remaining of the existing debt service that was issued in 5 -, 10- and 15 -year increments for the training center, radio program, and CAD /RMS projects. By 2009, the Board will have exhausted its five - year commitment, and as time goes on (2014, 2019), it is released from existing obligations. The costs for renovation include the golf course architect engineering fees. If the decision were made to explore third -party management, the City would like to involve Sirius ($22,000) to develop a comprehensive plan, write the RFP, review the responses, do golf course visitations, conduct interviews, and negotiate a contract. Another $20,000 would be payable to Sirius to help with the transition, should the course be turned over to a third party. There will be continual questions about this process, as the City has not turned the course over to a third party in over 20 years. Sirius would be available to answer these questions on an as- needed basis. Mr. Benoit stated that all public golf courses in the region cater to the same customer. Potential rounds played by higher income families are lying dormant. There are 280,000 visitors to Wichita Falls per year. If the course here is nicer than the one on which tourists play at home, they will utilize the course. Local customers desire improvements to the course. They would like a driving range, and are willing to pay more per round. The least expensive renovation model costs $2,877,269. It involves no holes being moved, and no driving range. Instead, it concentrates on the irrigation system, drainage, widening of the cart paths, and replacement of the cart barn. Two contractors, both of whom were inexperienced at installing golf course systems, installed the irrigation system. Excessive discharge pressure has caused pipe and valve failure. The irrigation pond is undersized and difficult to maintain. The course floods with only a 2" measure of rain, and does not drain well. The Golf Course Renovation Study Committee consisted of 15 members, both golfers and non - golfers. The Committee's recommendation is for $4 million to be spent on the course. The recommendation includes a driving range ($250,000), and reworking of some holes on the front nine ($50,000). The costs would increase to $4.3 million to make hole improvements on the back nine, as well. The committee did not recommend phasing of the renovation, but did recommend exploring third -party management. 46 Minutes — July 20, 2006 5 The driving range will add revenue at very little operational cost. Located by the clubhouse, it would be neither netted nor fenced. It is the least expensive model that includes a driving range. The revised layout will allow for an increase of $5 more per round, and potentially capture dormant rounds. It is far enough away from its current condition without competing with the Country Club. Mr. Benoit discussed advantages /disadvantages of third -party management. SELF MANAGEMENT THIRD -PARTY MANAGEMENT Advantage: maximum control Advantage: less control; greater level of experience; ability to pay employees outside the City's pay and classification plan Disadvantage: employees have Disadvantage: management and less incentive to see the course company turnover succeed Carrollton renovated its two golf courses. Although they operate under third -party management, Carrollton supervises upper management, and can require that more staff be hired. In addition, it determines how much money will be spent on advertising, and can require a level of instruction for the golfing public. Mr. Seabury questioned how many days in the past five years the course had been closed due to flooding. Mr. Benoit replied that it happens three to four times during the spring season. It does not take much rain for the course to close for a day due to standing water. Mr. McCulloch asked if the course was constructed in the floodplain. Mr. Benoit did not know, but cities often put parks in the floodplain. Mr. Leiker asked if the revenue spreadsheet included repayments from the TIF zone. Mr. Benoit replied that it did not, and agreed that those revenues will increase the unencumbered funds balance. Randy Schaffner stated the topography issues of the golf course cannot be overcome. He expressed a desire that the reversionary clause be worked out, so that the land could be sold and a new golf course built elsewhere. He asked if the City is interested in a nine -hole executive course, and Mr. Benoit replied that an 18 -hole golf course is desired. The general feeling expressed by the committee is that a city of this size needs to have a municipal golf course, and it needs to be nice. Don Lancaster mentioned that he played at Weeks Park twice this week, and he feels the golf course and the greens are in excellent condition. 46 Minutes — July 20, 2006 6 7. Conduct A Public Hearing On The Request For Renovation To Weeks Park Golf Course The public hearing was declared open at 3:12 p.m. Bill Drake noted that he served on the committee. He believes improvement to the golf course is necessary to help build up the City. He feels it would be an injustice if the course were not improved. Mr. Ayres expressed concern that the committee's recommendation hits only 75% of what should be done. He is concerned the recommendation makes changes only to the front nine. Ms. Ayers concurred; she does not want the Board to wish it had spent more at a later date. Mr. McCulloch, who served on the committee, noted the committee had to contend with all the other needs of the community. They would have been happy to spend $5.6 million, if money were no object. Mr. Ayres asked if the $4 million is just a band -aid, adding that perhaps the $5.6 million ought to be approved. Ms. Ayers did express concern on how to determine the break point where the course would start to compete with the Country Club. Mr. Benoit replied that Scenario 3B included an $8 to $10 increase per round, which was felt to be excessive. Mr. Donaldson asked if a rezoning request by Lavonne Bell on Wellington Road, to possibly include a driving range, would have any effect on this proposed improvement. Mr. Benoit stated the only available driving ranges are at the Country Club and Hawk Ridge. It is not a crowded market. Mr. McCulloch stated that the committee agreed the big issue concerning the golf course has been lack of management and mistakes. He hopes things are improving, under the leadership of Mr. Leiker and Mr. Benoit. Mr. Leiker stated the Council expects staff to take a hard look at third -party management. The public hearing closed at 3:25 p.m. (The Board took at five - minute break at 3:34 p.m.) 8. Consider Project Approval For A Renovation To Weeks Park Golf Course This item was tabled until all presentations were made. Upon discussion, Mr. Benoit noted that about $80,000 is used, for principal and interest, on $1 million debt service on a 20 -year obligation. Mr. McCulloch asked to be reminded why bonds were issued in 5 -, 10- and 15 -year increments for the previous 413 Minutes — July 20, 2006 7 funding of the communications project. Mr. Dockery stated that was done to correspond with the life expectancy of the equipment purchased. Mr. Seabury asked if the airport terminal is eligible for 4B funds. Mr. Leiker replied affirmatively. However, the FAA has an Airport Improvement Program. In order to qualify under that program, the City must either own the land or have a long -term lease of 20 years or more. The City's current lease expires in 2009, and conditions look good for renewal. In addition, the City has applied for a $22 million grant for a new terminal, and is awaiting word. There is a possibility, as well, to add a fee to ticket prices. Lawton financed their terminal improvements through a $2.50 passenger facility charge on tickets. Mr. Seabury urged improvements be made to the terminal, as 70% of the population uses it, and it is the first impression many visitors have of Wichita Falls. Mr. Ayres brought the discussion back to the golf course, reiterating that he is concerned that the $4 million does not affect the back nine holes. He recommends spending up to $4.3 million to include renovation on both sides of the course. Ms. Ayers seconded the motion. The motion carried. 9. Consider A Request For Professional Services To Assist With Mobile Data Terminals Mr. Benoit noted that 4Y2 years ago, RCC conducted a needs assessment, and determined the need for a three - tiered communication project. The two -way radio project was approved, and has been in operation for about a year. The CAD /RMS portion of the project is almost completed. The third tier is the mobile data terminal project. Staff was not comfortable requesting another $3 million in addition to the $7 million already spent on this project for a time. In addition, there was not enough staff in Information Systems to handle on such a project. The City would like to explore the options available for the purchase of mobile data terminals, and wants to rehire RCC Consultants to assist with the process. Chief Foster expressed his pleasure that dispatch orders will appear on the screen for his officers. Chief Bachman noted that briefings could be loaded into the patrol cars, and it would negate the need for officers to call in to dispatch. In addition, the officers would have information, such as pictures of an interior of a building, in the event of a hostage situation. The terminals could hook into the camera security system of a building, allowing officers to know the layout of the building. Mr. Benoit stated it should be a competitive market. Ms. Ayers asked if RCC would help find other cities that have mobile data terminals. Mr. Benoit replied affirmatively. 4B Minutes — July 20, 2006 8 10. Conduct A Public Hearing On A Request For Professional Services To Assist With Mobile Data Terminals Mr. Ayres declared the public hearing open at 3:46 p.m. Mr. Leiker noted that the City will hire two additional Information System staffers to manage this large project. The response from the Council has been favorable. The public hearing was closed at 3:48 p.m. 11. Consider Project Approval For Professional Services To Assist With Mobile Data Terminals This item was tabled until end of presentation. Upon discussion, Mr. McCulloch moved that the sum of $194,750 be approved for professional services to assist with the Mobile Data Terminals project. The motion, seconded by Mr. Mallonee, was unanimously approved. 12. Presentation And Discussion On A Skate Park In Wichita Falls Jack Murphy stated that the City Council identified a skate park in its strategic plan last February. There are two kinds of skate parks: a modular and a flow or street plaza type. The modular is the least expensive, and built of wood, steel, concrete, or composite material. It is bowl- shaped; the flow or street plaza type allows skaters to start at one end and flow in a line. Concrete is the preferred material, as it requires low maintenance, lasts at least 50 years, and there is less noise associated with it. However, it is the most expensive medium, and construction requires an experienced contractor. The typical size of a modular unit is 10,000 sq. ft., at a cost of $75,000 to $300,000. Various sites under discussion include the following: SITE ADVANTAGE DISADVANTAGE South Weeks Park High visibility; restrooms, parking Limited growth; not in center of community Softball Complex At sports complex location, off No parking lot or restrooms 1-44, lar a growth potential Spillway Area On trail system; high visibility Limited growth; not center of community, no restrooms TESCO Park Center of community; restrooms; Limited growth area; noise parking; concession stand factor near neighborhoods) 46 Minutes — July 20, 2006 9 Mr. McCulloch asked how much use the park would receive. Mr. Murphy replied that it would be moderate to heavy for a city of such population. He cannot think of a city this size that does not have a skate park. Mr. Donaldson asked if the Rotary Club is still interested in helping with the project. Mr. Murphy said they are still interested. Due to financial limitations, they could probably assist with amenities, such as a shelter. Mr. Seabury asked Mr. Murphy's preference in locations. Mr. Murphy stated he prefers Southwest Parkway, but they would all work. The least desirable is the spillway area, due to the limited space for growth. Mr. Ayres asked if the skate park would interfere with current activities at South Weeks Park. Mr. Murphy felt the skate park would complement the family -type activities. Mr. Seabury asked if the City would charge admission to the skate park, and have a supervisor on site. Mr. Murphy replied there would no be on -site supervisor. The City would post a sign that skaters use the park at their own risk, and the use of helmets and pads is encouraged. The state legislature has relived cities from liability to encourage the development of such parks. He cannot find where a city was sued successfully for providing a "dangerous facility." Mr. Seabury asked if a skate park would attract a bad element. Mr. Murphy stated that is one reason why the park should be in an area of high visibility. He noted that in other cities there has been some conflict with bikers using the skate parks. These activities should be separated. He suggested the skate park might be open to bikers one day a week to accommodate both groups. Ms. Ayers replied it would be a good addition to the City of Wichita Falls. She noted that, despite skaters' outward appearances, they do not cause problems. Mayor Lyne concurred, noting the participants cannot be high and put forth the physical exertion they do while skating. Mr. Murphy noted the park would be self - patrolling, as are the trails. The people who use them regularly report problems. He acknowledges the possibility of graffiti, noting the Parks Department's policy is to remove graffiti within 24 hours of observation. Mr. McCulloch asked for the amount of the City's request. Mr. Murphy replied the City is not prepared to discuss the cost of the project. Mr. Leiker clarified this is an "FYI" item only; the City might appear before the Board at a later date with a formal request. 413 Minutes — July 20, 2006 10 13. Presentation And Discussion On Tax Increment Financing District #2 Improvements Scott Taylor stated that only one bid was received for the McGrath Creek Crossing project. It was bid at almost $6.2 million, above the City's estimate of $5 million. The City rejected that bid, and will now re- advertise in phases. Phase 1 will be to meet the City's contractual obligation with Quail Springs Shopping Center to construct two lanes of Maplewood and widen Lawrence Road in front of their property. The project will bid on August 7. Other phases include: (a) drainage improvements (material taken out of TESCO Park would be used for construction of Maplewood), and (b) construction of the rest of Maplewood (includes signals at Kemp and Lawrence, and lighting on Lawrence and Maplewood). Dave Clark then addressed the Board. In preparation for the TIF #2 program, staff was conservative and realistic in the numbers. Happily, the increments are ahead of schedule. Kohl's, McAllister's, and Powerhouse Gym were captured. Logan's Roadhouse, part of Phase 2, is open for business, and the furniture store's construction is coming down the stretch. Staff cut back a bit on the numbers they were given regarding the Quail Springs Shopping Center. However, those numbers are now being confirmed. The Ember Shop was not included, but it is now open, and there are rumors that more businesses may come into the district. 14. Presentation And Discussion On The Proposed 2006 -2007 Annual Budget Mr. Benoit referred the Board to the spreadsheet reflecting the 2007 fiscal year budget. The sales tax collections are calculated by looking at the year -to -date growth, which is at 9.8 %. That figure is applied to the most recently completed fiscal year (2005), because there are four to five additional installments expected, and staff prefers to be conservative in its estimates. Interest earnings are estimated at $240,000. There is an estimated $30,000 reimbursement expected from the TIF #2 district. Total revenues are estimated at $3.5 million. The debt service payment is $933,215. The expenses for the CAD /RMS are increased, as last year's estimates were for only part of the year - $70,000 for software maintenance and $85,000 for radio maintenance. This year, expect $127,500 for radio maintenance, and $105,000 for software maintenance. These are four -year estimates, as long as the Board chooses to approve the funding. 4B Minutes — July 20, 2006 11 Tim Chase was unable to attend today's meeting, but the request for funding for the military affairs director is a five -year continuing request. There has been no drawdown on this money yet, as they have yet to hire a director. Mr. Benoit informed Mr. Chase that the Board might appreciate an update on the process. Based upon Mr. Benoit's projections, the Board would have $7.5 million at the end of the year. Ms. Ayers asked how much the debt service is expected to decrease after the five -year obligation. Mr. Dockery estimated $500,000. 15. Consider Approval Of The 2006 -2007 Budget Ray Gonzalez moved, seconded by Mr. McCulloch, that the budget be approved. The motion carried unanimously. 16. Presentation And Discussion On Required Training For Open Meetings And Open Records Mr. Benoit stated that by order of the State Legislature, all 4B and 4A members are required to take training on Open Meetings and Open Records. He offered to hold training for the entire board at one time. There is a DVD, and online training, available. A detailed memo will be provided to the Board, outlining their options to take such training. 17. Adjourn The meeting adjourned at 4:54 p.m. Warren T. Ayres President