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4B Sales Tax Corporation Minutes - 10/07/2003MINUTES OF THE 4B SALES TAX CORPORATION October 7, 2003 Present: Rick Boone, President § Ray Gonzalez, Vice President § Arthur Bea Williams § Corporation Board Members Bill Altman § Tommy McCulloch § Jim Berzina, City Manager § Matt Benoit, Assistant City Manager § City Staff Jim Dockery, Director of Finance § Ken Coughlin, Chief of Police, WFPD § John Vasquez, WFPD § Harold Lindsey, Chief, WFFD § Captain Earl Foster, WFFD § Linda Merrill, Recording Secretary § Absent: Benay Ayers, Secretary Treasurer § Corporation Board Members Leon Mallonee § Louis Wilson § Tarin Carter § Castaway Cove Representatives Kevin Darnell § I. Call To Order President Rick Boone called the meeting to order at 3:35 p.m. II. Approval Of Minutes (September 4, 2003) Tommy McCulloch moved to approve the minutes of September 4, 2003. His motion was seconded by Ray Gonzales and Arthur Bea Williams, and unanimously approved. III. Consider A Request From Castaway Cove Water Park Dr. Louis Wilson is one of a group of 90% local investors building a water park on Highway 287 near Love's Country Store in southeast Wichita Falls. Building the park 4B Minutes — October 7, 2003 2 has grown to be quite a challenge, he noted, adding that municipalities are developing most new water parks. Castaway Cove is being developed as a high quality attraction for area residents and tourists. The request of the 4B Board today concerned certain infrastructure costs, including extension of the sewer line, relocation of the water line, extension of certain utilities to the site, as well as money for storm water retention. Tarin Carter addressed the Board in her capacity as a public relations /marketing official with Castaway Cove. Ms. Carter stated Wichita Falls has the lowest rate of overnight hotel stays compared to other markets in the State of Texas. Castaway Cove will bring economic growth and revenue to the City, and give tourists a reason to stay "one more night" in Wichita Falls. The park's season will run concurrently with that of the Thunder arena football team. She is working with that organization, and with the Plex, to bundle tourism packages. Ms. Carter is also in contact with the hotel industry. Ms. Carter continued, stating that country singer Aaron Watson is releasing a CD at the time of the opening of Castaway Cove, and he will perform at the grand opening. They hope to also get Jimmy Buffet and James Taylor to appear at the park, as well as local entertainers. Clear Channel is building a radio station. The park will also have a Master Blaster, a popular attraction at Schlitterbahn Water Park. Dr. Wilson interjected, stating that Amusement Business Weekly is running a three -year follow -up on the progress of this water park. Water parks do not do well in traditional tourist areas, such as honeymoon or gambling sites. They do well in factory and farm communities. The problem being faced with this park is that no local banks or contractors have built a water park before. He stressed that the investors have cut everything possible while still maintaining a quality product. The park is in a good location, and will be a seasonal employer for 100 full -time employees. Tommy McCulloch asked how many days the park would be open. Dr. Wilson stated 110 days. The park is to be built based upon a feasibility study by Land and Leisure. President Boone expressed concern regarding the use of City water, especially when the lake levels are low. Kevin Darnell stated the park is designed to use less water than the City uses to water the plants on the street islands throughout Wichita Falls. It is also designed to reuse every drop possible. Dr. Wilson stated Castaway Cove would be an insignificant strain on the City's water resources; the park would in effect be buying water the City would otherwise lose through evaporation. He visited with City staff regarding the use of effluent water, but was encouraged to buy City water. Arthur Bea Williams stated that she had heard the park had agreed to haul water to the park, if water shortage became an issue in Wichita Falls. Dr. Wilson replied that the park would be subject to the same curtailment of water as the rest of the City in any drought emergency; if it became necessary to haul water in, they would do so. 4B° Minutes — October 7, 2003 3 President Boone asked if the park would be under the same restrictions as are swimming pools. Dr. Wilson replied yes, that the park is a low -depth swimming pool. Ms. Williams asked if the park had considered the use of chemicals to ward off evaporation. Mr. Darnell stated those types of chemicals are tailored for water that will stand still when not in use, not for water parks. Bill Altman asked if the park is going to run its own filtration system. Mr. Darnell replied that while the park does filter and control chemical levels, it is not set up as a water treatment facility. Councilor Norrie asked if it operated according to pool standards, and Mr. Darnell replied affirmatively. Ms. Williams asked for further explanation regarding the funding request for the sewer extension. Mr. Darnell explained that a 2,500 -foot extension of the sewer is required. The sewer comes to the property at its northeast side; to extend to the actual site will cost $21,200. This extension would allow the rest of the property along that line to be developed; no sewer line currently exists from the Wayfarer Motel to Love's. Mr. Darnell then discussed the request for relocation of the existing water line. The City has a 12" water main along the front of the park property. The elevation of the line is 18" above street level. Dr. Wilson interjected that it does not meet City standards. Mr. Darnell stated that access to the site would undermine the line in its current location. Dr. Wilson added that the line would have to stay operable during construction, as it serves several properties. Mr. Benoit asked if the main is big enough for the park's needs. Mr. Darnell stated the size is fine; it is only the physical location that is the problem. Mr. Darnell continued, stating a 2" fiber optic phone line and a 1" phone line were too shallow. The cost to relocate through SBC is $5,000. In addition, Oncor has established a policy of charging to bring power to new development. Electric service will cost $50,000; gas service, $15,000. Mr. McCulloch asked how much of these improvements costs are a surprise to the investors. Mr. Darnell stated all but the storm water and sewer issues. IV. Conduct A Public Hearing On The Request From Castaway Cove Water Park A public hearing was opened for comments regarding the request from Castaway Cove. President Boone requested public discussion. City Manager Jim Berzina stated that he would love to see the project come to fruition, but not at what it may cost down the road. He stated that most businesses will make the claim about the revenues they will bring to the city, but he does not think the 4B sales tax was passed for this type of venture. He stated the board does not have the kind of money that is being requested, as it would be requested by other businesses in the future, if approved for Castaway Cove. This type of investment should stand on its own. 4B' Minutes — October 7, 2003 4 No other public comments were made, and President Boone closed the hearing. President Boone then stated that he believed it is a great project for Wichita Falls, but has concern over public money being spent to support this private enterprise, which will compete with other businesses for dollars. Mr. McCullough agreed, stating that he hoped it would be a successful project, but the request being made was not the purpose of the 4B monies. Mr. Gonzales expressed his concern that at nearly every Council meeting, some citizen will speak about not having water extended to their properties, such as with the Kovarik Road annexation. Mayor Altman stated that it would signal a significant change in direction for the use of 4B funds. At some other point in time it may be considered, but at present, the Board has other projects running millions of dollars over budget. Ms. Carter replied that while she understood their position, she did feel that other businesses would not bring people in to Wichita Falls to the magnitude this park will, and in order to have economic development, sometimes things have to be done in a new and different way. She thanked the Board for their time and consideration. V. Consider An Amendment To The Board's Fiscal Year 2003 -2004 Budget For The Castaway Cove Water Park Project No amendment was considered or made. VI. Consider A Presentation And Recommendation On A Computer Aided Dispatch And Records Management System Mr. Benoit stated that Requests for Proposal were solicited in April for the CAD /RMS system. Ten proposals were received in June; two were non - compliant. The City limited RCC Consultants' review to three vendors. Those vendors held demonstrations in August and September. RCC Consultants recommended Motorola. Despite this recommendation, the City chose to negotiate with IPS (Intergraph Public Safety) because that company's system is most similar to the City's current operations. The demonstration showed a high - quality, cost effective product. The City's Information Systems division is of the belief that, with tutoring and assistance, the software could be installed in- house. IPS offers 24 -hour support, and would have the ability to tie remotely into the system. VII. Conduct A Public Hearing On A Computer Aided Dispatch And Records Management System President Boone asked for details on the warranty. Mr. Benoit stated the first year of the warranty is either free or nominal. The cost for years 2 through 5 is around $740,000. He has proposed that 4B pay for years 2 through 5, and the City would then 4B-Minutes — October 7, 2003 5 determine if it would request further financial assistance from the Board for the subsequent years. President Boone asked about the training to be provided. Mr. Benoit replied that it is not intended that everyone be trained. Mr. McCullough stated that the cost for the warranty seems shockingly high. Mr. Benoit stated he had a cost analysis spreadsheet, which showed all vendors' prices were high. He understood the Board's concern, but noted that if something went wrong with the system, the City would want attention very quickly. Neal Howard stated the warranty is on the software and services provided. Jim Dockery stated that also includes the time and energy IPS would spend on -hand. Mr. Howard opined that the term "warranty" is misleading. Chief Coughlin stated that the $740,000 is for a term of five years. Mayor Altman added that the cost for the first year is $131,000. Mr. Benoit stated the City would purchase workstations (including monitors, towers, keyboards) at a cost estimate of $678,000. The fiber link cost is at $150,000. Mr. Benoit has tried to contact the City's RCC Consultant. However, he is currently in Kuwait City. He will speak to him upon his return regarding the difference between the cost estimate for this project and the proposal prices submitted by the vendors. President Boone asked if the consultant would review the bid. Mr. Benoit replied no, but he may be able to give the City an explanation as to why there is a vast difference in price. There were ten vendors in a pretty competitive environment. Mayor Altman asked if the consultant attended the demonstrations. Chief Coughlin replied all except the last one. Mr. Benoit stated there were three consecutive demonstrations scheduled. IPS then had to reschedule. RCC saw the presentations of Motorola and Tiburon, and had already made a recommendation based on paper. Mayor Altman added that the recommendation was a 50 -page detailed analysis of the RFP. However, that does not belie the fact that, had RCC viewed the IPS demonstration, it might have made a different impression. He does note that RCC said all three systems are capable of doing the job. Mayor Altman stated that all three proposals had a substantial number of deviations from the Request for Proposal, which affected the rating system. While IPS may very well be the best, he would like RCC's opinion on those deviations to make sure they are not significant. John Vasquez noted that in the responses to the Request for Proposal, both IPS and Tiburon noted certain features were not available at the time, but would be in the future. Those companies received lower marks due to that unavailability. However, by the time of the demonstrations, those features were available. So, IPS's evaluation should be scaled out more evenly with that of Motorola's. 4B- Minutes — October 7, 2003 6 Mr. Benoit stated that $848,851 is eligible for five year Certificates of Obligation, and $150,000 is eligible for ten year Certificates. There is a need for an initial capital investment of $5,000 per seven fire stations (all except Central) for the leasing of a dedicated digital line from Southwestern Bell to allow fire stations to have access to reports in the central records system. Mr. Howard stated it is a pair of routers and a box, comparable to high -speed DSL home Internet. There would be a monthly charge of $220 per link. The Board urged Mr. Benoit to speak with the RCC Consultant upon his return to the States. Ms. Williams noted that the Board could not have too much information. Mr. Benoit assured the Board he would work to itemize the costs involved. Mr. McCullough asked if the City had contacted a customer of IPS. Chief Coughlin stated that Wichita Falls records and dispatch employees met with employees of Grand Prairie, which uses an IPS system. They were very pleased with the system. Mr. Vasquez expressed his pleasure in the demonstration that IPS gave to the City, as it tailored their presentation based upon the City's current procedures. Ms. Williams asked if the in -house Information Systems staff would be able to handle the extra work. Mr. Dockery stated there are currently two techs assigned to the police department. Initially, there will be more than those two employees working on this system. Once the push to go live is completed, however, those two employees should be sufficient to handle the needs of the department. Mayor Altman noted that in 2001, a Council subcommittee was appointed to study the CAD /RMS needs. Due to certain miscommunications, that subcommittee has not been involved in this project until last Friday. He had the opportunity to study the materials over the weekend, but the subcommittee will look further into this issue, meet with RCC Consultants, and invite some of the 4B members to attend that meeting, as well. Mr. Benoit stated the time used to further study this project would help the training center construction progress. Had the original timeline been followed, some products would be ready to ship, but the building would not be ready. Mayor Altman replied that the City is on borrowed time on the old system. President Boone closed the public hearing. VIII. Consider An Amendment To The Board's Fiscal Year 2003 -2004 Budget For A Computer Aided Dispatch And Records Management System No action was taken on this item. 4B-Minutes — October 7, 2003 7 IX. Consider A Presentation On The Financial Forecast Mr. Benoit noted to the Board that he took away the 20 -year debt obligation, and reduced it to 15 years. No action is needed on this item. Mayor Altman asked why he did this action, and Mr. Benoit replied it is a finance issue. Mr. Dockery added that the Board could not issue more than $10 million in any one calendar year. Mayor Altman stated he did not disagree with the action, but wondered instead why the interest rate was not locked in. Mr. McCullough stated it works both ways. X. Consider A Resolution Signifying The 4B Board Of Directors' Intention To Pay Debt Service For Certain 4B Projects Mr. Benoit stated that if the Board does not want debt for these projects until the contracts are approved, then the resolution should not be passed. He can still work to modify the figures, and the financial forecast will be affected if the Training Center is continued to be paid for with cash. President Boone asked if the Board would not be agreeing to a particular dollar amount. Mr. Dockery stated the Board would issue for $7.55 million. The Council would publish the notice of intent to issue, and sell the bonds. If the projects were reduced, the Board would have leftover bond proceeds. Mr. Benoit stated the interest rates are the wildcard. President Boone asked how much they might fluctuate. Mr. Dockery stated it would not be drastic. Mr. McCullough suggested the Board move forward, as the rates are more likely to increase than decrease. Mr. Dockery stated that bonds have been issued with estimated figures in the past. President Boone moved that the Board approve the resolution; Tommy McCullough and Ray Gonzales seconded the motion, which was unanimously approved. XI. Consider An Amendment To The Board's Fiscal Year 2003 -2004 Budget For The Two -Way Radio Project Mr. Benoit stated the Board's cash responsibility for the two -way radio project will not be $6.6 million, but closer to $2.291 million. The financial statement ends up with an unencumbered cash balance that unnecessarily inhibits the Board's ability to take on future projects. With this adjustment, the Board is recognizing a more accurate cash responsibility for that project. In effect, the budget amendment that occurred for the Fiscal Year 2002 -2003 of $6.6 million would go away. The Fiscal Year 2003 -2004 budget would be amended in the amount of $2,291.969. 4B- Minutes — October 7, 2003 8 Mayor Altman so moved, Ray Gonzales seconded the motion, and it was unanimously approved. XII. Adjourn. The meeting adjourned at 5:33 p.m. Linda Merrill Recording Secretary �6VL (0 Benay Ayers Secretary Treasurer