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4B Sales Tax Corporation Minutes - 09/04/2008MINUTES OF THE 4B SALES TAX CORPORATION September 4, 2008 Present: Warren Ayres, President § Darron Leiker, City Manager § Alan Donaldson § Corporation Board Members Charles Elmore § Jim Ginnings § Randy Schaffner § Bob Seabury § Rick Hatcher § City Council Liaison Matt Benoit, Assistant City Manager § Cheryl Elliott, Recording Secretary § City Staff Rodney Case § Morris Stone § Wichita Falls Little League Mike Cox § Delores Cully § Wichita County Heritage Society Stacie Flood § Dwayne Jackson § Wichita Theatre Doug Bums § 1. CALL TO ORDER Warren Ayres called the meeting to order at 3:35 p.m. 2. APPROVAL OF MINUTES (MAY 15, 2008) Randy Schaffner moved, seconded by Alan Donaldson, that the minutes be approved. Jim Ginnings noted that "Brian Edwards" should read "Bryant Edwards" on page 4). With that correction, the minutes were unanimously approved. 3. CONSIDER A REQUEST FROM THE WICHITA FALLS LITTLE LEAGUE Rodney Case said the Wichita Falls Little League (WFLL) complex currently has seven fields. The League has experienced tremendous growth in the past couple of years, which led to an extension project last year to add two fields to the complex. 48 Meeting Minutes — September 4, 2008 2 Mr. Case provided a balance sheet for the finances of the WFLL for the past three years. The League received a grant of $80,000 from the Priddy Foundation in 2007, almost all of which has been spent. Moms Stone said the WFLL has a lease for that land with the WFISD. It furnishes the water and does the mowing. If the School District needs to expand, the League could lose those fields. Mr. Case added that the League has to get permission from the school superintendent before any expansion is contemplated. They continue to receive encouragement to build. Mr. Stone said the League raises money through one major fundraiser each year, by selling signs and banners, and through team sponsorship. The cost to play in the WFLL versus through the YMCA is about the same. Mike Cox said the League provides an unadvertised scholarship program for children whose families cannot afford the costs associated with play. The League hosts tournaments in April, May and June to raise money to offset costs for families of players in Wichita Falls. He estimates at least 2,500 visitors come to Wichita Falls during summers due to these tournaments, with at least half of those shopping, dining, and staying in area motels. Additional field space would qualify Wichita Falls as a site for a state tournament. The fields are being built, but the speed of construction depends on funding. Randy Schaffner asked the relationship between the Junior League - sponsored field and the WFLL. Mr. Cox said that five years ago, the League started a Challenger baseball division for physically /mentally handicapped teams. They spoke with the Junior League about raising the money to build a special field. The Junior League took on this effort. It will now be a Miracle League, rather than Little League, program, but the League will still be involved. The construction bid came back a little high, so they will either raise more funds, or delete some items from the first phase. He heard that the field should be ready for this coming season, although ground has not yet been broken. Mr. Ayres asked the age of participating children. Mr. Cox replied that children ages 4-12 are accepted into the League. There is also a junior League program that is not Little League, but is still under the WFLL umbrella. It is for kids ages 13 and 14. There is no age limit in the Challenger division. Darron Leiker said the City receives complaints because people park in the dirt area, and the sidewalks are damaged and broken. According to City ordinance, parking surfaces have to be hard surface or at least rock. Mr. Cox said the League planned to build a road and parking lot between fields 8 and 9. No parking is allowed on Barnett Road. They have heard no complaints, and the School District has not said anything to them. At one time, they were tearing up the sidewalk more than it already was, but they constructed a drive approach. The League needs to build a parking lot in the near future, but new fields have to be built first in order to generate revenue. They will try to control parking as best they can. However, the sidewalk is torn up for 700 to 800 feet, and they have not been driving over that much of it. 4B Meeting Minutes — September 4, 2008 3 Mr. Ginnings asked if the players are graded. Mr. Cox said the kids try out, and every one gets on a team. There may be some pressure on the kids through the tryout system, but this is done in order to make balanced teams. It is competitive, but fair to the kids. 4. CONSIDER A REQUEST FROM THE WICHITA COUNTY HERITAGE SOCIETY Delores Culley, Executive Director for the Wichita County Heritage Society (WCHS), introduced Stacie Flood, curator of the Kell House. Ms. Culley said they intend to build a ramp on the Kell House. The original drawings done for this ramp were done by an architectural firm out of Austin over a year and a half ago. The cost at that time was $28,000 to $30,000 for the ramp. She is allowing for cost increases over that timeframe up to approximately $50,000. They have to secure a variance for the door going into the house. It does not meet ADA requirements, but cannot be widened. They need variances for interior doors, as well_ They are wide enough for wheelchair access, but are a quarter of an inch too narrow for ADA compliance. It is expensive to secure these variances. Inspection will occur at the beginning and end of construction, which will cost as much as $10,000. They have included these various expenses into the total cost for the ramp. Although the architectural firm assured them they would not have to pay for any more drawings, the current drawings are not complete enough to allow them to hire a contractor. Fortunately, Dick Bundy's firm will provide the completed drawings at no cost. Ms. Culley said Mr. Bundy has concerns with the ramp having so many turns. When working with solid concrete, it is almost impossible to get the grade and level just right. He suggests instead that the ramp be constructed of a concrete base with a steel frame, and decorative hand railings. They hope to brick the face to match the house, or A may be finished in a material similar to stucco to match the screened -in porch. The decking itself will be treated wood. Time is of the essence. They need to start on the ramp at least by the end of September, in order for it to be completed by mid - November. Mr. Ginnings asked if commencing the project now would preclude applying for grants at a later date. Ms. Culley replied it would; a project cannot be started prior to grant approval. They are out of the cycle for Priddy Foundation and other area foundations. They have approached their membership and raised about $20,000. Mr. Schaffner asked if the judgment in the lawsuit precluded the use of a hydraulic lift. Ms. Culley said it did not preclude it but most people say these lifts are more trouble than they are worth, if not used regularly. He then asked what would happen if they do not get funding for the ramp. Ms. Culley said they have until November 14 to have the ramp in place. If it is not they have to show the court that they have exercised due diligence, and exhibit just cause as to why it is not complete. 4B Meeting Minutes — September 4, 2008 4 The court will either approve the continued work, or place an injunction on the house until the ramp is finished. In that case, it would be the first time in 26 years that Santa's House would not be open. The lawsuit was filed along with 15 others across the State, on the 16" anniversary of the ADA law. There was a demand that every door in the house be widened, and access to the upstairs floor be enabled. That would have meant alterations to the house that could not have been done without losing the historical integrity of the structure. There was a demand for handicap parking, but the Kell House did not even have parking, period. There is no water in the house. If there had been, that would have raised other issues. The upstairs floor ended up not being an issue because it was less than the minimum square footage that requires access. They do have a picture book that shows all the upstairs rooms available in a hands -on room in the carriage house, complete with its own docent. Ms. Culley said the Kell House has an endowment, but it is very restrictive, specifically set up for the maintenance of the facility. Neither insurance, electricity, grounds, nor the ramp fall under the confines of this endowment. Mr. Ginnings asked how many people visit the Kell House. Ms. Flood said that 4,400 visitors came to the Santa House last year over a 10-day span. Ms. Culley noted that probably 55% of those 4,400 came through on scholarships. When the schools bring students, the Kell House pays for the buses. Santa House is not a fundraiser, but is about getting those kids in to see Santa each year. 5. CONSIDER A REQUEST FROM THE WICHITA THEATRE Dwayne Jackson noted the Wichita Theatre is celebrating its 100 -year anniversary in October. It was originally constructed to be a live performance opera house, but was converted in the mid 1930's into a movie house. His family bought the theatre in 1995, and have spent approximately $3 Million in renovations and to keep the operation going. In 2005, they filed for a 501(c)(3) recognition, and received that status one and a half years later. The theatre's growth in the past two and a half years has led them to this request today. There are insufficient restroom facilities, and the concession area is too small. They have acquired the old Noble Hardware building next to the theatre. They connected the back side of the theatre to the staging area and built new dressing rooms, as well as a large ramp to the stage. Approximately $175,000 was spent on those two projects. Prior to the construction of the dressing rooms, the City required submission of a master plan. Bundy, Young and Sims were hired to do the first draft, and they envisioned the rest of the plan. They intend to connect the theatre to the front part of the hardware building. Before the community can get excited about a project, they need to see a picture, so they invested in that. The drawing is not absolute. They propose a 413 Meeting Minutes — September 4. 2008 _ new main entrance, with a nice lobby, sitting area, concession, and large restroom facility. At present, concession sales are down because no one wants to stand in line. They have remodeled the stage to seat about 400 downstairs, and another 450 upstairs. A short -term plan includes building rehearsal space on the second floor. Their long -term plan involves a secondary theatre on the third floor. Attendance at the theatre has grown in the last two and a half years. In just the past year and a half, they have tripled the number of children involved in productions, and doubled attendance. This is a good alternative for kids who are not athletically inclined. Nearly 4,000 people saw the Peter Pan production in June, and almost 3,000 took in the production of West Side Story in July. Sixty percent of their ticket sales are in advance of the door. Out of that percentage, people from 64 cities ordered tickets. This does not count the local residents who may have brought out-of -town guests. It is time Wichita Fails has an entertainment center. The Wichita Theatre, with 900 usable seats, is the perfect size. It would be cheaper to renovate this structure than to build a new $10 Million facility. They are asking the 4B Board for a commitment of $40,000. This will serve as seed money to entice other contributions. Mr. Schaffner asked what funds are designated at this point, to which Mr. Jackson replied none at present. Their attention has been on the summer production, and getting ready for their 100 year anniversary. They are in the process of planning a fundraising dinner to raise the entire amount as quickly as possible. The project is broken into critical phases. It will take $100,000 to $120,000 to do the restrooms, concession and lobby space. Bob Seabury asked the difference in the roles of Backdoor Theatre and Wichita Theatre. Mr. Jackson said the Wichita Theatre presents strictly musicals. Backdoor does drama and comedy productions. They do not shy away from adult entertainment, although that is never "over the top.' Wichita Theatre has positioned itself as being an absolute family venue. Mr. Schaffner asked how far the requested $40,000 would go. Mr. Jackson said he has received an estimate (not a formal bid) from a contractor. Based on past experience, the $55,000 he estimates will turn into $75,000. He figures around $40,000 to $55,000 for miscellaneous items (carpet, paint, concession, box office items). That money combined may not take care of the rehearsal space or fagade. Mr. Ginnings asked if the kids' museum is inside the theatre. Mr. Jackson said that has been tabled for the time being. A woman approached them because she heard they had a kids' organization. Together, they put a plan together. However, she then pulled out, and they couldn't balance working on the museum and the theatre at the same time. They were providing the facility, but needed someone else to administer the program. It is tabled until everything else is in place. There is still that potential to put in a 10,000 square foot children's museum on the second floor. 413 Meeting Minutes — September 4, 2008 6 Mr. Ayres asked if the non -profit is in the black. Mr. Jackson said that it is, adding that they are just now finishing their second full fiscal year. Mr. Ayres asked what would happen if the theatre doesn't make it. Mr. Jackson replied that the facility would still be owned by the non- profit. It has its own obligations from a line of credit it used early on for $75,000. The property is valued at $266,000. It is free and dear for the organization to utilize as necessary. Mr. Ginnings asked if the property was used as collateral for the $75,000, to which Mr. Jackson replied, yes. They have currently paid off only about $1,000 of this money. Mr. Ginnings asked if they are keeping the interest current, and Mr. Jackson replied affirmatively. Mr. Schaffner asked if the roof was good. Mr. Jackson said the entire upper roof has been redone since 1995. However, there are a couple of leaky spots, depending upon which way the wind blows. They have chased those spots for about 10 years. They could spend $20,000 to $30,000 and hope that covers it, or on those few occasions it leaks, simply put out a trash can to catch the water. 6. CONDUCT A PUBLIC HEARING ON THE REQUESTS FROM THE WICHITA FALLS LITTLE LEAGUE, THE WICHITA COUNTY HERITAGE SOCIETY, AND THE WICHITA THEATRE Mr. Ayres opened the public hearing on the requests at 5:01. Hearing no public comments, he then closed the hearing. 7. CONSIDER PROJECT APPROVAL OF THE REQUESTS FROM THE WICHITA FALLS LITTLE LEAGUE, THE WICHITA COUNTY HERITAGE SOCIETY, AND THE WICHITA THEATRE Little League Mr. Ayres said it was his understanding that the request for $60,000 was to finish out one field, but they'll still be working on the other field at the same time. This money would not fund the second field. Mr. Ginnings asked if the 4B Board had ever funded a request from the League previously. Mr. Benoit replied it had not. Mr. Ginnings noted they requested assistance from the City Council a couple of years ago. He was not in favor of such funding because he felt their program was restrictive. Apparently, the program is broader than he believed it to be. The League is doing a good thing for the city and the youth, but he would like to know why the 4B Board has never funded projects for them before. Mr_ Leiker said it may be what they charge, where the YMCA does not turn anyone away who is unable to pay. Mr. Ayres noted that the League has a scholarship program that doesn't turn anyone away, either. A friend of his was involved with the League at its inception, and at that time, it was more restrictive. They tried to focus on that quality athletic player. Now, it has evolved to allow anyone to play who wishes to participate. 48 Meeting Minutes - September 4, 2008 7 Mr. Schaffner said he was involved with the League for several years. It is different from "Y" ball, but anyone involved in the League is there because they choose to be. It is a competitive program, but everyone was allowed to play. The draft system was fair, and gave parity to the talent levels of the various players. There has always been a funding mechanism associated with the League, but it appears they have grown to the point they need additional financial help. However, he would like to be provided with more specific information. Mr. Ayres noted that between the League's own commitment of $96,000 and $10,000 in the bank, coupled with the Board's grant of $60,000, they would have half of what they need to finish the project. Mr. Schaffner said when he served with the League, they developed a speck budget for each specific project. Today's presentation was not as detailed as he would like to see. He wants to know exactly what the funds are going to be used for, and the stages of construction. Mr. Ginnings noted from reading their handout, the League plans to use internal funds, as well as additional money raised from within the League through registration and various fundraisers. Rick Hatcher agreed that the Board should hear more specific plans. He questioned whether the Board opens itself up to a whole new group of folks requesting 4B funds for such non - traditional projects (although if it's eligible, it's eligible). Mr. Ayres said the 46 Board had recently funded requests from the Backdoor Theatre and the Kemp Center for the Arts. Their requests were along the same lines. Mr. Ginnings asked if the Board had ever funded soccer - related projects. Mr. Ayres replied not since he has been on the Board. The Board initially focused on the needs of the City as addressed in the original election. Now there is money available to do other projects. He did note that the Board can always put certain requirements on the grant. For example, the Board could grant $60,000 strictly to finish out field 8, including the lighting, etc. Mr. Ginnings suggested they ask for a budget of $60,000 that would show that the field would be finished with that expenditure. Mr. Schaffner agreed this proposal had value, and stated it is important to know where the money is being spent, and to know that the project is being completed. Mr. Ayres said the money would be provided in a series of fundings. The League would have to submit proof of expenditures or invoices to Mr. Benoit. Mr. Benoit noted that the typical process involves receiving an invoice from a contractor. He will then either send the contractor a check to pay that invoice, or he'll send the money to the receiving entity to pay the contractor directly_ Money is only disbursed when something has been accomplished. He cannot promise that $60,000 will pay off the construction of the field, but they will have to do $60,000 worth of work in order to get that money. 4B Meeting Minutes — September 4, 2008 8 Mr. Seabury asked if it would be impractical to request that the League make more of an effort to raise funds. Mr. Schaffner said they are going into the fall season now, and they'll have registration fees. Unless they have a special fundraiser, there will not be a big fee income until next spring, when the regular season starts again. They cannot charge admission. Mr. Schaffner wants to see what the $60,000 would be spent on, and that is the League's responsibility to provide that detailed information. Mr. Ayres suggested the Board request a budget, specifving how the $60.000 will be spent. The grant could be for a sum up to, and not exceeding. $60,000. In the event it only takes $40,000 to finish out field 8, that would be the maximum the Board would expend. Then the League could approach the Board about a second funding -grant for field 9. Mr. Ginnings said that sounded good to him. He would like to include wording to encourage them to continue their own internal fundraising. He asked if it is normal for them to do a fall fundraiser. Mr. Schaffner said they do it year round. Mr. Ayres moved that the Board approve funding up to $60,000 after submission by the Wichita Falls Little League of a budget to finish out the construction of field 8. Seconded by Mr. Ginnings, the motion unanimously carved. Wichita County Heritage Society Mr. Ginnings moved that this request for $30,000 be granted so that it can be open for discussion. Mr. Elmore seconded the motion. Mr. Ayres stated the Kell House is a wonderful facility for the community. Mr. Elmore was pleased with the landscape proposed, which will make the ramp as unobtrusive as possible. The motion unanimously carried. Wichita Theatre Mr. Ginnings moved to approve this item so that it could be discussed. Mr. Leiker seconded the motion. Mr. Ginnings said when he was involved in this before, some construction work had been done on Indiana dealing with the fagade and restoration of the exterior of a facility. Wichita Theatre has an attractive presentation here. Mr. Elmore said that project was funded through TIF, and was around the comer from the Iron Horse Pub, Mr. Ginnings thanked him for clarifying that those funds were not 4B monies. Mr. Ayres said he would hate to spend all that money inside the facility and not spend money to beautify the outside. This grant should be tied in to the fagade being completed. Phase one of the project, at a cost of $220,000, will include the restrooms, concession area and lobby space, as well as the facade. Grants of money for other 413 Meeting Minutes - September 4, 2008 9 projects have been subject to the requestor raising money for certain aspects of the project. He does not want to grant the $40,000 and nothing get done. Any monies granted need to be tied to them raising the balance of the money to fund the noted projects. He doesn't mind it being in stages, but there needs to be an understanding that money has to be raised before the Board's grant is made. Mr. Ginnings asked if he intends that the theatre raise the entire $440,000, or just $220,000, in order to be granted the $40,000. Mr. Ayres said he intended just the $220,000. Mr. Elmore said the grant should also indicate at least the Board's hope that the theatre will do the facade as expeditiously as possible. Mr. Schaffner expressed concern about their fundraising abilities, because of the fact they have $75,000 in debt, and have only paid back about $1,000 of that obligation. Mr. Ayres noted the way to solve that is to agree to the $40,000 grant if they can raise $180,000 for stage one of the project. The Board's $40,000 would be the last money in. Mr. Schaffner said that is a good idea. Jim Ginnings moved that the Board approve up to $40,00 for stage one, predicated upon the theatre raising $180,000 toward stage one in new money, without any use of their line of credit. Seconded by Darron Leiker, the motion unanimously carried. 8. CONSIDER APPROVAL OF THE 2008 -2009 BUDGET Mr. Ginnings alerted the Board to some upcoming Council requests for 4B funds, including a project to extend access to the bicycle trail from the Rhea Road up to the dam (along the railroad drainage right -of -way). Second, the Council wishes to fund median landscaping on Southwest Parkway in the vicinity of Stone Lake and Taft, and possibly even at Greenbriar to Lake Park. The are hopeful that TxDOT might remove asphalt from the median. The total cost of these projects could be as much as $250,000. Mr. Benoit noted the Board's total revenue is estimated at $3,781,000. The sales tax collections are pretty goad. He projects a $125,000 decrease in interest earnings, attributed to the fact that a lot of cash is flowing out in the next three to four months (completion of Mobile Data Terminal project, and continuation of reimbursement for the TIF District on Lawrence at $30,000). The debt service includes the golf course renovation and TIF #2 at $599,803 (20 -year issuance), and the third payment for principal and interest. There is also included the continuation of funding for the Sheppard Military Affairs Committee at $50,000, and continued maintenance on CAD /RMS and the two -way radio system.. When the debt was issued for the Public Safety Training Center, two -way radio, and CAD/RMS, it was done in 5110/15 year obligations, due to the fact that a lot of the software and computers would outlive their useful life at about five years. Year six drops off five -year obligations, and the Board is left with 10- and 15 -year obligations. He 46 Meeting Minutes — September 4, 2008 10 suspects the Board will be asked to consider a debt issuance in the coming fiscal year to bring the fund back to $930,000, perhaps even to $1.5 Million, for debt service. Mr. Leiker noted there is a greater demand for 4B funds than is placed on the 4A fund. Currently, both 4A and 4B have agreed to fund the Military Affairs Committee at $50,000 each per year. He suggested that the 4A Board be approached to pick up the entire $100,000, so that the 4B fund can save that $50,000 to use for other purposes. Mr. Ayres moved that this funding remain in the 4B budget, but the 4A Board be asked to pick up that additional $50,000. If they do, then it can be removed from 4B's budget. Jim Ginnings seconded this motion, which carried unanimously. Mr. Schaffner noted the estimated budget is down 21 %, and asked if the sales tax receipts will continue to decline in the future, or if that decline has reached a plateau. Mr. Benoit said there is a two -month lag before the City receives the last sales tax installments. It may look like the budget is down, but there are still more months from which to collect. Bob Seabury said it bothers him that Wichita Falls is the only major city in the State that does not have a branch library. He thinks the old Dunlap's building in Parker Square would be an ideal site for a branch, a senior citizens' center, and community center. Mr. Ginnings said that Midwestern State University allows citizens to use its library. They must obtain a card from the downtown library, or pay $25 and get a card through MSU. Mr. Seabury said he was not aware of that, but still asserted that people think they need a public library. Mr. Ginnings said that perception needs to be changed. 9. Awoum. The meeting adjourned at 5:46 p.m. Warren Ayres President RECEIVED IN CITY CLERK'S OFFICE