4B Sales Tax Corporation Minutes - 08/12/1999MINUTES OF THE
4B SALES TAX CORPORA
August 12, 1999
Present:
Rick Boone, President §
Ikard Smith, Vice - President §
Benay Ayers, Secretary- Treasurer §
Tommy McCulloch §
Ray Gonzalez §
Leon Mallonee §
Arthur Bea Williams §
Mayor Kay Yeager §
Councilor Bud Beaty §
Jim Berzina, City Manager §
Gregory D. Humbach, City Attorney §
Robert Powers, Assistant City Manager §
Ronnie James, Fire Chief §
Linda Merrill, Recording Secretary §
Conrad Staley §
Monty Monson §
Gary Baker §
RECEIVED IN
CITY CLERK'S OFFICE
Date r� I — �!) �
By K_ Time
Corporation Board Members
City Council Representatives
City Staff
Visitors
President Rick Boone called the meeting to order at 8:33 a.m. He acknowledged the
attendance of Mayor Yeager and Councilor Bud Beaty, as well as Fire Chief Ronnie James,
and architects Conrad Staley, Monty Monson, and Gary Baker.
The first item of business was approval of the minutes from July 12, 1999. Leon Mallonee's
motion that the minutes be approved was seconded by Arthur Bea Williams, and approved
unanimously.
The next item of business was the financial report. Robert Powers stated he had some
information, but in the interest of time, it could be saved for discussion when the Board
reaches the action related to the public hearing. The next check is due tomorrow, so the
information is still current as of last month's report.
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The Board concurred, and moved directly to the public hearing. Chairman Boone explained
that the public hearing is necessitated by the fact that there were some cost, or bid, overruns
on the fire station project. The Board had approved roughly $2.1 Million for the fire stations.
The low bid came back at approximately $2.5 Million. In the original bid, no arrangements
were made for furnishings, which will cost in the neighborhood of $84,000. Therefore, there
is a deficit of $434,029. The Board decided, rather than to simply include the overrun in their
budget, to hold a public hearing in the event someone wishes to comment.
The floor was opened for discussion. No one was in attendance to speak to this issue, and
Chairman Boone closed the public hearing.
Chairman Boone then addressed the need to discuss why the project came in over $434,000
over estimates, and why furnishings were not included in the original estimate. Mr. Powers
explained that the initial estimate of $2,175,270 was a staff - derived figure. The staff consisted
of himself and Fire Chief Ronnie James. They contacted architects in Dallas almost two years
ago to determine the square footage cost for stations in the Metroplex. They used high square
footage cost estimates, and also had rough estimates on the size of the stations. All of this was
contemplated without the help of any retained architects. The cost for furnishings was not
overlooked, but rather was included in the total project cost. They started the project with the
Board's approval of $2,175,000, and hired the architectural firm of Staley, Baker and
Monson. They teamed with a Dallas firm, Phillips Swager Associates. Within a couple of
months, the architects were saying this project, with furnishings, would cost closer to $2.45
Million. The staff has continued to work with them to keep the costs as close to the original
budget as possible. The $2.4 Million was from December of last year, and he deferred to
Monty Monson to discuss any project developments from December to the present.
Mr. Monson distributed information to Board on the estimate of probable costs. The apparent
low bidder for the project was Norman Bratcher Construction Company, at $2,524,000.
Between December and June of this year, a lot of things came together. First, they have a very
good final set of drawings. In addition, they were able to come up with the final figures on the
water retention on all three sites. Very time consuming work still needs to be done concerning
water retention. There is curb and gutter, sidewalk and street work needing to be done at the
City View site. They have generators at each station, so that they can operate 24 hours a day,
7 days a week on diesel, the same fuel they use in their apparatuses. In the event there is a
disaster, three fire stations can still provide services. They have provided for heating, cooling,
showers, telecommunications and electricity. In fact, additional hot water heaters were
provided, as the stations can often run out of hot water when several firefighters come back
from fighting a fire and try to clean up. Mr. Monson pointed out that they found some cost
savings by going with a pre- engineered metal building. He notes, however, that they did
maintain the brick facade for a better appearance.
Fire Chief James noted they added an extractor to fire station 5. At the present time, the Fire
Department sends their gear to Chickasha, Oklahoma to have the smoke and carbon removed.
This costs about $100 per set of gear, which results in a cost of several thousand dollars a
year.
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Mr. Monson informed the Board they added a "decon" room to each station, where the
firefighters can go to wash and clean up after a fire, rather than having to do this in their
living areas. There is now a total separation that's very safe.
Conrad Staley stated that the architects they worked with in Dallas actually came in with a
higher price than they did. Their cost estimate was $2.82 Million, so he feels the City received
a very good bid. The sites were probably one of the main things that cost more than they
anticipated. The Hatton Road site is very close to a flood plain area, and they had to do
additional work on that site. Nearly every site had an expansive -type soil, and they are thus
having to dig out 3' and put new soil back into the areas, so that no lifting or breaking to the
buildings will occur as is occurring in the three present stations to be replaced. Leon Mallonee
questioned whether this figure included land cost, and the response was no.
Mr. Staley continued, stating that there is a lot of construction in the area today, especially
compared to when they came up with their estimates two years ago. Contractors are very
pushed for their time, and are bringing contractors from out of town to help them. Plus,
construction costs have increased. Upon Mr. Mallonee's query, Mr. Powers confirmed the
cost per square foot is $127. He stated that when he and Chief James arrived at their $2.175
Million estimate, they were contemplating $100 per square foot.
Upon the Board's general consensus to approve the $2,609,299, Chairman Boone stated the
Board needed to amend their 1999 budget to reflect that. To accomplish this, they would need
to amend their budget for $2,524,799, and add the furnishings separately for $84,000. Arthur
Bea Williams so moved, seconded by Ray Gonzalez, and the motion was unanimously
approved.
Also, Mr. Boone continued, the Board will need to amend its 2000 budget to reflect the same.
Mr. Powers noted the Board will need to pull appropriations out of this coming year and bring
them back to this current year because the contract will be let this year. Accounting rules
dictate that appropriations match when the commitment is made.
Chairman Boone asked when the fire station projects would be completed. Chief James stated
that all three stations have to be constructed within 365 days of the date of the award of the
bid. Mr. Staley added that dirt work would be started the very day the contracts are signed.
Chairman Boone then asked for a motion to change the 2000 budget to reflect monies being
spent in 1999 as opposed to 2000. Tommy McCulloch so moved, seconded by Ms. Williams,
and approved unanimously.
Mr. Powers stated the same action needs to be taken in regard to the $400,000 approved in
July for the recreation center and put in the budget beginning October 1. Those funds need to
be pulled out of next year's budget and put in this year's because that project is getting started,
and again, appropriations need to match commitments.
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Benay Ayers moved that the Board amend their 1999 budget to allow for the appropriation for
the recreation center, as opposed to being included in the 2000 budget. Mr. Mallonee
seconded, and the entire Board approved.
Chairman Boone then turned to the issue of audit requirements. The Corporation's bylaws
require a separate audit be performed. This seems to be an unnecessary expenditure, as the
City of Wichita Falls is required to have its books audited, and the Board's records are audited
as part of the City audit. He stated the Board should consider an amendment to Article IV,
Section 3(c) of their bylaws that, as long as the City maintains their books and is audited, the
Corporation would be exempt from having its own audit. Mr. McCulloch noted it would save
the Corporation $2,000 annually. Mr. Mallonee so moved, seconded by Mr. Gonzalez, and
the motion was approved by all.
Mr. Powers then noted that at the July meeting, a handout was provided to the Board which
listed projects the staff has identified as drainage improvement projects that could possibly be
413- funded. Since that time, staff has completed the priority ranking, and he distributed this
ranking to the Board. He reminded the Board that during its July meeting, there was an
interest to discuss one or more projects and a certain amount of funding the 4B Board may
want to consider. He acknowledged the City's long -term comprehensive commitment and
approach to solving the City's drainage problems on a City -wide basis. It's not an easy task,
and things need to be done in concert to accomplish projects on a feasible, practical, and
objective basis. The City Council still has some work to do to put some structure in place for a
plan. They just received this priority listing at their last Council meeting.
Mr. Powers stated that it is important that the Council, 4B Board, and staff work in sync on
this issue. He suggested the Board may want to discuss what it is financially prepared to do,
and be willing to hold back some 4B funds for a project when it's the right time. Staff -wise,
we would not recommend you publicly pick a project at this point. Ms. Williams asked how
the Board can determine which of the listed projects is a "stand- alone" project, that would not
be detrimental to another area if accomplished. Mr. Powers stated that would involve
discussions with the Public Works Department. Ms. Williams stated it would be helpful to this
Board to give them a menu of things to select from, to show what precautions there are to
take. It would make for a better expenditure of money.
Mr. Powers suggested that if the 4B Board discusses now or down the road that they would
like to financially support "X" number of dollars toward drainage improvements, that they
would not have to worry about what particular project that may be. When the Council and
staff work through this priority listing, they could come back to the Board and request funds
for a particular project.
Ms. Ayers stated that when she, Mr. McCulloch and Mr. Powers reviewed the Board's
budget, they thought they would be able to commit somewhere in the neighborhood of
$500,000 for drainage projects. She suggested the Board go on record as saying they want to
support the drainage projects, and realize it is a long -term, comprehensive effort, and the
Board is willing to encumber some funds for that project. Ms. Williams concurred.
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Mr. McCulloch questioned whether the upstream /downstream aspect was a factor for
prioritization? Mr. Powers said no. The criteria included frequency of flooding, whether it
damages or endangers public health or safety, damages dwellings, other structures, aesthetics,
traffic hazards, etc.
Mr. Berzina stated the Board could use their funds as a fill -in. There is yet no decision what
method may be put in place for some permanency. But the Board could assist when there are
no other funds.
Mr. Mallonee asked Ms. Ayers if she intended to approve the actual spending, or just give the
thought to approve it. Ms. Ayers said she did not mean actual approval of spending at this
time, just a level of support.
Ms. Ayers moved that they, as the 4B Board, understand the comprehensive nature of this
project, and relay to the City Council that, based upon current financial projections, they
would be able to support as much as $500,000 for those 4B- eligible drainage projects.
Chairman Boone asked, if the Board committed to this $500,000 expenditure, when would the
money be spent. Mr. Berzina stated when the Council had decided upon a particular project,
they might come more quickly to the Board if they knew there was financial support already
available, perhaps as early as next year.
The Board approved the motion, authorizing $500,000 as a level of support to express to the
City Council.
Mr. Powers referenced a chart which reflected the Board's cash flow for next year. The chart
assumes the fire station and the recreation center will be paid for with cash. With the current
fund balance and the projected revenues for next year, the low point is still a little less than $2
Million, and the Board would end next year with close to $2 Million, even with cash payments
for the two referenced projects.
Ms. Ayers offered a motion that, based on this projection, the fire station commitment be paid
for with cash. Mr. Mallonee seconded the motion.
Chairman Boone queried Mr. Powers about the projects in the works for 2000, in particular
the status of the training grounds. Mr. Powers stated the training grounds project is still a top
priority. The training center building cost estimate a year ago was $3.4 Million, so that
obviously would not be a cash project. But in conjunction with the training center, there are
two other components - one is the police firing range, and a site has yet to be chosen, which is
estimated at $500,000 (a stand -alone project that could potentially be accomplished this year),
and the other project is the fire training field out on Old Burk Road. That estimate is also at
$500,000, but it is not a stand -alone project because the police firing range has to move first.
Once that happens, then the improvements could be made there on -site.
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Chairman Boone verified with Ms. Ayers that she is comfortable with spending cash for the
fire station project, and she confirmed that she was, adding that revenues are in excess of what
was anticipated. The motion was unanimously approved.
There being no further business, the meeting adjourned at 9:12 a.m.
Benay Ayers
Secretary- Treasurer
Linda Merrill
Recording Secretary