4B Sales Tax Corporation Minutes - 11/04/2024 MINUTES OF THE
WICHITA FALLS 4B SALES TAX CORPORATION (WF4BSTC)
NOVEMBER 4, 2024
PRESENT:
Tony Fidelie, President § WF4BSTC Members
Glenn Barham, Vice-President §
Nick Schreiber, Secretary-Treasurer §
Craig Reynolds §
Michael Grassi §
Steve Garner §
Bobby Whiteley, Councilor at Large § Mayor & City Council
Paul Menzies, Acting City Manager § City Staff
R. Kinley Hegglund, Jr., City Attorney
Blake Jurecek, Assistant City Manager §
Stephen Calvert, CFO & Finance Director §
James McKechnie, Deputy City Attorney §
Terry Floyd, Dir. of Developmental Svcs §
Chris Horgen, Public Information Officer §
Paige Lessor, Executive Legal Assistant §
Absent:
Dave Clark § WF4BSTC Member
1. Call to Order.
Mr. Tony Fidelie called the meeting to order at 9:00 a.m.
2. Report of financial condition (current, past & planned budget & expenditures); and
other administrative actions.
Mr. Paul Menzies addressed the Board to give the financial report. Mr. Menzies noted that
the Corporation started the new fiscal year with $4.8 million in unencumbered funds available for
new projects. However, this figure does not include any revenue received in the new current fiscal
year, as sales tax has not yet been received. The Corporation should anticipate $6.4 million in
projected sales tax revenue over the next 11 to 12 months. The November sales tax remittance
from the state, reflecting September's collections and closing out the previous fiscal year, is
expected this week. Sales tax revenue is currently running slightly below last year, by less than
1%. However, interest income is performing well, offsetting some of the minor shortfalls in sales
tax revenue.
3. Consent Agenda
a) Approval of Minutes of September 5, 2024.
Mr. Grassi moved to approve the consent agenda. Seconded by Mr. Garner, the
motion carried 6-0.
4. Public hearing regarding a funding request from the City of Wichita Falls for
the demolition of the existing structures on the 12.7+ acre tract of land otherwise
known as 100 Central East Freeway (former Hotel by the Falls).
Mr. Fidelie opened the public hearing at 9:02 a.m.
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Mr. Menzies addressed the Board and noted that earlier this year, the Board
approved funding in the amount of$835,000 for the actual acquisition of part of the property.
Mr. Menzies then explained that after the verbal commitment by the Board to support the
City in the demolition phase of the project, the bid process was opened the previous week.
The demolition bid process attracted 12 bidders, with bids ranging from nearly $1.3 million
to $373,000. The lowest bid is $373,000, plus costs for bid and performance bonds, bringing
the total amount to $381,000. Therefore, the City requested $381,000 to demo and clear this
property. If approved, the low bidder anticipated starting preliminary work in mid-December,
with complete demolition likely beginning in early January. The project timeline beyond the
start is still under discussion. Mr. Fidelie then opened the floor for questions.
Mr. Garner raised concerns about the significant variance in the 12 demolition bids,
particularly the $1 million difference between two bids from companies with similar names
(Midwest Wrecking). He questioned whether the lowest bid of $373,000 was sufficient and
expressed concern over the City potentially needing to request additional funds if the
contractor failed to complete the project. Mr. Garner mentioned reaching out to the two
principals of the companies but received no response. Mr. Schreiber explained that the
primary downside would be a delay in timing, which is not necessarily a financial risk, as the
bond protects the City. Mr. Hegglund emphasized the importance of the performance bond,
ensuring the City is protected financially and legally. If the contractor fails, the bond will cover
the costs, and legal action can be taken.
Mr. Menzies explained that if the lowest bidder cannot complete the project, the City
would move to the next lowest bidder at $416,000. Mr. Schreiber explained that he
calculated the averages of the bids. Excluding two bids from Houston and Oklahoma City,
the average bid was $740,000. Removing the two highest and two lowest bids, the average
was $750,000. Mr. Menzies then noted that multiple contractors were present when bids
were opened, and there were no signs of concern from them, which provided confidence.
Mr. Grassi and Mr. Fidelie acknowledged concerns but noted that demolition projects are
less risky compared to new construction. Mr. Schreiber also pointed out that the low bidder
had a track record of federal government projects, indicating reliability through ongoing
federal contracts. To conclude the discussion, Mr. Fidelie again emphasized that legal
protections are in place and appreciated the diligence in vetting the bids. Mr. Fidelie and the
Board agreed to discuss legal access issues in executive session.
Mr. Fidelie asked for public comments. None being made, Mr. Fidelie closed the
public hearing at 9:11 a.m.
5. Discussion regarding a potential initiative to enhance promotion of corporation
activities and achievements.
Mr. Garner introduced the initiative, driven by a desire to correct public
misconceptions surrounding WF4BSTC Board expenditures. He explained that many
believe the Board spends local tax dollars frivolously, but in reality, funds come from sales
tax revenue, primarily from out-of-town and out-of-state visitors, benefiting the community
without affecting property taxes. Mr. Garner emphasized the value of showcasing completed
and ongoing projects from the past 10-12 years, highlighting their benefits. He suggested
that sharing testimonials from groups like softball teams could help the public appreciate the
tangible advantages these projects provide. Mr. Garner believes this initiative could foster
community pride and gratitude, particularly during this positive period in the City's history.
Mr. Horgen highlighted how the proposed initiative aligns with the City's strategic goal
of celebrating Wichita Falls by showcasing successful projects funded by WF4BSTC sales
tax revenue. He proposed producing short video segments, possibly quarterly or bi-monthly,
that feature specific projects, starting with the softball fields. Mr. Horgen suggested including
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time-lapsed footage and interviews, such as with Mr. Jurecek, to discuss the economic
impact. He emphasized the need for a brief explanation at the beginning of each video to
clarify how WF4BSTC funding works, ensuring the public understands the source and
allocation of the funds. The goal is to spotlight WF4BSTC's contributions and counter
misconceptions, fostering community pride and transparency. Mr. Garner and Mr. Horgen
both stressed the importance of educating the public on the Board's role, aiming to promote
community pride and dispel misconceptions.
Mr. Schreiber questioned the need for expenditure, to which Mr. Garner and Mr.
Horgen clarified that no funds would be required as Mr. Garner, being retired, would
volunteer his time. Mr. Schreiber further acknowledged the Board's transparency, noting that
all information is publicly available online, though it's up to individuals to seek it out. Mr.
Schreiber observed that most people remain unaware of where WF4BSTC's funds come
from and, even after being informed, tend to forget over time. He attributed this to a general
lack of public interest. He stated that he values recognition, takes pride in the Board's work,
and expressed no objections to the initiative as long as it remains cost-free.
Mr. Barham expressed support for Mr. Garner's initiative, praising its intent to improve
public awareness. However, he shared skepticism based on past experiences, noting that
similar efforts outside of social media had limited long-term success. Mr. Barham highlighted
the community's tendency to quickly forget information about the WF4BSTC Board despite
transparency efforts. While he questioned the initiative's lasting impact, he encouraged
moving forward, acknowledging that even a 1% increase in awareness would be worthwhile.
Despite his doubts, Mr. Barham saw value in making the effort.
Mr. Fidelie acknowledged a widespread lack of understanding among community
members about WF4BSTC's role and funding, sharing an example of a resident mistakenly
linking WF4BSTC projects to property tax increases. He then asked the Board if anyone had
any other concerns about the proposed initiative to increase public awareness and
understanding of WF4BSTC's work. Overall, the Board supported Mr. Garner and Mr.
Horgen's efforts, appreciating the volunteer-driven approach and the potential positive
impact. After no further discussion, Mr. Fidelie closed item number five.
6. Executive Session.
Mr. Fidelie adjourned the meeting into executive session at 9:26 a.m. pursuant to Texas
Government Code sections 551.087, 551.071, and 551.072. He announced the meeting back
into regular session at 9:45 a.m. The subjects posted in the Notice of Meeting were deliberated,
and no votes or further action were taken on these items in executive session.
7. Consideration of a funding request from the City of Wichita Falls for the demolition
of the existing structures on the 12.7+ acre tract of land otherwise known as 100 Central
East Freeway (former Hotel by the Falls).
Mr. Fidelie moved to authorize the expenditure of up to $381,000 in furtherance of the
demolition of the existing structure at 100 Central East Freeway (former Hotel by the Falls).
Seconded by Mr. Barham, and no further comments or questions, the motion carried 6-0.
8. Adjourn.
No further discussions took place, nor actions taken. Mr. Fidelie adjourned the meeting
at 9:47 a.m.
Guy A. "To " idelie, Jr., President
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