4B Sales Tax Corporation Minutes - 01/10/2013MINUTES OF THE
WICHITA FALLS 4B SALES TAX CORPORATION
January 10, 2013
PRESENT
Jim Ginnings, President
Dominique Calhoun
Dave Clark
Tony Fidelie
Darron Leiker
Dustin Nimz
Glenn Barham, Mayor
Tim Ingle, Councilor District 4
Jim Dockery, Asst. City Manager /CFO
Kevin Hugman, Assistant City Manager
Miles Risley, City Attorney
John Burruss, Director, AT &T
Jack Murphy, Director, Parks and Recreation
Linda Merrill, Recording Secretary
Bob Seabury
W. Charles Campbell
Dusty R. Johnston
Carlana Fitch
Tommy McCulloch
Dick Bundy
ABSENT:
Joe Nieto
1. CALL TO ORDER
§ Members
§
is
§ City Council
§ City Staff `T'
§ Museum of North Texas History
§ Vernon College
§ Kemp at the Forum
§ Member
Jim Ginnings called the meeting to order at 3:00 p.m.
2. APPROVAL OF MINUTES
Dominique Calhoun moved that the minutes of September 12, 2012 be approved.
Seconded by Tony Fidelie, the motion unanimously carried.
Mr. Ginnings welcomed Dave Clark as the newest 4B Sales Tax Board member
(replacing outgoing member Alan Donaldson).
H: \_legal \4A & 4B \4B Corp \4B Minutes \2013\2013.1.10\Minutes.4B 2013.1.10.doc
WFEDC — Minutes of January 10, 2013
Kevin Hugman discussed the Board's current financial statement. The January sales tax
report came in today, but is not included in this report. It is %2% down. The sales tax receipts for
FY 2012 are 1 -1/2% above the previous year, and that is the revenue projection for 2013.
Tony Fidelie asked how much cash is available to potentially fund the three large
requests before the Board today. Mr. Hugman said the 4B fund has an end -of- fiscal -year
projected unreserved fund balance of $2.1 million, and $209,000 in current year budget revenues
less current year expenses. Mr. Fidelie then analogized that the fund has about $2.1 million in
savings, and $209,000 in checking. Staff agreed with this analogy. Jim Dockery said the Board
does not have a policy on how much to keep in its fund balance. The City has a policy to retain
25% in its general fund for emergencies, but it is not necessary to keep that much in a project -
based budget. It would not be prudent, however, to spend below a $1 million reserve.
3. PUBLIC HEARING; CONSIDERATION OF VERNON COLLEGE WICHITA FALLS
CAMPUS PARKING LOT PROJECT
Mr. Ginnings opened the public hearing at 3:12 p.m. Dr. Dusty Johnston explained that
the Century City campus of Vernon College had undergone an $8 million renovation. Still to be
completed is a renovation of its exterior (for which the college just received a $350,000 grant),
and a major repair of its parking lot. He is requesting $600,000 to repair and upgrade the 250,000
square foot parking lot. The lot already has green spaces, aisles, islands, trees and water lines.
Mr. Fidelie asked if Vernon College had allocated any funds to the project. Dr. Johnston
said no money had been set aside for the parking lot. Mr. Clark asked how it would leave the
College if the 4B Board elected to give less than the request. Dr. Johnston said he would not
touch the College's reserve funds, but would look at revenues over expenses for this current
budget year. In addition, there may be other grant sources available.
Mr. Ginnings closed the public hearing at 3:27 p.m.
4. PUBLIC HEARING; CONSIDERATION OF THE KEMP AT THE FORUM
RENOVATION PROJECT
Mr. Ginnings opened the public hearing at 3:28 p.m. Tommy McCulloch provided a brief
history of the Women's Forum. It earned its Texas Historical Landmark designation in 1980; in
1984, it was designated a Wichita Falls landmark. In 2009, Women's Forum representatives
asked the Kemp Center for the Arts to take over the ownership of the Forum. The Kemp Center,
after many months of due diligence and operation of the Forum, decided to take ownership of the
facility. The goal is that the Forum eventually run in a break -even manner. It is a sought -after
venue for weddings, art exhibits, and classes, and now houses a restaurant, the Dutches at the
Forum.
It will cost $2,393,000 to do a complete restoration. A capital campaign committee was
created 9 months ago. Just over $1.3 million has been raised from almost 200 businesses,
individuals and foundations. They are requesting $400,000, or 17% of the total renovation cost,
from the 4B Board.
Architect Dick Bundy provided a general scope of the building's needs.
• Entry doors that are ADA- compliant (completed)
• ADA - compliant restrooms
WFEDC — Minutes of January 10, 2013 3
• Lobby and Auditorium renovation
• Courtyard for outdoor entertainment
• Re -work parking lot; add landscape items
• Permanent screen from apartments to the north
• New front driveway
Mr. Ginnings closed the public hearing at 3:55 p.m.
5. PUBLIC HEARING; CONSIDERATION OF THE JENNY TO JET EXHIBITION AT
THE MUNICIPAL AIRPORT TERMINAL PROJECT
Mr. Ginnings opened the public hearing at 3:57 p.m. Bob Seabury said the Museum of
North Texas History is seeking funds from the 4B Board to move the Curtiss Jenny aircraft from
its current location at Kickapoo Airport to an exhibit room at the as- yet - constructed Municipal
Airport Terminal. The request is for one -half of the cost of the exhibit room ($336,283). Mr.
Seabury said he and a four - person committee have raised between $15,000- $20,000, and plan to
raise the rest of the funds through foundations, individuals and businesses. He was told the
architects could hold up the plans for the terminal until March 1. Everyone thinks it is a good
idea, but they all want to know first whether the 413 Board will play a financial role.
Now, a T38 from Sheppard AFB is available, and he would like the exhibit to house it
alongside the Curtiss Jenny, two Model T vehicles and a Victrola. The exhibit would be called
From Jenny to Jet, to show the progress of aviation over the past 95 years.
The Jenny will not last indefinitely in its Kickapoo Airport hangar. Extreme temperatures
are hard on the plane. Charles Campbell, Executive Director of the Museum of North Texas
History, said that sooner rather than later, the plane will not be able to be flown. It is difficult to
find parts for the engine, and a mechanic with the requisite skills to work on the aircraft.
Mr. Dockery asked the operating costs to house the Jenny at the airport. Mr. Seabury said
there would be no cost. Mr. Dockery said there would be utilities. Mr. Campbell said that would
not be as high in comparison to the insurance, fuel costs, utilities, and maintenance of the aircraft
and the vehicles. Mr. Dockery asked if the Museum expects the City to pay for the utilities and
insurance once the plane is at the airport. Mr. Campbell said they have not yet had detailed
discussions.
Mr. Ginnings closed the public hearing at 4:15 p.m.
DISCUSSIONS AND MOTIONS
Vernon College Wichita Falls Campus Parking Lot Project
Tony Fidelie moved to fund $350,000 over three years divided over three payments.
The motion died for lack of a second.
Jim Ginnings moved to recommend to the City Council the expenditure of 4B funds
up to $100,000 upon completion of the project as outlined in the presentation. Dave Clark
seconded the motion.
WFEDC — Minutes of January 10, 2013 4
Dave Clark then asked that the Board consider other things:
1) Linking the parking lot funding to the fact that Vernon College provides green collar
training (to ward off the appearance of precedent- setting motion to approve funding
for infrastructure);
2) Providing Vernon College with information on the Mill & Overlay bid process, so
that it could get their best bid (Mr. Ginnings interjected this is not necessary to
include in the motion); and
3) Providing $100,000 from 4B funds, and Vernon College comes up with the rest.
The motion carried (with Dustin Nimz voting against the project).
Renovation of Kemp at the Forum
Dave Clark said he is the Chairman of the Kemp Center for the Arts. Although City
Attorney Miles Risley opined that he is technically able to discuss and vote on this issue, he will
not vote. In the interest of full disclosure, Tony Fidelie said® wife is currently on the Board of
the Kemp Center for the Arts. He also chose not to vote on this item. V,h
Dustin Nimz moved to recommend to the City Council the expenditure of 413 funds
in a sum up to $400,000 to renovate the former Women's Forum. Seconded by Dominique
Calhoun, the motion carried.
Mr. Ginnings said there are certain activities held at the Forum that directly compete with
MPEC. Mr. Leiker also expressed concern about subsidizing one entity to the detriment of
others, including the Country Club, the Wellington, and MPEC. Mr. Clark said those competing
activities are already being held at the Forum, and that would continue in order for the building
to survive. But it has also become a venue for art shows and training.
Mr. Calhoun stated he is concerned that only 75% of the Board and 56% of the staff have
assisted financially with the project. Mr. Clark said the Board has put in more than $150,000 thus
far and is very committed to the renovation.
Mr. Fidelie said he is in favor of the project, although he understands the concerns of
subsidizing a not - for - profit to compete with other local entities. He likes the fact they've raised
well over 50% of the necessary funds — but added that the requested $400,000 is a pretty stout
number.
Mr. Ginnings called the question. Dustin Nimz approved the project; all other
members opposed the motion. The motion failed.
Darron Leiker moved to recommend to the City Council the expenditure of
$200,000 of 413 funds for the Kemp at the Forum Renovation Project, to provide for
renovations to the Kemp at the Forum building at 2120 Speedway. The motion was
seconded by Dominique Calhoun.
Tony Fidelie moved to amend the motion to provide for the expenditure of $250,000.
The motion died for lack of a second.
Mr. Leiker's motion carried with four votes (Messrs. Clark and Fidelie abstained
from voting).
4
WFEDC — Minutes of January 10, 2013 5
Jenny to Jet Exhibition
Dominique Calhoun moved to recommend to the City Council the expenditure of 413
funds in the amount up to $336,283 for the Jenny to Jet Exhibition at the Municipal
Airport Terminal. The motion was seconded by Dave Clark.
Mr. Leiker said he and the Mayor met with Mr. Seabury and said they could not promise
anything, but did think the 4B Board would take a hard look at this project if he came in with
50% of the money needed already raised. But he has reversed it and is requesting that the 4B
Board fund half of the project before he has garnered any significant money elsewhere. Mayor
Barham said the architects need a firm deadline to finalize the design, and it was agreed to give
Mr. Seabury until March 1.
Mayor Barham added that he has been told that if he cannot raise the funds, the plans for
the airport will proceed without the display area where he prefers (between deplaning and the
baggage carousel). Instead, the exhibit room could be built on to the end of the building with a
glass fagade.
John Burrus said he would love to have the Jenny and a T38 in the airport, but he does
not care where it is located. The bids will go out in August 2013, and he is proceeding at this
point with the exhibit being an addition to the building at some later date. The FAA funding
cycle ends September 30; they want the bids in hand and to the City Council no later than the
second meeting in September (ideally the first meeting).
Mr. Calhoun said he was concerned about the costs rising to build the exhibit room, and
the 4B Board being tied to giving the Museum too much time to come up with their share of the
money. He feels the deadline should be March 1, 2013, or a capped amount of 4B funding.
Mr. Dockery said that if a deadline of March 1 is put on the 4B funds, then the Museum has
nothing with which to go out and seek other pledges of money. It would be better to give him a
year to raise the money.
Mr. Fidelie suggested the Board give him a year to raise the money, and the 4B Board
would grant him $250,000 toward the project. The pledged funds should be put in trust and
transferred to the City on March 1. Mayor Barham said their verbal agreement was for half the
money. Mr. Calhoun moved that he receive half of the funds if he comes up with the other
half by March 1, 2013, and then a conditional agreement for a year of $250,000. Mr.
Ginnings questioned why the 413 expenditure had to be reduced to $250,000 for the
conditional agreement portion of the motion. Mr. Calhoun agreed to amend his motion.
Mr. Calhoun moved to recommend to the City Council the expenditure of 413 funds
in an amount not to exceed $336,283, conditioned upon matching funds being received in
trust with the City by March 1, 2014; otherwise, the funds would be automatically de-
encumbered. Seconded by Dave Clark, the motion unanimously carried.
8. ADJOURN
The meeting was adjourned at 5:30 p.m.
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