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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. DOCUMENTS OF RECORD RETENTION INFO. DEPT. TYPE OF DOCUMENT RETENTION SCHEDULE NO. RETENTION PERIOD LEGAL 1.10.13 minutes of the 4B Sales Tax Corporation 1000 -03 PERMANENT