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4B Sales Tax Corporation Minutes - 07/01/2013RECEIVED `:N CITY CLERKS OFFICE 9, Y: TIME: MINUTES OF THE WICHITA FALLS 4B SALES TAX CORPORATION (4BSTC) July 1, 2013 PRESENT: Jim Ginnings, President § Members Dominique Calhoun § Dave Clark § Tony Fidelie § Darron Leiker § Tim Ingle, Councilor District 4 § City Council Kevin Hugman, Assistant City Manager § City Staff Jim Dockery, CFO /Assistant City Manager § Miles Risley, City Attorney § John Burrus, Director, AT &T § Bobby Teague, Building & Code Administrator § Linda Merrill, Recording Secretary § ABSENT. Joe Nieto § Members Dustin Nimz § 1. CALL TO ORDER. Jim Ginnings called the meeting to order at 3:13 p.m. 2. APPROVAL OF MINUTES Dave Clark moved to approve the minutes of June 10, 2013. Seconded by Tony Fidelie, the motion carried. 3. DISCUSSION OF BUDGET FOR UPCOMING FISCAL YEAR Kevin Hugman distributed the Board's proposed fiscal year 2014 budget. The estimation for the total expenditures for FY 2014 is $3,116,000, compared to $4,164,000 in revenues, leaving a balance of revenues - above - expenditures of just over $1 million. The Board should have a beginning cash balance of just under $3 million, with $2 million reserved in encumbrances. The unreserved fund balance is projected at $1.8 million, assuming no other projects are approved between now and the end of FY 2014. Dominique Calhoun asked if every entity that had requested and received funding pledges from the 4B Board had signed performance agreements. Mr. Hugman said there are a few that have yet to do so. Mr. Calhoun suggested those projects be closed out if the entities do H: \_legal \4A & 4B \4B Corp \4B Minutes\2013\2013.7.1\MinutesAB 2013.7.1.doc WFEDC — Minutes of July 1, 2013 2 not intend to sign. Mr. Hugman said he would have that information for the Board at the time it meets to approve the FY 2014 budget. Mr. Ginnings stated that the City is looking at various projects in connection with water shortage. In light of those expenditures, he recommended the Board not look at new requests in the near future in order to protect the unreserved fund balance of nearly $2 million should that money be needed to help fund those water - related projects. He made it clear that he is not seeking to curtail or reduce any commitments previously made. 4. DISCUSSION AND MODIFICATION OF THE JENNY TO JET EXHIBITION AT MUNICIPAL AIRPORT TERMINAL PROJECT Bob Seabury reminded the Board of the need for this exhibition. The Curtiss Jenny is stored in a facility that has no air conditioning, and is only open to the public four hours per week. At the airport, it would be better preserved and be seen by thousands of people each week. The Jenny has a key role in our city's history, and combined with a T -38, it would cement the relationship between Wichita Falls and Sheppard Air Force Base, and showcase the military's contribution to the community. Mr. Seabury said he had previously served on the 413STC, and never did an entity request a reduction in the amount pledged. That is what they are requesting today. The Museum has raised $220,350 in pledges and cash toward this exhibition space through 25 individuals, corporations and foundations. Mr. Ginnings added that the original estimation for the exhibition space was $670,000, revised to $405,000. The Museum was required to raise a minimum of $202,500 to make the 50150 match approved by the 413STC, which they have exceeded. Mr. Seabury would like for the 4BSTC to encumber only up to $220,3501 with the understanding that the fundraising is over, subject to the Museum receiving all their pledged funds. Mr. Seabury noted that fundraising efforts may continue, but he would not come back to the 4B Board. Mr. Ginnings asked if the Museum will have to pay for the decommissioning of the T -38. Mr. Seabury said he has been talking with the squadron at Sheppard AFB that prepares aircraft for exhibits. He does not expect a bill for their efforts, but he will know more later today. The aircraft would be given to the City on a long -term loan basis. Mr. Leiker asked Mr. Seabury if he was positive the aircraft would come from Sheppard. Mr. Burrus said he heard that Sheppard had a wrecked T -38 that was in pretty good shape, but he could not guarantee that aircraft would be the one donated. Dominique Calhoun asked how much it would cost to decommission an aircraft. Mr. Seabury guessed it would not cost more than $5,000. Jim Dockery noted that all the exhibit artifacts would be housed on City property, with the City paying all utility bills and providing custodial care. He asked what obligations the Museum contemplates. Charles Campbell said the Museum would maintain the exhibit, and make any necessary changes and repairs. I (rather than the not -to- exceed amount of $336,283 as approved by the 4BSTC at its January 10, 2013 meeting) WFEDC — Minutes of July 1, 2013 3 Mr. Fidelie asked if $440,700 is sufficient for the construction. Mr. Burrus said it depends on the cost to transport the T -38. That money is simply for the cost of the structure; it does not include a barrier system to protect the aircraft, or any other improvements or additions to the exhibit. He suggested the donated money be spent first, and if all the funds are not used, then the 413STC could receive back some of its money. Mr. Seabury objected, stating they met the requirement to raise half of the $405,000 for the square footage at the airport. The $35,700 raised in excess of that sum would be used for other purposes, such as preparation of the T -38, a mural, or other amenities for the exhibit. Mr. Leiker reminded him that there is still the cost of transport of the T -38, and the 4BSTC's commitment was only for the building. Messrs. Fidelie and Calhoun expressed confusion over the total sum for the project. Mr. Seabury said the Board's commitment was to match half of the total funds raised ($220,350), or $440,700. Mr. Campbell said the $405,000 figure was used to establish the minimum amount the Museum had to raise by August 1 to get any matching funds from the 413STC. Mr. Risley said there are two points of issue: (1) what is the scope of the project and (2) what expenditure is required of the 4BSTC. Did the 413STC intend the scope of the project to be only the cost of the building, or to include other expenses, such as the transportation of the T -38? Mr. Ginnings said the original concept was to have two planes — the Curtiss Jenny and a T -38 — for the "From Jenny to Jet" exhibit. However, the scope apparently did not meld with the cost presentation. Mr. Seabury said the Museum is asking for less than was approved. Mr. Calhoun said he understood, but noted that if it costs $75,000 to transport a T -38 here, the Museum would have to raise that additional money. He suggested the current agreement be maintained, and a supplemental agreement executed to give the Museum half of the transportation costs. Mr. Seabury said they are not asking for transportation costs; they have the $35,000 they have raised through pledges above what was required by the 413STC. He amended that statement to allow that the 413STC is funding half of that $35,000. Mr. Leiker said the 413STC committed to match funds toward construction of the exhibit space. If the Museum wants the Board to contribute more to secure the T -38 or add murals, cost share the barriers, that is another question for consideration. Mr. Calhoun said he does not want to limit the Board's contribution to $220,350 and that sum be insufficient. Mr. Dockery said when the bids come in, the City will know the construction price. The costs could perhaps be itemized to determine the 4BSTC's commitment for half of that cost. He said that the Museum is expecting the Board to match what it has raised, regardless of the actual cost of construction The bids could come in higher, or could be lower. At present, there is only an estimate of $405,000. Kevin Hugman said there could be change orders even after the bids are in. Mr. Burrus said the bids for the building should come in mid - August. Mr. Leiker said he is confused why this item is on the agenda. The 413STC agreed to fund 50% of the project up to a maximum figure, and the Museum had to raise a certain amount for the design to be added to the construction. That point has been reached. WFEDC — Minutes of July 1, 2013 4 Mr. Ginnings said that Mr. Seabury is asking to be relieved from further fundraising obligations. He would like to know firmly the 4BSTC will fund the matching $220,350. Mr. Calhoun noted the Board had already agreed to fund up to $336,283. Mr. Leiker agreed, noting that if the Board modifies its motion down to $220,000 and the construction costs are higher than $440,000, the Museum has to come up with the balance. Mr. Fidelie asked how much the Museum has in trust. Mr. Risley said there is no money in trust at present. Mr. Campbell said they have about $28,000 in a bank account created for this project. They will get the funds from their sponsors whenever they are given a specific date those funds are required. Mr. Risley said the importance of coming up with the money now is so that an extra external wall does not have to be built. Mr. Leiker added that there also won't be the added cost of remobilization of construction crews. Mr. Risley continued, stating the airport is being built through a Construction Manager At Risk. Subcontractors will make commitments on their prices, and they will reach a Guaranteed Maximum Price amendment that will be executed along with the contract. The money will need to be held in trust before then. Mr. Burrus said the GMP will come in three stages: (1) July 16, (2) August 20, and (3) March 2014. Mr. Risley said this item would probably come in the second stage. Dave Clark said there should be enough trust between the two entities that the Museum does not feel that if they do not raise the maximum of the $336,283 that the 4BSTC won't contribute toward the project. That is not the case. Mr. Ginnings said he believed Mr. Leiker's suggestion to leave this item alone is a good one. Mr. Seabury concurred. Mr. Ginnings complimented them on a fine job of fundraising. He believes the 4BSTC ought to consider that it had previously agreed to fund up to $336,283 for construction only. As this project will come in quite a bit lower than that, it should be favorable to some costs to get the T -38 transported here. 5. ADJOURN The meeting was adjourned at 4:23 p.m.