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4B Sales Tax Corporation Minutes - 09/09/2013RECEIVED IN CITY CLERK'S OFFICE DATE: BY: Tit; E: S�,Z"It4d _ MINUTES OF THE WICHITA FALLS 4B SALES TAX CORPORATION (4BSTC) September 9, 2013 PRESENT: Jim Ginnings, President § Members Dustin Nimz, Vice President and Sec. /Treasurer § Tony Fidelie § Rick Hatcher § 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 § Bob Sullivan, Director of MPEC § Lindsey Greer, CVB § Jack Murphy, Director of Parks & Recreation § Scott McGee, Recreation § Travis Pence, Recreation § Linda Merrill, Recording Secretary § ABSENT' Dave Clark § Members Casey O'Donnell § 1. CALL TO ORDER. Jim Ginnings called the meeting to order at 3:32 p.m. 2. APPROVAL OF MINUTES Rick Hatcher moved to approve the minutes of July 1, 2013. Seconded by Tony Fidelie, the motion carried. Kevin Hugman presented the financial report. Sales tax revenues are currently at $2.725 million, and will end the year at $3.634 million. Less than anticipated, it is still an increase of 1.4% above last year. There are only two changes to this financial statement from the last time it was presented to the Board: the sales tax revenue projection was decreased from $3.662 million to $3.634 million, and the Vernon College funding was disencumbered. Performance agreements have been signed with Streams and Valleys, the Kemp Center at the Forum, MSU, and the River Bend Nature Center. Funds were approved for these projects and are encumbered. Mr. Fidelie asked the status of the airport museum. Mr. Risley said an agreement has been drafted, but will not be executed until the funds have been deposited. Mr. Risley said he H: \_legal \4A & 4B \4B Corp \4B Minutes \2013\2013.9.9\Minutes.4B 2013.9.9.doc WFEDC — Minutes of September 9, 2013 2 will contact John Burrus this week, who will catch up with Bob Seabury. Mr. Leiker said the museum can be carved out of the project if necessary. August 1 was the last deadline for submission of the funds. Mr. Fidelie said that although everyone wants this project, it has been clear since February that the funds had to be submitted. Mr. Ginnings thinks they are good for it. 3. DISCUSSION OF POTENTIAL MULTI - PURPOSE EVENTS CENTER PROJECTS Mr. Ginnings opened the public hearing at 3:45 p.m. Bob Sullivan and Lindsey Greer discussed four requests for 413 funding. (1) Scheduling software. Ms. Greer said the CVB currently has a software package that allows for data input, but does not track the data. The software they wish to purchase would track bids, contacts, and the CVB's win/loss record. It is not a quick process to calculate and analyze data with their current software. They keep information on various spreadsheets on Word and Excel. The new software would allow for user interface capabilities for hotels and would allow the CVB to know when an RFP was opened by each hotel and when bids were submitted. It would also track where leads and requests for information originate. All modules of this software communicate with each other. It would also migrate current data into the new system. The cost for a three -year agreement for five users is $34,500, including updates. This software is used by most mid -sized cities, and other CVBs report superior customer service. Mr. Ginnings asked if Ms. Greer could quantify how much more work would be produced with this software. She estimated it would at least double their capacity to work better together. Mr. Sullivan said it would also tie up loose ends with the hotels. Mr. Fidelie asked how many bids the CVB issues per year. Ms. Greer said they bid on 30 -40 true conventions each year, and win about one -third of them. Mr. Hatcher asked if the CVB was losing bids because it did not have this software. Ms. Greer said they lost a bid they had initially won because the hotel did not want to honor all that was listed in the RFP. There would be no room for misunderstanding RFP requirements with the new software. Mr. Fidelie asked what was the one thing they needed to be more successful. Ms. Greer replied a new convention hotel. Mr. Leiker said the City has asked developers to build a hotel by MPEC, but they prefer to build by the mall or on the south side of town. Mr. Ginnings asked if there was anything that could be added to MPEC's budget to help pay for this. Mr. Sullivan said no. Jim Dockery said MPEC is breaking even with hotel/motel funds and revenue from its operations. But it is good to have them. The City does not capture the impact on sales tax revenue, so there is no way of knowing how much the City would lose without MPEC. (2) Incentive funding. Ms. Greer said the CVB offers a little incentive with each bid to sweeten the pot, as does every CVB. For example, they might offset the cost of meals, offer trolley rides, or free MPEC rentals. Since their budget request was submitted to the Council, they have won three more bids for which they need to supply incentives. One of the bids was for a junior heifer show. For this show, the incentive is to offset the cost of the Ag Center rental of $2,500. The convention will fill 600 room nights at an average room rate of $95. (3) Indoor artificial turf. In 2011, the CVB formed a sports alliance with local folks who have a vested interested in sports in Wichita Falls. The City is lacking in a quality WFEDC — Minutes of September 9, 2013 3 convention hotel, but it does have a lot of nice limited - service hotels. Many sports- related events do not require a full- service hotel. This alliance has looked into the possibility of an indoor soccer field. Mr. Sullivan said there are 46 indoor fields in Texas. The Girls and Boys Clubs and the YMCA have had success with indoor soccer leagues. With this turf, that could be expanded and the CVB could bid on tournaments. MPEC could also look into arena football and lacrosse. The arena football team in Allen, Texas, hopes to expand, so now might be a good time to make this purchase. There would be an easy changeover; arena football could be played in the afternoon and ice hockey in the evening. Ice hockey generates about $250,000 in gross revenues, including concessions and rental. Arena football would give MPEC another tenant. Mr. Fidelie questioned whether the community would support it. He asked if the Nighthawks semi -pro football team was successful. Mr. Sullivan did not know, but any conversation regarding arena football should include that team, as well. Mr. Ginnings asked the life expectancy of the turf. Mr. Sullivan estimated 15 -20 years. There would be no additional operating costs necessary, and he has adequate staffmg. (4) Video Scoreboard. Mr. Sullivan said the City is facing competition from arenas being built across the State. MPEC lost the Lone Star Basketball Conference to Allen, Texas, because they have a new building with a video scoreboard. The Wildcats' lease expires in March 2014. If the City can negotiate a new lease, they will commit to another five years. The league may mandate that a video scoreboard be installed at all arenas in the next year or so. They are the only team in the league without a video scoreboard. His estimate is for a four -sided scoreboard with video screens. There are variations, such as going with only two screens. He distributed a letter from Mike Castle of North Texas Rehab voicing support of a video scoreboard on behalf of the Ranch Roundup. Attendance at the Ranch Roundup has gone down the past two years. There is an effort to reinvent it to keep it fresh. The video scoreboard could do that. Mr. Sullivan said it would enhance many events. Dustin Nimz understands that it would enhance many events, but what events would not be held because of the lack of a video scoreboard. Mr. Sullivan said there are none until the hockey league issues its mandate. Mr. Ginning said it is similar to Castaway Cove; the City has to occasionally add something new to keep it fresh. Mr. Hatcher asked the life expectancy of the scoreboard. Mr. Sullivan estimates 10 years. Mr. Fidelie asked if the City is still paying debt service on MPEC. Mr. Dockery said the City issued $7 million in 2001 when the Coliseum was built, so there are still a few years left. Mr. Fidelie acknowledged the buildings add value to the City, but asked if they are profitable. Mr. Leiker said they are subsidized. Mr. Dockery said everyone involved in planning for MPEC knew they would have to be subsidized. The question was, would the hotel/motel fund support them enough not to have to use general fund monies. The City has dipped into the general fund only once for its operations, but it is close to that point. The thought was that the hotel/motel fund would increase more than it did. Mr. Sullivan said this is a tough market; concerts do not sell out that should. It is important to enhance the facility to get people to keep coming back. WFEDC — Minutes of September 9, 2013 4 Councilor Ingle said the City has been playing catch -up for a long time. He believes if MPEC has a turf system, it must also have the video scoreboard. That is the magic that would make people want to go there. It is time to make the investment. It is a risk, but he believes it could be the seed to help drive more growth and traffic into downtown. Mr. Hatcher said if it is a selling point for groups to hold conventions or events here, he is 100% for it. But he does not believe people will come to the Coliseum simply because there is a video scoreboard; they will come for the underlying event. Mr. Fidelie said they operate from a limited pool of money. He would prefer that $750,000 be put toward an incentive plan for a new convention hotel. If the number one problem is the lack of convention hotel, it would be better to offer money, land, and tax abatements to put in a new hotel. Mr. Ginnings closed the public hearing at 4:45 p.m. He said this is not an action item. He had proposed at an earlier meeting that the Board not take on any other projects until it is determined whether the City would have need of the funds for water - related issues. He also believes preference ought to be given to City requests over other organizations. 4. ELECTION OF OFFICERS Dustin Nimz was appointed to another term as Vice - President and Secretary /Treasurer. Jim Ginnings was appointed to another term as President. 5. ADOPTION OF BUDGET The Board unanimously adopted the budget as presented. 6. DISCUSSION Mr. Ginnings asked if the City had any funds to commit to the MPEC requests. Mr. Leiker said he could not speak for the Council, but it might be possible to look at general fund reserves for a piece of this. The Council did support this coming to the 413, so they support the projects. Mr. Dockery said the proposed budget includes $1.5 million of reserves allocated to it. Staff has utilized what seemed a reasonable amount of reserves. It might be possible to come up with another $200,000, but probably no more than that. Mr. Leiker said part of the reason staff is reluctant to dig deeper is because they are relying on an estimated 2% growth on sales tax revenues. If that growth does not materialize, there will be more dipping into the reserves. Mr. Dockery said other CVBs do not have to go to their 4B sales tax boards for operational expenses. But the hotel/motel fund only supports those three facilities so far. The indoor artificial turf and the video scoreboard would, however, be requests typical for a 4B board to consider. Mr. Leiker said it might be possible for the City to fund the incentive money and software purchase out of the general fund. Mr. Hatcher asked what the 4B Board might be asked to do regarding the City's water needs. Mr. Ginnings said he assumed staff would know if the 4B could assist. He wondered if 4B WFEDC — Minutes of September 9, 2013 funds could be used to deepen Lake Wichita, since there is so much dry lake bed now. Mr. Leiker said the deeper the lake, the more water would be wasted from Lake Kemp to keep it full. Evaporation from that lake can be as much as four million gallons per day. Beyond that, he thinks the water projects are covered. Between the water and sewer fund, enterprise funds, and increased water rates, the City will have the money. Mr. Ginnings asked about the possibility of capturing runoff water to dump back into Lake Arrowhead. Mr. Leiker said the engineers do not know if this is feasible. It would be hard to capture, and there are questions about the quality of that water. There are huge hurdles to jump through with TCEQ and it would take several years to get approved. Mr. Hatcher asked if the City could hold an election to be allowed to use 4a funds to assist with the long -term water solution. It might hold off a rise in water rates. Mr. Dockery said the 4A money needs to be kept for job creation. The City's water rates are not any higher than most other cities in the state. Mr. Leiker said the 4A Board could be asked to help in other ways. There is a potential to build a pipeline to PPG from the North Side Waste Water Treatment Plant to get PPG mostly off potable water, provided the quality meets their needs. The 4A Board could help with funding as it would be a job retention project. Mr. Ginnings asked how soon Mr. Sullivan needed the Board's decision. Mr. Leiker said he would prefer to hear as soon as possible, but there is nothing eminent. Mr. Ginnings asked Mr. Hugman to schedule another 4B meeting, bearing in mind that the meeting date be before the date of negotiation of the Wildcats contract. Mr. Fidelie said he is not sure that spending so much money for a video scoreboard is the best use of funds. Mr. Hatcher asked what other maintenance - related items might come up after this purchase for which MPEC would seek 4B assistance. Mr. Leiker said the City is keeping up with the buildings, budgeting for replacements and repairs. He cannot guarantee that something else will not come up, however. 5. ADJOURN The meeting was adjourned at 5:17 p.m. mil