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Min 12/16/1997 68 Wichita Falls, Texas Memorial Auditorium Building December 16, 1997 Items 1 & 2 The City Council of the City of Wichita Falls, Texas met in regular session on the above date in the Council Room of the Memorial Auditorium Building at 8:30 o'clock a.m., with the following members present: Kay Yeager - Mayor Don Johnston - Councilors Dan Shine - Angus Thompson - Bill Daniel - JW Martin - Harold Hawkins - James Berzina - City Manager Greg Humbach - City Attorney Lydia Torres - City Clerk Mayor Yeager called the meeting to order. Invocation was given by Reverend Bob Christmas, Allendale Baptist Church. Item 3 Andy Lee, 2611 Plaza Parkway, spoke in regards to the property at 600 Ohio. He explained that the property would require a sprinkler system for occupancy as a mercantile facility. They are working with First Step, Inc. which is a non-profit organization and do not believe First Step falls under the mercantile category. Mr. Lee requested clarification on the term general mercantile. In addition he requested that this become a warehouse application. Item 4 The Minutes were approved as distributed. Items 5a-7e Councilor Daniel asked that Item 6b be moved to the Regular Agenda. Moved by Councilor Johnston that the consent agenda be approved with the exception of Item 6b. Motion seconded by Councilor Shine and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None Item 5a RESOLUTION NO. 184-97 RESOLUTION CHANGING AUTHORIZED REPRESENTATIVES FOR LOCAL GOVERNMENT INVESTMENT COOPERATIVE 69 Item 6a Bid was awarded to Steco, Inc. in the amount of $160,275.00 for the purchase of three (3) each solid waste transfer trailers. Items 7a-7e Minutes of the meeting of the following boards and commissions were received. a. Planning and Zoning Commission, November 12, 1997 b. Board of Electrical Examiners, November 13, 1997 c. Construction Board of Adjustment and Appeals, November 20, 1997 d. Landmark Commission, November 20, 1997 e. Civil Service Commission, November 6, 1997 Item 6b Moved by Councilor Daniel that bid be awarded to Vance Hunt & Associates in the amount of $212,237.00 for the purchase and installation of Library furniture and shelving for the Library Renovation Project. Motion seconded by Councilor Thompson. Councilor Daniel informed that this is a major portion of the equipment purchase and total expenditure for remodeling of the Activity Center for the Library. This bid shows a savings of approximately $81,000. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None ., Mayor asked that Items 8a and 9c be moved to the end of the agenda, and that Item 9e be considered at this time. Item 9e RESOLUTION NO. 189-97 A RESOLUTION OF THE CITY COUNCIL TO PARTICIPATE IN THE PROCESS TO SECURE LOCAL HISTORIC DESIGNATION OF THE KEMP PUBLIC LIBRARY; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW Moved by Councilor Johnston that Resolution No. 189-97 be passed. Motion seconded by Councilor Shine. M1 Councilor Shine informed that the Landmark Commission asked for this designation and it puts the spirit of the sale into perspective. Also, it tells interested persons that we want to preserve this building. The City Manager felt that the sale of the building would be hampered by this; however, the spirit is to preserve it if we pass this resolution. He felt it was more of a timing issue; if we do not get the chance to explain that to the perspective buyers. His opinion was that it could have a detrimental affect to some who are interested. Mayor commented that they were amazed that the Library was not a landmark. I think we can argue either way. I believe all of us on the Council would strongly support the Library being designated a landmark. Mr. Clark explained that the action today would authorize the process and the landmark application would be brought back to the Council probably by the second meeting in January. 70 Item 9e cont'd. Gayla Morris, Executive Director of Landmark Commission, Rt. 5, Box 430, Wichita Falls, Texas, spoke in support of designating the Library as a landmark. She said if action was not taken now it could be detrimental to its salvage. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None Item 9f RESOLUTION NO. 190-97 RESOLUTION AUTHORIZING THE CITY MANAGER TO ADVERTISE FOR PROPOSALS FOR THE SALE OR LEASE OF THE KEMP PUBLIC LIBRARY BUILDING FINDING THAT SAID BUILDING IS NOT NECESSARY FOR MUNICIPAL PURPOSES; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW Moved by Councilor Martin that Resolution No. 190-97 be passed. Motion seconded by Councilor Thompson. City Manager suggested RFPs go out to the prospective users. We want to get the proposal into the most hands and into the most minds the awareness that this building is for sale or lease. It gives us a few more options. With a lot of help we would come up with the proposal. At a close-off period we would go over the proposals with a lot of public input. If we have something that is viable it would come back to the Council to award the bid. Councilor Johnston suggested that a marketing expert be obtained. City Manager stated that he would like to bring the proposal back to the Council for their blessing before it is sent out and at that time, report on marketing and advertising. Councilor Johnston commented that we have to reserve the fact that we may find a group of non-profits who would take over the building and maintain it for us. That has to be made known to prospective buyers. City Manager said that part of the message that we want to get out is that if anyone has a thought about this to put it in the way of a proposal, and anyone who has a potential use in mind to let us know. Councilor Thompson asked if the City had use for the building. City Manager informed that we do not have a need for it for administrative operations. However, any of our people are free to make a proposal, as well. Ann Smith, 2008 Irving, suggested that the County Historical Archives be moved into that building along with some non-profits. It would have to be a City-County effort, and it would need a fire proof room. Mayor commented that we are open to any proposals. It is a challenge to us and the community to find an adaptive reuse of this building. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None Ralph Harvey, said that we have a great opportunity here but it is going to take time to consolidate. We could make a mistake by abandoning a real historical landmark that could be used in the future for all the people. I think we will be able to give something to the community that they cannot get in any other way. 71 City Council recessed at 9:05 a.m. to attend the 4B Sales Tax Board public hearing. City Council reconvened at 9:30 a.m. Item 8b ORDINANCE NO. 127-97 AN ORDINANCE WAIVING MOWING LIENS, INTEREST, AND ATTORNEY FEES ON 15 VACANT LOTS IN THE NELSON STONE ADDITION; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW Moved by Councilor Daniel that Ordinance No. 126-97 be passed. Motion seconded by Councilor Shine. City Manager informed that there was approximately $12,000 property tax due and $20,000 in mowing liens. We propose to give up the liens in return for development. We propose that as the houses are built and occupied that Staff be authorized to eliminate any liens on the property in question. As these develop in a certain time period we would have authority from Council to forgive the mowing liens, interest, and attorney fees. Mr. Dave Clark clarified that the property tax liens would not be waived; those would be paid at the time of sale. The mowing liens would be waived upon receipt of a certificate of occupancy for a new home on the site. Councilor Shine was concerned that originally 15 lots combined were going to be considered and now it appears they are going to be considered on an individual basis. He was concerned that the City would be flooded with requests to get their mowing liens waived and he asked what would prevent that. Mr. Clark replied that mowing liens accumulate with interest over time to the point where the value of the lot becomes less than the liens and interest. In the sense of a pending development, which is the reason we attached the certificate of occupancy, it would be in the best interest of the City. Instead of a lot that is gaining interest and costs in lien amounts against itself, we have a new construction project that is a taxable entity. City Manager commented that we still suggest that these be taken on a case-by-case basis, and not do a blanket of them. This would reserve you the right to look at them as we go through them. Councilor Johnston said that the danger is if we do it on a lot-by-lot basis, why would anyone want to mow their lawns if it is going to be waived down the road? I thought we were going to look at this as a package. City Manager explained that we are looking at a package; it is just the way we would process ourselves through it. We are saying in effect that on this area we are designating this specific area that is eligible for this type of consideration. If it does not happen you have not waived it and you are not taking that package to any other place because you only designated this specific area, unless you decide to designate another area. The implementation tool is as it develops, you don't just waive the liens. Property Administrator Dorcas Chasteen clarified that mowing liens are waived on a regular basis every time a property is sold by Sheriff's deed. Councilor Shine asked under what authority was this done. Mrs. Chasteen was not certain but said that this had been done since she had been here. She will check into this and provide Council with an answer. City Manager stated that the City still intends to enforce liens. What we were trying to identify is areas where there is a likelihood of development. It is similar to some federal .. housing programs and there has to be some incentive. In this case the incentive is clearing the liens. It is like targeting an area, and unless it meets the criteria we are not going to get into this kind of arrangement. Additional discussion ensued. Elvin Dudley, builder, informed that he and the property owner came to an agreement this morning. I have everything ready to go; however, one of my concerns is that I need to obtain a title policy and cannot until the liens on the whole property are cleared. Mrs. Chasteen said she had checked on that and the liens can show up as an exception on the title 72 Item 8b cont'd. policy; and as long as the ordinance is worded like this one and is filed in the County Clerk's Office, there should be no lending problem. Mr. Dudley asked that the building permit, instead of the certificate of occupancy, be the deciding factor. Mr. Clark commented that they have had experiences with others, not with Mr. Dudley, who have obtained a building permit and did not build. Mr. Dudley stated that it would not be good business for him to spend $28,000 and put in water and sewer and then not build. City Manager said that if Mr. Dudley runs water and sewer lines, he would be willing to see where he is in the process. If he wants to start with four lots and it looks reasonable then I would proceed with that. But if we have a bad experience with that, then we would take that into consideration when the next batch is requested. We will work with Mr. Dudley. He emphasized that it is for this specific area only. Councilor Shine asked if he was talking about substantial completion. City Manager stated that in terms of the liens being waived, we have to look at that, and with the water and sewer in place, Mr. Dudley is going to have a substantial investment. Councilor Johnston suggested leaving this open and see how much progress Mr. Dudley is making and possibly go to a certificate of occupancy later down the road. Councilor Martin suggested that the City Manager and City Attorney make that determination instead of bringing it back to the Council. City Manager agreed that Staff should be authorized to work with Mr. Dudley and stay in tune by encouraging development. Fred Clifton, 2115 Allen, property owner, said that he believed that was a good proposal and this would take care of the subdivision in a nice way; and he is for it. Moved by Councilor Shine that the wording in Section 1 be amended by adding "on the basis of a building permit or certificate of occupancy". Motion seconded by Councilor Martin. Councilor Hawkins had a problem with changing the proposed ordinance to include a building permit or certificate of occupancy. He would like to pass the ordinance as it is and when Mr. Dudley puts in the water and sewer then he can come back and Council can waive the liens on the first four lots on a building permit. Councilor Martin withdrew his second. Several Council members suggested authorizing staff to waive the liens so that it does not have to come back to Council. Councilor Hawkins emphasized that Staff have that authority after the water and sewer line has been put in. Moved by Councilor Daniel that Section 1 be amended to read as follows: "The mowing liens filed against the following described real property by the City of Wichita Falls shall be waived upon the issuance of a building permit or certificate of occupancy at the discretion of the City Manager in consultation with the City Attorney" Motion seconded by Councilor Thompson and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None Motion on the original motion as amended carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None 73 Item 9a RESOLUTION NO. 185-97 RESOLUTION AUTHORIZING THE CITY MANAGER TO EXTEND THE CONTRACT WITH DONNIE'S BODY SHOP FOR TOWING OF VEHICLE FOR THE POLICE DEPARTMENT FOR ONE (1) YEAR REMAINING IN THE EXISTING CONTRACT Moved by Councilor Thompson that Resolution No. 185-97 be passed. Motion seconded by Councilor Martin. Concern was expressed about the clean-up after a wreck by the various wrecker services. Donnie Melton, owner of Donnie's Wrecker Service, informed that they obey/check with the officer on the scene to make sure the clean up is to their satisfaction. He did not think the other wrecker services did that. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None Item 9b RESOLUTION NO. 186-97 A RESOLUTION AUTHORIZING THE CITY MANAGER TO PROVIDE ADMINISTRATIVE FINANCIAL SUPPORT TO THE 4A AND 413 SALES TAX CORPORATION BOARDS Moved by Councilor Hawkins that Resolution No. 186-97 be passed. Motion seconded by Councilor Johnston and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None Item 9d RESOLUTION NO. 188-97 RESOLUTION APPROVING CONTRACT WITH BIGGS & MATHEWS, INC. FOR THE DEVELOPMENT OF A GROUND WATER MONITORING/SAMPLING PROGRAM FOR THE CITY OF WICHITA FALLS } SANITARY LANDFILL (PERMIT#1428) Moved by Councilor Thompson that Resolution No. 188-97 be passed. Motion seconded by Councilor Johnston. Mr. George Bonnett explained the requirements for ground water monitoring. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins 74 Item 9d cont'd. Nays: None Item 10 Moved by Councilor Martin that bid be awarded to Ag-Chem Equipment Company, Inc., a sole source, in the amount of $171,275.00 for a Model 004 Terra-Gator sludge application machine. Motion seconded by Councilor Johnston. Mr. George Bonnett explained how this land application equipment worked and the need to apply water treatment plant sludge to agricultural land for beneficial purposes. He commented that alternative disposal techniques had been looked at. One of the greatest risks is that TNRCC may change the regulations. Also, this material has to be hauled out to the agricultural lands and it has to be spread when the farmer or rancher needs it. There is also a problem that the land owners may change their minds. Lastly, is ranching interest in terms of the hauling costs, and it is not cheap. There is a risk but a justifiable and reasonable risk. Mr. Jerry Gross observed the equipment under operation in Iowa and he showed some photos of the material which he saw spread and he provided information on same. He mentioned that there was a thirty-day return on the equipment if it does not perform to the City's satisfaction. Mr. Gross informed that we were under no contractual obligation to spread the material; it is simply a matter of if we want the program to be successful and the only way we are going to do that is by moving into a piece of equipment that is large and heavy enough to disburse it to a pattern that is reasonable. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None Item 11 a Moved by Councilor Daniel that the 4B Sales Tax Corporation's Annual Budget be received and approved. Motion seconded by Councilor Shine and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None Item 11 b Moved by Councilor Thompson that the 4A Sales Tax Corporation's Annual Budget be received and approved. Motion seconded by Councilor Martin and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None City Council recessed at 10:30 a.m. and reconvened at 10:40 a.m. 75 Councilor Thompson was not in attendance. Item 11 c Mr. David Lehfeldt gave a presentation on the new refuse pickup method. Mayor commented that this was started on a trial basis two weeks ago and as a part of this trial we welcome the input from those citizens. It was mentioned that this was a six month test period and at the end of that time period it will be evaluated. It was also clarified that the City was applying this to curbside collection and that automated dumpster collection was not an issue at this time. Nothing will be done with regard to dumpster collection without major discussion. Mr. Bonnett will report to the Council in March, 1998. Item 11 d Councilor Hawkins asked that Mr. Parker check on a school zone sign which was down on Loop 11. Councilor Shine asked about the Lake Kickapoo Committee. Mayor informed that the Committee has not met because the Staff has been trying to ascertain from EPA and TNRCC what regulations would govern some of the questions we have discussed. It has been very difficult to contact the appropriate people and also to get answers from those people; however, that information has been received and we will be meeting shortly. Councilor Shine asked for an update on the relocation of the fire stations. City Manager stated that initial work had been done on relocating No. 5 and we will be picking that up since the property has been purchased. The question would be are there sufficient funds to do all three. We will either proceed with No. 5 and bring that back to you or we will try to get all three going at the same time. Councilor Martin mentioned that we would be losing parking in front of the Police Department because of the construction on 1-44 and asked how that situation was going to be handled. City Manager said that we did not have answers at this time. Mr. Robert Parker commented that there is still time to look at that since that will not occur until after March. However, we have looked at some of the side streets to increase parking and have talked to some of the people over there to see what we could do street-wise. Seventh Street will be closed and there is nothing that can be done on Seventh Street. Mayor and Councilors wished everyone a Merry Christmas to the Staff and the citizens. Appreciation was expressed to the Staff and to the citizens. Item 11 e City Manager informed that he will get the Lake Kickapoo Committee together. City Manager informed that we are putting in place the rest of the siren system and the emergency warning system will be going on in the City. Mr. Robert Powers reported that we were approved for a State library grant to enhance the computer capabilities at the new Library facility. Mr. Powers informed that the Legislature amended a statute which now extends to cities an option for negotiating energy management performance contracts. We are now allowed to negotiate with a firm to put in energy management savings equipment and procedures and have the cost of that installation and contract guaranteed and paid back over a ten year period. We have met with representatives from Enershop, Dallas, and have given them a letter to prepare a feasibility study for our City. This will be at no charge. We will take the information and if it looks viable we will prepare an RFP and bring that back to Council. 76 Item 8a ORDINANCE NO. 126-97 AN ORDINANCE APPROPRIATING $102,443 FROM THE GENERAL FUND FOR PARTIAL REPAYMENT OF A HOME PROGRAM GRANT FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW Moved by Councilor Johnston that Ordinance No. 125-97 be passed. Motion seconded by Councilor Shine. City Manager commented that we are here because of a 1993 agreement that attempted to make use of federal funds that the City under the HOME Program could not make use of. We got a portion of that program direct to us and something like 15% was also a set aside that could be used if we got into a particular situation utilizing those funds with some other agency for home improvement type program. I think everyone went into it thinking that this was another opportunity to provide housing in the community and it was a program that just did not work the way we hoped it would. It was a situation that we went into with the insight that it could be risky but it was well worth trying. Mr. Dave Clark provided the following program history. Federal HOME Program for housing assistance comes with a 15% set aside for not-for-profits that qualify as Community Housing Development Organizations (CHDO). Intent of federal government is to empower community based agencies. This is not money that an entitlement city can otherwise use. At the beginning of Home, practice was that you must have CHDO to get the other t $700,000. City sought CHDO involvement and has, from time-to-time, put out direct mail to 62 agencies soliciting response. Jerusalem Community Development Corporation (JCDC) has been the only respondent with the board composition to meet HUD requirements and only one other agency has ever responded at all. Contract with JCDC was executed January 1993. Conflict of interest waiver was processed and received through HUD for Angus Thompson, since Mr. Thompson received no direct benefit from funding. General intent was to purchase seven homes to rehab and sell. Seven homes were purchased in late 1993 for the amount of $111,623, just under the contract amount of $112,500 which reflected the 15% set aside. All properties, but one, were occupied when purchased and all were purchased from HUD. Actual check would have gone directly to the seller (HUD) at time of closing. Second agreement was made with JCDC in 1994, in next program year, for the purpose of buy down of mortgage to provide additional affordable housing. No funds were spent and contract has not been terminated. Information on reporting requirements and processes was provided to JCDC in writing and at several meetings. In fact the first written correspondence went to JCDC in October, 1994, urging action on the properties. JCDC had flexibility in its decisions on how to achieve rehab and dispose of properties, although federal requirements would dictate a minimum of housing quality standards. Staff met with JCDC on several occasions to discuss their options and leverage possibilities, i.e. 203K. Staff was not supportive of any additional City administered federal monies to go into these homes. One rehab was completed and the building was sold. Use of the proceeds is not part of the program requirements. Monitoring review by HUD in early 1997 said rehab needs to be completed and gave dates for indication of resolution of action by the City. i As grant recipient, the City is ultimately responsible for administration of federal funds. We provided forms, counseling, and notification of program needs to JCDC, but did not sit in on daily administration. Sub grantee did purchase the seven homes and provide housing opportunities for low/moderate income people. So use of the money is not a real question. JCDC pledged to complete rehab after HUD report, but were unable to accomplish this. City then learned that property taxes were delinquent on the six remaining homes and that IRS had placed a lien on all JCDC property due to other issues not part of this program. JCDC was given time to complete the rehab. City investigated IRS issue to see if six could be removed from lien (costly procedure). City had no interest in assuming IRS and back tax issues. Eventually it was suggested that two of JCDC other properties could be sold to 77 Item 8a cont'd. cover debts. Sale was completed and liens paid November, 1997, which brings us to this date. In order to resolve this issue, we recommend payback of $102,443 from General Fund to HUD, which cancels the project. This action would effectively cancel the project from date of payment, minimize relocation cost exposure, as well as additional costs on the properties. City would receive monies from potential property sale. City must also receive money for study that had been a cooperative effort on the old Washington Elementary School in the amount of $2,136. Properties have tax appraised value of $207,276, which means the City could recoup more than its direct expenditure or it could also be less. There may be a responsibility for relocation benefits to tenants who moved from the properties during JCDC ownership, prior to this proposed cancellation of the project. The sale would still be accomplished through JCDC, with City approval. Rental income would be placed in an escrow account to pay taxes, insurance, a management fee to a private agency, and repairs beyond the scope of normal tenant responsibilities. If the City just assumes title, then sale is limited by State law to sealed bid or auction format and general fund stands to lose. HUD is seeking resolution by December 31, 1997. They have the authority to stop all federal funding from coming into Wichita Falls after that date, if they should choose to. City was constrained by IRS and other liens until November. Now we believe that what we are promoting and recommending is the best format for procedure. We have negotiated an agreement with JCDC which has been executed by them. Mr. Bill Sullivan informed that the agreement sets out what would happen to those six properties over the next year. The agreement would require that those properties be listed with a local realtor and be put on the market. As a part of that, the realtor would prepare a market analysis so we would have some idea of what the true value of the property is worth. In order to provide some security to the City to assure that we get paid back the $102,000, we have asked JCDC to execute a promissory note and also a deed of trust to place those properties in trust. The City would have final say so on any offers made for those properties. During that time the rental of that property would be used to pay taxes, insurance, maintenance and management fees. The agreement provides that those properties must be sold within one year, before the end of December 1998. If they are not sold the City has the option to either foreclose on the note which will become due and payable, or ask JCDC to execute a quit claim deed to the properties back to the City so that all properties which are not sold, the City would regain possession and title to those properties. Mr. Clark commented that this option would cancel the project and that would be in the best interest of the City. Selling those properties would accomplish that if the City would be loaning the money for a small period of time but the General Fund stands to be reimbursed and stands to do even better than the amount of money being taken out. It was mentioned that JCDC had an offer to purchase the property, and the question was whether the City wanted to put it on the market and see if they bring more than the $102,000. Councilor Martin wanted to see the City out of it. Councilor Daniel mentioned that Councilor Hawkins did not have any financial consideration in this, and we all have the same goal of getting the City off the hook for this $102,000. However, he has a concern that although there is a prospective buyer, the public at large has not known about this opportunity, and the Council could be accused, after the fact, of directing one person to a deal. That is a risk we cannot take. If there is an opportunity for someone to buy some houses it needs be open to everybody. Councilor Hawkins stated that he has heard that we do not need to spend tax dollars on bailing out JCDC. We need to go ahead and get the City out of it and that is how I approached this. I called persons who buy properties and only one was willing to look at this. The location of the properties is not ideal. I hate to see us put tax dollars in there. I think we could possibly make a profit off of it, but the problem is the way it is drawn up. We are drawing up all the liability for the repairs to bring the property up to market standards. The taxes owed for this year will go into next year, and if they are not paid by January we will start drawing penalties on those also. All of those will start accumulating and will eat into this possibility gain that Staff is looking at. What happens if we do not appropriate this money, and is JCDC bound to dispose of the properties? Mayor replied that if we do not pay HUD by the first of January that jeopardizes all federal funds that come to the City of Wichita Falls that come from HUD. Mr. Clark stated that the only recognition of HUD is that if funds are paid out of the General 78 Item 8a cont'd. Fund. HUD does not care how they go back into the General Fund. Councilor Hawkins asked if we did not approve this, what control would we have over JCDC. The control we would have over JCDC would be to sue them. Councilor Shine asked if we approved this what would prohibit that sale from happening anyway? City Manager replied that we would engage a realtor to handle the sale and that person can approach it that way. As Councilor Hawkins said you have added some costs and you have opened it up, and it would not have any images of slotted towards one individual. Either way seems to have its difficulties of running a risk of not getting your money back, where here is a nice tied up way, the money is already set there to be recovered and the houses sold. However, there may be a timing problem with the prospective buyer on wanting to get this accomplished before the end of the year. Mr. Clark commented that in the real estate negotiations that is an offer, and it does not have to be what is accepted. Councilor Martin suggested that in order to protect the City, the $102,000 be authorized today and leave it open for the person who has made the bid since they could always come back and agree on this if it falls through. Mr. Clark stated that we have, in negotiations of JCDC contract, approached it to give you and the citizens a security in that there are signed documents that assure that JCDC has a constraint on the properties with a deed of trust and a liability to give you that money back from the sale of those properties. Councilor Martin said nothing has been presented to us from the interested party. Mayor informed that the presentation was made to JCDC since they are the owners, not the City. Councilor Martin asked if JCDC had rejected that offer. Mr. Clark replied that he did not know, we were not given a copy of the offer. Councilor Hawkins stated that Councilor Thompson had said that they could not accept the offer until the City determined whether or not it could. Mr. Clark said that if Council authorizes the contract and the documents, which say that the City approves the sale, and then if Council wants to turn around and approve the sale that can be accomplished. You have basically constrained the property with this authorization to make sure that those steps are followed and that the City gets back its amount of money and that it has a lien on the properties to see that that happens. Councilor Hawkins stated that if we go ahead and approve this appropriation of $102,000 from General Fund to send to HUD, before the sale should be made, who is going to determine whether or not we approve the contract that JCDC approves? Mr. Clark replied that one thing which has not happened is that there has not been an appraisal or market value by a real estate agency. We do not know the value of those properties. Councilor Hawkins again asked who was going to approve the contract that JCDC agrees to? City Attorney replied that Council would. Councilor Hawkins commented that at that time he could refrain from that decision and draw a commission. City Attorney stated that he would have to research that, but he thought the answer to that would be no. Mayor did not think we should obligate the repayment of HUD without the security of the properties as an offset, and without these papers in hand we do not have that security. Councilor Martin stated that the question now is the individual who made that proposal and would there be enough time to get this done by December 31. We are boxed in a situation to accept this. City Manager commented that you are in a situation to have to make a decision. JCDC has told us that they would sign this contract which gives the City the assurance that those properties are now pledge to pay the City back. The third element is you have an offer on the table to pay the City $102,000. The dollars appear to be safeguarded. The question is how do you want to handle the sale of the houses. Councilor Johnston commented that our purpose on this deal is not to make money but not to lose it and to get the situation cleared up. The only thing that worried me initially was what is the market value. Councilor Hawkins informed that the offer was made without inspection of the property, it was made on a drive-by, and he is taking a gamble on this. Councilor Martin called for the question. Point of Order was made by Councilor Hawkins. The citizens have not been given an opportunity to comment. Councilor Martin withdrew his call for the question. Mayor allowed comments from the audience. No one wished to be heard. Councilor Martin called for the question. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Daniel, Martin, and Hawkins Nays: None 79 Item 9c RESOLUTION NO. 187-97 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH JERUSALEM COMMUNITY DEVELOPMENT CORPORATION FOR THE RESOLUTION OF A FEDERAL HOME PROGRAM GRANT FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW Moved by Councilor Martin that Resolution No. 187-97 be passed. Motion seconded by Councilor Daniel. Councilor Johnston commented that the wording of Section 1 does not state the nature of the agreement and that the purpose should be clarified. City Attorney suggested that the agreement be identified as Exhibit A and labeled as Exhibit A. Moved by Councilor Johnson that Section 1 of Resolution No. 187-97 be amended to refer to the agreement as Exhibit A . Motion seconded by Councilor Daniel and carried by the following vote. Motion on original motion as amended carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Daniel, Martin, and Hawkins Nays: None Item 11f The City Council went into Executive Session at 12:50 p.m. as authorized by Section 551.074 of the Government Code, and reconvened at 1:17 p. m. Councilors Thompson and Martin were not in attendance. Item 11 g Moved by Councilor Johnston that the following persons be re-appointed and appointed to the Board of Adjustments: Re-appointed: Mr. Charles Peters, Mr. Donald McKinney and Mr. David Seaton with terms to expire December 31, 1999; Appointed: Mr. John Key to replace Mr. Roger Murphy, term to expire December 31, 1999 Mr. Bobby Redwine, as Alternate No. 1 to replace Mr. John Key, term to expire December 31, 2000 Mr. James Heath as Alternate #2 to replace Mr. Bobby Redwine, term to expire December 31, 2000. Alternate #3 and Alternate #4 positions were left vacant and Council requested interested persons apply in the City Manager's Office.. Motion seconded by Councilor Hawkins and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Daniel, and Hawkins Nays: None 80 Item 11 h Moved by Councilor Johnston that Mr. Dewey Nicholson, Dr. Michael W. Brooking and Ms. Peggy Jo Scott be re-appointed to the Wichita Falls/Wichita County Public Health Board with terms to expire December 31, 1999. Motion seconded by Councilor Hawkins and carried by the following vote Ayes: Mayor Yeager, Councilors Johnston, Shine, Daniel, and Hawkins Nays: None Item 11 i Moved by Councilor Johnston that Ms. Vida Cooke be appointed to the Mental Health Mental Retardation Public Responsibility Committee to replace Ms. Jean Puckett, with term to expire August 31, 1999. Motion seconded by Councilor Daniel and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Daniel, and Hawkins Nays: None Item 11 i There were no appointments made to the Commission On Human Needs. Appointments will be delayed until the January 6, 1998 Council meeting. Council requested that interested persons apply in the City Manager's office. Item 11 k There were no appointments made to the Wichita Falls Park Board. Appointments will be delayed until the January 6, 1998 Council meeting. Council requested that interested persons apply in the City Manager's office. Item 111 Moved by Councilor Johnston that the following persons be re-appointed and appointed to the Clean Community Commission: Re-appointed: Arnold Oliver, Ms. Pat Nelson, Ms. Sunny Davidson, and Mr. Jerry Vandiver, with terms to expire December 31, 1999. Appointed: Mr. Mark Terning to replace Ms. Norma Crane, term to expire December 31, 1999. Motion seconded by Councilor Hawkins and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Daniel, and Hawkins Nays: None 81 Item 11 m There were no appointments made to the Landmark Commission. Appointments were delayed until the January 6, 1998 Council meeting. Council requested that interested persons apply in the City Manager's office. Council wished everyone a happy holiday season. The City Council adjourned at 1:22 p.m. PASSED AND APPROVED this day of , 1998. jix KA HRYN A. Y GER MAYOR ATTEST: ('n Lydia Torres Ciiy Clerk