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Min 02/03/1998 97 Wichita Falls, Texas Memorial Auditorium Building February 3, 1998 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 Jerry Hodges, Western Hills Baptist Church. Item 3 Catareno Lopez, Public Works, was honored as Employee of the Month for the month of February. Mayor presented him with a plaque, City pin, transit tickets, dinner tickets, and a check. Mayor Yeager proclaimed the month of February as "National Volunteer Donor Month" in Wichita Falls in honor of all blood donors and she urged all citizens to donate blood regularly. Lyn Gast, American Red Cross representative, accepted the proclamation. Item 4 No one signed up to speak under public comments. Item 5 The Minutes were approved as previously distributed. Mayor commented on the joint worksession between the City Council and the W.F.I.S.D. Board which was held on Monday. We hope this will be a road to greater cooperation between the two entities. We each serve the same group of citizens by in large in this community and we hope to look for better ways to serve those constituents of ours. Both entities hope to look for better ways to serve the citizens by improving the programs each of us offer and cooperating with each other to ultimately provide savings to the taxpayers of the City of Wichita Falls. 98 Items 6a-8d Councilor Thompson asked that Item 8c be brought down to the regular agenda, and Mayor Yeager asked that Item 6e be brought down. Moved by Councilor Johnston that the consent agenda be approved with the exception of Items 6e and 8c. 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 6a RESOLUTION NO. 11-98 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, REAPPOINTING SUBSTITUTE JUDGE OF THE MUNICIPAL COURT FOR A TERM OF TWO YEARS; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS DISCUSSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Item 6b RESOLUTION NO. 12-98 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, AUTHORIZING THE CITY MANAGER TO APPLY FOR ASSISTANCE UNDER THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS EMERGENCY SHELTER GRANT PROGRAM, AND TO EXECUTE ANY NECESSARY CONTRACTS WITH THE STATE AND NONPROFIT AGENCIES INCLUDED IN THE APPLICATION TO OPERATE THIS td . PROGRAM; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW Item 6c RESOLUTION NO. 13-98 RESOLUTION TO APPROVE A CONTRACT WITH TEXAS UTILITIES ELECTRIC COMPANY FOR RELOCATION AND ADJUSTMENTS TO TRANSMISSION AND DISTRIBUTION LINES AFFECTED BY THE PLUM CREEK FLOOD CONTROL PROJECT Item 6d RESOLUTION NO. 14-98 RESOLUTION AUTHORIZING THE CITY MANAGER TO SUBMIT A GRANT APPLICATION TO THE TEXAS LIBRARY ASSOCIATION IN THE AMOUNT OF $2,500 FOR STORYTIME KITS Item7a RESOLUTION NO. 16-98 RESOLUTION TO AWARD BID AND CONTRACT FOR THE CYPRESS ELECTRICAL IMPROVEMENTS PROJECT (PHASE 1) Item 7b Bid was awarded to Construction Agricultural Supply in the amount of$152,771.00 for a front end loader. 99 Item 7c RESOLUTION NO. 17-98 RESOLUTION AWARDING BID TO BAKER SUPPORT SERVICES, INC., FOR TELEPHONE MAINTENANCE SUPPORT SERVICES AND AUTHORIZING THE CITY MANAGER TO ENTER INTO AN ANNUAL MAINTENANCE AGREEMENT FOR SUCH SERVICES Items 8a-8c Minutes of the meeting of the following boards and commissions were received. a. Library Advisory Board, December 9, 1997 b. Commission on Human Needs, January 19, 1998 d. Wichita Falls Park Board, January 22, 1998 Item 6e RESOLUTION NO. 15-98 RESOLUTION TO APPROVE CONTRACT WITH ENGINEERING FIRM OF BIGGS & MATHEWS, INC. FOR 6T" STREET TRUNK MAIN EXPANSION Moved by Councilor Johnston that Resolution No. 15-98 be passed. Motion seconded by Councilor Thompson. Mayor Yeager asked if the route of the sewer going down Lamar Street to Second Street was in alignment with where Lamar Street will be when the Coliseum will be built at MPEC. Mr. George Bonnett replied in the affirmative. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None Item 8c Moved by Councilor Thompson to receive the minutes of the 4A Sales Tax Corporation Board dated December 15, 1997. Motion seconded by Councilor Johnston. Councilor Thompson asked for clarification regarding the 600 full-time equivalent. Mayor stated that the work force is anticipated to be 600 full-time equivalent when that industry is in operation. Mr. Ron Bullock informed that it is designed to start off and wrap up to 200 employees, and the center is being designed sometime in a two- to four-year plan to wrap up to the 600 full-time equivalent, which may be 800 employees. Some will be part-time and some temporary, but it will be a full-time equivalent of 600 employees. Councilor Hawkins questioned if the $1,860,000 figure should be $186,000 in the comparison regarding marketing and promotional costs. He stated that the minutes reflect that the projected income is $186,050 and Mr. Mertens stated that they can request no more than 10% or$186,000, and they were requesting $88,000 which is 5%. After reviewing the minutes, City Attorney clarified that he thought the intent is that BCI requested $88,000 and the projected first year income was $1,860,000 and the $88,000 is less than 5% of that $1,860,000. However, it is worded awkwardly. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins 100 Item 8c cont'd. Nays: None Item 9a A public hearing was held to receive comments regarding the proposed use of funds to be received from the Bureau of Justice Assistance (BJA), U.S. Department of Justice. Mayor Yeager declared the public hearing open. Mayor informed that this is a public hearing for the distribution of funds in the amount of $210,761 under the Local Law Enforcement Block Grants Program. The City of Wichita Falls will have to make a match of $23,395 for this federal money. It is proposed that this grant money be used for overtime pay for police officers in the amount of $70,254 and the rest of the grant would be used to purchase improved technology for use in the Police Department. Mayor allowed for public comment. There being no one who wished to be heard, Mayor declared the public hearing closed. Item 9b A public hearing was held on hazardous structures. Mayor Yeager declared the public hearing open. Items were taken in the order listed in the agenda book. Mayor informed that Item 10 would be taken up separately. Mr. Jim King presented information and video on items 1 and 2, structures to be repaired. Reagan King, 4106 Wanami, Wichita Falls, lien holder for 1110 Alma, stated that he sold this property to Mr. Samples four years ago. He received notice one year ago that repairs were needed and he notified Mr. Samples, but repairs were not done. He has spoken with Code Enforcement and will work to resolve this as his contract with Mr. Samples will allow. Mr. Jim King informed that the property owner did reinstate a permit for repairs after the public hearing had been announced, scheduled and put on the agenda. Some efforts have been made to start reconstruction of the building. Mr. Reagan King was allowed six months to get all permits in order and begin repairs. If no repairs have been made at the end of six months, demolition will ensue. Everett Olson, B & E Construction, 2203 Broad Street, informed that Hershell Tubbs owner of 704 Burnett, asked him to begin repairs at that property. He has submitted a contract to Mr. Jim King. Mr. King confirmed that paperwork was submitted to his office after the public hearing had been scheduled. The concern with this is that there was a fire in 1995 and several permits have been issued with promises to repair the building and that has not been forthcoming. We want to make sure that repairs are made. Council allowed six months to obtain necessary permits and to begin repairs; if there is no action within six months by the property owner, the structure will be demolished. Jerry Pesterfield, Rt. 3, Box 492, Wichita Falls, and Merlin Dean, 1711 Collins, owner of 2810 Sherman came before the Council. Mr. Pesterfield informed that he had purchased 2810 Sherman from Mr. Dean last year and he cleaned it up after a structure fire. He had put it on the back burner and would like to obtain a permit to bring it up to Code. He asked for a six month extension. Mr. King stated that the building had experienced a fire and would require major rehabilitation. Mr. Pesterfield was allowed sixty days to obtain the permit and get everything in order and six months to get the repairs underway. Gordon, Peterson, P.O. Box 366, Wichita Falls, owner of 3315 Garfield, stated that he has submitted plans and an expenditure list to Mr. King. He has cleaned out the building and has done some repairs to the back wall and needs an additional permit to proceed. Mr. King informed that paperwork was received after the public hearing had been announced, scheduled and put on the agenda. Mr. Peterson was allowed six weeks to obtain the permit and six months to begin repairs. Sylvia Nanez, 2916 California, was representing Mary Jo Villegas owner of 507 N. Travis. Mr. King informed that the property has been vacant for several years and the water was disconnected in 1993. We have received complaints from people who live in the 101 Item 9b cont'd. neighborhood. It will take major renovation and no attempt since 1993 has been made to rehab. Mrs. Nanez stated that they wanted to tear it down and want to know how much time they have. Mr. King informed that the Ordinance authorizes thirty days from today to pull the permit. He offered to provide a list of contractors for demolition. Mrs. Nanez will get with Mr. King. Mayor stated that Item 10 would be taken up later. George Foster, 1910 McGregor, informed that they own the day care at 609 Flood and have been trying to acquire 607 Flood, which is under trusteeship, for about a year. The owner of 607 Flood is deceased. Delinquent taxes have exceeded the property value. My intent is to replat the property and build an activity room. When authorized, he will secure the property. Mr. Dave Clark added that this property is under trusteeship and went through the process of Sheriff's Deed but was not purchased, therefore, was struck off for the trusteeship under the City for the taxing districts. The complexities are those legal issues and that is what Mr. Foster is going through. The next step is the sealed bid process. City Manager stated that Mr. Foster had presented a good plan and if Council wants us to work on this we can always bring it back. Council agreed that Staff work with Mr. Foster. Dorothy Thomas Black, 1239 Cedar Haven, Dallas, Texas, 75216, asked for additional time to remove the rear building at 603 Roosevelt and to save and protect the main structure from further deterioration. Mrs. Black was allowed thirty days. Wade McCloud, 999 Pecanway Dr., owner of 711 Clay, said that they had a structure fire and he is dealing with the insurance and is waiting to hear from them. He has secured the structure four times and vagrants have torn the boards down. Mr. King informed that there had been a fire and there is some damage that is not fire related. We will work with him, but the structure is going to need major renovation. Mr. McCloud said he would board it up again and do whatever he needed to do, but he was going to wait to hear from his insurance company. Mr. McCloud was allowed sixty days to obtain his permits and six months to get started on the rehabs. Mr. King made it clear that they could not go past the sixty days if there was further delay. Mr. McCloud said that depending on how much he received from the insurance company would determine whether he would tear the building down or repair it. Mr. McCloud agreed to this time frame. Martha Irving, 1634 Harding, regarding 1921 Hampton, explained that this property had been under foreclosure when she appeared before. Her attorney drafted a letter as to why the foreclosure was taking so long. He told her she could not sell the property but could take possession of it and rent it. The property is secured, and Mrs. Irving wanted to know how much time she has to get permits. She has a contractor ready to go to work after she has the permits and knows how much time she has. Mr. King clarified that there was an accessory building adjacent to this which was presented to Council last year. This building has not been before Council. Mrs. Irving was allowed sixty days to obtain permits and six months to begin repairs. 1804 Adrian. Councilor Hawkins stated for the record that he has monetary interest in this property and will not take part in the discussion or in the decision. Thomas Hebert, 4221 Seymour Highway, owner of 1804 Adrian, stated that he had a structure fire last year and decided to sell the property, instead of rebuilding. He has signed a contract with Drywall, Inc. for the purchase of that property. They will be closing on the house tomorrow, and asked that additional time be allowed for the buyer to make repairs to the building. He will need time to obtain permits and to begin repairs. Prospective buyer was allowed sixty days to obtain permits and six months to begin repairs. Mayor allowed for additional public comment. There being no one else who wished to be heard, Mayor declared the public hearing closed. Mayor asked for two motions, one for all the structures with exception of 1804 Adrian, and one for 1804 Adrian. 102 Item 9b cont'd. ORDINANCE NO. 7-98 AN ORDINANCE CLOSING HEARING AND FINDING CERTAIN BUILDINGS AND/OR STRUCTURES TO BE DANGEROUS; COMMANDING PROPERTY OWNERS TO DEMOLISH SAID BUILDINGS AND/OR STRUCTURES WITHIN THIRTY (30) DAYS OF THE DATE OF THIS ORDINANCE AND DECLARING AN EMERGENCY; 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. 7-98 be passed with the exceptions noted above during the public hearing and with the exception of the property located at 1804 Adrian. Motion seconded by Councilor Thompson and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None Moved by Councilor Martin to approve the action on the property located at 1804 Adrian as stated during the public hearing. Motion seconded by Councilor Thompson. Councilor Hawkins stated for the record that he has monetary interest in this property and that he has signed an affidavit that he will not take part in the discussion nor in the vote. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, and Martin, Nays: None Abstain: Councilor Hawkins Item 10a ORDINANCE NO. 8-98 AN ORDINANCE WAIVING SECTION 4220(I), OF THE ZONING ORDINANCE, GOVERNING THE PLACEMENT OF A CARPORT IN THE FRONT SETBACK AREA AT 5118 INLET DRIVE; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW Moved by Councilor Hawkins that Ordinance No. 8-98 be passed. Motion seconded by Councilor Johnston. Mr. Clark informed that Planning & Zoning concluded that there was access from the rear alley and they were not in a position to waive this, therefore, forwarded it to Council. Shirley Wagner, 5118 Inlet Drive, owner of property in question, informed that this was a short street with 34 homes and there are seven carports within the area and one next door to them. It would be very expensive to build a carport in the rear because there is a utility pole which would make it almost impossible to get in and out, and there are trees which would need to be removed. Also, during heavy rains there is a drainage problem in the back yard which makes it difficult to enter and exit through the rear. Don Williams, 5120 Inlet, next door neighbor, said he does not have a problem with allowing this and highly recommends the waiver. 103 Item 10a cont'd. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None Item 10b ORDINANCE NO. 9-98 AN ORDINANCE WAIVING SECTION 7635C OF THE ZONING ORDINANCE WHICH REQUIRES THE POSTING OF SIGNS ON EACH PROPERTY PROPOSED FOR REZONING; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE WAS PASSED WAS OPEN TO PUBLIC AS REQUIRED BY LAW Moved by Councilor Martin that Ordinance No. 9-98 be passed. Motion seconded by Councilor Johnston. Mr. Dave Clark informed that they are in the process of rezoning the newly annexed areas so that commercial business and other uses are more recognized in accordance with the zone that they should be in. We have done a zoning proposal and submitted it to the property owners who are in the process of working through that. In order to complete that there is a requirement that a sign be placed on all the properties that are to be rezoned. We have notified 440 property owners, some of which will remain in the single family zone. The number of signs would be ridiculous and we propose to post signs appropriately in the neighborhood so they understand what is going on. We will have three notifications to the property owners by mail. This is a technicality that we request Council waive. A map of the entire area with the proposed zoning was mailed to the property owners. Councilor Hawkins was concerned that there should be signs on a property that is not going to be single family. Councilor Shine had a concern regarding personal contact with the property owners. Mr. Clark stated that they have a Planning Commission workshop scheduled. Councilor Shine felt that people did not understand what zoning was, other than single family zoning. Mr. Clark informed that property owners in the entire areas were sent a map of the proposed zoning, an explanation of each of the proposed zoning districts as stated in the Ordinance, and also the requested reply for animal control changes. Phone numbers and contact persons were also included with that information. I am not exactly sure what you are asking, there are 440 property owners; what would you like us to do. Councilor Shine suggested making personal contact. Mayor clarified that Councilor Hawkins suggested waiving the posting of signs for single family properties but post signs at all other properties. Councilor Hawkins and Councilor Shine agreed with this. Moved by Councilor Hawkins that motion be amended to place signs notifying of zoning change on any and all properties that will be zoned other than single family residential and use those area signs for all others. Motion seconded by Councilor Johnston. Councilor Daniel asked if the property owners will be notified about the workshop. Mr. Clark replied that they were notified in the mail-out. For further notification, Mayor announced that there would be a Planning & Zoning workshop on March 11, 1998 at 2:00 p.m. Also, Mayor noted that the letters mailed out by the Planning and Health Departments contained a request for a response by March 1. Motion on the amendment carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins 104 Item 10b cont'd. 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 Item 10c ORDINANCE NO. 10-98 A ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, APPROVING FUNDING OF THE 4A SALES TAX REVENUES IN THE AMOUNT OF $400,000 TO APAC TELESERVICES, INC., FOR THE COSTS ASSOCIATED WITH RENOVATING AND RELOCATING A NEW BUSINESS INTO THE OLD K-MART BUILDING ON LOOP 11; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW Moved by Councilor Hawkins that Ordinance No. 10-98 be passed. Motion seconded by Councilor Thompson. Mr. Ron Bullock, 4-A Sales Tax Corporation Board Representative, referred to the 4-A Sales Tax Board minutes and noted that they were very confusing. He clarified that early on they had estimated $1.8 million revenue and only a maximum of 10% could be used on marketing and promotions, and the $88,000 was well under that. The full-time equivalent could have been written by saying that we expect full-time equivalents would be somewhere in the 600-800 employee maximum at this facility at some point in the future, but we keyed on 200 employees for this project. Mr. Bullock asked Mr. Ron Mertens, BCI President to provide a quick visual on what impact APAC would have on our community. Mr. Mertens stated that a decision had not been made by APAC at this point. Mr. Mertens informed that APAC is a very large tele-service company with in-bound and out-bound facilities. In Wichita Falls we are interested in an in-bound facility. Mr. Mertens provided information on APAC. It is a customer service center and much of that is being out-sourced to companies like APAC. The site under consideration is the K-Mart on Loop 11. They are looking at investing about $8.7 million; of that amount $2.7 million would be in the building and $6 million in the furniture and fixtures. It would be set up for 550 stations or chairs and that is the size employment that could be carried out in the facility at one point. It is shift work, therefore, more than one employee would be occupying one of those stations during a 24-hour period. They would look at a facility in Wichita Falls at having a maximum of 800 full-time equivalent jobs, about half would be full-time jobs, the others would be part-time. So at the full 800 full-time equivalent level would mean actual employment of 1200. The size of the employment would depend on our labor force. He showed pictures of the K-Mart building, exterior and interior views. Also, shown were pictures of an APAC center opened in Corpus Christi. Mr. Mertens added that when they reach 200 full-time employees in the facility, that is when the payment would be made to them. Councilor Thompson asked about the enterprise zone in that area. Mr. Mertens explained that they have three parts of the incentive package that they are working on - the 4A Sales Tax provision, the enterprise project status, and training funds. The enterprise zone that is in place runs down the middle of the street and K-Mart is not on the right side of the street. The zones expire this fall and will have to be re-done, so we are looking at how the zones can be re-designed to bring this building into the zones. Part of this project is getting it to qualify as an enterprise project. We will come back on February 17 to discuss the enterprise zone with you. Mayor asked Mr. Mertens to explain the importance of that designation. Mr. Mertens explained that enterprise zone is a state program and you begin to qualify an area of a community or county and it is done statistically. Once a zone is established then a project can be developed within the zone. The benefits to the company are rebate of sales taxes on new 105 Item 10c cont'd. investments, utility discounts and reduction in state franchise tax. The company then makes a commitment to hire 25% of the new employees from the zone or from the disadvantaged category. Mr. Mertens mentioned that the enterprise zone project could be worth $700,000 to $800,000 because of the amount of investment and utility savings. According to an economic development model created at Midwestern State University, using a $7 million payroll, the annual economic impact from this project would be about $12 million to $13 million. Looking at taxes, same level of payroll, the return to all taxing authorities would exceed the $400,000 in one year. The return for the City would be about four years, looking at just the project, at the return from a property tax standpoint on the valuation of the property, and looking at sales taxes paid either by employees or the company on goods and services purchased locally. Looking at just sales taxes returns, the $400,000 would come back to the City within seven years. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None Item 10d ORDINANCE NO. 11-98 ORDINANCE AUTHORIZING THE CITY MANAGER TO ACCEPT A BUREAU OF JUSTICE ASSISTANCE (BJA) GRANT IN THE AMOUNT OF $210,761 AND MAKING AN APPROPRIATION IN THE GENERAL FUND FOR THIS GRANT MONEY City Manager requested that this Ordinance be amended to reflect that the appropriation be in Special Funds and not General Fund. Moved by Councilor Martin that Ordinance be amended to reflect Special Fund in place of General Fund in the caption and in Section 2 of the Ordinance. Motion seconded by Councilor Hawkins and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None Moved by Councilor Martin that Ordinance No. 11-98 be passed as amended. Motion seconded by Councilor Thompson and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None Council recessed at 10:30 a.m. and reconvened at 10:44 a.m. 106 Item 10e ORDINANCE NO. 12-98 A ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, APPROVING RETAIL BASE RATE REDUCTIONS FOR TEXAS UTILITIES ELECTRIC COMPANY; PROVIDING AN EFFECTIVE DATE THEREFORE; AUTHORIZING INTERVENTION IN PUC DOCKET NO. 18490; APPROVING A MOST FAVORED NATION PROVISION; PROVIDING AN EFFECTIVE DATE; AND 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. 12-98 be passed. Motion seconded by Councilor Thompson. Mr. Ron Bullock, TU Electric representative, informed that they are asking for a rate decrease. There are several issues and we have worked very hard to get those concerns embodied in this ordinance. The rate reduction went into effect January 1, 1998, with a 4% decrease in residential rates in 1998 and an additional 1.4% in 1999; a total of 5.4% decrease in residential rates. General service rates will see a 2% decrease effective January of 1998 and another 2% in January 1999. All other customers, including the City and other large customers, will get a 1% decrease. City Attorney stated that this ordinance will result in a $263 million rate reduction over two years, 1988 and 1989 proves that rate reduction. It authorizes us to participate before PUC for two reasons, to determine whether or not additional rate reduction is appropriate and to oppose any regulatory practices or accounting principles that worked in detriment of rate payers. We want to be a watch guard in that regard. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None Item 11 a RESOLUTION NO. 18-98 RESOLUTION TO APPROVE ENGINEERING CONTRACT WITH EMD, INC. FOR LAKE KICKAPOO BOOSTER STATION MOTOR CONTROL CENTERS PROJECT Moved by Councilor Johnston that Resolution No. 18-98 be passed. Motion seconded by Councilor Thompson. Councilor Shine asked Mr. Bonnett to explain the design of this project and asked why electricians were involved. Is this a construction job or is it just a design job which will be put out to public bid? Mr. Bonnett replied that it would be put out to bid. Councilor Shine questioned the criteria of charges which include electricians and electrician helpers as though part of the job is construction that they will do in-house. Mr. Bonnett stated that some of the , equipment which will be installed will be designed and constructed by EMD. Councilor Shine commented that there are other engineering companies here that can do the same thing. Mr. Bonnett stated that he was not confident that would give a cost effective solution, but we can do that if Council wishes, however, I would not recommend it. It is more cost effective to go this way because of the specialty design. We are installing the equipment on existing equipment, and I am not confident that expertise resides unless you have an electrical engineer on staff. Councilor Shine said that is becoming more possible locally and there at are at least two companies that do have electrical engineers on staff. Mr. Bonnett said that if Council wishes us to do that we can consider it and bring it back to you. Councilor Shine said that there are companies that should be allowed to do the design. My concern is if they choose to become electrical contractors that gets into a business. Mr. Bonnett said that he 107 Item 11 a cont'd. understood his concern. Because we are adapting this equipment to existing motors, it has to be done very carefully and because of that it takes us into what you described as a gray area. We would like to keep it clean and precise but our experience is that we do not get a cost effective solution, and also we have found that some of the folks who install it become very scarce when there is a problem. Councilor Shine asked if the City engineering staff did not include electrical ability. Mr. Bonnett said that was correct. Councilor Daniel asked if this could be divided into two parts, first the engineering design and then let the construction and installation, like the slip liners in the rehab project. That was also a specialty item. Mr. Bonnett said that was a little different because we are not adapting the equipment to an existing equipment. If we were going to tear out all the motors and install a brand new facility I would do what Councilor Shine suggested. However, we are adapting this to an existing facility and we have to design a starter system which works with an existing motor. Unless if you want to rip that thing out and start over again, and I would not recommend that because it is cost prohibitive. What has to be designed and installed is a specific unique starter and it has to work on that system, and that almost approaches a design bid (turn key) operation and that is a gray area. We only do this when we have to adapt something to an existing facility. Councilor Shine commented that when you have a design bid you eliminate the quality control person because the same person that installs it is the quality control person for the system. Mr. Bonnett concurred and added that you need to be very careful with whom you do business. Councilor Shine stated that we do not have the ability to do that type of business like an independent company. Mr. Bonnett commented that basically, we need to make sure it works when we need it. Councilor Shine felt that we should go out for design or hire an engineering firm to put the design out for public bid. This does not seem a good way to do business, there is no question as to the legality, it is just that I question it. Mr. Bonnett restated that the basic work will be put out to competitive bid. Councilor Shine was concerned that this company was going to design a distribution panel and put a starter in it before it is put out for bids. They are doing construction by adding to a motor control that is existing and use their electrical department to put this in at cost plus and with that in place you are going to design and put the rest out to bid. Councilor Shine was under the impression that EMD Inc. was going to do electrical work. Mr. Bonnett stated that he had misunderstood his original question. What they are doing is designing the equipment which we will put out for competitive bid to be installed here. It is engineering, design, and drafting, which is required for the City to solicit competitive bidding. They are not going to put in wiring or do the installation. Councilor Johnston clarified that the end product of their work is going to be a set of plans and specifications which will go out for bid; nothing physically will be installed under this contract. Mr. Bonnett concurred. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None Item 12b Moved by Councilor Johnston that bid be awarded to Hodges Truck Center in the amount of$44,722 for the purchase of one 35,000 GVW cab and chassis. Motion seconded by Councilor Martin and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None 108 Item 13a Councilor Shine enjoyed the joint meeting with the School Board and felt that if we take our time with the communications and continue with out goal of being citizen friendly we will make it somewhere. Councilor Martin felt the joint meeting was productive and some good things can come from that. He mentioned the following two suggestions on tax abatement requests: 1) Before we consider the abatement, require industries that request tax abatement to provide a financial statement with a profit and loss statement for the purpose of assessing their ability to continue in the business; and 2) Nullify the tax abatement agreement if the stated number of employees are not added within specified time. Councilor Martin suggested that the 800 communication trunk line study be expanded to include the entire County, Burkburnett, Iowa Park and Electra. Councilor Thompson stated that the School Board meeting was very profitable and hoped for future meetings to enable both entities to use the citizens' money more wisely. He hoped that at some future time they could come together to look at common problems, maybe this summer or fall. It would allow us both to work closer and get to know each other and speak a common language. He suggested that City Manager and School Superintendent be encouraged to continue dialoging and trying to work out problems before they come to this body or the School Board. He felt this was a positive first step. Councilor Hawkins mentioned Mrs. O'Hare's concern about a pothole on the southbound lane of Kemp under the Kell Blvd. Bridge and the hazardous hump on Seymour Highway by Taste of China. Councilor Hawkins asked if it was possible to provide a map of a decent size for citizens to see the proposed zoning for those newly annexed areas. Mr. Clark stated that they have one in his office, and maps were also provided to the property owners in the mail-out. Councilor Hawkins agreed with Councilor Martin to include the entire County on the 800 Trunk line and hoped that they would have a joint meeting with the Commissioners Court to discuss some of the items as they have with the School Board. Councilor Johnston echoed Mayor Yeager's comments on the joint meeting with the School Board and felt it was very positive and very beneficial. Also, we need to pursue a joint meeting with the County. Mayor commended Mr. Jim King and his staff for the professional presentation of the hazardous structures. It went very smoothly and they evidently spent a lot of time trying to work with the people on these lists and did it in a very professional and citizen friendly manner. Mayor mentioned the Friday Fax and gave a positive side of the Planning Department in the assistance which they have provided for citizens in our community. Item 13b City Manager informed that regarding the Brown Route on the city transit system, it would cost $32,436 to make it a full time route. The federal share would pay 50% of that, the State would pay 25% ($8109), and the City's share would be 25% ($8109). We feel favorable about making that a full-time route and will be bringing it back to Council with that recommendation. Councilor Hawkins asked that Staff look at the K-Mart/Loop 11 bus route. City Manager stated that we can enlarge a route but if we amend a route we would have to go through the amendment process. We will take a look at it. Item 13c The City Council went into Executive Session at 11:25 a.m. as authorized by Section 551.074 of the Government Code, and reconvened at 11:30 a.m. 109 Item 13d Moved by Councilor Thompson to appoint Mr. Beau Stahler to replace Mr. John Gavin, and Dr. Louis Rodriguez to replace Mr. Stan West on the 4A Sales Tax Corporation Board. 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 13e Moved by Councilor Thompson to appoint Mr. Leon Mallonee to replace Mr. Paul Hughes on the 4B Sales Tax Corporation Board. Motion seconded by Councilor Hawkins and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Daniel, Martin, and Hawkins Nays: None The City Council adjourned at 11:31 a.m. PASSED AND APPROVED this day of.,.. � ,k 1 1998 HRYN A�YEAC� R MAY R ATTEST: LLLL L Lydia Torres City Clerk i