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Min 09/01/1998 267 Wichita Falls, Texas Memorial Auditorium Building September 1, 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 Altman Johnny Burns - Bud Beaty James Berzina - City Manager Greg Humbach - City Attorney Lydia Torres - City Clerk Mayor Yeager called the meeting to order. Invocation was given by Reverend Charles Paulson, Our Redeemer Lutheran Church. Mayor recognized the attendance of Brigadier General Scott C. Bergren, Commander of Sheppard Air Force Base. Item 3 Randy Montgomery, 4804 Mt. Everest, spoke on behalf of Dwayne Jackson who is the owner of the Wichita Theatre. Mr. Montgomery expressed concerns regarding the for-profit status of the Wichita Theatre and the non-profit outside agencies which were funded by the City. He wanted to clarify if a business had to be non-profit to be considered for funding. He felt that minds were already made up when Mr. Jackson made his presentation to the committee. He requested that this request be reconsidered and that all or part of his request be approved. Lanny Walker, 4635 Sierra Madre, referred to the drainage ditch behind his home and the flooding problems at that location. He felt this had been caused by poor decision making by the previous Council, and that the City has a physical, mental and economical responsibility for the results of those decisions. Even though the decisions were not in this Council's tenure, it still affects him and he has only asked that the ditch be fixed. Mr. Walker felt if he was being pushed into a corner and if he had to defend himself by legal recourse he would do it. Item 4a Battalion Chief Bud Davis, Fire Department, was honored as employee of the Month for the month of August. Mayor presented him with a plaque, theater passes, and dinner for two. Chief James informed that Battalion Chief Davis would be retiring this year and it was going to be a great loss to the Department as well as to the City. Item 4b Mr. Arnold Oliver, Clean Country Commission Chair, informed that these awards are presented by the Clean Country Commission and are an annual event. Fifteen awards are 268 Item 4b cont'd. presented to homes and ten to businesses. The 1998 Clean Country Registry Awards were presented to the following. District 1 Mr. & Mrs. Robert Schleider, Jr., 2001 Wenonah Mr. & Mrs. Earl Rooks III, 4227 Canyon Trails Mr. & Mrs. Charles Heydrick, 6391 Kovarik Road Oasis Texaco, 3701 Kell Rose Street Clinic, 1808 Rose District 2 Mr. & Mrs. William Norris, 1906 Deer Park Mr. & Mrs. Thomas Moses, 317 Front Mr. & Mrs. Arthur L. Brown, #15 Chestnut Graphics II, 1100 Travis River Oaks Care Center, 100 Bailey District 3 Mr. & Mrs. Robert Osborne, 3100 Harrison Mrs. & Mrs. Marvin Brown, 2421 Fain Mr. & Mrs. Kim Henry, 5032 Lindale Vitek Properties-American Resin Corporation, 6250 Southwest Parkway Hospice of Wichita Falls, 4909 Johnson Road District 4 Mr.. & Mrs. John Hancock, 2724 Red Oak Mr. & Mrs. Marty McBride, 1701 Cliffside Mr. & Mrs. Steven Szysmanski, #8 Jeffus Texoma Credit Union, 4019 Southwest Parkway The Plex, 4131 Southwest Parkway District 5 Mr. & Mrs. Ronnie Perez, 5512 Greentree Mr. & Mrs. Jeffrey Sponseller, 5412 Castle =.. Mr. & Mrs. W.J. Gray, 1134 Sunset Lane Carl's Junior Restaurant, 2053 Loop 11 Sheppard Air Force Base Mayor expressed appreciation to all who participated in these awards. A reception was held immediately following presentation of these awards for the recipients. Council recessed at 9:15 a.m. and reconvened at 9:50 a.m. Item 5 The Minutes were approved with corrections. City Manager gave a briefing on the items listed under the Consent Agenda. Items 6a-8c Moved by Councilor Johnston that the consent agenda be approved. Motion seconded by Councilor Beaty and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty. Nays: None Item 6a RESOLUTION NO. 126-98 269 Item 6a cont'd. RESOLUTION TO ACCEPT THE ROSEMONT & LAKEVIEW CEMETERIES ROADWAY RESURFACING PROJECT AND AUTHORIZE FINAL PAYMENT TO BARNETT PAVING & SEALING; DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Item 6b RESOLUTION NO. 127-98 AWARD OF BIDS FOR THE DEMOLITION OF VARIOUS HAZARDOUS AND SUBSTANDARD STRUCTURES IN THE AMOUNT OF $19,641.00; DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Item 6c RESOLUTION NO. 128-98 RESOLUTION DECLARING 50 VACANT LOTS AS EXCESS REAL PROPERTY AND DIRECTING THE LAND TO BE SOLD BY SEALED BIDS; DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Item 6d RESOLUTION NO. 129-98 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS; REQUESTING THE TEXAS MUNICIPAL LEAGUE TO SPONSOR AND/OR SUPPORT LEGISLATION IN THE 76T" TEXAS LEGISLATURE THAT WOULD AUTHORIZE CITIES TO ANNEX TERRITORY INTO ADJACENT COUNTIES IN SPITE OF THE 2% LOCAL SALES TAX RESTRICTION IMPOSED BY ARTICLE 5190.6(A)(d) VERNON'S ANNOTATED CIVIL STATUTES; AUTHORIZING THE SUBMISSION OF THIS RESOLUTION TO THE TEXAS MUNICIPAL LEAGUE AT THE ANNUAL CONFERENCE IN OCTOBER OF 1998; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Item 6e RESOLUTION NO. 130-98 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, REQUESTING THAT THE TEXAS MUNICIPAL LEAGUE SPONSOR AND/OR SUPPORT LEGISLATION IN THE 76T" TEXAS LEGISLATURE THAT WOULD AUTHORIZE THE CONSOLIDATION OF CITY AND COUNTY GOVERNMENT AND FUNCTIONS; AUTHORIZING THE SUBMISSION OF THIS RESOLUTION TO THE TEXAS MUNICIPAL LEAGUE AT THE ANNUAL CONFERENCE IN OCTOBER OF 1998; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Item 6f RESOLUTION NO. 131-98 RESOLUTION TO ACCEPT THE LEACHATE STORAGE IMPOUNDMENT PROJECT AT THE WICHITA FALLS LANDFILL AND AUTHORIZE FINAL PAYMENT TO L D KEMP EXCAVATING, INC.; DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. 270 Item 7a Bid was awarded for the purchase of a front end loader/backhoe to Clarklift of Wichita Falls, in the Amount of$51,789.00. Item 7b Bid was awarded for the City's estimated annual requirement of lighting and associated products to Nunn Electric Supply Company in the amount of $2,055.20, to CED United in the amount of$46,398.16, and to Cummins Supply Company in the amount of$38,486.26. Item 8a Minutes of the meeting of the following boards and commissions were received: a. Planning & Zoning Commission, July 8, 1998. b. Board of Electrical Examiners, August 13, 1998. c. Commission On Human Needs, August 17, 1998. Item 9a A public hearing was held on the 1998-99 Preliminary Budget and the City's intent to increase property tax revenue. Mayor declared the public hearing open. City Manager provided information on previous legal requirements and informed that State law had changed this year. The new law states that if you gain even a nickel you have to publish your intent on the taxes. You are not raising the tax rate but it does not preclude you the ability to decrease it. Mayor reemphasized that we are not raising taxes. The preliminary budget is intended to maintain the present tax rate. Council committed not to go above that tax rate. Mayor called for additional comments. There being no one else who wished to be heard, Mayor declared the public hearing closed. Item 10a A proposed ordinance was presented waiving Section 4200(I), City of Wichita Falls Zoning Ordinance (Ord. No. 38-85) governing the placement of carports in the front yard, for a carport at 4619 Summit Drive. Moved by Councilor Shine that proposed ordinance be passed. Motion seconded by Councilor Beaty. Mr. David Clark informed that there is rear access, therefore, Planning & Zoning Commission could not order a waiver. Virgil Howerton, 4916 Summit, explained that if a carport is put in the rear it would be very inconvenient for him and for his wife who is ill and cannot walk long distances. He mentioned that other reasons were that they are senior citizens and need to be out of the elements as well as for safety purposes. _ Mr. Howerton was asked if his garage was functional to which he replied that it was full and he uses it as a work room. He was asked if he had considered building a structure in the back of the house to use as a work area to which he replied that it was possible. Motion failed by the following vote. Ayes: None Nays: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty 271 Item 10b ORDINANCE NO. 66-98 ORDINANCE REZONING 48.54 ACRES OUT OF SCOTT SURVEY NO. 7, A- 295 AND BLOCK 1, KEMP AND NEWBY SUBDIVISION OF THE CHEROKEE COUNTY SCHOOL LANDS, FROM SINGLE FAMILY-2 TO CONDITIONED GENERAL COMMERCIAL ZONING; DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Burns that Ordinance No. 66-98 be passed. Motion seconded by Councilor Shine. Jim Hyman, 1805 Club View, representing the Family YMCA expressed a concern of how the traffic flow is going to be addressed on Bartley Drive. Martin Litteken, Architect, informed that they would take this concern into consideration when preparing the preliminary plat. There will be another entrance, other than Bartley Drive, out to Rathgeber Road. The issue would be in working with the City to widen Bartley out to Southwest Parkway. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty Nays: None. Item 10c ORDINANCE NO. 67-98 ORDINANCE REZONING 5001 & 5005 LAKE PARK DRIVE, 17.4 ACRES OUT OF BLOCKS 1 & 8, SCOTT SURVEY NO. 7, A-295, FROM SINGLE FAMILY-2 TO GENERAL COMMERCIAL; 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. 67-98 be passed. Motion seconded by Councilor Burns. Hank Anderson, owner of this tract, informed that he was originally approached by Mr. Litteken and Peyton Carnes from Stone Lake Group regarding this property. They told me they were going to submit an application to rezone their property commercially and I did not want to be an island within a general area where I had commercial all around me and I was the only residential. A concern was mentioned earlier of whether or not any of this was going to create a bottleneck for Bartley Drive. The Stone Lake Group and I discussed the possibility of a road to come to the back or the middle of this track which would allow egress and ingress from south Lake Park Drive, and hopefully eliminate some of the bottleneck on Bartley Drive. That is one of the things we will be addressing in the future, if Council approve this. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty Nays: None. 272 Item 10d ORDINANCE NO. 68-98 ORDINANCE REZONING 24 ACRES OUT OF BLOCK 8, STEHLIK AND BABER SUBDIVISION, FROM SINGLE FAMILY-1 TO GENERAL COMMERCIAL; DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Burns that Ordinance No. 68-98 be passed. Motion seconded by Councilor Johnston and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty Nays: None. Item 10e ORDINANCE NO. 69-98 ORDINANCE REZONING 23.89 ACRES OUT OF SCOTT SURVEY NO. 7, A- 295, AND SCOTT SURVEY NO. 6, A-301 FROM SINGLE FAMILY-2 TO GENERAL COMMERCIAL; 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. 69-98 be passed. Motion seconded by Councilor Beaty and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty Nays: None Item 10f ORDINANCE NO. 70-98 ORDINANCE REZONING 3004 SHERMAN ROAD FROM SINGLE FAMILY-2 TO CONDITIONED GENERAL COMMERCIAL; 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. 70-98 be passed. Motion seconded by Councilor Thompson and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty Nays: None Item 10 ORDINANCE NO. 71-98 ORDINANCE REZONING A PORTION OF 2125, 2127, 2129 & 2131 AVENUE K, DESCRIBED AS LOTS 1, 2, 3, 4 & THE EAST '/2 OF LOT 5, BLOCK B, KEMP, KELL AND JOLINE ADDITION, FROM LIMITED COMMERCIAL TO CONDITIONED GENERAL COMMERCIAL ZONING; DETERMINING THAT 273 Item 10g cont'd. THE MEETING AT WHICH THIS ORDINANCE WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Thompson that Ordinance No. 71-98 be passed. Motion seconded by Councilor Shine and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty Nays: None Item 10h ORDINANCE NO. 72-98 ORDINANCE AMENDING ORDINANCE 63-84 INCREASING THE OVERNIGHT USER FEE AT THE RIVER BEND RV PARK FROM $7 TO $10; 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. 72-98 be passed. Motion seconded by Councilor Beaty. There was discussion on the revenue from these fees and the possibility of using this fee revenue to beautify that area. City Manager informed that this was not segmented off where it has its own personnel expenditure. That is why we are hesitant to say exactly what it costs. We decided years ago to absorb those costs and let this fund pool grow. We can come back to Council with a beautification step plan and inform you of what needs to be done to the Park or if it is fine the way it is. We decided it was a part of the Parks function and we tried to keep an eye on whether we were sinking or swimming on this thing. Upper most was to keep a reserve fund back for leaner days when there are no funds for beautification. We still recommend you operate it this way so that periodically you can pull from it to do something significant. A Council concern was that beautification had not been kept up with some of the areas and it is difficult to increase the fees until that step has been taken. Some Council members were in favor of the increased rate but would like to see some of the money used to beautify that area with low maintenance and still have extra funds generated year to year to use. It was suggested that Mr. Murphy come back with a plan to appropriate funds for beautification. Council wanted to see improvements with the rate increase. Councilor Thompson suggested raising the rate above $10 to fund expanding the trail on the left side of the river to MPEC. He suggested setting the fee at $15 provided a plan is submitted. Mayor said since there are no sewer hookups, $15 would be too much. City Manager commented that we can go to $10 and if that was not ambitious enough then we could bring it back to Council to increase the fee to $15. Councilor Shine commented that the parks need to be considered as true assets just like the medians, and they should also be maintained. He felt Mr. Murphy needed to provide a plan. Councilor Shine moved that this be tabled until Mr. Murphy can provide us a plan. Motion seconded by councilor Beaty and failed by the following vote. Ayes: Councilors Shine, Thompson, and Beaty. Nays: Mayor Yeager, Councilors Johnston, Altman, and Burns 274 Item 10h cont'd. Mayor directed that if this proposed ordinance passes Mr. Murphy is to provide some plans for additional improvement at the RV Park, and at that time Council can consider increasing the fee more than $10. The original motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Thompson, Altman, Burns, and Beaty Nays: Shine Item 10i ORDINANCE NO. 73-98 ORDINANCE MAKING AN APPROPRIATION OF $1,450 TO THE SPECIAL REVENUE FUND FOR ADDITIONAL GRANT REVENUE RECEIVED FROM THE TEXAS DEPARTMENT OF HEALTH AND AUTHORIZING THE CITY MANAGER TO EXECUTE CONTRACTS ACCEPTING SAME. Moved by Councilor Johnston that Ordinance No. 73-98 be passed. Councilor Altman stepped out of the Council Chambers. Motion seconded by Councilor Beaty and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Burns, and Beaty. Nays: None Item 10i ORDINANCE NO. 74-98 ORDINANCE WAIVING SEC. 22-4 OF THE CODE OF ORDINANCES TO PERMIT THE SALE AND CONSUMPTION OF WINE AND BEER DURING FALLS FEST IN LUCY PARK SEPTEMBER 25-26, 1998. DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Burns that Ordinance No. 74-98 be passed. Motion seconded by Councilor Beaty and carried by the following vote. Ayes: Mayor Yeager, Councilors Shine, Thompson, Burns, and Beaty. Nays: Councilor Johnston Councilor Altman returned to Council Chambers. Item 11 a ,w A proposed resolution was presented providing for the naming of City-owned facilities. Moved by Councilor Thompson that proposed resolution be passed. Motion seconded by Councilor Shine. Council had some concerns with the wording, and duplication within the criteria. 275 Item 11 a cont'd. Moved by Councilor Altman that proposed resolution be tabled, and suggested that a Council sub-committee work on some of the wording. Motion seconded by Councilor Shine and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty Nays: None Item 11 b RESOLUTION NO. 132-98 RESOLUTION TO AWARD BID AND CONTRACT FOR LAKE KICKAPOO BOOSTER PUMP STATIONS MCC REPLACEMENT PROJECT; DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW Moved by Councilor Altman that Resolution No. 132-98 be passed. Motion seconded by Councilor Johnston and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty Nays: None Item 11 c RESOLUTION NO. 133-98 RESOLUTION TO AWARD BID AND CONTRACT FOR ALLRED PRISON (TDCJ) HIGH SECURITY FACILITY ADDITION SEWER EXTENSION; DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW Moved by Councilor Thompson that Resolution No. 133-98 be passed. Motion seconded by Councilor Beaty. City Manager informed citizens that this was another 4A project which will bring approximately 235 jobs. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty Nays: None Item 11 d RESOLUTION NO. 134-98 RESOLUTION AMENDING THE OPERATIONS AGREEMENT WITH THE RIVER BEND NATURE WORKS BOARD INCREASING THE BOARD MEMBERSHIP FROM 11 TO 15 MEMBERS; DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW Moved by Councilor Altman that Resolution No. 134-98 be passed. Motion seconded by Councilor Beaty. 276 Item 11 d cont'd. Mr. Ron Glenn, River Bend Nature Works Representative explained that the purpose for increasing the board membership is to expand their workload. We are an operating board and we work through committees so we need additional members with expertise in various fields that we might improve the quality of the operation of River Bend Nature Works and expand its programming activities. City Manager explained why the members were appointed by the City Manager and not the Council. It is something that we gravitated to when we started this project and I felt it was important to have staff on there, and I felt it was best that they be appointed by the City Manager. The Junior League was an entity that was quite active, and in order to have a balanced equation in terms of people who would be on the scene and doing the work, it seemed better to move in that direction and at that time Council agreed. We had very close administrative contact with this operation, and the sense at that time was that I pick members that would devote the time that it took. The thought was that this is the way to keep the momentum going. Another rationale was to maintain the volunteerism and oversight. Motion carried by the following vote. Ayers: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty Nays: None Item 11e A proposed resolution was presented naming the circle on Martin Blvd. Mildred Wilkerson Staley Circle. Moved by Councilor Johnston that proposed resolution be passed. Motion seconded by Councilor Altman. Mr. Jack Murphy requested that this be tabled until Mr. Joe Staley could be present. Moved by Councilor Johnston to table this item. Motion seconded by Councilor Beaty and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty Nays: None Item 11f RESOLUTION NO.135-98 RESOLUTION DIRECTING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CITY OF WICHITA FALLS, TEXAS, WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1998; DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW Moved by Councilor Thompson that Resolution No. 135-98 be passed. Motion seconded by Councilor Beaty and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty Nays: None Item 11 q RESOLUTION NO. 136-98 277 Item 11 g cont'd. RESOLUTION APPROVING THE ASSIGNMENT OF THE NON-ANNEXATION CONTRACT WITH WICHITA FALLS ENERGY COMPANY, LTD. TO THE SOUTHERN COMPANY; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW Moved by Councilor Johnson that Resolution No. 136-98 be passed. Motion seconded by Councilor Thompson. City Attorney provided Council with a revised amendment to this resolution. He explained that Southern Energy, Inc. is a wholly owned subsidiary of the Southern Company and they intend to establish another wholly owned subsidiary, yet to be formed, that will actually do the purchasing. In order to accomplish that intent, the proposed resolution authorizes the assignment to Southern Energy, Inc. or a wholly owned subsidiary thereof. Also, this gives the legal authority that their general counsel will feel comfortable with in order for the acquisition to go forward. Henderson Cosmahan, Southern Company Representative, stated that they are in the process of acquiring those assets owned by Wichita Falls Energy and as part of the acquisition process we are asking that Council grant the assignment of the non-annexation agreement as we step in and continue operations. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty Nays: None City Council recessed at 11:20 a.m. and reconvened at 11:50 a.m. Item 12a Moved by Councilor Johnston that the following proposals for City's insurance program be awarded. Provider Coverage Premium Williams-Dwyer Excess Workers' Compensation $20,449 Williams-Dwyer Boiler and Machinery $ 4,618 Williams-Dwyer Building and Contents $25,000 Extra expense $ 1,001 Williams-Dwyer Electronic Equipment Included as sublimit under property coverages Sedgewick of Texas, Inc. Airport Liability $ 2,816 Total Premium Costs: $53,884 Motion seconded by Councilor Beaty. Mrs. Jan Stricklin reported that this is $17,000 less in premium cost than in last years' proposals and approximately $12,000 of that will be general fund. Councilor Altman commented that the $12,000 might be something that we could look at to use in future years. Regarding deductibles, next year when proposals are sent he would like to see what difference a $100,000 deductible would make so that we can consider putting aside a little each year, looking toward increasing the deductible or setting up a fund. Motion carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty Nays: None 278 Item 13a Presentation of the 1998/1999 Water and Sewer Rate Study. Mr. George Bonnett commented that every four to five years we go through a rate analysis to ensure that we generate sufficient funds to meet the needs of our water and sewer utility. It is an involved process and uses the last audited year. Mr. Searcy Willis of Willis, Graves &Associates will present the 1998/1999 Water and Sewer Rate Study. Mr. Searcy Willis informed that there are seven raw water customers and eleven treated water customers under wholesale rates. Their rates are computed by what is known as the Memorandum of Agreement of 1979. We do not have a lot of flexibility of how we do it, it is a matter of bringing the numbers forward and updating the data. This year there is a decrease in wholesale rates and the reason is that the utility rates for the wholesale customers are based on utility basis, where one of the major components of the cost to bank service is the return on investment. Two things have happened in the past four years, we have not added much plant so each year as the plant depreciates we add more depreciation, the net value has gone down. In prior years we were adding more plant than the decrease depreciation so net value went down. Secondly, the return on investment is determined by your average cost of debt and over the last several years you have refinanced a lot of your debt at a lower interest rate. Therefore, that has gone down too. As would be expected in the study, the wholesale rates have gone down for all customers except Iowa Park. Their rates went up because they use the City for peak water supply. Once the wholesale rates are determined, those revenues blend in with the consideration of retail rates. The wholesale rates are based on audited data and the retail rates are based on budgeted data. The goals of setting the retail rates are to keep the utility fund self sufficient between water and sewer. Within water and sewer for each fund the rates that are charged to customers are proportionate to the demands they place on the system so everyone pays their own fair share, and also, at some stage to promote conservation. The final test is to provide coverage for your debt service so that as you issue new debt you have money there that will allow you to issue that will generate the 1.1 or 1.2 coverage, whatever happens to be the type of debt you are using. On the cash basis, you still have operations of maintenance, the capital expenditures, and significant general fund transfers to pay for the services that the utilities gets from general fund. If general fund were not there they would have to have a controller and a lot of things that are not specifically budgeted. The last component is debt service coverage and this is comparable to rate of return or return on investment and depreciation. This is significant when you are issuing new debt because this is one thing the bond people look at when giving a bond rating. He went over the components of the study, followed by discussion of the recommended rates. Councilor Altman wanted to know how to explain these rates to a citizen in terms that anyone could understand. Mr. Willis explained that the bottom line is that the wholesale customers who purchase water from the City, have to turn around and store it, pipe it out, maintain the systems, administer the system, customer billing, and we are not doing that for them. In addition, they have losses and all that has to be included. Finally, it is a part of the Memorandum of Agreement that the City signed twenty years ago which specifies how you do it. Mr. Bonnett clarified that the wholesale customer is different because we are subject to appeal with that customer and we have to be prepared to defend our rates before TNRCC. That is a set format with some flexibility. That has always been a source of confusion in that ., some think we are making money with wholesale customers, but under TNRCC we cannot make a profit on them, we can only break even. You can only recover your costs but no more. Councilor Altman commented that if we did not sell water to the surrounding communities it could be available to our citizens or used to add additional capital investment in our community. I have perceived that water rates on the wholesale level are calculated based on past investments which have depreciated, so capital investment is the depreciated cost of supplying the water. Whereas, what we are charging our own citizens is for the future capital investment necessary to bring additional capacity on line. It seems to me that there should be some way in calculating our projected cost for the future to have the surrounding communities participate in that projected capital investment to create the capacity at an earlier time than 279 Item 13a cont'd. waiting till we capitalize it and give them a depreciated rate. He asked if that was possible under the regulations and perhaps having to write contracts. Mr. Bonnett replied that you must use the last audited year in order to establish your wholesale rates and I believe that is consistent with the decisions that come out of TNRCC, however, on retail rates you are correct. You look forward to your own rates in order to get your bond coverage and handle our own retail needs. You take the total dollar volume that you need to keep the system afloat, you calculate your wholesale and then you back out that dollar and the remainder is distributed to retail. Mr. Willis added that TNRCC will sometimes allow you to bring your invested capital forward which would accommodate that. Also, in computing your invested capital we have a contract provision where we can adjust the "present value rate base"; it is 70%of original cost plus 30% of current value of that system. And that does give you some margin. The other thing is that the bulk of the water is sold at the current proposed wholesale rate of$0.71 which is close to the bottom level rate on the high end user on a proposed retail rate, which is $0.73. For the big user, both wholesale and retail, the cost is fairly comparable, but for the retail user we do not have any of the cost past the meter to deliver water to them, provide storage, and pay for lost water which is unaccounted for. Councilor Altman rephrased this. When we sell water in bulk to a wholesale customer they still have the additional costs involved in supplying water to individual customers that we have. Secondly, we have to plan ahead for future needs and capacity, therefore, we are accumulating money to pay for projected bond indebtedness that will fund capital improvements to allow us to expand the system to reach needed requirements for the future. But present State regulations prevent us from adding those future projections to wholesale customers; we are only allowed to charge for that which we have already invested. Mr. Willis said that they will not allow you to go into the future to pick up cost for new facilities but they will at times allow you to bring it forward to the current period. The offset to that is for the wholesale customers a lot of this is based on a 50 year life and you get to earn on it; on the retail customer you recover bond cost based on 20 year bonds. It could be that in 20 years they would be paid for and for wholesale customer it would be 30 years. The contract has worked fairly well. Next time we do a rate study the rates will go up again. Councilor Altman asked if the projected increase set forth in his study are the minimum fair, necessary rates needed to fund the operation and capital improvements that would be required in our system over the next couple of years. Mr. Willis replied that he built in an inflation rate. City Manager asked if this rate study was sufficient to go to our treated water customers outside the City to trigger a rate change in those cases as well? Mr. Willis replied that it would not; you have to have audited figures for the wholesale customers. Mr. Bonnett explained that, for example, the year we bring the next Cypress on line and we have the audited statement then we would pull the trigger for the wholesale analysis. That way we can capture the investment and that gets folded into the wholesale customers. Mr. Willis noted that technically under the contract you can increase rates in April, and you can upgrade the wholesale rates every year, however, they have to be under audited data. Mr. Bonnett informed that there were various ways the contracts were drawn up and a Memorandum of Understanding was agreed to, and all wholesale customers have signed up to it. All contracts are in accordance to that Memorandum of Understanding, and he invited Council to read that Memorandum. The contracts have no set term but we do have the ability to adjust the rates after we go through the rate analysis and can meet with the affected customers. Mr. Willis felt that a review of contracts was in order. Mayor asked if we could refuse to sell water to a wholesale customer? Mr. Bonnett did not think we could terminate water service under the terms of the contract. However, the ability exists to alter the terms of the contract recognizing that you have a contract for a finite period. TNRCC would want to visit with you because you are selling the State's water. City Attorney stated that the State has a right to require us to furnish excess capacity to adjacent water providers, and in his opinion, he does not think we can terminate water service. It was noted that rates could be compared between our citizens and other cities that we are selling water to. It was suggested that Mr. Bonnett provide Council a sample comparison at the next Council meeting. 280 City Council recessed at 12:50 p.m. and reconvened at 1:40 p.m. Item 14a Councilor Beaty mentioned the Clean Country Commission and stated that he looks forward to working on that Commission again. Councilor Altman responded to Mr. Lanny Walker's comments with regards to the flooding situation on Sierra Madre. He did not think he stated that the City had a legal obligation but that it may have a social and moral obligation to try to relieve that problem as well as numerous others around the City. Council has a great deal of concern about the drainage and flooding problems that exist around the area and Council has great interest in trying to work out some plans to remedy as many of those as possible. Council is planning a study session to discuss these concerns and possible solutions. Mayor informed that she attended the Sunnyside Neighborhood meeting and they have a lot of concerns that center around trash in people's yards and weeds. Item 14b Mr. George Bonnett informed Council and citizens on the current water situation. There is a slightly upward trend but still under control. The difference is the cooperation of our citizens. He asked citizens to maintain voluntary restrictions. He gave the holiday refuse pick up schedule. City Manager informed Council that group and individual pictures would be taken October 6. Item 14c The City Council went into Executive Session at 2:00 p.m. as authorized by Section 551.074 of the Government Code and Section 551.071 of the Texas Government Code and reconvened at 2:50 p.m. Item 14d(1) Moved by Councilor Thompson that Mr. Bobby Redwine be reappointed to replace Mr. David Seaton as member to the Board of Adjustments with term to expire December 31, 1999 and that Mr. Guy Grogan be appointed to replace Mr. Redwine as Alternate No. 1 with term to expire December 31, 2000. Motion seconded by Councilor Johnston and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty Nays: None Mayor announced that there remained a vacancy in the Alternate No.2 position and invited interested persons to make application for this Board. Item 14d(2) Moved by Councilor Thompson that Mr. J. W. Watkins and Ms. Mary E. Parham be re- appointed to the Wichita Falls Housing Authority with terms to expire July 31, 2000. Motion seconded by Councilor Johnston. Councilor Altman called a point of order and asked if these appointments were made by the Mayor? Mayor noted that they were and concurred with these re-appointments. 281 Items 14d(3-5,7) Mayor suggested that due to the lateness of the hour that board appointments be tabled until the September 15, 1998 Council meeting. Moved by Councilor Altman that the following boards be tabled until the September 15, 1998 Council meeting. Library Advisory Board, Aviation Advisory Board, Water Resources Commission, and Arts Commission. Motion seconded by Councilor Burns and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty Nays: None Item 14d(6) Moved by Councilor Shine that Ms. Barbara Green, Mr. David Holder and Mr. Kenneth Haney be appointed to replace Mr. Lloyd J. Taylor III, Mr. Bob Schwartz, and Mr. Richard Boyd on the Wichita Falls Park Board, with terms to expire December 31, 1998. Motion seconded by Councilor Johnston and carried by the following vote. Ayes: Mayor Yeager, Councilors Johnston, Shine, Thompson, Altman, Burns, and Beaty Nays: None Mr. Robert Parker gave a traffic count t report and informed that they would conduct another traffic count in six months. Item 15 The City Council recessed at 3:15 p.m. for budget discussion. The City Council adjourned at 5:20 p.m. PASSED AND APPROVED this day ofVA 1998. KA RYN A. Y AGER MAYOR ATTEST: 0 AA0 +` Lydia Torres City Clerk I v 'roi3 I yti...; ,. br.,-ram. Addendum No. 1 Utility Rate Study of Water and Sewer Utilities Fiscal Year 1998-1999 to 2002-2003 Attached please find replacement sheets for this study. These corrected sheets have been provided by Searcy Willis of Willis, Graves & Associates. The changes do not affect the calculations of rates or revenues. Please insert these new sheets in your study along with a copy of this addendum. Sincerely, David S. Lehfeldt / Utilities Operations Manager DSL/pa cc: Mayor Yeager City Council Members City Manager George Bonnett Lydia Torres Scott Taylor ' David Lehfeldt Le Templer RECEIVED IN CITY CLERK'S OFFICE Date � Council agenda item 13ay - L Time : September 1 , 1998 Council meeting 6. The rates shown on Table 1 are recommended to be placed in effect as soon as possible, but definitely before the beginning of FY 1998-99 so that a full year of revenues will be collected under the new rates. The computation of these rates is detailed in Section V of this report. The lower portion of Table 1 shows a comparison of monthly bills for various meter sizes at various levels of consumption. The bottom portion of the table is the projected monthly bill over the study period for the average residential customer based on 12 ccf per month for water consumption and 6.9 Ccf per month for sewer consumption. As shown on Table 1, there is a 6.6% change in FY 1998-99 for the average residential water customer, a 7.3% increase for the average residential sewer customer, and an increase of 7% in the combined monthly water and sewer bill. For the following years, projected rates are also shown at the bottom of Table 1. In total, these rates indicate an additional increase of 1% in FY 1999-2000, 9% in FY 2000-01, 6% in FY 2001-02, and 3% in FY 2002-03. These projections are based on actual cost allocations and rate calculations which are shown in this report in order to demonstrate to the City the magnitude of increases that might be expected in the future, given the various projections and assumptions of the study. 7. A major task in this study was the analysis of the wholesale raw and treated water rates. This task was accomplished utilizing the methodology as prescribed in the "rate making principles" set out in the various wholesale water contracts. The documentation for the proposed wholesale rates has been presented to the wholesale customers and the City in a separate report, submitted in April 1998. Generally speaking, the recommended rate for treated water transmitted represent a 10.15% decrease. The rate for treated water only (Iowa Park) represents a 132% increase. The rate for treated water only (SAFB) represents a 4.96% decrease. The rate for raw water only represents a 21.60% decrease. And, the rates for raw water transmitted represent a 22.13% decrease. Willis, Graves&Associates, Inc. Page 3 09/02/98 09:49 AM Table 7(Continued) City of Wichita Falls Water Cost Allocation&Rate Design Test Year 1998-99 Test Fixed Variable Cust Svc. Fixed Variable Cust Svc Particulars Year Ratio Ratio Ratio Amount Amount Amount Subtotal-O&M(from prior page) $8,027,501 $1,441,147 $6,098,829 $487,525 Debt Service,Existing Revenue Bonds 1,852,382 17.95 75.97 6.07 332,551 1.407,332 112,499 Debt Service,Proposed Revenue Bonds 441,334 17.95 75.97 6.07 79,231 335,300 26,803 Additional Coverage on Revenue Bonds 245,152 17.95 75.97 6.07 44,011 186,252 14,889 Reserve Fund Requirement 0 17.95 75.97 6.07 0 0 0 Volume Rev.Reduction-Block Rate` 680,963 0.00 100.00 0.00 0 680,963 0 Less:Other Revenues (417,289) 50.00 50.00 0.00 (208,644) (208,645) 0 Raw Water Sales (103,234) 0.00 100.00 0.00 0 (103,234) 0 Wholesale Treated Water (1,159,222) 50.00 50.00 0.00 (579,611) (579,611) 0 City Water Sales (63,076) 0.00 100.00 0.00 0 (63,076) 0 Total Cost of Service $9,504,512 $1,108,685 $7,754,111 $641,716 Billing Determinants 52,090 7,692,487 33,620 Service Availability Charge" $1 78 Volume Charge" $1 01 Customer Service Charge" $1.60 Minimum Bill(200 ccf) -5/8"Meter $5.40 3/4" 6.65 1" 8.07 1 1/2" 12.51 2" 17.86 2 1/2" 23.73 3" 30.31 4" 48.11 6" 8„ 92.62 10" 162.03 $251.03 This line item represents the reduction in revenues that occurs through the use of declining block rates for commercial customers and is included in the rate design so that revenues at the proposed rates will generate the required level of revenues after applying the declining blocks to the projected rates. Page 24 09/02/98 09:49 AM Table 7a(Continued) City of Wichita Falls Water Cost Allocation&Rate Design Test Year 1999-2000 Test Fixed Variable Cust Svc. Fixed Variable Cust Svc Particulars Year Ratio Ratio Ratio Amount Amount I Amount Subtotal-O&M(from prior page) $8,346,632 $1,494,784 $6,340,661 $511,187 Debt Service,Existing Revenue Bonds 1,850,219 17.91 75.97 6.12 331,352 1,405,551 113,316 Debt Service,Proposed Revenue Bonds 441,334 17.91 75.97 6.12 79,038 335,267 27,029 Additional Coverage on Revenue Bonds 0 17.91 75.97 6.12 0 0 0 Reserve Fund Requirement 0 17.91 75.97 6.12 0 0 0 Volume Rev.Reduction-Block Rate' 680,963 0.00 100.00 0.00 0 680,963 0 Less:Other Revenues (423,409) 50.00 50.00 0.00 (211,705) (211.704) 0 Raw Water Sales (104,927) 0.00 100.00 0.00 0 (104,927) 0 Wholesale Treated Water (1,178,233) 50.00 50.00 0.00 (589,117) (589,116) 0 City Water Sales (63,581) 0.00 100.00 0.00 0 (63,581) 0 Total Cost of Service $9,548,998 $1,104,352 $7,793,114 $651,532 Billing Determinants 52,507 7,663,350 33,888 Service Availability Charge" $1 76 Volume Charge $1 02 Customer Service Charge" $1.61 Minimum Bill(200 ccf) -5/8"Meter $5.41 3/4" 6.64 1" 8.05 1 1/2" 12.44 2" 17.73 2 1/2" 23.54 3" 30.04 4" 47.64 6" 91.65 8" 160.28 10" 248.28 This line item represents the reduction in revenues that occurs through the use of declining block rates for commercial customers and is included in the rate design so that revenues at the proposed rates will generate the required level of revenues after applying the declining blocks to the projected rates. Page 26 09/02/98 09:49 AM Table 7b(Continued) City of Wichita Falls Water Cost Allocation&Rate Design Test Year 2000-2001 Test Fixed Variable Cust Svc. Fixed Variable Cust Svc Particulars Year Ratio Ratio Ratio Amount Amount Amount Subtotal-O&M(from prior page) $8,628,570 $1,541,789 $6,555,315 $531,466 Debt Service,Existing Revenue Bonds 1,852,165 17.87 75.97 6.16 330,953 1,407,130 114,082 Debt Service,Proposed Revenue Bonds 1,725,216 17.87 75.97 6.16 308,269 1,310,684 106,263 Additional Coverage on Revenue Bonds 124,736 17.87 75.97 6.16 22,288 94,765 7,683 Reserve Fund Requirement 0 17.87 75.97 6.16 0 0 0 Volume Rev.Reduction-Block Rate' 680,963 0.00 100.00 0.00 0 680.963 0 Less:Other Revenues (427,504) 50.00 50.00 0.00 (213,752) (213,752) 0 Raw Water Sales (106,648) 0.00 100.00 0.00 0 (106,648) 0 Wholesale Treated Water (1,197,556) 50.00 50.00 0.00 (598,778) (598,778) 0 City Water Sales (64,089) 0.00 100.00 0.00 0 (64,089) 0 Total Cost of Service $11,215,853 $1,390,769 $9,065,590 $759,494 Billing Determinants 52,927 7,723,149 34,158 Service Availability Charge" $2 19 Volume Charge" $1 18 Customer Service Charge" $1 86 Minimum Bill(200 ccf) -5/8"Meter $6.41 3/4" 7.94 1"1 1/2" 9.70 15.17 2"2 1/2" 21.7428.97 3" 4„ 37.07 58.97 8" 113.72 8" 199.13 10" 308.63 This line item represents the reduction in revenues that occurs through the use of declining block rates for commercial customers and is included in the rate design so that revenues at the proposed rates will generate the required level of revenues after applying the declining blocks to the projected rates. Page 28 09/02/98 09:49 AM Table 7c(Continued) City of Wichita Falls Water Cost Allocation&Rate Design Test Year 2001-2002 Test Fixed Variable Cust Svc. Fixed Variable Cust Svc Particulars Year Ratio Ratio Ratio Amount Amount Amount Subtotal-O&M(from prior page) $8,904,602 $1,590,676 $6,761,368 $552,558 Debt Service,Existing Revenue Bonds 1,854,320 17.86 75.93 6.21 331,247 1,408,007 115,066 Debt Service,Proposed Revenue Bonds 1,725,216 17.86 75.93 6.21 308,184 1,309,977 107,055 Additional Coverage on Revenue Bonds 124.331 17.86 75.93 6.21 22,210 94,406 7,715 Reserve Fund Requirement 0 17.86 75.93 6.21 0 0 0 Volume Rev.Reduction-Block Rate` 680,963 0.00 100.00 0.00 0 680,963 0 Less:Other Revenues (431,644) 50.00 50.00 0.00 (215,822) (215,822) 0 Raw Water Sales (108,397) 0.00 100.00 0.00 0 (108,397) 0 Wholesale Treated Water (1,217,196) 50.00 50.00 0.00 (608,598) (608,598) 0 City Water Sales (64,602) 0.00 100.00 0.00 0 (64,602) 0 Total Cost of Service $11,467,592 $1,427,897 $9,257,301 $782,394 Billing Determinants 53,350 7,783,426 34,431 Service Availability Charge" $2.24 Volume Charge" $1 19 Customer Service Charge" $1.90 Minimum Bill(200 ccf) -5/8"Meter $6.52 3/4" 8.09 1"1 1/2" 9.88 15.48 2" 22.20 3" 2 1/ " 29.59 4" 37.88 60.28 6" 116.28 8"10" 203.64 315.64 'This line item represents the reduction in revenues that occurs through the use of declining block rates for commercial customers and is included in the rate design so that revenues at the proposed rates will generate the required level of revenues after applying the declining blocks to the projected rates. Page 30 09/02/98 09:49 AM Table 7d(Continued) City of Wichita Falls Water Cost Allocation&Rate Design Test Year 2002-2003 Test Fixed Variable Cust.Svc. Fixed Variable Cust Svc Particulars Year Ratio Ratio Ratio Amount Amount Amount Subtotal-O&M(from prior page) $9,208,882 $1,641,520 $6,992,868 $574,494 Debt Service,Existing Revenue Bonds 1,852,123 17.95 75.97 6.07 332,505 1,407,135 112,483 Debt Service,Proposed Revenue Bonds 1,725,216 17.95 75.97 6.07 309,721 1,310,719 104,776 Additional Coverage on Revenue Bonds 122,801 17.95 75.97 6.07 22,046 93,297 7,458 Reserve Fund Requirement 0 17.95 75.97 6.07 0 0 0 Volume Rev.Reduction-Block Rate' 680,963 0.00 100.00 0.00 0 680,963 0 Less:Other Revenues (435,830) 50.00 50.00 0.00 (217,915) (217,915) 0 Raw Water Sales (110,175) 0.00 100.00 0.00 0 (110,175) 0 Wholesale Treated Water (1,237,158) 50.00 50.00 0.00 (618,579) (618,579) 0 City Water Sales (65,119) 0.00 100.00 0.00 0 (65,119) 0 Total Cost of Service $11,741,702 $1,469,298 $9,473,193 $799,211 Billing Determinants 53,777 7,844,186 34,706 Service Availability Charge" $2 28 Volume Charge" $1 21 Customer Service Charge" $1 92 Minimum Bill(200 ccf) -5/8"Meter $6.62 1.3/ 8.22 10.04 1 1/2" 15.74 2" 22.58 2 1/2" 30.10 3„ 38.54 4" 61.34 6 118.34 8" 207.26 10" 321.26 'This line item represents the reduction in revenues that occurs through the use of declining block rates for commercial customers and is included in the rate design so that revenues at the proposed rates will generate the required level of revenues after applying the declining blocks to the projected rates. Page 32 Addendum No. 1 Utility Rate Study of Wholesale Water Rates Fiscal Year 1997 Attached please find replacement sheets for this study. These corrected sheets have been provided by Searcy Willis of Willis, Graves & Associates. The changes do not affect the calculations of rates or revenues. Please insert these new sheets in your study along with a copy of this addendum. Sincerely, J . David S. Lehfeldt Utilities Operations Manager DSL/pa cc: Mayor Yeager City Council Members City Manager George Bonnett Lydia Torres Scott Taylor David Lehfeldt Le Templer RECEIVED IN CITY CLERK'S OFFICE Date 'A e By Time 3G' Council Agenda Item 13a September 1 , 1998 Coouncil Meeting SECTION I SUMMARY OF FINDINGS The rates recommended in this study are updates of the rates which were placed in effect by the City approximately four years ago. These recommended rates are based on Fiscal Year(FY) 1993 data and the rate setting principles as set out in the prior studies and the "Memorandum of Agreement," which is a part of most of the wholesale water contracts. In the calculation of each of the rates, there is a decrease in return on investment which is caused by 1) a decline in invested capital due to the depreciation of assets over a four year period with no appreciable additional plant investment and 2) a decline in the rate of return on investment. Table 1 shows a summary of the current and proposed rates, revenues at these rates and the projected change in revenue. The rate for "treated water - transmitted" is lower than the rate from the prior study due primarily to decreased return on investment. The proposed rate is $.7111 per hundred cubic feet (ccf) versus the current rate of$.7914. The rate for "treated water only - sole source," which applies only to Sheppard Air Force Base, is lower than the rate from the prior study. The proposed rate is$.6414 per hundred cubic feet (ccf) versus the current rate of$.6749. The rate for "treated water only - peak supply," which applies the City of Iowa Park, has increased because of a significant decrease in Iowa Park's total usage combined with a peak consumption ratio which is much larger than any other customer. The proposed rate is $1.8406 per hundred cubic feet(ccf) versus the current rate of$.7926. Rates for "raw water - transmitted" and "raw water only" have decreased from the prior study. The proposed rate for"raw water - transmitted" is $.2229 per thousand gallons versus the current rate of$.2862. The proposed rate for"raw water only"is$.2040 per thousand gallons versus the current rate of$.2602. 1 The revenues based on the most recent level of consumption and the current and proposed rates are shown on Table 1. The overall revenue decreases by$101,693. The percentage change for each rate class is shown in the rightmost column. 2 Table 1 City of Wichita Falls Summary of Wholesale Rate Recommendations Based on FY 1997 Audit Billing Revenues Revenues Particulars Current Pro osed Volumes Present Proposed Chan e Treated Water Transmitted(cco $0.7914 $0.7111 1,023,756 $810,200 $727,993 -10.15% Treated Water Only-Sole Source-SAF13(ccf) 0.6749 0.6414 593,226 400,368 380,495 -4.96% Treated Water Only-Peak Supply-Iowa Pk(cco 0.7926 1.8406 27,564 21,847 50,734 132.22% Raw Water Transmitted(1,000 gal.) 0.2862 0.2229 30,723 8,793 6,847 -22.13% Raw Water Only(1,000 gal.) 0.2602 0.2040 472,488 122,941 96,387 -21.60% Total 2,147,756 $1,364,150 $1,262,457 Increase(Decrease) ($101.693) 3 Regular meeting of the Mayor and City Council of the City of Wichita Falls, Texas to be held in the City Council Chambers of the Memorial Auditorium on Tuesday, September 1, 1998 beginning at 8:30 a.m. City Council: Mayor Kay Yeager - Councilors Angus Thompson, Bud Beaty, William Altman, Don Johnston, Johnny Burns and Dan Shine 1 . Call to Order. 2. Invocation: Reverend Charles Paulson Our Redeemer Lutheran Church 3. Comments from the public to members of the City Council on items which are not on the City Council Agenda. (The Regular Agenda will begin upon completion of public comments, or no later than 9:00 a.m. Individuals who prior to this Council meeting signed up to speak, but could not be heard before 9:00 a.m. due to time constraints, may speak at the conclusion of the meeting.) 4. Presentations: a. Employee of The Month: Bud Davis, Battalion Chief Fire Department b. 1998 Clean Country Registry Awards 5. Approval of Minutes CONSENT AGENDA 6. Resolutions: a. Resolution To Accept The Rosemont & Lakeview Cemeteries Roadway Resurfacing Project And Authorize Final Payment To Barnett Paving & Sealing. (City Council Bill #204) 6. Resolutions (cont'd): City Council Agenda Tuesday, September 1, 1998 Page 2 b. Award Of Bids For The Demolition Of Various Hazardous And Substandard Structures In The Amount Of $19,641.00. (City Council Bill #205) c. Resolution Declaring 50 Vacant Lots As Excess Real Property And Directing The Land To Be Sold By Sealed Bids. (City Council Bill #206) d. Resolution Requesting The Texas Municipal League To Sponsor And/Or Support Legislation In The 76th Texas Legislature That Would Authorize Cities To Annex Territory Into Adjacent Counties In Spite Of The 2% Local Sales Tax Restriction Imposed By Article 5190.6(A)(d), V.A.C.S. (City Council Bill #207) e. Resolution Requesting The Texas Municipal League Sponsor And/Or Support Legislation In The 76th Texas Legislature That Would Authorize The Consolidation Of City And County Government Functions. (City Council Bill #208) f. Resolution To Accept The Leachate Storage Impoundment Project At The Wichita Falls Landfill And Authorize Final Payment To L D Kemp Excavating, Inc. (City Council Bill #209) 7. Award of Bids: a. Award Of Bid For The Purchase Of A Front End Loader/Backhoe To Clarklift Of Wichita Falls, In The Amount Of $51,789.00. b. Award Of Bids For The City's Estimated Annual Requirement Of Lighting And Associated Products To Nunn Electric Supply Company In The Amount Of $2,055.20, CED United In The Amount Of $46,398.16, And Cummins Supply Company In The Amount Of $38,486.26. 8. Receive Minutes: a. Planning & Zoning Commission - July 8, 1998 b. Board of Electrical Examiners - August 13, 1998 c. Commission on Human Needs - August 17, 1998 REGULAR AGENDA City Council Agenda Tuesday, September 1, 1998 Page 3 9. Public Hearings: a. Public Hearing On The 1998-99 Preliminary Budget And City's Intent To Increase Property Tax Revenue. 10. Ordinances: a. Ordinance Waiving Section 4200(I) Of The Zoning Ordinance To Allow A Carport At 4619 Summit Drive, Wichita Falls, Texas. (City Council Bill #210) b. An Ordinance Rezoning 48.54 Acres Located South Of Southwest Parkway, From Single Family-2 To Conditioned General Commercial. (City Council Bill #211) c. An Ordinance Rezoning 5001 & 5005 Lake Park Drive, 17.4 Acres Out Of Blocks 1 & 8, Scott Survey No. 7, A-295, From Single Family-2 To General Commercial. (City Council Bill #212) d. An Ordinance Rezoning 24 Acres Out Of Block 8, Stehlik And Baber Subdivision, From Single Family-1 To General Commercial. (City Council Bill #213) e. An Ordinance Rezoning 23.89 Acres Out Of Scott Survey No. 7, A-295, And Scott Survey No. 6, A-301 From Single Family-2 To General Commercial. (City Council Bill #214) f. An Ordinance Rezoning 3004 Sherman Road From Single Family-2 To Conditioned General Commercial. (City Council Bill #215) g. An Ordinance Rezoning A Portion Of 2125, 2127, 2129 & 2131 Avenue K, From Limited Commercial To Conditioned General Commercial Zoning. (City Council Bill #216) h. Ordinance Amending Ordinance 63-84 Increasing The Overnight User Fee At The River Bend RV Park From $7 To $10. (City Council Bill #217) i. Ordinance Making Appropriation To The Special Revenue Fund For Additional Grant Revenue From The Texas Department Of Health And Authorizing The City Manager To Execute Contracts Accepting Same. (City Council Bill #218) City Council Agenda Tuesday, September 1, 1998 Page 4 10. Ordinances (cont'd): j. Ordinance waiving Sec. 22-4 of the Code of Ordinances to permit the sale and consumption of wine and beer during Falls Fest in Lucy Park September 25-26, 1998. (City Council Bill #219) 11 . Resolutions: a. A Resolution Establishing Criteria For The Naming Of City- Owned Facilities. (City Council Bill #220) b. Resolution To Award Bid And Contract For Lake Kickapoo Booster Pump Stations MCC Replacement Project. (City Council Bill #221) c. Resolution To Award Bid And Contract For Allred Prison (TDCJ) High Security Facility Addition Sewer Extension. (City Council Bill #222) d. Resolution Amending The Operations Agreement With The River Bend Nature Works Board Increasing Board Membership From 11 To 15 Members. (City Council Bill #223) e. Resolution Naming The Circle On Martin Blvd. The Mildred Wilkerson Staley Circle. (City Council Bill #224) f. Resolution Directing Publication Of Notice Of Intention To Issue City Of Wichita Falls, Texas, Water And Sewer System Revenue Bonds, Series 1998. (City Council Bill #225) g. Resolution Approving The Assignment Of The Non- Annexation Contract With Wichita Falls Energy Company, Ltd. To The Southern Energy, Inc. (City Council Bill #226) 12. Award of Bids: a. Award of Proposal for the City's Insurance Program. 13. Discussion Items a. Presentation of the 1998/1999 Water and Sewer Rate Study. City Council Agenda Tuesday, September 1, 1998 Page 5 14. Other Council Matters: a. Discussion of items of concern to members of the City Council. b. Staff/Council Discussion. c. Executive Session: (1) Consider Qualifications of possible appointees to the Board of Adjustment and Appeals as authorized by Section 551 .074 of the Texas Government Code. (2) Consider Qualifications of possible appointees to the Board of Directors of the Wichita Falls Housing Authority as authorized by Section 551 .074 of the Texas Government Code. (3) Briefing by City Attorney on status of Pearce et al. vs. City of Wichita Falls as authorized by Section 551.071 of the Texas Government Code d. Appointments to Boards & Commissions (1) Board of Adjustment and Appeals (2) Board of Directors of the Wichita Falls Housing Authority (3) Library Advisory Board (4) Aviation Advisory Board (5) Water Resources Commission (6) Park Board (7) Arts Commission 15. Recess for Budget Discussion. 16. Adjourn. Wheelchair or handicapped accessibility to the meeting is possible by using the handicapped parking spaces, ramp and elevator located off the east parking lot on Sixth Street entrance. Spanish language interpreters, deaf interpreters, Braille copies or any other special needs will be provided to any person requesting a special service with at least 24 hours notice. Please call the City Clerk's Office at 761-7409. CERTIFICATION City Council Agenda Tuesday, September 1, 1998 Page 6 1 certify that the above notice of meeting was posted on the bulletin board at Memorial Auditorium, Wichita Falls, Texas on the day of 19 at o'clock (a.m.)(p.m.) City Clerk