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Min 07/06/1993 322 Wichita Falls, Texas Memorial Auditorium Building July 6, 1993 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. Michael Lam - Mayor Leon Mallonee - Terrance E. Loughry - Councilors Paul Hughes - J. W. Martin - James Berzina - City Manager Gregory Humbach - City Attorney Wilma J. Thomas - City Clerk Angus Thompson - Absent Harold Hawkins - Absent The invocation was given by Tommy Smith, Sunnyside Baptist Church. Item 3a Henry Johnson, Sanitation Department, was honored as Employee of the Month for July. Mayor Lam presented him with a plaque, City of Wichita Falls pin, a check, bus ticket, and tickets to a dinner. Item 4 Moved by Councilor Martin that minutes of the meeting held June 15 , 1993 , be approved. Motion seconded by Councilor Hughes, and carried unanimously. Items 5a-6h Item 6g was moved to the regular agenda. Moved by Councilor Martin that the consent agenda be approved. Motion seconded by Councilor Mallonee, and carried by the following vote. Ayes: Mayor Lam, Councilors Mallonee, Loughry, Hughes, and Martin Nays: None Item 5a RESOLUTION NO. 89-93 RESOLUTION APPROVING THE REFUND OF MONEY PAID ON TAX ACCOUNT # 5900-000-8724 323 Item 6 Minutes of the meetings of the following boards and commissions were received. a. Lake! Wichita Study Committee - June 1, 1993 b. Water Resources Commission - June 4, 1993 C. Commission on Human Needs - June 7, 1993 d. Lake Wichita Study Committee - June 8, 1993 e. Employee Benefits Trust - June 11, 1993 f. Lake! Wichita Study Committee - June 15, 1993 h. Lake! Wichita Study Committee - June 22, 1993 Item 6g Moved by Councilor Hughes that minutes of the meeting of the Civil Service Commission held June 16 , 1993 , be received. Motion seconded by Councilor Martin. Councilor Loughry asked some questions about filing with the Civil Service Commission, and about the City' s EEOC representative. Mr. Berzina explained that the EEOC grant disappeared, and they have decided it is best to continue the function on an in-house basis. They are doubling up with personnel. Mrs. Stricklin emphasized that in her capacity as EEOC representative, she wears a different hat than she does as Civil Service Director. She stated that she is not a member of the Civil Service Commission, but serves as Director, and does secretarial work for the Commission. She has no vote on the Commission. She noted what she would have explained to Mr. Garcia had he come to her. The individual filing a claim has the opportunity to take different procedures. Councilor Martin asked about questions on examinations. Mrs. Stricklin confirmed they are made in-house. Councilor Martin stated he would like to try an outside firm. Mrs. Stricklin explained they have looked into the costs of some of these tests, and they are very costly. The Commission was very comfortable with this test, and it was a good test. Even if we had an outside group to do it, they would still have the right to take the different actions. Councilor Martin felt this would remove any doubt that the test is being tilted in any way. Mr. Berzina stated that outside tests are much harder to defend, and not free of appeals. Councilor Hughes commented on Section 143 of the state law being followed, stating that this will not change the fact that we still have to follow state law. The motion carried unanimously. Item 7a A public hearing was opened on Community Development Block Grant requests for fiscal year 1993-94. No one desired to be heard, and the public hearing was closed. Item 8a ORDINANCE NO. 77-93 ORDINANCE WAIVING SECTION 27-29 OF THE CODE OF ORDINANCES WITH RESPECT TO PLACING A SIDEWALK ALONG THE SOUTH AND WEST LINES OF LOT 1, DIANNE ADDITION Moved by Councilor Hughes that Ordinance No. 77-93 be passed. Motion seconded by Councilor Mallonee, and carried by the following vote. 324 Item 8a, cont 'd. Ayes: Mayor Lam, Councilors Mallonee, Loughry, Hughes, and Martin Nays: None Item 8b A proposed ordinance was presented waiving curb and gutter on the East side of Turtle Creek Road and the North side of Seymour Highway, adjacent to the West and South lines of Lot 1, Dianne Addition. A motion was made by Councilor Martin, and seconded by Councilor Mallonee, for its passage. Councilor Martin asked if this has anything to do with storm water drainage. Mr. Bonnett stated they are recommending denial of the waiver because there is curb and gutter on the other three corners. The motion failed by the following vote. Ayes: Councilor Martin Nays: Mayor Lam, Councilors Mallonee, Loughry, and Hughes Item 8c ORDINANCE NO. 78-93 ORDINANCE APPROPRIATING $1,356,000 FROM THE SANITATION FUND EQUITY TO THE LANDFILL OPERATIONAL ACCOUNT Moved by Councilor Mallonee that Ordinance No. 78-93 be passed. Motion seconded by Councilor Hughes. Mr. Berzina addressed the mandated increased cost of landfills without funding, stating this will deplete our equity. It will be an on-going annual increasing costs. Mr. Bonnett addressed legislation pertaining to this, stating there is a lot of economic regulations on this legislation passed by Congress. Other groups are getting involved, and they want recycling, which is three to four times as expensive as landfills. Options presented were reduction of service to once a week, privatization, recycling, incinerator, composting, etc. There is no option but to comply with Subtitle D. Mayor Lam suggested we may need to get into the landfill business with other County entities, and become a regional landfill. He also noted the advantage today of having an equity fund, and hopes the City Manager will build it back up again. The motion carried by the following vote. Ayes: Mayor Lam, Councilors Mallonee, Loughry, Hughes, and Martin Nays: None Item 8d ORDINANCE NO. 79-93 ORDINANCE WAIVING SECTION 27-29 OF THE CODE OF ORDINANCES WITH RESPECT TO PLACING A SIDEWALK ALONG THE NORTH LINE OF LOT 7, BLOCK 8U, J.L. POWELL ESTATES SUBDIVISION Moved by Councilor Hughes that Ordinance No. 79-93 be passed. 325 Item 8d, cont'd. Motion seconded by Councilor Martin, and carried by the following vote. Ayes: Mayor Lam, Councilors Mallonee, Loughry, Hughes, and Martin Nays: None Item 8e ORDINANCE NO. 80-93 ORDINANCE WAIVING APPENDIX A, SUBDIVISION SECTION 9 (B) (2 ) (a) OF THE CODE OF ORDINANCES WITH RESPECT TO PLACING CURB AND GUTTER ON THE SOUTH SIDE OF LELA LANE, ADJACENT TO THE NORTH LINE OF LOT 7, BLOCK 8U, J.L. POWELL ESTATES SUBDIVISION Moved by Councilor Martin that Ordinance No. 80-93 be passed. Motion seconded by Councilor Hughes, and carried by the following vote. Ayes: Mayor Lam, Councilors Mallonee, Loughry, Hughes, and Martin Nays: None Item 8f ORDINANCE NO. 81-93 ORDINANC'.E APPROPRIATING FUNDS RECEIVED FROM THE FEDERAL GOVERNMENT FOR PLANNING, AND CAPITAL ASSISTANCE FOR THE TRANSIT FUND. Moved by Councilor Mallonee that Ordinance No. 81-93 be passed. Motion seconded by Councilor Hughes. Robert Parker explained that this appropriation is for two buses. The motion carried by the following vote. Ayes: Mayor Lam, Councilors Mallonee, Loughry, Hughes, and Martin Nays: None Item 8g ORDINANCE NO. 82-93 ORDINANCE APPROPRIATING FUNDS RECEIVED FROM THE TEXAS DEPARTMENT OF HIGHWAYS FOR PLANNING, AND CAPITAL ASSISTANCE FOR THE TRANSIT FUND. Moved by Councilor Martin that Ordinance No. 82-93 be passed. Motion :seconded by Councilor Mallonee. Robert Parker and Mr. Berzina both pointed out that we are reimbursed for what we spend. The motion carried by the following vote. 326 Item 8g, cont'd. Ayes: Mayor Lam, Councilors Mallonee, Loughry, Hughes, and Martin Nays: None Item 9a RESOLUTION NO. 90-93 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE OF PROPERTY IN BLOCK 163 , ORIGINAL TOWNSITE, CITY OF WICHITA FALLS, TEXAS, FOR DEVELOPMENT OF HOUSING FOR THE ELDERLY; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Hughes that Resolution No. 90-93 be passed. Motion seconded by Councilor Mallonee. David Clark explained that the old Holt Hotel owner has agreed to donate the property pending approval of the application they are about to submit. Federal regulations will be followed for this program. The application must be in Fort Worth on Thursday. It will house the low and moderate income elderly downtown. It will be a significant contribution to the community in restoration of the hotel. Midtown Manor will be the sponsoring entity. Councilor Loughry questioned the 40-year lease at $1. 00 per year. It was noted that participation in the lease is subject to approval of the application. The motion carried by the following vote. Ayes: Mayor Lam, Councilors Mallonee, Loughry, Hughes, and Martin Nays: None Item 9b RESOLUTION NO. 91-93 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, TO AUTHORIZE THE CITY MANAGER TO EXECUTE A CONTRACT WITH TELEQUESTION, INC. FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT ASSISTANCE; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Hughes that Resolution No. 91-93 be passed. Motion seconded by Councilor Martin. Councilor Loughry stated he would like to see some information from the company regarding their business plan and financial statement. Mayor Lam noted that Nortex has done a full blown investigation, along with the BCI. The City Manager visited their facility in Fort Worth. Scott Wilcox is here today from Telequest if he has any questions. The motion carried by the following vote. Ayes: Mayor Lam, Councilors Mallonee, Hughes, and Martin Nays: Councilor Loughry 327 Item 9c RESOLUTION NO. 92-93 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS GRANTING AN ENCROACHMENT UPON, OVER AND ACROSS CITY OF WICHITA FALLS AQUEDUCT ADJACENT TO LOT 10, BLOCK 1, SIKES ESTATE UNIT 1, SECTION G; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Hughes that Resolution No. 92-93 be passed. Motion seconded by Councilor Martin, and carried by the following vote. Ayes: Mayor Lam, Councilors Mallonee, Loughry, Hughes, and Martin Nays: None Item 9d RESOLUTION NO. 93-93 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS AUTHORIZING THE MAYOR TO EXECUTE A PARTIAL RELEASE OF EASEMENT ON LOT 1-A, BLOCK 72 , FAITH VILLAGE UNIT 2; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Martin that Resolution No. 93-93 be passed. Motion seconded by Councilor Hughes, and carried by the following vote. Ayes: Mayor Lam, Councilors Mallonee, Loughry, Hughes, and Martin Nays: None Item 10a RESOLUTION NO. 94-93 RESOLUTION TO AWARD BID TO O & R UTILITIES FOR ANNUAL SUPPLY OF BRASS TAPPING SADDLES Moved by Councilor Hughes that Resolution No. 94-93 be passed. Motion seconded by Councilor Martin. Steve Kilcrease, Power Seal Pipeline Corporation, stated that even though their bid is not low, they feel it is the most responsive, stating they are a mile and a half from the City complex. Both bidders for the saddles and clamps are located out of the City, and will never be able to do as good a job as they do. Mayor Lam stated that in a bid situation there is an integrity you have to maintain. He stated they sometimes wonder how someone in Dallas can beat a local company by $4,000. Councilor Martin asked if they could justify going to another bidder under state law, and Mr. Humbach replied it would not make any difference if it were $1.00 . The motion carried by the following vote. 328 Item 10a, cont'd. Ayes: Mayor Lam, Councilors Mallonee, Loughry, Hughes, and Martin Nays: None Item 10b RESOLUTION NO. 95-93 RESOLUTION TO AWARD BID FOR ESTIMATED ANNUAL REQUIREMENTS OF READY MIX CONCRETE AND FLOWABLE FILL TO PITTS READY MIX Moved by Councilor Mallonee that Resolution No. 95-93 be passed. Motion seconded by Councilor Hughes. Councilor Loughry asked about quantities. The motion carried by the following vote. Ayes: Mayor Lam, Councilors Mallonee, Loughry, Hughes, and Martin Nays: None Item 10c RESOLUTION NO. 96-93 RESOLUTION TO AWARD BID TO THE ROHAN COMPANY FOR THE ANNUAL SUPPLY OF PIPE REPAIR CLAMPS Moved by Councilor Hughes that Resolution No. 96-93 be passed. Motion seconded by Councilor Mallonee, and carried by the following vote. Ayes: Mayor Lam, Councilors Mallonee, Loughry, Hughes, and Martin Nays: None The City Council recessed at 9: 50 a.m. , and reconvened at 10: 06 a.m. Item lla Discussion was opened on the TU Electric franchise and proposed amendment. Mayor Lam stated no action would be taken until after their report from the City Attorney. Mr. Humbach explained that in early June the City received a proposed amendment to the contract. The City would no longer be reimbursed for its rate case expenses unless they exceeded a certain amount. Ron Bullock, TU Electric, noted a street rental agreement since 1941, and amended one time when it was raised from two to three percent. He stated that Dallas is the only city receiving four percent. They have a public utility commission of their own. They will offer the City of Wichita Falls four percent on the street rental agreement. With this cap they are asking cities to pay their own expenses for rate case intervention up to four million dollars. He is asking the City to amend the street rental agreement from three to four percent, and also to pay intervention costs up to four million dollars. It would be retroactive back to June 1, and would mean about $387,000 329 Item lla, cont'd. payable shortly after the agreement is passed. He stated this is the same offer being made to all cities across the state. Out of 285 cities in Texas, 175 have accepted the agreement. Mayor Lam confirmed this proposal is the same agreement they have with Dallas. Councilor Hughes asked if the offer of three percent is still an option, and Mr. Bullock stated it would be. His proposal is a trade-off for rate case legal fees. Mr. Humbach noted that $10,000 is the maximum paid by the City of Wichita Falls to fight a rate case. Mr. Bullock stated that they have asked all cities to act on this by July 31. If not done so, it would not be retroactive back to June 1. Councilor Martin asked about negotiations. Mr. Humbach stated that Mr. Bullock and one other manager are the only ones saying they have until July 31. Mr. Bullock responded that they have told each and everyone of their cities that July 31 is the deadline for action. Councilor Hughes asked if this money will be retroactive to rate payers, and Mr. Bullock stated it would not, but would be a retroactive payment to the City. He stated this is a cost of doing business. Mr. Berzina asked if this were accepted, would this company be bearing this expense until the next rate case, and Mr. Bullock stated the company will be bearing this expense until there is a new rate case. Mr. Humbach stated no action will be taken today. Item llb A discussion was held on the employee health benefit program. Mr. Berzina explained that the City provides insurance to employees, dependents, and retirees. With these funds the City administers the health and dental insurance program. We are beginning to see significant increases. In the last three or four years we have been paying as a City 1.7 to 1. 9 million dollars a year. We find ourselves in a position after eight months setting on the 1. 8 million figure. They have seen huge increases in medical costs during the last four or five months. We will see a. shortfall in the insurance fund at the end of the year. They normally use left over funds for these programs at the end of the year. There is an Employee Benefits board that administers this program, and has met twice in the last month to look at these funds. There are two ways to do something about it; change the benefits or the amount of money going into the program. They have to find ways to do this. Historically we have stayed above water on this by the City adding funds and changing medical costs to dependents. In the preliminary budget they have added $100 per employee, but that will not be enough this year. Jan Stricklin reported on the claims history and cost comparisons from 1986 to today' s date. Reports were distributed to Council members. From October 1 to May 31 this year they have gone over the 1. 8 million dollar figure. More claims are anticipated this year. Part of this is because of the coding procedures used by the medical field. They cannot code them together. There are also increased referrals from the medical community for diagnostic testing, and referrals to assist them to hold down malpractice claims. She addressed the difference in medical claims filed and paid out, along with prompt payment provider discounts if paid within 9-4 working days. This is an advantage to self-funded and self-administered. Mrs. Stricklin also addressed the current contributions structure for all categories. She also noted that Cobra coverage is paid for ex- employees and their dependents for eighteen months and thirty- six months. Retiree rates were noted. The City currently pays one hundred percent of all its employees, and subsidizes the dependent care. She explained that the time share is the amount of money charged small cities to process their claims. It is not administrative costs. Our largest payout is for dependents, even in the Mental/Nervous category. Mental/Nervous disorders 330 Item llb, cont'd. account for 20-30 percent of total City payouts. The law does not permit capping in this category. Mr. Humbach explained that legislation specifically address mental/nervous, and you cannot cap it. Mrs. Stricklin addressed certain areas where they can and do cap some of these services. The third highest output of dollars goes to diagnostic testing. She addressed future funding increases and plan changes. Projected needs for this year are more than two million dollars. Costs are projected to increase in all categories served, along with deductibles. The occurrence fee was addressed. Mr. Berzina explained he wanted the Council to be aware of what is happening in health care costs so they can address it in the budget process. Mayor Lam suggested we might be reaching a point in time that we may want to make some other decisions. Perhaps a Council committee could help. Mr. Berzina further noted we do not know what is coming from the federal government. More and more cities are going to the catastrophic plan, and also dropping dependent coverage. We are not ready to drop dependent coverage at this time. He stated he would not be at all adverse at having some of the Council look at it, and meet with the Employee Benefit Trust group. Further discussion continued, with Councilor Hughes suggesting a review of the criteria on what we are offering in benefits. Mayor Lam noted that they will receive the report today, and asked the Council members to look over it, and decide how they want to proceed. He felt they need to get a feel for this with changes coming. Councilor Martin commented that he feels it is time to review the employee retirement benefits, and would like a workshop on it. Mr. Berzina stated they will get a report on it, and perhaps schedule a work session. Item llc Dan Shirey, of the Lake Wichita Study Committee, noted that the Council has received a preliminary report of the lake situation. Mayor Lam noted they will receive it and review it. Tommy and Carol Henderson again appeared before the Council asking that they be permitted to get Ronald Stephens ' old lease under the same terms and conditions that he had it before he let it expire for non-action, as directed by the Council last year. Mayor Lam stated a report had been received from the City Attorney' s office. He summed it up as two problems: return of the property to some kind of standard acceptable to the City, and deal with the lease rate. The Hendersons ' contend they should have the lease because Mr. Stephens defaulted on his personal payments to them for the personal property located on the leased property belonging to the City. Mr. Berzina emphasized that the City can only deal with the lessee of record, and that was Mr. Stephens. He noted that he has a list of 45 people who are going to be in the same situation. They just did not pay the lease. They have been offered a new lease at a different price. This is the City' s position. We cannot look at only one point of view. We negotiate with the lessee. Mayor Lam stated everyone they deal with has a good reason why it happens to them, and they have to act on that reason. They have to look at it. He further stated he would be willing to explore the point of going back to the terms of the original lease. Councilor Mallonee agreed. Councilor Martin felt if they went that route, they be given a 90-day period to bring the house up to standard. 331 Item llc, cont'd. Mr. Humbach emphasized that allowing these folks to go back to the Ronald. Stephens ' lease which is lapsed will open another door. Mr. Berzina stated this matter will be on the next agenda to vote on 90 days to make repairs, then go back to the old lapsed lease agreement. Ray Tiberghien, 1300 Oakhurst, appeared because he failed to exercise :his option in writing to renew his lease for an additional 25 years prior to the expiration date of his lease, as is specifically stated in the lease. Mr. Tiberghien thought there was a 30-day grace period. Council discussion was held on that point. Mayor Lam suggested it be brought back next time. Mr. Humbach noted that the Council selected the process on the second generation lease, asking if they want to revisit the policy. Councilor Hughes commented if we are not going to follow the policy perhaps we should revisit it and not put the staff in a bind. By doing so we will have to look at each individual one at a time, stating he did not agree with that. We need to research the 30 days. Councilor Martin also agreed. Item lld Councilor Martin thanked Norma Crane on the Keep Texas Beautiful contest in which we came in second. He also noted mowing to be done at 15th and Broad, and at the old Volkswagen House on Jacksboro Highway. Councilor Loughry requested an affirmative action report for the Mayor ' s Commission on the Status of Women. Mrs. Stricklin stated she will provide it to them after the Council has heard it. He also asked for a salary survey. He also mentioned a water main leak at 2106 Garfield, and alley pavement rehabilitation behind Car Fonics. Item lle Mr. Berzina noted they are in the process of trying to acquire a couple of houses in the area of the Nature Works Center. Robert Parker addressed security screening at the airport beginning on July 12. He suggested that the airport be made a smoke free facility because there would be no area which could be designated' for smoking. Mr. Parker also commented on the Kickapoo Airport appraised value being an acceptable figure on which to begin negotiations. Mr. Berzina stated that the smoking report will soon be brought to the Council. Item llf The City Council recessed into executive session at 11 : 50 a.m. , according to Article 6252-17, Sections 2(e) (g) , V.A.C.S. The meeting reconvened at 12: 20 p.m. Item llg Moved by Councilor Hughes that Linda Little and Dr. Tim Ashley be appointed to the Wichita Falls/Wichita County Public 332 Item llg, cont'd. Health Board (replacing Martha Peterson and Dr. Richard Milisci) for terms to expire December 31, 1994 . Motion seconded by Councilor Martin, and carried unanimously. Item llh Moved by Councilor Hughes that Ernie Dover be appointed to the MHMR Board of Trustees (replacing Conrad Staley) for a term to expire August 31 , 1995, and that David Farabee be reappointed for the same term. Motion seconded by Councilor Martin, and carried unanimously. The City Council adjourned at 12:21 p.m. PASSED AND APPROVED this day of 1993 . 4-- - -- 1 2 4-- Michael Lam, Mayor ATTEST: 1 Wilma J. Thomas,TRMC/CMC/AAE City Clerk