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