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Min 03/18/1986 195 Wichita Falls, Texas Memorial Auditorium Building March 18, 1986 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. Gary Cook Mayor Charles Harper Charles Thomas Lindsey Walker Councilmen Bill Palmer Craig Wilson James Welburn James Berzina City Manager H. P. Hodge, Jr. City Attorney Wilma J. Thomas City Clerk Fred L. Werner Chief Accounting Officer The invocation was given by Jerry Hodges, Western Hills Baptist Church. Item 3 Moved by Councilman Wilson that minutes of the meeting held March 4, 1986, be approved. Motion seconded by Councilman Palmer, and carried unanimously. Item 4a-6e Items 4a and 5b were moved to the regular agenda. Moved by Councilman Wilson that the consent agenda be approved. Motion seconded by Councilman Thomas. Item 5a The bid for roofing the Cypress Street Water Purification Plant was awarded to B & M Sheet Metal and Roofing in the amount of $6,800. Ayes: Mayor Cook, Councilmen Harper, Thomas, Walker, Palmer, Wilson, and Welburn Nays: None Items 6a-e Minutes of the meeting of the Landmark Commission held October 17, 1985, were received. Ayes: Mayor Cook, Councilmen Harper, Thomas, Walker, Palmer, Wilson, and Welburn Nays: None Minutes of the meeting of the Mayor's Commission on the Status of Women held February 6, 1986, were received. Ayes: Mayor Cook, Councilmen Harper, Thomas, Walker, Palmer, Wilson, and Welburn Nays: None Minutes of the meeting of the Landmark Commission held February 20, 1986, were received. Ayes: Mayor Cook, Councilmen Harper, Thomas, Walker, Palmer, Wilson, and Welburn Nays: None 196 Items 6a-e, cont'd. Minutes of the meeting of the Park Board held February 26, 1986, were received. Ayes: Mayor Cook, Councilmen Harper, Thomas, Walker, Palmer, Wilson, Welburn Nays: None Minutes of the meeting of the City-County Health Board held February 28, 1986, were received. Ayes: Mayor Cook, Councilmen Harper, Thomas, Walker, Palmer, Wilson, and Welburn Nays: None Item 4a RESOLUTION NO. 36-86 RESOLUTION APPROVING THE APPRAISAL OF PARCELS #64, #65, #66, AND #67 FOR THE HOLLIDAY CREEK CHANNEL IMPROVEMENT PROJECT, SETTING JUST COMPENSATION, AND AUTHORIZING PURCHASE OR CONDEMNATION Moved by Councilman Welburn that Resolution No. 36-86 be passed. Motion seconded by Councilman Thomas. Councilman Thomas noted that it is a little confusing on the map to see just what they have purchased, stating that he does not see Holliday Creek on the map. Dorcas Chasteen stated that things North of the dark line will actually be in the creek. George Bonnett explained that the North line will be above what is shown on the map. Everything North of the diagonal line will be in the channel . Councilman Walker asked within what perimeters the City Manager is authorized to negotiate a purchase price? The City Manager stated that they like to think in terms of a percentage of property value, but many times it is just the feel of whether we can settle it. He further stated that until the Commissioners set the price, they can still negotiate the property. The City Attorney stated that this language is put in to give the City Manager flexibility in not having to come back to the Council for those who can be easily settled. The motion was carried by the following vote. Ayes: Mayor Cook, Councilmen Harper, Thomas, Walker, Palmer, Wilson, and Welburn Nays: None Item 5b Bids were considered on utility and dump bodies for 1986 model trucks. Moved by Councilman Palmer that bids for the above be awarded, as follows. a. Swab Wagon Company - $5,300.00 b. Hobbs Trailer - $5,593.00 c. Longhorn Trailer - $12,950.30 Motion seconded by Councilman Thomas. Councilman Palmer noted that we are accepting the second low bid (Longhorn Trailer) because of the cost and rapid availability of parts over the life of the equipment. They considered the overall cost to the City. The motion was carried unanimously. Item 7a A public hearing was opened on paving of selected alleys in the Lynwood area. 197 Item 7a, cont'd. George Brickhouse, 1515 Gray Fox, stated that he wants the alley paved. The problem is the way it is proposed to be done. He stated that 35 percent of his constituents are renters. He questions this being levied by a water meter, and the landowner is not having to bear the cost. He asked why the City Council can't revert to the lien situation, the same as you would with a road? He asked if the engineers have come up with an estimate on it? He would like this debt reverted to a responsible person. Mayor Cook explained that we discussed this when we first started looking at the alley paving program. The City Attorney explained that a state law does provide for a method of paving streets and alleys with an assessment paving program. It is a very cumbersome process. It does not apply to homesteads unless the property owner signs a mechanic 's lien authorizing us to do so. A number of councils have considered this over the years. They have determined that the cost should be charged to the alley pick-up program. It really is a charge on the garbage rate bi11 . The person who uses this service is paying for this cost just like he is on the truck and labor charges. Mr. Brickhouse asked if you are assuming that most of these people are homeowners? Mr. Hodge stated that this applies all over town. Mayor Cook stated that this alley paving program is at the request of the residents and property owners. We have tried to find a method by which we can enter into this, and not have all the citizens in town subsidizing this service which has been requested by individuals. The cost of doing the alley project is perhaps more expensive than doing the streets. We are trying to enter it into a cost sharing with the residents and property owners because of a convenience to- them, and to us, if it is a benefit to us. It makes it more tolerable for the residents. Some of the neighbors may want it badly enough to put up front a share of another's cost. The problem brought to us by legal counsel and engineering staff is that the City may end up holding the bag because of homestead lien situations. Mr. Brickhouse asked if they could look into the problem of lowering the eight percent interest to make it easier for the residents to bear? City Attorney H. P. Hodge stated that the law states that a paving assess- ment is not valid against a homestead. A mechanic's lien could be executed by the homeowner as a personal lien; not against the homestead. He stated that you can do an alley under an assessment paving program. Councilman Harper asked how much problem it would be to have a combination of the two? Mr. Hodge stated that he had never really looked into it. Mayor Cook noted that a valid point has been brought up, and one which they had already discussed. With a lien, the City may never receive a return. Councilman Walker asked if we have any alley containment in this area? Joe Leonard stated that we have thirteen containers in that area, on Gray Fox and Las Cruces. They have no plans to expand this program unless the alleys are paved. Councilman Walker asked what is the difference in the price of the alley paving and alley container program? Mayor Cook stated that there is no difference. It is just the way it is collected. The citizen still pays for the alley 100 percent. It is just the difference in paying up front, or spread out over several years. David Zelenok stated that the average cost is $8.00 per month. It is eight percent interest for three years. A fifty foot alley costs $10 to $11 a running foot, or $500 to $600 total per lot. Councilman Thomas asked if they are not looking at front pick-up in the future? Mr. Leonard stated that they are. Normally the curbside container is different because in the alley it is for multiple family use. Mayor Cook noted that we have had multiple family containers for seven years. He wonders what would be the difference in the cost of front pick-up or alley pick-up? Mr. Leonard presented a breakdown of costs. He stated that in the area we are talking about, we have one street that is dead end. He believes it does make the area cleaner, and more economical for the city. George Bonnett stated that mechanized collection is the way of the future, and it is cheaper than manual collection. They will be providing some costs on these services in three weeks. It is a very difficult issue in what percentage of the alley costs are assigned to refuse collection. It is roughly a third of the cost for mechanized collection. He believes that we will see curbside automated collection in the next ten years. The drawbacks are over- hanging trees, parked cars, etc. Right now alley collection is cheaper, but the cost of maintaining street systems may make it prohibitive. Mayor Cook confirmed some of these cost analysis because of his discussion with someone who sells this equipment. Councilman Palmer noted that he would like to see the cost differences. Jack Suggs explained that there are two kinds of alley construction; one for autos only, and one for garbage pick-up and autos. 198 Item 7a, cont'd. He explained the evaluation of the alley costs. Councilman Thomas noted that this method is about the highest going in, and cheapest to maintain. James Esther, 1615 Gray Fox, stated that they have worked with the city staff when it was running $1 .75 a foot. He stated that they were promised this as late as Dave Bennett's position as Acting City Manager. When the tornado came they agreed that they would work with the Council and wait for their alleys to be paved. He asked if they should come to the Council with their problems, or go to the engineering staff? He feels ten years is long enough. They are asking for the containerized system because it helps keep the neighborhood cleaner. He stated that they cannot afford $10.00 per foot. He requested that they use Community Development Block Grant funds to assist in this project. Mr. Esther stated that it is not fair that there are no containers on the East side. Councilman Thomas stated that a tremendous amount of paving has been done on the East side. He further stated that the staff cannot make the decisions which only the Council can make. It has to be based on a fair basis for everyone in the city. He stated that the alleys which were paved previously are falling apart. Mr. Esther stated that this past ten years is a bad record after working with the engineering staff, which is not the present staff. Mayor Cook stated that there have been a lot of changes in the Council and administrative staff. He stated that we have a very competent staff. The commitment made ten years ago for $1 .75 would be a perpetuation of the problems done ten years ago. Mr. Bonnett stated that we have 175 miles of alleys in our community, and 100 of those miles need to be paved. We will not perpetuate these mistakes at the cost of all of the taxpayers of Wichita Falls. It was on this basis that we came back in the alley paving program. He is sympathetic to what Mr. Esther is saying, but those people are no longer here, and they should not have made those promises. We are facing some problems because of those promises. Mayor Cook noted that both he and Councilman Welburn had been in the alleys in Lynwood, and they visited with Mrs. Morton. They have come up with an alley paving program. This is the third time that this area has been looked at on alley paving. It was pulled earlier because of the costs. The three gentlemen we have just heard from have worked hard on this. We see Community Development Block Grant Funds continuing to dwindle. They can be spent in target areas, but we are limited in where they can be spent. He stated that he would not be in favor of perpetuating a past mistake. Mr. Esther stated that they are looking at costs. Many of the people out there are having trouble holding on to their homes. He stated that they need some help in the costs. City Manager James Berzina stated that we are looking at a situation on saving costs. Revenue sharing is 99 percent sure to be killed this year. The Community Development Block Grant Program will be cut $400,000. It is more important to pave streets in front of houses than it is to pave alleys. There are more savings in front pick-up. They have spent Community Development Block Grant funds on housing rehabilitation, and he feels this is more important than paving alleys. They anticipate that this program will continue to take cuts, and it may not be here more than four or five years. Mr. Esther asked if these containers can be placed strategically for the use of the residents? Mr. Leonard expressed concern that contractors would dump things into the containers which a truck cannot pick up. Mayor Cook mentioned a situation where someone dumped 600 pounds of chlorine sand from a swimming pool into it, and the truck could not pick it up. The owner of the swimming pool in the area was asked to shovel it out. The City Manager stated that the Clean Community is looking to re-establish this program that Mr. Esther is talking about. Councilman Walker stated that he has not seen a container program on the East side. We are looking at a ten-year problem. A container program has not been addressed, and they still do not have a container program in that area. They are getting the appearance of getting a run-around. If we have an area where we have a peculiar situation, it should be looked at. Ten years is a long time for not meeting this need, regardless of the logic. Today we are looking at a cost which has accelerated quite a bit. From a moral point of view, we need to take a positive look at it as to what can be done. He sees a wide area that needs addressing. From a positive standpoint, we as councilmen and staff need to be putting this in an alley paving program. The citizens will have to bear much of the cost. 199 Item 7a, cont'd. Councilman Thomas noted that we are not paving alleys anywhere, and we have spent hours and hours on this trying to figure out a cost for them which they could afford. City Manager James Berzina stated that we may not like the facts. The price tag is a little higher than we hoped it would be, but we have to pay it if we don't want to replace it every two or three years. We also want to keep it consistent. If we want to get into the alley paving program we have to ask the citizens to pay the cost, or enter into some kind of subsidy. He believes housing rehabilitation is more important than alley paving. Mrs. Mary Castro, 1512 Parkdale, stated that she also owns property at 1510 Parkdale. They have been looking forward to these alley containers. She has a camper and a boat, which are parked in front of her house. She cannot get them into her back yard. She also noted that street sweepers can also do a better job of sweeping. It would be much better to have containers than setting the trash out in front of the houses where cats and dogs can get into it. She would appreciate it if something can be worked out for garbage pick-up. She stated that her property backs up to a park, and asked if the City would split the costs with her? George Bonnett stated that in an alley paving program, the abutting property owner would be paying for their fair share. That would be a staff recommendation, and Council decision. Mayor Cook stated that if it is placed under the alley container program, they would pay for their side of the alley. Councilman Welburn stated that if we allowed the City to do in his neighbor- hood what was done several years ago in his own neighborhood, it would work for the detriment to all of us. He stated that one side of their alley had city property abutting it, and they gave it to the property owners. He urged them not to accept property, if offered to them. He mentioned a ditch caving in. He stated that pick-up is in the alley where he likes it. He believes the container program is not all clover. There are many containers on Eastside Drive. The worst thing we could do is to be shortsited and try to get out of our costs. We should pay the City' s portion of the cost. Betty Johnson, 1623 Parkdale, stated that there is a burned home right next to her, and asked who would pay for that? Mayor Cook explained that if a particular property owner does not wish to participate, then others would have to increase their proportionate share of the cost if they wanted it. It would have to be a voluntary situation. It is not mandatory. RESOLUTION NO. 37-86 RESOLUTION PLACING SELECTED ALLEYS ON THE ALLEY CONTAINER PROGRAM Moved by Councilman Harper that Resolution No. 37-86 be passed (alley container program) , and that the City pay their part of the park property. Motion seconded by Councilman Welburn, and carried by the following vote. Ayes: Mayor Cook, Councilmen Harper, Thomas, Walker, Palmer, Wilson, and Welburn Nays: None Item 7b A public hearing was opened on a reinvestment zone for tax increment financing. Roy Sparkman spoke, and Ruth Terry was present, representing the school board. He stated that the El Paso case is still on appeal to the Texas Supreme Court. No decision has been made. It would seem that with the current status of the law, it would be appropriate to exclude the school , or to postpone their decision until they say whether it is legal to include the school district. He stated that their approval of Option 2 was only stating their preference, and not approval of tax increment financing. He mentioned the use of school funds for development purposes, and not educational purposes. He stated that he does not feel it is fair that more than half of the funds should be represented by the school . He feels it should be looked at to equalize the participation. He stated that they desire to cooperate and work with the City. He would like to try to see if there is some other method by which they could participate. 200 Item 7b, cont'd. Councilman Thomas stated that he believes it is important to build and improve in our city in areas where it is needed. Right now we will not take any money from their budget in tax increments. Mr. Sparkman stated that Austin is good in making laws, and not providing funds. What they are concerned with is you may have a good tax write-off, but no funds to take care of it. Councilman Thomas stated that he has heard some comments on industrial progress. Kate Burgess School has increased by 50 or 60 students, which shows that industry is helping to keep the schools full . The Supreme Court has not ruled on the El Paso case at this time. Mr. Sparkman stated that is would not seem well to proceed, as long as this case is pending. Councilman Wilson asked if the school board had discussed what ways they could voluntarily participate in? Mr. Sparkman stated that he does not know there is such a thing, but he was only expressing that philosophy. This would not become effective until 1987. Mayor Cook noted that Mr. Willie Walls, an Administrative Assistant at the County, was present. Mr. Walls did not request to speak. Councilman Wilson further stated that there are three areas of consideration which he has tried to get a handle on. One is capturing other entities. He would much rather seek out voluntary cooperation. The second is that it is a valuable tool in land acquisition, and the third is that from a revenue stream standpoint this ordinance provides money at the wrong time. The money is not there when you need it. As he looks at the philosophy of capturing tax revenues from the school and the county, and the plus of the land acquisition tool that tax increment financing gives, and the cash flow into the system, his feeling is that he would favor the passage of it if it is done in the short term, and not as a financing tool . Councilman Thomas stated that we wanted improvements to increase growth. We need a starting point. Councilman Wilson stated that if we have X number of dollars that need to be spent on a project, we should support the bond issue and raise the money. He believes we are playing games if we think that tax increment financing will generate enough funds to provide projects which we are talking about. Councilman Wilson asked what kind of bond we could put together without the school ? Roger McKinney stated that it would be on the revenue strength. Two million in bonds was mentioned, and Councilman Wilson noted that this is not a drop in the bucket with the projects we are talking about. Councilman Thomas feels we should do one thing at a time if we can pay for it. Councilman Wilson noted that the adjacent property increases if we piecemeal it together. Mayor Cook agreed that it will generate the amount of revenues necessary for up front costs. We don't want anyone to be lulled to sleep in a false assumption of the amount of money it will generate. It speaks to the issue that developers want to hear that a commitment has been made that they want to continue development in that area. It is also a tool of acquisition. Councilman Harper agreed that this is the right way to look at it. He feels we are a long way away from getting the river developed. Private development will have to come in, and do some development. He believes it is the whole area's part in getting it developed; not just the City. He looks at it like putting money in the bank, and it will grow. Councilman Wilson stated that he believes it is the political arena. It is the responsibility of the county, school , and city. There is something wrong with us in capturing some of their tax revenues, which they had no decision in making. On a long term program it is on the tail end of the program when the greatest amount of taxes are generated. Capital will be required on the front end. At the tail end we will need maintenance and subsistence, rather than capital . We have very little latitude where these funds can be spent on the tail end. If these funds are needed, let them spend the funds out of the general fund. Councilman Walker stated that as he understands it, it is a tool we can use. At the end of this project when most of the money will be coming in, will all of these entities receive monies which have been captured? City Attorney H. P. Hodge stated that the project will end at the time you set out in the ordinance, or at the time when all bonds and project costs and interests are paid off, then the county., schools, and city would begin getting their share of the taxes which have been captured. Mayor Cook stated that if the program is not good, then it could be terminated, and the funds would be redistributed back. Councilman Walker stated that in this revitalization 201 Item 7b, cont'd. we have committed many millions of dollars. Mayor Cook stated that it is a tool for the project. The City will invest only what the Council authorizes. Councilman Walker stated that we will be putting a lot of money into this project that both school and county will not be putting in. We are committed to a lot of money other than this toward the overall revitalization. Mayor Cook noted that 50 percent participation by the school is based on their tax rate. Councilman Walker again confirmed that the City would be putting a lot more money into it which the other entities do not participate in. Mayor Cook stated that the percentage will change annually, based on tax rates. I The public hearing was closed. Item 8a ORDINANCE NO. 22-86 AN ORDINANCE DESIGNATING A CERTAIN AREA AS REINVESTMENT ZONE NUMBER ONE, CITY OF WICHITA FALLS, TEXAS; ESTABLISHING A BOARD OF DIRECTORS FOR SUCH ZONE; AND OTHER MATTERS RELATING THERETO Moved by Councilman Harper, for discussion, that Ordinance No. 22-86 be passed. Motion seconded by Councilman Wilson. Assistant City Attorney Jeanie Thompson suggested that a Section E be added that they find that development or redevelopment will not occur solely through private investment in the reasonably foreseeable future. Roger McKinney also explained how boundaries can be changed and enlarged upon recommendation of the board. The Council adopted Map 2, Exhibit B, with a five-member board. The City Council will appoint three members, Wichita County, one, and the School District, one. Terms were also named, with the City Council appointing the chairman each year. Termination of the zone shall occur not later than December 31 , 2008. David Brock stated that they are appointing a board which will give the City a clear majority. He felt that each entity should have two members. Councilman Palmer asked why you would want to give a clear majority to someone else when it is a city project? In suggesting seven members, he is giving a clear majority to the school and county. Mayor Cook suggested that we ask for concurrence of the County and School on one of the appointments. The motion was carried by the following vote. Ayes: Mayor Cook, Councilmen Harper, Thomas, Walker, Palmer, and Welburn Nays: Councilman Wilson Item 8b ORDINANCE NO. 23-86 AN ORDINANCE MAKING AN APPROPRIATION FROM THE WATER AND SEWER FUND TO THE ACCOUNT NUMBERS LISTED BELOW AND DECLARING AN EMERGENCY Moved by Councilman Thomas that Ordinance No. 23-86 be passed. Motion seconded by Councilman Palmer. Councilman Walker asked how we get into a situation like this, and what kind of effect this will have in the future? Mr. Bonnett stated that this project was conceived many years ago. In July 1985, the contract was split in two parts. We only had less than half of the funds required. We were planning on budgeting in this year as much as we could to continue with the project. After the 1986 budget was adopted, they came in with another contract for the second part. The estimated quantities for rip rap were insufficient. We could extend this contract by a maximum of 25 percent. We will still have some work to be done. If we wait, we would still have the same set-up costs. If we put it off until next year, we could do the whole thing. 202 Item 8b, cont'd. The motion was carried by the following vote. Ayes: Mayor Cook, Councilmen Harper, Thomas, Walker, Palmer, Wilson, and Welburn Nays: None Item 9a Moved by Councilman Welburn that bids be awarded, as follows, for an annual supply of water meters. a. Badger Meter, Inc. - 2000 5/8" , $38,700 b. Badger Meter, Inc. - 300 1 " , $12,630 c. Badger Meter, Inc. - 150 12", $20,583 d. Neptune Water Meter Company - ten 2" , $3,290 e. Rockwell International - one 6" , $1 ,677.37 Motion seconded by Councilman Palmer, and carried unanimously. Item 9b Discussion was held on bids for the waterfall project. A motion was made by Councilman Harper, and seconded by Councilman Welburn, to reject the bids. George Bonnett stated that Al Groves has reviewed the bids. He has asked that he be allowed to redesign the lower elements of the project, and perhaps reduce costs. He has asked that he be directed to look at the design to adjust some of the elevations. He believes he can do this without compromising the aesthetics of it. It might be advisable for the city to do some of the work themselves. Councilman Wilson asked what we paid for this contract? He believes we were in the neighborhood of $18,000. He believes the redesign should be in the scope of the original contract. He has not discussed this with him, but will communicate that to him. Mayor Cook asked if it is possible for the City to be the general contractor and utilize these contributions, and also asked about the time element. Mr. Bonnett stated that the City could act as the general , but we are going at 145 percent of our resources. He would not want to act as the general , and not give it the time which is needed. The prime contractor would have to be responsible, as far as bonding and maintenance. Those who want to donate services could be handled. Councilman Harper noted that perhaps the City could furnish these products, and it would not be added into the contract. Mr. Bonnett stated that it is very difficult for the contractor to reject materials. Councilman Thomas mentioned a letter he had received, which was read by Mr. Berzina, stating that several concrete companies in the city would donate services. The letter was from Arthur Litteken, of OK Concrete Company. Mr. Bonnett addressed the time element, stating that Mr. Groves believes he can be back on the street in two weeks with bids. They look at the consultant in putting the entire package together. Councilman Thomas asked about adding different things to the contract at a later time. Councilman Harper stated that it was not unusual to have addendums. Councilman Harper stated that he feels it will cost more because the bidders have exposed their hands. He is not in favor of reducing anything except costs. He hopes we can find enough volunteers in the City to build it, even if it is the same cost. Mayor Cook asked if we did accept this bid, what would he feel the deducts would total ? Mr. Bonnett stated that they would have to sit down with the prime contractor. It could be accomplished by a change order. Moved by Councilman Harper that this matter be tabled until April 1 to allow the Public Works Department to negotiate with the contractors for figures. Notion seconded by Councilman Walker, and carried unanimously. Jim King asked if they could tell the people of Wichita Falls what it will cost to operate this facility? Mr. Berzina stated that operating costs are bawd on a certain pump (electrical ) , which is still in the design. That should not change. Mr. King would like to know what the maintenance costs would be. 203 Item 9b, cont'd. Larry Six, 4604 Tammy Drive, wondered if Mr. Groves figures on the entire civic center including land, would be as far off as these are. Councilman Thomas noted that this does not include land costs. Mr. Berzina stated that everyone has said they want a riverwalk project. Before we start on the basis of one project in undermining it, let' s stay with the ship on this. Mr. Six has an excellent point. Item l0a RESOLUTION NO. 38-86 RESOLUTION TO ACCEPT IMPROVEMENTS ON SEWER LIFT STATION AND TO AUTHORIZE FINAL PAYMENT TO COSTELLO CONSTRUCTION COMPANY Moved by Councilman Palmer that Resolution No. 38-86 be passed. Motion seconded by Councilman Wilson, and carried by the following vote. Ayes: Ma;lor Cook, Councilmen Harper, Thomas, Walker, Palmer, Wilson, and Welburn Nays: None Councilman Welburn noted that this particular project was completed for less than the original bid. Item 1Ob RESOLUTION NO. 39-86 RESOLUTION TO APPROVE CHANGE ORDER NO. 2 FOR CONTRACT C, CYPRESS EXPANSION PROJECT Moved by Councilman Wilson that Resolution No. 39-86 be passed. Motion seconded by Councilman Palmer, and carried by the following vote. Ayes: Mayor Cook, Councilmen Harper, Thomas, Walker, Palmer, Wilson, and Welburn Nays: None Item 10c RESOLUTION NO. 40-86 RESOLUTION TO APPROVE CHANGE ORDER NO. 1 FOR THE LAKE ARROWHEAD SLOPE PROTECTION PROJECT Moved by Councilman Thomas that Resolution No. 40-86 be passed. Motion seconded by Councilman Welburn, and carried by the following vote. Ayes: Mayor Cook, Councilmen Harper, Thomas, Walker, Palmer, Wilson, and Welburn Nays: None Item 11 a Moved by Councilman Harper that authority be granted to advertise for bids on construction of the landfill soil liner. Motion seconded by Councilman Palmer. Mr. Bonnett explained the requirements for putting anything into this liner. Organic material has to go into this type of liner. Councilman Thomas asked if he thought we would have to have an increase in rates for garbage collection? Mr. Bonnett feels we will have to. He mentioned future requirements which would be very significant. The national landfill costs are $15.00 per ton. Incineration costs are $25.00 per ton. It is the aim of Resource Recovery Act to make this cost equal . It will probably cost $30.00 per ton in the 204 Item lla,cont'd. landfill . He plans to bring a report to the Council on an option of incinerating. Opening a landfill now is almost impossible. We need to move forward with incineration, if that is the choice while we still have landfill space. He estimated incineration costs for our city at $200,000,000. Councilman Palmer asked if he is looking at cogeneration, and Mr. Bonnett stated that he is. Councilman Harper requested that Mr. Bonnett look at ordinances from other cities pertaining to the way things are packaged from grocery stores, etc. Mayor Cook noted that the National League of Cities is also looking at this. The motion was carried unanimously. Item 12a Dennis Thompson, of Hupp/Thompson, Auditors for the City, presented the annual financial report to the Council , stating that they were all mailed a copy of this report last week. He stated that to the best of his knowledge, the City has never been in a better financial condition. Over the past four years the City' s general fund equity has increased a total of $4,607,000 to $11 ,370,000, which is almost a 68 percent increase. Nine million of that eleven million dollar fund balance is unrestrictable and undesignated. In turn, the general fund has unrestricted cash in short term investments of $11 ,681 ,000, and most of that is invested in better than average market rates, which makes it very liquid, and at this point in time, very substantial . During the same last four-year period, the tax rates have decreased 16 percent from 75 cents per $100 valuation to 62.87 cents per $100 valuation, and to the best of his knowledge that is the lowest tax rates have been in the City of Wichita Falls for at least 25 years. The City' s enterprise funds, which operate similar to a private business, have also experienced financial growth, and although the transit system reflects a retained deficit of $110,000, the water and sewer and the airport funds have positive retained earnings of approximately $30,000,000, and the newly segregated sanitation fund has a positive retained earnings of $1 ,128,000 after only one year of operation as a segregated enterprise fund. Net working capital for these four funds at September 30, 1985, exceeded $21 ,000,000, and he believes this to be a very substantial number. Bond ratings remain relatively constant, with a slight improvement, and that is also an excellent indication of the city' s financial stability and strength. The City applied for, and received, a Certificate of Conformance in financial reporting for last year's comprehensive annual financial report, and the receipt of that Certificate also reflects the excellence of the city's accountability and reporting abilities. He com- mended the City Council and city administration for their leadership and management abilities, stating that the city' s current financial posture is healthy and strong. He thanked Mr. Berzina and his staff, and particularly Mr. Werner and his staff, for their assistance and cooperation in performing this year' s audit. Mayor Cook stated that he appreciated the report, and also commended Mr. Berzina and Mr. Werner, and their staffs, along with the entire management and staff of the city for the job they have done in maintaining a fine, very strong financial position with the city. Councilman Thomas stated that he had received comments from some school board members who were irritable when they received a letter signed by Wilma Thomas and the Mayor, stating that we would not participate in the absentee voting. He asked if there was any reason for that? Mayor Cook explained that the main problem was that the space requirement, and as he understands , representatives came down and looked at it, and they agreed that there was not adequate space to house it all in that small reception area, and he thought there was a mutual agreement as to how that would be worked out, so they may not have visited with the representatives that did come down and look to see how the best way it could be worked out. Councilman Thomas asked if some of the school board members came down? Mrs. Thomas stated that Mr. Ayers and Dr. Williamson came and in the beginning, all of us did not realize the number of machines that would be required in that office. In the beginning we said if we put another desk in there, there would be enough space, but then we are all in districts now. Four machines are required for the City, and the school would have two or three. It would be difficult to get two or three more machines in there, another person, another desk, and conduct the business of the office, as well as absentee voting. When that was brought to their attention, they realized that there was not enough space for all 205 Item 12a, cont'd. of that in that area. Councilman Thomas stated that evidently the board did not know about this visit, and he sure did not know we had turned them down, so that was one of the comments. Mayor Cook noted that it was his understanding that when they came down to measure to see if it all fit, they agreed that it would not be a workable situation, and there was not any other available vacant space that would also be suitable, so that was the premise. Larry Six, 4604 Tammy Drive, commended Mr. Berzina and the Mayor on their recent trip to Washington, D. C. to save the taxpayers money. Mayor Cook asked if he were referring to the trip in conjunction with the National League of Cities on the tax exemption legislation to get the change on the effective date of House Bill 3838? He noted that they did not stay for the entire conference. They participated by visiting with senators, representatives, and Corps of Engineers people to get that aspect of it done. Mr. Six stated that he cannot understand how they are limited to an expense account the same as other councilmen. As Mayor of our city, to represent us properly this may need to be looked into to increase their budget to the effect where they could represent us outside the city, unless we are going to put a wall around the entire city, and expect him to stay in the city and not make trips at all . He also commended Councilman Palmer for his recent article in the paper. Mr. Six stated that he wants to know who has made these promises in the past, which Charles Harper, by the way, is quoted as making not a promise, but a commitment, to certain downtown areas, and he wishes this were brought out to the public as to who made all these commitments to the downtown convention center, if indeed it is ever built, which we all know we need it. Our kids need it desperately. Mr. Six asked Mr. Harper to address who made all these previous commitments to certain people, Aufleger Garrett for one, which we understand the news media will be a little biased on certain subjects, but it was front page news where you revealed the facts and all these figures on how much more the Mayor spent during the previous year. Councilman Harper stated that he never revealed any facts, and if you want to turn this Council meeting into a forum, we can do so, but I don't feel like you want to do that, and I know I don 't want to. Mr. Six stated that Mr. Harper had stated many times that we were committed to go with the downtown project in the past. Councilman Thomas answered that before the promoters from Dallas arrived on the scene, every time we had an industrial , or anybody who wanted to make a substantial investment in this area would come to town, he has seen on these Council walls, numerous times, these pictures, drawings, and what have you; he has also seen them on hotel walls and BCI walls, and this is a project which has been going on since 1976, and it would be just like if I told you I had three children, and you came to visit me and found out I only had two. This is just a project that we have sold to develop the community over the years. That is the reason we have had growth in Burgess School in the last three months because of this growth and promises that we said we were going forth, and that applies to projects over this city. Nobody told them it would definitely be built. We told them it would be a project that was being worked on that was adopted in the Plan 2000 in 1976 by this Council . He asked Mr. Six if that answers his question because he believes this makes two or three times. Mr. Six replied that Charles Harper made a statement that we have a moral obligation. Councilman Thomas noted that when someone spends 35 to 40 million dollars that makes a pretty good moral obligation. Mr. Six stated that this has been in print many times by Mr. Harper, and that is the reason he wanted to question it. Councilman Thomas noted that Mr. Harper does not own a paper, and neither does he. Mr. Six asked if there is any way that the citizens as a whole could possibly know who all is involved or behind the Corporation of Midtown Now? Councilman Thomas replied anybody that wants to donate. Councilman Harper asked Mr. Six what he means by who all ? Mr. Six stated that he wanted to know the names of people in the Midtown Now Corporation. Councilman Harper stated that there are 256 members, and it requires the arm of this City Council . David Brock stated that there is a way to extend the life of the landfill pertaining to yard waste recycling and organic material . He stated that gardeners could use 2000 bags a month during the summer. He suggested that they try to come up with a way of better recycling the yard waste. He offered to work in any way he could. The City Manager stated that he would like to look into it, too. Councilman Harper asked Mr. Berzina to prepare an ordinance along the line of information which he gave them on a Commission for the Aging. 206 Items 12b,c The City Council recessed into executive session at 12:10 P.M. , according to Article 6252-17, Section 2, Paragraphs (e) and (g) of the Revised Civil Statutes. The meeting reconvened at 2:45 P.M. Moved by Councilman Wilson that appointments be made, as follows, to the Mayor' s Commission on the Status of Women. a. Dr. Carol Myers - Expiration term 9-30-87 b. Suzanne Schlabs - Expiration term 9-30-86 c. Patricia Bradley - Expiration term 9-30-86 Motion seconded by Councilman Welburn, and carried unanimously. (Deborah Ann Stevens and Homer Ann Hooper were replaced. ) Mayor Cook noted that they have received an extensive accounting report from Mr. Berzina and Mr. Werner, and asked if the Council had any questions on it. Mr. Berzina stated that he received a letter dated March 9 from Councilman Harper, in which he asked for five specific pieces of information. It was his original intention to pass the report out, and each council member and recipient of the report could do whatever they wanted to do with it. The report has received quite a bit of publicity, and he feels that some of the things that have been raised need some specific comment, and also since Mr. Harper is not here the press has been waiting for this report, and he feels it is appropriate to make some comments about it, and mainly to tell the press that copies of the report are here. Charles Harper, particularly, wanted his copy made available, and he believes that any of the report copies would be available to them. Perhaps some comments from himself and Mr. Werner in terms of totals in the report, or some specifics, would be helpful so that in looking through it we want them to be as happy as possible, and if we can help in that regard obviously we will , but essentially the request was an accounting of the last year and a half - the 84-85 budget, and the current fiscal year budget of the expenditure patterns in the City Council fund. We have produced a report that is several pages in length, and the obvious question that comes up is do we have a list of each particular check written in the Mayor/Council 's particular budget? We were looking for more than totals; we were looking for the purpose of the expenditures involved, and more detailed accounting to make sense of the figures, rather than just giving a lump sum or item figures. It has taken quite a while to come up with that, and it is pretty much a line item expenditure in the council ' s budget as to what those expenditures were for. In the current year we are in right now, we have spent in the Mayor/Council budget a grand total of $22,410. That is compared to last year of $34,960 total for the year. Of the $34,000 last year and the $22,000 spent this year, there are several large expenditures; for example, this city is a member of the Texas Municipal League, and the $4800 a year to pay these expenses is in here for both years. We are members of the National League of Cities , and those dues are in here. The expenses of the Human Relations Commission come out of here. He noted that quite a bit has been said about the travel and expenses. They are a part of this budget. The press will probably want to take this, and look into those particu- lar items, and ask their questions. Each one of these says where the destination was, who went, and one listing has the total cumulative expenses. He feels it is commendable on the part of the Council that they wanted to be here for this. The general feeling is that this has been done in the interest of the city, and on behalf of the city. Mr. Werner explained that they will see some expenditures for which you will not find a check written payable to someone. For example, from the National League of Cities on a meal ticket that benefited the Mayor and/or his party, you will find a disparity between what the newspaper derived off the computer records and what the City has in front of them on a financial report. Some charges were not paid directly to an individual . Registration for the National League of Cities was paid to them, but it was for the benefit of the Mayor. We have extracted that charge, and added to the Mayor's expense account. The City Manager stated that they are getting a more complete listing than they would if they just went through and got a list of checks cut for the Mayor's expenditure. Paul Murphy asked about transfers when there is an over-run. Mayor Cook noted that an over-run on travel is a line item transfer. Mr. Werner stated 207 that the past two budgets have been adopted in a class-level total . It was not adopted in a line item total . What the Mayor has addressed isan item we call an account 4200 to 4299. It is a burden, as you can see, trying to monitor a line item budget on the volume and magnitude we operate under. This was discussed administratively, and it received support of Council that we will monitor all budgets for all divisions and departments at a class total level . That means that if the travel runs over in a travel account, it is offset with an under expenditure in another account. He stated that in his professional opinion, he does not believe that there has been any abuse by any person, Council , or employee of any of the accounts of expenditures made throughout the city. Mr. Werner further stated that a credit card falls under the same scrutinty. When it comes in we prepare the document. It is sent down to the City Manager's office for review and approval . If there is any difference between the budget and the year to date expenditure, the budget lofficer reviews the budget, and makes an appropriate transfer between line item accounts. Mr. Berzina stated that there is an important point to be made here. He knows of three ways you can incur expenses on behalf of the City, whether it is traveling or any reimbursement of expenses. You can requisition money. You can go with your own and spend it and get reimbursement, or you can go with the credit card situation. They all fall under the same scrutinty. One is a more convenient way. That is the reason it was talked about some time back with the Council members about the need of getting these cards. The important point is that you fall under the same scrutinty, no matter which method you use. We get the credit card slips back, and we see what the money has been spent for. Amy Keen asked about a $2400 charge. Mr. Berzina stated that it is all in here. Mayor Cook asked how she was coming up with that figure, because when she asked him about it he did not know which charge she was referencing, so it was printed that he did not know. It is the same way with Jim. We don't know which $2400 she is talking about, out of several thousand dollars. Councilman Wilson pointed out that there is no $2400 item in here. They will answer it if she will specify what she wants to know. That is what we reported last time but needless to say the newspaper did not print it that way. It was a combination of several things. Mr. Berzina assumes they will be able to tell . It is the same vein as Fred's comment about not knowing Mr. Welburn' s number. Each person has a vendor number assigned to them so you can pull it off the computer, and track it in the system. Mr. Werner explained the process required to get information from the computer. Councilman Wilson noted that it took hours and hours and hours to compile this data in the form in which it was requested. Those people have a full time job as it is. They were asked to prepare it for this meeting to present to Mr. Harper, who is not here, and they were spending hours and hours trying to meet that request. They spent a lot of hours of overtime. There was a lot of data in a very short time frame. He noted that when you talk about credit cards it is kind of like giving a blank check, but he suggested Mr. Murphy's station manager and Jim Lonergan, at the newspaper, probably both have American Express cards to keep track of their expenses, and those things are allocated out through here. They are not recorded as a check to a credit card company, but as an allocation to whoever made the charges on it for whatever the purpose was. He stated that he personally believes this is petty politics. Councilman Thomas asked if he thought Mr. Harper made this request without the public asking him to make it? He further stated that he did not think it was a personal request on his part. The press also asked him for it, and he said that they were unable to obtain what they were trying to find. He believes the request was made under those circumstances, and he believes public information should be presented to anyone. Councilman Palmer thought a deadline should be put on it. He would be very interested in knowing what this report cost. Mr. Werner will get the information on it. Councilman Palmer stated that he is afraid we have spent the most of this $2400 for a report that shows how it was accounted for. Councilman Thomas stated that if that is the case, then we will never have any information for the public. Mayor Cook stated that anytime the public asks for a report, that report is generally available, and the request is usually made through the Director of Finance or Chief Accounting Officer, Mr. Berzina, or the Council . He further stated that he is quite aware that the newspaper has done these stories before. In fact, Pat Counsel made one just before she left the newspaper. The information was readily available to the public. Amy Keen asked if it is readily available, how did he explain the actual printout she asked for? Mayor Cook stated that you have to consider the format in which it is requested. This format is very time consuming to compile, versus totals, which is normally requested. 208 Another media person who came in late asked Mayor Cook for the reason for a trip to Washington, D. C. , stating they had received several calls about it. Mayor Cook explained that the primary concern of the National League of Cities is H. B. 3838, which has every city's bond project in the United States on hold. That bill has an effective date of January 1 , 1986. They are very concerned about getting this date changed to January 1 , 1987. It would free up all these bond programs that are currently logjammed, and allow them to go on with actual construction, reallocation, and refunding of some outstanding debt. Interest rates have continued to fall , and interest rates on our forty million dollars right now if we could do a refunding, we could save our taxpayers one million dollars, and that is a substantial amount of money. That is one million dollars for just one year. We went up there for the purpose of contacting our senators and congressmen because they were the ones we were converging on Washington to discuss. They managed to get appointments to see all four people on Friday that we were scheduled to see; therefore, they did not have to spend additional days up there, and they did not think it was justified to spend money for registration at the National League of Cities when they already had the bulk of the purpose and the reason for going. The bulk of the conference was on Gramm-Rudman and H. B. 3838. As a TML director, he had already been apprised of this on a weekly basis, and was already familiar with specific needs and direction. Mr. Berzina stated that the National League of Cities holds two major meetings a year. The fall meeting is more the substance, the programs, and speakers. The springtime meeting is a legislative meeting. In this city' s history we haven't spent much time with resolutions. Most of the purpose of the springtime meeting is to contact the legislators. They spend a total of three days doing this. We weren' t going unless we could see three or four people we wanted to see. We ended up seeing three of the four, and key representatives of the fourth person. We were also going for something else. We had our own pet project -- Holliday Creek, and if we are going to start a project for a low water dam on the riverwalk project, we need to see the Corps and some other people. That is why we went. Mayor Cook noted that they met with Secretary of the Army, Bob Dawson, on the Holliday Creek project. Fred Werner responded to Paul Murphy that he would be happy to share with the media the computer reports that are necessary to build the data which was produced. Unless you can read computer language, you can't understand it. Each item was broken down, which makes up the total . Amy Keen asked who paid for the Furstenfeldbrook trip when Mayor Cook and Councilman Welburn went? Mayor Cook stated that it was personally paid for. Mr. Berzina noted that some gifts for officials in Germany were in the budget, but expenses were paid for personally. Mayor Cook noted that Mr. Berzina, Mr. Werner, and Mr. Hodge are watchdogs on the budget to make sure there is no misrepresentation, and that if any member of the Council felt they needed to ask any questions on their request, they were not too bashful to do so. These are safeguards that are established. Mayor Cook stated that we need to travel , and we need the staff to travel . It is only through this type of meetings, conferences, and exchanges that we save many tens of thousands of dollars, if not millions , in so doing. He believes it is important that we get our people out and expose our people to these ideas. Councilman Wilson stated that it is expensive to travel , but it is more expensive not to travel when they are necessary trips. Councilman Thomas stated that it will take a long time to digest the report. There are a lot of figures. Councilman Wilson mentioned a savings of $165,000 to the taxpayers on a bond trip to New York. Mr. Berzina stated that last year $37,000 was appropriated, and $34,000 spent. Some accounts were over, but with the line item transfer capability, we really underspent the budget. Mayor Cook, Councilmen Welburn and Walker all expressed that they would not want to make any travel changes because of the report which was requested by Mr. Harper, if travel was necessary to promote city business. Councilman Wilson noted that there are many things going on which will benefit the city that we should attend. 209 The City Council adjourned at 3:30 P.M. PASSED AND APPROVED this day of 1986. ar Mayor ATTEST: Wilma J. Thomas, CMC, City Clerk I