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Min 03/17/1987 471 Wichita Falls, Texas Memorial Auditorium Building March 17, 1987 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 5:30 o'clock P.M. , with the following members present. Charles Harper Mayor Sandy Goff Charles Thomas Ruth Ann Allred Ronald Buffum Councilmen Lindsey Walker Don Kirkham James Berzina City Manager H. P. Hodge City Attorney Wilma J. Thomas City Clerk Fred L. Werner Chief Accounting Officer The invocation was given by David P. 'Williams, Eastside Baptist Church. Charles Harper, Mayor, read a poem by Robert Frost. I Item 3 Moved by Councilman Goff that minutes of the meeting held March 5, � 1987, be approved. Motion seconded by Councilman Allred, and carried unanimously. Item 4a -- 8a -- _ - -- '- � j Item 7a was moved to the regular agenda. Moved by Councilman Thomas that the consent agenda be approved. Motion seconded by Councilman Buffum. Item 4a A proclamation on social work month was read by Charles Harper, Mayor, and presented to Billy Blodgett. Item 5a RESOLUTION NO. 44-87 RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT FOR THE GREATER WICHITA FALLS SOCCER ASSOCIATION. Ayes: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Walker, Kirkham and Buffum Nays: None Item 6a The bid for a front end loader for Waste Water Department was awarded to Construction Agricultural Supply, Wichita Falls, in the amount of $33,914. 472 Item 6a, Cont'd. Ayes: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Walker, Kirkham and Buffum Nays: None Item 6b The bid for a front end loader for the Street Department was awarded to Darr Equipment Company, Wichita Falls, in the amount of $55,763. Ayes: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Walker, Kirkham and Buffum Nays: None Item 7b Minutes of the meeting of the Board of Directors of Tax Increment Financing Reinvestment zone, Number One, held February 2, 1987, were received. Ayes: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Walker, Kirkham and Buffum Nays: None Item 7c Minutes of the meeting of the Board of Directors of Tax Increment Financing Reinvestment Zone, Number One, held March 4, 1987, were received. Ayes: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Walker, Kirkham and Buffum Nays: None Item 7d Minutes of the meeting of the Park Board held February 26, 1987, were received. Ayes: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Walker, Kirkham and Buffum Nays: None Item 7e Minutes of the meeting of the Kemp Public Library Advisory Board held February 4, 1987, were received. Ayes: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Walker, Kirkham and Buffum Nays: None Item 7f Minutes of the meeting of the Civil Service Commission held February 18, 1987, were received. Ayes: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Walker, Kirkham and Buffum Nays: None Item 7a Minutes of the meeting of the Civil Service Commission held February 26, 1987, were received. Ayes: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Walker, Kirkham and Buffum Nays: None 473 Item 8a A refund of over payment of taxes in the amount of $765.91 , was approved for First Financial Title Agency. Ayes: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Walker, Kirkham and Buffum Nays: None Item 7a Moved by Councilman Buffum, for discussion, that minutes of the meeting of the Youth Activities Advisory Council held February 2, 1987, be received. Motion seconded by Councilman Kirkham. Councilman Buffum asked by action on the Teen court has been idefin- itely postponed? Charles Harper, Mayor, stated that there are some legal problems that need to be solved before they go forward. If they can be resolved, then they will go forward. Councilman Buffum noted that he was very impressed by the concept of the program. The motion was carried unanimously. Item 12a Moved by Councilman Thomas that Item 12a be moved up on the agenda. Motion seconded by Councilman Buffum, and carried unanimously. Joy Parsons, 1613 Speedway, appeared as Chairman of the Mayor's Task Force on Aging. She stated that there are very good provisions of services for the aging in this area. They would not be looking at establishing new services, but they did see a need to support and extend existing service. Mrs. Parsons stated that they recommend a city commission on aging. Advocacy for the aging is a primary concern. They support the utilization land extension of existing resources. They recommend that they look to the committee for growth of existing services. They recommend the establishment of a volunteer network in nursing homes. They recommend that they attend to the funding of resources at all levels, and see that they challenge cuts to those services. Thev would research and promote health care for the aging. They would like a liason between the committee and the City Council . They would like to assist and advise the city Council on needs. They would promote the general welfare and advancement of the aging. They would act in a voluntary capacity. They recommend 15 members. Selection should be by application in the wards or districts. They recommended Dr. Robert Clark, of Midwestern State University, and Dr. Charles Wilson, a retired surgeon, to be on this commission. Councilman Buffum noted that he feels the report is well written. Charles Harper, Mayor, recognized members of the Task Force in attendance. Councilman Walker asked if any thought was given to funding this commission? Mrs. Parsons stated that it was not considered. Charles Harper, Mayor, stated that they would take this under advisement. Moved by Councilman Thomas that we advertise for these positions. No second was received. Councilman Walker felt that if the staff has not seen this report, we should not go forward with it right now. Councilman Goff asked if we need an ordinance that establishes this commission? City Attorney H. P. Hodge stated that an ordinance would be required. Moved by Councilman Goff that the staff be directed to bring back an ordinance for consideration. Motion seconded by Councilman Thomas and Allred, and carried by the following vote. 474 Item 12a, Cont'd. Ayes: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Buffum, and Kirkham Nays: Councilman Walker Councilman Walker stated that he has been on the Council for about eighteen months, and he is under the impression that you could not vote on a motion in other business. He stated that he believes in consistency. He further stated that he has not read this report. In other business, we can listen, but not take action. He does not see why we should consult with the staff since it has been voted on. Councilman Thomas feels that since it was posted, it could be discussed. Councilman Kirkham noted that the agenda denotes it as appearance of repre- sentatives. He agrees with Councilman Walker that it was not proper to vote on it. Councilman Walker noted that we have previously directed staff, but not vote on it. City Attorney H. P. Hodge stated that Item 12b does not give anyone any notice of what might be discussed, and you could not take any action on that. Item 12a tells us and the general public that representatives of the Mayor' s Task Force on Aging are going to appear. It is a question of what constitutes action. It would seem to him that they are saying essentially the same thing. Charles Harper, Mayor, stated that he would rule that they acted cor- rectly. Councilman Thomas and Buffum urged that they go on with the next item. Item 9a Councilman Thomas noted that he has a conflict of , interest on the first ordinance included here, and cannot vote on it. ORDINANCE NO. 18-87 AN ORDINANCE CLOSING, VACATING, AND ABANDONING THE PORTION OF 26TH STREET LYING BETWEEN JASPER STREET AND OLD JACKSBORO HIGHWAY, WICHITA FALLS, TEXAS Moved by Councilman Allred that Ordinance No. 18-87 be passed. Motion seconded by Councilman Goff, and carried by the following vote. Ayes: Charles Harper, Mayor, Councilmen Goff, Allred, Buffum, and Kirkham Nays: None ORDINANCE NO. 19-87 AN ORDINANCE CLOSING, VACATING, AND ABANDONING A NORTH-SOUTH UTILITY EASEMENT LYING BETWEEN LOTS 1, 2, & 3, BLOCK 4 PARK VILLAGE ADDITION, WICHITA FALLS, TEXAS Mr. McKinney explained that there is no reason to maintain this utility easement. Moved by Councilman Buffum that Ordinance No. 19-87 be passed. Motion seconded by Councilman Kirkham, and carried by the following vote. Ayes: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Walker, Kirkham and Buffum Nays: None Item 9b Charles Harper, Mayor, and Mayor Pro ten Thomas each expressed a conflict of interest on this item, since both are on the Board at North Texas Federal Savings and Loan. 475 Item 9b, Cont'd. Moved by Councilman Buffum that Councilman Walker be selected as temporary chairman. Motion seconded by Councilman Kirkham, and carried unanimously. ORDINANCE NO. 20-87 AN ORDINANCE REZONING APPROXIMATELY 4.67 ACRES OF LAND AT 1401 PEACH STREET, WICHITA FALLS, TEXAS, FROM HEAVY COMMERCIAL TO MOBILE HOME RESIDENTIAL ZONE Moved by Councilman Kirkham that Ordinance No. 20-87 be passed. Motion seconded by Councilman Buffum. Councilman Walker asked how many families they are talking about here? lMr. McKinney explained that all property owners within 200 feet of this property were notified. Thirty-four percent of the owners favored rezoning. ( Four percent opposed it. Several did not respond. Councilman Buffum inquired of Police Chief Harrelson if mobile home areas cause an increase in crime? Chief Harrelson explained that there is no difference. The motion was carried by the following vote. Ayes: Councilmen Goff, Allred, Walker, Kirkham and Buffum Nays: None Moved by Councilman Goff that Items 9e and 9f be tabled until after Item lld. Motion seconded by Councilman Kirkham, and carried unanimously. Item 9g A proposed ordinance was presented, changing the fees for licensing mobile home parks. A motion was made by Councilman Thomas, and seconded by Councilman Buffum, for its passage. Councilman Kirkham asked why wehave a mobile home fee? Mr. Berzina explained that it was due to the inspections involved. The turnover is not now as great. Mr. McKinney stated that it is an annual license fee which has been around since 1963. Councilman Kirkham clarified that any other inspection fee would be in addition to this fee. Councilman Thomas stated that this came up about two years ago, and he asked that it be studied. They were going to work with the staff to see if they could come up with a fair fee. Mr. McKinney stated that several parks did riot pay the fees after they were increased in 1983. Mr. McKinney stated that they did not apply for a license, and they did not do any inspec- tions. Councilman Buffum asked Mr. McKinney if he feels mobile home ordinances are applied throughout the city? Mr. McKinney stated that we have several mobile homes with problems , such as junk cars, trash, debris, sanitation, etc. It is difficult to meet the setback requirements in some cases, since mobile homes have increased in size. Willie Vaughn, Vaughn ' s Mobile Home Park at 3210 Iowa Park Road, stated that the first fee was two ordinances back. They were told that all mobile homes would be placed in parks; not on private lots. That was the reason for the license. When it was doubled, it was passed as an emergency measure. He was told that they needed the money. He does not believe it is right to have to pay this park license. It is $5.00 for each space - full or empty. When they appeared before, Councilman Thomas made the motion that it be taken under study. They are still waiting for an answer, and they now have it, and it is tough. A report was hand delivered to his residence last Tuesday. He stated that he has not bought a license since the last increase. He cannot see that it is reasonable or fair. 476 Item 9g, Cont'd. Councilman Buffum asked Mr. Vaughn if he is comfortable going back to the old rates? Mr. Vaughn stated that he isn' t. He is also not comfor- table even if they do not pay for empty spaces. They at first thought it would help both them and the City. The City does not make an inspection of a mobile home coming on to the lot until after the utilities are connected. Henry Dvorken, 710 Fillmore, stated that he paid $475 under protest; and he hopes he will get some of it back. It seems that mobile home parks have been singled out just for a tax. It is not required for other proper- ties. It seems that the fees have no real relation with the cost. Councilman Buffum asked why they are being classified as being taxed, when other private businesses are not taxed? Mr. McKinney stated that the ordinance was adopted in 1969, he assumes for the reason that several inspections were made by various departments. The emergency clause was because it was part of the budget process, and adopted on September 20. It was along the lines of other fees at that time. Councilman Thomas stated that mobile home parks read their own meters. They only had one meter. Mr. Vaughn stated that Texas Electric would not bill each one individually at that time. Now, they do. Councilman Goff clarified that if we vote against this, the fees stay the same. Councilman Buffum suggested that he might want to look at it to see if there is a need for this. Mr. McKinney stated that they could handle it on a one-on-one basis. Moved by Councilman Kirkham that this item be tabled, and that the staff be requested to come back with a recommendation of no fees. Motion seconded by Councilman Allred, and carried unanimously. Councilman Thomas encouraged the mobile home park owners to have input in this before it is brought back to the Council . The Council recessed at 6:47 P.M. , and resumed the .meeting at 7:33 P.M. Councilman Walker presented buttons to each Council member from the first Chapter at Hirschi High School on Students Against Driving Drunk. Councilman Buffum presented a birthday cake to Councilman Allred. Item 10a RESOLUTION NO. 45-87 RESOLUTION TO APPROVE CONTRACT WITH THE FIRM OF CORLETT, PROBST & BOYD, INC. , CONSULTING ENGINEERS FOR THE DESIGN OF A NEW BRIDGE AT HARDING STREET SPANNING HOLLIDAY CREEK Moved by Councilman Thomas that Resolution No. 45-87 be passed. Motion seconded by Councilman Walker. Councilman Buffum confirmed that the City will receive credit for previous design work accomplished for this project. Councilman Walker asked how traffic will be re-routed, and Mr. Bonnett explained that it will be to the North and South. It will be very inconven- ient, and the bridge will be closed for eight months to a year. Charles Harper, Mayor, requested the staff to look at this situation to see what alternatives are available. It was noted that the design will start in ten days. 477 Item 10a, Cont'd. The motion was carried by the following vote. Ayes: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Walker, Kirkham and Buffum Nays: None m 1 Item c 0 RESOLUTION NO. 46-87 A RESOLUTION APPROVING THE JOINT CERTIFICATION PACKAGE FOR URBAN TRANS- PORTATION PLANNING AND AUTHORIZING THE CITY MANAGER TO EXECUTE REQUIRED CONTRACTS, AGREEMENTS, AND CERTIFICATIONS Moved by Councilman Thomas that Resolution No. 46-87 be passed. Motion seconded by Councilman Kirkham, and carried by the following vote. Ayes: Charles Harper, Mavor, Councilmen Goff, Thomas , Allred, Walker, Kirkham and Buffum Nays: None Item lla Moved by Councilman Buffum, for discussion, the bid for two hundred, 150 watt high pressure sodium luminaries, be awarded to United Electric, in the amount of $9,770. Motion seconded by Councilman Goff. Robert Parker explained that we will save $200,000 per year on this program by this coverage. Councilman Kirkham noted that the expressway is lighted almost to Jolly, but they are not that way on the West side. 11r. Parker stated that the State maintains all lights outside the city limits. The motion was carried by the following vote. Ayes: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Walker, Kirkham and Buffum Nays: None Item llb RESOLUTION NO. 47-87 AWARD OF BID FOR THE 1987 COMMUNITY DEVELOPMENT MILLING AND STREET OVERLAY PROJECT (87-2) Moved by Councilman Thomas that Resolution No. 47-87 be passed. Motion seconded by Councilman Kirkham, and carried by the following vote. Ayes: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Walker, Kirkham and Buffum Nays: None Item 11c Discussion was held on award of bid for the annual vending machine concession. A motion was made by Councilman allred, for discussion, and 478 Item llc, Cont'd. seconded by Councilman Buffum, that the bid be awarded to Automatic Vending Company. Councilman Allred asked how the bidding process is issued? It was noted that names are obtained from the yellow pages. She stated that appar- ently they have left out some people who did not have a chance to bid. Mr. Barrett explained that they maintain a log book in every particular category of commodity that they bid. For some reason, City Vending was left off, and he does not know why. They basically made a mistake. A notice is also published in the legal ads. They did not pick up from a year ago that the bidder should have been put on the list. Councilman Allred suggested that in all fairness, that all bids be rejected, and those who are in the yellow pages take some action to get their names on the bid list. Mr. Berzina explained that this is more of a quotation for service, than a bid. He is not sure what we will get since most of these people have shown their hands. He stated that in a good portion of our bid practices the legal notice suffices. Craig Wilson appeared stating that city Vending may not have directly contacted Purchasing last year, but he stated that he knows on two specific cases that they were interested in bidding for the City, he delivered notices of this. Mr. Berzina commented that with the size of the Purchasing staff, they may not always be able to contact every bidder. He cannot say that everyone will always be notified. Mr. Arndt stated that they had never contacted him. He also did not remember Craig Wilson contacting him. He further stated that all they have to do is contact him if they are inter- ested in being on the bidders list. Ile would prefer to have it on their own letterhead. He feels it would be very unfair to the bidders who responded in this case, if bids are rejected. City Attorney, H. P. Hodge, feels that this creates a hardship on bonafide bidders. James Slager, with City Vending, stated that he had been trying to get on this bid list over and over. He stated that he had not contacted the Purchasing Agent. Councilman Allred assured him that he is now on the list. Mr. Hodge noted that normally the City has the right to reject any and all bids. The Council does not have a legal problem. Councilman Allred feels that we have made a mistake which we need to rectify. Councilman Walker noted that he is disappointed that a city council person asked that something be done, and it has not been done. He knows that we can' t cover everyone, and be guaranteed that they will receive a bid. We need to correct the mistakes wrl ich we can. He leans more toward eliminating inequities, and see that this does not happen again. Councilman Buffum wondered if we could award this bid for only one year, instead of with an option. Mr. Arndt stated that in 1984 he had a meeting with bidders. He does not recall what the response was from City Vending at that time, but the bid list was developed from those firms who indicated that they wanted to be on the bid list. Councilman Allred asked if the one year option could be cropped? Mr. Arndt stated that the bidders unanimously recommended that it not be because of the expenditure of funds involved. He also stated that the Memorial Auditorium function is included in this, along with the snack bar and police station. The motion failed by the following vote. Ayes: None Nays: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Walker, Kirkham and Buffum 479 Item lld RESOLUTION NO. 48-87 REJECTING BIDS RECEIVED FOR PHASE ONE OF THE CONSTRUCTION OF A SOFTBALL COMPLEX RELATING TO SITE PREPARATION AND INSTRUCTING STAFF TO RE-BID THIS PROJECT Moved by Councilman Goff that Resolution No. 48-87 be passed. Motion seconded by Councilman Walker. Mr. Berzina explained the three phases of this project. On the site , preparation bids, there is a question as to what the actual bid is. It is a conditional bid. The other bidder, who is in the same price range, claim that their add-on is a deduction in price. He recommended that the ; site preparation bids be rejected; also, that they be allowed time to negotiate with the low-bidder on the basic bid project. They would seek to get an ! extended time to accept the bid on the landscaping. Charles Harper, Mayor, concurred with the recommendations of Mr. Berzina. He hopes it can come back near the $800,000 figure on all bids. Councilmen Buffum and Allred felt that $800,000 was the top amount we were always looking at. One and one-quarter million dollars is way out of line. City Attorney H. P. Hodge stated that he and one of his assistants have discussed this considerably. He would be inclined to think you would deduct the fee, but there are no cases on it. A gentleman appeared, representing Joe Brown Company, in Ardmore. They are contending that these were bid as changes, and subtracted from the bid. Conrad Staley noted that he sees his point, and it is well taken. The word "saved" is used in the past tense. The intention was that it be deducted from the base bid. Further discussion was held on the wording of the bid, and the estimated cost. The motion was carried by the following vote. j Ayes: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Walker, Kirkham and Buffum Nays: None RESOLUTION NO. 49-87 AWARDING BID FOR VARIOUS CONTRACTS RELATING TO THE CONSTRUCTION OF A SOFTBALL COMPLEX Moved by Councilman Goff that the bid of Smith Landscaping be approved in the amount of $69,418.66 (Section 2) . Moved by Councilman Goff that the question be divided on the various sections. Motion seconded by Councilman Kirkham, and carried unanimously. Moved by Councilman Goff that we strike Section One, accept Section Two, and negotiate Section Three. Motion seconded by Councilman Allred. Curtis Smith, 4100 Kemp, stated that he does not see any problem with holding the bid open for a while so that it can be negotiated. He noted that Bermuda grass is called for. The roots are not established enough to go through a hard winter if it is seeded in September. City Attorney H. P. Hodge stated that there are certain limitations on our right to negotiate with the low bidder. He pointed out that we don' t have unlimited right to make changes and reduce and cut. He is not sure where we would draw the line. If changes are substantial , the courts would probably say that you would have to go out again for bids. 480 Item lld, Cont'd. Councilman Buffum and Kirkham feel that we should reject Section Three, and re-bid it. Conrad Staley stated that the site is a beautiful location, but it is a drastic effort in hauling dirt to build up the site. It has the irriga- tion ditch and Lynwood East, which drains on it. The entire site is a flood plain area. He does not think it can be done for any less than $800,000. He does not think we will ever get there with the type of ball park they want. Moved by Councilman Goff that we reconsider the motion, and reject Section Three. Motion seconded by Councilman Allred. Mr. Staley stated that if they are going to hold to the $800,000, they have to look at the sprinkler system. They also have to keep the building up. If they want to drop it all the way down, they could probably save money. Councilman Thomas stated that he has yet to see water out of the creek there. He asked if it would bring the price down considerably if we changed the buildings to concrete blocks? Mr. Staley replied that it would. If we can change the site work, then we don' t have to take as much out of the construction. He stated that we are going more for the four fields than we really need. Councilman Buffum noted that if we don't modify this, and bring it within our constraints, it won't exist. The motion to strike Section One, accept Section Two, and reject Section 3, was carried by the following vote. Ayes: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Walker, Kirkham and Buffum Nays: None Charles Harper, Mayor, appointed Councilmen Goff, Allred, and Kirkham to a committee to meet with the staff, and watch this very closely and in detail , so that we can get a bid that we can accept, end bring it back to the Council as soon as possible. Charles Harper, Mayor, turned the meeting over to Mayor Pro tem Thomas, because he had to leave for an appointment. Item 9f ORDINANCE NO. 21-87 MAKING AN APPROPRIATION FROM THE HOTEL/MOTEL FUND FOR THE PURPOSE OF CONTRUCTING A FOUR FIELD SOFTBALL COMPLEX Moved by Councilman Buffum that Ordinance No. 21-87 be passed. Motion seconded by Councilman Allred, and carried by the following vote. Ayes: Councilmen Goff, Thomas, Allred, Walker, Kirkham and Buffum Nays: None Item 12b Randle Forcher protested plotting fees for developers, stating that he is very much opposed to the fees now being charged. Councilmen Allred and Kirkham would like this to be brought back to the next meeting for consideration. 481 Item 12b, Cont'd. Roger McKinney stated that this was discussed at length in the proposed izoning amendment. Fees have not been increased in several years. Thev look at what is involved in the overall development scheme. Fees are calculated based on lots, and the other one is based on acreage. It appeared that the acreage would be the best way of determining fees for this. Councilman Thomas suggested that there might be a difference in those areas which only use our water, but are not engineered by us. Mr. McKinney stated that they could revise the fee structure, or grant an exception. Mr. Forcher stated that there have been twelve replats made since 1971 . He would not pay $33,000 to have this plotted. He stated fifteen million dollars of the economy comes into this city. Councilman Thomas noted that it will be on the next agenda. Robert K. Murphy, 101 Lakewood Drive, stated that Lucy Park is looking good. City Manager James Berzina stated that recently the City was the center of discussion of the possibility of havine a loss of money on bond re-financing. They are having a loss of money on bond re-financing. They are most concerned that there might be an opinion on the street that the City may have lost 1 .5 million dollars on it. He does not feel that way at all . The issue has been re-addressed, and he thinks it is an issue wwe need to look at and talk about. We need to broaden the discussion regarding management letter from the auditors where other areas need to be looked at. In ainy case, it is something our staff has looked at, and have responded to. He did not expect the Council to be ready to discuss it tonight. He feels it is important that there is an impression that we have lost money, and he does not think we have. There may be room to look at this. Murphy Davis, 2104 Avondale, with Herbert R. Smith, Inc. , stated that he had read the report Mr. Berzina referred to, and he is not in disagreement with what the report says. Mr. Davis stated that the refinancing is not a black and white issue. There were no less than seven schedules run. There is a present value cost, and those presented to the City were $2,000 to $3,000 more than what the auditors stated. The present value is stated as the value in today' s dollars of future cash flows in these issues. In making any present value cost analysis, it must be considered that it is at best a judgment call . In looking at the financing, and what was done, those are basically the reasons it was done, those are basically the reasons it was done. The present value factor can and will change. It could be higher or lower than one and one-half million. What the Council was really trying to accomplish was how to relieve some of the pressure on the citizens. He mentioned oil related industries and agriculture. At the time refinancing was done, they were having to address themselves to the fact that legislation before the house would have completely eliminated refunding. Any re-structur- ing of the debt could not have been done if it had not been done at that time. Because of non-arbitrage laws, they cannot buy open securities to take advantage of the drop in rates. A couple of things that have not been addressed is that in protecting the integrity of the rating of the City, that can be much more critical in saving dollars in future years. They created additional abilities for the City to do refinancing without raising the debt. The rating of the City is more intact now than if we had not done the refinancing. In looking at water rates and coverage factors, one of the critical things looked at is the fact that the coverage factors on the water system is a very important ingredient in maintaining a rating. Reducing the debt service means that the revenue is higher. The ability to do refunding is not black and white. The opinion of the Council , and he shared it wholeheartedly, is that it was a very worthwhile financing, and in the long run will be very beneficial to the City. All of these things were considered, and presented to the Council on a timely basis for them to make their decision. 482 Item 12b, Cont'd. Councilman Buffurn stated that he would make the same decision again. They were kept very well informed. Vernal Huffines, with Mathis, West, and Huffines, mentioned the contract which laid out work which they were hired by the City to do. It involved internal control and accounting procedures. He stated that the management letter was to be used by the Council for their use only, in executive session. The recommendations were for internal use only in executive session, as a part of their evaluations. There are some items they want to bring to management' s attention. The comments relate only to those areas in which they feel need to be improved. Councilman Thomas stated that he feels the report was misunderstood by some people. He is satisfied with the report. Mr. Huffines stated that in his personal opinion the issuance of refund- ing is blown way out of proportion. Councilman Buffum stated that they intended to handle this in executive session. He asked the City Attorney if we should be discussing this in public? He pointed out that we are only trying to do what is best for all parties concerned, City Attorney H. P. Hodge stated that he has a problem with it being a matter which is strictly for executive session, but if that is part of the contract, then maybe they would want to honor it. It was noted by Councilman Buffurn that some of these things are subjective, and should be discussed in private. Councilman Thomas stated that anythinc about employees should be addressed in private. The refunding system is another matter. Mr. Berzina stated that no one has a problem with the management letter being used as a tool to help us improve. Anytime there are recommendations that are viewed as advice, they may disagree on that. Any forum we can use to get to this matter, we should use. Mr. Huffines stated that the purpose of the management letter is to provoke the thinking of the people. They are just to keep them informed. If thev think action needs to be taken they will help implement it if they want them to. The only reason anything was said about bond refunding was because it was required. They were required to make certain disclosures in the audit report. He explained the reasons for this under accounting procedures. He discussed refunding for economic gains. It is an important factor in management ' s decision of whether or not to refund. They recommend that in any future refunding they place a greater emphasis on the total economic effect. There are a lot of reasons for Going refunding. They are qualified to compute economic loss. The bond firm is much more qualified to advise on refunding. It tells them exactly how to calculate it. He stated that they were required to make these calculations. They were in error if they had been misled in that they had been made. Mr. Werner stated that he did not have all of the present value runs. They were not all there in totality. Mr. Huffines stated that they would certainly have preferred not to disclose it, especially if they were not doing it according to their contract. All of the other items in the management letter are in the same vein. Randy Greenway did most of the work on site. Mr. Huffines stated that the contract, on Page 4, addresses the contract fee and renegotiation of increased time and costs. They did make the request. They did have to incur additional costs at the time which could not be foreseen. They would ask for redress of this, if possible. If it is not possible, they are taxpayers of Wichita Falls, and will understand. Councilman Thomas stated that he feels that they need to read the City Manager' s report. Councilman Buffurn noted that he appreciates this as recommendations only. Councilman Thomas feels that they made a wise decision in the refunding. These bonds cannot be issued now. We had an eleventh hour decision to make at that time. Councilman Walker explained that he has been working on economic develop- ment. He would like at some point in time to be able to utilize block grant money to attract more business, and update the economic conditions 483 ( Item l�r Cont'd. -, in o;T;:-- parts of the City. He mentioned that there is a seminar in Fort Wort on April 1 through 3, to get technical assistance. He would like for some people to go down there and take advantage of some of this informa- tioY Councilman Thomas stated that this is something we should be doing, -,at he dn(,, r,ot know how it could be funded at this time. Mr. Berzina stated that HUD ;)oks favorable at taking these funds as a partnership development. Councilman Walker stated that they will raise some money. Councilman Walker also mentioned the Bristol ditch, stating that it is time to aet out of the talking stage. Mr. Berzina stated that they would go this week to look at it. The City Council adjourned at 10:05 P.M. PASSED AND APPROVED this , 1, day Qf `( Y 1987. Charles Harper, Mayor ATTEST: Wilma J. Tho as, CMC, City Clerk