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Min 05/01/1979 173 Wichita Falls , Texas Memorial Auditorium Building May 1 , 1979 Items 1 & 2 The Board of Aldermen 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. Kenneth Hill Mayor Marvin Traywick John Hampton, Jr. Carol Russell Aldermen Curtis Smith Jim Thomas Raymond Adcock Gerald Fox City Manager H. P. Hodge, Jr. City Attorney Gerald Carlson Chief Accounting Officer Wilma J. Thomas City Clerk The invocation was given by S. M. Berliner, Gilbert Methodist Church. Item 3 Moved by Alderman Thomas that minutes of the meeting held April 17, 1979, be approved. Motion seconded by Alderman Russell , and carried unanimously. Items 4a - 7c Moved by Alderman Adcock that Items 4a through 7c on the consent agenda be approved. Motion seconded by Alderman Thomas. " Item 4a Bids were awarded as follows for irrigation materials for Lynwood East Park, Rosemont Cemetery, and Martin Luther King Center, for a total amount of $22 ,374.73. a. Amtex Company - PVC pipe and fittings , angle brass valves , and cement solvent. b. J. B. Holt - Remote control valves , wire, and valve box - $3 ,367.72 (less 2%) c. Telsco - Electric connectors - $28.05 (less 2%) d. Goldthwaites of Texas - Sprinkler heads and auto controller - $10,702.80 Ayes : Mayor Hill , Aldermen Traywick, Hampton, Russell , Smith, Thomas , and Adcock Nays : None Item 5a A proposed resolution was presented authorizing final payment to F & W Construction Company for concession stands at various parks . RESOLUTION NO. 2332 RESOLUTION ACCEPTING CONSTRUCTION OF CONCESSION STANDS AND RESTROOMS IN CERTAIN PARKS. WHEREAS, the City of Wichita Falls and F & W Construction Co. , as contractor, entered into a contract dated October 18, 1978, wherein said contractor agreed to construct a concession stand at TESCO Park, and combination restroom and concession 174 Item 5a, cont'd. stands at Hamilton and Spudder Parks ; and, WHEREAS, said construction has been completed in accordance with the plans and specifications; and, WHEREAS, the contract price for such construction was $93,447, of which $70,583 has been paid to the contractor, leaving a balance due of $22,864. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS, THAT: The construction of such concession stand and combination restroom and concession stands is accepted by the City of Wichita Falls, and the City Manager is directed to pay to the said contractor the balance due as shown above. Ayes : Mayor Hill , Aldermen Traywick, Hampton, Russell , Smith, Thomas , and Adcock Nays : None -`I tem 6a Authority was granted to advertise for bids for a spray pool at Weeks Park. Ayes : Mayor Hill , Aldermen Traywick, Hampton, Russell , Smith, Thomas, and Adcock Nays: None Item 7 Minutes of the meetings of the following boards and commissions were received. a. Traffic Commission - April 10, 1979. b. Reconstruction and Redevelopment Commission - April 18, 19, 23, 1979. c. Mayor's Commission on Status of Women - April 5, 1979. Ayes : Mayor Hill , Aldermen Traywick, Hampton, Russell , Smith, Thomas , and Adcock Nays : None Item 8a A public hearing was opened on hazardous structures. No one desired to be heard. V ORDINANCE NO. 3462 ORDINANCE CLOSING HEARING AND FINDING CERTAIN BUILDINGS AND/OR STRUCTURES TO BE DANGEROUS; COMMANDING PROPERTY OWNERS TO REPAIR, VACATE, OR DEMOLISH SAID BUILDING AND/OR STRUCTURES WITHIN THIRTY (30) DAYS OF THE DATE OF THIS ORDINANCE AND DECLARING AN EMERGENCY. Moved by Alderman Thomas that Ordinance No. 3462 be passed. Motion seconded by Alderman Smith, and carried by the following vote. Ayes : Mayor Hill , Aldermen ,Traywick, Hampton, Russell , Smith, Thomas , and Adcock Nays : None Item 9a Proposed ordinances were presented for a revenue estimate for Urban Mass Trans- portation grant contribution and making an appropriation for contributions to the transit fund. ORDINANCE NO. 3463 AN ORDINANCE MAKING A REVENUE ESTIMATE IN THE GENERAL FUND TO ACCOUNT NUMBER 11-000-3932, AND DECLARING AN EMERGENCY. Moved by Alderman Thomas that Ordinance No. 3463 be passed. Motion seconded by Alderman Traywick, and carried by the following vote. 175 Item 9a, cont'd. Ayes : Mayor Hill , Aldermen Traywick, Hampton, Russell , Smith, Thomas , and Adcock Nays : None ,,r'ORDINANCE NO. 3464 AN ORDINANCE MAKING AN APPROPRIATION FROM THE GENERAL FUND TO ACCOUNT NUMBER 11 -091-4643, AND DECLARING AN EMERGENCY. Moved by Alderman Thomas that Ordinance No. 3464 be passed. Motion seconded by Alderman Russell , and carried by the following vote. Ayes : Mayor Hill , Aldermen Traywick, Hampton, Russell , Smith, Thomas, and Adcock Nays: None Item 10a A proposed ordinance was presented establishing no parking zones on Production Boulevard. - ORDINANCE NO. 3465 AN ORDINANCE AMENDING PARAGRAPH (c) OF SECTION 29-114 OF THE CODE OF ORDINANCES OF THE CITY OF WICHITA FALLS, TEXAS, ESTABLISHING NO PARKING ZONES ON CERTAIN STREETS AND HIGHWAYS, AND DECLARING AN EMERGENCY . Moved by Alderman Smith that Ordinance No. 3465 be passed. Motion seconded by Alderman Adcock, and carried by the following vote. Ayes : Mayor Hill , Aldermen Traywick, Hampton, Russell , Smith, Thomas, and Adcock Nays: None Item 10b A proposed ordinance was presented establishing maximum speed limits on Airport Drive and Allendale Road. ` ORDINANCE NO. 3466 AN ORDINANCE AMENDING SECTION 29-91 OF THE CITY CODE OF ORDINANCES OF THE CITY OF WICHITA FALLS, TEXAS ESTABLISHING PRIMA FACIE MAXIMUM SPEED LIMITS ON CERTAIN STREETS WITHIN THE CORPORATE LIMITS OF THE CITY OF WICHITA FALLS, TEXAS, AND DECLARING AN EMERGENCY. Moved by Alderman Adcock that Ordinance No. 3466 be passed. Motion seconded by Alderman Russell , and carried by the following vote. Ayes : Mayor Hill , Aldermen Traywick, Hampton, Russell , Smith , Thomas, and Adcock Nays : None Item 1Oc A proposed ordinance was presented creating a disaster relief trust fund. The City Manager explained that the money will be distributed to relief agencies for distribution to needy individuals. "ORDINANCE NO. 3467 ORDINANCE CREATING THE CITY OF 14ICHITA FALLS DISASTER RELIEF TRUST FUND. Moved by Alderman Thomas that Ordinance No. 3467 be passed. Motion seconded by Alderman Russell . Mayor Hill noted that the citizens of Azle, Texas, had invited him to attend an auction, the proceeds of which would be donated to the City of Wichita Falls. The auction raised $4,165, and the national veterans organization stated that they would 176 Item 10c, cont'd. match it, so we are expecting over $8,000 from them. Alderman Thomas stated that he had received almost $1 ,000 from banks on which they write life insurance checks , and that he has already turned the money over to the Accounting Department. The motion was carried by the following vote. Ayes : Mayor Hill , Aldermen Traywick, Hampton, Russell , Smith, Thomas, and Adcock Nays : None Item 1Od A proposed ordinance was presented waiving a sign location for Sheppard Federal Credit Union. Ernest Lillard explained that the purpose of our sign ordinance is to protect site clearance at corners , but at this location both streets are one-way, and the traffic protection clearance is not needed at this intersection. ORDINANCE NO. 3468 ORDINANCE GRANTING WAIVER OF SIGN ORDINANCE (ORDINANCE NO. 3263) FOR SHEPPARD FEDERAL CREDIT UNION BRANCH OFFICE AT SOUTHWEST CORNER OF FOURTEENTH AND BROAD STREETS. Moved by Alderman Adcock that Resolution No. 3468 be passed. Motion seconded by Alderman Russell , and carried by the following vote. Ayes : Mayor Hill , Aldermen Traywick, Hampton, Russell , Smith, Thomas , and Adcock Nays : None Item 10e A request from City National Bank was presented for sidewalk construction alteration at their commercial walk-up facilities on Lamar Street. Alderman Thomas questioned the safety factor involved. Dick Higgins , of Wingler and Sharp Architects , acknowledged that they recognize the safety factors which the Council has been discussing, but feels that the planters which they intend to use will preclude someone from running into it. City Attorney H. P. Hodge, Jr. stated that he would not recommend the ordinance at all without the hold harmless clause in it. ORDINANCE NO. 3469 ORDINANCE GRANTING AUTHORITY TO THE CITY NATIONAL BANK TO CONSTRUCT CANOPY OVER THE SIDEWALK, AND A CONCRETE STOOP ON THE SIDEWALK, IN THE 800 BLOCK OF LAMAR STREET. Moved by Alderman Smith that Ordinance No. 3469 be passed. Motion seconded by Alderman Hampton, and carried by the following vote. Ayes : Mayor Hill , Aldermen Traywick, Hampton, Russell , Smith, Thomas , and Adcock Nays : None Item 10f A proposed ordinance was presented extending the state of emergency for seven days. A motion was made by Alderman Thomas and seconded by Alderman Adcock that the ordinance be passed. Following discussion on looting, an amendment was offered. Moved by Alderman Traywick that the ordinance be amended to also impose the curfew from 12:00 P.M. to 6:00 A.M. in the residential areas of the disaster area. Motion seconded by Alderman Thomas, and carried by the following vote. Ayes : Mayor Hill , Aldermen Traywick, Russell , Smite, Thomas , and Adcock. Nays : Alderman Hampton 177 Item 10f, cont'd. ORDINANCE NO. 3470 ORDINANCE EXTENDING STATE OF DISASTER EMERGENCY FOR SEVEN DAYS, AND REGULATING BEING OR REMAINING IN CERTAIN AREAS AT CERTAIN TIMES. The motion for passage of Ordinance No. 3470, as amended, was carried by the following vote. Ayes : Mayor Hill , Aldermen Traywick, Hampton, Russell , Smith, Thomas, and Adcock Nays : None em lOg A proposed ordinance was presented authorizing placement of mobile homes on dead-end streets. J ORDINANCE NO. 3471 ORDINANCE AUTHORIZING CITY MANAGER TO ALLOW TEMPORARY PLACEMENT OF MOBILE HOMES ON STREET RIGHT-OF-WAY ON CERTAIN DEAD END STREETS. Moved by Alderman Thomas that Ordinance No. 3471 be passed. Motion seconded by Alderman Russell , and carried by the following vote. Ayes : Mayor Hill , Aldermen Traywick, Hampton, Russell , Smith, Thomas , and Adcock Nays : None Alderman Smith inquired if the federal government has given us any relief on mobile homes in the flood plain? The City Manager stated that in a meeting last Friday they noted that if the floor of the mobile home is above the flood plain, they would consider locating homes in these areas. Ernest Lillard stated there is not a lot in the disaster area, which if applied to federal insurance agency rules , would prohibit placing a mobile home in those areas. v Item Ila A proposed resolution was presented approving consultant for water rate making study. v'RESOLUTION NO. 2333 RESOLUTION APPROVING CONTRACT WITH JOE NALL & ASSOCIATES FOR DESIGN OF A RATE-MAKING SYSTEM FOR WATER SERVICES. BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS, THAT: A contract with Joe Nall & Associates , based on the attached proposal , for the design, preparation and development of a water rate-making system is hereby approved, and the City Manager is authorized to execute such contract with Joe Nall & Associates. Moved by Alderman Thomas that Resolution No. 2333 be passed. Motion seconded by Alderman Adcock. Alderman Thomas inquired if there is any way to share these costs with other entities? The City Manager stated that the cost of this rate study should be included in the base rate costs. Other questions concerning this study were answered. The motion was carried by the following vote. Ayes : Mayor Hill , Aldermen Traywick, Hampton, Russell , Smith, Thomas , and Adcock Nays : None Item llb A proposed resolution was presented approving appraisals of property for Harding Street right-of-way. 178 Item llb, cont'd. RESOLUTION NO. 2334 RESOLUTION APPROVING THE APPRAISALS OF PROPERTIES FOR THE 1977 COMMUNITY DEVELOPMENT PAVING PROGRAM AND AUTHORIZING THEIR PURCHASE OR CONDEMNATION. WHEREAS, it is necessary to acquire the properties hereinafter described for construction of the 1977 Community Development Paving Program, and, WHEREAS, such properties have been appraised by an appraiser employed by the City of Wichita Falls and the amounts of the values as determined from the appraisals have been studied by the Board of Aldermen, and copies are now in the possession of the Director of Public Works and/or Assistant City Manager. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS, THAT: Section No. 1 The project and properties to be purchased by Warranty Deed are as follows : 1977 Community Development Paving Program 0.021 acre out of West 4.417 acres of N.E. 1/4 of Block 9, Sayles Irrigation S/D of J. A. Scott Survey No. 13, Abstract No. 303 Wichita County, Texas. 0.162 acre out of East 4.417 acres of N.E. 1/4 of Block 9, Sayles Irrigation S/D of J.A. Scott Survey No. 13, Abstract No. 303 Wichita County, Texas. Total values approved in this resolution----- -----------------$4,350.00 Section No. 2 The values of such properties are hereby approved and the City Manager is hereby authorized to purchase in the name of the City of Wichita Falls , by Warranty Deed such tracts of land as are shown on the project right-of-way map. The authorized price to be paid for such tracts are the values as determined from the appraisals made by the real estate appraiser employed by the City of Wichita Falls . Section No. 3 In the event the City Manager is unable to purchase any such tract for such approved value, he is hereby authorized and directed to cause to be instituted condemnation proceedings to obtain such tract in the name of the City of Wichita Falls. Moved by Alderman Russell that Resolution No. 2334 be passed. Motion seconded by Alderman Adcock, and carried by the following vote. Ayes : Mayor Hill , Aldermen Traywick, Hampton, Russell , Smith, Thomas , and Adcock Nays : None Item 12a (award of bid for oil and gas leases) was postponed. Item 13a Permission was requested to advertise for bids for city depository contract from October 1 , 1979 through September 30, 1981 . Moved by Alderman Thomas that authority be granted to advertise for bids as requested. Motion seconded by Alderman Russell , and carried unanimously. Item 14a Permission was requested to expand travers tandem parallel parking in the central business district. Ed Ilschner recommended that it be placed throughout the downtown area except on Indiana Street where they have flat angle parking. He stated there is 179 Item 14a, cont'd. ample off street parking in the downtown area which is not being utilized. J. C. Boyd red in favor of this method of parking. appeared Moved by Alderman Thomas that continuation of travers tandem parking be authorized in the downtown area. Motion seconded by Alderman Russell , and carried unanimously. Item 14b The Board of Aldermen went into executive session at 10:25 A.M. to discuss personnel matters. They re-convened at 10:50 A.M. Moved by Alderman Russell that the following two-year term appointments be made to the Mayor's Commission on the Status of Women: a. Barbara Glickman - reappointed b. Olivia Palacios - reappointed c. Vernodene Huckaby - reappointed d. Corty Sutton - reappointed e. Marie V. Jones f. Joi Ann Garrett g. Mary Jo Gruca h. Ruth Waller Motion seconded by Alderman Adcock, and carried unanimously. Moved by Alderman Russell that the staff be instructed to prepare a resolution changing the appointment period from April to September, and providing for appointment of an ex officio member. Motion seconded by Alderman Traywick, and carried unanimously. Moved by Alderman Hampton that David W. Murray be appointed to the Arts Commission to replace John W. Hampton, Jr. for an unexpired term until April 1980. Motion seconded by Alderman Smith, and carried unanimously. ✓Item 14c Moved by Alderman Thomas that the following Board of Aldermen liasion appointments to various boards and commissions be approved. 1 . Mayor Pro tem - Alderman Smith 2. Nortex Executive Committee - Mayor Hill and Alderman Russell 3. Nortex General Membership Committee - Aldermen Smith , Thomas, and Adcock 4. City-County Hospital Board - Alderman Traywick 5. Mayor's Commission on Status of Women - Alderman Hampton 6. Airport Advisory Board - Alderman Traywick 7. Charter Commission - Alderman Thomas 8. Park Board - Alderman Smith 9. Mental Health-Mental Retardation Board of Trustees - Alderman Traywick 10. Traffic Commission - Alderman Adcock 11 . Planning Board - Alderman Adcock 12. Policy Committee on Urban Transportation Plan - Alderman Thomas 13. Design Review Commission - Alderman Russell 14. Wichita Falls Arts Commission - Alderman Hampton Motion seconded by Alderman Hampton, and carried unanimously. Item 14d A proposed resolution was presented designating Mental Health Mental Retardation Center as coordinating agency for psychological planning and program implementation. RESOLUTION NO. 2335 DESIGNATING WICHITA FALLS COMMUNITY MENTAL HEALTH-MENTAL RETARDATION CENTER 180 Item 14d, cont'd. AS COORDINATING AGENCY FOR DISASTER PSYCHOLOGICAL PLANNING AND PROGRAM IMPLEMENTATION. WHEREAS, due to the numerous community agencies identifying an interest in the emotional and psychological needs of the community following the tornado; and, WHEREAS, due to the limited availability of manpower in the mental health area; and, WHEREAS, due to the variety of need and agency programming; and, WHEREAS, due to the need for a coordinated approach to the psychological needs of the community; and, WHEREAS, the Wichita Falls Community Mental Health-Mental Retardation Center is a City/County agency. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS, THAT: The Board of Aldermen requests the Board of Trustees of the Wichita Falls Community Mental Health Mental Retardation Center to invite community agencies to participate in voluntary collaboration to develop a plan, with the Center acting as a coordinating agency; and, That such plan be submitted through the Federal Disaster Assistance Agency to the National Institute of Mental Health as an application for funds to execute the plan in behalf of identified needs of the community. The purpose of the action is for coordinating purposes only and does not carry with it any fiscal note. Moved by Alderman Thomas that Resolution No. 2335 be passed. Motion seconded by Alderman Russell , and carried by the followina vote. Ayes : Mayor Hill , Aldermen Traywick, Hampton, Russell , Smith, Thomas, and Adcock Nays : None Discussion was held on funding alternatives for group sites for mobile home temporary housing. The City Manager explained that the land for mobile home parks would be either public owned or privately owned leased land for a period not to exceed 18 months. At least 250 units will be needed, and possibly as many as 2000. The County has indicated that they will pick up some of the cost, but no definite stated amount yet. Jesse Ward, State Disaster Coordinator, stated that this project was not in existence when the tornado hit Lubbock. The pads which they have constructed in the past have cost an average of $1 ,015 per pad. Inflation will raise it to $1 ,500 per pad. The work done by the Highway Department in building roads and pads is about one-third of the total cost. So far, this disaster has cost the State $2,000,000 either spent or obligated. The Governor is trying to get more money to assist here. They will use every available tool they have to place mobile homes on lots within the City. He suggested that we contract the utility work and split the cost three ways. He asked the City to pay 1/3 of the bottom line. The other 2/3 will be guaranteed by the State, and they will get whatever they can out of the County. He feels $80,000 will be needed by the City for the first 239 pads. Their requirements have dropped 400 in the past ten days because people are working day and night and getting roofs on. He would like the City to let the contracts on utilities. The City Manager suggested that the Council set a maximum on what the City can pay, and let the Governor know. Mr. Ward stated that he feels we are delaying the process by asking the federal government to take it over. He does not believe the Governor would write the letter, and does not believe the federal government would approve it. Moved by Alderman Thomas that expenditure of 25 percent of the utility contract cost be authorized up to a maximum of $200,000 for both City and County. Motion seconded by Alderman Adcock, and carried unanimously. 181 Charles Harper read a resolution of commendation to the City Manager from the Reconstruction and Redevelopment Commission, noting that in honoring him they also honor his staff. RESOLUTION WHEREAS, City Manager Gerald Fox has provided an unsurpassed dedication and effective leadership to all persons in Wichita Falls since the tornado of April 10, 1979; And WHEREAS, the general public needs to know the untold hours of his service, and the skill used in his efforts on their behalf; And WHEREAS, the Wichita Falls Reconstruction & Redevelopment Commission has worked closely with Mr. Fox in such efforts, and is aware of his service; NOW THEREFORE, such Commission by unanimous action hereby resolves that Gerald Fox be accorded the HIGHEST POSSIBLE COMMENDATION for his service, and requests the Board of Aldermen of the City of Wichita Falls to make public this resolution, and that it be spread upon the minutes of such Board of Aldermen as a permanent record. Moved by Alderman Smith that the resolution be approved. Motion seconded by Alderman Adcock, and carried by a standing vote of the entire Board of Aldermen. Alderman Adcock noted that all the staff has gone the second, third, and fourth mile. Mayor Hill commented that WBAP in Fort Worth would like to donate some western swing time to the City, and they want an outside area. The City Manager stated that Lone Star Gas Company has withdrawn their request for a rate increase at this time. The Board of Aldermen adjourned at 11 :50 A.M. PASSED AND APPROVED this .' day of cc 1979. ATTEST: �'';�.�•„/� ��, `� ,�/t.,!i a cam.�- CITY CLERK i a;4 ..4 s's •, t.-tr. a ;Y JOE M. NALL AND ASSOCIATES, INC. { Consulting Engineers' h V g MUNICIPALITY WORK ORDER I . DATE April 25, 1979 a 7 ka - wCLIENT 'u City of Wichita Falls, Texas �' � � ' Mr. Gera d G. Fox,. City Manager ADDRESS P. 0. Box 1431 ~z� 5 r � Wichita Falls, Texas 76307 PROJECTS S ,Development of Rate Making System JMN Job No 07-79-WC ., and Property Record -.SCOPE',,*OF SCOPE,OF SERVICES ' To provide expert assistance to theCity of Wichita Falls in analyzing the Water ;Operations'for the determination of the service cost, the recommendations for adequate kt rates o'recover the cost by function, the development of a continuing rate making ;'system, and ;the :finding of plant survivors by account. . , These services are to be provided at the direction of the City Manager and shall '' � 'include, but not be limited to: Analyses of the Water Plant investment and operations � for`the determination of the proper adjusted value rate-base, rate structure, revenue requ irements, revenueL,expectations,` operating'expenses, allocation of expenses, return of investment, and capital requirement for water services furnished to the ," Wichita Falls consumers x µtF The Consultinng 'Enggineer's findings `and recommendations shall be set forth in a .written letter-type re ort'with organized data to the City of Wichita Falls within a F " -r'reasonable`period of time, not to exceed eight months after all necessary underlying w records, documents and other information have been reviewed, and the .Plant• inventoried . '-and/or:simulated by'the Consultant- BILLING ANDACCOUNTING•DATA: ` For services rendered, the Client shall pay Joe M. Nall and Associates, 'Inc Consulting Engineers, upon submission of monthly' invoices, an amount equal to the rim actual hours"of services furnished multiplied by the product of the Consulting Engineer's stablishedhourly salary cost, this expense shall come from current revenue or. from. taxes• whichthe municipality agrees to- levy for the purpose: of paying the same.`, , � In addition, the Client shall reimburse the Consulting Engineer each month at b cost"'for all .out-of.-pocket" expenses directly chargeable to _the work.';. The service billings of the Consulting Engineer will ' be restricted to'a' ' = maximum of:"$80,205 00 APPROVED FORCity of` Wichita Falls APPROVED FOR: Joe M. Nall & Associates, Inc. T i By K•� tle: President c Date: ' r � r APR 25 1979 F. PROJECT COST Our Property Record Development and Rate leaking System Development Proposal addresses itself to several specific areas of determination, and the amount of Consultant 's fee associated to each of the areas include : 1. Inspect and verify the installation dates and unit costs of property in the central plant (reservoir, trans- mission , and treatment ) . $20,16 0. 2. Arrange central plant data for extension and cost ,trending on a continuing basis (CPR) . 5 775. 3. From plant balances and additions records, simulate the distribution plant by account to determine the properties ' expected life, average age vintage year, and surviving cost • $ L2,000. 4. By statistical sampling approach, inspect and verify the survivors of the simulated property of the distribution plant . $10,250 . 5. Arrange distribution plant data for extension and cost trending for future revenue deficiency determination. $5, 775. 6. Examine and assess the operation, maintenance, and general expenses directly assigned or allocated to the reservoir cost , transmission cost , purification cost , and distribution cost . $7,850. 7. Evaluate and ensure that total rate of return is between floor and ceiling for monetary return. $925. 8. Determine the theoretical reserve for depreciation and evaluate the expected life of each depreciation account.$3, 100. 9. Review the water consumption habits of the consumers by class and determine their cost of service at each functional stage. $3, 975. 10. Prepare the rate making system data for the revenue deficiency determination on a continuing cost basis. $3, 100. 11. Develop a rate structure comparison to clearly define the commodity and capacity charges based on the generally accepted current use maximum day average demand with customer peak hour demand irreSpecLive of the time of day, and show the effects of combining the rate for maximum day and rate for peak excess and the effects of reservoir charge based on future demand. $3, 475. - 11 - AHN 25 1979 12. (As an alternate to No. 1 . ) From plant balances and additions records simulate the central plant by account to determine the properties ' expected life, average age, vintage year and surviving cost , and by statistical sampling approach, inspect and verify the survivors of the simulated property of the central plant . $10, 150. 13. (As an alternate to No. 2. ) Arrange the central plant simulated data for extension and cost trending for future revenue deficiency determination. $3, 925. The following is a breakdown of project costs by Consultant level : Percent of Dollars Days Total Time (Base) (Alternate) Principal Engineer 29.6 8.2 $10, 360 $10, 360 Project Supervisor/ Data Manager 32. 8 9. 0 10, 332 14, 550 Examiner/Accountant 66. 0 18.2 18, 480 23,100 Staff Engineer/Analyst 105. 6 29. 2 18, 430 11 ,430 Engineering Technician 75. 7 20. 9 9,543 5,085 Surveying/Drafting 52. 8 14. 5 9,240 - 362. 5 100. 0 $76, 385 $64,525 Estimate of directly chargeable expenses - $ 3,820 $ 3,225 TOTALS $80,205 $67,750 - 12 - z PROPOSAL FOR THE PREPARATION AND DEVELOPMENT OF A RATE MAKING SYSTEM WITH THE IDENTIFICATION OF THE PLANT INVESTMENT FOR THE WATER OPERATION WICHITA FALLS, TEXAS A�P� Z 5 19�9 April 23, 1979 JOE M. NALL AND ASSOCIATES, INC. 2920 Lemmon Avenue East Dallas, Texas 75204 P TABLE OF CONTENTS Page A. STUDY OBJECTIVES 1 B. STUDY APPROACH 1 - 3 C. PROJECT ORGANIZATION 3 - 7 D. QUALIFICATIONS 8 - 9 E. PROJECT WORK SCHEDULE 10 F. PROJECT COST 11 - 12 r i A. STUDY OBJECTIVES This Water Rate Making and Property Identification Proposal has been developed to address several specific areas believed necessary to support the City 's directive. These areas include : 1. Preparation and development of a rate making system which would have acceptable rate making features into which the City could plug data annually to determine what are the proper rates for revenue requirements of the Water System. 2. Determination of the proper rates to be charged for both raw and treated water for 1979-80. 3. Identification of the Water Plant in service and its related cost. 4. Analyzing rate structures for future capacity require- ments. B. STUDY APPROACH The rate making system to be installed and methodology is discussed in the following paragraphs: 1. Operation Capital Requirements , Operating Expenses, and Adjusted Valuation of Invested Capital. A financial need objective of Wichita Falls Water Operation will be first determined and then gauged by the Fair Return Standard of the 1975 Public Utility Act . We propose to follow the usual practice in the rate determination process to equate total revenue with total cost of service plus any added return required in finance coverage and stipulated percentage return on equity. Plans. :; imulit:ion i ,-� :i c istoma.r,y approach to plant valuation in the absence of a continuing property record. We propose to develop a continuing record of the reservoir, transmission and purification plant and a simulated property record of the distribution plant. Identification of the plant and confirmation of the plant records will be performed by a statisti- cal sample approach. The weighting given to current and original cost can be held to the minimum 25/75 weight with no argument . The 32. 5/67. 5 weighting has been acceptable as a - 1 - mid point of compromise. We would propose a 40% weighting to current cost until the new reservoir is placed in service, as the system will be opera- ting at maximum capacity. 2. Revenue Expectations, Revenue Requirements and Alloca- tion of Expenses We consider it necessary that investment , revenues and expenses be representative of normal operations , so that the rates we develop are appropriate for application in the immediate future. Our cost of service study will be so premised. The Wichita Falls Water Operation property, engineering, customer accounting, and other records are basic sources from which the data utilized in our cost of service study is extracted. The costs that are distributed to the various classes of service will be the costs used in determining the operation 's overall earnings position. Such cost will be adjusted to present normal operating condi- tions as accurately as possible. Any abnormalities will. be distributed to the various classes of service in the proper propor- tions. It should be recognized that our results are not absolute, but indicate the relative earnings positions of the different rate classes. The costs that we distribute to the various classes of service will be directly related to Wichita Falls ' overall earnings position rather than unadjusted costs. The demands of the various rate classes and their interrelationship with total system demand is determined. Time restraints normally dictate that our approach be that of estimating the demands based on consumption. by rate class. In our der i v-a[ i ran WO (,slt im;rto d lord I'actors ohl ;iined in previous load studies from Wichita Falls. ~ 3. Return on Investment The "rate of return" can be held to a weighted percentage level on that portion of plant where the debt is not yet retired for which money has cost the City, and on the remainder of the invest- ment in plant for which new money can cost the City. This way of determining "rate of return" is designed to avoid taking inflation into account in any way other than property valuation. 2 - 4. Rate Structures We have proposed to follow the usual practice in the rate determination process to equate total revenue with total cost of service plus the added return stipulated on equity and required in finance coverage. This full cost pricing concept encourages the development of rates that track the average total cost of water supply. Recent attempts in rate design by our State Commission have been to shift to commodity charges a greater proportion of capacity charges. This was done to increase customer awareness of actual cost implications of their patterns of consumption. But historical average costs are the basis of the Commission 's rates , and capacity charges are generally related to a customer's own maximum demand irrespective of its relation to the time of the system peak. This means , they have not and we have not abandoned a cost-of-service standard for pricing utility rates and have not transferred to another standard of cost pricing. The election of an acceptable rate design that is consistent with the standards of the industry should be the prerogative of the Water Utility. A two part (volume - capacity) rate based on the average and excess demand is generally accepted. Our three primary objectives in rate design are (a) the financial need objective; (b) the fair- cost apportionment objective ; and (c) the optimum- use objective. We propose to follow these objectives. C. PROJECT ORGANIZATION Over the past eight years we have developed extensive computer mechanized capability. The successful field applications of our programs are directly attributable to the quality of staff in our organization. In addition to our Principal Engineer, this staff includes : Mr. Seth Stephens , graduate accountant and Past President of the Dallas Chapter of Data Processing Management Association ; Mr. David Lyndon , graduate Electrical Engineer, with training in Cost Studies and Analytical Analysis; Mr. Phil E. Fox, CPA, experienced private and municipal controller of utility accounting; and other qualified personnel as needed. We propose to start this Water Utility Plant Identifica- tion and Rate Making System Development assignment immediately. We will set forth our tentative findings and recommendations in both oral and written reports to the City Manager by December 31, 1979. 3 - JOE M. NALL PRESIDENT AND PROJECT MANAGER Education : University of Texas, BS , Civil Engineering, 1951 Registered Professional Engineer , State of Texas Professional Experience: 1970 to Present Joe M. Nall and Associates , Inc. Consulting Engineer in transportation planning, engineering, data management , and analytical services for communtities , utilities and regulatory commissions. Specializes in utility rate services and utility rate consultation . 1958 to 1970 City of Dallas, Texas Supervisor of Public Utilities , in charge of administrative coordination and development of facts to support his role as principal regulatory agent for the City of Dallas as related to transit service, taxicab and limousine service, gas transmission , gas distribution , electric distri- bution , and telephone. 1951 to 1958 Phillips Petroleum Company Design Engineer Other Professional Activities : Staff assistant and Lecturer, Public Utility Economics Course , Southern Methodist University. Contributor to Material , Association of Railroad and Utility Commissioners course, University of Wisconsin. Supervised the preparation , and presented award winning paper on Marginal Cost Pricing to Utility Valuation and Rate-Making Con- ference, Iowa State University. - 4 - SETH STEPHENS VICE PRESIDENT AND PROJECT SUPERVISOR Education: University of Texas at Arlington , Bachelor of Business Administration in Accounting, 1961 Professional Experience: 1971 to Present Joe M. Nall and Associates, Inc. Development of new data processing applications to meet requirements of local government , with emphasis on providing accounting and data processing connected with utility rate analysis and cost of service studies. 1952 to 1971 City of Dallas, Texas Systems Analyst , Programming Supervisor , . Operations supervisor , Systems and Programming Manager and Data Base Manager , EDP Division of City Auditor ' s Office. Developed computerized systems in the areas of real estate and personal property taxes , water utility customer service and billing, municipal court dockets and records, public health programs , city election vote counts , police incident and arrest applications. Project Director in the development and implementation of the police information system presently used by Dallas Police Department . Other Professional Activities : City of Dallas representative to Metropolitan Symposium Seminar at . San Jose , California and Poughkeepsie , New York at which he had papers published on local government data processing. Member of Curriculum Election Committee for the Bachelor of Computer Systems Management degree , Dallas B.iptist College. 5 - DAVID K. LYNDON ASSOCIATE ENGINEER Education : Massachusetts Institute of Technology , Bachelor of Science in Electrical Engineering, 1978 Professional Experience : 1978 to Present Joe M. Nall and Associates , Inc. Conduction of property valuation studies of telephone toll facilities and electric distri- bution facilities. Evaluation of utility service costs for electric and gas operations. Design of utility rate structures. Technical Experience : 1974 to 1978 Massachusetts Institute of Technology and Joe M. Nall and Associates , Inc . Completed undergraduate degree in June 1978 and has been accepted in the engineering graduate program. First employed as technician in con- sulting engineering in summer of 1974, advancing each summer to a more responsible assignment in scry i cc q" I i ty mcys"rrmon t, or communication networks , of gas distribution systems and of electric transmission systems. Also participated in utility plant location mapping by mechanical plotter. Coordinated the data accumulation and inventory for the continuing record of gas distribution system. Other Professional Activities : M Completed the Engineer in Training examination for Professional Registration and preparing for the Professional Engineering examination . Member of Eta Kappa Nu, Honorary Electrical Engineering Society. 6 - PHILIP E. FOX SENIOR EXAMINER Education : Southern Methodist University , BBA in Accounting Certified Public Accountant , State of Texas, since 1957 Professional Experience: 1976 to Joe M. Nall and Associates, Inc. Present Examination of utility accounting records and the develop- ment of information to meet current regulatory requirements , with emphasis on providing data connected with utility rate analysis and cost of service studies. 1973 to Transit Management Corporation 1976 Served one year as Director of Finance for Citran, the transit system of Fort Worth, Texas , and two years as Director of Finance for the Kansas City Area Transit Authority. Instigated the new chart of accounts for transit in Kansas City and placed it on computer. 1964 to City of Dallas Transit System 1973 Continuous service as Comptroller, charged with super- vision of the financial and accounting functions of the system. 1935 to Dallas Railway & Terminal Company 1964 (Later becoming Dallas Transit Company) Reorganization events occurring during his business office tenure included a holding company dissolution and a private utility conversion to a municipal operation , working at a variety of business assignments until being charged with total supervision of all financial and accounting matters. Other Professional Activities : One of the original 20 members of the Urban Mass Transportation Committee that established the Mandated Chart of Accounts (Financial Accounting Reporting Elements) . Past Director of the Dallas Chapter of Certified Public Accountants and Past President of the Texas Central Credit Union. 7 - D. QUALIFICATIONS Joe M. Nall and Associates, Inc. , located at 2920 Lemmon Avenue East , Dallas, Texas, 75204, is a Texas Corporation with headquarters and offices in Dallas. Engineering and data processing personnel employed by the firm have experience in transportation planning, engineer- ing, analytical services, and information systems develop- ment. The firm is specially adept in providing utility rate consultation, having conducted numerous studies of utility rates and services for Texas cities and having served as consultant to the Arkansas Public Service Commission in a major gas utility rate matter. In addition , the senior officer of the company has direct experience as a regulatory agent in Texas. Since its organization in 1970, the firm has developed computer mechanized capability for utility plant aging and pricing analysis with succesful field appli- cation. The firm has knowledge in property valuation, regulatory law and cost of money and has testified relative to these matters before various regulatory bodies. Over the past eight years , Joe M. Nall and Associates , Inc. , has been actively engaged in utility rate work, which includes: rate analysis, rate design, determination of revenue require- ments, load analysis, load research, and cost analysis. Services include: work for electric, gas, telephone, and water utilities and their customers. We have been involved in the development of techniques used by professional rate consultants throughout the country , a notable one being the development of plant survivors when a continuing property record is unavailable. The members of our permanent staff have a long history of active involvement in local professional associations and civic affairs, such as; Data Processing Management Associa- tion, National Society of Professional Engineers , National Association of Accountants, and Dallas Chamber of Commerce. We are active participants in the Public Utility Valuation and Rate Making Conference held each year at Iowa State Un i v(•r•:c i Ly , l,lw Rol;u I :r.Lory 1 n for tu:rLlun SysLums Conference conducted by the Missouri Public Service Commission , and the Annual Rate Symposium on Problems of the Regulated Industries, also sponsored by the Missouri Public Service Commission. In summary, the firm of Joe M. Nall and Associates , Inc. , can provide services to the City Manager, City of Wichita Falls, in developing a system for analyzing the cost of water service and determining the rates for these services. Unit cost records can be established on the plant in service and date of activation. Only the central plant , including reservoir, transmission and treatment , is recommended for 8 - r the continuing property record. The distribution plant costs and vintages will be determined by plant simulation method. Our services will be performed in a professional and ethical manner, and we can work under the City 's direction. We emphasize our staff ' s complete and well- rounded experience in the engineering and accounting disciplines specifically related to the study of utility service cost and rates in Texas cities. We have per- formed analytical work for other utilities in Texas, and we are currently conducting a cost of service study and review of the water rates proposed for the Customer Cities of Dallas Water Utilities. 9 - f E. PROJECT WORK SCHEDULE : 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 2 1 3 P-- 5 , U � 2 —ate n r � 1 3 ~ 2 f 4 1 1 4 r 3 5 F 4 6 4 7 8 9 5 10 ► 11 �� 12 4 13 � Legend: 1 . Principal Engineer (39. 6 Man Days) 2. Project Supervisor/Data Manager (52. 8 Man Days) 3. Engineer/Analyst (105. 6 Man Days) 4 . Examiner (69. 3 Man Days ) 5. Technician (92. 4 Man Days) 6. Surveying;/Drafting; (52 . 8 Man Days) - 10 - r 2 5 1979 F. PROJECT COST Our Property Record Development and Rate Making System Development Proposal addresses itself to several specific areas of determination, and the amount of Consultant 's fee associated to each of the areas include : 1 . Inspect and verify the installation dates and unit costs of property in the central plant (reservoir, trans- mission, and treatment ) . $20,160. 2. Arrange central plant data for extension and cost trending on a continuing basis (CPR) . $ 5 , 775. 3. From plant balances and additions records, simulate the distribution plant by account to determine the properties ' expected life, average age vintage year, and surviving cost . $12, 000. 4. By statistical sampling approach, inspect and verily the survivors of the simulated property of the distribution plant . $10,250 . 5. Arrange distribution plant data for extension and cost trending for future revenue deficiency determination. $5, 775. 6. Examine and assess the operation, maintenance, and general expenses directly assigned or allocated to the reservoir cost , transmission cost , purification cost , and distribution cost . $7, 850. 7. Evaluate and ensure that total rate of return is between floor and ceiling for monetary return. $925. 8. Determine the theoretical reserve for depreciation and evaluate the expected life of each depreciation account.$3, 100. 9. Review the water consumption habits of the consumers by class and determine their cost of service at each functional stage. $3, 975. 10. Prepare the rate making system data for the revenue deficiency determination on a continuing cost basis. $3, 100. 11. Develop a rate structure comparison to clearly define the commodity and capacity charges based on the generally accepted current use maximum day average demand with customer peak hour demand irrespective of the time of day , and show the effects of combining the rate for maximum day and rate for peak excess and the effects of reservoir charge based on future demand. $3, 475. - 11 - f APR 2 5 109 12. (As an alternate to No. 1 . ) From plant balances and additions records simulate the central plant by account to determine the properties ' expected life, average age, vintage year and surviving cost , and by statistical sampling approach, inspect and verify the survivors of the simulated property of the central plant. $10,150. 13. (As an alternate to No. 2. ) Arrange the central plant simulated data for extension and cost trending for future revenue deficiency determination. $3, 925. The following is a breakdown of project costs by Consultant level : Percent of Dollars Days Total Time (Base) (Alternate) Principal Engineer 29.6 8. 2 $10, 360 $10, 360 Project Supervisor/ Data Manager 32. 8 9. 0 10, 332 14, 550 Examiner/Accountant 66. 0 18.2 18, 480 23, 100 Staff Engineer/Analyst 105. 6 29. 2 18, 430 11 ,430 Engineering Technician 75. 7 20. 9 9,543 5,085 Surveying/Drafting 52. 8 14 . 5 9, 240 - 362. 5 100. 0 $76, 385 $64,525 Estimate of directly chargeable expenses - $ 3,820 $ 3,225 TOTALS $80,205 $67,750 12 - � p III` J0 E M. A N L� LAND _ASSOC IATES, . S INC: Consulting Engineers MUNICIPALITY WORK ORDER' y i , l r�yDATE. �- Apr71- 25, 1979 L CLIENT �City of Wichita Falls, Texas `s ° Mr Gerald G'. Fox, City Manager ' t.3�' # X yy 4' 0. Box 1431 Wichita Falls, .Texas 176307 �._ t PROJECT, ,�1 Dever ry x of ment of Rate Making System JMN Job^ No UI 79 WC -K 'F4 ` ��: "an Property Record max d;Ns tt '-r s OF.P.SERVICES N k . f f of b y ` s SCOPE a T provide 0 vide expert eta p assistance to the e City of Wichita Falls in analyzing the Water `', ' Operations for the determination of the `service cost, the recommendations for adequate rates"'to recover the cost by function, the'development of a continuing 'rate making -. system, and the _f nding; of'plant survivors by ,account °. * ' These services' are to be provided at the direction of the City Manager and shall ;` include'but not be limited to: Analyses of the Water Plant investment and operations a� for the determination of the proper adjusted value rate base rate; structure, revenue v requirements , ''revenue' expectations operating. expenses,- allocation of expenses, �4 ' ',;M' return' of investment,'and capital requirement. for water. ,services furnished to the z Wichita' Falls consumers r 7,X,. � ',consumers,.,,,..— := : ,. The Consulting Engineer's findings and recommendations shall be '`set forth in a 'written letter-type report.,with organized data to the City of Wichita Falls within a 'reasonable period of time, not to exceed eight months after all necessary underlying records,"•documents"and 'other'"information -have been, reviewed, and Plant,inventoried and/or',simulated 'by the-'.Consultant L h� BILLING AND ACCOUNTING'DATA r For services!'rendered, the Client shall pay Joe M. Nall and Associates, Inc :f _, 'Consulting Engineers;' upon submission of monthly invoices , an amount equal to the ' actual hours of `services furnished multiplied by the product of the Consulting Engineer's r ",. established hourly' salary 'cost, this expense shall come from current revenue orfrom f taxes 'which:the municipality agrees'. to .levy for the purpose of paying the same.;` r. w , ` y In addition,' the Client shall reimburse the Consulting Engineer:each month at cost .for all out-of-pocket expenses directly chargeable .to. the work. The service billings of the `Consulting Engineer will ' be restricted to a maximum of $80,205 00. ti== APPROVED FOR:..` City of Wichita Fa11s - APPROVED' FOR ,':Joe M. Na11 :&,Associates; Inc. ' By By E Tit _ - -- — d Title P resident " , { Date '5_`fir r\C� r ' t s; 3� �• `"xa.� nyz�� x�°� ��a � %, N.�a nt t � ,, � � � f s t' .. - -. '"K'•- �. _ -Ye'�''�k��$'�a-,w_sM.�Yf�. z-2�47«w:�`i:�:.�'�,:..v.r>.::. r-M - ,a.�s ..f ... .F.a - a}'v , � T s �,Yri APR 25 IV7 JOE M. NALL & ASSOCIATES , INC. F E E, S C H 3 D I1 L E ' October 1, 1977 Principal Engineer ----------------------------- 50.00 per hour Data Systems Consultant ----------------------- 45.00 " " Managing Examiner ----------------------------- 45.00 Senior Engineer ------------------------------- 40.00 Senior Examiner ------------------------------- 40.00 " Data Manager ---------------------------------- 40.00 Engineer -------------------------------------- 30.00 �� �► Examiner -------------------------------------- 30.00 11 it Associate Engineer ---------------------------- 25.00 it " Senior Engineering Technician ----------------- 25.00 " Senior Data Processing Technician ------------- 25.00 Junior Engineer -------------------- ---------- 20.00 ►' " Engineering Technician ------------------------ 18.00 Data Processing Technician -------------------- 18.00 Associate Engineering Technician -------------- 15.00 Associate Data Processing Technician ---------- 15.00 Junior Engineering Technician ----------------- 12.50 Junior Data Processing Technician ------------- 12.50 �' n Steno-Typist ---------------------------------- 11.50 Other qualified personnel as needed.