Min 12/26/1979 385
Wichita Falls, Texas
Memorial Auditorium Building
December 26, 1979
Items 1 & 2
The Board of Aldermen of the City of Wichita Falls, Texas, met in called 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
Curtis Smith
Carol Russell Aldermen
Jim Thomas
Robert Haley Assistant City Manager
H. P. Hodge, Jr. City Attorney
Gerald Carlson Chief Accounting Officer
Judy Baird Assistant City Clerk
John Hampton, Jr. Absent
Raymond Adcock Absent
The invocation was given by Alderman Traywick.
Item 3
Moved by Alderman Russell that minutes of the meeting held December 18, 1979,
be approved.
Motion seconded by Alderman Smith, and carried unanimously.
v Item 4a
A proposed ordinance was presented extending the state of emergency.
' ORDINANCE NO. 3585
ORDINANCE EXTENDING STATE OF DISASTER EMERGENCY FOR SEVEN DAYS.
Moved by Alderman Traywick that Ordinance No. 3585 be passed.
Motion seconded by Alderman Thomas, and carried by the following vote.
Ayes: Mayor Hill , Aldermen Traywick, Smith, Russell , and Thomas
Nays : None
J Item 5a
A proposed resolution was presented approving formation of Wichita Falls
Housing Finance Corporation.
RESOLUTION NO. 2446
A RESOLUTION APPROVING FORMATION OF WICHITA FALLS HOUSING FINANCE CORPORATION;
AND DECLARING AN EMERGENCY.
WHEREAS, an application in writing seeking the incorporation of a housing
finance corporation under the provisions of the "Texas Housing Finance Corporation
Act" has been filed with the Board of Aldermen of the City of Wichita Falls by at
least three individuals, each of whom is a citizen of the State of Texas, of the
age of 18 years or more and residents of the City;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA
FALLS, TEXAS:
386
Item 5a, cont'd.
SECTION 1 . That, the Board of Aldermen of the City has found and determined,
and hereby finds and determines, that it is wise, expedient, necessary, or advisable
that the corporation be formed.
SECTION 2. That the Board of Aldermen of the City hereby approves the form of
articles of incorporation proposed to be used in organizing the corporation, a copy of
which is attached hereto as "Exhibit A" , and hereby grants authority for the incorpora-
tion of the corporation.
SECTION 3. That, the Board of Aldermen of the City hereby designates the
Corporation for purposes of Section 5 of H.R. 5471 as reported by the House Ways and
Means Committee of the United States House of Representatives by vote of the Committee
on November 16, 1979.
SECTION 4. That it is hereby officially found and determined: that a case of
emergency or urgent public necessity exists which requires the holding of the meeting
at which this Resolution is adopted, such emergency being that the adoption of this
Resolution is necessary for the incorporation of a housing finance corporation under
the "Texas Housing Finance Corporations Act" ; and that the proceeds from the issuance
of such corporation's bonds are needed as soon as possible and without delay for
necessary and urgently needed residential housing for persons of low and moderate
income within the City; that said meeting was open to the public as required by law;
and that public notice of the time, place, and purpose of said meeting was given as
required by Vernon's Ann. Civ. St. Art. 6252-17, as amended.
SECTION 5. That all Ordinances and Resolutions and parts thereof in conflict
herewith are hereby expressly repealed insofar as they conflict herewith.
SECTION 6. That this Resolution shall take effect immediately from and after
its adoption, and it is accordingly so resolved.
City Attorney H. P. Hodge stated this is a process whereby mortgage money at
a moderate rate of interest would be made available to low and moderate income families.
The interest on the mortgage money would be under 10%. The bill , introduced in the
Congress, had a cut off date of April 29, 1979. What is being discussed this morning
may be too late. Before this bill is passed by Congress, the cut off date may be
brought up to December 31 , 1979. We do not know if the bill will pass or when the
cut off date is. Hopefully, the City of Wichita Falls has gone far enough prior
to December 31 , 1979, so we may not be cut off by the act of Congress. The action
that Frank Medanich of First Southwest Company and McCall , Pankhurst and Horton has
suggested is this resolution.
If the resolution is passed, it will be taken to Dallas, and First Southwest
Company will get it to Austin today and submit it to the Secretary of State. Hopefully,
the charter for the corporation would be issued on Thursday or Friday and the corpora-
tion would be formed. The Board of Directors would have an organizational meeting
on Monday and adopt its by-laws.
Mayor Hill stated if Congress does not take any action the City of Wichita Falls
will be in position to go ahead with this. If the cut-off date was April 29, 1979,
this would be an action of futility. Also, the Board of Aldermen are always in control
of it.
After reading an article from Financial Trends concerning this program in other
cities, Alderman Thomas stated this is a very worthy and worthwhile program that
should be adopted.
Moved by Alderman Thomas that Resolution No. 2446 be passed.
Motion seconded by Alderman Traywick, and carried by the following vote.
Ayes: Mayor Hill , Aldermen Traywick, Smith, Russell , and Thomas
Nays : None
Item 6a
Discussion was held on the Holliday Creek petition.
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387
Item 6a, cont'd.
Ernest Lillard, Director of Public Works, stated the Committee of Petitioners
have requested the City's engineering staff to prepare plans and specifications.
There is a considerable amount of expertise required for the design of this project.
It would take an engineering staff the size of the City of Wichita Falls, full time,
working with nothing else but this project, approximately two years to complete.
If we were to assume the responsibility for the design, then we would shut down
every other item our engineering staff is responsible for and concentrate on
nothing else for the period of time we would be engaged in the activity of
designing this. This is not a practical application of the engineering staff
that we currently have. The staff has been built around the ongoing activities
we are responsible for in accordance with the activities adopted in the budget for
the forthcoming year. There would be some technical expertise required from
the outside. It would be an addition to that cost.
The amount of work required for the completion of the project is far above
and beyond the capability of the current staff and equipment that is owned by
the City of Wichita Falls. This is a major earth moving project that would require
the service of a fully equipped, major construction firm. There is no way our
existing men and equipment could be utilized effectively in making this kind of
improvement.
The required design and construction based on current law in the State of
Texas, and the obligations the City of Wichita Falls assumed when it entered into
the Flood Insurance Administration Act requires the project be designed to certain
standards. These standards would require essentially the same design that the
Corps of Engineers have proposed in their report. The required improvements to
take the area out of the 100-year flood designation and to improve the area where it
would carry the design run off would require basically the project that the Corps
has recommended, including the consideration of Lake Wichita dam and the lake above
the dam because that is part of the watershed. You cannot take part of a river
basin or part of a stream basin, improve it, and forget the rest of it. Under the
current criteria they require you to look at all of it and to make the improvements.
The petitioners have suggested we do nothing to Lake Wichita other than strengthen
the dam. This would not be approved by the Texas Water Rights Commission because
they have classified the dam as hazardous. They have suggested in their report
the criteria in which it must be designed to take that designation away. As owners
the City is responsible for that dam. If we do anything, we have to meet the
criteria that is established. The obligations that are made on whoever is
responsible for making these designs are such that basically the Corpsof Engineers '
recommended plan will have to be adhered to.
Alderman Thomas asked if a number of engineers came forward before and stated
the proposed program of the Corps of Engineers was the most viable and best available?
Ernest Lillard stated they were looking at it based on current requirements and as
a community obligation. Alderman Thomas asked if in 1975 and 1976 there were 14 or
15 approaches to this and all were eliminated down to this approach? Ernest Lillard
stated that all plans were rejected based on economics and amount of improvements
except this one which would do the most good for the most people.
Alderman Thomas asked if the primary item of this plan that is not liked by
a number of people is the lowering of the spillway by 4.7 feet, therefore reducing
the amount of water to be used for recreational purposes. Ernest Lillard stated
that might be a reason. Alderman Thomas stated he would not like to see the lake
lowered anymore, but it would be difficult to look at any other approach than the
Corpsof Engineers' .
Mayor Hill stated the three alternatives are: 1 ) Adopt the amended resolution
submitted by the committee of petitioners to prevent flooding Holliday Creek down-
stream from Lake Wichita to the Wichita River, 2) Decline to approve the petitioned
amended resolution to prevent flooding Holliday Creek downstream from Lake Wichita
to the Wichita River, or 3) Approve a resolution which would reiterate support for
the Corps of Engineers Survey Report; indicate that efforts would be continued to
seek approval of the project through the necessary executive and legislative channels
of the Federal Government during the 1980 Legislative Session; if authorization
and appropriation for the project are not approved during the 1980 Congressional
Session, the Board of Aldermen would pledge to employ engineers to prepare final
designs, obtain necessary permits, prepare environmental impact statements for the
project based upon design criteria proposed by the Corps of Engineers; and submit
to the public a tax supported bond issue in 1981 seeking approval of local funds
for this project.
388
Item 6a, cont'd.
Mayor Hill asked about disannexing Holliday Creek?
Alderman Thomas stated he supported Alterntive No. 2. He also reaffirmed the
Council was not any less sensitive to these people. Alderman Russell agreed.
Moved by Alderman Thomas that action be taken as outlined in Alternative No. 2.
Motion seconded by Alderman Traywick.
Alderman Thomas stated the Council is just as interested as the people are. This
is a problem that needs to be solved in the best way we know how--the way that has
been recommended by the engineers.
Alderman Traywick stated he seconded the motion because one of the things that ,
concerned him is the petitioners ' suggestion as to the funding of their project.
This could not be funded as proposed. We are talking about an increase from $1 .30
to $1 .35 in the tax base. This is not a viable alternative. Also, the timing of
the petitioners is ill-conceived. It is confusing to say the Corps of Engineers '
plan is not acceptable. These people are professional . This project is much too
big to be handled locally. We need any federal support we can possibly get.
Mayor Hill stated Holliday Creek belongs to the City, but also to Wichita County,
and the State of Texas. He would not hesitate to ask the state and federal government
to help with this.
Curtis Smith stated he was in support of the motion. If there is not any progress
in the Corps of Engineers ' plan, he would like to see this brought up again. Alderman
Russell agreed.
Jimmy Horany appeared representing the Holliday Creek petitioners. He stated new
matters had come up since the last hearing on December 18. He stated Ernest Lillard
had reported that this project submitted by the Holliday Creek petitioners would
have to be approved entirely by the State Board of Water Resources. They would also
have to approve the plan of cutting the channel and any other modification to the Creek.
Mr. Horany stated he had checked with the State Board of Water Engineers and talked
with James Mirabal and was told that Senate Bill 512, passed on August 25, 1979,
provides that any improvement or change of the Creek by cutting the channel can be
approved by the City Council . It does have to conform to certain standards, but
those standards are anything that is reasonable which is submitted by a consulting
engineer. Mr. Horany stated he asked Mr. Mirabal about cutting the channel downstream
going into the bend, and was told this was a very good thing to stop the backup water
from Wichita River coming into Holliday Creek. This channel cut will do a lot
toward stopping the flooding down Holliday Creek. The Corpsof Engineers ' plan does
not have that in their plan. The City Council has the authority to approve any
reasonable plan that is submitted by any consulting engineer or the City's engineering
staff. This whole plan can be put into effect in six months. If the City Engineer
cannot do this project without jeopardizing other Public Works projects, they have
allowed for a consulting engineer. Also, this will not have to go to the people
with a big bond issue or tax increase. This can be spread out over two or three
years, and would nothave to cut City services because there is enough in these funds
for that purpose. Mr. Horany also thanked the Board of Aldermen for their consideration.
Alderman Traywick asked Ernest Lillard if the City did adopt the petitioners ' plan
or some other plan that would be different from the one the Corpsof Engineers proposed,
what position would that put us in, if in the future we decided to complete the project
as originally presented?
Ernest Lillard stated the City would be waiving all rights to the Corps ' program
because that project is based on cost-benefit ratio. Anything done to lessen the
cost benefit would jeopardize the project.
The motion carried unanimously.
The Board of Aldermen adjourned at 9:40 A.M.
PASSED AND APPROVED this i1 day of et- c- 1980.
ATTEST: MAYOR
CTTY CLERK
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EXHIBIT A
ARTICLES OF INCORPORATION
OF
WICHITA FALLS HOUSING FINANCE CORPORATION
THE STATE OF TEXAS
COUNTY OF WICHITA
WE , THE UNDERSIGNED , natural persons of the age of
eighteen ( 18) years or more , citizens of the State of Texas
and residents of the City of Wichita Falls , Texas (the"City" )
acting as incorporators of a public instrumentality and non-
profit corporation (the "Corporation" ) under the Texas
Housing Finance Act , having been granted authority
by the governing body of the City as evidenced by the resolu-
tion attached hereto as Exhibit "A" , do hereby adopt the
following articles of Incorporation for the Corporation :
ARTICLE ONE
The name of the Corporation is WICHITA FALLS HOUSING
FINANCE CORPORATION.
ARTICLE TWO
The Corporation is a public instrumentality and non-
profit corporation.
ARTICLE i'I:RT�.
The period of duration of the Corporation is perpetual .
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ARTICLE FOUR
The Corporation is organized exclusively for the purpose
of benefiting and accomplishing public purposes of , and on
behalf of, the City, by financing the cost of residential
ownership and development that will provide decent, safe and
sanitary housing for residents of the City at prices they
can afford . It has been determined and declared by the
Legislature of the State of Texas that such residential
ownership and development will (a) provide for and promote
the public health, safety, morals, and welfare ; (b) relieve
conditions of unemployment and encourage the increase of
industry and commercial activity and economic development so
as to reduce the evils attendant upon unemployment; (c)
provide for efficient and well-plannecl urban growth and
development including the elimination and prevention of
potential urban blight and the proper coordination of industrial
facilities with public services , mass transportation and
residential development; (d) assist persons of low and
moderate income in acquiring and owning decent, safe and
sanitary housing which they can afford ; and (e) preserve and
increase ad valorem tax bases of local governmental units ;
and the foregoing have been determined and declared by the
Legislature of the State of Texas to lessen the burden of
government and to be public purposes and functions .
ARTICLE FIVE
The Corporation has no members .
ARTICLE SIX
These articles of incorporation may at any time and
from time to time be amended so as to make any changes
therein and add any provisions thereto which might have been
included in the articles of incorporation in the first
instance . Any such amendment shall be effected in either of
the following manners : (i) the members of the board of
directors of the Corporation shall file with the governing
body of the City an application in writing seeking permission
to amend the articles of incorporation, specifying in such
application the amendment proposed to be made , such governing
body shall consider such application and , if it shall by
appropriate resolution duly find and determine that it is
wise , expedient, necessary or advisable that the proposed
amendment be made and shall authorize the same to be made ,
and shall approve the form of the proposed amendment, then
the board of directors of the Corporation may amend the
articles of incorporation by adopting such amendment at a
meeting of the board of directions and delivering articles
of amendment to the Secretary of State , or (ii) the governing
body of the City may, at its sole discretion, and at any
time , alter or change the structure , organization , programs ,
or activities of the Corporation (including the power to
terminate the Corporation) , subject to any limitation on the
impairment of contracts entered into by the Corporation, by
adopting an amendment to the articles of incorporation of
the Corporation at a meeting of the governing body of the
City and delivering articles of amendment to the Secretary
of State.
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ARTICLE SEVEN
The street address of the initial registered office of
the Corporation is 1300 Swept- S -reet Wi c_h; t-a Falls
, Texas , 76301 , and the name of its initial registered
agent at such address is Wilma J. Thomas
ARTICLE EIGHT
The affairs of the Corporation shall be managed by a
board of directors which shall be composed in its entirety
of persons appointed by the governing body of the City. The
number of directors constituting the initial board of directors
is four The names and addresses of the persons who are
to serve as the initial directors , and the dates of expiration
of their initial terms as directors , are as follows :
DATE OF
EXPIRATION OF
Nrl�IES ADDRESSES TER:ti1
Kenneth Bill 5 Merryhill, Wichita Falls December 26, 1980
H . P . Hodge , Jr. 4507 Nassau, Wichita Falls December 26, 1981
Robert D. Haley 4404 Weeks Park Lane, Wichita
Falls December 26, 1982
Gerald G. Fox 2703 Amherst, Wichita Falls December 26, 1983
provided, however , that the term of any Director who is a public
official of the City shall not exceed the period for which such
director shall be a public official of the City.
Each of the initial directors resides within the City.
Each director , including the initial directors , shall be
eligible for reappointment . Directors are reriovable by the
governing body of the City, for cause or at ;gill , and must
not be appointed for a term in excess of six (6) years . Any
vacancy occurring on the board of directors through death,
resignation , or otherwise , shall be filled by appointment by
the governing body of the City to hold office until the ex-
piration of the term for which the vacating director had
been appointed .
ARTICLE NINE
The name and street address of each incorporator is :
Name Address
Kenneth Hill 5 Merryhill , Wichita Falls , Texas
Robert D . Haley 4404 Weeks Park Lane , Wichita Falls,
Texas
H. P. Hodge, Jr. 4507 Nassau, Wichita Falls , Texas
Each incorporator resides within the City.
ARTICLE TEN
A resolution approving the form of these articles of
incorporation has been duly adopted by the governing body of
the City. The date of the adoption of such resolution is
December 26 , 1979 . A copy of the resolution is attached
hereto as Exhibit A.
ARTICLE ELEVEN
No dividends shall ever be paid by the Corporation and
no part of its net earnings (beyond that necessary for re-
tirement of the indebtedness of the Corporation or to im le-
ment the public purpose of the City for which the Corporation
has been created) shall be distributed to or inure to the
benefit of its directors or officers or any private person,
firm, corporation, or association except in reasonable
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amounts for services rendered . No substantial part of the .
Corporation ' s activities shall be carrying on propaganda , or
otherwise attempting to influence legislation, and it shall
not participate in, or intervene in (including the publishing
or distributing of statements) , any political campaign on
behalf of or in opposition to any candidate for public office.
ARTICLE TWELVE
If the Corporation ever should be dissolved when it
has , or is entitled to , any interest in any funds or property
of any kind, real , personal , or mixed, such funds or property
or rights thereto shall not be transferred to private ownership,
but shall be transferred and delivered to the City , after
satisfaction or provision for satisfaction of debts and
claims .
IN WITNESS WHEREOF, we have hereunto set our hands ,
this 26th day of Dec. 1979-
INCORPORATORS
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THE STATE OF TEXAS
COUNTY OF WICHITA
I , the undersigned, a Notary Public , do hereby certify
that on this 26th day of Dec . 1979 , personally appeared
before me Kenneth Hill Robert D. Haley
H. P . Hodge , Jr . '
and who , each being by me first
duly sworn, severally declared that they are the persons who
signed the foregoing document as incorporators , and that the
statements therein contained are true .
IN WITNESS WHEREOF , I have hereunto set my hand and
seal the day and year above written .
rotary Public in and for
Wichita County, Texas
My commission expires :
NOTARY PUBLIC SEAL