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Min 09/21/1982 443 Wichita Falls, Texas Memorial Auditorium Building September 21 , 1982 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. Gary D. Cook Mayor Gene Shearman Carol G. Russell Craig A. Wilson Aldermen Howard M. Morris Horace 0. Boston Stuart Bach City Manager H. P. Hodge, Jr. City Attorney Wilma J. Thomas City Clerk Fred Werner Chief Accounting Officer John W. Hampton Absent The invocation was given by Jack Dial , Evangel Temple Assembly of God Church. Item 3 Moved by Alderman Shearman that minutes of the meeting held September 14, 1982, be approved. Motion seconded by Alderman Morris, and carried unanimously. Moved by Alderman Russell that minutes of the meeting held September 7, 1982, be approved. Motion seconded by Alderman Shearman, and carried unanimously. Items 4a - 7d Item 5a was moved to the regular agenda. Moved by Alderman Morris that the remaining items on the consent agenda be approved. Motion seconded by Alderman Shearman. Item 4a ORDINANCE NO. 88-82 ORDINANCE CLOSING, VACATING, AND ABANDONING A FIFTEEN (15) FOOT UTILITY EASEMENT LYING ADJACENT TO AND SOUTH OF THE NORTH PROPERTY LINE OF LOT 29, BLOCK 3, KEMP AND NEWBY SUBDIVISION, AN ADDITION TO THE CITY OF WICHITA FALLS, TEXAS. Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston Nays: None Item 6a The bid for an annual supply of anhydrous ammonia for water purification was awarded to Texhoma Ag-Prod, Iowa Park, in the amount of $17,400. Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston Nays: None r 444 Item 7a Minutes of the meeting of the Park Board held August 26, 1982, were received. Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston Nays: None Minutes of the meeting of the Plumbing Advisory Board held September 1 , 1982, were received. Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston Nays: None Minutes of the meeting of the Board of Electrical Examiners held September 9, 1982, were received. Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston Nays: None Minutes of the meeting of the Planning Board held September 8, 1982, were received. Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston Nays: None Item 5a A proposed resolution was presented authorizing the City Manager to execute one-year lease extensions to Rio Airways and Metroflight at the Municipal Airport. RESOLUTION NO. 157-82 RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE LEASE EXTENSIONS OF ONE YEAR, AT CURRENT RATES, WITH RIO AIRWAYS, INC. AND METROFLIGHT, INC. AT WICHITA FALLS MUNICIPAL AIRPORT. WHEREAS, the City and Rio Airways, Inc. entered into an agreement and lease of premises at Wichita Falls Municipal Airport, dated October 1 , 1980, for a term expiring September 30, 1982; and, WHEREAS, the City and Metroflight, Inc. entered into an agreement and lease of premises at Wichita Falls Municipal Airport, dated October 1 , 1980, for a term expiring September 30, 1982; and, WHEREAS, the parties to such agreements desire to extend each of the above agreements and leases for one year, so that each shall expire September 30, 1983. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS, THAT: Such one year extensions of said two agreements and leases of premises, at current rates, are hereby approved, and the City Manager is authorized to execute instruments so extending such agreements and leases. Moved by Alderman Boston that Resolution No. 157-82 be passed. Motion seconded by Alderman Shearman. Alderman Wilson asked why we are willing to do this at the current rates since it is the third year? City Manager Stuart Bach stated that it is because of our concern with industry and the economy. Jack Griffin, Acting Director of Traffic and Transportation, stated that the airlines are in dire straits, and we have budgeted to have an ending balance next year. The airport will be completely self-supporting next year. The City Manager stated that we would not want to make our space so expensive that it would make it hard on the carriers at the airport. Alderman Wilson felt that it would be unwise to lock ourselves into these rates when we know our costs will be going up. 445 Item 5a, cont'd. Mayor Cook expressed his concern that we should not subsidize these air carriers at the cost of the taxpayers. The City Manager stated that the costs are going up, but the revenues we will be receiving will be paying for these costs. The motion was carried by the following vote. Ayes: Mayor Cook, Aldermen Shearman, Russell , Morris and Boston Nays: Alderman Wilson Item 8a Bids were opened on an oil and gas lease at Lake Kickapoo. Bids were received from Burns Leasing Corporation, L & H Oil Company, and Leslie Finnell . City Attorney H. P. Hodge, Jr. explained that they could either award the bid today, or defer it to a future meeting if they needed to study the bids. Jimmy Horany, of L & H Oil Company, stated that he believed it would be legal to accept the alternate bid he submitted on Tract 2 for 1/8 Royalty since he was the highest bidder on another tract. Moved by Alderman Shearman that this matter be tabled until the next regular meeting for further study. Motion seconded by Alderman Morris, and carried unanimously. Item 9a A proposed ordinance was presented, changing the electrical code of the city. ORDINANCE NO. 89-82 AN ORDINANCE AMENDING ORDINANCE NO. 2326 (THE 1967 ELECTRICAL CODE OF THE CITY OF WICHITA FALLS) ALTERING THE MEMBERSHIP AND TERMS OF OFFICE OF THE BOARD OF ELECTRICAL EXAMINERS, REQUIRING AVAILABILITY OF MASTER ELECTRICIANS TO ELECTRICAL INSPECTOR, PROVIDING FOR MASTER ELECTRICIAN'S LICENSE EXAMINATIONS, INCREASING APPLICATION FEE FOR MASTER ELECTRICIAN'S LICENSE, INCREASING LICENSE FEE FOR MASTER ELECTRICIANS'S, INCREASING RE-EXAM- INATION FEE FOR MASTER ELECTRICIAN'S LICENSE, PROVIDING FOR RENEWAL FOR MASTER ELECTRICIAN'S LICENSES HELD BY PERSONS WHO HAVE NOT OBTAINED PERMITS WITHIN A ONE-YEAR PERIOD PRIOR TO THE LICENSE RENEWAL DATE, INCREASING RENEWAL FEE FOR MASTER ELECTRICIAN'S LICENSE, DELETING CLASSIFICATION OF "INDUSTRIAL ELECTRICIAN", PROVIDING FOR RENEWAL OF EXISTING INDUSTRIAL ELECTRICIAN' S LICENSES, PROVIDING FOR JOURNEYMAN ELECTRICIAN'S LICENSE EXAMINATIONS, INCREASING APPLICATION FEE FOR JOURNEYMAN ELECTRICIAN' S LICENSE, INCREASING RENEWAL FEE FOR JOURNEYMAN ELECTRICIAN'S LICENSE, INCREASING LICENSE FEE FOR JOURNEYMAN ELECTRICIANS, PROVIDING WHO MAY SUPERVISE APPRENTICES, TRAINEES OR HELPERS, INCREASING ORIGINAL REGISTRATION AND RENEWAL FEES FOR MAINTENANCE ELECTRICIANS, DEFINING TERM "ACTUAL SUPERVISION" , DELETING DEFINITION OF "INDUSTRIAL ELECTRICIAN" , PROVIDING FOR INSTALLATION OF UNDERGROUND BRANCH CIRCUIT CABLE, PROVIDING FOR ISSUANCE OF TEMPORARY SERVICES PERMITS, INCREASING FEE OF INSPECTION OF ELECTRICAL WORK AND PROVIDING INSPECTION CHARGES FOR NEW CONSTRUCTION RESIDENTIAL ELECTRICAL OUTLETS AND BATHROOM, SPACE OR SUPPLEMENTARY RESISTANCE HEATERS. Moved by Alderman Shearman that Ordinance No. 89-82 be passed. Motion seconded by Alderman Morris. Alderman Morris asked why the electrical board recommended the $200 fee, and the staff recommended another? He would like to know the rationale of the electrical board? 4aA Item 9a cont'd. Tommy McCulloch, Chairman of the Board of Electrical Examiners , stated that they felt the fees were minimum, and they found that other cities were using higher fees. They felt like it was outdated, and should be upgraded. They feel that the inspectors are under-paid, and this is one way to upgrade it. There were several other things they also changed. Alderman Shearman noted that the Board was unanimous in their recommendation to the Council . Alderman Wilson asked if the electrical fees were passed on to the user? Mr. McCulloch stated that the examination fee is a one-time fee. Mayor Cook thanked the Electrical Board for their many hours of thought given to this ordinance. vote.The motion for passage of Ordinance No. 89-82 was carried by the following Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston Nays: None Item l0a A proposed resolution was presented authorizing a contract with Child Care, Inc. , for day care services. RESOLUTION NO. 158-82 A RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH CHILD CARE, INC. FOR PROVISION OF DAY CARE SERVICES. WHEREAS, the need for continuance of the day care services was advocated during development of the Community Development Block Grant 1982-83 Final Statement of Community Development Objectives and Projected Use of Funds; and, WHEREAS, Child Care, Inc. submitted a proposal to provide day care services in the Martin Luther King Center; and, WHEREAS, the Board of Aldermen agreed to provide a maximum of $89,000.00 from FY 1982-83 Community Development Block Grant program funds; and, WHEREAS, the negotiation of an agreement with Child Care, Inc. will provide for the day care services in the Martin Luther King Center. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS, THAT: The City Manager is authorized to execute a contract, a copy of which is attached hereto, with Child Care, Inc. for the provision of the day care services in the Martin Luther King Center for an amount not to exceed $89,000.00. Moved by Alderman Shearman that Resolution No. 158-82 be passed. Motion seconded by Alderman Russell . Mayor Cook noted that there is a waiting list of children for this facility. They provide an outstanding service for single parents and those parents who lack skills to be able to receive training for the work force. He wondered how they know if the parent is still working. Margaret Stewart, Executive Director of Child Care, Inc. , stated that the parent signs an agreement that they will tell them if there is any change in their family, ,job, etc. They routinely check them every six months. It is also partly a matter of trust. She stated that they have seen a number of success stories where the families are able to become totally self-sufficient. Not all are this successful , however. They have 20-25 children on their waiting list. 447 Item 10a, cont'd. Alderman Boston asked if they could provide the same care with the $6,000. reduction in City funding? Mrs. Stewart stated that they can because they will be charging the parents more, and the City will not have to contribute as much. They are collecting a higher rate from the parents than they thought they could. Item 10b A proposed resolution was presented authorizing the City Manager to increase the public official liability insurance limits. RESOLUTION NO. 159-82 RESOLUTION AUTHORIZING THE CITY MANAGER TO INCREASE THE PUBLIC OFFICIAL LIABILITY INSURANCE FROM A $1 ,000,000 LIABILITY TO A $5,000,000. LIABILITY LIMIT. BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS THAT: The City Manager is authorized to increase the liability limits of the public official liability insurance from $1 ,000,000 to $5,000,000. Moved by Alderman Boston that Resolution No. 159-82 be passed. Motion seconded by Alderman Shearman. City Attorney H. P. Hodge, Jr. noted that it is infrequent that we have liability cases, but it just has to happen once, and the liklihood of it coming up is very real . Risk Manager, Mark Wilson explained that public officials include Council Members, City Manager, all directors, police chief, with certain exceptions, all commissions of the city, and other city employees. Mayor Cook asked if this is in accord with the Texas Municipal League's liability insurance program? The City Manager stated that it is similar; however, it is not their program. Alderman Shearman asked if we really need $5 million dollars? The City Manager and City Attorney agreed that this measure of protection is needed. We have only had two suits here, but across the state it has been substantial . Ed Barrett, Director of Administrative Services, stated that he talked with Dave LaBrec at the Texas Municipal League, and it is multiplied by the number of officials. We are not in the TML plan because we would also have to be in their workmen's compensation plan. The motion was carried by the following vote: Ayes: Mayor Cook, Aldermen Russell , Wilson, Morris and Boston Nays: None (Alderman Shearman was out of the room. ) Item 10c A proposed resolution was presented authorizing the City Manager to execute an agreement with Joe Nall for a gas rate analysis. RESOLUTION NO. 160-82 RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH JOE M. NALL & ASSOCIATES, INC. FOR PERFORMANCE OF AN ANALYSIS OF THE RECENT LONE STAR GAS COMPANY RATE INCREASE REQUEST. BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS, THAT: Certain agreement, a copy of which is attached hereto, between the City of Wichita Falls and Joe M. Nall & Associates, Inc. for performance of an analysis of the recent Lone Star Gas Company rate increase request, is hereby approved, and the City Manager is authorized to execute the same for the City of Wichita Falls. 448 Item 10c cont'd. Moved by Alderman Morris that Resolution No. 160-82 be passed. Motion seconded by Alderman Russell . Mayor Cook noted that it was his understanding that Lone Star Gas Company indicated last year that Joe Nall was inexperienced in gas rate studies, and the Council had to award something higher than he recommended. Also, that the Council may have awarded a higher rate to forestall any future rate request increase. City Manager Stuart Bach stated that Mr. Nall has done several hundred studies, and that he was a candidate for a member of the Public Utilities Commission. City Attorney H. P. Hodge, Jr. stated that last year was the first time we had used Mr. Nall on a gas rate study. Mayor Cook noted that the study would be for a fee not to exceed $14,899. It was noted that the study last year involved more than just a rate study. It also involved operating efficiencies. The motion was carried by the following vote. Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston Nays: None Item 10d A proposed resolution was presented authorizing execution of a lease agreement for a boat launching facility at Lake Arrowhead. RESOLUTION NO. 161-82 RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT WITH THE TEXAS PARKS AND WILDLIFE DEPARTMENT FOR THE PROPOSED BOAT LAUNCHING FACILITY AT DEER CREEK PARK AT LAKE ARROWHEAD. BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS, THAT: That certain lease agreement, a copy of which is attached hereto, between the City of Wichita Falls and the Texas Parks and Wildlife Department for the proposed boat launching facility at Deer Creek Park at Lake Arrowhead is hereby approved, .and the City Manager is authorized to execute the same for the City of Wichita Falls. Moved by Alderman Shearman that Resolution No. 161-82 be passed. Motion seconded by Alderman Russell . Alderman Shearman asked how many launching ramps we have at Lake Arrowhead? Bill Hursh stated that there are four, besides the State park. City Manager Stuart Bach stated that this request came from Field and Stream. This is the same one that was requested last year. The State required that we pick up trash and debris. We are keeping it up now. There are eight boat launching facilities at the State park. Alderman Shearman stated that he hates to see us put $23,000 in something when in the long run, it will cost us to keep up this facility when sportsmen will be using it. It is not very sportsman to be littering. The motion was carried by the following vote. Ayes: Mayor Cook, Aldermen Russell , Wilson, Morris and Boston Nays: Alderman Shearman 449 Item 1Oe A proposed resolution was presented authorizing a contract for fleet liability and general liability claims. RESOLUTION NO. 162-82 RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH GAB BUSINESS SERVICES, INC. , PROVIDING FOR THE ADJUSTMENT OF FLEET LIABILITY AND GENERAL LIABILITY CLAIMS. BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS THAT: That certain contract, a copy of which is attached hereto, between the City of Wichita Falls and GAB Business Services, Inc. , providing for the adjustment of fleet liability and general liability claims, is hereby approved, and the City Manager is authorized to execute the same for the City of Wichita Falls. Moved by Alderman Shearman that Resolution No. 162-82 be passed. Motion seconded by Alderman Russell . Alderman Shearman asked if we are getting a price break on this? Mr. Bach stated that we didn't. Mark Wilson stated that GAB was the only one willing to bid it on a per occurrence fee, or flat fee. We have not asked for bids, but we have asked for quotations. The others quoted per photograph and per mile travel . Only GAB and Crawford and Company would quote. You could not compare them because GAB quoted on a flat fee, and the other did not. Mayor Cook encouraged the staff to contact other companies in and outside the city to see if someone would be interested in offering those services in the future. The motion was carried by the following vote. Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston Nays: None Item 10f Discussion was held on a proposed resolution concerning a revised service agreement with Plumlee Ambulance. A motion was made by Alderman Russell , and seconded by Alderman Boston, for discussion purposes, that the proposed resolution be passed. City Manager Stuart Bach stated that Plumlee had made a request several months ago to all entities for an increase in subsidy. Two accountants were sent to Weatherford to audit their books. They also checked the medicare costs. Plumlee only receives 45 percent of the costs paid by medicare. They have experienced a $100,000 loss. He is recommending an increase in subsidy in the amount of $176,000. The City's share would be $73,920. They are also requesting a change in their fiscal year so that it will allow budget requests to be prepared in conjunction with the City's budget. Mayor Cook asked why there would be a $100,000 loss on a multi-jurisdiction agreement? The City Manager stated that the initial bid was not based on the fullest of information, plus the medicare and medicaid situation. Joe Plumlee stated that there were no financial records available to look at. There are 17 nursing homes in Wichita Falls. Thirty percent of their business is from nursing homes to doctor's offices. Medicare does not pay one penny of this. There is a tremendous loss on nursing home care to the physician's office. Mayor Cook asked why they did not bill the nursing home? Mr. Plumlee stated that they are not responsible. Mayor Cook asked if this could not be worked out as part of the overall cost of providing care to the patient? Mr. Plumlee stated that the doctor, rather than the nursing home, orders the ambulance to take them to his office. 450 Item 10f, cont'd Mayor Cook noted that there are 162 non-emergency calls per month. Mr. Plumlee noted that 30 percent of these calls are to and from doctors' offices. He also 4 noted that there is no difference in insurance rates for emergency and non-emergency. Mayor Cook asked if that part of his business (transfer business) were awarded to someone else, how would that impact his business - negatively, positively, or no difference? Mr. Plumlee stated that if you take away what profit we do receive from it, it would affect their costs at the end of the year. Mr. Plumlee admitted that their rates are higher than in some other cities. In November they plan to lower them. He stated that one-way rates for a transfer are $80.00 and $125.00 for an emergency. Alderman Shearman asked how he arrives at the cost per call ? Mr. Plumlee explained that he divides the expenses by the number of calls. - It was noted that the City of Wichita Falls owns two ambulances. Plumlee owns " three on a lease-purchase. The two city-owned ambulances cost $43,000. Alderman Shearman asked what our in-kind contributions are to provide fire stations for these ambulances? The- City Manager stated that the in-kind contributions will be there anyway. This would provide him space to improve response time to the citizens. Mayor Cook stated that he is comparing Plumlee with Gold Cross. What would it cost Gold Cross to rent facilities like the fire stations? The City Manager stated that they agreed to let the company set the rates. We have to decide whether we pay more in subsidy or rates? Mr. Plumlee stated that the two separate fire stations were not his idea. He further stated that his request for a subsidy is not based on the new rates, but on the old rates. Moved by Alderman Shearman that this matter be tabled for further study. Motion seconded by Alderman Wilson, and carried by the following vote. Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston. Nays: None Item lla Bids were considered on a portable air compressor for the Street Division. Moved by Alderman Morris that the bid be awarded to Cessco Rental and Supply, Wichita Falls, in the amount of $8,125. Motion seconded by Alderman Shearman, and carried unanimously. Item 12a Permission was requested to advertise for bids for a 1000 gpm. Fire Department pumper. Moved by Alderman Shearman that authority be granted to advertise for bids, as requested. Motion seconded by Alderman Russell . Fire Chief Jameson stated that there will be a pre-bid conference on the specifications. The motion was carried unanimously. Item 13 a, b There was no other business, and the Board of Aldermen recessed at 10:03 A.M. to go into executive session pursuant to Article 6252-17, paragraphs (e) and (g) of the Revised Texas Civil Statutes. The Board of Aldermen reconvened at 11 :03 A.M. , and immediately adjourned. 451 Items 13 a, b cont'd. PASSED AND APPROVED this �'1 day of 1982. Z.":'z- D. Mayor ATTEST: I � Wilma J. Thomas, City Clerk I ,_,_� ,, �a�� %r AGREEMENT EXTFNDINC V REEMFNT F dD LEASE OF PREMISES AT WICHITA FALLS MUNICIPAL AIRPORT WITH RIO AIRWAYS , INC. WHEREAS, the City of Wichita Falls and Rio Airways , Inc. entered into an agreement and lease of premises at Wichita Falls Municipal Airport dated October 1, 1980, for a term expiring September 30, 1982 , and, WHEREAS , the parties desire to extend such agreement and lease for a period of one year. NOW, THEREFORE, the parties hereto do hereby agree that such r agreement and lease is extended for a period of one year, so that it shall expire September 30 , 1983 ; all other terms and conditions of such agreement and lease of premises shall remain unchang ed. � DATED this the 21st day of September, 1982 . k I ` CITY OF WICHITA FALLS I I B I y Y• i City Manager _ 'ATTEST : ' i City Clerk RIO AIRWAYS , INC. By:_ President ATTEST: Secretary i f AGREEVENT EXTENDING AC,PFFMrNm AND LEASE OF PP,EMISES AT WICHITA FALLS MUNICIPAL AIRPORT WITH MFTROFLIGHT, INC. WHEREAS , the City of Wichita Falls and Metroflight , Inc. entered into an agreement and lease of premises at Wichita Falls Municipal Airport dated October 1, 1980 , for a term expiring September 30 , 1982 , and, WHEREAS, the parties desire to extend such agreement and lease for a period of one year. NOW, THEREFORE, the parties hereto do hereby agree that such r w agreement and lease is extended for a period of one year, so that it shall expire September 30 , �• other terms and 1983 all n conditions I t Of such agreement and lease of premises shall remain unchanged. r DATED this the 21st day of September, 1982 . II kI CITY OF WICHITA FALLS F By: i City Manager ATTEST: City Clerk METROFLIGHT, INC. By: Vlce President/General Manager ATTEST: Secretary Page of page A4 MUNICIPALITY WORK ORDER DATE: September 1, 1982 CLIENT: City of Wichita Falls Mr. Stuart A. Bach, City Manager ADDRESS: P.O. Box 1431 Wichita Falls, Texas 76307 PROJECT: Gas Rate Analysis and Recommendation JMN Job No. 20-82-GC SCOPE OF SERVICES: To provide expert assistance to the City of Wichita Falls in analyzing the Lone Star Gas Company's request for rate relief in furnishing domestic gas service. These services are to be provided at the direction of the City Manager and shall include, but not be limited to: Analyses of the applications and requests of Lone Star Gas Company for the determination of the proper rate base, revenues and expenses, and rate of return that should be utilized in determining fair and equitable charges for domestic gas consumption in Wichita Falls. . The Consulting Engineer's findings and recommendations shall be set forth in a written letter-type report to the City of Wichita Falls within a reasonable period of time not to exceed ten weeks after all necessary underlying records, documents and other information supplied by the Gas Company to the City of Wichita Falls have been reviewed by the Consultant. If the Gas Company will submit their meter consumption record for 12 months on computer tape, then all rate structures recommended will be block analyzed to assure coverage of revenue requirements. The Consulting Engineer shall make available to the City expert witness with con- siderable experience in gas utility rate making to present testimony. BILLING AND ACCOUNTING DATA: For services rendered, the Client shall pay Joe M. Nall & Associates, Inc. , Con- sulting 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 established hourly salary cost. This expense shall come from current revenue or from taxes which the municipality agrees to levy for the purpose of paying the same or from the utility requesting change in the rate ordinance. 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 work of this agreement will be accomplished in accordance with the Standard Fee Schedule at a fee and expense limit not to exceed 14,8 9 .00 ization from the City in the form of a signed amendment ofextennsionhofttheior workuorder. APPROVED FOR:City of Wichita Falls APPROVED FOR: Joe M. Nall & Associates, Inc. BY: �. i le BY: 6_1 esident DATE: --------------- Paae 6 of 6 Pages iA' e Summary of Proposed Natural Gas Rate Study City of Wichita Falls The scope of the services would include a determination of: A. The reasonableness of local service revenues, operating and main- tenance expenses, allocations of division and/or regional expenses, depreciation expenses claimed and the rates and schedules applied to same, income tax liabilities claimed, interest expenses and in- vestment tax credits and other relevant income and expense items. B. The reasonableness of application of proper allocations, on a pro forma basis, to expenses and income. C. A reasonable rate base upon consideration of original cost, working capital , construction work in progress, current cost new, reason- ableness balances, adjustments for age and condition and other per- tinent factors pertaining to used and useful plant in service. D. A reasonable rate of return based upon debt capital costs, interest costs, equity capital and other pertinent factors pertaining to the Gas Utility' s financial integrity. E. The revenue requirements and recommended rates and rate structures needed to meet those requirements. Study Requirements The ability of the gas system to meet its near term financial obligations will require an individual determination in five study areas: 1. Reasonable operating expenses incurred and revenues being provided under known conditions with present rates. a) Determine the reasonableness of local service revenues, operat- ing and maintenance expenses, allocations of division and/or regional expenses, depreciation expenses claimed, income tax liabilities claimed, interest expenses and investment tax credits; and b) Check the allocations to expenses and income and determine if the application is proper and reasonable. 2. Value of the Company's property used and useful in providing gas service. a) Find the Plant's original cost and depreciation; Paae 3 of 6 Pages 1. Agenda Item ro. lo.c. A,4 b) Determine the plant's current cost, age and conditions; and c) Develop the allowance for working capital and make other rate base adjustments. 3. Sufficient rate of return to allow Company to compete in money market and to avoid confiscatory rates. a) Find the imbedded interest rate on debt and on preferred stock; and b) Determine a fair percent allowance for the equity portion of Invested Capital . 4. Specific rate schedules for various classes of service. a) Find the cost of service requirements by functional class, b) Determine the needed rate structure, and c) Analyze both step and flat rate structures, d) Recommend the necessary rates to meet the revenue require- ments of each class, e) Verify the tax and gas cost adjustment factors. / 5. Level of gas service being furnished. a) Investigate the operational efficiency and determine if pru- dent measures are followed; and b) Determine if the maintenance program carried out by the- utility is both frugal and in the best interest of the con- sumer. Cost of Service Allocations For a test year, provide cost and service characteristics, estimated to be representative for a period to be covered by the initial revenue adjustment. 1. Estimate on the basis of recorded customer use data, the relative responsibility of each customer class for system capacity, quantity of service taken, and customer elements based upon local experience and conditions. 2. Distribute the cost of service to be allocated to functional cost components to the various customer classes on the basis of relative responsibility of each class for service provided as determined. 2. Page 4 of 6 _ Pages T___.3_ -- t, 3. Estimate the revenue under existing schedule of rates anticipated from each customer class. Compare such revenue with the distrib- uted functional cost of service and determine the adjustment in revenue for each class required to equitably recover total cost of service from the respective classes. Rate Schedule Construction For the representative test year for which cost of services studied and allocated: 1. Construct a schedule of rates for gas service which will produce the revenue required and equitably place the burden of cost on each customer class and consumption group. Design of the rate schedule would include consideration of the rate structure and unit cost of service. The equity of each rate and the revenue produced would be documented. 2. Varify the reasonable application of the systems gas cost adjust- ments based on their own estimates of use in advance. Miscellaneous Fees and Charges Based on current policies and procedures and cost: 1. Review the current fee for appliance service, gas light service, air conditioning service, and yard line repair and replacement service. Recommend a level of fee to reflect current conditions or discontinue them, but in no instance allow these services to be subsidized by other fees. 2. Consider the desirability of removing the Gas Main Extension Rate with recommended safeguard to the over building of gas plant. Comparisons of Typical Bills for Gas Service Make comparisons for typical bills for gas service. 1. Comparison of typical bills for gas service under the existing schedule of rates with bills which would result from the schedule of rates derived in this rate study. 2. Obtain schedules of rates for gas service which are currently in effect in other cities with conditions similar to those of Wichita Falls. Make comparisons of typical bills for gas service in other cities with bills under Wichita Falls existing schedule of charges and with bills that would result from schedule of rates derived in this rate study. 3. Pacre 5 of 6 Paaes Agenda Item No. 1O.c. GABContract Services Form 449 (9181) Tailored Especially for City of Wichita Falls Texas P.O. Box 1431 Wichita Falls Texas Z3307 Attn: Stuart A. Contract for Administrative Investigative and Adjustment I� and General Liabilittcl_ i I' I Period October 1 1982 through September covering Losses and Claims ® occurring ❑ reported during period ji Price Auto Liability - $128.50 per occurrence General Liability $150 50 per occurrence Premium Base Rate of % X I Deposit payments of monthly. Final payment Deferred to ! Territory City of Wichita Falls Texas Account(s) Customer Contact City of Wichita F d1s, Address Telephone GAB Account Executive Dallas Texas Telephone ?1 n 526 79�71 GAB Office - Renewal Agreement To be ne oti d Terms: GAB Business Services, Inc., 123 William Street, New York New York 10038 (hereinafter referred to as GAB) agrees i Contract Continuation Page_ ot_l4 CABContract Services to provide all its usual administrative, investigative and adjustment services to City of Wichita Falls in connection with Auto Liability and General Liability claims during a period of one (1) year commencing with October 1, 1982 through September 30, 1983, in accordance with the requirements of any regulatory authority having jurisdiction. 1. In consideration of the contract agreement, GAB agrees to provide all its usual administrative, investigative and adjustment 'services with no additional charge, except for the following: a. City attorney will provide all defensev,,ii be t services, sforlther paying forcih office or outside counsel, and ,City responsible services. b. City of Wichita Falls agrees to pay the cost of all experts and professional assistance required to investigate and adjust claims. All such costs shall have the prior approval of the City. C. GAB may submit any invoices or request for payment of fees of attorneys, experts and other professional assistance as described in la and lb above, to City of Wichita Falls for payment approval. If so instructed by City' of Wichita Falls GAB will make payment as outlined in paragraph 4A. Spch expenses shall be classified as "allocated expenses" defined as legal fees, court costs, independent medical examinations, and such other professional assistance as is necessary to properly handle all matters assigned to GAB _ and which it is not possible or feasible for GAB to provide with its bwn personnel. No such expenses shall be incurred without prior approval of the City. Allocated expenses, when paid by GAB, will be shown on draft copies as expense items. 2. GAB will forward its recommendations regarding claim payments to the Cit� of Wichita Falls for final disposition including payment. 3. Additional services included in this contract for service are as follows: a. GAB will provide a Key Account Representative at Wichita Falls, Texas. Key Account Representative will provide liaison between City of Wichita Falls, their representatives-and GAB. 4. The contract price payable to GAB shall be determined in accordance with the following: a. GAB's charges shall $128.50 per occurrence for Auto Liability, and $150.50 per occurrence for General Liability claims. The customer will be billed for each individual file and bill will be submitted with closing report. Customer will pay each invoice as submitted. i ' Contract Contfnuatlon VaAe�_ of--4 Contract Services agreeme nt b. It is mutually agreed and understood that Cityiog W ch t Falls the term of hn connection GAB is the only claims administrator the All new notices of such claims terms with Auto Liability claims. GAB of of this agreement willbnvestigatiforwardved and ladjuo o purpose adjustment ser vices, and City of providing administrative, n new Wichita Falls shall not administer such new personclaims other f than GAB,or aexcgept ng notice to any claims administrator or cases where there is apparently no liability on the part of City and these isk cases will not be assigned to anyone except City attorney or nce forwarded to GAB more than Management Administrator. Any occurrence 30 days after date of loss shall be handled on a Time and Expense bass per GAB prevailing pricing schedule. either C. GAB shall at reasonable througes andh itsng normal accountants orness auditoors, have',the through its own right to inspect the books and records of City of Wichita Falls for the tole purpose of verifying total number of claims. 5. The contract covers the initial period of twelv e 12) months stated herein. I'Any continuation or renewal shall be the subject of of WichitarFallhall negotiation exercise h,e of parties. If the contract is not renewed, City the following options: a. City of Wichita Falls may require GAB to concludethe handling of all ppen claims occurring during the contract period. City of Wichita Falls may require GAB to return all open files ate the b. expiration of the contract. ade 6, At the conc lusion of the terms of this contract, an accounting shall rrbe of the subject to paragraph 3a of the amount due either party under the contract but in no event shall the payment of the amount due either party be st 31, 1984. deferred beyond Augu 7, Indemnity Agreement - City of Wichita Falls agrees that it will defend and indemnify GAB against all claims, demands, proceedings, actions, damages, costs, and expenses to which GAB may be subjected as a consequence of fulfilling its obligations under this agreement, if not caused edy the willful by the willful misco nduct or uct or negligence of GAB employees, whether o not ca negligent acts of City of Wichita Falls or its employees. Ci 8, Indemnity Agreement - GAB agrees that twill ldfend an nsd ind gni costsyaof Wichita Falls against all claims, demands, proceedings, nd expenses, to which City of Wichita Falls may be subjected solely as a consequence of the willful misconduct or negligent acts or omissions of GAB, its employees or servants in connection with fulfilling its obligations under this ageement. ' Contract Continuation Page 4 or 4 GAB Contract Services 9. During the period of this agreement, and for a period of one (1) year thereafter GAB agrees not to solicit for employment, or employ, any City of Wichita Falls employee contact during the performance of this agreement; and City of Wichita Falls agrees not to solicit for employment or employ during the period of this agreement and for a period of one (1) year thereafter any employee of GAB contacted by City of Wichita Falls during the performance of this agreement. 10. It is agreed that this contract shall be interpreted and construed in accordance with the laws of the State of Texas. 11. The provisions set out herein constitute the whole and entire agreement between the parties hereto and may be altered only by mutual agreement, reduced to writing and executed by authorized officers of both parties. I GAB BUSINESS SERVICES, INC.�� BY: 4 Paul K. Dougherty Senior Vice President Aitnesso Date CITY OF WICHITA FALLS, TEX6S I' BY: Witness Date i i LEASE AGREEMENT THE STATE OF TEXAS X COUNTY OF CLAY X This agreement made and entered into this the day of August, 1982, by and between the Texas Parks and Wildlife Depart- ment ("Lessee") and the City of Wichita Falls, Texas, ("Lessor") , each acting herein by and through its duly authorized officers. WITNESSETH: WHEREAS, Lessor owns a tract of land hereinafter described on which Lessee desires to construct, maintain and operate a boat launching facility; and, WHEREAS, Lessor desires to grant a leasehold property interest for the aforesaid purposes and perform certain maintenance and operational duties.. NOW, THEREFORE, in consideration of the premises and the agree- ments herein contained, Lessor hereby leases, demises, and lets unto Lessee for the purpose of constructing, maintaining and operating a boat launching ramp and associated support facilities all that certain tract of land situated in Clay County, Texas, being more particularly described on Exhibit A, which is attached hereto, containing 2 .63 acres, more or less. This lease is made subject, however, to the following terms and conditions; 1. The term of this lease shall be from the day and year above written for a period of twenty-five years, unless and until terminated as provided herein. 2 . It is understood and agreed the Lessee may at its option at any time during this lease term cease the operation of said boat ramp facilities by serving written notice on the Lessor in which event and thereupon this lease shall automatically terminate and and the leasehold interest shall revert automatically to the Lessor without suit or reentry and without any further obligation to the Lessee. 3. It is understood and agreed that the Lessee shall construct or cause to be constructed on the leased premises a boat launching ramp and appurtenances. Title to all such improvements shall be in the Lessor. 4 . It is understood and agreed the Lessor shall keep the said facility at all times during the lease term in a clean, neat and sanitary condition. In this connection, the Lessor agrees to keep the leased premises free of litter and the grass mowed. Further, the Lessor covenants to keep the facility under surveillance sufficiently to preclude it from becoming a nuisance or hazard to the public or adjacent property owners. 5. It is agreed and understood the operation of the said facility shall be exclusively under the control of and governed by the Lessee. 6. Lessee will be responsible for any annual maintenance costs for the duration of the lease, provided that Texas Parks and Wildlife Department approval is secured prior to expenditure. IN WITNESS WHEREOF, this agreement is executed and effective as of the day and year first above written. CITY OF WICHITA FALLS By: Stuart A. Bach, City Manager TEXAS PARKS AND WILDLIFE DEPARTMENT By: Charles D. Travis, Executive Director STATE OF TEXAS COUNTY OF WICHITA BEFORE ME, the undersigned authority, on this day personally appeared Stuart A. Bach, City Manager, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed. GIVEN under my hand and seal of office this the day of 1982 . Notary Public in and for Wichita County, Texas